NLC India Ltd. के निदेशक की रिपोर्ट

Mar 31, 2025

Major Highlights:

The Financial Year 2024-25 has been a period of noteworthy accomplishments for your Company, marked by consistent and
all-round performance. The key highlights of achievements during the year are as follows:

Production Highlights:

•    All time Highest ever for any year recorded in
FY 2024-25:

-    Lignite & Coal Production of 41.26 Million Tonnes
(MT) from NLCIL Mines.

-    Coal Production of 17.20 MT from Talabira II &
III OCP.

-    Coal Dispatch of 16.70 MT from Talabira II & III
OCP.

•    By Commissioning One Unit of660 MW of Ghatampur
Thermal Power Plant, joined in the elite club of Super
Critical Technology Thermal Operations.

•    Achieved Gross Power Generation of 27.87 BU
including 2.10 BU of Green Power with 2.80% growth
over previous year.

•    For the first time in the history of Barsingsar Lignite
Mine, the annual targeted capacity of 2.1 MT has been
achieved in two consecutive years (FY 2023-24 and
FY 2024-25).

•    TPS-I Expansion ranked first in cumulative PLF
among lignite fired thermal power stations for
FY 2024-25.

•    First time, since inception, Barsingsar Thermal
Power Station (BTPS) achieved a record 81.90% PAF,
surpassing CERC norms of 75 %.

Financial Highlights:

•    All time Highest ever for any year recorded in
FY 2024-25:

-    EBITDA of ?6,512.96 Crore

-    Profit Before Tax (PBT) of ?3,696.93 Crore as against
?2,881.64 Crore in the corresponding period of
previous year, registering a growth of 28.29%

-    Profit After Tax (PAT) of ?2,713.61 Crore as against
?1,867.57 Crore in the corresponding period of the
previous year, registering a growth of 45.30%.

-    Capex achievement of ?7,736.10 Crore

•    Revenue from operations of ?15,282.96 Crore as against

13,001.33 Crore in the corresponding period of the
previous year, registering a growth of 17.55%.

•    Total Income of ?16,889.45 Crore as against ?13,948.47
Crore in the corresponding period of the previous year,
registering a growth of 21.08%.

•    Market Capitalisation has touched its all-time high of
more than ?43,000 Crore.

•    Ministry of Finance has granted Capital Gains Tax
exemption under Section 47 (viiaf) of the Income Tax
Act for the transfer of renewable energy assets from your
Company to its Wholly Owned Subsidiary, NLC India
Renewables Limited (NIRL).

•    Achieved 109.03% collection efficiency, collecting
?9,405 Crore against ?8,626 Crore billed.

•    Reduced power dues by 42.12% from ?4,632 Crore to
?2,681 Crore.

The Board of Directors is pleased to present the
69^th Directors’ Report on the performance, business and
operations of your Company for the financial year ended on
31^st March, 2025, together with the Audited Financial
Statements and the reports of the Statutory Auditors and
Comments of the Comptroller and Auditor General (C&AG)
of India.

This report reflects not only the audited financial statements
and statutory reports, but also the collective journey of your

Company during the year — a journey of resilience, growth
and continued commitment to creating long-term value for
all stakeholders.

Your Company continues to move forward with resilience
and determination, embracing new opportunities while
upholding its core values of integrity and sustainability.
Together, we remain committed to delivering growth that
benefits all stakeholders.

Operational Performance

Mining - Lignite

Your Company presently operates three opencast Lignite
Mines at Neyveli, Tamil Nadu and one opencast Lignite Mine
at Barsingsar, Rajasthan, with a combined mining capacity of
30.10 Million Tonnes Per Annum (MTPA).

During FY 2024-25, the total overburden (OB) removal
from the Lignite Mines stood at 1,486.35 Lakh Cubic Meter
(LCM) as compared to 1,380.63 LCM in FY 2023-24. Lignite
production during the year under review was 240.60 Lakh
Tonnes (LT), as against 236.80 LT in the previous year,
reflecting a growth of 1.60%.

Raw Lignite Sales (RLS) to TAQA (IPP) and direct sales in
the open market during the FY 2024-25 were 17.02 LT and
6.37 LT, respectively, compared to 15.74 LT and 6.86 LT.

Mining - Coal

Your Company also operates Talabira II & III OCP Open Cast
Mine, in Odisha, with a mining capacity of 20.00 Million
Tonnes Per Annum (MTPA).

During FY 2024-25, the total overburden (OB) removal from
the Coal Mine stood at 203.44 LCM as compared to 131.80

LCM in FY 2023-24. Coal production during the year was
172.02 LT, compared to 126.41 LT in the previous year,
reflecting a growth of 36.08%.

In view of the high demand for coal, particularly for power
generation, your Company undertook measures to achieve
a production of 172.02 LT against a target of 160.00 LT,
thereby exceeding the target by 7.51%. Efforts are being made
to further augment coal production from Talabira II & III
OCP in the current year, which will enhance fuel security for
end-use plants and ensure greater coal availability in the
market. The coal produced is supplied to one of the End
Use Plant viz., NTPL’s Thermal Power Plant (1,000 MW) at
Tuticorin, Tamil Nadu.

The Ministry of Coal (MoC), Government of India, vide
its order dated 19^th February, 2021, permitted the sale of
surplus coal from Talabira II & III OCP after meeting the
requirements of the end-use plant. Further, on 2^nd November,
2021, MoC approved the sale of up to 75% of coal production
till 31^st March, 2026, subject to certain conditions.

Coal dispatch from the Talabira II & III OCP during
FY 2024-25 stood at 167.05 LT as compared to 117.62 LT in
the previous year, marking a growth of 42.03%.

With this, the total combined mining capacity of lignite and
coal for your Company stands at 50.10 MTPA.

Power

As on 31^st March, 2025, the total installed power generation
capacity of your Company, including renewable sources,
stood at 5,071.06 MW. The total capacity of the NLCIL
Group, including subsidiary companies, NTPL and NUPPL
was 6,731.06 MW.

During FY 2024-25, the total Power Generation (Gross)
was 21,420.40 Million Units (MU), compared to 21,643.85
MU in FY 2023-24. Power Export during the year stood
18,643.43 MU, as against 18,890.09 MU in the previous year.
Out of the total Power Generation, Renewable Energy sources
contributed 2,094.33 MU, compared to 2,100.09 MU in the
previous year.

Power Surrender during the FY 2024-25 was 928.48 MU, as
against 608.09 MU in the previous year.

The total power generation of the NLCIL group including the
material Subsidiary Companies (viz., NTPL & NUPPL) was
27,865.58 MU in FY 2024-25 compared to 27,106.21 MU in
the previous year.

Productivity

The output per man-shift achieved during the year 2024-25
are given below:

Product	Unit	2024-25
Lignite	Tonne	17.60
Power	KwHr	36,929

Financial Performance

During FY 2024-25, your Company, on a Standalone basis, recorded revenue from operations of H 10,285.78 Crore, as against
H 10,520.25 Crore in FY 2023-24. Profit Before Tax (PBT) and Profit After Tax (PAT) for the year stood at H 2,857.83 Crore
and H 1,899.99 Crore respectively, compared to H 2,787.89 Crore and H 1,846.58 Crore in the previous year.

On a consolidated basis, the revenue from operations for FY 2024-25 was H 15,282.96 Crore as against H 13,001.33 Crore in
FY 2023-24. Consolidated PBT and PAT for the year were H 3,696.93 Crore and H 2,713.61 Crore respectively, compared to
H 2,881.64 Crore and H 1,867.57 Crore in the previous year.

The details of profit earned during financial year 2024-25 and its appropriation are as follows:

Particulars	Standalone		Consolidated
	2024-25	2023-24	2024-25	2023-24
Revenue from operations	10,285.78	10,520.25	15,282.96	13,001.33
Profit Before Tax	2,857.83	2,787.89	3,696.93	2,881.64
Tax Provision	957.84	941.31	983.56	1,014.32
Prolit/(Loss) for the Period (PAT)	1,899.99	1,846.58	2,713.61	1,867.57
Appropriation	Â	Â	Â	Â
Transfer (to)/ from Interest Differential Fund Reserve	(0.94)	(1.98)	(0.94)	(1.98)
Transfer (to)/ from PRMA Reserve Fund	-	3.58	-	3.58
Transfer to Contingency Reserve	(10.00)	(10.00)	(10.00)	(10.00)
Dividend (Interim / Final)	(416.00)	(485.33)	(416.00)	(485.33)

GSECL - Solar park, Gujarat (600 MW)

Gujarat Urja Vikas Nigam Limited (GUVNL) had invited
bids for the installation of 800 MW Solar Power Project with
Greenshoe option at Gujarat State Electricity Corporation
Limited (GSECL) Solar Park, Khavda, Gujarat. Pursuant to
the bidding process, your Company was awarded 300 MW.
Subsequently, the Company exercised the Greenshoe option

 

Shareholding of Government of India (GoI)

The shareholding of the President of India as on 31^st March,
2025 in the Company is 72.20%.

Dividend

For the FY 2024-25, the Board of Directors of your Company
declared and paid an Interim Dividend of 15% of the paid-up
share capital (H 1.50/- per equity share). Further, your Board
has recommended a final dividend of 15% of paid-up share
capital (H 1.50/- per equity share), subject to the approval of
the shareholders at the ensuing Annual General Meeting.
Accordingly, the total dividend for the FY 2024-25, including
the interim dividend already paid, amounts to 30% of the
paid-up share capital, aggregating to H 416.00 Crore.

Transfer to Reserve

There is no amount proposed to be transferred to any
specific reserves.

Projects Under Implementation:

The details of projects currently under implementation are
as under:

150 MW Hybrid (Solar & Wind) RE Power
Project (SECI)

Your Company participated in the Wind & Solar Hybrid
Request for Selection (RfS) floated by Solar Energy
Corporation of India (SECI) and emerged as the successful
bidder for a capacity of 150 MW (comprising 50 MW Wind
and 100 MW Solar) at a quoted tariff of H 2.34 per Unit. The
Letter of Award (LOA) has been received from SECI, and the
Power Purchase Agreement (PPA) has been signed.

50 MW Wind Power Project:

The LoA for the 50 MW Wind Power Project was issued and
the Land Lease Agreement has been executed. The Central
Transmission Utility of India Limited (CTUIL) has granted
in-principle connectivity, with the scheduled commencement
date being 31^st July, 2026. Out of the total 25 Wind Turbine
Generators (WTGs), erection of 6 WTGs has been completed,
foundations for 8 WTGs have been completed and the
remaining works are in progress.

100 MW Solar Power Project:

The LoA for the 100 MW Solar Power Project was issued
and CTUIL has granted in-principle connectivity, with
the scheduled commencement date being 31^st July, 2026.
Land identification activities have been completed for
approximately 459 acres, out of which 92.65 acres have been
secured through execution of the Land Lease Agreement.
Further implementation activities are in progress.

510 MW solar power project under CPSU Scheme

Your Company emerged as the successful bidder under the
CPSU Scheme tender issued by the Indian Renewable Energy
Development Agency (IREDA) for setting up of 510 MW
Solar Power Project. The project is being implemented in
three phases: 300 MW in Rajasthan, 200 MW in Gujarat and
10 MW in Neyveli under the Smart City initiative.

300 MW Solar Power Project - Barsingsar, Rajasthan

The Letter of Award (LoA) was issued for execution of
the 300 MW Solar Power Project at Barsingsar. Power
Usage Agreement was signed with Rajasthan Urja Vikas
Nigam Limited (RUVNL). Supply of materials has been
completed and erection works are in progress. Bay extension
and associated transmission line works are also underway.
Successfully commissioned first phase of 52.83 MW capacity
on 20^th August, 2025.

200 MW Solar Power Project - Gujarat

The LoA for the 200 MW Solar Power Project was issued
and Power Usage Agreement was signed with the Telangana
State DISCOMs. Connectivity has been granted at the Bhuj
Substation, with a bay allotted. A Consultancy Agreement
has been entered into between your Company and Power Grid
Corporation of India Limited (PGCIL) for the extension of
one 220 kV bay at the Bhuj-I Substation. Execution of the
Land Lease Agreement is in progress.

10 MW Ground-Mounted Solar Power
Project - Neyveli

The 10 MW Ground-Mounted Solar Power Project at Neyveli,
implemented under the Smart City initiative, was successfully
commissioned on 30^th October, 2023. The project generated
14.28 MU Gross Power during FY 2024-25.

for an additional 300 MW capacity, for which the Letter of
Award (LoA) was received from GUVNL.

Purchase orders for procurement of modules, inverters,
HT cables, IDT and HT panels have already been placed.
Procurement activities, along with site-related works, are
presently in progress.

50 MW Solar at Mined out Area

Your Company has issued Letter of Award (LoA) for
installation of 50 MW Solar power projects in Reclaimed area
of Mine-II, Neyveli for BoS works. LOA for PV Modules are
issued and all are received at site.

Piling work, MMS structure erection Inverter Foundation,
IDT Foundation, MCR building works are under progress.

810 MW Solar in Rajasthan Area

Your Company was awarded 810 MW of Grid Connected
Solar Power Project under competitive bidding in the
tender floated by Rajasthan Rajya Vidyut Utpadan Nigam
Limited (RRVUNL) for development at Pugal Solar Park,
Bikaner, Rajasthan. Letter of Intent (LOI) was received from
RRVUNL. Owner’s Engineering Consultant was appointed
and BoS Tender has been floated.

The PPA between NLC India Renewables Limited (NIRL), (a
Wholly Owned Subsidiary Company of NLCIL) & RRVUNL
was signed. This project will be implemented by the NIRL.
Land details have been shared by RRVUNL and formal
allotment is pending.

Roof Top and Floating Solar Projects:

Your Company issued the Work Order for the design,
supply, installation and commissioning of rooftop solar
systems aggregating 4 MW capacity and floating solar
systems aggregating 1 MW capacity, along with five years of
Operation and Maintenance (O&M) services. These projects
are being implemented at the locations of NLC India Limited,
NLC Tamil Nadu Power Limited (NTPL) and Neyveli Uttar
Pradesh Power Limited (NUPPL).

Electric Vehicle (EV) Charging Stations:

Your Company issued the Letter of Award (LoA) for the
supply, installation and commissioning of Electric Vehicle
Charging Stations (EVCS) at Neyveli, NTPL and NUPPL,
inclusive of complete civil and electrical turnkey works.

The combined scope of work covers the establishment of five
EV charging stations across the above locations, equipped
with 120 kW (DC) fast chargers and 10 kW (AC) slow
chargers. The facilities will feature full remote monitoring
capabilities and smart payment integration.

NLC Talabira Thermal Power Project - Phase-I & II
(4 x 800 MW)

NLC Talabira Thermal Power Project (NTTPP) - Phase I
(3 x 800 MW) is a coal based thermal power project with an
aggregate capacity 2400 MW, comprising three units of 800
MW capacity each. The project is proposed to be set up at
Jharsuguda & Sambalpur Districts in the State of Odisha and
will be linked to the allocated captive coal mine, Talabira II &
III OCP The total estimated project cost is H 27,212.96 Crore.

The proposed plant will deploy state of the art Ultra
Super-critical technology in compliance with the latest
emission norms. All statutory approvals required for setting
up the project including the Environmental Clearance have
been obtained. Power Purchase Agreement for the entire
2400 MW have been signed with Tamil Nadu Generation
and Distribution Corporation Limited (TANGEDCO) for
1500 MW, Puducherry Electricity Department (PED) for
100 MW, Kerala State Electricity Board Limited (KSEB) for
400 MW and GRIDCO Odisha for 400 MW.

The Engineering, Procurement and Construction (EPC)
contract was awarded to M/s. Bharat Heavy Electricals Ltd.
(BHEL) on 12^th January, 2024. Notice to Proceed (NTP)
issued on 27^th November, 2024. The first Unit of the project
is scheduled to be commissioned within 52 months from the
date of issue of NTP, with the subsequent units to follow at
intervals of six months each. The land acquisition for the
project is in progress. The EPC contractor has completed
Geo technical and Topographical works for the land handed
over. Demolition works of existing structures in plant area
are under progress.

NLC Talabira Thermal Power Project (NTTPP) Phase II (1
x 800 MW) is an extension of Phase I, comprising one unit
of 800 MW capacity. Power Purchase Agreement for 400
MW has been entered with GRIDCO, Odisha. MoEF & CC
has granted Terms of Reference (ToR) on 3^rd July, 2025 for
EIA Studies.

Thermal Power Station II 2^nd Expansion

The Thermal Power Station II 2^nd Expansion (TPS-II SE)
is a lignite based Thermal Power Plant with a capacity of
1,320 MW (two units of 660 MW each), proposed to be set
up at Mudanai Village (Near Neyveli), Cuddalore District,
Tamil Nadu and linked to Neyveli Lignite Mines. Land for
the project is already in possession of your Company.

The earlier EPC tender for the 660 MW supercritical
lignite-fired unit configuration did not attract any bidders,
primarily due to challenges in securing technology
association. Following directions from the Ministry of Power,
the project configuration has been revised to 2 x 500 MW
subcritical units. The Feasibility Report (FR) for the revised
configuration was approved by with a base project cost of
H 10,575.52 Crore. The subcritical technology exemption from
MoP was received on 4^th November, 2024.

Activities including the revision of project cost estimates
in line with MoEF&CC guidelines dated 11^th July, 2025,
floating of the EPC tender and obtaining the amendment to
the Environmental Clearance (EC) are under progress. The
Ministry of Power has issued the revised power allocation
for 2x500 MW configuration. Pursuant to MoP’s revised

guidelines for allocation of power from Central Generating
Stations dated 31^st July, 2024, power from TPS-II Second
Expansion (2X500 MW) has been allocated as follows:
830.44 MW to Tamil Nadu, 19.56 MW to Puducherry and
150 MW is unallocated.

Lignite to Methanol

As part of its strategic diversification, your Company is
progressing with the Lignite to Methanol (LTM) Project,
designed for a capacity of 1,200 Tonnes Per Day (TPD).
Global tenders were floated for major project packages, and
while the tender for the Gasification Block was cancelled
owing to higher-than-expected quotations, evaluation of bids
for the Methanol Synthesis Block is currently in progress. In
line with the guidance of NITI Aayog, the Detailed Project
Report (DPR) has been revisited, and the revised report
is under review. Although the updated DPR reflects cost
escalations and prevailing market challenges, your Company
continues to engage with stakeholders and explore feasible
options for future development, reaffirming its commitment
to innovation in lignite-based clean fuel technologies.

Mine-III (11.5 MTPA)

The Mine-III Project, with an approved capacity of 11.50
MTPA and encompassing a project area of 3893Ha, is
proposed to be commissioned to meet the fuel requirements of
TPS II 2^nd Expansion. The estimated cost is H 3,755.71 Crore.
The identified block contains mineable reserve of 415 MT.

The process of obtaining all statutory and regulatory
approvals for the commencement of mining operations is
currently in progress. The MoC has accorded final approval
for the Mining Plan and Mine Closure Plan on 28^th August,
2024. Administrative approval from the Government of Tamil
Nadu for Land Acquisition is in process.

The project is targeted to commence operations by 2030,
subject to timely completion of all requisite clearances, land
acquisition and other pre-operational activities.

Commercial Mining

North Dhadu (Western Part) Coal mine (3.0 MTPA)

Your Company successfully secured the bid for the North
Dhadu (Western Part) Coal Mine, located in Latehar District
of Jharkhand, through the Commercial Coal Block Auction.
The mine forms part of the North Karanpura Coalfield and has
a geological reserve of 396.486 MT of coal with an average
grade of G12. The coal block has a Peak Rated Capacity
(PRC) of 4.5 MTPA, and the Mining Plan is presently under
consideration of the Ministry of Coal (MoC) for approval.

During the year, key statutory and regulatory milestones
were achieved. Notifications under relevant provisions of
the CBA (A&D) Act, 1957 have been issued by MoC, and
the Company has obtained a No Objection Certificate from
the Coal Controller’s Organization. Application for the
notification under Section 11(1) of the CBA (A&D) Act, 1957
is under process.

To facilitate project execution, a re-tender for selection of the
Mine Developer and Operator (MDO) was floated, with bid
submission scheduled in FY 2025-26.

On the development front, the Board of Directors approved
the Detailed Project Report (DPR) of the mine along with the
investment proposal involving a CAPEX of ?1,354.20 Crore.
The Engineering Scale Plan for the proposed railway siding,
taking off from Kusmahi station, has been approved by the
East Central Railway, and preparation of the Detailed Project
Report for the railway siding is in progress.

Manufactured Sand (M-Sand) from Overburden

Recognizing the potential of Manufactured Sand (M-Sand)
as a sustainable alternative to river sand and its increasing
demand in the construction sector, your Company has
undertaken initiatives to convert overburden (OB) from its
mines into high-quality M-Sand. A 0.42 MTPA capacity
M-Sand Plant was commissioned at Mine-IA, with trial
runs commencing in April 2024. The Government of Tamil
Nadu accorded approval for product quality in July 2024,
followed by permission in June 2025 to produce M-Sand
from overburden for a period of ten years. Subsequently,
your Company signed an MoU with Tamil Nadu Minerals
Limited (TAMIN) to act as service provider for identifying
and finalizing buyers for the M-Sand produced.

Further, an order was placed for setting up a 1 MTPA
capacity M-Sand Plant at Mine-I in June 2024. The Consent
to Establish (CTE) was granted by the Tamil Nadu Pollution
Control Board (TNPCB) in January 2025, and commercial
operations from this plant are expected to commence by
October 2025.

These initiatives reflect your Company’s commitment to
resource efficiency, environmental stewardship and value
creation from mining by-products, while contributing to
sustainable infrastructure development in the region.

 

Machhakata (Revised) Coal Mine (30.0 MTPA)

Your Company emerged as the successful bidder for the
Machhakata (Revised) Coal Mine, located in Angul District
of Odisha, through the Commercial Coal Block Auction
in July 2024. The mine, which forms part of the Talcher
Coalfield, has a substantial geological reserve of 1,525.23 MT
of coal with an average grade of G11 and normative Capacity
of 30.0 MTPA. During the year, Geological Report prepared
in-house was approved by the Ministry of Coal, while the
Mining Plan and Mine Closure Plan have been submitted and
are under consideration for approval. The Board of Directors
accorded in-principle approval for development and operation
of the mine through the Mine Developer and Operator (MDO)
mode. For infrastructure development, RITES has been
engaged as the Project Management Consultant (PMC) for
construction of a combined railway siding for the Machhakata
(Revised) and New Patrapara (South) Coal Mines.

New Patrapara (South) Coal Mine (12.0 MTPA)

Your Company emerged as the successful bidder for the
New Patrapara (South) Coal Mine, located in Angul District
of Odisha, through the Commercial Coal Block Auction
concluded in December 2024. The mine has a tentative
capacity of 12.0 MTPA. The Coal Mine Development and
Production Agreement (CMDPA) was signed with the Ministry
of Coal in December 2024, and the Vesting Order was issued
in February 2025. The Geological Report prepared in-house
was recommended by the MoC Committee for in-principle
approval in July 2025, and preparation of the Mining Plan
is currently in progress. The mine is targeted to commence
operations by November 2029, subject to completion of
statutory clearances and development activities.

Fly Ash Utilization

Your Company has consistently ensured 100% utilization
of fly ash generated from all its Thermal Power Plants, in
line with the directives of the Ministry of Environment,
Forest and Climate Change (MoEF&CC) and the Ministry of
Power (MoP). The Company’s fly ash management program
is anchored on a three-pronged framework: transparent
e-auction processes, rigorous field validation of user agencies
and stringent compliance with all statutory guidelines.

Fly ash generated from the Company’s Thermal Power Plants
is supplied to eligible parties engaged in the manufacturing
of cement, bricks and blocks through transparent e-auction
platforms, as per approved internal procedures. Periodic
reports and bulletins on fly ash generation and utilization are
published on the Company’s website, ensuring transparency,
building stakeholder confidence and accelerating market
offtake. This approach integrates policy compliance with
operational discipline, thereby maximizing beneficial reuse,
reducing environmental footprint and supporting regional
infrastructure and manufacturing ecosystems.

In a significant development, your Company signed a
landmark Memorandum of Understanding (MoU) with the
Bhabha Atomic Research Centre (BARC) on 06^th August,
2025 for a pioneering project to extract Rare Earth Elements
(REEs) from fly ash. Under this agreement, a pilot project
will be established at Neyveli with technical support from
BARC to demonstrate an innovative process for extracting
REEs — strategic materials vital for applications in healthcare,
clean energy, high-technology manufacturing, advanced
research and national security. This initiative represents a
transformative step in fly ash management, converting an
industrial by-product into a source of critical raw materials
of national importance.

Projects Under Formulation:

The details of projects currently under formulation are
as follows:

Green Energy

In alignment with the Government of India’s target of
developing 500 GW of Renewable Energy (RE) capacity by
2030, your Company is actively pursuing opportunities in the
Renewable Energy Sector as a key pillar of its future growth
strategy. Business plans have been formulated to leverage
these opportunities effectively, while ensuring that the existing
thermal power fleet continues to operate with high efficiency,
cost-effectiveness and reliability, thereby contributing to
meeting the country’s growing energy demand.

Business Development and Strategic Initiatives

During the year, your Company made significant progress
in enhancing both its renewable and conventional energy
portfolios through, driven by new project awards, execution
of Joint Venture Agreements and Formation of Strategic
Partnerships, as detailed below:

1. Letters of Award (LoA):

•    Received LoA from SJVN Limited for setting up a
200 MW Wind Power Project on 28^th February, 2025.

•    Received LoA from Tamil Nadu Green Energy
Corporation Limited (TNGECL) for establishing a
Battery Energy Storage System (BESS) with a capacity
of 250 MW/500 MWh on 20^th June, 2025.

•    Received LoA from NTPC Limited for the development
of a 450 MW Hybrid Power Project on 27^th June, 2025.

2.    Joint Ventures (JV):

With Rajasthan Rajya Vidyut Utpadan Nigam Ltd.

(RVUNL):

•    JV Agreement signed on 23^rd October, 2024;

•    JV Company incorporated with the name “NLC
Rajasthan Power Limited” (NRPL) on 02^nd June, 2025
for setting up a 3x125 MW Lignite-Based Thermal
Power Station with linked Mines from Bithnok
and Gurha.

Through NLC India Renewables Limited (NIRL):

•    JV Agreement signed on 23^rd October, 2024 with
Rajasthan Rajya Vidyut Utpadan Nigam Ltd.
(RVUNL);

•    JV Company incorporated with the name
“NIRL Rajasthan Renewables Limited” (NRRL) on
02^nd June, 2025 for development of 2,000 MW Green
Energy Projects.

•    JV Agreement signed on 10^th January, 2025 with Assam
Power Distribution Company Limited (APDCL);

•    JV Company incorporated with the name
“NIRL Assam Renewables Limited” (NARL) on
07^th May, 2025 for development of 1,000 MW
Renewable Energy Power Projects.

•    150 MW of land allotted by APDCL for a Solar Power
Plant - preliminary works commenced.

•    500 MW Solar Park allotted at Lahorijan - Agreement
signed on 27^th June, 2025.

•    JV Agreement signed on 29^th May, 2025 with
Mahatma Phule Renewable Energy and Infrastructure
Technology Ltd. (MAHAPREIT) for establishing and
undertaking O&M of Green Energy Projects.

3. Memoranda of Understanding (MoU):

Your Company entered into several strategic Memoranda
of Understanding (MoUs) and agreements in the
mining domain with leading public sector undertakings
and private sector partners. Collectively, these MoUs
reinforce your Company’s commitment to sustainable
resource development, technology adoption, and
strategic partnerships for long-term growth.

 

•    MoU signed on 06^th May, 2025 with IREL (India)
Limited for collaboration in the exploration and
development of critical minerals, including Rare Earth
Element (REE) assets in India and abroad.

•    MoU signed on 06^th August, 2025 with Bhabha Atomic
Research Centre (BARC) for a pioneering project to
extract Rare Earth Elements (REEs) from fly ash.

•    Damodar Valley Corporation (DVC) - MoU signed in
June 2024 for supply of coal for the period of two years.

•    NTPC - Agreement signed in December 2024
extending the existing MoU for supply of coal from
Talabira II & III OCP to NTPC power plants for a
further period of five years (till December 2029).

•    ONGC - Confidentiality Agreement signed in
December 2024 for sharing of exploration data.

•    Tamil Nadu Minerals Limited (TAMIN) - MoU signed
in July 2025 for selling of M-Sand.

•    Reliance Industries Limited (RIL) - MoU signed in
July 2025 for collaboration on Underground Coal
Gasification in NLCIL’s lignite blocks.

These initiatives are aimed at consolidating the Company’s
market position, diversifying its energy mix, and ensuring
long-term sustainable growth.

 

Corporate Plan 2030

Mining Projects

Your Company is presently operating three opencast lignite
Mines at Neyveli in the State of Tamil Nadu and one opencast
lignite Mine at Barsingsar in the State of Rajasthan, with a
combined lignite mining capacity of 30.10 MTPA.

In the lignite mining segment, your Company proposes
to commission:

•    Mine-III (11.5 MTPA) at Neyveli, Tamil Nadu, linked to the
TPS-II Second Expansion, and

•    Bithnok Lignite Mine (2.25 MTPA) in Bikaner
District, Rajasthan.

Upon commissioning, the aggregate lignite mining capacity
is projected to reach 41.35 MTPA by FY 2029-30.

In the coal mining segment, your Company commenced
operations at the Talabira II & III Opencast Coal Mines in
Odisha on 26^th April, 2025, with a capacity of 20.0 MTPA.

Further, in the coal sector:

•    Pachwara South OCP in Jharkhand, with a capacity of
9.0 MTPA, is being developed through the Company’s
subsidiary, Neyveli Uttar Pradesh Power Limited (NUPPL),
as the fuel source for the Ghatampur Thermal Power Plant
(3 x 660 MW).

•    Your Company has secured the North Dhadu
(Western Part) Coal Mine in Latehar District, Jharkhand
(tentative capacity: 3.0 MTPA) and the Machhakata
(Revised) Coal Mine in Angul District, Odisha (30.0 MTPA)
through the commercial coal mining route.

•    Additionally, the New Patrapara (South) Coal Block in
Angul District, Odisha (12.0 MTPA) was secured under the
commercial coal mine e-auction process.

Recognising recent developments in the renewable energy
sector and the strategic importance of critical minerals for clean
energy transition, your Company is preparing to participate in
upcoming auctions, with a vision to achieve a critical mineral
mining capacity of 1.0 MTPA by FY 2029-30.

With the above lignite, coal and critical mineral projects, the
total mining capacity is projected to exceed 104.35 MTPA
by 2030, supported by enhanced operational efficiency.
Total CAPEX projected for the mining projects during
FY 2026-30 is estimated at H 14,199 Crore.

Diversification into Critical Minerals

As part of its diversification strategy, your Company
participated in the Tranche V auction of Critical and
Strategic Mineral Blocks conducted by the Ministry of
Mines, Government of India in May 2025, and was declared
as the preferred bidder for the Semhardih Phosphorite and
Limestone Block and the Raipura Phosphorite and Limestone
Block, both located in Chhattisgarh.

Under the guidance of the Ministry of Coal and the Ministry
of Mines, your Company is exploring possibilities for
acquiring overseas critical minerals assets.

These acquisitions mark your Company’s foray into the
critical minerals sector, in alignment with the national
objective of ensuring a secure and sustainable supply of
minerals essential for renewable energy, fertilizers, and other
strategic applications.

Power Generation Projects

Your Company is presently operating five lignite based
thermal power stations- Four at Neyveli, Tamil Nadu and
one at Barsingsar, Rajasthan, with an aggregate capacity
of 3,640 MW. In addition, through Joint Ventures, your
Company operates:

•    NLC Tamil Nadu Power Limited (NTPL) - a coal-based
thermal power plant of 1,000 MW (2 x 500 MW) capacity
at Tuticorin, Tamil Nadu; and

•    Ghatampur Thermal Power Project (GTPP) - Unit-I of
660 MW capacity (out of 3 x 660 MW) in Uttar Pradesh,
implemented through Neyveli Uttar Pradesh Power Limited
(NUPPL).

Upon implementation of the following coal and lignite-based
thermal projects, the total thermal generation capacity is
projected to reach 10,020 MW:

•    Ghatampur Thermal Power Project (NUPPL) -

1,320 MW (Units-2 and 3 of 3 x 660 MW), Uttar Pradesh;

•    NLC Talabira Thermal Power Project (Phase I) -

2,400 MW (3 x 800 MW), Odisha;

•    TPS-II Second Expansion - lignite-based, 1,000 MW
(2 x 500 MW), Neyveli, Tamil Nadu.

The projected capital expenditure (CAPEX) for thermal power
projects during FY 2026-30 is estimated at H 49,981 Crore.

In the renewable energy segment, your Company plans to
enhance its installed capacity from the current 1,431 MW to
10,110 MW by 2030, through the implementation of various
solar and wind power projects. Presently, 2,110 MW of
RE capacity is under implementation. Key recent
awards include:

•    450 MW Hybrid Renewable Energy Project from NTPC
Limited (NTPC);

•    200 MW Wind Power Project from SJVN Limited.

•    250 MW / 500 MWh (BESS) under the viability Gap
Funding (VGF) scheme from TNGECL.

The projected CAPEX for renewable energy projects during
FY 2026-30 is estimated at H 41,599 Crore.

 

Upon completion of the above projects, the total installed
power generation capacity of your Company is expected to
reach 20,130 MW by 2030.

Diversification Projects:

In line with its long-term growth strategy, your Company
has adopted a structured diversification approach and has
undertaken initiatives in the following emerging sectors:

•    Overburden (OB) to Manufactured Sand (M-Sand) conversion;

•    Sale of Overburden;

•    Lignite to Methanol production;

•    Critical Minerals;

•    Battery Energy Storage Systems (BESS);

•    Green Hydrogen production;

•    Electric Vehicle (EV) charging infrastructure;

•    Integrated Gasification Combined Cycle (IGCC)
technology projects.

Several of these projects, including IGCC, are being
implemented on a pilot scale under the Clean Energy category.

Further, your Company has entered into a Memorandum of
Understanding (MoU) with WAPCOS Limited to provide
collaborative technical services and advisory support for the
development of various pumped storage, reservoir/storage,
and run-of-river hydro power projects in India. Feasibility
studies for select projects under this collaboration are
presently in progress.

The projected capital expenditure (CAPEX) for
diversification projects during FY 2026-30 is estimated at
H 11,101 Crore.

Taking into account the planned investments in mining,
power generation and diversification projects, the total capital
expenditure of your Company is projected to exceed H 1.17
Lakh Crore by 2030.

 

Performance Highlights:

 

NLC Tamil Nadu Power Limited (NTPL), a subsidiary of your
Company, operates a 1,000 MW coal-based thermal power
plant at Tuticorin, Tamil Nadu.

The Company has registered a substantial improvement in
the performance.

 

Particulars	FY 2024-25	FY 2023-24
Gross Power Generation (MU) (Excl. Power Surrender)	5,236.45	5,462.36
Revenue from Operations (H Crore)	4,430.38	2,739.76
Profit Before Tax (H Crore)	1,086.43	201.16
Profit After Tax (H Crore)	1,060.69	129.16

 

Further, the Board of Directors of NTPL declared an Interim
Dividend of H 1/- per equity share (10%) for FY 2024-25, which
was paid on 6^th February, 2025. During the supplementary
Audit conducted by the C&AG for the Financial year 2024-25,
C&AG has issued NIL comments on its Financials.

 

r-i ii '*i A rn

, C i' £ . Neyveli Uttar Pradesh Power Limited
(NUPPL)

¦    A Joint Venture between NLCIL &

UPRVUNL Ghatampur Thermal Power
Project (GTPP) (1,980 MW) linked to
Pachwara South OCP (9.0 MTPA) in
Jharkhand

Neyveli Uttar Pradesh Power Limited (NUPPL), a subsidiary
of your Company, is implementing the 3 x 660 MW
Ghatampur Coal-Based Thermal Power Project (GTPP) at
Ghatampur Tehsil, Kanpur Nagar District, Uttar Pradesh, at
a sanctioned project cost of H 21,780.94 Crore (RCE-II). The
project is monitored by the Ministry of Coal (MoC) and, at
the apex level, by the Prime Minister’s Office (PMO), being
considered a signature project of national importance. The
Board of NUPPL is taking all necessary measures to expedite
its timely completion. During the supplementary audit
conducted by C&AG for the financial year 2024-25, C&AG
has pointed few reclassification and disclosure requirements
which are being dealt appropriately in its Annual Report.

NUPPL has executed the following Power Purchase
Agreements (PPAs):

•    With Uttar Pradesh Power Corporation Limited (UPPCL)
for 75% of the plant capacity.

•    With Assam Power Distribution Company Limited (APDCL)
for 492.72 MW (24.88%), in line with the revised power
allocation by the Ministry of Power (MoP), Government
of India.

•    With Government of Assam for the balance 25% capacity,
also pursuant to MoP’s revised allocation guidelines.

Coal Linkage & Fuel Supply:

The primary fuel requirement for GTPP is tied to the
Pachwara South OCP, which is at an advanced stage of
obtaining statutory clearances and approvals. Pending
operationalisation of PSCB, and based on NUPPL’s request,
the Central Electricity Authority (CEA) recommended Coal
India Limited (CIL) to supply 0.99 MTPA (0.33 MT per unit)
for commissioning activities, trial runs, and achievement
of COD. Further, the Standing Linkage Committee (Long¬
Term), in its meeting held on 07^th March, 2024, recommended
bridge linkage of 4.903 MTPA for FY 2024-25 from CIL.

Project Progress & Expenditure:

•    The project achieved a CAPEX of H 2,874.64 Crore during
FY 2024-25.

•    The cumulative capital expenditure incurred up to
31^st March, 2025 stood at H 19,655.96 Crore.

•    The Revised Cost Estimate-II (RCE-II) of H 21,780.94 Crore
has been duly approved by the Ministry of Coal.

Implementation Status:

•    Unit-1 successfully achieved Commercial Operation Date
(CoD) on 12^th December, 2024.

•    Unit-2 oil synchronisation was successfully completed on
20^th July, 2025, with all efforts underway to achieve its CoD,
along with Unit-3, in FY 2025-26.

•    Project progress has been impacted due to delays in the
Balance of Plant (BoP) package (GA3), disruptions caused
by the COVID-19 pandemic, including diversion of oxygen
cylinders for emergency medical use, disturbances in the
GA3 package supply chain, shortages in manpower, and
financial constraints of GA3 package contractor. Excess
payment made to GA-3 package contractor will be recovered
from the contractor post commissioning through contractual
and legal.

Pachwara South OCP (9.0 MTPA) in Jharkhand

The Pachwara South OCP located in the State of Jharkhand,
has been allotted to Neyveli Uttar Pradesh Power Limited
(NUPPL), a joint venture company of NLCIL, with a
normative capacity of 9.0 Million Tonnes Per Annum (MTPA).
The estimated capital cost of the project is H 2,242.90 Crore.

The Mining Plan and Mine Closure Plan have been duly
approved by the Ministry of Coal (MoC). The Public
Investment Promotion Board (PIB), in its meeting held on
04^th October, 2023, recommended the implementation of the
project at a capital cost of H 2,242.90 Crore. Subsequently, the
project received the approval of the Cabinet Committee on
Economic Affairs (CCEA) on 24^th April, 2024.

Environmental Clearance, Forest Clearance (Stage-I),
Consent to Establish and Forest Clearance (Stage-II) obtained
and obtaining Consent to Operate and Mine Opening
Permission is under progress. Further, land has been acquired
for coal evacuation route and construction of Railway Siding
at Kurwa, where construction works are currently in progress.
The cumulative capital expenditure incurred on the project up
to 31^st March, 2025 is H 568.83 Crore.

A

®Coal Lignite Urja Vikas Private
Limited (CLUVPL)

A Joint Venture Company between
NLCIL & CIL

Your Company entered into a Joint Venture Agreement with
Coal India Limited (CIL) for the purpose of developing and
implementing conventional as well as non-conventional
power projects, with an equity participation of 50:50.
Pursuant to this agreement, the Joint Venture Company,
Coal Lignite Urja Vikas Private Limited, was incorporated on
10^th November, 2020.

The Joint Venture Company has been entrusted with the
development of renewable energy projects and, in this regard,
has received a Project Management Consultancy (PMC)
order from South Eastern Coalfields Limited (SECL) on
12^th July, 2021 for establishing a 40 MW Solar Power Project at
Bishrampur and Bhatgaon, Chhattisgarh. The implementation
activities are currently in progress.

A

I:    MNH Shakti Limited

¦    A Joint Venture Company between

Mahanadi Coalfeilds Ltd, NLCIL
and HINDALCO

Mahanadi Coalfields Limited, your Company and Hindalco
jointly formed MNH Shakti Limited with an equity
participation in the ratio of 70:15:15 to implement 20.0 MTPA
Coal Mining Project in Talabira, in the State of Odisha. The
Talabira II & III Coal Blocks allocated for this purpose have
been cancelled pursuant to the judgement of Hon’ble Supreme
Court of India and the Coal Mines (Special Provisions)
Ordinance, 2014. Consequently, the winding up of the
Company has been proposed, and the necessary statutory and
legal formalities in this regard are currently under progress.

A

-jhiTiVi,

NLC India Renewables Limited
Wholly Owned Subsidiary Company

Your Company has incorporated NLC India Renewables
Limited (NIRL) as its wholly owned subsidiary on
14^th June, 2023, with the objective of consolidating and
managing its renewable energy assets. The incorporation of
NIRL is a strategic step under the Asset Monetization Plan
of your Company, aimed at unlocking value and directing
focused investments into the renewable energy sector.

As part of this initiative, your Company proposes to transfer
all of its renewable assets to NIRL post receipt of the requisite
approvals from the Government of India and other Statutory
Authorities, thereby enabling monetization of such assets in
line with policy directives.

Significant developments during the year are as under:

•    The Ministry of Finance, vide Gazette of India Notification
dated 27^th November, 2024, has granted Capital Gains Tax
exemption under Section 47 (viiaf) of the Income-tax Act,
1961, in respect of the transfer of renewable energy assets
by your Company to its wholly owned subsidiary, NIRL.
This exemption substantially facilitates the proposed asset
transfer without adverse tax implications.

•    The Cabinet Committee on Economic Affairs (CCEA)
approved an investment of H 7,000 Crore in NIRL. This
approval allowing it to invest in various projects either
directly or through joint ventures, beyond the limits
prescribed by Navratna guidelines of DPE. This investment
is also exempt from the H 1,000 Crore limit in a single entity
and the overall ceiling of 30% of net worth. Order in this
regard was issued on 29^th July, 2025.

Presently, NIRL is implementing the following renewable
energy projects across India:

•    600 MW Solar Power Project at GSECL Solar Park,
Khavda, Gujarat.

•    810 MW Solar Power Project at RVUN Solar Park,
Pugal, Rajasthan.

•    250 MW / 500 MWh Battery Energy Storage System (BESS)
Project in Tamil Nadu.

•    200 MW Wind Power Project awarded by SJVN Limited.

•    450 MW Wind-Solar Hybrid Project awarded by
NTPC Limited.

A

NLC India Green Energy Limited
Wholly Owned Subsidiary

w! 1-; iniiia

Your Company has incorporated NLC India Green Energy
Limited (NIGEL), as its wholly owned subsidiary on
13^th October, 2023 to carry out future Renewable Energy
Projects of your Company.

^ A

NLC Rajasthan Power Limited

W (^NRPL)

p p ^ A Joint Venture between NLCIL and
RVUNL in Rajasthan

NLC India Limited and Rajasthan Rajya Vidyut Utpadan
Nigam Limited (RVUNL) entered into a Memorandum of
Understanding (MoU) on 10^th March, 2024, followed by a
Joint Venture Agreement (JVA) signed on 23^rd October, 2024
for the formation of a Joint Venture Company.

Accordingly, the JV Company, NLC Rajasthan Power Limited
(NRPL), was incorporated on 2^nd June, 2025, with equity
participation in the ratio of 74:26 by NLCIL and RVUNL
respectively. This JV Company will develop a 3x125 MW
Lignite-based Thermal Power Station and to develop and
operate lignite mines primarily to meet the fuel requirements
of the proposed thermal power plant.

A

. NIRL ASSAM RENEWABLES
CvilV/ LIMITED (NARL)

A Joint Venture between NIRL and
APDCL in Assam

NLC India Limited (NLCIL) and Assam Power Distribution
Company Limited (APDCL) signed a MoU on 09^th August,
2022, was subsequently amended on 18^th August, 2023.

Pursuant to this, a Joint Venture Agreement (JVA) was
signed on 10^th January, 2025 between NIRL, a wholly
owned subsidiary of NLCIL and APDCL for the formation
of a Joint Venture Company. Accordingly, the JV Company,

NIRL Assam Renewables Limited (NARL), was incorporated
on 7^th May, 2025, with equity participation in the ratio of
51:49 by NIRL and APDCL respectively, for developing
1,000 MW Green Energy Projects across the State of Assam.

In line with this agreement, Solar Power Project sites have
been identified and proposed by NARL at Lahorijan and
Ranpangbong, located in the Karbi Anglong district of Assam.

A

NIRL RAJASTHAN RENEWABLES
'"^;SLIMITED (NRRL)

^ A Joint Venture between NIRL and
RVUNL in Rajasthan

NLC India Limited (NLCIL) and Rajasthan Rajya Vidyut
Utpadan Nigam Limited (RVUNL) signed a Memorandum
of Understanding (MoU) on 10^th March, 2024, followed
by a Joint Venture Agreement (JVA) executed on
23^rd October, 2024 between NLC India Renewables
Limited (NIRL) and RVUNL for the formation of a Joint
Venture Company.

Accordingly, the JV Company, NIRL Rajasthan Renewables
Limited (NRRL), was incorporated on 2^nd June, 2025,
with equity participation in the ratio of 74:26 by NIRL and
RVUNL, respectively.

The primary objective of the JV Company is to establish and
operate 2,000 MW Green Energy projects in the State of
Rajasthan to meet the Renewable Purchase Obligation (RPO)
of the State.

This JV marks a significant milestone in NLCIL’s renewable
energy portfolio diversification and is aligned with the
Government of India’s vision for accelerated energy transition.

TReDS Portal - MoU parameter

During the financial year 2024-25, your Company has
successfully completed ERP integration with one of the
TReDS (Trade Receivables Discounting System) platform’s
bill discounting service providers. Post integration,
significant volume of transactions was executed, comprising
80 transactions aggregating H 10.71 Crore processed through
the platform.

It is further noteworthy that your Company has already
registered with all four TReDS service providers notified
under the TReDS Portal. This proactive compliance measure,
in line with the Government of India’s directives and MoU
parameters, ensures enhanced operational flexibility, faster
realization of receivables, and improved liquidity support to
MSME vendors through timely discounting of invoices.

Loan, Guarantees and Investments

Details of loans and investments covered under the provisions
of Section 186 of the Companies Act, 2013 forms part of the
Financial Statements.

Deposits

The Company has not accepted any deposits from the public
during the year.

Bonds, Borrowing & Credit Rating

During the financial year 2024-25, your Company has not
issued any Bonds.

Commercial Paper

During the financial year 2024-25, due to better fund
management, sales bill discounting and increase in realisation
has improved the liquidity position of the Company and
hence, Company has not issued any commercial paper.

Credit Rating for Borrowings

During the year under review, your Company has retained
the highest creditworthiness ratings from accredited
agencies, with a “AAA” rating for Long-Term Borrowings
(including Bonds issuance) and an “A1+” rating for issuance
of Commercial Papers, reaffirming the Company’s strong
financial position, robust fundamentals, and high degree of
safety with respect to timely servicing of debt obligations.

The present Credit Ratings of the Company are as under:

Sl. No.	Rating Agency / Particulars	Rating Assigned
1	ICRA	Â
Â	Non-Convertible Debentures - Secured - H 2,000 Crore	[ICRA] AAA(Stable)
2	CRISIL	Â
Â	Working Capital Loan (State Bank of India) - H 5,000 Crore	CRISIL AAA/Stable
Â	Non-Convertible Debentures (Issued amount- H 2,175 Crore) -Unsecured - H 3,000 Crore	CRISIL AAA/Stable
Â	NNTPS Loan (SBI H 406.70 Crore and IOB H 1,078 Crore) - H 1,484.70 Crore	CRISIL AAA/Stable
3	CARE Ratings	Â
Â	NNTPS 1000 MW (Power Finance Corporation) - H 1,650 Crore	CARE AAA; Stable
Â	BG Facility (ICICI Bank) - H 772 Crore	CARE AAA; Stable, CARE A1+
Â	Commercial Paper - H 6,000 Crore	CARE A1+
4	India Rating (Fitch Group)	Â
Â	Solar 709 MW ( State Bank of India) - H 1,403 Crore	IND AAA/Stable
Â	Non-Convertible Debentures - Secured - H 2,000 Crore	IND AAA/Stable
Â	Non-Convertible Debentures - Unsecured - H 2,175 Crore	IND AAA/Stable
Â	Commercial Paper - H 6,000 Crore	IND A1+
Â	Sales Bill Discounting -H 2,000 Crore	IND A1+
5	Infomerics Ratings	Â
Â	Talabira Mine ( State Bank of India) - H 1,092.36 Crore	IVR AAA/Stable
Â	Solar 200MW PP (Bank of Baroda) - H 916 Crore	IVR AAA/Stable
6	Acuite Ratings & Research	Â
Â	Solar 300 MW (IndusInd Bank) - H 1,000 Crore	ACUITE AAA/Stable

 

COMMERCIAL

Power Dues Realisation:

•    During the year under review, your Company had received
an amount of H 9,405 Crore out of the total billed value of
H 8,626 Crore for the FY 2024-25 working out to a collection
efficiency rate of 109.03%.

•    The outstanding power dues including for the month
of March 2025 invoices as on 31^st March, 2025 was
H 2,681 Crore as against H 4,632 Crore for the corresponding
period of the year ended 31^st March, 2024. The dues beyond
the 45 days limit as on 31^st March, 2025 was H 1,597 Crore
as against H 3,174 Crore for the corresponding period of the
previous year ended 31^st March, 2024.

•    Scheduling of power is being done in compliance with the
MOP directives on LC - Payment priority mechanism.

Power Trading in Power Exchange

During the year under review, your Company has actively
engaged in trading activities in the Power Exchanges,
leveraging its technical capabilities and optimizing surplus
generation for revenue maximization. The key highlights are
as under:

Trading of Surrendered Power & URS Power:

•    Your Company continuously trades surrendered power in the
Day-Ahead Market (DAM) and Real-Time Market (RTM)
segments of Power Exchanges, subject to surplus lignite
availability and the technical parameters of its thermal fleet.

•    During FY 2024-25, total power surrendered across all
generating stations stood at 926 MUs, of which 434 MUs
(47%) were from National Load Despatch Centre (NLDC)
under Ancillary Service Regulations for maintaining grid
frequency stability.

•    A total of 187 MUs of URS power from the Thermal Power
Stations were sold through different segments of the Power
Exchange during FY 2024-25, generating a gross revenue of
?60 Crore, as against 68 MUs and ?21 Crore in FY 2023-24,
reflecting a substantial year-on-year growth.

Power Trading under Trading License:

•    Your Company, holding a trading licence, traded 259 MUs
of power during FY 2024-25 (comprising both sale and
purchase of power on behalf of grid-connected entities), as
compared to 174 MUs in FY 2023-24, thereby enhancing
its role in power market operations.

These trading initiatives have enabled the Company to
optimize utilization of available generating resources,
contribute to grid stability, and augment revenue streams, in
line with the regulatory framework prescribed by the Central
Electricity Regulatory Commission (CERC).

Regulatory Affairs:

A.    Filing Truing up petition for the period 2019-24 and

Tariff petition for the period 2024-29

•    The truing-up Petitions based on the actual expenditures
incurred during the period 2019-24 for your Company
Thermal stations, Barsingsar lignite Mine, Neyveli
lignite Mine and Talabira Coal mine were filed by
26^th November, 2024.

•    Tariff Petition with projected expenditures for the
period 2024-29 for your Company Thermal stations,
Barsingsar lignite mine, Neyveli lignite Mine and
Talabira Coal mine were filed by 29^th November, 2024.

•    Petition for adoption of tariff for 510 MW Solar Power
under CPSU scheme was filed on 16^th December, 2024.

B.    Meet with CERC, DISCOMS & other Stakeholders

•    Meeting was held at New Delhi on 1^st August, 2024
with CERC Chairperson, uniqueness and challenges
involved in Lignite Mines were explained.

•    Conducted Regulatory Meet at Andaman from
11^th October, 2024 to 14^th October, 2024 in which
Chairperson, Members & Secretary from CERC and
NTPC officials participated. The Main Issues related
to Lignite mining and Thermal power Generation
were discussed.

•    Conducted Customer Meet at Chennai on
22^nd July, 2024 in which representatives from all
DISCOMS participated and acknowledged the issues
related to Neyveli Mines and the lignite issues at our
Power stations.

Key Regulatory Developments:

During the year, the following important regulations were

notified by CERC, having direct operational and financial

implications for your Company:

•    During the year 2024-25, 10 nos. of CERC Orders were
received including Remand Orders from APTEL.

•    Central Electricity Regulatory Commission (Deviation
Settlement Mechanism and Related Matters) Regulations,
2024 was notified on 5^th August, 2024 and got effective from
16^th September, 2024. Reference Charge Rate was delinked
from Market price & linked to respective thermal station
Energy Charge Rate which is a positive impact on
NLCIL stations.

•    Central Electricity Regulatory Commission (Indian
Electricity Grid Code) (First Amendment) Regulations,
2024 was notified on 23^rd October, 2024. Instances of
NLCIL thermal stations getting station schedule less than
Minimum Turn-Down Level (MTL) got reduced further
thus reducing power surrender from DISCOMs.

•    Central Electricity Regulatory Commission (Terms and
Conditions of Tariff) (First Amendment) Regulations,
2025 was notified on 04^th February, 2025. It simplified
coal pricing for new mines by reducing billing-tariff gap &
Revised compensation mechanism for Part load operation
of thermal stations due to Beneficiary Schedule.

Interaction with Stakeholders:

During the year under review, your Company has proactively

undertaken multiple stakeholder engagement initiatives to

foster transparency, enhance confidence, and strengthen

long-term relationships. The measures undertaken include:

Investor Engagement:

•    Conducting Investor Conferences and Roadshows to
apprise institutional and retail investors of the Company’s
performance, strategic initiatives and growth roadmap.

•    Organizing periodical investor calls to ensure timely
communication on operational and financial updates.

Customer and Vendor Outreach:

•    Hosting Customer Meets and Vendor Meets to address
operational issues, capture stakeholder feedback, and
reinforce collaborative partnerships.

Public Communications:

•    Regular dissemination of information regarding the
Company’s developments, plans and milestones through
press releases, business news channels and social media
platforms, in accordance with the principles of transparency
and accountability.

These continuous engagement efforts have significantly
contributed to strengthening stakeholder confidence, ensuring
alignment with the Company’s strategic vision, and enhancing
its reputation in the domestic and international markets.

Sustainability Development Measures

Your Company has been diligently aligning its operations
with the Ministry of Coal’s Sustainable Development Cell
(SDC) directives, demonstrating a strong commitment to
environmental sustainability. Your Company has made
significant progress in bio-reclamation, exceeding its
FY 2024-25 target of 194 hectares by reclaiming 195.22
hectares of land.

Mission LiFE activities are a key focus, with mass tree
plantation drives conducted during significant environmental
events, such as World Earth Day and World Environment Day.

 

Your Company has also partnered with expert institutions
for ecological studies of reclaimed areas, avian diversity,
the development of a deer park management plan, bio-mass
growth and research on suitable tree species for mine spoils.
Additionally, a detailed study on mine-water potential for
community use has been completed, highlighting Your
Company’s contributions to water resource management in
surroundings of Neyveli, Cuddalore District. Based on the
study, Secretary, MoC has informed the Chief Secretary,
Govt. of Tamil Nadu regarding the active contribution of
Your Company towards water resource management and
sustainability in the region along with community betterment.

Under Mission GREEN initiative of MoC, your Company
initiated steps for Neyveli NEER (a bottled drinking
water project), Pisciculture, Miyawaki Plantation, Hi-tech
cultivation etc.

Your Company is repurposing mined-out lands for renewable
energy projects and installing 50 MW solar PV system on 85
hectares of de-coaled lands in Mine-II, Neyveli, Tamil Nadu.

Environment Compliance Measures

Your Company has consistently adopted and promoted
the best Environment Management Plan (EMP) since its
inception and remains deeply committed to sustainable,
environment friendly mining and power generation. The
Environmental Policy of your Company is aligned with its
Vision and Mission, reflecting its focus on ecological balance
and responsible growth.

During the year, your Company continued to undertake mass
tree plantations for the benefits of slope stabilisation of the
Mines Overburden dumps in order to convert the Mine spoil
into cultivable soil making it fit for habitation. The Company
started investing in Eco-care since its inception leading to a
development of a lush habitat which has been converted into
Eco-parks & Eco tourism locations. The greenbelt developed
also acts as barrier to arrest the air pollution and prevents
soil erosion besides Sequestration of CO₂ in the atmosphere.

The units have installed dust suppression mechanisms such
as water sprinklers, spray guns, Fog Cannons etc. to control
the fugitive dust. The Ambient Air Quality (AAQ) is being
monitored regularly in the surrounding villages and is well
within the prescribed norms.

Consequent to the Amendments of Environment (Protection)
Act, 1986, the norms for water consumption and emissions
from Power Plants [Particulate Matter (PM 2.5 & PM10),
Sulphur dioxide (SO2), Oxides of Nitrogen (NOx) & Mercury
(Hg)] have been made stringent for the existing as well as new

Thermal Power Plants. In this regard, installation of Flue Gas
De-sulphurisation (FGD) Systems is in progress.

As a result of continued environmental management measures
undertaken by your Company has received many awards for
maintaining better environmental management practices. The
lists of such awards received during the year 2024-25 are
as under:

Awards & Recognition

In recognition of its various activities, your Company, has
been conferred with the following awards during the year
2024-25:

•    Winner of Global Energy and Environmental Foundation
(GEEF) Award for the year 2024 and 2025

•    Winner of Greentech Environmental Excellence award 2025
for best Environmental practices

•    Winner of Environment Excellence Gold Award - 2025 from
1^st GreenEnviro Environment Award in Thermal category.

Insurance

During the year, your Company obtained Mega Insurance
Policy for the Assets and Stocks of Production Units viz.
Mines, Thermals & Renewable Energy (RE). It broadly
covers, Material damage (MD) of all Mine assets and Material
damage (MD), Machinery Breakdown (MBD), Fire Loss of
Profit (FLOP) & Machinery Loss of Profit (MLOP) of all
Thermal & RE assets. Assets of Service units are covered
under Standard Fire and Special Peril Policy (SFSP) which
also cover Electronic Equipment Insurance (EEI), Transit
Insurance, Public Liability Industrial Risk Insurance.

Land Acquisition and R&R Policy

Your Company, with mining and power projects spread across
multiple States in India, undertakes land acquisition and
resettlement & rehabilitation (R&R) activities in compliance
with the Right to Fair Compensation and Transparency in Land
Acquisition, Rehabilitation and Resettlement (RFCTLARR)
Act, 2013, as well as the respective State Government policies
and guidelines. All relevant notifications, Government orders
and statutory provisions are duly followed, ensuring that the
process remains transparent, fair and legally compliant.

The Company is facing deficit in availability of land at Neyveli
for lignite mining, however, the Company is confident of
overcoming the challenges on land acquisition at Neyveli
mines with sustained efforts, in the near future. In order to
ensure availability of lignite, the Company has undertaken
contingency mining with additional cost and resources.

Your Company has established Grievance Redressal Offices
at project sites to provide affected families and communities
with a structured platform to raise concerns and seek timely
resolution. This mechanism ensures transparency, builds trust
and strengthens community relations.

In line with its commitment to livelihood restoration,
your Company also conducts skill development training
programmes for Project Affected Persons (PAPs). During
FY 2024-25,

•    One-year exclusive PG Diploma programmes for PAPs
through the National Power Training Institute (NPTI),
including Renewable Energy & Grid Interface Technology.

•    Training imparted to 326 PAPs as SME Operator Assistants
and 96 PAPs as Mines Support Service trainees under a
three-year training scheme.

•    Proposed training support for PAPs through reputed
coaching institutes for competitive examinations
(TNPSC, SSC, UPSC, etc.) and other advanced technical
training programmes.

Your Company remains committed to safeguarding the
interests of PAPs through fair compensation, livelihood
enhancement and community development initiatives. Land
acquisition and R&R measures are carried out with a focus
on minimizing displacement, promoting social acceptance
and enabling sustainable growth of both the organization
and local communities. Going forward, your Company will
continue to strengthen stakeholder engagement, expand
skill-building initiatives, and adopt best practices to ensure
smooth implementation of ongoing and future projects.

Research and Development (R & D)

Centre for Applied Research & Development (CARD) is the
in-house R&D Centre of the Company and has been recognized
by the Department of Science & Technology. CARD has been
granted NABL accreditation by National Accreditation Board
for Testing and Calibration Laboratories (NABL) based on the
International Standard ISO/IEC 17025:2017.

The major functions of CARD include:

•    Carrying out Science & Technology (S&T) Research
Projects,

•    Environmental monitoring, Pollution level measurements,
Quality control Testing & Consultancy, Technical services.

•    Technology development, patenting and commercialization
based on the R&D and Pilot Plant outcome, Co-ordinating
for S&T Projects undertaken by the Company, institutional
services to students, special studies for operation & new
schemes and new initiatives etc.

•    Rendering analytical services towards quality control of
various products/materials used in mines, Power stations
and other service units as well as outside agencies on
chargeable basis.

•    R&D works on lignite utilization, diversification,
product development, by-product utilization, solid waste
management, wasteland reclamation, Renewable energy,
Clean Coal Technologies, introduction of real time
monitoring facilities etc.

The total R&D expenditure, incurred during the year 2024-25
was H 42.20 Crore.

Human Resource Development

Your Company recognizes that its employees are its most
valuable assets and the key drivers of growth and operational
excellence. A conducive and enabling work environment is
consistently provided to employees, thereby fostering high
performance, innovation and sustained engagement.

Training

In 2024-25, a total of 838 training programs were conducted,
comprising 453 planned and 385 add-on programs. Together,
these programs reached 27,994 participants, demonstrating
NLCIL’s wide outreach and adaptability in addressing diverse
training needs.

Planned programs primarily focused on Behavioural
Competencies, HR, Health & Wellbeing, and Safety.
Notably, 91 behavioural competency programs trained over
2,700 employees, reinforcing NLCIL’s focus on leadership
and interpersonal effectiveness. Additionally, HR functional
training saw strong participation with nearly 2,000 attendees,
highlighting internal capability enhancement in people
management practices.

Add-on programs complemented core training efforts with
agile, high-impact interventions. The Skills Upgradation
initiative alone trained more than 6,000 participants,
emerging as the highest-engagement module. Management
Development, Functional HR and Safety-related sessions also
made significant contributions to professional growth and
regulatory compliance.

Industrial Relations

Your Company continues to uphold the principle of
participative management by maintaining regular bipartite
meetings with Recognized Unions (collective bargaining
agents) and Associations to address employee concerns in a
constructive manner.

•    The industrial relations climate remained cordial throughout
FY 2024-25, with no man-hours lost due to industrial unrest.

•    The Secret Ballot Election was conducted on
25^th April, 2025 by the Returning Officer/DCLC (Central),
Chennai. Subsequently, on 23^rd June,2025, the NLC Labour
Progressive Union and Kanaraga Thozhir Pirivu Anna
Thozhir Sanga Peravai (ATP) were conferred recognition
as collective bargaining agents.

•    Affordability was reviewed and approval was obtained for
continuation of payment of allowances and incentives under
the Unified Incentive Scheme (UIS) for unionized workmen/
non-executives.

•    The Company received the “Best IR Strategy for
Collaborative Productivity Improvement Initiatives” award
from the National Institute of Personnel Management
(NIPM) at NATCON 2024, Mangalore.

Manpower

The total manpower strength, including subsidiaries, stood at
10,227 employees as on 31^st March, 2025 as against 10,368 as
on 31^st March, 2024.

Reservation of Posts

The group-wise representation of SC/ST/OBC as on 31^st March, 2025 stands as follows:

 

Group	Â	Strength of OC/OT/OBC		Â	% of OC/OT/OBC		Â
	lotai onei igu i	OC	OT	OBC	OC	OT	OBC
A	2,939	616	316	736	20.96	10.75	25.04
B	304	63	17	96	20.72	5.59	31.58
C	4917	942	48	1951	19.16	0.98	39.68
D	2067	499	8	961	24.14	0.39	46.49
Total	10,227	2,120	389	3,744	20.73	3.80	36.61

 

EMPLOYEES’ WELFARE AND SOCIAL SECURITY SCHEMES

Educational facilities

Your Company recognizes education as a cornerstone for social upliftment and continues to extend quality education to
employees’ wards, children of contract workmen, daily wage earners, and students from economically weaker sections of
society residing in peripheral villages. Presently, 8 schools are being run under the patronage of your Company with a total
student strength of 4,291 during the year.

Scholarship Schemes and Tuition Fee Concession

Your Company provides educational assistance (scholarships) to the wards of employees (General, SC/ST, OBC category)
and wards of Contract Workmen to pursue higher education (under graduate degree / diploma / professional courses) till the
duration of the course subject to a maximum of five years.

 

Educationai Assistance	Beneficiaries during AY 2024-25	Amount Disbursed (H in Lakh)
General	152	24.76
SC/ST	218	41.80
OBC	531	102.90
Total	901	169.46

 

In addition, your Company recognizes academic excellence by presenting cash awards to meritorious wards of employees
who secure 80% and above in CBSE examinations and 90% and above in State Board (10^th & 12^th Standard) examinations.

In addition to the above, Your Company also reimburses tuition fees every year for non-employee wards students belonging to
SC/ST/OBC categories, predominantly hailing from the surrounding villages of your Company’s projects, who are pursuing
studies at Jawahar Science College, Neyveli, patronised by your Company. The reimbursement amount ranges from H 25,660/-
to H 42,530/- per annum.

 

Category of students	Beneficiaries	Amount sanctioned (H )
SC/ST (Excluding CSR)	67	18,32,300/-
OBC (Excluding CSR)	105	29,93,070/-
Â	172	48,25,370/-

 

During FY 2024-25, an amount of H 48.72 lakh was disbursed
to 517 wards of contract workmen under the Contract
Workmen Children Educational Assistance Scheme.

Medical Facilities

Your Company has established a robust health care model
for protecting, preserving and promoting the health and
well-being of its workforce and the community. The model
is time-tested with proven results, founded on the belief
that a healthy workforce is the key driver of economic and
organizational sustainability. Since the establishment of the
NLC India Hospital (NLCIH) in 1962, your Company has
continued to support and expand comprehensive medical
services. NLCIL Hospital - a secondary level medical facility
with a bed capacity of 350, catering not only to employees
and their families but also to residents of peripheral villages.
The facilities include:

 

•    The hospital’s Outpatient (OP) Services continued to deliver
comprehensive care, supported by well-equipped diagnostic
facilities, pharmacy and therapy services. A wide range of
specialties was offered, including General Medicine, General
Surgery, Obstetrics & Gynecology, Pediatrics, Orthopedics,
Ophthalmology, ENT, Dermatology, Chest Medicine,
Psychiatry, Dental and Ayurveda. In total 3,28,979 patients
availed OP services during the year.

•    The Inpatient (IP) Services provided medical care across key
specialties such as General Medicine, Surgery, Obstetrics &
Gynecology, Pediatrics, Orthopedics, Ophthalmology and
ENT. These services supported the treatment and recovery
of 7,207 inpatients during FY 2024-25, reflecting the
hospital’s continued commitment to accessible and quality
healthcare delivery.

•    The Intensive Care Unit has 09 beds equipped with
Multipara monitors, defibrillators and three Ventilators to
provide secondary level of care for all medical emergencies.

•    Emergency care service is operational on 24X7 basis.
08-bedded emergency unit equipped with centralized
oxygen and suction lines, bed monitors, devices and mini
operation theatre is capable of handling all emergencies
including trauma and industrial accidents.

•    Emergency care linked with Advanced Life Support
ambulance services for inter-transfer facility of critically ill
patients to higher centres.

•    Ayurveda dispensary is functioning where 25,374 patients
got treatment

•    NLCI Hospital has established empanelment with 24
hospitals for providing tertiary care treatment to the
needy patients.

•    In the FY 2024-25, 4,208 patients were referred to various
hospitals and 6,357 times patients were sent for review.

•    High End Cardiac Centre with State-of-the-art “Cath Lab
Facility” is established in collaboration with Shri Kauvery
Medical Care (India) Ltd., Trichy at NLC India Hospital,
Neyveli. The Centre is equipped to handle all medical
emergencies with 25 bedded Cardiac facility. Procedures
like coronary angiogram, coronary Angioplasty and other
procedures can be carried out in this Centre.

•    Two Renal Care Units (RCU) - RCU-I run by the Company
and RCU-II through an outsourced facility, with a combined
capacity of 28 beds provide haemodialysis service to chronic
kidney disease patients.

•    Under the 100 Days Intensified TB Elimination Program,
NLC India Hospital screened 2,902 individuals, conducted
1,939 chest X-rays and tested 291 samples for sputum
AFB, identifying 16 TB cases. Awareness programs
reached 5,693 people and 30,000 IEC materials were
distributed. Additionally, under the NI-KSHAY POSHAN
YOJANA (CSR), 150 beneficiaries received protein-rich
nutritional supplements.

In coordination with State health department, the following

activities were conducted for the benefit of the general public:

•    Family Welfare Services for achieving fertility control
among the local population.

•    Universal Immunization programme for protecting children
and adults against all infectious diseases.

•    Integrated Counselling and Testing, Treatment facilities for
HIV infected patients.

•    Revised National Tuberculosis programme for prevention
and treatment of TB among the local population.

•    National Leprosy Control Programme for early detection
and treatment of leprosy among local population.

•    Occupational Health services that monitor health
and wellbeing of workforce through medical
surveillance programme.

•    Geriatric care services to the inmates of Ananda Illam
run by NLCIL for care of elderly persons who have no
family support.

Elders Home - Ananda Illam

To fulfil the special needs and requirements of the senior
citizens, your Company runs Ananda Illam in Neyveli. This
elders home provides hospice & home care to the elders and
help them to lead a happy and peaceful life with dignity. The
employees of your Company also lend their helping hand by
contributing a fixed amount every month from their salary to
run the old age home.

Compliance under Persons with Disabilities
Act, 2016

Your Company has evolved a comprehensive policy for
Persons with Disabilities (PwDs) as per the guidelines
issued by DoPT for providing certain facilities / amenities
to PwDs to meet their requirements and enable them to
effectively discharge their duties. The strength of PwDs as on
31^st March, 2025 stood at 226.

“SNEHA” Opportunity Services and School

Your Company implements various social welfare measures
towards the cause and upliftment of the Physically Challenged
Persons through Neyveli Health Promotion and Social
Welfare Society (NHPSWS), “SNEHA” Opportunity
Services and School both patronised by your Company. This
School imparts education and training to mentally challenged
children (82 children: Boys-59 & Girls-23) which includes
training in vocations like arts & crafts, candle making, paper
cup & cover making, carpentry, gardening, cooking and
doormat weaving. NLCIL also provides free Bus service to
Sneha School Children.

Health Promotion and Social Welfare Society
(NHPSWS)

Through the society, Tricycles, Wheel chairs, Hearing aids
etc. are distributed at free of cost to the disabled persons
during Independence Day and Republic Day celebrations.
The society runs retail outlet shops namely VAIGHAI.

Implementation of Official Language Act, 1963

Your Company has made all concerted efforts to promote
the Official Language Implementation Policy in line with the
provisions and guidelines prescribed by Government of India
under the Official Language Act, 1963. In line with the Policy
of Government of India and the Provisions prescribed under
the Official Language Act, 1963 your Company continues
to promote the Official Language, the following activities
undertaken throughout the year include:

•    The Official Language Implementation Committee (OLIC)
meetings were held quarterly under the chairmanship of the
CMD, with minutes shared with all stakeholders including
MoC and TOLIC (Puducherry). Regular monitoring
of Hindi usage at the unit level was carried out and the
Best Performance in OL Award was presented quarterly.
Quarterly Progress Reports and Annual Assessment Reports
were submitted to the Department of Official Language,
MoHA and the Ministry of Coal. The Hindi version of
Annual Reports for NLCIL and its subsidiaries was also
submitted to MoC.

•    A total of 135 employees were enrolled in Hindi
Correspondence Courses for 2024-25, with exam fees
sponsored by the Company. Cash awards were given to
successful candidates from 2023-24. OL inspections
were conducted across various units, with appreciation
received from the Ministry of Coal for efforts at RO/Delhi
and Neyveli. NLCIL was awarded 1^st Prize by TOLIC
(Puducherry) for Best OL Implementation. Hindi Fortnight
2024 was celebrated with competitions and Kavi Sammelan,
while Spoken Hindi classes, workshops and translation
activities continued across all units. Key documents, reports
and committee materials were regularly translated and
submitted on time.

Women Empowerment - Forum of
Women in Public Sector (WIPS):

WIPS NLCIL chapter was formed in 12^th February, 1990
and is a Corporate Life Member in the SCOPE since 1990.
The strength of women employees in the Company as on
31^st March, 2025 stood at 807 constituting 7.89% of Company’s
human resource.

The following activities were organized by WIPS, NLCIL
by developing their potentials:

•    In pursuance of provisions of Section 4 of Sexual Harassment
of Women at Workplaces (Prevention, Prohibition and
Redressal) Act, 2013 and Rule 13 (e) of Sexual Harassment
of Women at Work Place (Prevention, Prohibition and
Redressal) Rules, 2013, the Internal Complaint Committee

is constituted to deal with complaints relating to Sexual
Harassment of Working women in the Company.

•    For the benefit of the working women employees,
“Anbalaya” a well-equipped Creche with trained personnel
is in operation.

•    The NLC India Limited chapter of WIPS has also organized
and conducted several sports, cultural activities, group
discussions for the benefit of women employees.

•    Your Company has imparted fresh Skill and Entrepreneur
development Training for the empowerment of women in
the following job roles.

-    Self-Employed Tailoring.

-    Assistant Beauty Therapist.

-    Domestic Data Entry Operator.

-    Fashion Jewellery.

-    General Duty Assistant.

-    Handmade incense stick making.

-    Sewing Machine Operator.

•    International Women’s Day celebrations: Your Company
Celebrated International Women’s Day 2025 on 8^th March,
2025 in a grand Manner. The event was graced by:

-    Selvi Kasturi Rajamani, First Para Powerlifter (Chief
Guest).

-    Selvi N. Sengamala Thayar, Kalaimamani Awardee in
Tamil Literature (2017), Govt. of Puducherry (Guest of
Honour).

-    Smt. P. Jayanthi, Kalpana Chawla Awardee (Govt. of
Tamil Nadu), Namakkal.

Safety

Your Company continues to take pioneering efforts in the area
of industrial safety, implementing numerous initiatives aimed
at enhancing safety standards in all Mines and Thermal Plants,
in addition to full compliance with statutory requirements.

Key measures undertaken to ensure safety of personnel and

equipment include:

i.    Adoption of blast-free lignite mining systems using
bucket wheel excavators, belt conveyors and spreaders
in all Neyveli mines. Similar blast-free mining practices
are employed in Barsingsar mines for overburden
and lignite using conventional mining equipment. At
Talabira Mines, blast-free mining is achieved through
the use of surface miners for coal extraction.

ii.    Installation of Automatic Fire Detection and Suppression
Systems (AFDSS) and other safety devices on all Heavy
Earth Moving Machinery (HEMM) deployed in Mines
and Thermal Plants.

iii.    Annual safety audits of all Mines by a multidisciplinary
Corporate Safety Team and biennial safety audits of
Thermal Plants by accredited external agencies.

iv.    Monthly inspections of predetermined units by Corporate
Safety Council members, with findings presented to
Unit Heads and teams for action.

v.    Regular workshops and training programmes on safety
for Mines and Thermal Plant personnel.

vi.    Monthly meetings of Safety Officers conducted by
the Corporate Safety Department to review safety
performance and follow-up actions.

vii.    Strict implementation of established Standard Operating
Procedures (SOPs) for all activities in Mines and
Thermal Plants.

viii.    Development and implementation of risk
assessment-based Safety Management Plans (SMPs)
in line with Coal Mines Regulation, 2017, covering
bench operations, specialized mining equipment,
conveyor zones, groundwater control and conventional
mining equipment.

ix.    Monthly Pit Safety Committee meetings in Mines
and Unit Safety Committee meetings in Thermal
Plants, in addition to special safety meetings by
individual divisions.

x.    Weekly safety inspections of Mines, Thermal Plants
and Renewable Energy Power Projects by Corporate Safety
Executives, with reports submitted to Unit Heads.

xi.    Recognition of your Company Industrial Medical
Centre by DGMS as a training centre for imparting
First Aid training; regular training batches conducted
for workmen.

xii.    Deployment of ambient air quality monitoring systems
in Mines and Thermal Plant areas for continuous air
quality monitoring.

xiii.    Use of water sprinklers and fog cannons in Mines to
suppress dust; respirable dust monitoring conducted
in compliance with regulatory requirements for free
silica assessment.

xiv.    Regular data updates in the National Coal Mines Safety
Report Portal.

xv.    Safety Auditors’ training conducted through Anna
University to build internal audit capabilities for Safety
and Health Management System audits, as per Ministry
of Coal guidelines.

xvi.    Completion of Safety and Health Management System
Audits in all Mines by trained internal auditors.

xvii.    Launch of the “NLCIL Aran” Mobile Safety App
on National Safety Day, 2025 for reporting unsafe
observations and near misses.

xviii.    Celebration of National Safety Day in all Thermal Plants.

xix.    Observance of Mines Safety Week 2024 in Neyveli
Mines from 9^th to 14^th September, 2024.

•    First Place in the “Best PSU Implementing RTI”

category at the Public Relations Society of India (PRSI)
National Awards for the year 2024-25.

•    Confederation of Indian Industries (CII) Award for Strong
Commitment to HR Excellence.

•    5-Star Rating: Mine-I, Mine-IA, Barsingsar Lignite Mine,
and Talabira II & III OCP received the 5-Star Rating
Award from the Ministry of Coal for FY 2022-23 in
October 2024. Barsingsar Lignite Mine also secured
overall 2^nd rank in the opencast mine category across India
for the third consecutive year.

•    Ministry of Coal announced the results on Star Rating
for the performance base year 2023-24 and rated NLCIL’s
three Mines (Mine-IA, Talabira & Barsingsar Mine) with
5 Star Rating and two Mines (Mine-I & Mine-II) with 4
Star Rating under Open Cast Mines category. Mine-IA
stood in second (2^nd) position among 228 Mines.

•    Mines Safety Week/ Fortnight: First Aid team won the
First Prize in the State-level First Aid competition in

 

Awards & Recognition

In recognition of its various activities, your Company, has
been conferred with the following awards during the year
2024-25:

•    “India’s Rising Star award” in Indian Brand & Leadership
Conclave 2024 hosted by the Brand Story in Goa on
20^th April, 2024.

•    NLCIL has successfully reached the milestone of qualifying
for International Project Management Association Delta
Certification - Level 3 (Standardized) in the Preliminary
Assessment conducted by IPMA. First organisation in India
to achieve this feat for Project Governance Maturity Level.

•    Chairman and Managing Director was conferred with the
CEO OF THE YEAR award by Top Rankers Excellence
Awards on 23^rd August, 2025.

•    “Corporate Responsibility Champion Award” at the

Outlook Planet Sustainability Summit & Awards 2024 held
at Goa on 27^th May, 2024.

•    Chairman and Managing Director of your Company
conferred with the “Best CEO Corporate Management
Innovative Leadership Excellence Award 2023-24” at

the 24^th Annual Geominetech International Symposium on
11^th & 12^th July, 2024.

•    “Best ESG Report” in the Organization Award category

for Integrated Annual Report for the FY 2022-23 at the
11^th Edition of “The Original National Awards for
Excellence” on 11^th July, 2024 in Mumbai.

•    NTPL received the “GEEF Global Water Tech Award”
under the category “Water Conservation Industrial

Project of the Year 2024” at Global Water tech Summit in
New Delhi on 26^th July, 2024.

•    First Prize in the Best Exhibitor Award (Coal Category)

at the Mines Safety Awards (MSA) 2024, organized by the
All-India Mines Safety Association under the Directorate
General of Mines Safety (DGMS) in Kolkata, on
28^th July, 2024.

•    “Emerging HR for Greater Good” for its significant
contribution in the areas of Human Resource Management
and CSR on 27^th August, 2024 by XLRI, Jamshedpur.

•    “Top Rankers Excellence Award for the Best CSR
Practices” at the 24^th National Management Summit,
organized by the Top Rankers Management Club in
New Delhi on 30^th August, 2024.

•    Barsingsar Lignite Mine has won the “Apex India
Platinum Award-2024” for its outstanding achievement
in Occupational Health and Safety (OHS) category

in the Metal and Mining Sector.

•    NLCIL adjudged as the winner of Silver Award for
“Best IR Strategy for collaborative productivity
improvement initiatives” by NIPM at NATCON-2024
on 27^th September, 2024.

•    “Overall Proficiency Award” for the consistent top
performance during the 5-month Certified Cyber
Warrior (CCW) V3.1 Program, conducted by Pravartak,
IIT Madras on 22^nd September, 2024.

•    First Prize from MoC for its innovative practices and
public participation during the Swachhata Pakhwada
(Fortnight) from 16^th June, 2024 to 30^th June, 2024 on
21^st October, 2024.

•    First Prize of “Rajbhasha Shield” for the year
2023-24 by the Ministry of Home Affairs, Govt.
of India.

•    Chairman and Managing Director of your Company
conferred with the prestigious “International
Project Management Association (IPMA) Project
Director (Level A) Certificate of competency”

for his commitment in executing various complex
projects at the strategic level and for his exemplary
leadership skills.

•    NLCIL bagged First Prize in the PRSI National Awards
2024 in the category “PRSI PSU Implementing RTI”

on 22^nd December, 2024.

•    As one of the “Best Performers under Special
Campaign 4.0” in the New Initiative/Best Practice
category on 7^th January, 2025.

•    Two prestigious GreenTech Corporate
Communications Awards 2025 in the categories
of Excellence in Corporate Communication
Strategy and Excellence in Crisis Management
Communication on 9^th January, 2025.

•    “Mining Innovation Award” at the 3^rd International
Conference on Safe & Sustainable Mining Technology.

•    “Best Overall Financial Performance Award” and
“Excellence in Learning and Development Award”

at the Governance Now 11^th PSU Awards in New Delhi
on 28^th February, 2025.

•    “Best Enterprise Award (2^nd place)” in the Navratna
category at the 35^th National Meet of WIPS, in
recognition of its commitment to women’s development.

Risk Management

A comprehensive Integrated Risk Management Policy and
Framework as approved by the Board is in place in
your Company. Besides risk prioritization, the roles and
responsibilities of the Members are clearly defined. As per
the policy, an Internal Risk Review Committee (below
Board level) review the risks on a quarterly basis. The Risk
Management Committee, Audit Committee and the Board
review the risk assessment together with the minimization
procedure periodically.

Vigilance

Vigilance is a critical management tool that helps in
channelizing the efforts of an organization towards higher
growth trajectory. Its function should not be viewed as
impediment in achieving the objective of the company rather it
should be viewed as facilitator in accomplishing its objective.

In order to protect the interests and preserve the integrity
of the Organisation, your Company has established a robust
Vigilance department headed by a Chief Vigilance Officer
at the level of Joint Secretary to Government of India. The
CVO acts as an advisor to the CMD in all matters pertaining
to vigilance and as nodal officer of the Organization for
interaction with CVC and CBI.

September 2024. Talabira II & III OCP won five
prizes during the Annual Mines Safety Fortnight
2024-25 under DGMS, Bhubaneswar Region.
Barsingsar Lignite Mine Project (BLMP) won the
First Prize in Lignite A category during the 38^th
Mines Safety Week 2024-25.

•    Quality Circle Awards: Mine-I “Pinnacle” team
won the Gold Award at the State-level Quality
Circle competition in September, 2024 and the
Par Excellence Award at the NCQC, Gwalior
in December 2024. Mine-II teams “Power
Automation” and “Challenger” won Excellence
and Par Excellence Awards at the National Quality
Circle Forum in December 2024.

•    Private Institutional Awards: Lignite Mine-I
received the Greentech Workplace Safety
Excellence Award and the Green Enviro
Foundation Platinum Award for Excellence
in Safety Training in January 2025. Barsingsar
Lignite Mine was conferred the Platinum Award
by Apex India Foundation. Mine-II was declared
the winner of the 22^nd Global Greentech Workplace
Safety Award 2024 in January 2025.

In addition to the headquarters establishment at Neyveli,
Vigilance personnel are deployed at its two Joint Ventures
at NUPPL, Uttar Pradesh and NTPL, Tuticorin as well as at
the off- site locations such as Talabira (Odisha) & Barsingsar
(Rajasthan). The functions and activities of Vigilance can be
broadly classified under 3 heads viz., preventive vigilance,
punitive vigilance and Surveillance & detection.

As part of preventive vigilance measures various checks
across all functional areas are carried out and recommended
systemic improvement measures for implementation.

Notable improvements made:

•    Mines: Corporate (NTP) Network Time Protocol server
on implemented & plugged the loopholes in the Integrated
Weighment Tracking System (IWTS); Processing for
admitting contract workmen for basic Vocational Training
is now done through e-office mode.

•    Thermal: Non-operationalization of existing settling tanks
in Thermal Power Stations which led to loss of Lignite
(through the drains) and damage caused to environment
was resolved by commissioning new desilting equipment;
Unauthorized Entry / Exit of vehicles to ash pond curtailed

by installing boom barrier and deploying CISF to avoid
illegal transportation of minerals /ash.

•    HR: Introduced mandatory reporting of all disposals
by all Disciplinary Authorities (DAs) to the Appellate
Authority enabling suo-moto Review even in
non-appeal cases to safeguard the interests of the Company.
Mandatory verification of certificates of educational
qualification and experience of new recruits was initiated
by forming a cell by HR department.

•    Procurement / Contract: A special drive was initiated and
the long held up EMDs worth over H 8 Crore with material
management Unit has been cleared. Mandated creation of
Purchase Requisition (PR) for all Services / Works Contracts
ensuring greater transparency.

•    General Hospital: Improper expiry management of lab
chemicals, reagents is now managed professionally; Hitherto
not maintained Hindrance Register is now maintained; Lab
test data, Billing module & Referrals are now integrated
with Integrated Hospital Management System (IHMS);
Responsibility of Contractor for Waste management
is reinforced.

•    Disposal of scraps is streamlined by ensuring weighment at
both units and Disposal yard (initially it was only at disposal
yard); segregation of costly items (such as copper cables)
during disposal of machine scrap introduced to generate
more revenue.

•    Security: SOP formulated for CCTV control room at
Security Office for CCTV footage viewing/sharing, access
control, exception reporting log, Authorization of CCTV
maintenance crew etc.

•    e-Auction: Outsourcing of e-Auction platform to outside
firm was gradually reduced and taken up through in house
NeAT platform.

•    @NTPL: Implemented biometric/digital attendance for
contract workers; mandated independent verification of
Police Verification Certificates (PVCs).

•    @NUPPL: Strengthened surveillance in the township by
installation of CCTV Cameras (32) inside Township; setting
up of access control through ‘face reader’ for regulating
entry /exit of contract workers; A book on Do’s & Don’ts
for Site Executives, containing HR, IR and Financial
guidelines released.

•    @Talabira: Digital Logistic Management System (DLMS)
implemented and linked it with SAP Data (Sales).

•    @Barsingsar: Fixed critical inventory thresholds
at OHC Pharmacy; digitized records; strengthened
inspection frequency.

•    IT initiatives: Role based access control (RBAC) application

and Software Requirement Management (SRM) launched.

•    Capacity building program:

-    Conducted 4 sectoral interactive workshops
(Mines, Thermal, Procurement, Finance) with focus on
case studies and transparency issues.

-    Organized 11 training programs, benefitting 675
executives (including new recruits), covering vigilance
administration, GeM procurement, ethical awareness,
case studies on purchase & contracts, CCTV/video
analytics, and refresher courses on conduct rules.

•    Vigilance Awareness Week (VAW 2024): Vigilance

Awareness Week was observed with wide stakeholder

participation, including:

-    Grama Sabhas in nearby villages spreading
anti-corruption awareness.

-    Contractor, Vendor and Consumer Meets in Neyveli,
Tuticorin and Talabira.

-    Launch of Integrity Clubs in 13 schools around Neyveli.

-    Creative awareness programs such as stamp design,
rangoli, walkathons, street plays, flash mobs, short films,
debates and talk shows.

-    A “Signature Wall” capturing Integrity Pledges from
hundreds of employees, students and stakeholders.

Through these sustained measures, your Company continues
to reinforce its commitment towards a transparent, accountable
and integrity-driven governance framework.

Implementation of Integrity Pact

Your Company is committed to have most ethical business
dealing with the Vendors, Bidders and Contractors of
goods and services and deal with them in a transparent
manner with equity and fairness. To achieve these goals,
your Company is implementing the Integrity Pact Programme
in co-operation with Central Vigilance Commission (CVC)
and renowned International Non-Governmental Organisation,
Transparency International India (TII). Integrity Pact with
the suppliers / contractors for all Tenders with an estimate of
H 1 Crore and above are monitored.

During the year 2024-25, Two Structured meetings were held
with Independent External Monitors (IEMs) for discussions
on procurement and contract related issues. During the
period, IEMs held 1 (one) Review meeting wherein the orders
covered under Integrity Pact were reviewed.

Cyber Security

During the year, the IT department completed several
strategic initiatives aimed at enhancing digital capabilities,
strengthening cybersecurity and improving employee
experience across the organization.

•    A hybrid mobile application was developed and launched
for Android & IOS, to provide employees with seamless
access to key services and information, self-service digital
platform for claims / reimbursements, improving workforce
connectivity and productivity across locations and devices.

•    In alignment with its commitment to health and safety, your
Company introduced a dedicated mobile application, aimed
at improving safety in all work areas. The mobile application
facilitates real-time incident reporting, emergency response
coordination and dissemination of safety alerts, thereby
enhancing overall workplace safety and preparedness.

•    Considering the rapidly evolving cybersecurity landscape,
your Company implemented a range of fortification
measures to protect critical assets and data including
network segmentation, deployment of EDR, phasing out of
legacy systems & cloud backup systems.

•    Simplification & automation of business processes have been
carried out by integrating the ERP System with external
platforms including GeM, GST, TreDS, IIG, Banking
Gateway/CMP, NeSL.

Digital Culture

Your Company has undertaken the following initiatives

while transforming to digital culture:

•    SAP ERP is used as the enterprise software for
core business.

•    E-Procurement of products and services is carried out
through a common portal.

•    Email, Intranet, SMS services help for dissemination and
Virtual Private Network (VPN) has enabled extended
office connectivity.

•    Video Conferencing, Collaboration tools and virtual
meetings are being conducted with distant Business units.

•    Digitisation of Agenda of Board & its
Committee Meetings.

•    Pro-Active and Digital Initiatives like E-office,
Document Management System and E-payments
have ensured digitization of documents and paperless

• Data Logistics Management System has been implemented
at Talabira Mines for coal sales, ensuring enhanced
transparency through automated weighment and integrated
with portals of Government of Odisha and SAP.

These initiatives reflect our Company’s continued investment
in building a secure, agile and future-ready digital
environment that supports both organizational goals and
employee empowerment.

processes. These have simplified e-governance by promoting
in more effective and transparent processes.

•    Supported by a robust network infrastructure with the proj ect
sites connected by MPLS, Hyper Converged Infrastructure
for Servers, your Company is in the process of embracing
new technological platforms to make the infrastructure more
robust and seamless.

•    Your Company has taken measures to maintain Inventory
of all Critical Information assets with risk Assessment and
Business Impact Analysis and Contingency plan for IT
systems for strengthening Cyber Security of the organization.

•    The digitization efforts have been a definitive step towards
making the internal processes robust and unified which is
contributing immensely towards addressing the Environment
Social Governance (ESG) parameters for the Company.

•    Digital Logistic Management System (DLMS) implemented
and linked it with SAP Data (Sales).

Citizen's Charter

Your Company maintains Citizen's Charter, setting out the
details of clients, customers under different heads, different
system of redressal of grievance etc., and the same is
regularly updated.

Conservation of Energy, Technology Absorption and
Foreign Exchange Earnings and Outgo

The particulars required under Section 134(3)(m) of the
Companies Act, 2013 regarding conservation of energy,
technology absorption and foreign exchange earnings and
outgo are furnished in Annexure-II.

Management Discussion & Analysis Report and
Report on Corporate Governance

The Management Discussion & Analysis Report is furnished
in Annexure-III. The Report on Corporate Governance
on the compliance of Corporate Governance conditions
stipulated by SEBI (Listing Obligations and Disclosure
Requirements) Regulations, 2015 and the DPE guidelines on
corporate governance is furnished in Annexure-IV.

The Auditors' Certificate on the compliance of above
Corporate Governance Conditions is furnished in
Annexure — V.

 

Centralized Payment Process of Stores and Spares

In your Company, the respective unit account centre except
for the materials purchased by Permanent Central Stores
(PCS) and Mines Sub Stores (MSS) carried out payment for
spares and other materials purchased by units. For PCS and
MSS, accounts centres of Material Management Complex
(MMC) and Mine I carried out the payment, respectively.
Thus, the centralised payment implemented in March, 2024
has helped in controlling the payments and reducing the time
taken for making the payments.

Compliance Monitoring

Your Company has set up a software based Legal Compliance
Management System (LCMS) for effectively monitoring
and ensuring compliances of legal provisions applicable to
the Company.

Corporate Social Responsibility

•    Your Company, as a socially responsible corporate
citizen, continues to carry out developmental works in the
surrounding villages, right from its inception, focusing on
the socio economic development of the operating regions for
achieving inclusive & sustainable growth.

•    Your Company is adopting a Corporate Social
Responsibility Policy covering the various sectors of
sustainable socio-economic development. Your Company
focuses on healthcare, education, sanitation, safe drinking
water, hunger, poverty and malnutrition eradication,
women empowerment, gender equality, environment
sustainability, rural sports, protection of National Heritage,
Arts and Culture, Rural Development, Water Resource
Augmentation. The funds utilised for the CSR projects,
programs and activities selected for implementation are as
per the CSR Policy of the Company which is available in
the website in the following link https://www.nlcindia.in/
new_website /index.htm. During the Financial year 2024-25,
your Company spent ? 48.63 Crore (including ?1.44 Crore
for EC Compliance) towards CSR initiatives exceeding the
statutory requirement of 2% of the average net profits of the
Company for the last three years.

•    The details of specific CSR Projects undertaken in
compliance with Section 135 of the Companies Act, 2013
are provided in Annexure-I to this Report.

Compliance under the Right to Information
Act, 2005

Your Company continues to ensure full compliance with the
provisions of the Right to Information Act, 2005 by facilitating
transparency and timely response to information requests.
Central Assistant Public Information Officers (CAPIOs)

representing different functional areas, along with the
Nodal Officer, Central Public Information Officer (CPIO),
Appellate Authority and Transparency Officer, have
been nominated to address queries and appeals in a
time-bound manner.

During the year 2024-25:

•    RTI Applications: A total of 566 applications comprising
3,340 queries were received, of which 548 applications
were disposed of within the prescribed timelines. The
remaining 18 applications were under process, well within
the mandatory period.

•    First Appeals: 102 First Appeals were received and
disposed of in accordance with the provisions of the Act.

•    Second Appeals: Hearings were attended in 21 cases before
the Central Information Commission (CIC), with favourable
decisions for your Company in 20 cases.

•    Third-Party Audit: The third-party RTI compliance
audit for 2023-24 was carried out by Indian Maritime
University (IMU), Chennai, and the audit report along with
the certificate has been hosted on the RTI page of your
Company’s website.

Compliance under Public Procurement Policy

In line with the Public Procurement Policy notified by the
Ministry of Micro, Small and Medium Enterprises (MSMEs),
your Company achieved total procurement of 54.72% from
MSMEs during the year 2024-25, significantly exceeding the
prescribed target of 25%.

Your Company has also been onboarded on the Trade
Receivables e-Discounting System (TReDS) platform,
which facilitates timely realization of trade receivables of
MSMEs through financing by multiple financiers, thereby
enhancing their liquidity. The Company remains committed
to supporting MSMEs by ensuring prompt payments and
expanding procurement opportunities in accordance with
Government of India guidelines and the Department of Public
Enterprises (DPE) directives.

Procurement through GeM Portal

During the year 2024-25, your Company procured goods and
services valued at H 1,967.55 Crore through the Government
e-Marketplace (GeM) Portal, in line with the directives of the
Government of India to promote transparency, efficiency and
competitiveness in public procurement.

Continuous efforts are being made to enhance procurement
through GeM by leveraging its various functionalities,
including the “Custom Bid” facility introduced in 2020,
enabling the Company to source customized requirements
while ensuring wider vendor participation and cost efficiency.

Statutory Disclosures under the Companies Act, 2013
and SEBI (LODR) Regulations, 2015

Annual Return

In accordance with the Companies Act, 2013, the annual
return in the prescribed format is available https://www.
nlcindia.in/investor/AR2023-24.pdf

Particulars of Contracts or Arrangements with
Related Parties

All related party transactions entered into by the Company
during the year 2024-25 were in the ordinary course of the
business and are on an arm’s length basis. The disclosure of
related party transactions as required under Section 134(3)(h)
of the Companies Act, 2013 in Form AOC 2 is not applicable
to your Company. Members may refer to note no. 40 to the
financial statement which sets out related party disclosures
pursuant to Ind AS-24.

Declaration by Independent Directors

Pursuant to the provisions of Section 149(6) of the
Companies Act, 2013 and Regulation 25(8) of the SEBI
(Listing Obligations and Disclosure Requirements)
Regulations, 2015, the Independent Directors of the Company
have submitted declarations confirming that they meet the
criteria of independence prescribed under the Act and the
SEBI (LODR) Regulations.

Further, all Independent Directors have confirmed
that their names have been included in the database of
Independent Directors maintained by the Indian Institute of
Corporate Affairs, as required under Rule 6 of the Companies
(Appointment and Qualification of Directors) Rules, 2014.

Particulars of Employees

Pursuant to the provisions of Section 197(12) of the
Companies Act, 2013 read with Rule 5 of the Companies
(Appointment and Remuneration of Managerial Personnel)
Rules, 2014, every listed Company is required to disclose,
inter alia, the ratio of the remuneration of each Director to the
median remuneration of employees and details of employees
receiving remuneration exceeding the limits as prescribed in
the Directors’ Report.

However, as per notification dated 05^th June, 2015 issued by
the Ministry of Corporate Affairs, Government Companies
are exempted from the applicability of Section 197 of the
Companies Act, 2013. Accordingly, such particulars are not
included as part of this Report.

Disclosures with respect to Demat Suspense Account/
Unclaimed Suspense Account in terms of SEBI (Listing
Obligations and Disclosure Requirements) Regulations,
2015.

As on 31^st March, 2025, there were 1200 shares pending
unclaimed in the Demat Suspense Account/unclaimed
Suspense Account.

Material changes affecting financial position occurring
between the end date of Financial Year and the date of
the Report.

There are no material changes affecting the financial position
of the Company between the end of the Financial Year and
the date of this Report.

Sexual Harassment of Women at Workplace:

In accordance with the provisions of the Sexual Harassment of
Women at Workplace (Prevention, Prohibition and Redressal)
Act, 2013 and the Rules framed thereunder, your Company
has in place a robust policy and mechanism to prevent,
prohibit and redress complaints of sexual harassment at the
workplace. An Internal Complaints Committee (ICC) has
been constituted at the Corporate Office and all major Units/
Projects to provide a safe and secure working environment
for women employees and contract personnel.

The ICCs are empowered to receive and investigate complaints
in a fair and impartial manner, ensuring strict confidentiality
and adherence to statutory timelines. Awareness programmes
and training sessions on prevention of sexual harassment are

conducted periodically across the organisation to promote a
culture of respect and inclusion.

During the Financial Year 2024-25:

(a)    Number of complaints received: 4

(b)    Number of complaints disposed of: 4

(c)    Number of cases pending for more than 90 days: NIL

Maternity Benefit to Women employees

The Company has duly complied with the applicable
provisions of the Maternity Benefit Act, 1961 and the rules
made thereunder. The Company ensures that all eligible
women employees with less than two surviving Children are
granted upto 180 days of Maternity Leave, flexible Nursing
Breaks and other prescribed entitlements as per Maternity
Benefits Act, 1961. The Company is committed towards
fostering a supportive work environment that promotes the
health, safety and welfare of its women employees.

AUDITORS:

Statutory Auditors

In accordance with the provisions of Section 139 of the
Companies Act, 2013, the Comptroller and Auditor General
of India (C&AG) appointed M/s. Sundaram & Srinivasan,
Chartered Accountants, and M/s. Chaturvedi & Co. LLP,
Chartered Accountants, as the Joint Statutory Auditors of
the Company for the Financial Year 2024-25.

The Board of Directors, on the recommendation of the
Audit Committee, has fixed the Statutory Audit fees at
H 45.00 lakh plus applicable taxes for FY 2024-25, to be
shared equally between the Joint Statutory Auditors.

The Board and the Audit Committee review the Auditors’
findings, management responses and action taken reports to
ensure that appropriate remedial measures are implemented
in a timely manner.

Branch Auditors

In accordance with Section 143(8) of the
Companies Act, 2013, and as appointed by the C&AG,
the following firms were engaged as Branch Auditors for
FY 2024-25:

•    M/s. N. Sarda & Associates, Chartered Accountants,
appointed for auditing the Barsingsar Branch. The Board
of Directors fixed the Branch Audit fees at H 5.00 lakh plus
applicable taxes.

•    M/s. K. D. Lath & Co., Chartered Accountants, appointed for
auditing the Talabira Branch. The Board of Directors fixed
the Branch Audit fees at H 5.00 lakh plus applicable taxes.

The Board of Directors and the Audit Committee, review their
reports, and ensure that any observations or recommendations
are acted upon promptly to maintain the integrity of financial
reporting and compliance at the branch level.

Secretarial Auditors

In accordance with the provisions of Section 204 of the
Companies Act, 2013 and the rules made thereunder,
the Board of Directors, on the recommendation of the
Audit Committee, appointed M/s. D. Hanumanta Raju & Co.,
Practicing Company Secretaries, as the Secretarial Auditor of
the Company for the Financial Year 2024-25.

The Secretarial Audit Report for the Financial Year
2024-25, along with the Management’s reply to the
observations of the Secretarial Auditors, forms part of
this Report and is annexed hereto as Annexure—VI. The
Secretarial Audit Reports of the Subsidiary Companies are
also appended to the said Annexure.

The Secretarial Audit Report confirms that the Company
has complied with the applicable provisions of the
Companies Act, 2013, the Securities and Exchange Board
of India (Listing Obligations and Disclosure Requirements)
Regulations, 2015, and other relevant laws, to the extent
applicable, and that there are no material qualifications,
reservations, or adverse remarks, except as stated in the
said report.

Cost Auditors

Pursuant to the provisions of Section 148 of the
Companies Act, 2013, read with the Companies (Cost Records

and Audit) Rules, 2014, the Company has duly maintained
the prescribed Cost Accounts and Records for its Mines and
Power Stations.

The Board of Directors, on the recommendation of the
Audit Committee, appointed M/s. R.M. Bansal & Co.,
Cost Accountants, Kanpur (Firm Registration No. 000022),
as the Cost Auditors of the Company for the Financial
Year 2024-25, to conduct the audit of the aforesaid units.
The remuneration payable to the Cost Auditors for the
FY 2024-25 was ratified by the Members at the
68^th Annual General Meeting of the Company held on
25^th September, 2024.

The Board of Directors and the Audit Committee review
the Cost Audit Reports for the Financial Year 2023-24
and it was filed with the Ministry of Corporate Affairs on
28^th August 2024, within the prescribed due date.

Comments of the Comptroller and Auditor General
of India (C&AG)

In terms of Section 143(6)(b) of the Companies Act, 2013, the
comments of the Comptroller and Auditor General of India
(C&AG) on the Financial Statements of the Company for the
year ended 31^st March 2025 form part of this Annual Report
and are annexed hereto as Annexure—VIII.

Adequacy of internal financial controls with
reference to the Financial Statements

Pursuant to the provisions of Section 134(5)(e) of the
Companies Act, 2013, your Company has laid down internal
financial controls to be followed by the Company and such

controls are adequate and were operating effectively as at
31^st March, 2025. The internal control framework has
been designed and implemented considering the essential
components of internal control as stated in the Guidance
Note on Audit of Internal Financial Controls Over Financial
Reporting issued by the Institute of Chartered Accountants
of India (ICAI). These controls ensure the orderly and
efficient conduct of business, including adherence to the
Company’s policies, safeguarding of assets, prevention and
detection of frauds and errors, accuracy and completeness
of accounting records, and timely preparation of reliable
financial information.

The Board of Directors, through its Audit Committee,
exercises oversight of the adequacy and effectiveness of the
internal financial controls. Periodic internal audit reports,
management reviews and compliance reports are placed before
the Audit Committee, which monitors the implementation
of audit recommendations and ensures compliance with the
provisions of the Companies Act, 2013, the SEBI (Listing
Obligations and Disclosure Requirements) Regulations, 2015,
and other applicable laws.

Directors' Responsibility Statement as per Section
134(3)(c) & 134(5) of the Companies Act, 2013.

The Board of Directors declares that:

a.    in the preparation of the annual accounts, the applicable
accounting standards had been followed along with
proper explanation relating to material departures;

b.    the Directors had selected such accounting policies
and applied them consistently and made judgement and
estimates that are reasonable and prudent so as to give a
true and fair view of the state of affairs of the Company
at the end of the financial year and of the Profit and Loss
of the Company for that period;

c.    the Directors had taken proper and sufficient care for
the maintenance of adequate accounting records in
accordance with the provisions of the Companies Act,
2013 for safeguarding the assets of the Company and for
preventing and detecting fraud and other irregularities;

d.    the Directors had prepared the annual accounts on a
going concern basis;

e.    the Directors, had laid down internal financial controls
to be followed by the Company and that such internal
financial controls are adequate and were operating
effectively; and

f.    the Directors had devised proper systems to ensure
compliance with the provisions of all applicable laws and
that such systems were adequate and operating effectively.

BOARD OF DIRECTORS

Appointment

Details of appointment of Directors on the Board of the
Company are as under:

•    Dr. Vasant Ashok Patil has been appointed as Independent
Director w.e.f. 28^th March, 2025.

•    Shri Pradeep Kumar Saraogi has been appointed as
Independent Director w.e.f. 28^th March, 2025.

•    Shri M.T. Ramesh has been appointed as Independent
Director w.e.f. 28^th March, 2025.

•    Shri Sanjeev Kumar Kassi, Joint secretary, Ministry of Coal,
has been appointed as Government Nominee Director w.e.f.
3^rd April, 2025.

•    Shri Sanoj Kumar Jha, Additional Secretary, Ministry of
Coal, has been appointed as Government Nominee Director
w.e.f. 9^th May, 2025.

Cessation

The following Directors relinquished from the Board of
Directors of the Company:

•    Shri K. Mohan Reddy ceased to be Director (Planning &
Projects) w.e.f. 01^st June, 2024 due to superannuation.

•    Prof. Nivedita Srivastava, Shri Prakash Mishra and
Shri Subrata Chaudhuri ceased to be Independent Directors
w.e.f. 1^st November, 2024 on completion of tenure.

•    Smt. Vismita Tej, Additional Secretary, Ministry of
Coal ceased to be Part-time Official Director, w.e.f.
3^rd April, 2025 due to change in nomination.

•    Shri Sanjeev Kumar Kassi, Joint Secretary, Ministry of Coal
ceased to be Part-time Official Director, w.e.f. 1^st May, 2025
due to change in nomination.

Your Directors wish to place on record their whole-hearted
appreciation for the valuable guidance and services rendered
by them during their tenure as Directors on the Board of
the Company.

Key Managerial Personnel:

The following changes took place in the Key Managerial
Personnel of the Company during the year under review:

•    Shri R. Udhayashankar was relieved from the position of
Company Secretary & Compliance Officer of the Company
with effect from 11^th February, 2025, consequent to
his resignation.

• Shri Prashant Vinay Kaushik was appointed as Company
Secretary & Compliance Officer of the Company w.e.f.
11^th February, 2025.

Further, pursuant to Section 152 of the Companies Act, 2013,
Shri Samir Swarup and Shri M. Venkatachalam, Directors
will retire by rotation at the ensuing Annual General Meeting
of the Company and being eligible offer themselves for the
re-appointment.

Reporting of Frauds by Auditors

During the year under review, the Statutory Auditors, Cost
Auditors and Secretarial Auditor have not reported any
instances of frauds committed in the Company by its Officers
or Employees to the Audit Committee under section 143(12)
of the Companies Act, 2013.

Acknowledgement

The Board of Directors of your Company places on record its
sincere appreciation for the continued support and guidance
extended by the Ministry of Coal, Ministry of Power,
Ministry of New and Renewable Energy, Ministry of Finance,
Ministry of Environment & Forest and Climate Change,
Ministry of Mines, Ministry of Personnel, Public Grievances
and Pensions, Ministry of Jal Sakthi, Ministry of Industry,
Ministry of Labour and Employment, Ministry of Railways,
Ministry of Heavy Industries, Ministry of Road Transport and
Highways, NITI Aayog, DIPAM, DPE, Central Electricity
Authority, Central & State Government Departments, Central
& State Electricity Regulatory Commissions, Andaman &
Nicobar Islands Administration, State Electricity Boards and
beneficiaries of Tamil Nadu, Andhra Pradesh, Telangana,
Karnataka, Kerala, Uttar Pradesh, Gujarat, Odisha,
Puducherry and Rajasthan and also the Joint Venture Partners,
viz., Tamil Nadu Generation and Distribution Corporation

Limited (TANGEDCO), Uttar Pradesh Rajya Vidyut Utpadan
Nigam Limited (UPRVUNL), Coal India Limited, Mahanadi
Coalfields Limited and Hindalco.

The Board of Directors of your Company is pleased to
acknowledge with gratitude the co-operation and continued
support extended by the Governments of Tamil Nadu,
Rajasthan, Uttar Pradesh, Jharkhand, Assam, Gujarat
and Odisha, V.O.C. Port Trust, Tuticorin and the District
Administrations of Cuddalore, Tuticorin, Bikaner, Andaman
& Nicobar, Sambalpur, Jharsuguda, Kanpur Nagar, Latehar,
Angul and Dumka. The support and co-operation extended
by the Comptroller and Auditor General of India, Statutory
Auditors, Branch Auditors, Internal Auditors, Cost Auditor,
Secretarial Auditor, Director General of Mines Safety,
Directorate of Industrial Health & Safety, Boiler Inspectorates,
Chief Inspector of Factories, the Director of Boilers, Central
Pollution Control Board, State Pollution Control Board, Chief
Controller of Explosives, Chief Vigilance Commissioner,
Coal Controller Officers, Regional Labour Commissioner,
Regional Provident Fund Commissioner and other Statutory
Authorities, the Company’s Bankers, Financial Institutions
and KfW of Germany, Vendors, Suppliers, Contractors and
other valued Stakeholders need special mention and the
Directors acknowledge the same.

Your Directors also wish to place on record their appreciation
for the dedicated work put forth by the Employees at all levels.

The positive role played by the recognized Trade Unions and
Associations of the Engineers and Officers in maintaining
cordial industrial relations deserves special mention.

For and on behalf of the Board of Directors

Place : Neyveli    Prasanna Kumar Motupalli

Date : 4^th September, 2025 Chairman and Managing Director

---

Mar 31, 2024

It is indeed my proud privilege on behalf of our Board of Directors to present the 68^th Director''s Report on the business and operations of the Company together with the Audited Financial Statements for the year ended 31^st March, 2024 and the reports of Statutory Auditors and Comptroller and Auditor General (C&AG) of India.

Major Highlights

The Financial Year (FY) 2023-24 has been a year of good achievements for your Company with all-round performance. The significant highlights of achievements during the financial year 2023-24 are as follows:

S Recognitions	i
• NLCIL Mines has been awarded with 13 Five Star
Rating Awards for the exceptional performance
of Coal and Lignite mines. Mine-II and Mine-I	^ \ O			^___
adjudged as No.1 Mines in the country for the years	j f < yl® in			i
2020-21 and 2021-22.			BOB
• NNTPS (2x500 MW), TPS-I Expansion (2x210 MW)	mvCr-Qy * m ,	sD
and Barsingsar TPS (2x 125 MW) secured top 3	V *	•
positions on Plant Load Factor (PLF) among all	» .	i
operating Lignite based Power Stations in India.				A

Coal and Lignite Production	^
• All time Highest ever Coal & Lignite Production of 36.32 MT • Highest ever Coal Production of 12.64 MT from Talabira Mine, since inception	v \ - it*'' 1V 1	M •
• Highest ever Coal Dispatch of 11.76 MT from Talabira Mine, since inception		f s
• All time Highest Ever Lignite Production from Barsingsar Mines of 2.10 MT	/ y&r.y
• All time Highest Ever Lignite Production from Mine-IA of 5.59 MT		, m .x *>''., _ iT

II	1	Energy Generation • All time Highest Ever generation in a year TPS-II Expansion at 2,153.41 MU • Out of 27.10 BU Power generation, green power constitutes 2.10 BU • Highest ever power per day generation on 27.03.2024 by Andaman 20MW (BESS) plant since inception, i.e, 0.1 MU with CUF of 20.2%
a \\\\\\ >\ L m-u ¦—-

		|
I A . WT?		I
¦		Financial Highlights V	-
	ifi .1 i > V -	• CAPEX achieved during the year is ^4,270 Crore i.e.
1 W ¦£ l		148% against the MoU target of ^2,880 Crore.
li »/ . i		• Share price of the Company reached all time highest
ijmiil i 1 1		of ^311.80 per share on 16th July, 2024 with Market
		Capitalization of ^432 billion.
..... -1

j|P
Expansion and new ventures
•	Your Company has incorporated Two Wholly owned Subsidiary Companies Viz., NLC India Renewables Limited (NIRL) and NLC India Green Energy Limited (NIGEL) to pursue existing asset monetisation of RE projects and to undertake future renewable energy projects of the Company respectively.
•	Your Company won the North Dhadu (West) Coal Mine (3.0 MTPA) in Latehar district, Jharkhand under commercial coal mining auction. This is the first commercial coal mine won under competitive bidding.
•	PPA signed between NLC India Green Energy Limited & Gujarat Urja Vikas Nigam Limited (GUVNL) for 600 MW SPP in GSECL''s Solar Park at Khavda, Gujarat.
•	MoU signed with Rajasthan Rajya Vidyut Utpadan Nigam Limited (RVUNL) for formation of Joint Venture to setup Thermal and Solar power plants in Rajasthan
•	Letter of Award issued to Bharat Heavy Electricals Limited (BHEL) for Talabira Thermal Power Project (3x800 MW) EPC contract for a value of ^ 18,255 Crore.
•	Government of India has approved implementation of Pachwara South Coal Block (PSCB) Project by Neyveli Uttar Pradesh Power Limited (NUPPL), at an estimated capital cost of ^ 2,242.90 Crore.
•	Your Company successfully completed the long pending issue of permanent diversion of Paravanar river for advancement of Neyveli Mine II.
•	Emerged as successful bidder for Machhakata Coal Mine (30 MTPA) in Angul district of Odisha. This is the second commercial coal mine won under competitive bidding.

The details of profit earned for the financial year 2023-24 and appropriation of the same are as follows:

Particulars	Standalone		Consolidated
	2023-24	2022-23	2023-24	2022-23
Revenue from operations	10,518.64	12,955.00	12,999.03	16,165.24
Profit Before Tax	2,787.89	1,724.15	2,881.64	2,055.79
Tax Provision	941.31	475.91	1,014.32	630.66
Profit/(Loss) for the Period (PAT)	1,846.58	1,248.24	1,867.57	1,426.10
Appropriation
Transfer (to)/ from Interest Differential Fund Reserve	(1.98)	(4.33)	(1.98)	(4.33)
Transfer (to)/ from PRMA Reserve Fund	3.58	(14.29)	3.58	(14.29)
Transfer to Contingency Reserve	(10.00)	(10.00)	(10.00)	(10.00)
Dividend (Interim / Final )	(485.33)	(416.00)	(485.33)	(416.00)

V- The consolidated PBT and PAT for the year 2023-24 were ^2,881.64 Crore and ^1,867.57 Crore respectively as against ^2,055.79 Crore and ^1,426.10 Crore respectively in the year 2022-23.

Operational Performance

Mining - Lignite

Your Company is presently operating three opencast Lignite Mines at Neyveli in the State of Tamil Nadu and one opencast Lignite Mine at Barsingsar in the State of Rajasthan. The total mining capacity of all the Lignite Mines is 30.10 MTPA.

During the FY 2023-24, the total overburden (OB) removed in the Lignite Mines was 1380.63 Lakh Cubic Metre (LM³) as against 1453.17 LM³ removed in the year 2022-23. The Lignite Production in the year under review was 236.80 Lakh Tonne (LT) as against 235.30 LT during the year 2022-23.

The Raw Lignite Sales (RLS) to TAQA (IPP) and direct sales in the open market during the year 2023-24 was 15.74 LT & 6.86 LT as against 12.34 LT & 8.84 LT, respectively achieved in the year 2022-23.

Mining - Coal

Your Company is also operating open cast Coal mines in Talabira II & III at Odisha, with a mining capacity of 20.0 MTPA.

During the FY 2023-24, the total overburden (OB) removed in Coal Mines was 131.80 LM³ as against 80.08 LM³ in the year 2022-23.

The coal production achieved was 126.41 LT as against 100.26 LT during the year 2022-23, with an increase of 26.08%.

With respect to coal production in Talabira Mines, considering the high demand of coal especially for power generation, your Company has taken steps to achieve production of 126.41 LT as against the target of 120.00 LT.

Your Company is also taking all out efforts to augment the Coal production from Talabira Mine during the current year. This will not only provide fuel security to End Use Plants but also make available coal in the market. The coal produced is being supplied to one of the End Use Plant viz., NTPL''s Plant at Tuticorin, Tamil Nadu, which is a 89:11 Joint Venture of NLC India Limited (NLCIL) & Tamil Nadu Generation and Distribution Corporation Limited (TANGEDCO).

Ministry of Coal (MoC), Govt. of India on 19.02.2021 has enabled the Talabira II & III OCP Mine for sale of excess Coal directly after meeting the requirement of End Use Plant. Further, on 02^nd November, 2021, approval has also been granted by MoC for the sale of coal upto 75% of coal production till 31^st March, 2026 after meeting the requirements of End Use plants subject to certain conditions.

The Coal sales from the Talabira Coal Mines during the year under review was 117.62 LT as compared to 98.98 LT during the year 2022-23.

The total lignite and coal mining capacity of your Company is 50.10 MTPA.

if The coal production achieved was 126.41 LT as against 100.26 LT during the year 2022-23, with an increase of 26.08%.

Power

The total power generation capacity of the Company as on 31^st March, 2024, including renewables is 5,071.06 MW and for NLCIL Group is 6,071.06 MW (including the capacity of NTPL, the Subsidiary Company).

During the FY 2023-24, the total Power Generation (Gross) was 21,643.87 Million Units (MU) as against 24,152.81 MU, during the FY 2022-23. The Power Export during the year 2023-24 was 18,890.09 MU as against 21,281.99 MU in the year 2022-23. Out of the above, the Power Generation through Renewable Energy constitutes for 2,100.10 MU during the year as against 2,194.55 MU during the FY 2022-23.

The Power Surrender during the FY 2023-24 was 612.08 MU as against 622.28 MU during the FY 2022-23 out of which revenue earned from URS sales is ^ 21.32 Crore (Sale of 68 MU) as against ^ 94.64 Crore (Sale of 220.70 MU) during the FY 2022-23.

The total power generation of the NLCIL group including NTPL was 27,106.21 MU as against 30,082.80 MU during the FY 2022-23.

Productivity

The output per man-shift achieved during the year 2023-24 are given below:

Product	Unit	2023-24
Lignite	Tonne	17.33
Power	KwHr	36,478

Financial Performance

During the year 2023-24, your Company on a Standalone basis had registered a revenue from operations of ^10,518.64 Crore as against ^12,955.00 Crore during the year 2022-23. The Profit Before Tax (PBT) and Profit After Tax (PAT) for the year 2023-24 were ^2,787.89 Crore and ^1,846.58 Crore respectively, as against ^1,724.15 Crore and ^1,248.24 Crore respectively during the previous year 2022-23.

On a consolidated basis, the total revenue from operations for the year 2023-24 was ^12,999.03 Crore as against ^16,165.24 Crore in 2022-23.

Shareholding of Government of India (GoI)

The shareholding of the President of India as on 31.03.2024 in the Company is 72.20%. During the Financial year 2023-24, the promoter of the Company, The President of India, acting through Ministry of Coal, Government of India had offered for sale of upto 97,064,562 equity shares which is 7.00% of the total paid up equity shares of NLC India Limited, through OFS - Stock Exchange mechanism. Further, 43,713 shares representing 0.00436% of the paid-up equity share capital of the Company were also offered to the employees of the Company under OFS. Out of that 100 shares were accepted and allotted through the Employee OFS.

The number of shares and percentage of shares held by the Promoter before and after the disinvestment done through Offer for Sale were 109,82,21,224 equity shares (79.20% of the paid-up equity share capital) and 100,11,56,662 equity shares (72.20% of the paid up equity share capital) of the Company.

Dividend

For the year 2023-24, the Board of Directors of your Company had paid an Interim Dividend of 15% of paid up share capital (^ 1.50 Per

equity share). Further, your Board has also recommended a final dividend of 15% of paid up share capital (^1.50 per equity share) subject to the approval of the shareholders. The total dividend for the year 2023-24 including Interim Dividend already paid is 30% of paid up share capital and the same works out ^416.00 Crore.

Transfer to Reserve

There is no amount proposed to be transferred to any specific Reserves.

MOU Parameters

During the year 2023-24, 1951 vendors had sought permission to get registered in TReDS Portal compared to only 36 vendors during the previous year 2022-23 and your Company had accepted all the 1951 requests and all got registered in TReDS portal. So far, 1987 vendors have been registered in the TReDS portal. At the same time, your Company is also registered in TReDS portal to undertake the transactions facilitating 100% acceptance of invoices uploaded by the registered vendors through the portal.

PROJECTS UNDER IMPLEMENTATION

The details of projects under implementation are as under:

150 MW Hybrid (Solar Wind) RE Power Project (SECI)

Your Company had participated in the Wind & Solar Hybrid RfS floated by SECI and emerged as a successful bidder for 150 MW with a quoted tariff of ^2.34/Unit. LOA has been received from SECI to this effect and PPA has been signed.

For 50 MW Wind, LOA has been issued to INOX on 1^st February, 2024 and land lease agreement has been signed. For 100 MW Solar, LOA has been issued to Enerture Technologies Private Limited on 26^th February, 2024. Further activities are under progress.

510 MW Solar Power Project under CPSU scheme

Your Company has emerged as a successful bidder in IREDA CPSU scheme tender for setting up 510 MW Solar power project. The Project is being executed in 3 phases of 300 MW in Rajasthan, 200 MW in Gujarat and 10 MW in Neyveli for Smart City.

Your Company has issued LoA to Tata Power Solar Systems Ltd. (TPSSL) for 300 MW Solar Power Project at Barsingsar and erection, piling & fencing works are under progress. PPA signed with RUVNL for 300 MW. For remaining 200 MW, Consent received from Telangana State on 30^th June, 2023 and award has been placed on 16^th October, 2023 on successful bidder KOSOL Energie Private Limited.

Ground Mounted Solar Power Project (10 MW) at Neyveli was commissioned on 30^th October, 2023 at a capital cost of ^42.94 Crore.

GSECL - Solar Park, Gujarat (600 MW)

GUVNL floated tender for installation of 800 MW Solar power project with Greenshoe option at Gujarat State Electricity Corporation Ltd (GSECL) Solar Park, Khavda, Gujarat. Your Company has won 300 MW on 01^st July, 2023 and further, your Company accepted offer for additional 300 MW under Greenshoe option. Letter of Award (LoA)

was received on 03^rd August, 2023, procurement of BoS, Modules and other activities are under progress.

50 MW Solar at Mined out Area

For installation of 50 MW Solar power projects in Reclaimed area of Mine-II, Neyveli, LoA has been issued for module procurement & BoS package. Geo-technical investigation commenced & Infrastructure development work at site are under progress.

810 MW Solar in Rajasthan Area

Your Company has won 810 MW of Grid Connected Solar Power project under competitive bidding in the tender floated by RRVUNL for development in Pugal Solar Park, Bikaner, Rajasthan. Letter of Intent (LoI) was received from RRVUNL on 3^rd October, 2023. Pre tendering activities are under progress.

NLC Talabira Thermal Power Project (3 X 800 MW)-Phase-I

NLC Talabira Thermal Power Project (NTTPP), a coal based thermal power project of capacity 2400 MW with three units of 800 MW capacity each, is proposed to be set up at Jharsuguda & Sambalpur District in the State of Odisha, linked to the allocated captive mine Talabira II & III OCP at a total estimated project cost of ^ 27,212.96 Crore.

The proposed plant will be of state of the art Ultra Super-critical technology, compliant with latest emission norms. All statutory approvals for setting up the project including the Environmental Clearance have already been obtained. Power Purchase Agreement for the off-take of 2,400MW power from this project has already been signed with TANGEDCO (for 1,500MW), Puducherry DISCOM (for 100MW), KSEB Kerala (for 400MW) and GRIDCO Odisha (for 400MW).

The EPC contract has been awarded to BHEL on 12^th January, 2024. BHEL started topography survey and soil investigation in Project Area. The first Unit of the project is scheduled to be commissioned in 52 months from the date of issue of Notice To Proceed (NTP) and the other units with a gap of 6 months each. The land acquisition for the project is in progress.

Thermal Power Station II 2^nd Expansion

Thermal Power Station II 2^nd Expansion (TPS II SE) is a lignite based thermal power plant of capacity 1,320 MW with two units of 660 MW capacity each, proposed to be set up at Mudanai village (near Neyveli), Cuddalore District, Tamil Nadu which is linked to Lignite Mines of Neyveli. All necessary approvals for setting up the project including the Environmental Clearance have already been obtained. TANGEDCO has expressed their willingness to procure the entire 1320 MW from this proposed project. However, Ministry of Power (MoP) has allocated 1,081.69 MW to TANGEDCO and 40.31 MW to Puducherry Electricity Department. Land for the project is already in possession of your Company. Consent to Establish is also available. EPC Tender has been floated on 01^st October, 2022.

Meanwhile, there is no bid submission by the bidders due to issues in technology associate tie up for 660 MW supercritical lignite fired unit configuration. Hence, Initiatives for FR preparation is in progress for two units of 500 MW as per the directives of MoP.

Overburden (OB) to M-Sand

Your Company''s in-house research centre, CARD had earlier undertaken a research project jointly with IIT/Madras for conversion of OB materials into aggregates and that the preliminary study indicated that OB materials contain 40% to 70% sand & considerable quantity of clay. Board of Directors of your Company has approved setting up of M-Sand Beneficiation Plants at Neyveli in each Mine under Build Own & Operate (BOO) Model.

Considering the potential of aggregates (M-Sand) as mentioned above and its growing demand, one 0.42 MTPA Capacity plant was commissioned in Mine IA and trial run was taken on 01^st April, 2024. Govt. of Tamil Nadu accorded approval for the product quality on 31^st July, 2024. Permission from Govt. of Tamil Nadu for use of overburden is awaited.

Further, order has been issued for setting up of M-Sand Plant of 1 MTPA capacity in Mine-I on 12^th June, 2024. Commercial operation from this plant is expected from June 2025.

Lignite to Methanol

As a diversification initiative, your Company has taken initiative to set up the Lignite to Methanol (LTM) Project utilizing the lignite from Neyveli Mines with a plant capacity of 1,200 Tonnes per Day (TPD) on Lump Sum Turnkey (LSTK) mode, at an estimated cost of ^4,395 Crore.

Engineers India Limited (EIL) has been appointed as the Project Management Consultant for this Project. NLCIL has entered into engineering service agreement with licensor Air Products. GTE has been floated for LEPC-1 (Gasification Block) and for LEPC-2 (Methanol Synthesis Block). Tender for LEPC-1 was cancelled on 1^st April, 2024 due to significantly higher quote and retendering is under process. Bid for LEPC-2 was opened on 31^st May, 2024 and techno-commercial evaluation is under progress.

Mine-III (11.5 MTPA)

The project with a capacity of 11.50 MTPA encompassing a project area of 3,893 Ha is proposed to be commissioned to fuel

the requirement of TPS II 2^nd Expansion at an estimated cost of ^3,755.71 Crore. The block has a mineable reserve of 415 MT. The process of obtaining all necessary approvals for commencement of mining project is in progress. The project is expected to commence its operations by the year 2027. MoC has accorded In principal approval for the mining plan and Mine Closure Plan (Modification) of Mine-III on 23^rd July, 2024. Administrative approval from GoTN for Land Acquisition is in process.

Commercial Mining

North Dhadu (Western Part) Coal mine (3.0 MTPA)

Your Company won the bid for North Dhadu (Western Part) Coal Mine in Latehar District of Jharkhand @ 6% revenue sharing. The coal mine forms part of the North Karanpura coal field and it is having an area of 5.33 sq. km. It is fully explored having a geological reserve of 435 MT of G12 grade of coal.

Tentative capacity of the coal mine is 3.0 MTPA. Vesting Order issued on 14^th December, 2023. MoC issued notification u/s 4(1) of CBA(A&D), 1957 on 29^th May, 2024. Further activities of obtaining Statutory approvals, Preparation of Mine Plan & Mine Closure Plan, obtaining Environment Clearance are under progress. The coal will be sold on commercial basis.

Machhakata (Revised) Coal Mine (30.0 MTPA)

Your Company has participated and emerged as successful bidder for Machhakata (Revised) Coal Mine in Angul district of Odisha on 04^th July, 2024. The mine has a potential normative production capacity of 30.0 MTPA. Your company signed CMDPA with MoC on 15^th July, 2024. Geological Report & Mine Plan preparation works are under progress.

Consultancy Services for selection of MDO

Your Company has been awarded a work order for providing consultancy services to Uttar Pradesh Rajya Vidyut Utpadan Nigam Limited (UPRVUNL) for selection of MDO, supervision & monitoring of exploration and other site activities for its Saharpur Jamarpani Coal Block in Jharkhand. NLCIL floated tender for selection of MDO on 14^th September, 2023 & bid was opened on 22^nd April, 2024. As no bidders participated, the tender was cancelled and the same was intimated to UPRVUNL. Based on the request received from UPRVUNL, your Company suggested way forward and further activities are under progress in this regard.

Projects under formulation

The details of projects under formulation are as under:

Green Energy

Considering the thrust being given by the Government of India (Gol) for development of 500 GW of Renewable Energy (RE) capacity by 2030, your Company is exploring RE business as its next pillar of growth. Your Company has prepared its business plans to tap this opportunity appropriately while continuing work on operating its thermal fleet efficiently, economically and reliably to meet the growing energy needs of the country.

Corporate Plan 2030

Mining Projects

Your Company is presently operating three opencast lignite Mines at Neyveli in the State of Tamil Nadu and one opencast lignite Mine at Barsingsar in the State of Rajasthan. The total mining capacity of all the lignite Mines is 30.10 MTPA.

In lignite mining, your Company proposes to operate Mine-Ill (11.5 MTPA) in Neyveli, Tamil Nadu with TPS-II Second Expansion as linked end use plant and Bithnok Lignite Mine (2.25 MTPA) in Bikaner district of Rajasthan, thereby envisaging an aggregate lignite mining capacity of 41.35 MTPA by FY 2029-30.

Your Company has also started Coal mining operations in Talabira II & Ill Opencast Coal Mines at Odisha, with a mining capacity of 20.0 MTPA, from 26^th April, 2020.

In the Coal Sector, through NUPPL, its subsidiary, your Company is developing the Pachwara South Coal block in the state of Jharkhand, with a capacity of 9.0 MTPA with Ghatampur Thermal Power Plant (3 x 660 MW) as end use plant. Your Company has entered into commercial mining of coal through successful bids for North Dhadu (Western Part) Coal mine in Latehar District of Jharkhand with the tentative capacity of 3 MTPA and Machhkata (Revised) Coal Mine (30.0 MTPA) in Angul district of Odisha. Thereby envisaging an aggregate coal mining capacity of 62.0 MTPA including Talabira II & Ill OCP (20.0 MTPA). The Mining Capacity would reach 104.35 MTPA by FY 2029-30.

With the recent developments in Renewable energy sector and the strategic importance of the critical minerals required for RE, your Company is in the process of participating in upcoming auctions and envisions achieving a critical mineral mining capacity of

l. 0 MTPA by FY 2029-30.

Total CAPEX projected for FY 2025-30 for the mining projects is estimated above ^15,226 Crore.

Power Generation Projects

Your Company is currently operating five lignite based thermal power stations, four at Neyveli, in Tamil Nadu and one at Barsingsar, in Rajasthan, with an aggregate capacity of 3,640 MW. Your Company through NTPL, the Subsidiary, is operating one coal based thermal power plant of 1,000 MW (2 X 500 MW) capacity at Tuticorin, Tamil Nadu. On implementation of two Coal based Thermal Power Projects viz GTPP (NUPPL) of capacity 1,980 MW (3X660 MW), Talabira Thermal Power Project (Phase I & II) of capacity 3,200 MW (4 X 800 MW) and lignite based Thermal Power Project TPS II 2^nd Expansion of capacity 1,000 MW (2X500 MW), the power generation capacity would reach 10,020 MW. The Projected CAPEX for FY 2025-30 for the Thermal Projects is estimated to the tune of ^ 53,487 Crore.

On the Renewable front, by the year 2030, your Company plans to increase its capacity from 1,431 MW to 10,110 MW by implementing various Solar & Wind Projects. At present 2,110 MW of RE projects are under implementation. The Projected CAPEX for FY 2025-30 for Renewable Energy is ^44,918 Crore. The Total Installed Power Capacity would reach 20,130 MW.

Diversification Projects

Your Company has adopted the diversification strategy and has ventured into implementation of OB to M-Sand, Lignite to Methanol, Battery storage & Green Hydrogen. Further, EV Charging stations, Lignite to diesel, IGCC Technology projects are being taken up on Pilot Scale under Clean Energy. MoU signed with WAPCOS, for the purpose of carrying out collaborative technical services and advisories for development of various schemes of Pumped storage, Reservoirs/Storage, Run of River Hydro-Power Projects in India. Feasibility report of some of these projects are under preparation. The Projected CAPEX for FY 2025-30 for Diversification projects is

m, 223 Crore.

The total capital expenditure for mining, power generation and diversification businesses has been estimated to cross ^1.25 Lakh Crore by the year 2030.

SUBSIDIARIES /JOINT VENTURES:

Iju NLC Tamil Nadu Power Limited (NTPL)

^ A Joint Venture between NLCIL and TANGEDCO Tuticorin Power Plant (1000 MW) in Tamil Nadu

As Members may be aware that NTPL, the Subsidiary Company is operating a 1,000 MW coal based thermal power plant in Tuticorin in the State of Tamil Nadu. During the year 2023-24, the total Power Generation (Gross) of NTPL was 5,462.34 MU (excluding power surrender) as against 5,929.99 MU registered in the year 2022-23.

During the year ended 31^st March, 2024, NTPL registered a revenue from operations of ^2,739.05 Crore as against ^3,502.78 Crore registered in the year 2022-23. The Profit Before Tax & Profit After Tax for the year 2023-24 were ^201.16 Crore and ^129.16 Crore respectively as against ^433.08 Crore and ^278.65 Crore registered in the year 2022-23. Interim Dividend of ^0.30 (3%) per equity share was declared by NTPL Board for the FY 2023-24 and the same was paid on 20^th February, 2024.

Neyveli Uttar Pradesh Power Limited (NUPPL)

A Joint Venture between NLCIL & UPRVUNL ^ Ghatampur Thermal Power Project (GTPP) (1,980 MW) linked to Pachwara South Coal Block (9.0 huppi. MTPA) in Jharkhand

NUPPL, the Subsidiary Company is implementing the 3 x 660 MW Ghatampur Coal based Thermal Power Project (GTPP) at Ghatampur Tehsil, Kanpur Nagar District in the State of Uttar Pradesh at a project cost of ^19,406.12 Crore (RCE I). The project is expected to be commissioned during FY 2024-25.

This project is being monitored by MoC and at the apex level by the Office of Prime Minister and is considered as the signature project. The Board of NUPPL is taking all necessary steps to expedite the implementation of the Project.

NUPPL has signed a Power Purchase Agreement (PPA) with Uttar Pradesh Power Corporation Limited (UPPCL) for supplying 75% of the Power from the plant. In line with the revised power allocation by Ministry of Power, Gol, PPA for 492.72 MW power (24.88%) has been signed with APDCL on 13^th June, 2023.

The coal supply for the GTPP is linked to Pachwara South Coal Block (PSCB) which is in advance stage of obtaining necessary clearances/approvals for commencement of mining operations. Based on the Company''s request, CEA had recommended Coal India Limited (CIL) to supply 0.99 MT (0.33 MT for each unit) coal to GTPP to facilitate commissioning activities, trial run & achieving COD. Standing Linkage Committee (Long-Term) on 07^th March, 2024, recommended bridge linkage of 4.903 MT operational coal for FY 2024-25 from Coal India Limited.

The thermal project has achieved a CAPEX of ^1,909.49 Crore in the year 2023-24. The cumulative capital expenditure incurred since inception up to 31^st March, 2024 for the thermal project is ^16,781.32 Crore.

Pachwara South Coal Block (9.0 MTPA) in Jharkhand

NUPPL has been allotted Pachwara South Coal Block (PSCB), in the State of Jharkhand, with a normative capacity of 9.0 MTPA at an estimated cost of ^2,242.90 Crore. The Mining plan & Mine Closure plan of PSCB has been approved by MoC. Public Investment Promotion Board (PIB) Committee Recommended for implementation PSCB project at Capital Cost of ^2242.90 on 04.10.2023. The same was approved by Cabinet Committee on Economic Affairs (CCEA) on 24.04.2024. Environmental Clearances, Forest Clearances, Land Acquisition for coal evacuation route of PSCB and development of Rail Infrastructure for Coal Evacuation is under progress. The cumulative capital expenditure incurred up to 31^st March, 2024 is ^154.28 Crore.

| A % Coal Lignite Urja Vikas Private Limited (CLUVPL)

A Joint Venture Company between NLCIL & CIL

Your Company had entered into a Joint Venture Agreement with Coal India Limited (CIL) to implement conventional and non-conventional power projects by forming a JV Company with an equity participation of 50% each. The JV Company "Coal Lignite Urja Vikas Private Ltd" was incorporated on 10^th November, 2020.

The JV Company has received Project Management consultancy order from SECL on 12^th July, 2021 for developing 40 MW Solar Power Project at Bishrampur and Bhatgaon locations of SECL, Chhattisgarh State and activities are in progress.

MNH Shakti Limited- A Joint Venture Company

MSH

Mahanadi Coalfields Limited, your Company and Hindalco jointly formed MNH Shakti Limited with an equity participation of 70:15:15 to implement 20.0 MTPA Coal Mining Project in Talabira, in the State of Odisha. The Talabira II & Ill Coal Blocks allocated for this purpose have been cancelled pursuant to the judgement of Hon''ble Supreme Court of India and the Coal Mines (Special Provisions) Ordinance, 2014. The JV Company has been proposed for winding up and necessary formalities are underway.

| £k | NLC India Renewables Limited Wholly Owned Subsidiary

Your Company has incorporated NLC India Renewables Limited (NIRL), as its wholly owned subsidiary on 14^th June, 2023 to take over the existing renewable assets of your Company.

In this regard, your Company plans to consolidate almost all its Renewable Assets under its Asset Monetization plan and after receiving the requisite approvals from the Government and other statutory bodies your Company will process the transferring of RE assets to the NIRL for pursuing monetisation.

¹ YVs

NLC India Green Energy Limited Wholly Owned Subsidiary

Your Company has incorporated NLC India Green Energy Limited (NIGEL), as its wholly owned subsidiary on 13^th October, 2023 to carry out future Renewable Energy Projects of your Company. The subsidiary will focus specifically on upcoming Renewable Energy projects.

The subsidiary is expected to establish RE projects to the capacity of 6 GW by 2030. As an initial step, the following projects secured through various competitive bidding are proposed to be developed through NIGEL:

• NIGEL has signed Power Purchase Agreement with Gujarat Urja Vikas Nigam Limited (GUVNL) on 05^th March, 2023 for supply of 600 MW Solar Power for the span of 25 years.

• 810 MW Solar Power Project is going to be developed by NIGEL. Project is envisaged to be developed at RVUNL Solar Park, Pugal, Bikaner (Dist.) Rajasthan. Power offtake is fixed with RVUN for the span of 25 years.

Loan, Guarantees and Investments

Details of loans and investments covered under the provisions of Section 186 of the Companies Act, 2013 forms part of the Financial Statements.

Deposits

The Company has not accepted any deposits from the public during the year.

Bonds, Borrowing & Credit Rating

During the financial year 2023-24, your Company has not issued any Bonds.

Commercial Paper

During the financial year 2023-24, due to better fund management, sales bill discounting and increase in realisation has improved the liquidity position of the Company and hence, Company has not issued any commercial paper.

Sales Bill Discounting

During the financial year 2023-24, your Company has explored the Sales Bills Discounting facility available in the Banking System with recourse to your Company and discounted the power bills issued to DISCOMs. The total value of sales bills discounted during the year

under review was ^4,912.99 Crore. During the year under review, there were no instances of bankers recourse.

Credit Rating for Borrowings

During the year, your Company has retained AAA rating for Long Term Borrowings including issue of Bonds and A1 for issue of Commercial Papers from Credit Rating Agencies. The present Ratings are given below:

Sl No.	Rating Agency / Particulars	Rating Assigned
1	ICRA
	Non-Convertible Debentures - Secured - ^2,000 Crore	[ICRA] AAA (Stable)
2	CRISIL
	Working Capital Loan (State Bank of India)- ^5,000 Crore	CRISIL AAA/ Stable
	Non-Convertible Debentures (Issued amount-^2,175) -Unsecured - ^3,000 Crore	CRISIL AAA/ Stable
	NNTPS Loan (SIB ^ 581 Crore and Proposed ^ 1,078 Crore) - ^1,659 Crore	CRISIL AAA/ Stable
3	CARE Ratings
	Solar 500 MW (Axis Bank and Federal Bank -^ 371.69 Crore	CARE AAA; Stable
	NNTPS 1000 MW (Power Finance Corporation) - ^ 1,950 Crore	CARE AAA; Stable
	Commercial Paper - ^ 6,000 Crore	CARE A1
4	India Rating (Fitch Group)
	Solar 709 MW (State Bank of India) - ^ 1,658 Crore	IND AAA/ Stable
	Non-Convertible Debentures - Secured - ^ 2,000 Crore	IND AAA/ Stable
	Non-Convertible Debentures - Unsecured - ^2,175 Crore	IND AAA/ Stable
	Commercial Paper - ^ 6,000 Crore	IND A1
	Sales Bill Discounting -^ 6,000 Crore	IND A1
5	Infomerics Ratings
	Talabira Mine (State Bank of India) - ^ 1,260.44 Crore	IVR AAA/ Stable
6	Acuite Ratings & Research
	Solar 300 MW (IndusInd Bank) - ^ 1,000 Crore	ACUITE AAA/ Stable

Commercial

Power Dues Realisation:

• During the year under review, your Company had received an amount of ^9,754 Crore out of the total billed value of ^9,818 Crore for the FY 2023-24 working out to a collection efficiency rate of 99% apart from settlement of old dues through instalment scheme.

• The outstanding power dues including for the month of March 2024 invoices as on 31^st March, 2024 was ^4,632 Crore as against ^4,794 Crore for the corresponding period of the year ended 31^st March, 2023. The dues beyond the 45 days limit as on 31^st March, 2024 was ^3,174 Crore as against ^3,544 Crore for the corresponding period of the previous year ended 31^st March, 2023.

• Scheduling of power is being done in compliance with the MoP directives on LC - Payment priority mechanism.

Power Trading in Power Exchange

• During the year 2023-24, 68 MUs of Un-Requisitioned Surplus (URS) power was sold from your Company''s thermal power stations in different market segments of Power Exchange leading to a gross revenue addition of ^21.32 Crore. As per the CERC IEGC Regulation & MoP Electricity (Late Payment Surcharge and Related Matters) Rules, 2022, gains earned from sale of such URS power is being shared with the beneficiaries.

• Whenever opportunity comes, your Company is continuously trading the surrendered power from its thermal stations in DAM & RTM market segment of Indian Energy Exchange (IEX) based on availability of surplus lignite & technical capabilities of thermal stations. During the year, the final power surrender for all power stations was 491.79 MU as against 621.90 MU in the year 2022-23.

• Your Company has also traded 174.25 MU of power in FY 202324 as against 138.65 MU in the year 2022-23 under Trading License which includes sale & purchase of power for various grid connected entities through Power Exchange.

Regulatory affairs

• During the year 2023-24, CERC has issued Provisional tariff order for Neyveli Mines, Tariff orders for BTPS, Barsingsar Mines & Andaman Solar power project (2019-24), Trued-up order for BTPS, Review Petition for Barsingsar Mines for the year 2014-19.

• Your Company has filed Review of Order in Truing up of BTPS for the year 2014-19 and Compensation for deemed generation for Andaman Solar Power Project.

• Your Company has filed two Interlocutory Applications before CERC on Lignite Transfer Price on the similar issue of O & M expenditure in Mines based on the APTEL Judgement for the period 2009-14 and 2014-19 and CERC has issued Orders on 14^th March, 2024 and 19^th May, 2024 respectively.

CERC Regulations

• Central Electricity Regulatory Commission issued (Terms and Conditions of Tariff) Regulations, 2024 on 15^th March, 2024, which are applicable for the period 01^st April, 2024 to 31^st March, 2029. The tariff of electricity generated from your Company''s

stations and the Input Price of Coal and Lignite excavated from NLCIL Mines would be determined by CERC based on these Regulations for the above-mentioned period.

• Central Electricity Regulatory Commission (Indian Electricity Grid Code) Regulations, 2023 has been issued on 11^th July, 2023. The operations and scheduling of thermal stations are being carried out based on these regulations.

Interaction with Stakeholders

During the year, your Company has taken various measures including conducting of Investors conferences, Roadshows domestically and internationally, Periodical Investor Calls, Customers and Vendors Meet and regularly updating the Company''s developments and Plans through Press, Business News Channels & Social Media interactions, which has resulted in strengthening the confidence of Stakeholders.

Sustainability Development Measures

Your Company has been diligently aligning its operations with the Ministry of Coal''s Sustainable Development Cell (SDC) directives, demonstrating a strong commitment to environmental sustainability. Your Company has made significant progress in bio-reclamation, exceeding its FY 2023-24 target of 194 hectares by reclaiming 202.76 hectares of land and initiating efforts for FY 2024-25. Your Company is also focused on notifying its non-forest afforested lands under accredited compensatory afforestation, with 397.62 hectares identified for certification for Neyveli Mines.

Mission life activities are a key focus, with mass tree plantation drives conducted during significant environmental events, such as World Earth Day and World Environment Day.

Your Company has also partnered with expert institutions for ecological studies of reclaimed areas, avian diversity, the development of a deer park management plan, bio-mass growth and research on suitable tree species for mine spoils. Additionally, a detailed study on mine-water potential for community use has been completed, highlighting Your Company''s contributions to water resource management. Based on the study, Secretary, MoC has informed the Chief Secretary, Govt. of Tamil Nadu regarding the active contribution of Your Company towards water resource management and sustainability in the region along with community betterment.

Your Company is repurposing mined-out lands for renewable energy projects, with plans to install a 50 MW solar PV system on 85 hectares of de-coaled land.

Environment Compliance Measures

Your Company practices and promotes the best Environment Management Plan (EMP) since its inception and is committed to environment friendly mining and power generation. The environment policy of your Company is in line with the Vision and Mission Statement.

Your Company has constituted Environmental Monitoring System through Environment Cell constituted at Unit level and at Corporate Level to monitor & adhere to the Environmental compliances of Environmental Clearance (EC) and Forest Clearance (FC) conditions. In this connection your Company is also sending the monthly compliance status of EC/FC conditions to the concerned authorities as per the guidelines.

Your Company continued to undertake mass tree plantations during the year for the benefits of slope stabilisation of the Mines Overburden dumps in order to convert the Mine spoil into cultivable

soil making it fit for habitation. The Company started investing in Eco-care since its inception leading to a development of a lush habitat which has been converted into Eco-parks & Eco tourism locations. The greenbelt developed also acts as barrier to arrest the air pollution and prevents soil erosion besides Sequestration of CO₂ in the atmosphere.

The units have installed dust suppression mechanisms such as water sprinklers, spray guns, fog cannons etc. to control the fugitive dust. The Ambient Air Quality (AAQ) is being monitored regularly in the surrounding villages and is well within the prescribed norms.

Consequent to the Amendments of Environment (Protection) Act, 1986, the norms for water consumption and emissions from Power Plants [Particulate Matter (PM 2.5 & PM10), Sulphur dioxide (SO₂), Oxides of Nitrogen (NOx) & Mercury (Hg)] have been made stringent for the existing as well as new Thermal Power Plants. In this regard, installation of Flue Gas De-sulphurisation (FGD) Systems is in progress

Insurance

During the year, your Company had taken Mega Insurance Policy for the Assets and Stocks of Production Units viz. Mines, Thermals & Renewable Energy (RE). It broadly covers, Material damage (MD) of all Mine assets and Material damage (MD), Machinery Breakdown (MBD), Fire Loss of Profit (FLOP) & Machinery Loss of Profit (MLOP) of all Thermal & RE assets. Assets of Service units are covered under Standard Fire and Special Peril Policy (SFSP) which also cover Electronic Equipment Insurance (EEI), Transit Insurance, Public Liability Industrial Risk Insurance.

Land Acquisition and Rehabilitation

& Re-settlement

Land Acquisition and R&R Policy

Your Company takes care of the Project Affected Persons (PAPs) through appropriate R & R Policy measures and the trauma of displacement is thereby minimised. Your Company follows the guidelines issued by the Government of India, from time to time on R&R for the on-going projects. Apart from development of Re-settlement Centres (RCs) in the Project vicinity, these centres are being provided with good infrastructure facilities. As a result, the eligible project affected families have smoothly re-settled in these RCs. Apart from the rehabilitation measures, legal compensation with enhanced compensation for loss of assets as directed by the appropriate Government have been provided with the co-operation of the District administration. Peripheral developmental works viz., formation and improvement of existing village roads, skill development programmes for PAPs have been carried out during the year.

A Grievance redressal centre for addressing the grievances of the project affected persons has also been formed and functioning. Your Company is providing enhanced land compensation to the awardees based on the period of passing of award through payment of ex-gratia and also through Lok Adalats conducted on regular basis based on the applications received from the land owners who have handed over their lands and houses for the projects.

Your Company is providing one year PG courses for the PAPs having Engineering and Diploma qualifications through National Power Training Institute (NPTI). 259 PAPs as SME operator assistant trainees and Mines Support service trainees were selected under three years training scheme. It is also proposed to provide training to PAPs in coordination with leading coaching institute for appearing in competitive exams like TNPSC/SSC/UPSC etc. and other advanced technical trainings.

Your Company is providing enhanced R&R and Land Compensation based on the Provisions for compensation and R&R as per Schedule-I, II & III of "Right to Fair Compensation and Transparency in Land Acquisition Rehabilitation and Resettlement Act - 2013" (RFCTLARR) with effect from 01^st January, 2014.

Your Company has successfully carried out diversion of Paravanar river including taking possession of more than 500 Ha of acquired land in Neyveli mines which is pending more than a decade resulted in sustainable operations of mines for the balance life.

Your Company is also taking all out efforts with State and District Administration for acquiring critical land required for future mining operations of Neyveli Mines.

Awards & Recognition:

As a result of continued environmental management measures undertaken, your Company has received many awards for maintaining better environmental management practices. In recognition of its various activities, your Company, has been conferred with the following awards during the year 2023-24:

	Winner of	GEEF Global Environment
	Award 2024	" in Platinum category.
				Your Company was conferred with the
Winner of Greentech Environmental Excellence Award 2023.	02	01	07	award for Best ESG Report for FY 2022-23 in the prestigious 11th Edition of "The Original National Awards for Excellence".
Winner under "Environment leadership"		TT!		Winner of Award for "Effective Fly
category for Greentech International EHS		1 ''iXi?	06	.................... Ash Management (<-500MW)" from
Award 2023.	03			MoEF&CC through Mission Energy Foundation for the year 2022-23.
		2 d	05	Gold Award in Environment improvement
Best ESG performance Award in Thermal				category in 14th Exceed Environment
Category - Transformance Forums at 3rd Summit & Awards 2023.	ESG			Conference 2023.

Category of students	Beneficiaries during AY 2023-24	Amount sanctioned
SC/ST	407	^111.20 Lakh
OBC (wards of Non-NLCIL employees)	1,000	^286.01 Lakh
Total	1,407	^397.21 Lakh

Scholarship Schemes and Tuition Fee Concession

Your Company provides educational assistance (scholarships) to the wards of employees belonging to General, SC/ST, OBC category and wards of Contract Workmen for pursuing higher studies (under graduate degree / diploma / professional courses) till the duration of the course subject to a maximum of five years.

Research and Development (R&D)

Centre for Applied Research & Development (CARD) is the in-house R&D Centre of the Company and has been recognized by the Department of Science & Technology. CARD has been granted NABL accreditation by National Accreditation Board for Testing and Calibration Laboratories (NABL) based on the International Standard ISO/IEC 17025:2017.

The major functions of CARD include:

Carrying out Science & Technology (S&T) Research Projects.		Technology development, patenting and commercialization based on the R&D and Pilot Plant outcome, Co-ordinating for S&T Projects undertaken by the Company, institutional services to students, special studies for operation & new schemes and new initiatives etc.				Rendering analytical services towards quality control of various products/materials used in mines, Power stations and other service units as well as outside agencies on chargeable basis.
If II °°i	/ YV jysT /	^ \ I
				1	)} (i		=^	VB
	(oj 7 I -1—1						i
					y
	Environmental monitoring,				R&D works on	lignite utilization,
	Pollution level measurements,				diversification, product development,
	Quality control Testing				by-product utilization, solid waste
	& Consultancy, Technical				management, wasteland reclamation,
	services.				Renewable energy, Clean Coal
					Technologies, introduction of real time
					monitoring facilities etc.

The total R&D expenditure, incurred as a group during the year 2023-24 was ^ 43.37 Crore.

Reservation of Posts

Your Company scrupulously follows the reservation policy applicable to SCs, STs and OBCs as prescribed in the Presidential Directives / GOI Guidelines. The group-wise representation of SC/ST/OBC as on 31^st March, 2024 stands as follows:

Group			Strength of SC/ST/OBC			% of SC/ST/OBC
		SC	ST	OBC	SC	ST	OBC
A	2,982	634	312	641	21.26	10.46	21.50
B	167	37	4	50	22.16	2.40	29.94
C	5,565	1,078	55	2,144	19.37	0.99	38.53
D	1,654	410	5	847	24.79	0.30	51.21
Total	10,368	2,159	376	3,682	20.82	3.63	35.51

*Strength of OBCs on rolls of NLCIL after reservation for OBCs came in to effect w.e.f. 08^th September, 1993.

However more than required percentage of employees (covered in the Central list of OBC category) have been recruited on the strength of BC category prior to reservation for OBCs came to effect and continue to be on the rolls of the Company.

Employees'' Welfare and Social Security Schemes

Educational facilities

Your Company is presently running 8 Schools with student strength of 4,291 nos. The schools admit children coming from peripheral villages, wards of employees, contract employees, daily wages workmen and others from economically weaker sections of society.

Educational Assistance	Beneficiaries during AY 2023-24	Amount Disbursed
General	251	^24.24 Lakh
SC/ST	323	^37.18 Lakh
OBC	616	^70.28 Lakh
Total	1,190	^131.70 Lakh

Besides these schemes, your Company presents cash award to meritorious wards of employees who secure 80% & above in CBSE and 90% & above in State Board 10^th& 12^th Std. exams.

In addition to the above, Your Company reimburses the tuition fees every year (ranging from ^15,440/- to ^43,350/- per annum) for students belonging to SC/ST/OBC category (predominantly hailing from the surrounding villages of your Company''s projects) studying in Jawahar Science College, Neyveli, patronised by your Company.

Human Resource Development

Your Company believes in its human assets who are the key performers driving the Company''s growth. Your Company provides a conducive working environment to its employees wherein they deliver their best potential.

Training

Your Company strongly believes that the pursuit of excellence can be achieved only through competency building, encouraging good work practices and enabling a learning culture. Learning and Development Centre (L&DC) continuously strives to harness the in-house talents by focusing on areas like emerging technology, environmental consciousness, structured on boarding and mentoring using varied modalities and blended learning opportunities.

For the persons employed in mines, Group Vestibule Training Centre (GVTC), Neyveli is conducting Basic/Initial training to get acquainted with mine environment before being employed at mines, Refresher Training to sharpen their skill/renew their work

experience once in five years and Special job specific training in operation of SME and CME.

Apprenticeship training is being provided as per guidelines of the Regional Directorate of Skill Development and Entrepreneurship, Chennai (RDSDE) and the Board of Apprenticeship Training (BOAT) of Southern Region, Chennai.

Industrial Relations

Your Company continued its faith in participative management and has a regular system of holding bipartite structured meetings with the Recognised Unions (collective bargaining agents) / Associations in addressing the common issues of the employees. The modified Certified Standing Orders of NLC India Limited has been published on 30^th November, 2023. In General, Industrial Relations scenario in your Company was cordial and no man hour was lost during the Financial Year 2023-24 due to industrial unrest.

Manpower

The total employee strength (including subsidiaries) stood at 10,368 as on 31^st March, 2024 as against 10,781 as on 31^st March, 2023.

Medical Facilities

Your Company''s health care model for protecting, preserving and promoting the health and wellbeing of workforce is a time tested one with proven results. Your Company believes that healthy workforce is the key driver of its economic wellbeing is supporting a sustainable health care model since instituting the Hospital in 1962. NLCIL Hospital - a secondary level medical facility with a bed capacity of 350 provides the following medical care facilities/ services to the villages in and around Neyveli also:

• Emergency care linked with Advanced Life Support ambulance services for inter-facility transfer of critically ill patients to higher centres.

• High End Cardiac Centre with State-of-the-art "Cath Lab Facility" was established in collaboration with Shri Kauvery Medical Care (India) Ltd., Trichy at NLC India Hospital, Neyveli. The centre is equipped to handle all medical emergencies with 25 bedded Cardiac facility. Procedures like coronary angiogram, coronary Angioplasty and other procedures can be carried out in this centre.

• 8 bedded emergency unit equipped with centralized oxygen and suction lines, bed monitors, devices and mini operation theatre is capable of handling all emergencies including trauma and industrial accidents.

providing certain facilities / amenities to PwDs to meet their requirements and enable them to effectively discharge their duties. The strength of PwDs as on 31^st March, 2024 stood at 203.

"SNEHA" Opportunity Services and School

Your Company implements various social welfare measures towards the cause and upliftment of the Physically Challenged Persons through Neyveli Health Promotion and Social Welfare Society (NHPSWS), "SNEHA" Opportunity Services and School both patronised by your Company. This School imparts education and training to mentally challenged children (77 children: Boys-58 & Girls-19) which includes training in vocations like arts & crafts, candle making, paper cup & cover making, carpentry, gardening, cooking and doormat weaving.

Health Promotion and Social Welfare Society (NHPSWS)

Through the society, Tricycles, Wheel chairs, Hearing aids etc. are distributed at free of cost to the disabled persons during Independence Day and Republic Day celebrations. The society runs retail outlet shops namely VAIGHAI.

Implementation of Official Language Act, 1963

Your Company has made all concerted efforts to promote the Official Language Implementation Policy in line with the provisions

• The Intensive care Unit has 9 beds equipped with Multipara monitors, defibrillators and three Ventilators to provide secondary level of care for all medical emergencies.

• Emergency care service is provided on 24 X7 basis. Patients are treated in various specialties that include General Medicine, General Surgery, Obstetrics & Gynecology, Pediatrics, Orthopedics, Ophthalmology, ENT, Dermatology, Chest Medicine, Psychiatry, Dental and Ayurveda Services.

• Out Patient Department (OPD) service is well supported by diagnostic facilities, pharmacy and other therapy.

• Two Renal Care Units (RCU) - RCU I run by the Company and RCU II through an outsourced facility, with a combined capacity of 28 beds provide hemodialysis service to chronic kidney disease patients.

• Surgical care services in General Surgery, Ophthalmology, ENT, Orthopedics, Obstetrics & Gynecology and Dental leveraging the two state of the art Theatre Complexes adequately staffed with anesthesiologists, OT Nurses and OT Technicians to support all major surgeries at secondary level.

• The ENT workstation to enhance the Diagnostic aspects of Ear, Nose & Throat at the Out Patient setup itself. It has another component, the video laryngoscope helps in visualization of voice box and for assessment of voice disorders difficulty in swallowing.

• Your Company has launched its latest Integrated Hospital Management System (IHMS) to manage various aspects of the daily operations.

In coordination with State health department, the following were

implemented for the benefit of the general public:

• Family Welfare Services for achieving fertility control among the local population.

• Universal Immunization programme for protecting children and adults against all infectious diseases.

• Integrated Counselling and Testing, Treatment facilities for HIV infected patients.

• Revised National Tuberculosis programme for prevention and treatment of TB among the local population.

• National Leprosy Control Programme for early detection and treatment of leprosy among local population.

• Occupational Health services that monitor health and wellbeing of workforce through medical surveillance programme.

• Community Health camps to reach out to rural population and create awareness on various health issues.

• Geriatric care services to the inmates of Ananda Illam run by your Company for care of elderly persons who have no family support.

• Your Company has taken all the necessary steps for health and Safety of its employees by conducting 100% initial medical check-up of all employees and contract workmen, Periodical medical check-up of 100% employees and contract workmen of age more than 50 years and more than 30% for employees and contract workmen of age less than 50 years.

Elders Home

To fulfil the special needs and requirements of the senior citizens, your Company runs ANANDA ILLAM in Neyveli. This elders home provides hospice & home care to the elders and help them to lead a happy and peaceful life with dignity. The employees of your Company also lend their helping hand by contributing a fixed amount every month from their salary to run the old age home.

Compliance under Persons with Disabilities Act, 2016

Your Company has evolved a comprehensive policy for Persons with Disabilities (PwDs) as per the guidelines issued by DoPT for and guidelines prescribed by Government of India under the Official Language Act, 1963.

In line with the Policy of Government of India and the Provisions prescribed under the Official Language Act, 1963 your Company continues to promote the Official Language and periodic Official Language Implementation Committee (OLIC) meetings are held to monitor the implementation of Official Language Policy. During the year under review, Hindi Workshops were organised besides celebration of Hindi Fortnight wherein competitions on Essay Writing in Hindi, Poetry and Noting & Drafting in Hindi, Hindi Training, Personal Contact Programme were conducted.

Women Empowerment - Forum of Women in Public Sector (WIPS):

WIPS NLCIL chapter was formed in 12^th February, 1990 and is a Corporate Life Member in the SCOPE since 1990. The strength of women employees in the Company as on 31^st March, 2024 stood at 881 constituting 8.42% of Company''s human resource.

The following activities were organized by WIPS, NLCIL by

developing their potentials. -

• A Committee was formed to look into the grievances of women employees, including to protect them from Sexual Harassment in work place.

• For the benefit of the working women employees, "Anbalaya" a well-equipped Creche with trained personnel is in operation.

• The NLC India Limited chapter of WIPS has also organized and conducted several sports, cultural activities, group discussions for the benefit of women employees.

Skill Development courses for women

• In-line with Skill India Mission, launched by Hon''ble Prime Minister of India, lot of initiatives have been taken up by NLCIL for developing skills and promoting entrepreneurship at a broader bandwidth.

• Entrepreneurship training for Women for Oyster mushroom Cultivation.

• As a part of International Women''s Day - 2024 celebration, creating awareness and encouraging women for being entrepreneurs was one of the important efforts undertaken by WIPS, NLCIL Chapter. 63 women attended the Program.

Safety

Your Company is taking pioneering efforts in the industrial safety area along with, the on-going safety related initiatives, apart from compliance of statutory requirements for enhancing safety standard in all the Mines and Thermal Plants.

Following are the measures being taken for ensuring safety of men and machines:

• Safety audit of all the Mines is conducted by multi-disciplinary Corporate Safety Team every year and Safety audit of Thermal plants is conducted by accredited external agencies once in two years.

• Risk assessment based Safety Management Plans (SMPs) have been prepared as per Coal Mines Regulation, 2017 for all the mining activities like Bench operation, Specialized Mining Equipment (SME), Conveyor Zone, Ground Water Control (GWC), conventional Mining Equipment (CME) etc. and is being practiced.

• Pit Safety Committee meeting for the mine is conducted every month besides special safety meetings by individual sections/ divisions like conveyor division, blasting division, electrical division etc. Similarly, Unit Safety committee meeting is conducted by all thermal plants every month.

• Weekly Safety inspections of Mines, Thermal plants and other units are being carried out by Corporate Safety executives and inspection report is submitted to Unit Heads for compliance and improvement in safety standard.

• NLCIL Industrial Medical Centre has been recognized as training center for imparting First Aid Training by DGMS (Directorate General of Mines Safety) and batches of workmen are trained on first aid regularly.

Awards & Recognition

In recognition of its various activities, your Company, has been conferred with the following awards during the year 2023-24:

• Corporate Safety Council members comprising representatives of different units make inspection of the pre-determined unit every month and present its findings to the Unit head and his team.

• Conducting workshops & Training on Safety in Mines and Thermal units.

• Life-Saving Rules have been prepared & implemented in all the units.

• Conducting Safety officers'' meeting every month by Corporate Safety department and discussing the Safety performance, Action taken on recommendations, etc.

• Mines at Neyveli (Mine I, Mine IA & Mine II) are being operated with State-of-the-Art Technology i.e. Bucket Wheel Excavators, Spreaders, stackers and series of conveyors having inbuilt safety features.

• Standard Operating Procedures (SOPs) have been established for all the activities of the mines and thermal plants and are strictly implemented.

w	Mine-II won "21st Annual Greentech Safety Award 2023" under Safety Excellence Category.		Barsingsar Lignite Mine was awarded with "Platinum Award" in "15th Exceed Occupational
/ era			Health Safety & Security Award-2023" in December, 2023 at Thiruvananthapuram (Kerala) organized by Sustainable Development
r	Mine-II won "Gold Award" in "15th EXCEED Safety &		Foundation, New Delhi.
	Security Award 2023" in "Best Safety Leadership" category under Mining Sector and the award was received from Sustainable Development Foundation on 15th December, 2023 at HILTON GARDEN INN, Trivandrum, Kerala. J.	/_
		\	Barsingsar Lignite Mine was awarded with Overall Second Prize in Safety Week Celebration-2023-24 under aegis of DGMS, Northern Zone held at Jaipur in December, 2023. Barsingsar Lignite Mine won total 6 prizes in said function.
/ X tira
			J
1	Barsingsar Lignite Mine won "21st Greentech Safety Awards-2023" for outstanding achievement in "Safety Excellence" category on 29th May 2023. A	/dra
		1 V	Barsingsar Project was awarded with 1st prize
			x in firefighting during Mines week celebration at DGMS Ajmer region in December, 2023.

	TPS-I Exp. Awarded with 15th Exceed Gold award for occupational health and safety at Trivandrum on 15th December, 2023. A
dTfi \_
	NLCIL Mines, Neyveli Mine-I, Mine-IA, Barsingsar Lignite Mine and Talabira II & III OCP were awarded 5 star rating and Mine-II was awarded 4 Star Rating by MoC for the FY 2022-23 by Ministry of Coal for overall performance including safety.
/ x
	Mine II won the National Safety Award (Mines) for Lowest Injury Frequency Rate (LIFR) per Million Cubic Metre Output among opencast coal mines for the year 2021.

Risk Management

A comprehensive Integrated Risk Management Policy and Framework as approved by the Board is in place in your Company. Besides risk prioritization, the roles and responsibilities of the Members are clearly defined. As per the policy, an Internal Risk Review Committee (below Board level) review the risks on a quarterly basis. The risk assessment together with the minimization procedure is reviewed by the Risk Management Committee, Audit Committee and the Board periodically.

Vigilance

Vigilance is a critical management tool that helps in channelizing the efforts of an organization towards higher growth trajectory. Its function should not be viewed as impediment in achieving the objective of the Company rather it should be viewed as facilitator in accomplishing its objective.

In order to protect the interests and preserve the integrity of the Organisation, your Company has established a robust Vigilance department headed by a Chief Vigilance Officer at the level of Joint Secretary to Government of India. The CVO acts as an advisor to the CMD in all matters pertaining to vigilance and as nodal officer of the Organisation for interaction with CVC and CBI.

The activities undertaken by Vigilance Department is Pro-active & Punitive and other measures to sensitize the employees of the Company. Complaints received in the department are dealt based on the "Complaint Handling Policy" and are processed through the Complaint Tracking System (CTS) from receipt up to disposal. As a preventive measure, Surprise Checks, Regular Checks, Quality Checks, Follow-up Checks and CTE Type Examinations are conducted.

As part of preventive vigilance measures, carried out various checks across all functional areas and units and recommended

systemic improvement measures for implementation. ''Vigilance Awareness Week ''(VAW 2023) observed from 30^th October, 2023 to 4^th November, 2023.

During the week, promoted awareness of PIDPI and ''Say No to Corruption'' campaign through Special Stalls at the key locations, Audio and Visual contents, Street Plays, Mob Dance, thoughtfully prepared ''Handouts'' and ''Brochures'' (trilingual), Short films competition, talk shows, debates, Interview with General public and grass root level employees, ''Signature Wall'', Rally (Walk) with students.

Implementation of Integrity Pact

Your Company is committed to have most ethical business dealing with the Vendors, Bidders and Contractors of goods and services and deal with them in a transparent manner with equity and fairness. To achieve these goals, your Company is implementing the Integrity Pact Programme in co-operation with Central Vigilance Commission (CVC) and renowned International Non-Governmental Organisation, Transparency International India (TII). Integrity Pact with the suppliers / contractors for all Tenders with an estimate of ^1 Crore and above are monitored.

During the year 2023-24, one Structured meeting held with Independent External Monitors (IEMs) for discussions on procurement and contract related issues. During the period, IEMs held 11 Review meetings wherein the orders covered under Integrity Pact were reviewed and 3 meetings were held with Contractors for the Tender/Contract related issues raised by the Contractors/Vendors.

Cyber Security

To protect against cyber security threats, your Company has a maze of protective equipment like Network and Web application firewall for perimeter security and antivirus protection to desktops/ laptops.

Digital Culture

Your Company has undertaken the following initiatives while transforming to digital culture:

a. SAP ERP is used as the enterprise software for core business.

b. E-Procurement of products and services is carried out through a common portal.

c. Email, Intranet, SMS services help for dissemination and Virtual Private Network (VPN) has enabled extended office connectivity.

d. Video Conferencing, Collaboration tools and virtual meetings are being conducted with distant Business units.

e. Pro-Active and Digital Initiatives like E-office, Document Management System and E-payments have ensured digitization of documents and paperless processes. These have simplified e-governance by ushering in more effective and transparent processes.

f. Supported by a robust network infrastructure with the project sites connected by MPLS, Hyper Converged Infrastructure for Servers, your Company is in the process of embracing new technological platforms to make the infrastructure more robust and seamless.

g. Your Company has taken measures to maintain Inventory of all Critical Information assets with risk Assessment and Business Impact Analysis and Contingency plan for IT systems for strengthening Cyber Security of the organization.

h. The digitization efforts have been a definitive step towards making the internal processes robust and unified which is contributing immensely towards addressing the Environment Social Governance (ESG) parameters for the Company. • • .

• . • ’ • .

Centralized Payment Process of Stores and Spares

In your Company, payment for spares and other materials purchased by units were carried out by the respective unit account centre except for the materials purchased by Permanent Central Stores (PCS) and Mines Sub Stores (MSS). For PCS and MSS, the payment was carried out by accounts centres of Material Management Complex (MMC) and Mine I, respectively. Thus, the centralised payment implemented in March, 2024 has helped in controlling the payments and reducing the time taken for making the payments.

Awards & Recognition

• For Company''s outstanding efforts in embracing and implementing digital transformation initiatives, SCOPE (an apex body of public sector enterprises) Eminence Award 2019-20 for digital transformation was awarded by Vice President of India on January 18, 2024.

• SCOPE Eminence award acknowledges the exemplary performance of public sector enterprises and individuals contributing significantly to organisational growth and the national economy.

Compliance Monitoring

Your Company has set up a software based Legal Compliance Management System (LCMS) for effectively monitoring and ensuring compliances of all legal provisions applicable to the Company.

Corporate Social Responsibility

Your Company, as a socially responsible corporate citizen, continues to carry out developmental works in the surrounding villages, right from its inception, focusing on the socio economic development of the operating regions for achieving inclusive & sustainable growth.

Your Company is adopting a Corporate Social Responsibility Policy covering the various sectors of sustainable socio-economic development. Your Company focuses on healthcare, education, sanitation, safe drinking water, hunger, poverty and malnutrition eradication, women empowerment, gender equality, environment sustainability, rural sports, protection of National Heritage, Arts and Culture, Rural Development, Water Resource Augmentation. The funds utilised for the CSR projects, programs and activities selected for implementation are as per the CSR Policy of the Company which is available in the website in the following link https://www.nlcindia.in/new_website/index.htm.

9 During the year 2023-24, your Company had spent ^47.36 Crore which is more than 2% of the average net profits of the Company for the last three year.

The details on specific Corporate Social Responsibility projects undertaken in compliance with Section 135 of the Companies Act, 2013 is placed as Annexure- 1.

Compliance under the Right to Information Act, 2005

Your Company ensures compliance under the Right to Information Act, 2005. Central Assistant Public Information Officers representing different functional areas, Nodal Officer, Central Public Information Officer, Appellate Authority and Transparency Officer have been nominated to attend to the queries and appeals received under the RTI act in a time bound manner.

During the year 2023-24 under the above Act, 567 applications containing 2269 queries were received and out of which 545 applications have been disposed off as on 31^st March, 2024 and remaining 22 applications were under process & have not elapsed the mandatory period. 123 RTI First Appeal have been received and all have been disposed off as on 31^st March, 2024.

Hearings for second appeal have been attended to 9 cases and CIC decision was favourable to your Company for 8 cases.

Your Company had won Public Relations Society of India (PRSI) National Awards, second place in Best PSU implementing RTI for 2023-24.

Compliance under Public Procurement Policy

The Ministry of Micro, Small and Medium Enterprises (MSMEs) has notified the Public Procurement Policy. The total procurement made from MSMEs during the year 2023-24 was 50.53% as against the target of 25%. Your Company has on boarded on Trade Receivable e-Discounting System (TReDS), a platform which facilitates the financing of trade receivables of MSMEs from corporate and other buyers, including Government Departments and Public Sector Undertakings (PSUs), through multiple financiers.

Procurement through GeM Portal

During the year 2023-24, your Company has procured goods & services from Government e-Marketplace (GeM) Portal for ^1,679.40 Crore. Efforts are being continuously made to maximize the procurement in GeM Portal by using the functionality of "Custom Bid" introduced in GeM during the year 2020.

Citizen''s Charter

Your Company maintains Citizen''s Charter, indicating details of clients, customers under different heads, different system of redressal of grievance etc., and the same is regularly updated.

Conservation of Energy, Technology Absorption and Foreign Exchange Earnings and Outgo

The particulars required under Section 134(3)(m) of the Companies Act, 2013 regarding conservation of energy, technology absorption and foreign exchange earnings and outgo are furnished in Annexure-2.

Management Discussion & Analysis Report and Report on Corporate Governance

The Management Discussion & Analysis Report is furnished in Annexure-3. The report on Corporate Governance on the compliance of Corporate Governance conditions stipulated by SEBI (Listing Obligations and Disclosure Requirements) Regulation, 2015 and the DPE guidelines on corporate governance is furnished in Annexure-4.

The Auditors'' Certificate on the compliance of above Corporate Governance Conditions is furnished in Annexure - 5.

Statutory Disclosures under the Companies Act,2013 and SEBI (LODR) Regulations, 2015 Annual Return

In accordance with the Companies Act, 2013, the annual return in the prescribed format is available at https://www.nlcindia.in/ investor/AR2022-23_1.pdf.

Particulars of Contracts or Arrangements with Related Parties

All related party transactions entered during the year 2023 - 24 were in the ordinary course of the business and are on an arm''s length basis. The disclosure of related party transactions as required under Section 134(3)(h) of the Companies Act, 2013 in Form AOC 2 is not

applicable to your Company. Members may refer to note no. 40 to the financial statement which sets out related party disclosures pursuant to Ind AS-24.

Declaration by Independent Directors

The Independent Directors have given a declaration on meeting the criteria of independence as stipulated in Section 149(6) of the Companies Act, 2013 & Regulation 25(8) SEBI (LODR) and they have registered their names in the Independent Directors'' Databank.

Particulars of Employees

As per provisions of Section 197(12) of the Companies Act, 2013 read with Rule 5 of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014, every listed Company is required to disclose the ratio of the remuneration of each Director to the median employee''s remuneration and details of employees receiving remuneration exceeding limits as prescribed from time to time in the Directors'' Report.

However, as per notification dated 05^th June, 2015 issued by the Ministry of Corporate Affairs, Government Companies are exempted from complying with provisions of Section 197 of the Companies Act, 2013. Therefore, such particulars have not been included as part of Directors'' Report.

Disclosures with respect to Demat Suspense Account/ Unclaimed Suspense Account in terms of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

As on 31^st March, 2024, there were 1000 shares pending unclaimed in the Demat Suspense Account/unclaimed Suspense Account.

Material changes affecting financial position occurring between the end date of Financial Year and the date of the Report.

There are no material changes affecting the financial position of the Company between the end of the Financial Year and the date of this Report.

Sexual Harassment of Women at Workplace

As required under Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013, suitable mechanisms were put in place in your Company to address the issues faced by women employees. A separate Internal Complaints Committee has been constituted for looking into the complaints relating to sexual harassment of women at workplace. During the year 2023-24, three complaints were received and same have been resolved and as such no case is pending at the end of the year.

Auditors

Statutory Auditors

M/s. Manohar Chowdhry & Associates, Chartered Accountants and M/s. Sundaram & Srinivasan Chartered Accountants were appointed by the Comptroller & Auditor General of India (C&AG) as the Joint Statutory Auditors of the Company for the Financial Year 2023-24 under Section 139 of the Companies Act, 2013.The Board of Directors of your Company has fixed ^45 lakh plus applicable taxes as the Statutory Audit fees for the year 2023-24, to be shared equally by the Joint Statutory Auditors.

Branch Auditors

M/s. N. Sarda & Associates, Chartered Accountants, has been appointed as the Branch Auditor of the Company for the year 202324 by C&AG for conducting the audit of Barsingsar Branch. The Board of Directors of the Company has fixed ^5.0 lakh plus taxes as the Branch Audit fees for the year 2023-24.

M/s. K. D. Lath & Co., Chartered Accountants, has been appointed as the Branch Auditor of the Company for the year 2023-24 by C&AG for conducting the audit of Talabira Branch. The Board of Directors of the Company has fixed ^5.0 lakh plus taxes as the Branch Audit fees for the year 2023-24.

Secretarial Auditors

D. Hanumanta Raju & Co., Practicing Company Secretaries, was appointed as the Secretarial Auditor of the Company for the year 2023-24. The Secretarial Audit Report for the Financial Year 202324 & the reply to observations of the Secretarial Auditors and the Secretarial Auditor Reports of the Subsidiary Companies are furnished in Annexure-6.

Cost Auditors

M/s. R.M. Bansal and Co., Kanpur, was appointed as the Cost Auditors of the Company for the year 2023-24 to conduct the Cost Audit for Mines & Power Stations of the Company. The Cost Audit Report for the Financial Year 2022-23 was filed within due date with the Ministry of Corporate Affairs on 08^th August, 2023.

In accordance with the provisions of Section 148(1) of the Act, read with the Companies (Cost Records and Audit) Rules, 2014, the Company has maintained Cost Accounts and Records.

C&AG''s Comments

Comments of the Comptroller & Auditor General of India (C&AG) on the Financial Statements of the Company for the year ended 31^st March, 2024 under Section 143(6)(b) of the Companies Act, 2013 along with the Management reply to the comments thereon are furnished in Annexure-7.

Adequacy of internal financial controls with reference to the Financial Statements

Your Company has, in all material aspects has an adequate internal financial controls system over financial reporting and such internal financial controls over financial reporting were operating effectively as at 31^st March, 2024. Based on the internal control over financial reporting criteria established by the Company, considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the ICAI.

Directors'' Responsibility Statement as per Section 134(3) (c) & 134(5) of the Companies Act, 2013.

The Board of Directors declares that:

a. in the preparation of the annual accounts, the applicable accounting standards had been followed along with proper explanation relating to material departures;

b. the Directors had selected such accounting policies and applied them consistently and made judgement and estimates that are reasonable and prudent so as to give a true and fair view of the state of affairs of the Company at the end of the financial year and of the Profit and Loss of the Company for that period;

c. the Directors had taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions of the Companies Act, 2013 for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities;

d. the Directors had prepared the annual accounts on a going concern basis;

e. the Directors, had laid down internal financial controls to be followed by the Company and that such internal financial controls are adequate and were operating effectively; and

f. the Directors had devised proper systems to ensure compliance with the provisions of all applicable laws and that such systems were adequate and operating effectively.

Board of Directors

Appointment

Details of appointment of Directors on the Board of the Company

are as under:

a. Shri M. Venkatachalam has been appointed as Director (Power) w.e.f. 26^th April, 2023.

b. Dr. Beela Venkatesan, Principal Secretary to the Government of Tamil Nadu, Energy Department has been appointed as Government Nominee Director w.e.f. 10^th July, 2023.

c. Dr. Prasanna Kumar Acharya has been appointed as Director (Finance) w.e.f. 15^th January, 2024.

Cessation

The following Directors relinquished from the Board of Directors of the Company:

a. Shri Ramesh Chand Meena, Additional Chief Secretary to the Government of Tamil Nadu, Energy Department ceased to be a Part-time Official Director, w.e.f. 10^th July, 2023 due to change in nomination.

b. Shri MT Ramesh ceased to be Independent Director w.e.f. 25^th March, 2024 consequent to his resignation.

c. Shri K. Mohan Reddy ceased to be Director (Planning & Projects) w.e.f. 01^st June, 2024 due to superannuation.

Your Directors wish to place on record their whole-hearted appreciation for the valuable guidance and services rendered by them during their tenure as Directors on the Board of the Company.

Key Managerial Personnel

Dr. Prasanna Kumar Acharya, Director (Finance), was appointed as Chief Financial Officer of the Company w.e.f. 06^th February, 2024.

Dr. Suresh Chandra Suman was ceased w.e.f. 15^th January, 2024 as Chief Financial Officer of the Company consequent to the appointment of Director Finance.

Further, pursuant to Section 152 of the Companies Act, 2013, Dr. Suresh Chandra Suman and Smt. Vismita Tej, Directors will retire by rotation at the ensuing Annual General Meeting of the Company and being eligible offer themselves for the re-appointment.

Reporting of Frauds by Auditors

During the year under review, the Statutory Auditors, Cost Auditors and Secretarial Auditor have not reported any instances of frauds committed in the Company by its Officers or Employees to the Audit Committee under section 143(12) of the Companies Act, 2013.

Acknowledgement

The Board of Directors of your Company places on record its sincere appreciation for the continued support and guidance extended by the Ministry of Coal, Ministry of Power, Ministry of New and Renewable Energy, Ministry of Finance, Ministry of Environment & Forest and Climate Change, Ministry of Mines, Ministry of Personnel, Public Grievances and Pensions, Ministry of Jal Sakthi, Ministry of Industry, Ministry of Labour and Employment, Ministry of Railways, Ministry of Heavy Industries, Ministry of Road Transport and Highways, NITI Aayog, DIPAM, DPE, Central Electricity Authority, Central & State Government Departments, Central & State Electricity Regulatory Commissions, Andaman & Nicobar Islands Administration, State Electricity Boards and beneficiaries of Tamil Nadu, Andhra Pradesh, Telangana, Karnataka, Kerala, Uttar Pradesh, Gujarat, Odisha, Puducherry and Rajasthan and also the Joint Venture Partners, viz., Tamil Nadu Generation and Distribution Corporation Limited(TANGEDCO), Uttar Pradesh Rajya Vidyut Utpadan Nigam Limited (UPRVUNL), Coal India Limited, Mahanadi Coalfields Limited and Hindalco.

The Board of Directors of your Company is pleased to acknowledge with gratitude the co-operation and continued support extended by the Governments of Tamil Nadu, Rajasthan, Uttar Pradesh, Jharkhand, Assam, Gujarat and Odisha, V.O.C. Port Trust, Tuticorin and the District Administrations of Cuddalore, Tuticorin, Bikaner, Andaman & Nicobar, Sambalpur, Jharsuguda, Kanpur Nagar, Latehar, Angul and Dumka. The support and co-operation extended by the Comptroller and Auditor General of India, Statutory Auditors, Branch Auditors, Internal Auditors, Cost Auditor, Secretarial Auditor, Director General of Mines Safety, Directorate of Industrial Health & Safety, Boiler Inspectorates, Chief Inspector of Factories, the Director of Boilers, Central Pollution Control Board, State Pollution Control Board, Chief Controller of Explosives, Chief Vigilance Commissioner, Coal Controller Officers, Regional Labour Commissioner, Regional Provident Fund Commissioner and other Statutory Authorities, the Company''s Bankers, Financial Institutions and KfW of Germany, Vendors, Suppliers, Contractors and other valued Stakeholders need special mention and the Directors acknowledge the same.

Your Directors also wish to place on record their appreciation for the dedicated work put forth by the Employees at all levels.

The positive role played by the recognized Trade Unions and Associations of the Engineers and Officers in maintaining cordial industrial relations deserves special mention.

For and on behalf of the Board of Directors

Place : Chennai Prasanna Kumar Motupalli

Date : 31^st August, 2024 Chairman and Managing Director

---

Mar 31, 2023

It is indeed my proud privilege on behalf of our Board of Directors to present the 67th Board''s Report on the business and operations of the Company together with the Audited Financial Statements for the year ended 31^st March, 2023 and the reports of Statutory Auditors and Comptroller and Auditor General (C&AG) of India.

The Financial Year 2022-23 has been a year of good achievements for your Company with all round performance. The significant highlights of achievements during the financial year (FY) 2022-23 are as follows:

a) Coal Production touched a new high of 100. 26 LT with 57.69% increase over the last financial year.

b) Highest ever Power Generation by NLCIL Group -30.08 BU with 3.01% increase over the last financial year.

c) All time ever highest Green Power Generation of 2.19 BU during the FY 2022-23.

d) Achieved CAPEX of ^ 3,308 Crore against a target of ^ 2,920 Crore.

e) All time ever highest procurement through Government e Marketplace (GeM) as a group having a value of ^ 1,028 Crore during the FY 2022-23 which is 65.03% of total procurement of ^ 1,581 Crore.

f) GeM Portal ranked NLCIL as No.1 for ''Timely payments'' and No.2 for ''Overall ranking'' among Top 20 CPSE Buyers for FY 2022-23.

g) All time highest ever other income of ^ 198.75 Crore through Disposal Department during the year.

h) Signed PPA with KSEBL for 400 MW of NLC Talabira Thermal Power Project with this, PPA for 2,000 MW out of 2,400 MW of this project has been signed.

i) Signed Memorandum of Understanding (MoU) with Assam Power Distribution Company Limited (APDCL) for development of 1,000 MW of RE projects in the state of Assam on 09^th August, 2022.

j) Signed MoU with National Institute of Wind Energy (NIWE) on 19^th October, 2022 for collaboration in the domain of Wind Energy.

k) Signed MoU with Bharat Heavy Electronic Limited (BHEL) on 12^th October, 2022 for Study on pilot plant for Lignite to syngas Integrated with Clean Power Generation by IGCC and production of value added chemicals.

l) Signed MoU with GRIDCO for setting up Ground mounted/floating solar plants, Pumped hydro storage and Green Hydrogen on 01^st December, 2022.

m) Issued Letter of Award (LOA)of contract value of ^1,755 Crore for setting up of 300MW Solar Plant at Barsingsar Project on 27^th March, 2023.

n) MoC has awarded 4 Mines of NLCIL with 5 Star rating and 1 Mine of NLCIL as 4 Star rating. Neyveli Lignite Mine II was ranked No.1 with 5 star rating among 199 mines in Base Year 2020 - 21 and similarly Mine I was ranked No. 1 among 206 mines, in Base year 2021-22.

o) Mine I & IA - Sale of Minor Minerals was started from 14^th March, 2023 and earned a revenue of ^ 2.58 Crore.

p) Signed MoU with PTDC (Pondicherry Tourism Development Corporation Ltd) for promoting Mine Eco Tourism on 05^th October, 2022. During FY 2022-23, 8430 persons visited Neyveli Mines and eco-parks.

q) MoU signed with TWAD Board by which NLCIL will supply 425 Lakh litres of water per day for benefit of 6 town panchayats, 625 villages and 7.91 Lakh people.

r) Tripartite meeting conducted at Neyveli (NLCIL, DGMS & Recognised Trade union leaders) on 25^th April, 2022 regarding safety in Neyveli Mines.

s) Total Revenue from Coal sale is ^ 1773.50 Crore for FY 2022-23 which is the highest ever revenue generated since inception.

t) Signed MoU with "The Nature Conservancy India" to reuse its mined-out land by setting up RE projects and to take action to reduce carbon emissions.

u) Entered the Country''s First ever Coal swapping arrangement for NTPL with NTPC, for Talabira Coal with MCL Coal.

Power

The total power generating capacity of the Company as on 31^st March, 2023, including wind and solar power generation is 5,061.06 MW and for NLCIL Group is 6,061.06 MW (including the capacity of NTPL, the Subsidiary Company).

During the FY 2022-23, the total Power Generation (Gross) was 24,152.81 Million Units (MU) and the power generation including Power surrender was 24,775.05 MU, as against 25,022.36 MU and 25,828.15 MU, respectively achieved during the FY2021-22. The Power Export during the year 2022-23 was 21,281.99 MU as against 22,041.04 MU achieved in the year 2021-22.

The average Plant Load Factor (PLF) of the Thermal Power Plants of the Company during the year 2022-23 was 68.86% as against the National Average of 64.15%.

The total power generation including NTPL was 30,082.80 MU against the previous year generation of 29,204.82 MU

Mining - Lignite & Coal

Your Company is presently operating three opencast Lignite Mines at Neyveli in the State of Tamil Nadu and one opencast Lignite Mine at Barsingsar in the State of Rajasthan. The total mining capacity of all the Lignite Mines is 30.10 MTPA. Your Company has also started Coal mining operations in Talabira II & III Opencast Coal Mines at Odisha, with a mining capacity of 20.0 MTPA, from 26^th April, 2020. Thus, the total mining capacity of your Company is 50.10 MTPA.

During the FY 2022-23, the total overburden (OB) removed in the Lignite & Coal Mines was 1,533.28 Lakh Cubic Metre (LM³) as against 1,531.33 Lakh Cubic Metre (LM³) removed in the year 2021-22. The Lignite Production in the year under review was 235.30 Lakh Tonne (LT) as against 251.13 LT during the year 2021-22 while the coal production achieved was 100.26 LT as against 63.58 LT during the year 2021-22.

The Raw Lignite Sales (RLS) to TAQA, the IPP and direct sales during the year 2022-23 was 12.34 LT & 8.84 LT (including RLS from Barsingsar Lignite Mine), respectively as against 14.60 LT & 18.44 LT, respectively achieved in the year 2021-22. The Coal sales from the Talabira Coal Mines during the year under review was 98.97 LT as compared to 63.69 LT during the year 2021-22.

With respect to coal production in Talabira Mines, considering the high demand of coal especially for power generation, your Company has taken steps to achieve production of 100.26 LT as against the original target of 80.00 LT. Your Company is also taking all out efforts to augment the Coal production of Talabira Mine during the current year. This will not only provide fuel security to End Use Plants but also make available coal in the market. The coal produced is being supplied to one of the End Use Plant viz., NTPL''s Plant at Tuticorin, Tamil Nadu.

Sale of excess Coal

Recent Amendment to Mines and Minerals (Development and Regulation) Act and Mineral Concession Rules by Ministry of Coal, Govt. of India on 1st October, 2021 has enabled the Mine for sale of excess Coal after meeting the coal requirement of End Use Plant. Further, approval has also been granted by MoC for the sale of coal upto 75% of coal production till 31^st March, 2026 after meeting the requirements of End Use plants subject to certain conditions.

During the year, Coal sale through E-Auction was 7.21 LT.

Productivity

The output per man-shift achieved during the year 2022-23:

	Product	1	Unit	2022-23
Lignite		Tonne			16.53
Power		KwHr			39,532

Financial Performance

During the year ended 31^st March, 2023, your Company on a Standalone basis had registered a revenue from operations of ^12,955.00 Crore as against ^9,856.48 Crore during the year 2021-22. The Profit Before Tax (PBT) and Profit After Tax (PAT) for the year 2022-23 were ^1,724.15 Crore and ^1,248.24 Crore respectively, as against ^2,606.42 Crore and ^1,236.78 Crore respectively during the previous year ended 31^st March, 2022.

On a consolidated basis, the total revenue from operations for the year 2022-23 was ^ 16,165.24 Crore as against ^11,947.94 Crore in 2021-22. The consolidated PBT and PAT for the year 2022-23 were ^2,055.79 Crore and ^ 1,426.10 Crore respectively as against ^ 2,603.14 Crore and ^ 1,115.65 Crore respectively in the year 2021-22.

The details of profit earned for the financial year 2022-23 and appropriation of the		same are as follows:		(^ Crore)
	Stanc	alone	Consolidated
Particulars	2022-23	2021-22	2022-23	2021-22
Revenue from operations	12,955.00	9,856.48	16,165.24	11,947.94
Profit Before Tax	1,724.15	2,606.42	2,055.79	2,603.14
Tax Provision	475.91	1,369.64	630.66	1,488.01
Profit /(Loss) for the Period (PAT)	1,248.24	1,236.78	1,426.10	1,115.65
Appropriation
Transfer (to) / from Interest Differential Fund Reserve	(4.33)	(4.90)	(4.33)	(4.90)
Transfer to PRMA Reserve Fund	(14.29)	(1.50)	(14.29)	(1.50)
Transfer to Contingency Reserve	(10.00)	(10.00)	(10.00)	(10.00)
Dividend (Interim / Final )	(416.00)	(416.00)	(416.00)	(456.92)

Shareholding of Government of India

The present shareholding of the President of India in the Company is 79.20%.

Dividend

For the year 2022-23, the Board of Directors of your Company had paid an Interim Dividend of 15% (^ 1.50 Per equity share). Further, your Board has also recommended a final dividend of 20% (^ 2.00 per equity share) subject to the approval of the shareholders. The total dividend for the year 2022-23 including Interim Dividend already paid is 35% and the same works out ^ 485.32 Crore.

Transfer to Reserve

There is no amount proposed to be transferred to the Reserves.

MOU Parameters

Thirty Six vendors had sought permission to get registered in TReDS Portal and NLCIL had accepted all the Thirty Six requests and all got registered in TReDS portal. NLCIL also got registered in TReDS portal to facilitate transaction resulting in 100% acceptance of Goods and Services through TREDS portal.

The details of projects under implementation are as under:

Mine IA Expansion

This Expansion Project is being implemented to expand Mine IA from 3.0 MTPA to 7.0 MTPA at a cost ^ 709.06 Crore. The achieved physical progress is 75.36% and the cumulative expenditure incurred on this project upto 31^st March, 2023 is ^ 535.75 Crore. In terms of the notification issued by CERC and as per the accounting policy of the Company, 1^st April, 2022 has been reckoned as date of commencement of commercial operation in respect of Mine-IA Expansion and expected to attain the normative capacity of 7.0 MTPA by the year 2027-28. Accordingly, the capitalization of ^ 526.55 Crore including value carried out from CWIP balances as on 31^st March, 2023.

Lignite to Methanol

As a diversification initiative, your Company''s initiative to set up the Lignite to Methanol Project utilizing the lignite from Neyveli Mines at Neyveli with a plant capacity of 1200 Tonnes per Day (TPD) on Lump Sum Turnkey (LSTK) mode, at an estimated cost of ^ 4,383 Crore has been approved. Engineers India Limited (EIL) has been appointed as the Project Management Consultant for this Project. This Project is anticipated to be completed within 42 months from the zero date. NLCIL has entered into engineering service agreement with licensor M/s Air Products. Obtaining Environmental clearance for this project from MoEF & CC is in process. GTE floated for LEPC-1 (Gasification Block) and for LEPC-2 (Methanol Synthesis Block) and tendering for both the packages is in process.

150 MW Hybrid (Solar Wind) RE Power Project (SECI)

Your Company had participated in the 1200 MW Wind & Solar Hybrid RfS floated by SECI for a capacity of 150 MW and emerged as a successful bidder with a quoted tariff of ^ 2.34/Unit. LOA has been received from SECI to this effect. NLCIL had participated and bagged SECI Hybrid Tender for 150 MW (Wind Solar). NLCIL has submitted Performance Bank Guarantee (PBG) to SECI and PPA has been signed with SECI. Your Company has floated tenders for setting up of 50 MW Wind and 100 MW Solar projects on Pan India Basis. Bid evaluation under process for both tenders.

510 MW solar power project under CPSU scheme

Your Company has emerged as a successful bidder in IREDA CPSU scheme tender for setting up 510 MW solar power project. The Project is being executed in 3 phases of 300 MW in Rajasthan, 200 MW on Pan India Basis and 10 MW Neyveli for Smart City. Your Company has issued LoA to M/s Tata Power Solar Systems Limited (TPSSL) for 300 MW Solar Power Project at Barsingsar. Consent from Beneficiary (M/s RUVNL) was received for 300 MW. For remaining 200 MW, tendering under process. Telangana State DISCOM conveyed their consent for usage of 200 MW power at a tariff ^ 2.57/unit.

Ground Mounted Solar Power Project (10 MW) at Neyveli sanctioned at a cost of ^42.94 Crore is in line with the criteria prescribed by Ministry of Housing and Urban Development, Nodal Ministry for smart cities being declared as "Mini Smart City". 10 MW solar panels were synchronised with grid.

NLC Talabira Thermal Power Project (3 X 800 MW)

NLC Talabira Thermal Power Project (NTTPP), a coal based thermal power project of capacity 2,400MW with three units of 800 MW capacity each, is proposed to be set up at Jharsuguda & Sambalpur District in the State of Odisha, linked to the allocated captive mine Talabira II & III OCP at a total estimated project cost of ^19,422 Crore. The proposed plant will be of state of the art Ultra Super-critical technology, compliant with latest emission norms. All statutory approvals for setting up the project including the Environmental Clearance have already been obtained. Power Purchase Agreement for the off-take of 2,000MW power from this project has already been signed with TANGEDCO (for 1,500MW), Puducherry Discom (for 100MW) and KSEB Kerala (for 400MW). Signing of PPA with GRIDCO Odisha (for 400MW) is expected shortly. The EPC Notice Inviting Tender for the project has been floated and techno-commercial bids opened and QR evaluation completed. The first Unit of the project is scheduled to be commissioned in 52 months from the date of award of the EPC Contract and the other units with a phase shift of 6 months each. The land acquisition for the project is in progress.

Thermal Power Station II 2nd Expansion (2 X 660 MW)

Thermal Power Station II 2nd Expansion (TPS II SE) is a lignite based thermal power plant of capacity 1,320 MW with two units of 660 MW capacity each, proposed to be set up at Mudanai village (near Neyveli), Cuddalore District, Tamil Nadu which is linked to Lignite Mines of Neyveli. Similar to NTTPP, this project is also proposed to be set up based on the state of the art Ultra Super-critical technology, compliant with latest emission norms. All necessary approvals for setting up the project including the Environmental Clearance have already been obtained. TANGEDCO has expressed their willingness to procure the entire 1,320 MW from this proposed project. However, MoP has allocated 1,081.69 MW to TANGEDCO and 40.31 MW to PED. Land for the project is already in possession of your Company. Consent to Establish is also available. The first unit of the project is scheduled to be commissioned in 50 months from the date of award of the Contract and the second unit with a phase shift of 6 months.

Overburden (OB) to M-Sand

Your Company''s in-house research centre, CARD had earlier undertaken a research project jointly with IIT/Madras for conversion of OB materials into aggregates and the preliminary study indicated that OB materials contain 40% to 70% sand & considerable quantity of clay. Board of Directors of your Company has approved setting up of M-Sand Beneficiation Plants at Neyveli for producing M-Sand from each Mine under Build, Own & Operate (BOO) Model based on the detailed feasibility report and financial appraisal report at an estimated capital expenditure of ^180 Lakh. Order issued for Mine-IA on 31^st March, 2023 for setting up of M-Sand Plant of 0.42 MTPA Capacity and is expected to commence operation by January, 2024. Mine-I M-Sand Plant tendering is under process.

Neyveli Uttar Pradesh Power Limited (NUPPL) - A Joint Venture between NLCIL & UPRVUNL-Ghatampur Thermal Power

Revised cost estimate (RCE) of ^19,406.13 Crore for the project has been approved by MoC. PPA has been signed with Assam in line with MoP power allocation. Project progress is affected due to slow progress of works in Balance of Plant (BOP) package (GA3) and because of lockdown due to COVID-19 resulting in shortage of manpower at site, delay in supplies and diversion of oxygen cylinders from site to hospitals etc. and disturbances in GA3 package related supply chain.

Pachwara South Coal Block (09 MTPA)

The Mining plan & Mine Closure plan of PSCB has been approved by MoC. NUPPL Board has accorded approval for the Feasibility & Bankability Report of PSCB and the same has been submitted to MoC for further approval from Public Investment Promotion Board (PIB). Environmental Clearances, Forest Clearances, Land Acquisition for coal evacuation route of PSCB and development of Rail Infrastructure for Coal Evacuation is under progress.

Mine III

The project with a capacity of 11.50 MTPA encompassing a project area of 3,893 Ha is proposed to be commissioned to fuel the requirement of TPS II 2nd Expansion at an estimated cost of ^3,755.71 Crore. The block has a mineable reserve of 415 MT. The process for obtaining all necessary approvals for commencement of mining project is in progress. The project is expected to commence its operations by 2027. Revised Mining Plan (MP) as per the revised guidelines is under approval. Administrative approval from GoTN for Land Acquisition is in process.

Consultancy Services for developing Coal Block

Your Company has been awarded a work order for providing consultancy services to Uttar Pradesh Rajya Vidyut Utpadan Nigam Limited (UPRVUNL) for selection of MDO, supervision & monitoring of exploration and other site activities for its Saharpur Jamarpani Coal Block in Jharkhand.

The details of projects under formulation are as under:

Green Energy

Considering the thrust being given by the Government of India (GoI) for green energy and competitive market of renewable energy, together with the tax benefits available to new manufacturing companies and with the focus shifting towards cleaner sources of power and the Government setting a target of 450 GW of Renewable Energy (RE) capacity by 2030, your Company has also exploring RE business as its next pillar of growth. Your Company has prepared its business plans to tap this opportunity appropriately while continuing work on operating its thermal fleet efficiently, economically and reliably to meet the growing energy needs of the country.

Commercial Mining

Recently GOI has launched the auction process for commercial mining of various coal blocks across the Country. As Members may be aware that GOI with a view to increase the coal production has removed various restrictions including the end use criterion. It is expected that the demand for coal would continue to be in existence and the total demand for Non-Coking Coal is forecasted at 1,331 MT by the year 2047. As part of its growth plan, based on the exploration status, geological reserves, topographical features, tentative ratio, local issues and other relevant data, your Company has short-listed three coal blocks namely Machhakata (revised) in Talcher coalfield, Angul district of Odisha, North Dhadhu (eastern part) and North Dhadu (western part) in north Karanpura coalfield, Lathehar district of Jharkhand for commercial mining. Out of the three coal blocks, Your Company won the bid for North Dhadu (Western Part) Coal Mine in Latehar District of Jharkhand @ 6% revenue sharing. The coal mine forms part of the North Karanpura coal field and it is having an area of 5.33 sq. km. It is fully explored having a geological reserve of 435 MT of G12 grade. Tentative capacity of the coal mine is 3 MTPA. The coal will be sold to the potential consumers located in the states of Uttar Pradesh, Bihar and Jharkand.

Mining Projects

Your Company is presently operating three opencast lignite Mines at Neyveli in the State of Tamil Nadu and one opencast lignite Mine at Barsingsar in the State of Rajasthan. The total mining capacity of all the lignite Mines is 30.10 MTPA. Your Company has also started Coal mining operations in Talabira II & III Opencast Coal Mines at Odisha, with a mining capacity of 20.0 MTPA, from 26^th April, 2020. Thus, the total mining capacity of your Company has increased to 50.10 MTPA.

In the Coal Sector, presently your Company operates an open cast coal mine of capacity 20 MTPA at Talabira, in the State of Odisha and through NUPPL, its Subsidiary, your Company is developing the Pachwara South Coal Block in the State of Jharkhand, with a capacity of 9 MTPA. Your Company has intended to enter into commercial mining of coal, with a planned addition of 15 MT, thereby envisaging an aggregate mining capacity of 44 MTPA in the Coal Sector.

Total CAPEX projected for FY 2023-30 for the mining projects is ^ 8,351 Crore.

Power Generation Projects

Your Company is currently operating five lignite based thermal power stations, four at Neyveli, in Tamil Nadu and one at Barsingsar, in Rajasthan, with an aggregate capacity of 3,640 MW. Your Company through NTPL, the Subsidiary, is operating one coal based thermal power plant of 1,000 MW (2 X 500 MW) capacity. On implementation of two Coal based Thermal Power Projects viz GTPP (NUPPL) of capacity 1,980 MW (3X660 MW) and Talabira Thermal Power Project (Phase I & II) of capacity 3,200 MW (4 X 800 MW) and lignite based Thermal Power Project TPS II 2nd Expansion of capacity 1,320 MW (2X660 MW), the power generation capacity would reach 11,140 MW. The Projected CAPEX for the Thermal Energy is ^ 46,023 Crore. On Renewable front, by 2030, NLCIL plans to increase its capacity from 1,421 MW to 6,031 MW by implementing various Solar & Wind Projects. The Projected CAPEX for Renewable Energy is ^23,403 Crore.

Diversification Projects:

NLCIL has adopted the diversification strategy and has ventured into implementation of OB to M-Sand, Lignite to Methanol, Battery storage & Green Hydrogen. Further, EV Charging stations, Lignite to diesel, IGCC Technology projects are being taken up on Pilot Scale under Clean Energy. MoU signed with WAPCOS on 27^th May, 2023, for the purpose of carrying out collaborative technical services and advisories for development of various schemes of Pumped storage, Reservoirs/Storage, Run of River Hydro-Power Projects in India.

The total capital expenditure for mining, power generation and diversification businesses has been projected to be ^82,174 Crore during FY 2023-30.

NLC Tamil Nadu Power Limited (NTPL) - A Joint Venture between NLCIL and TANGEDCO Tuticorin Power Plant (1000 MW) in Tamil Nadu

As Members may be aware that NTPL, the Subsidiary Company is operating a 1,000 MW coal based thermal power plant in Tuticorin in the State of Tamil Nadu. During the year 2022-23, the total Power Generation (Gross) of NTPL was 5,929.99 MU (excluding power surrender) as against 4,182.46 MU registered in the year 2021-22.

During the year ended 31^st March, 2023, NTPL registered a revenue from operations of ^ 3,502.78 Crore as against ^2,221.60 Crore registered in the year 2021-22. The Profit Before Tax & Profit After Tax for the year 2022-23 were ^433.08 Crore and ^ 278.65 Crore respectively as against ^ 329.65 Crore and ^ 211.28 Crore registered in the year 2021-22. Interim Dividend of ^0.50 (5%) per equity share was declared by NTPL Board for the FY 2022-23 and the same was paid on 01^st December, 2022.

NUPPL, the Subsidiary Company is implementing the 3 x 660 MW Ghatampur Coal based Thermal Power Project (GTPP) at Ghatampur Tehsil, Kanpur Nagar District in the State of Uttar Pradesh at a project cost of ^ 17,237.80 Crore. The revised project cost of ^ 19,406.12 Crore has been approved by Ministry of Coal, Gol. As per the present progress of the project, project is expected to be commissioned during FY 2023-24. The delay in execution of the Project was mainly due to the slow progress of works in Balance of Plant (BOP) Package (GA3), as the Package Contractor M/s. BGRSE is under financial stress. Further, because of lockdown during the period of Covid-19 pandemic, Inter-State Migrant Labours (ISML) returned to their native places besides the inadequacy of skilled man power and disturbances in supply chains distributions during that period contributed to the delay in the progress of the project.

This project is being monitored by MoC and at the apex level by the Office of Prime Minister and is considered as the signature project. The Board of NUPPL is taking all necessary steps to expedite the implementation of the Project. NUPPL has signed a Power Purchase Agreement (PPA) with Uttar Pradesh Power Corporation Limited (UPPCL) for supplying 75% of the Power from the plant. In line with the revised power allocation by Ministry of Power, Gol, PPA for 492.72 MW power (24.88%) has been signed with APDCL on 13^th June, 2023.

The coal supply for the GTPP is linked to Pachwara South Coal Block (PSCB) which is in advance stage of obtaining necessary clearances/approvals for commencement of mining operations. Based on the Company''s request, CEA had recommended Coal India Limited (CIL) to supply 0.99 MT (0.33 MT for each unit) coal to GTPP to facilitate commissioning activities, trial run & achieving COD etc. The remaining quantity of Coal is expected to be supplied from the Talabira II & III OCP Mine belonging to your Company till commencement of operation of PSCB. Standing Linkage Committee (Long-Term) on 16^th June, 2023, recommended bridge linkage of 2.64 MT operational coal for FY 2023-24 from Coal India Limited.

The project has achieved a CAPEX of ^ 1,510.76 Crore in the year 2022-23. The cumulative expenditure incurred since inception up to 31^st March, 2023 is ^ 14,871.83 Crore.

Pachwara South Coal Block (9.0 MTPA) in Jharkhand

NUPPL has been allotted Pachwara South Coal Block (PSCB), in the State of Jharkhand, with a capacity of 9.0 MTPA (Normative) & 13.50 MTPA (Peak), at an estimated cost of ^ 1,795.01 Crore. In order to develop and operate the above Coal Block, MIPL GCL Infra contract Private Limited has been appointed as the Mine Developer Operator (MDO). Geological Report (GR), Mining Plan & Mine Closure Plan have been approved by MoC. Final EIA/EMP report along with application for EC has been uploaded at PARIVESH portal of MoEF&CC. Environmental Advisory Committee (EAC) has recommended for a grant of Environmental Clearance in the meeting held on 21^st July, 2023. Proposal for Stage-I Forest Clearance has been forwarded to MoEF & CC by the Government of Jharkhand. The coal block was allocated under Coal Mines Special Provisions Act and accordingly MoC issued a notification u/s 19 (1) of Coal Bearing Areas (Acquisition and Development) Act, 1957 for land acquisition. For Land acquisition proposal for R&R Colony, Coal evacuation route and Administrative Office/Township etc., Sec 11(1) notification under Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013 has been issued by District Authority, Dumka, Jharkhand on 19^th July, 2023. The Project has achieved a CAPEX of ^ 4.22 Crore in the year 2022-23. The cumulative expenditure incurred up to 31^st March, 2023 was ^ 43.50 Crore.

Coal Lignite Urja Vikas Private Limited (CLUVPL) - A Joint Venture Company between NLCIL & CIL

Your Company had entered into a Joint Venture Agreement with Coal India Limited (CIL) to implement conventional and non-conventional power projects by forming a JV Company with an equity participation of 50% each. The JV Company "Coal Lignite Urja Vikas Private Ltd" was incorporated on 10^th November 2020.

The JV Company has been awarded the Project Management Consultancy Contract by South Eastern Coalfields Limited (SECL) for developing 40 MW Solar Power Project at Bishrampur and Bhatgaon locations of SECL in the State of Chhattisgarh. Presently the project activities are in progress.

MNH Shakti Limited

Mahanadi Coalfields Limited, your Company and Hindalco jointly formed MNH Shakti Limited with an equity participation of 70:15:15 to implement 20.0 MTPA Coal Mining Project in Talabira, in the State of Odisha. The Talabira II & III Coal Blocks allocated for this purpose have been cancelled pursuant to the judgement of Hon''ble Supreme Court of India and the Coal Mines (Special Provisions) Ordinance, 2014. The JV Company has been proposed for winding up and necessary formalities are underway. In the meantime, MNH Shakti Limited with the approval of its shareholders has reduced its Paid-up Equity Share Capital from ^85.10 Crore to ^35.10 Crore by way of cancellation of five Crore equity shares of ^10/- each aggregating to ^50 Crore and the said amount has been returned to the JV Partners in accordance to their shareholding in the JV Company.

Your Company has incorporated NLC India Renewables Limited (NIRL), as its wholly owned subsidiary on 14^th June, 2023 to take over the existing renewable assets of your Company

In this regard, your Company plans to consolidate almost all its Renewables Assets under its Asset Monetization plan. After identifying the Renewables Assets, the Company will apply for the requisite approvals from the Government and other statutory bodies. After receiving the requisite approvals, your Company will process the transferring of RE assets to the new Company. NITI Aayog has not given any specific target for Asset Monetization for the year 2022-23.

Details of loans and investments covered under the provisions of Section 186 of the Companies Act, 2013 forms part of the Financial Statements.

Deposits^^B^

The Company has not accepted any deposits from the public during the year.

During the financial year 2022-23, your Company has not issued any Bonds.

Commercial Paper

During the financial year 2022-23, due to better fund management, sales bill discounting and increase in realisation has improved the liquidity position of the Company and hence, the Company has not issued any commercial paper.

Sales Bill Discounting

During the financial year 2022-23, your Company has offered the Sales Bills Discounting facility available in the Banking System with recourse to your Company and the power bills issued were discounted by DISCOMs. The total value of sales bills discounted during the year under review was ^ 3,448.69 Crore. During the year under review, there were no instances of bankers sending the bills to the Company for meeting the obligations since the DISCOMs have honoured their commitments to the Bankers on the due date.

Credit Rating for Borrowings

During the year, your Company has retained AAA rating for Long Term Borrowings including Issue of Bonds and A1 fo issue of Commercial Papers from Credit Rating Agencies. The present ratings are given below:

r	Rating Agency / Particulars		Rating Assigned
1	ICRA
	Non-Convertible Debentures - Secured	? 2,000 Crore	ICRA AAA/Stable
2	CRISIL
	Working Capital Loan	? 5,000 Crore	CRISIL AAA/Stable
	on-Convertible ebentures (Issued ar ount- ?2,175)	? 3,000 Crore	CRISIL AAA/Stable
	Proposed Term Loan	? 1,695 Crore	CRISIL AAA/Stable
3	CARE Ratings
	Solar 500 MW	? 512.31 Crore	CARE AAA; Stable
	NNTPS 1000 MW	? 2,100 Crore	CARE AAA; Stable
	Commercial Paper	? 6,000 Crore	CARE A1
4	India Rating (Fitch Group)
	Solar 709 MW	? 1,681 Crore	IND AAA/Stable
	Non-Convertible Debentures - Secured	? 2,000 Crore	IND AAA/Stable
	Non-Convertible Debentures - Unsecured	? 2,175 Crore	IND AAA/Stable
	Commercial Paper	? 6,000 Crore	IND A1
	Infomerics Ratings
	Talabira Mine	? 1,428.51 Crore	IVR AAA/Stable
6	Acuite Ratings & Research	? 1,000 Crore	ACUITE AAA/Stable

Power Dues Realisation:

• During the year under review, your Company had received an amount of ^ 7,138.89 Crore out of the total billed value of ^ 7,990.73 Crore for the FY 2022-23. In case of NTPL, total amount realized was ^ 3,220.74 Crore against billed value of ^ 3,495.70 Crore. Collection efficiency of the Company as a whole stood at 90.19%.

• The outstanding power dues including for the month of March, 2023 invoices as on 31^st March, 2023 is ^ 4,794 Crore as against ^ 3,958 Crore for the corresponding period of the year ended 31^st March, 2022. The increase in the outstanding dues is mainly on account of debit notes raised towards various tariff orders issued by CERC, which will be realized in instalments and debits notes issued for amount recoverable from DISCOMs towards Income Tax settled under Vivad Se Vishwas Scheme. The dues beyond the 45 days limit as on 31^st March, 2023 is ^ 3,544 Crore as against ^ 2,675 Crore for the corresponding period of the previous year ended 31^st March, 2022.

• During the year under review, MoP had notified the late payment surcharge rules on 3^rd June, 2022 in which provision was made for liquidation of overdues prior to 3^rd June, 2022 through installment plan. Subsequently, DISCOMs availed the instalment scheme for old dues to the tune of ^ 982.21 Crore. Also, the current bills are being settled by the DISCOMs in a timely manner.

• Further, the DISCOMs were encouraged & persuaded to avail Bill Discounting Scheme to liquidate their dues, which resulted in the realization of dues to the tune of ^ 3,448.69 Crore through bill discounting from the DISCOMs.

Power Trading in Power Exchange

• During the year 2022-23, 220.70 MU of Un-Requisitioned Surplus (URS) power was sold from NLCIL thermal power stations in different market segments of Power Exchange leading to a gross revenue addition of ^ 94.64 Crore. As per the CERC IEGC Regulation & MoP Electricity (Late Payment Surcharge and Related Matters) Rules 2022, gains earned from sale of such URS power is being shared with the beneficiaries.

• Whenever opportunity arises, NLCIL is continuously trading surrendered power from its thermal stations in Day Ahead Market (DAM) & Real Time Market (RTM) segments of Indian Energy Exchange (IEX) based on availability of surplus lignite & technical capabilities of thermal stations.

• NLCIL has also traded 138.65 MU of power in FY 2022-23 as against 91.23 MU in the year 2021-22 under Trading License which includes sale & purchase of power for various grid connected entities.

• Power Trading agreements were signed with three new clients for buying power from IEX through NLCIL during the period 2022-23.

Regulatory affairs

• During the year 2022-23, CERC has issued Truing up orders 2014-19 and Tariff orders 2019-24 for all the Thermal plants except BTPS and NNTPS. Also, Commission has issued wage revision order for increase in O&M expenses for control period 2014-19. Truing up Orders of Lignite Transfer Price for 2014-19 pertaining to Neyveli Mines and Barsingsar Mines have also been issued.

• Your Company has filed Review Petitions before Hon''ble Commission against Lignite Truing up Orders of 2014-19 and Hon''ble Commission has admitted the Review Petition for additional capitalization, wage revision and inclusion of stores component and has kept aside the review of pooled O&M expenses citing that the same will be dealt based on outcome of APTEL for similar issue for the period 2009-14 in respect of Neyveli mines. Company has also filed Review Petition before Hon''ble Commission in respect of Lignite Transfer Price Truing Up Order 2014-19 and Hon''ble Commission has admitted the petition for review of additional capitalization and inclusion of stores component for Barsingsar Mines.

• For expeditious resolution of truing up of pooled O&M expenses of Neyveli Mines for 2009-14, your Company has filed for short-course hearing at APTEL, which has been admitted. Hearing will be scheduled in due course.

• The Input Price petitions for NLCIL Neyveli Lignite Mines, Barsingsar Lignite Mines for the period 2019-24 and Talabira Coal Mines for the period 2021-24 have been filed before CERC.

Your Company practices and promotes the best Environment Management Plan (EMP) since its inception and is committed to environment friendly mining and power generation. The environment policy of your Company is in line with the Vision and Mission Statement.

Ministry of Coal has constituted an Apex Committee with Additional Secretary/ MoC as its Chairman to monitor the compliance of Environmental Clearance (EC) and Forest Clearance (FC) conditions in Lignite / Coal Mines. In this connection, your Company has constituted Environmental Monitoring Committees at Head Quarter (HQ) level and Area level as per the guidelines of Ministry of Coal for the above monitoring purposes.

Your Company continued to undertake mass tree plantations during the year for the benefits of slope stabilisation of the Mines Overburden dumps in order to convert the Mine soil into cultivable soil making it fit for habitation. The Company started investing in Eco-care since its inception leading to a development of a lush habitat which has been converted into Eco-parks & Eco tourism locations. The greenbelt developed also acts as barrier to arrest the air pollution and prevents soil erosion besides Sequestration of CO2 in the atmosphere.

The units have installed dust suppression mechanisms such as water sprinklers, spray guns, Fog Cannons etc. to control the fugitive dust. The Ambient Air Quality (AAQ) is being monitored regularly in the surrounding villages and is well within the prescribed norms.

Consequent to the Amendments of Environment (Protection) Act, 1986, the norms for water consumption and emissions from Power Plants [Particulate Matter (PM 2.5 & PM10), Sulphur dioxide (SO2), Oxides of Nitrogen (NOx) & Mercury (Hg)] have been made stringent for the existing as well as new Thermal Power Plants. In this regard, installation of Flue Gas De-sulphurisation (FGD) Systems is in progress.

As a result of continued environmental management measures undertaken, your Company has received many awards for maintaining better environmental management practices. The lists of such awards received during the year 2022-23 are as under:

> Greentech Intl. EHS award supported by MoEF & CC - Winner for outstanding achievements in Environment Leadership.

> Grow Care India Environment Excellence Platinum Award 2021- under Environment Preservation Category.

> Fly Ash Utilization Award 2022- For efficient management of Fly ash management in NLCIL (Southern Region) by Mission Energy Foundation.

> TPS II conferred as Winner under "Best Performing Unit" presented by National Power Plant Awards -2023 -Council of Enviro Excellence (CEE)

> BTPS has been awarded with "Gold Award" for 13^th Exceed Occupational Health Safety Award & conference 2022 in Power Sector for FY 2022-23

> BTPS bagged Winner prize for 100% Fly Ash Utilization Award by Mission Energy Foundation during FY 2022-23.

> Barsingsar project was selected as Winner under Leading Project of the year category for green-tech Intl Leadership Award 2023 in FY 2022-23.

> BTPS won Excellence Awards from Mission Energy Foundation under the "Clean Generator of the Year - Lignite" & "Excellence in implementation of new Environmental Norms existing TPPs"

> Mine II bagged Green Tech Environment Award 2023 Winner under Environmental Preservation category.

> NNTPS bagged the prestigious award of "Winner - Southern Region" for Excellence in Environment Sustainability 2022 as the best efficient plant in IPP - Fly Ash Utilization category organized by Council of Enviro Excellence (CEE) in the virtual event held on 18^th August, 2022.

> NNTPS bagged "Green Leaf Award-2021" for Environment Excellence from Apex India Foundation on 5th May, 2022.

During the year, your Company had taken Mega Insurance Policy for the Assets and Stocks of Production Units viz. Mines, Thermals & Renewable Energy (RE). It broadly covers, Material damage (MD) of all Mine assets and Material damage (MD), Machinery Breakdown (MBD), Fire Loss of Profit (FLOP) & Machinery Loss of Profit (MLOP) of all Thermal & RE assets. Assets of Service units are covered under Standard Fire and Special Peril Policy (SFSP) which also cover Electronic Equipment Insurance (EEI), Transit Insurance, Public Liability Industrial Risk Insurance.

The extensive land requirement for continuous mining necessitates invoking the law for the acquisition of private property leading to involuntary displacement of people. Your Company is sensitive to the painful involuntary relocation of displaced families and strives to minimize the trauma of such displacement besides continuously and consciously balance the techno economic and the socio-economic goals of its projects. Your Company is following sustainable Land Acquisition policies as per the approved norms and regulations issued by Central and concerned State Government from time to time.

The law applicable for the acquisition of lands for the projects in the State of Tamil Nadu has been changed from the Central Act 1 of 1894 to the Tamil Nadu Acquisition of Lands for Industrial Purposes Act,1997 (TN Act 10 of 1999) with effect from 20^th September, 2001.

Your Company has been following the National Policy on Rehabilitation and Resettlement, 2007 for the benefit of the Project Affected Population, for lands acquired upto 31^st December, 2013. The Provisions for compensation and R&R as per Schedule-I, II & III of "Right to Fair Compensation and Transparency in Land Acquisition Rehabilitation and Resettlement Act - 2013" (RFCTLARR) are applicable since 1^st January, 2014 to your Company. A revised R&R policy was unveiled by the Hon''ble Minister for Coal on 17^th January, 2022 and as per this policy in addition to the monetary benefits as per the provisions of Schedule-II of RFCTLARR Act, the settlers on Govt. lands are also covered for some more benefits besides providing alternate house sites, annuity or onetime grant in lieu of employment. Your Company has diligently revised its Rehabilitation and Resettlement (R&R) policy in November, 2022 once again to offer enhanced benefits to the project-affected families, surpassing the provisions stipulated in the RFCTLARR Act, 2013 in light of the difficulties faced in land acquisition.

Your Company takes good care of the Project Affected Persons (PAPs) through R&R Policy measures thereby minimizing the trauma of displacement. The guidelines issued by the Government of India, from time to time on R&R for the on-going projects are being duly complied with. Your Company develops the Re-settlement Centres (RCs) and also provides good infrastructure facilities thereby helping the affected families to re-settle in the RCs. In addition to this, legal compensation is also being paid with the co-operation of the District Administration.

Centre for Applied Research & Development (CARD) is the in-house R&D Centre of the Company and has been recognized by the Department of Science & Technology. CARD has been granted NABL accreditation by National Accreditation Board for Testing and Calibration Laboratories (NABL) based on the international standard ISO/IEC 17025:2017.

The major functions of CARD include:

1. Carrying out Science & Technology (S&T) Research Projects,

2. Technology development, patenting and commercialization based on the R&D and Pilot Plant outcome, Coordinating for S&T Projects undertaken by the Company, institutional services to students, special studies for operation & new schemes and new initiatives etc.

3. R&D works on lignite utilization, diversification, product development, by-product utilization, solid waste management, wasteland reclamation, Renewable energy, Clean Coal Technologies, introduction of real time monitoring facilities etc.

4. Environmental monitoring, Pollution level measurements, Quality control Testing & Consultancy, Technical services.

5. Rendering analytical services towards quality control of various products/materials used in mines, Power stations and other service units as well as outside agencies on chargeable basis.

CARD has successfully developed the following pilot plants based on the outcome of the R&D studies:

1. Humic Acid

2. Separation of Iron particles from bottom slag

3. Extraction of sand from Mines overburden

4. Biofertilizer

5. Zeolite

6. Solar Drying of Lignite

7. Activated Carbon from Lignite

8. Floating Solar as a part of Business Diversification Plan.

As per the action plan announced in the CPSE-PM Conclave for "Vision New India 2022", your Company has initiated action for setting up Innovation Incubation Centre (IIC) in association with Indian Institute of Science (IISc) and with Anna University, at a total outlay of ^ 9.39 Crore. In the first wave, six tri-party agreement has been signed between innovators, NLCIL and respective institutions. Execution of 1^st wave prototype project works are in progress. In the second wave, Evaluation of Proof of Concept to take up the projects to prototype scale is in progress. In the third wave, shortlisting of PoC proposals is in progress.

The total R&D expenditure, incurred as a group during the year 2022-23 was ^ 26.98 Crore.

Your Company believes in its human assets who are the key performers driving the Company''s growth. Your Company provides a conducive working environment to its employees wherein they deliver their best potential.

Your Company strongly believes that the pursuit of excellence can be achieved only through competency building, encouraging good work practices and enabling a learning culture. Learning and Development Centre (L&DC) continuously strives to harness the in-house talents by focusing on areas like emerging technology, environmental consciousness, structured on boarding and mentoring using varied modalities and blended learning opportunities.

Apprenticeship training being provided as per guidelines of the Regional Director of Apprenticeship Training, Chennai (RDAT) and the Board of Apprenticeship Training (BOAT) of Southern Region, Chennai.

Your Company continued its faith in participative management and has a regular system of holding bipartite structured meetings with the Recognised Unions (collective bargaining agents) / Associations in addressing the common issues of the employees. The significant events of IR department during FY 2022-23 are as below:

1. Awards and Recognition

NLCIL has bagged "The Best Organisation Proactive IR Practice Award 2022" by the Southern India Chamber of Commerce and Industry (SICCI) for implementing the best IR practices at the National IR Conference and IR Awards 2022 on 17^th December, 2022.

2. Regularisation of 427 Contract Workmen

ln accordance with the settlement under sec.12(3) of the ID Act, 1947 entered into between the Contractor Employers and trade union representing contract workmen in the presence of NLCIL Management, 427 numbers of contract workmen have been regularised in NLCIL rolls.

3. Issuance of Stitched Uniform to Contract Workmen

In accordance with the settlement under Sec. 12 (3) of the ID Act, 1947 entered into between the Contractor Employers and trade union representing contract workmen in the presence of NLCIL Management, it was agreed to provide two sets of stitched uniform to the contract workmen engaged through the private Contract Employer. Accordingly, two sets of stitched uniform issued to around 10,500 contract workmen during FY 2022-23.

In General, Industrial Relations scenario in NLCIL was normal and no man hour lost during the financial year 2022-23.

The total employee strength (including subsidiaries) stood at 10,781 as on 31^st March, 2023 as against 11,246 as on 31^st March 2022.

Reservation of Posts

Your Company scrupulously follows the reservation policy applicable to SCs, STs and OBCs as prescribed in the presidential directives / GOI Guidelines. The group-wise representation of SC/ST/OBC as on 31^st March, 2023 stands as follows:

			Strength of SC/ST/OBC			% of SC/ST/OBC
Group	lotai Strength	SC	ST	OBC	SC	ST	OBC
A	3073	656	305	581	21.35	9.93	18.91*
B	223	44	9	75	19.73	4.04	33.63
C	5974	1170	67	2166	19.58	1.12	36.26
D	1511	391	5	875	25.88	0.33	57.91
Total	10781	2261	386	3697	20.97	3.58	34.29

*strength of OBCs on rolls of NLCIL after reservation for OBCs came into effect w.e.f 8^th September, 1993.

However more than required percentage of employees (covered in the Central list of OBC category) have been recruited on the strength of BC category prior to reservation for OBCs came to effect and continue to be on the rolls of the Company.

Educational facilities

Your Company is presently running 9 Schools with student strength of 4,647 nos. The schools admit children coming from peripheral villages, wards of employees, contract employees, daily wages workmen and others from economically weaker sections of society.

Scholarship Schemes and Tuition Fee Concession

Your Company provides educational assistance(scholarships) to the wards of employees belonging to General, SC/ ST, OBC category and wards of Contract Workmen for pursuing higher studies (under graduate degree / diploma / professional courses) till the duration of the course subject to a maximum of five years.

Educational Assistance	Beneficiaries during AY 2022-23	Amount Disbursed
General	333	R 32.08 Lakh
SC/ST	306	R 35.22 Lakh
OBC	552	R 63.10 Lakh
Total	1191	R 130.40 Lakh

Besides these schemes, NLCIL presents cash award to meritorious wards of employees secured 80% & above in CBSE and 90% & above in State Board 10^th & 12^th Std. exams.

In addition to the above, your Company reimburses the tuition fees every year (ranging from R15,440/- to R43,350/-per annum) for students belonging to SC/ST/ OBC category (predominantly hailing from the surrounding villages of NLCIL projects) studying in Jawahar Science College, Neyveli, patronised by your Company.

Category of students	Beneficiaries during AY 2022-23	Amount sanctioned
SC/ST	399	R 108.86 Lakh
OBC(wards of Non-NLCIL employees)	924	R 261.32 Lakh
Total	1323	R 370.18 Lakh

Medical Facilities

The Company''s health care model for protecting, preserving and promoting the health and wellbeing of workforce is a time tested one with proven results. The Company which believes that healthy workforce is the key driver of its economic well being is supporting a sustainable health care model since instituting the Hospital in 1962. NLCIL Hospital - a secondary level medical facility with a bed capacity of 350 provides the following medical care facilities/ services to the villages in and around Neyveli:

• Emergency care linked with Advanced Life Support ambulance services for inter-facility transfer of critically ill patients to higher centres. High End Cardiac Centre with State-of-the-art "Cath Lab Facility" which was established in collaboration with Shri Kauvery Medical care (India) Ltd., Trichy at NLC India Hospital, Neyveli was inaugurated on 22^nd December, 2022. The centre is equipped to handle all medical emergencies with 25 bedded Cardiac facility. Procedures like coronary angiogram, Emergency and elective coronary Peripheral Angioplasty, pace maker implantation and other procedures can be carried out in this centre.

• 8 bedded emergency unit equipped with centralized oxygen and suction lines, bed monitors, devices and mini operation theatre is capable of handling all emergencies including trauma and industrial accidents.

• Emergency care service is provided on 24 X7 basis. Patients are treated in various specialties that include General Medicine, General Surgery, Obstetrics & Gynaecology, Paediatrics, Orthopaedics, Ophthalmology, ENT, Dermatology, Chest Medicine, Psychiatry, Dental and Ayurveda Services.

• Out Patient Department (OPD) service is well supported by diagnostic facilities, pharmacy and other therapy.

• Two Renal Care Units (RCU) - RCU I run by the Company and RCU II through an outsourced facility, with a combined capacity of 28 beds provide haemodialysis service to chronic kidney disease patients.

• Surgical care services in General Surgery, Ophthalmology, ENT, Orthopaedics, Obstetrics & Gynaecology and Dental leveraging the two state of the art Theatre Complexes adequately staffed with anesthesiologists, OT Nurses and OT Technicians to support all major surgeries at secondary level.

In coordination with State health dept, the following were implemented for the benefit of the general public:

• Family Welfare Services for achieving fertility control among the local population.

• Universal Immunization programme for protecting children and adults against all infectious diseases.

• Integrated Counselling and Testing, Treatment facilities for HIV infected patients.

• Revised National Tuberculosis programme for prevention and treatment of TB among the local population.

• National Leprosy Control Programme for early detection and treatment of leprosy among local population.

• Occupational Health services that monitor health and wellbeing of workforce through medical surveillance programme.

• Community Health camps to reach out to rural population and create awareness on various health issues

• Geriatric care services to the inmates of Anandha Illam run by the Company for care of elderly persons who have no family support.

• Company has taken all the necessary steps for health and Safety of its employees by conducting 100% initial medical checkup of all employees and contract workmen , Periodical medical checkup of 100% employees and contract workmen of age more than 50 years and more than 30% for employees and contract workmen of age less than 50 years.

• ENT workstation and new IHMS application at NLC Hospital were inaugurated on 6^th March, 2023. The New ENT workstation is designed to enhance the Diagnostic aspects of Ear, Nose & Throat at the Out Patient setup itself. It has another component, the video laryngoscope helps in visualization of voice box and for assessment of voice disorders difficulty in swallowing.

• NLC India Limited has launched its latest Integrated Hospital Management System (IHMS) to manage various aspects of the daily operations.

Multi-disciplinary team approach is adopted to provide a holistic health screening experience to the beneficiaries. Disciplines of General Medicine, Obstetrics & Gynaecology, Paediatrics, Ophthalmic, Dermatology, ENT, Chest medicine, Ayurveda Medicine, Ortho, Physiotherapy and Dental from the clinical team provide comprehensive screening and wider coverage of treatment for women, children and elderly population. NLC India Hospital has successfully completed 10 medical camps in year 2022-2023.

Elders Home

To fulfil the special needs and requirements of the senior citizens, your Company runs ANANDA ILLAM in Neyveli. This elders home provides hospice & home care to the elders and help them to lead a happy and peaceful life with dignity. The employees of your Company also lend their helping hand by contributing a fixed amount every month from their salary to run the old age home.

Compliance under Persons with Disabilities Act, 2016

Your Company has evolved a comprehensive policy for Persons with Disabilities (PwDs) as per the guidelines issued by DoPT for providing certain facilities / amenities to PwDs to meet their requirements and enable them to effectively discharge their duties. The strength of PwDs as on 31^st March, 2023 stood at 212.

"SNEHA" Opportunity Services and School

Your Company implements various social welfare measures towards the cause and upliftment of the Physically Challenged Persons through Neyveli Health Promotion and Social Welfare Society (NHPSWS), "SNEHA" Opportunity Services and School both patronised by your Company. This School imparts education and training to mentally challenged children (75 children: Boys-58 & Girls-17) which includes training in vocations like arts & crafts, candle making, paper cup & cover making, carpentry, gardening, cooking and doormat weaving.

Neyveli Health Promotion and Social Welfare Society (NHPSWS)

Through the society, Tricycles, Wheel chairs, Hearing aids etc. are distributed at free of cost to the disabled persons during Independence Day and Republic Day celebrations. The society runs retail outlet shops namely VAIGHAI.

Implementation of Official Language Act, 1963

Your Company has made all concerted efforts to promote the Official Language Implementation Policy in line with the provisions and guidelines prescribed by Government of India under the Official Language Act, 1963.

In line with the Policy of Government of India and the Provisions prescribed under the Official Language Act, 1963 your Company continues to promote the Official Language and periodic Official Language Implementation Committee (OLIC) meetings are held to monitor the implementation of Official Language Policy. During the year under review, Hindi Workshops were organised besides celebration of Hindi Fortnight wherein competitions on Essay Writing, Poetry and Noting & Drafting in Hindi were conducted.

WIPS NLCIL chapter was formed in 12^th February, 1990 and is a Corporate Life Member in the SCOPE since 1990. The strength of women employees in the Company as on 31^st March, 2023 stood at 890 constituting 8.26% of Company''s human resource.

WIPS, NLCIL organised campaign supporting the Flood affected people. The WIPS, NLCIL won second position in the Best Enterprise in Navratna category for the outstanding efforts undertaken for women both in NLCIL and among society at the 33rd National meet at Kolkata on 10^th to 11^th February, 2023.

Your Company is taking pioneering efforts in the industrial safety area along with, the on-going safety related initiatives, apart from compliance of statutory requirements for enhancing safety standard in all the Mines and Thermal Plants which are given below:

• Safety audit of all the Mines is conducted by ISO Team every year and Safety audit of Thermal plants is conducted by accredited external agencies once in two years.

• Central Safety Council members comprising representatives of different units make inspection of the predetermined unit every month and present its findings to the Unit Head.

• Conducting workshops & Training on Safety by Mines and Thermal units.

• Life-Saving Rules have been prepared & implemented in all the units.

• Conducting Safety officers'' meet every month by Central Safety Wing and discussing the Safety performance, Action taken on recommendations, etc.

• Mines at Neyveli (Mine I, Mine IA & Mine II) are being operated with State-of-the-Art Technology i.e., Bucket Wheel Excavators, Spreaders, stackers and series of conveyors having inbuilt safety features.

• Standard Operating Procedures (SOPs) have been established for all the activities of the mines and thermal plants and are strictly implemented.

• Risk assessment based Safety Management Plans (SMPs) have been prepared as per Coal Mines Regulation, 2017 for all the mining activities like Bench operation, Specialized Mining Equipment (SME), Conveyor Zone, Ground Water Control (GWC), conventional Mining Equipment (CME) etc. and is being practiced.

• Pit Safety Committee meeting for the mine is conducted every month besides special safety meetings by individual divisions like conveyor division, blasting division, electrical division etc. Similarly, Unit Safety committee meeting is conducted by all thermal plants every month.

• Weekly Safety inspections of Mines, Thermal plants and other units are being carried out by Central Safety Wing executives and inspection report is submitted to Unit Heads for compliance and improvement in safety standard.

• NLCIL Industrial Medical Centre has been recognised as training centre for imparting First Aid Training by DGMS (Directorate General of Mines Safety).

A comprehensive Integrated Risk Management Policy and Frame work as approved by the Board is in place in your Company. Besides risk prioritization, the roles and responsibilities of the Members are clearly defined. As per the policy, an Internal Risk Review Committee (below Board level) review the risks on a quarterly basis. The risk assessment together with the minimization procedure is reviewed by the Risk Management Committee, Audit Committee and the Board periodically.

The activities undertaken by Vigilance Department are Pro-active & Punitive and other measures to sensitize the employees of the Company. Complaints received in the department are dealt based on the "Complaint Handling Policy" and are processed through the Complaint Tracking System (CTS) from receipt up to disposal. As a preventive measure, Surprise Checks, Regular Checks, Quality Checks, Follow-up Checks and CTE Type Examinations are conducted.

As a part of Preventive Vigilance exercise, Customized Training Programmes on "Learning Through Vigilance Cases, Quiz Competition" were conducted at Thermal Units, various Mines, Offices at Neyveli, Barsingsar Project, NTPL, NUPPL & Talabira Project to sensitize the officials on Contracts/ Purchase and various CVC guidelines issued in this regard through Vigilance case studies.

New e-initiatives viz., Digitalization of Land Management portal, Mine Vehicle Tracking system Mobile Application & Project Affected Persons Data Management System were inaugurated.

Quarterly Structured Review meeting with CMD were undertaken for reviewing Vigilance Activities. The required Monthly, Quarterly and Annual reports on Vigilance activities are furnished to CVC and Ministry of Coal.

Your Company is committed to have most ethical business dealing with the Vendors, Bidders and Contractors of goods and services and deal with them in a transparent manner with equity and fairness. To achieve these goals, your Company is implementing the Integrity Pact Programme in co-operation with Central Vigilance Commission (CVC) and renowned International Non-Governmental Organisation, Transparency International India (TII). Integrity Pact with the suppliers / contractors for all Tenders with an estimate of ^ 1 Crore rupees and above are monitored.

During the year 2022-23, two Structured meetings are held with the Independent External Monitors (IEMs) wherein procurement and contract related issues and complaints are taken up. During the period, IEMs held 11 review meetings wherein, the orders covered under Integrity Pact were reviewed and held 8 meetings with Contractors for the Tender/ Contract related issues raised by the Contractors/Vendors.

To protect against cyber security threats, your Company has a maze of protective equipment like Network and Web application firewall for perimeter security and antivirus protection to desktops/laptops.

Your Company has undertaken the following initiatives while transforming to digital culture:

a. SAP ERP is used as the enterprise software for core business.

b. E-Procurement of products and services through a common portal.

c. Email, intranet, SMS services help for dissemination of information. Virtual Private Network (VPN) has enabled extended office connectivity.

d. Video Conferencing and virtual meetings are being conducted with remote Projects & Business units.

e. Pro-Active and Digital Initiatives like E-office, Document Management System and E-payments have ensured digitization of documents and paperless processes. These have enabled e-governance by ushering in more effective and transparent processes.

f. Supported by a robust network infrastructure with the project sites connected by MPLS, Hyper Converged Infrastructure for Servers, your Company is in the process of embracing new technological platforms to make the infrastructure more robust and seamless.

g. Your Company has taken measures to maintain Inventory of all Critical Information assets with risk Assessment and Business Impact Analysis and Contingency plan for IT systems for strengthening Cyber Security of the organization.

h. The digitisation efforts has been a definitive step towards making the internal processes robust and unified which is contributing immensely towards addressing the Environment Social Governance (ESG) parameters for the Company.

Your Company has set up a software based Legal Compliance Management System (LCMS) for effectively monitoring and ensuring compliances of all legal provisions applicable to the Company.

Your Company, as a socially responsible corporate citizen, continues to carry out developmental works in the surrounding villages, right from its inception, focusing on the socio economic development of the operating regions for achieving inclusive & sustainable growth.

Your Company is adopting a Corporate Social Responsibility Policy covering the various sectors of sustainable socioeconomic development. Your Company focuses on healthcare, education, sanitation, safe drinking water, hunger, poverty and malnutrition eradication, women empowerment, gender equality, environment sustainability, rural sports, protection of National Heritage, Arts and Culture, Rural Development, Water Resource Augmentation. The funds utilised for the CSR projects, programs and activities selected for implementation are as per the CSR Policy of the Company which is available in the website in the following link https://www.nlcindia.in/new website/index.htm During the year 2022-23, your Company had spent ^43.07 Crore which is more than 2% of the average net profits of the Company for the last three years.

The details on specific Corporate Social Responsibility projects undertaken in compliance with Section 135 of the Companies Act, 2013 is placed as Annexure- 1.

In recognition of its various activities, your Company, has been conferred with the following awards during the year 2022-23:

> Greentech Intl. EHS award supported by MoEF & CC - Winner for outstanding achievements in Environment Leadership.

> Grow Care India Environment Excellence Platinum Award 2021- under Environment Preservation Category.

> Fly Ash Utilization Award 2022- For efficient management of Fly ash management in NLCIL (Southern Region) by Mission Energy Foundation.

> TPS II conferred as Winner under "Best Performing Unit" presented by National Power Plant Awards - 2023 -Council of Enviro Excellence (CEE).

> Mine II bagged Green Tech Environment Award 2023 Winner under Environmental Preservation category.

> TPS-I Expn conferred with CBIP award 2022 for best performing thermal power station in the country.

> TPS-II received the Best Performing Unit award in the category of IPP Lignite - Between 125 to 250 MW in recognition of outstanding achievements in exceptional unit performance, efficiency and reliability from Council of Enviro Excellence.

> BTPS has been awarded with "Gold Award" by Apex India Green Leaf Awards 2021 in Thermal Sector for environment excellence and energy efficiency during the FY 2022-23.

> BTPS won Environment Excellence Awards from Mission Energy Foundation in two categories of Clean Generator of the Year - Lignite and Excellence in implementation of New Environmental Norms existing TPPs during FY 2022-23.

> BTPS awarded with "Gold Award" for the 13^th Exceed Occupational Health Safety Award & Conference 2022 in Power Sector during the FY 2022-23.

> Barsingsar Project has been selected as Winner under Leading Project of the Year Category for Greentech Intl. Leadership Awards 2023 in FY 2022-23.

> BTPS awarded with "Excellent Award" for the "National Convention on Quality Concepts." (NCQC-2021)

> BTPS has been awarded with winner prize for 100% Fly ash utilization by Mission Energy Foundation during the FY 2022-23.

> TPS-II Expansion has bagged "Occupational Health and Safety Award - Gold Award" for Occupational Health and Safety from sustainable development foundation in Nov-22 at Goa.

> TPS-II Expansion has bagged "Kalinga Safety Award - Platinum category" in National Safety Conclave 2022 at Bhubhaneswar.

> NLCIL Stood 1^st Place for timely payment and 2^nd place in overall ranking among the top 20 CPSEs in GeM Procurements as per updates dt. 16^th March, 2023.

> Developer of Year in PSU Category award at EQ''s SuryaCon Coimbatore Conference Tamil Nadu State Annual Solar Awards on 02^nd February, 2023.

> NNTPS bagged the prestigious award of "Winner - Southern Region" for Excellence in Environment Sustainability 2022 as the best efficient plant in IPP - Fly Ash Utilization category organized by Council of Enviro Excellence (CEE) in the virtual event held on 18^th August, 2022.

> NNTPS was awarded "GOLD AWARD" by Sustainable Development Foundation supported by Ministry of Labour Employment GOI for power sector for Occupational Health and Safety in the event held in Goa on 25^th November, 2022.

> NNTPS bagged "Green Leaf Award-2021" for Environment Excellence from Apex India Foundation on 5^th May, 2022.

> NNTPS bagged the prestigious award of "Winner- Best Performing Unit" in the category of IPP Lignite - above 250MW organized by Council of Enviro Excellence (CEE) in the virtual event held on 14^th March, 2023 for National Power Plant Awards Year 2023.

> Mine II has been bestowed with the most prestigious "NATIONAL SAFETY AWARD 2021" for lowest injury frequency rate per million cubic meter output.

> Barsingsar Lignite Mine awarded with Overall First Prize in the Safety Week Celebration- 2022-23 under aegis of DGMS, Northern Zone.

> 5 Star Rating

^ Mine-I (2^nd Place), Mine-II (1^st Place), BLMP (14^th Place) & Talabira II & III OCP (13^th Place) for FY 2020-21.

^ Mine-I (1^st Place), Mine-II (10^th Place), BLMP (3^rd Place) Talabira II & III OCP (15^th Place) for FY 2021-22.

> 4 Star Rating

^ Mine-IA (16^th Place) for FY 2020-21.

^ Mine-IA (32^nd Place) for FY 2021-22.

Your Company ensures compliance under the Right to Information Act, 2005. Central Assistant Public Information Officers representing different functional areas, Nodal Officer, Central Public Information Officer, Appellate Authority and Transparency Officer have been nominated to attend to the queries and appeals received under the RTI act in a time bound manner.

During the year 2022-23 under the above Act, 468 applications containing 1,759 queries were received and 449 applications have been disposed off as on 31^st March, 2023. 76 RTI First Appeal have been received out of which 74 have been disposed as on 31^st March, 2023.

The Ministry of Micro, Small and Medium Enterprises (MSMEs) has notified the Public Procurement Policy. The total procurement made from MSMEs during the year 2022-23 was 33.64% as against the target of 25%. Your Company has on boarded on Trade Receivable e-Discounting System (TReDS), a platform which facilitates the financing of trade receivables of MSMEs from corporate and other buyers, including Government Departments and Public Sector Undertakings (PSUs), through multiple financiers.

During the year 2022-23, your Company as a group has procured goods & services from Government e-Marketplace (GeM) Portal for ^ 1,028 Crore. Efforts are being continuously made to maximize the procurement in GeM Portal by using the functionality of "Custom Bid" introduced in GeM during the year 2020.

Your Company maintains Citizen''s Charter, indicating details of clients, customers under different heads, different system of redressal of grievance etc. and the same is regularly updated.

The particulars required under Section 134(3)(m) of the Companies Act, 2013 regarding conservation of energy, technology absorption and foreign exchange earnings and outgo are furnished in Annexure-2.

The Management Discussion & Analysis Report is furnished in Annexure-3. The report on Corporate Governance on the compliance of Corporate Governance conditions stipulated by SEBI (Listing Obligations and Disclosure Requirements) Regulation,2015 and the DPE guidelines on corporate governance is furnished in Annexure-4.

The Auditors'' Certificate on the compliance of above Corporate Governance Conditions is furnished in Annexure - 5. Annual Return

In accordance with the Companies Act, 2013, the annual return in the prescribed format is available at https://www. nlcindia.in/investor/AR1.pdf.

Particulars of Contracts or Arrangements with Related Parties

All related party transactions entered during the year 2022 - 23 were in the ordinary course of the business and are on an arm''s length basis. The disclosure of related party transactions as required under Section 134(3)(h) of the Companies Act, 2013 in Form AOC 2 is not applicable to your Company. Members may refer to note no. 38 to the financial statement which sets out related party disclosures pursuant to Ind AS-24.

Declaration by Independent Directors

The Independent Directors have given a declaration on meeting the criteria of independence as stipulated in Section 149(6) of the Companies Act, 2013 & Regulation 25(8) SEBI (LODR) and they have registered their names in the Independent Directors'' Databank.

Particulars of Employees

As per provisions of Section 197(12) of the Companies Act, 2013 read with Rule 5 of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014, every listed Company is required to disclose the ratio of the remuneration of each Director to the median employee''s remuneration and details of employees receiving remuneration exceeding limits as prescribed from time to time in the Directors'' Report.

However, as per notification dated 5^th June, 2015 issued by the Ministry of Corporate Affairs, Government Companies are exempted from complying with provisions of Section 197 of the Companies Act, 2013. Therefore, such particulars have not been included as part of Directors'' Report.

Disclosures with respect to Demat Suspense Account/ Unclaimed Suspense Account in terms of SEBI (Listing Obligations and Disclosure Requirements) Regulations,2015.

As on 31^st March, 2023, there were 1000 shares pending unclaimed in the Demat Suspense Account/unclaimed Suspense Account.

Material changes affecting financial position occurring between the end date of Financial Year and the date of the Report.

There are no material changes affecting the financial position of the Company between the end of the Financial Year and the date of this Report.

Sexual Harassment of Women at Workplace:

As required under Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013, suitable mechanisms were put in place in NLCIL to address the issues faced by women employees. A separate Internal Complaints Committee has been constituted for looking into the complaints relating to sexual harassment of women at workplace. During the year 2022-23, one complaint was received and same has been resolved and as such no case is pending.

Statutory Audit

M/s. R Subramanian and Company, LLP, Chartered Accountants and M/s. Manohar Chowdhry & Associates, Chartered Accountants were appointed by the Comptroller and Auditor General of India (C&AG) as the Joint Statutory Auditors for the year 2022-23 under Section 139 of the Companies Act, 2013. The Board of Directors of your Company has fixed ^ 45 lakh plus applicable taxes as the Statutory Audit fees for the year 2022-23, to be shared equally by the Joint Statutory Auditors.

Branch Audit

M/s. Dhoot & Associates, Chartered Accountants, has been appointed as the Branch Auditor for the year 2022-23 by C&AG for conducting the audit of Mine and Thermal Units at Barsingsar. The Board of Directors of the Company has fixed ^5.0 lakh plus taxes as the Branch Audit fees for the year 2022-23.

M/s. Kadmawala & Co., Chartered Accountants, has been appointed as the Branch Auditor for the year 2022-23 by C&AG for conducting the audit of Mines at Talabira. The Board of Directors of the Company has fixed ^5.0 lakh plus taxes as the Branch Audit fees for the year 2022-23.

Secretarial Audit

M/s. Kumar Naresh Sinha & Associates, Practicing Company Secretaries, was appointed as the Secretarial Auditor for the year 2022-23. The Secretarial Audit report for the year 2022-23 & the reply to observations of the Secretarial Auditors and the Secretarial Auditor Reports of the Subsidiary Companies are furnished in Annexure-6.

Cost Audit

M/s. R.M. Bansal and Co., Kanpur, was appointed as the Cost Auditor for the year 2022-23 to conduct Cost Audit for Mines & Power Stations of the Company.

In accordance with the provisions of Section 148(1) of the Act, read with the Companies (Cost Records and Audit) Rules, 2014, the Company has maintained Cost Accounts and Records.

C&AG''s Comments:

Comments of the Comptroller & Auditor General of India (C&AG) on the Financial Statements of the Company for the year ended 31^st March, 2023 under Section 143(6)(b) of the Companies Act, 2013 along with the Management reply to the comments thereon are furnished in Annexure-7.

Directors'' Responsibility Statement as per Section 134(3)(c) & 134(5) of the Companies Act, 2013:

The Board of Directors declares that:

a. In the preparation of the annual accounts, the applicable accounting standards had been followed along with proper explanation relating to material departures;

b. The Directors had selected such accounting policies and applied them consistently and made judgments and estimates that are reasonable and prudent so as to give a true and fair view of the state of affairs of the Company at the end of the financial year and of the Profit and Loss of the Company for that period;

c. The Directors had taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions of the Companies Act, 2013 for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities;

d. The Directors had prepared the annual accounts on a going concern basis;

e. The Directors, had laid down internal financial controls to be followed by the Company and that such internal financial controls are adequate and were operating effectively; and

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

Appointment

Details of appointment of Directors on the Board of the Company are as under:

a. Shri M T Ramesh has been appointed as Independent Director w.e.f. 06^th April, 2022.

b. Shri Suresh Chandra Suman has been appointed as Director (Mines) w.e.f. 11^th May, 2022 and also appointed as a Director (Finance) additional charge w.e.f. 01^st January, 2023.

c. Shri Prasanna Kumar Motupalli has been appointed Chairman and Managing Director w.e.f. 12^th January, 2023.

d. Smt. Vismita Tej, Additional Secretary, Ministry of Coal, Government of India has been appointed as Government Nominee Director, w.e.f. 22^nd February, 2023.

e. Shri Samir Swarup has been appointed as Director (Human Resources) w.e.f. 27^th February, 2023.

f. Shri M. Venkatachalam has been appointed as Director (Power) w.e.f. 26^th April, 2023.

g. Dr. Beela Rajesh, Principal Secretary to Government of Tamil Nadu, Energy Department has been appointed as Government Nominee Director w.e.f. 10^th July, 2023.

Cessation

The following Directors relinquished from the Board of Directors of the Company:

a. Shri N K Narayanan Namboothri and Shri Muralidhar Goud ceased to be Independent Directors w.e.f. 10^th July, 2022.

b. Shri Jaikumar Srinivasan ceased to be Director (Finance) w.e.f 22^nd July, 2022.

c. Shri Rakesh Kumar ceased to be Chairman and Managing Director w.e.f. 1^st January, 2023 due to superannuation.

d. Shri Shaji John ceased to be Director (Power) w.e.f. 1^st February, 2023 due to superannuation.

e. Shri M. Nagaraju, Additional Secretary, Ministry of Coal ceased to be Part-time Official Director, w.e.f. 22^nd February, 2023 due to change in nomination.

f. Shri Ramesh Chand Meena, Additional Chief Secretary to Government of Tamil Nadu, Energy Department ceased to be a Part - time Official Director w.e.f. 10^th July, 2023 due to change in nomination.

Key Managerial Personnel:

a. Shri K. Viswanath relieved as Company Secretary of the Company under Voluntary Exit Scheme w.e.f. 01^st December, 2022.

b. Shri R. Udhayashankar was appointed as Company Secretary of the Company w.e.f. 01^st December, 2022.

c. Shri Suresh Chandra Suman, Director (Mines), holding the additional charge of Director (Finance) was appointed as Chief Financial Officer w.e.f. 01^st January, 2023.

Your Directors wish to place on record their whole-hearted appreciation for the valuable guidance and services rendered by them during their tenure as Directors on the Board of the Company.

Further, pursuant to Section 152 of the Companies Act, 2013, Shri K. Mohan Reddy, Director, will retire by rotation at the ensuing Annual General Meeting and being eligible offer himself for the re-appointment.

Reporting of Frauds by Auditors

During the year under review, the Statutory Auditors, Cost Auditors and Secretarial Auditor have not reported any instances of frauds committed in the Company by its Officers or Employees to the Audit Committee under section 143(12) of the Companies Act, 2013.

Adequacy of internal financial controls with reference to the Financial Statements

Your Company has, in all material aspects, an adequate internal financial controls system over financial reporting and such internal financial controls over financial reporting were operating effectively as at 31^st March, 2023, based on the internal control over financial reporting criteria established by the Company, considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the ICAI.

Acknowledgement

The Board of Directors of your Company places on record its sincere appreciation for the continued support and guidance extended by the Ministry of Coal, Ministry of Power, Ministry of New and Renewable Energy, Ministry of Finance, Ministry of Environment & Forest and Climate Change, Ministry of Mines, Ministry of Personnel, Public Grievances and Pensions, Ministry of Jal Sakthi, Ministry of Industry, Ministry of Labour and Employment, Ministry of Railways, Ministry of Heavy Industries, Ministry of Road Transport and Highways, NITI Aayog, DIPAM, DPE, Central Electricity Authority, Central & State Government Departments, Central & State Electricity Regulatory Commissions, Andaman & Nicobar Islands Administration, State Electricity Boards and beneficiaries of Tamil Nadu, Andhra Pradesh, Telangana, Karnataka, Kerala, Puducherry and Rajasthan and also the Joint Venture Partners, viz., Tamil Nadu Generation and Distribution Corporation Limited(TANGEDCO), Uttar Pradesh Rajya Vidyut Utpadan Nigam Limited (UPRVUNL), Coal India Limited, Mahanadi Coalfields Limited and Hindalco.

The Board of Directors of your Company is pleased to acknowledge with gratitude the cooperation and continued support extended by the Governments of Tamil Nadu, Rajasthan, Uttar Pradesh, Jharkhand and Odisha, V.O.C. Port Trust, Tuticorin and the District Administrations of Cuddalore, Tuticorin, Bikaner, Andaman & Nicobar, Sambalpur, Jharsuguda, Kanpur Nagar and Dumka. The support and co-operation extended by the Comptroller and Auditor General of India, Statutory Auditors, Branch Auditor, Internal Auditors, Cost Auditor, Secretarial Auditor, Director General of Mines Safety, Directorate of Industrial Health & Safety, Boiler Inspectorates, Chief Inspector of Factories, the Director of Boilers, Central Pollution Control Board, State Pollution Control Board, Chief Controller of Explosives, Chief Vigilance Commissioner, Coal Controller Officers, Regional Labour Commissioner, Regional Provident Fund Commissioner and other Statutory Authorities, the Company''s Bankers, Financial Institutions and KfW of Germany, Vendors, Suppliers, Contractors and other valued Stakeholders need special mention and the Directors acknowledge the same.

Your Directors also wish to place on record their appreciation for the dedicated work put forth by the Employees at all levels.

The positive role played by the recognized Trade Unions and Associations of the Engineers and Officers in maintaining cordial industrial relations deserves special mention.

For and on behalf of the Board of Directors

Place: Neyveli Prasanna Kumar Motupalli

Date: 30^th August, 2023 Chairman and Managing Director

---

Mar 31, 2022

It is indeed my proud privilege on behalf of our Board of Directors to present the 66^th Directors'' Report on the business and operations of the Company together with the Audited Financial Statements for the year ended 31^st March, 2022 together with the Auditors'' Report and comments on the accounts by the Comptroller and Auditor General (C&AG) of India.

Major Highlights

The Financial Year 2021-22 has been a year of good achievements for your Company with all round performance. The significant highlights of achievements during the year 2021-22 are as follows:

• Highest ever power generation by NLCIL Group — 29.20 Billion Units (BU), an increase of 18.64% over the previous year 2020-21. Highest ever power export by NLCIL Group - 25.89 BU, registering an increase of 19.75% over the last year.

• Highest ever RE Generation — 2184 Million Units (MU), an increase of 5.93% over the previous year 2020-21.

• Increase in Lignite Production by 30% and highest ever lignite sales of ? 830 crore.

• Coal Production touched a new high of 6.36 Million Tonnes - 527% increase over the last year.

• Highest ever revenue collection — ? 15,486 crore with a collection efficiency of 146%.

• Registered a Standalone Total Income of ? 10,662.37 crore with a growth rate of 19% over the last year.

• Registered Standalone Profit After Tax of ?1,236.78 crore, with a growth rate of 22% over the last year.

Operational Performance Power

The total power generating capacity of the Company as on 31^st March, 2022, including wind and solar power generation is 5061.06 MW and including the capacity of NTPL, the Subsidiary Company, the total power generating capacity of NLCIL Group is 6,061.06 MW.

During the year 2021-22, the total Power Generation (Gross) was 25,022.36 Million Units (MU) and the power generation including Power surrender was 25,828.15 MU, as against 19,322.00 MU and 20,317.74 MU, respectively achieved during the year 2020-21. The average Plant Load Factor (PLF) of the Thermal Power Plants of the Company during the year 2021-22 was 71.63% as against the National Average of 58.87%. The Power Export during the year 2021-22 was 22,041.09 MU as against 16,723.92 MU achieved in the year 2020-21.

Mining - Lignite & Coal

Your Company is presently operating three opencast lignite Mines at Neyveli in the State of Tamilnadu and one opencast lignite Mine at Barsingsar in the State of Rajasthan. The total mining capacity of all the lignite Mines is 30.60 MTPA. Your Company has also started Coal mining operations in Talabira II & III Opencast coal Mines at Odisha, with a mining capacity of 20.0 MTPA, from 26^th April 2020. Thus, the total mining capacity of your Company has increased to 50.60 MTPA.

During the year 2021-22, the total overburden (OB) removed in the Lignite & Coal Mines was 1531.14 lakh Cubic Metre (LM³) as against 1501.62 lakh Cubic Metre (LM³) removed in the year 2020-21. The Lignite Production in the year under review was

251.13 lakh Tonne (LT) as against 192.62 LT during the year 2020-21 while the coal production achieved was 63.58 LT as against

10.13 LT during the year 2020-21.

The raw lignite sales to TAQA, the IPP and as direct sales during the year 2021-22 was 14.60 LT & 17.62 LT, respectively as against 9.32 LT & 7.43 LT, respectively achieved in the year 2020-21. The Coal sales from the Talabira Coal Mines during the year under review was 63.69 LT as compared to 7.00 LT during the year 2020-21.

With respect to coal production in Talabira Mines, considering the high demand of coal especially for power generation, your Company has taken steps to achieve production of 6.0 MTPA as against the original target of 4.0 MTPA and further to 8.0 MTPA, during the current year. Your Company is also taking all out efforts to augment the Coal production of Talabira Mine. This will not only provide fuel security to End Use Plants but also make available coal in the market. The coal produced is being supplied to one of the End Use Plant viz., NTPL''s Plant at Tuticorin, Tamilnadu.

Sale of excess Coal

Recent Amendment to Mines and Minerals (Development and Regulation) Act and Mineral Concession Rules by Ministry of

Coal, Govt. of India on 1^st October 2021 has enabled the Mine for sale of excess Coal after meeting the coal requirement of End Use Plant. During the year under review Ministry of Coal (MoC) granted approval allowing your Company to sell excess coal through e-auction for a maximum quantity of 19 LT in first half of FY 2021-22 and 12.50 LT in the second half of FY 2021-22, subject to certain conditions and the said sale has been duly completed. Further approval has also been granted by MoC for the sale of coal upto 75% of coal production till 31^st March 2026 after meeting the requirements of End Use plants subject to certain conditions.

Productivity

The output per man-shift achieved during the year 2021-22 as compared with the previous years are given below:

Product	Unit	2021-22	2020-21
Lignite	Tonne	18.09	14.07
Power	KwHr	39,662	25054

Financial Performance

During the year ended 31^st March, 2022, your Company on a Standalone basis had registered a revenue from operations of ?9,856.48 crore as against ?7,249.63 crore during the year 2020-21. The Profit Before Tax (PBT) and Profit After Tax (PAT) for the year 2021-22 were ?2,606.42 crore and ?1,236.78 crore respectively, as against ?1,722.07 crore and ?1,010.46 crore respectively during the previous year ended 31^st March, 2021.

On a consolidated basis, the total revenue from operations for the year 2021-22 was ?11,947.94 crore as against ? 9,846.09 crore in 2020-21. The PBT and PAT for the year 2021-22 were ?2,603.14 crore and ?1,115.65 crore respectively as against ? 2,223.07 crore and ?1,314.11 crore respectively in the year 2020-21.

The details of profit earned for the financial year 2021-22 and appropriation of the same are as follows:

(? crore)
	Standalone		Consolidated
Particulars	2021-22	2020-21*	2021-22	2020-21*
Revenue from operations	9,856.48	7,249.63	11,947.94	9,846.09
Profit Before Tax	2,606.42	1,722.07	2,603.14	2,223.07
Tax Provision	1,369.64	711.61	1,488.01	909.03
Profit /(Loss) for the Period (PAT) Appropriation	1,236.78	1,010.46	1,115.65	1,314.11
Transfer (to) / from Interest Differential Fund Reserve	(4.90)	(6.70)	(4.90)	(6.70)
Transfer to PRMA Reserve Fund	(1.50)	(7.18)	(1.50)	(7.18)
Transfer to Contingency Reserve	(10.00)	(10.00)	(10.00)	(10.00)
Dividend (Interim / Final )	(416.00)	(138.66)	(456.92)	(145.88)
Tax on Dividend	-	-	-	-
Ind AS - 116 Lease adjustment	-	-	-	-
* Restated

Share holding of GoI

The present shareholding of the President of India in the Company is 79.20%.

Projects under implementation

The details of projects under implementation are as under:

Mine IA Expansion

This Expansion Project is being implemented to expand the Mine IA from 3.0 MTPA to 7.0 MTPA at a cost ? 709.06 Crore. The achieved physical progress is 70.47% and the cumulative expenditure incurred on this project upto 31^st March 2022 is ? 526.11 Crore. The COD of the project declared from 01.04.2022 and expected to attain the normative capacity of 7.0 MTPA by the year 2027-28. The area of concern is the acquisition of required land for the capacity expansion and the same is being pursued with the State Administration for appropriate resolution.

Lignite to Methanol

As an diversification initiative, your Company has intended to set up the Methanol Project utilizing the lignite from Neyveli Mines and based on the Feasibility Study carried out by PDIL, the Board of Directors of your Company has accorded approval for implementing the above lignite gasification based Methanol Project at Neyveli with a capacity of 1200 Tonnes per Day (TPD) on Lump Sum Turnkey (LSTK) mode, at an estimated cost of ?4,394 crore. Engineers India Limited (EIL) has been appointed as the Project Management Consultant for this Project and floating of tenders are in process. Prior to the investment decision, this project would be evaluated based on the final bid price the aforesaid tender. This Project is anticipated to be completed within 42 months from the zero date.

150 MW ISTS-connected Wind-Solar Hybrid Power Projects

Your Company had participated in the 1200 MW Wind & Solar Hybrid RfS floated by SECI for a capacity of 150 MW and emerged as a successful bidder with a quoted tariff of ?2.34/ Unit. Letter of Award has been received from SECI to this effect. Your Company is in the process of floating domestic competitive bidding for setting up of 100 MW Solar Power Projects and 50 MW Wind Projects on Pan India basis.

510 MW grid connected solar power projects in India under CPSU scheme Phase - II

Your Company has also bagged 510 MW capacity in the CPSU Scheme of IREDA for setting up 510 MW Solar Projects. Letter of award has been received from IREDA. Discussions are being held with the prospective Government Users for firming up of the Power Usage Agreement, tenders would be floated inviting bids for setting up of the Solar Power Projects. Under this CPSE Scheme, Letter of Award has been issued for setting up 10 MW Solar Plant at Neyveli Township as part of Smart City initiatives.

Thermal Power Station II 2^nd Expansion (TPS II 2^nd Expansion - 2 X 660 MW)

Thermal Power Station II 2^nd Expansion (TPS II SE) is a lignite based thermal power plant of capacity 1320 MW with two units of 660 MW capacity each proposed to be set up at Mudanai village (near Neyveli), Cuddalore District, Tamil Nadu which is linked to Lignite Mines of Neyveli. Similar to NTTPP, this project is also proposed to be set up based on the state of the art Ultra Super-critical technology, compliant with latest emission norms. All necessary approvals for setting up the project including the Environmental Clearance have already been obtained. TANGEDCO has expressed their willingness to procure the entire 1320 MW from this proposed project. Land for the project is already in possession of your Company. Consent to Establish is also available. The first unit of the project is scheduled to be commissioned in 50 months from the date of award of the Contract and the second unit with a phase shift of 6 months.

Overburden (OB) to Sand

Your Company''s in-house research centre, CARD had earlier undertaken a research project jointly with IIT/Madras for conversion of OB materials into aggregates and that the preliminary study indicated that OB materials contain 40% to 70% sand & considerable quantity of clay. Based on the above research study and the Feasibility Report, the Board of Directors of your Company has accorded approval for establishing one sand beneficiation plant each at Mine I, Mine IA and Mine II at Neyveli.

Bithnok Lignite Mine Project linked to Bithnok Thermal Power Project and the Hadla Lignite Mine Project linked to Barsingsar Thermal Power Extension Project

As informed to the shareholders in the previous reports of Directors, the Bithnok Lignite Mine Project linked to Bithnok Thermal Power Project and the Hadla Lignite Mine Project linked to Barsingsar Thermal Power Extension Project have been kept presently on hold. The contract awarded to Reliance Infrastructure Limited, for execution of the Projects on turnkey basis have been foreclosed. Discussions with Government of Rajasthan are in progress for exploring for various options, including supply of hybrid power i.e., thermal & solar power, with reduced power tariff so that the land acquired for the above Projects are effectively utilised. MoC has been requested to delink Bithnok Mine Project from Thermal Power Station in order to open up the mine for commercial operation.

Mine III

The project with a peak rated capacity of 11 MTPA encompassing a project area of 4842 Ha is proposed to be commissioned to fuel the requirement of TPS II 2nd Expansion at an estimated cost of ?3755.71 Crore. The block has a mineable reserve of 415 MT. obtaining of all necessary approvals for commencement of mining project is in progress. The project expected to commence its operations by 2026.

Projects under formulation

The details of projects under formulation are as under:

NLC Talabira Thermal Power Project (NTTPP - 3 X 800 MW)

NLC Talabira Thermal Power Project (NTTPP), a coal based thermal power project of capacity 2400 MW with three units of 800 MW capacity each, is proposed to be set up at Jharsuguda District in the State of Odisha, linked to the allocated captive mine at Talabira. The proposed plant will be of state of the art Ultra Super-critical technology, compliant with latest emission norms. All statutory approvals for setting up the project including the Environmental Clearance have already been obtained. Power Purchase Agreement for the off-take of 1600 MW power from this project has already been signed with TANGEDCO (for 1500 MW) and Puducherry Discom (for 100 MW). Signing of PPAs with KSEB Kerala (for 400 MW) and GRIDCO Odisha (for 400 MW) are expected shortly. The land acquisition for the project is in progress. The EPC Notice Inviting Tender for the project has been floated and techno-commercial bids opened on 12-07-2022, QR evaluation is under progress. The first Unit of the project is scheduled to be commissioned in 52 months from the date of award of the EPC Contract and the other units with a phase shift of 6 months each.

Green Energy

Considering the thrust being given by Government of India for green energy and competitive market of renewable energy, together with the tax benefits available to new manufacturing companies, the Board of Directors of your Company, subject to approval of Government of India, has accorded approval for forming a wholly owned subsidiary company to undertake future renewable power projects.

Commercial Mining

Recently GOI has launched the auction process for commercial mining of various coal blocks across the Country. As Members may be aware that GOI with a view to increase the coal production has removed various restrictions including the end use criterion. It is expected that the demand for coal would continue to be in existence and the total demand for Non-Coking Coal is forecasted at 1331 MT by the year 2047. As part of its growth plan, based on the exploration status, geological reserves, topographical features, tentative ratio, local issues and other relevant data, your Company has short-listed two coal blocks in IB valley, namely i) Rampia and Dip Side of Rampia and (ii) Ghogharpalli & its Dip Extension in Sundargarh district, Odisha for bidding for commercial mining.

Status on CAPEX performance in 2021-22 including by Subsidiaries

Product	Annual Target (? In crore)	Actual CAPEX (? In crore)	%age of achievement
NLCIL - Standalone	311.00	560.73	180.30
Pachwara Coal Block of NUPPL	250.00	4.36	1.74
NTPL	--	74.90	--
NUPPL - GTPP	1,500.00	1,901.77	126.78
Total	2061.00	2,541.76	123.33

Corporate Plan 2030 Mining Projects

Currently your Company operates four opencast Lignite Mines with an aggregate capacity of 30.6 MTPA. After restructuring of Neyveli Mines and commissioning of Mine - III, the aggregate lignite mining capacity is expected to reach 40.10 MTPA by the FY 2030.

In the Coal Sector, presently your Company operates an open cast coal mine of capacity 20 MTPA at Talabira, in the State of Odisha and through NUPPL, its Subsidiary, your Company is developing the Pachwara South Coal Block in the State of Jharkhand, with a capacity of 9 MTPA. Your Company has intended to enter into commercial mining of coal, with a planned addition of 15 MT, thereby envisaging an aggregate mining capacity of 44 MTPA in the Coal Sector.

Total CAPEX projected for FY 2022-30 for the mining projects is ? 8351 crore.

Power Generation Projects

Your Company is currently operating five lignite based thermal power stations, four at Neyveli, in Tamil Nadu and one at Barsingsar, in Rajasthan, with an aggregate capacity of 3,640 MW. Your Company through NTPL, the Subsidiary, is operating one coal based thermal power plant of 1,000 MW (2 X 500 MW) capacity. On implementation of two Coal based Thermal Power Projects viz GTPP (NUPPL) of capacity 1980 MW (3X660 MW) and Talabira Thermal Power Project of capacity 3200 MW (4 X 800 MW), the power generation capacity would reach 9820 MW. The Projected CAPEX for the Thermal Energy is ? 34,834 crore.

On Renewable front, by 2030, NLCIL plans to increase its capacity from 1421 MW to 6031 MW by implementing various Solar & Wind Projects. The Projected CAPEX for Renewable Energy is ? 23,403 crore

Diversification Projects:

NLCIL has adopted the diversification strategy and has ventured into implementation of OB to Sand and Lignite to Methanol projects and has earmarked a capex of ? 4397 crore

The total capital expenditure for mining, power generation, and diversification businesses has been projected to be ? 70,985 crore during FY 2022-30.

Subsidiaries /Joint Venture (JV) ProjectsNLC Tamil Nadu Power Limited (NTPL) - A Joint Venture between NLCIL and TANGEDCO Tuticorin Power Plant (1000 MW) in Tamil Nadu

As Members may be aware that NTPL, the Subsidiary Company is operating a 1000 MW coal based thermal power plant in

Tuticorin in the State of Tamil Nadu. During the year 2021-22, the total Power Generation (Gross) of NTPL was 4,182.46 MU (excluding power surrender) as against 5,290.58 MU registered in the year 2020-21. The short-fall in power generation during the year 2021-22 as compared to the last financial year was mainly on account of shortage of coal witnessed during the year and because of power surrender. To mitigate the coal shortage issue, agreement has been entered into amongst MCL, NTPC, NTPL and your Company for transferring 2.4 Million Tons of coal from MCL to NTPL, against the transfer of equivalent quantum of coal from Talabira II & III OCP Mines to NTPC Talcher Kaniha TPS and further order has also been placed for import of coal.

During the year ended 31^st March, 2022, NTPL registered a revenue from operations of ? 2,221.60 crore as against ? 2,629.46 crore registered in the year 2020-21. The Profit Before Tax & Profit After Tax for the year 2021-22 were ? 329.65 crore and ? 211.28 crore respectively as against ? 560.41 crore and ? 363.00 crore registered in the year 2020-21. Interim Dividend of ?0.70 (7%) per equity share was declared by NTPL Board for the FY 2021-22 and the same was paid on 21^st Feb.2022.

Neyveli Uttar Pradesh Power Limited (NUPPL) - A Joint Venture between NLCIL & UPRVUNL Ghatampur Thermal Power Project (GTPP) (1980 MW) linked to Pachwara South Coal Block (9.0 MTPA) in Jharkhand

NUPPL, the Subsidiary Company is implementing the 3 x 660 MW Ghatampur Coal based Thermal Power Project (GTPP) at Ghatampur Tehsil, Kanpur Nagar District in the State of Uttar Pradesh at a project cost of ?17,237.80 crore. As per the present progress of the project, Unit I is expected to be commissioned by March 2023 while the commissioning of the other two Units viz., Unit II & III is expected four months there after. The delay in execution of the Project was mainly due to the slow progress of works in Balance of Plant (BOP) Package (GA3), as the Package contractor M/s. BGRSE is under a financial stress. Further because of lockdown during the period of Covid-19 pandemic, Inter-State Migrant Labours (ISML) returned to their native places besides the inadequacy of skilled man power and disturbances in supply chains distributions during that period contributed to the delay in the progress of the project. This project is being monitored by MoC and at the apex level by the Office of Prime Minister and considering the gravity of the situation of dismal performance by BGRSE the Board of NUPPL is taking all necessary steps to expedite the implementation of the Project.

NUPPL has signed a Power Purchase Agreement (PPA) with Uttar Pradesh Power Corporation Limited (UPPCL) for supplying 75% of the Power from the plant. Balance 25% has been allotted to the State of Uttar Pradesh by Ministry of Power, GoI for which the Company is pursuing with UPPCL to sign the PPA. In the meantime Assam Power Distribution Company (APDCL) has also given their consent for availing the balance power from this Project and the same has been forwarded to UPPCL for obtaining their consent to approach Ministry of Power for the formal allocation to them.

The coal supply for the GTPP is linked to Pachwara South Coal Block (PSCB) which is in early stage of Mine Development. Based on the Company''s request, CEA had recommended Coal India Limited (CIL) to supply 0.99 MT (0.33 MT for each unit) coal to GTPP to facilitate commissioning activities, trial run & achieving COD etc. The remaining quantity of Coal is expected to be supplied from the Talabira II and III Mine belonging to the Company till commencement of operation of PSCB. In line with the CEA recommendation, CIL has allocated 0.33 MT of coal (0.20 MT from NCL and 0.13 MT from BCCL) for Unit-1. Memorandum of Understanding (MoU) for 0.20 MT supply of coal from NCL has been signed on 27.03.2021.

The project has achieved a CAPEX of ?1,901.77 crore in the year 2021-22. The cumulative expenditure incurred since inception up to 31^st March 2022 is ?13,361.07 crore.

Pachwara South Coal Block (9.0 MTPA) in Jharkhand

NUPPL has been allotted with the Pachwara South Coal Block (PSCB), in the State of Jharkhand, with a capacity of 9.0 MTPA (Normative) & 13.50 MTPA (Peak), at an estimated cost of ?1795.01 crore. In order to develop and operate the above Coal Block, MIPL GCL Infra contract Private Limited has been appointed as the Mine Developer Operator (MDO). Geological Report (GR), Mining Plan & Mine Closure Plan have been approved by MoC. Terms of Reference (ToR) for EC has been issued by MoEF & CC in favour of PSCB to carry out EIA/EMP study at PSCB. Application for Stage-I Forest Clearance uploaded in MoEF& CC Portal and the proposal has been forwarded to the Government of Jharkhand by PCCF, Ranchi for further processing, while the Gazette notification u/s 9 (1) & 11 (1) of CBA (A & D) Act, 1957 has been issued by MoC. Final EIA/EMP report along with application for EC has been uploaded at PARIVESH portal of MoEF & CC. The Project has achieved a CAPEX of ?4.36 crore in the year 2021-22. The cumulative expenditure incurred up to 31^st March 2022 was ? 39.28 crore.

Coal Lignite Urja Vikas Private Limited (CLUVPL) - A Joint Venture Company between NLCIL & CIL

Your Company had entered into a Joint Venture Agreement with Coal India Limited (CIL) to implement thermal and solar power projects of 5000 MW capacity by forming a JV Company with an equity participation of 50% each. The JV Company "Coal Lignite Urja Vikas Private Ltd" was incorporated on 10^th Nov.2020 and the Board of the JV Company has given in-principle approval for participating in the tariff based competitive Solar Power Project tenders to be floated by SECI and /or any such agencies.

The JV Company has been awarded with the Project Management Consultancy Contract by South Eastern Coalfields Limited (SECL) for developing 40 MW Solar Power Project at Bishrampur and Bhatgaon locations of SECL in the State of Chhattisgarh. Presently the project activities are in progress.

Consultancy Services for developing Coal Block

Your Company has been awarded with a work order for providing consultancy services to Uttar Pradesh Rajya Vidyut Utpadan Nigam Limited (UPRVUNL) for selection of MDO, supervision & monitoring of exploration and other site activities for its Saharpur Jamarpani Coal Block in Jharkhand.

MNH Shakti Limited

Mahanadi Coalfields Limited, your Company and Hindalco jointly formed MNH Shakti Limited with an equity participation of 70:15:15 to implement 20.0 MTPA Coal Mining Project in Talabira, in the State of Odisha. The Talabira II & III Coal Blocks allocated for this purpose have been cancelled pursuant to the judgement of Hon''ble Supreme Court of India and the Coal Mines (Special Provisions) Ordinance, 2014. The JV Company has been proposed for winding up and necessary formalities are underway. In the meantime MNH Shakti Limited with the approval of its shareholders has reduced its Paid-up Equity Share Capital from ?85.10 crore to ? 35.10 crore by way of cancellation of five crore equity shares of ?10/- each aggregating to ?50 crore and the said amount has been returned to the JV Partners in accordance to their shareholding in the JV Company.

Loan, Guarantees and Investments

Details of loans and investments covered under the provisions of Section 186 of the Companies Act, 2013 forms part of the Financial Statements.

Deposits

The Company has not accepted any deposits from the public during the year.

Bonds, Borrowing & Credit Rating

During the financial year 2021-22, your Company has issued Unsecured Rated Listed Redeemable Non-Cumulative Taxable Non-Convertible Bonds of ? 10 lakh each in the nature of Debenture Series I (NLCIL BONDS 2021 SERIES II) for an aggregate value of ?500 crore at a coupon rate of 6.85% maturing on 13^th April, 2032.

Commercial Paper

During the financial year 2021-22, as part of optimising the financial cost, your Company had mobilized funds by issue of Commercial Papers in different tranches with different tenures for an aggregate value of ? 7,000 crore. The Commercial Papers issued earlier were redeemed on the due date as per the terms of allotment.

Sales Bill Discounting

During the financial year 2021-22, your company has explored the Sales Bills Discounting facility available in the Banking System with recourse to your company and discounted the power bills issued to DISCOMs. The total value of sales bills discounted during the year under review was ?4,663.19 crore. During the year under review, there were no instances of bankers sending the bills to the Company for meeting the obligations since the DISCOMs have honoured their commitments to the Bankers on the due date.

Credit Rating for Borrowings

During the year, your Company has retained AAA rating for Long Term Borrowings including Issue of Bonds and A1 for issue of Commercial Papers from Credit Rating Agencies. The present ratings are given below:

	Rating Agency / Particulars	Rating Assigned
1	ICRA
	Rating for NLCIL Bonds (1475 Crore 525 Crore) - ? 2,000 Crore	ICRA ''''AAA/Stable
2	CRISIL
	Working Capital Loan - ? 5000 Crore	CRISIL AAA/Stable
	Proposed Bonds - ? 3000 Crore	CRISIL AAA/Stable
3	Brickwork Ratings
	NNTPS - RTL ? 3000 Crore.	BWR AAA/Stable
	Talabira Mine - RTL ? 1680.75 Crore.	BWR AAA/Stable
	Proposed Bonds - ? 3000 Crore	BWR AAA/Stable
4	CARE Ratings
	Solar 130 MW - RTL ? 481 Crore	CARE AAA; Stable
	Solar 500 MW - RTL ? 1406 Crore	CARE AAA; Stable
	Commercial Paper - ? 6000 Crore	CARE A1
5	India Rating (Fitch Group)
	Solar 709 MW - RTL ? 2552 Crore	IND AAA/Stable
	NLCIL Bonds (1475 Crore 525 Crore) - ? 2000 Crore	IND AAA/Stable
	Commercial Paper - ? 6000 Crore	IND A1

Power Dues Realisation:

• During the year under review, your Company had received an amount of ?10,693 crore out of the total billed value of ?8,422 crore for the FY 2021-22 working out to a collection efficiency rate of 127%.

• The outstanding power dues including for the month of March 2022 invoices as on 31^st March, 2022 was ?3,958 crore as against ?6,256 crore for the corresponding period of the year ended 31^st March, 2021. The dues beyond the 45 days limit as on 31^st March, 2022 was ?2,675 crore as against ?4,977 crore for the corresponding period of the previous year ended 31^st March, 2021.

• Your Company realized a sum of ?2,041 crore from Discoms under the Govt. of India''s Atmanirbhar Bharath Liquidity Infusion Scheme through Power Finance Corporation (PFC) and Rural Electrification Corporation (REC) & Banks towards liquidation of outstanding dues.

• Further, the Discoms were encouraged and persuaded to avail Bill Discounting Scheme to liquidate their dues, which resulted in the realisation of dues to the tune of ?4,663 crore from the Discoms.

• Scheduling of power is being done in compliance with the MOP directives on LC - Payment priority mechanism.

Power Trading in Power Exchange

• During the year 2021-22, 1,246.05 MUs of Un-Requisitioned Surplus (URS) power was sold from NLCIL thermal power stations in different market segments of Power Exchange leading to a gross revenue addition of ? 340.45 crore. As per the CERC regulations, gains earned from sale of such URS power is being shared with the beneficiaries.

• During the year, the final power surrender for all the power stations of the Company was 805.79 MU as against 995.59 MU in the year 2020-21. The Trade / Surrender ratio for the year 2021-22 is 60.73% against 53.42% in 2020-21. With an improvement of URS power sale efficiency, Power surrender was significantly less during FY 2021-22 as compared to last year.

• Though, NLCIL is able to sell the quantum of power surrendered by the beneficiaries, mostly the final surrender was due to Reserve Regulation Ancillary Services (RRAS) down schedule issued by National Load Despatch Centre (NLDC) for maintaining grid parameters and security.

• Near Zero surrender for Discoms power was achieved for 163 days (44.6%) during the financial year 2021-22 as against 110 days (36%) in 2020-21 out of 304 days since the commencement of Real Time Market (RTM) from 01.06.2021. The RTM has not only enabled efficient utilisation of generation capacity but has also monetize power surrender during the day of operation, thus increasing the Capacity Utilization Factor (CUF) of Mines.

• NLCIL has traded 59.59 MU under Trading Licence which included purchase and sale of power for various open access customers from power exchange.

• The Energy Savings Certificates (ESCerts) of 86,800 numbers were purchased in the Power Exchange in compliance to the Perform, Achieve, Trade scheme under PAT Cycle II in respect of NLCIL plants TPS 2 & TPS 1 EXPN.

Tariff Regulations

Central Electricity Regulatory Commission (CERC) has issued the CERC (Terms and Conditions of Tariff) Regulations, 2019 on 07.03.2019, which are applicable for the period 01.04.2019 to 31.03.2024. The tariff of electricity generated from your Company''s stations would be determined by CERC based on these Regulations for the above-mentioned period.

CERC (Terms and Conditions of Tariff) First Amendment Regulations 2020 covering Emission Control System was issued on 25^th August, 2020. CERC (Terms and Conditions of Tariff) Second Amendment Regulations 2021 covering Input Price Regulations for Integrated Mines came into effect on 13.09.2021 i.e. the date of notification of these Regulations in Official Gazette and applicable for the five-year tariff period from 1.4.2019 to 31.3.2024.

Environment Compliance Measures

Your Company practices and promotes the best environment management plan since its inception and is committed to environment friendly mining and power generation. The environment policy of your Company is in line with the Vision and Mission Statement.

Ministry of Coal has constituted an Apex Committee with Additional Secretary/ MoC as its Chairman to monitor the compliance of Environmental Clearance (EC) and Forest Clearance (FC) conditions in Lignite / Coal Mines. In this connection your Company has constituted Environmental Monitoring Committees at Head Quarter (HQ) level and Area level as per the guidelines of Ministry of Coal for the above monitoring purposes.

Your Company continued to undertake mass tree plantations during the year besides undertaking of slope stabilisation of the Mines Overburden dumps in order to convert the Mine spoil into cultivable soil making it fit for habitation. The units have installed dust suppression mechanisms such as water sprinklers, spray guns, Fog Cannons etc to control the fugitive dust. The ambient air quality is being monitored regularly in the surrounding villages and is well within the prescribed norms.

Consequent to the Amendments of Environment (Protection) Act, 1986, the norms for water consumption and emissions from Power Plants [Particulate Matter (PM 2.5 & PM10), Sulphur dioxide (SO2), Oxides of Nitrogen (NOx) & Mercury (Hg)] have been made stringent for the existing as well as new Thermal Power Plants. In this regard, installation of Flue Gas De-sulphurisation (FGD) Systems is in progress.

As a result of continued environment management measuring undertaken your Company has received many awards for maintaining better environment management practices. The lists of such awards received during the year 2021-22 are as under:

• EKDKN Environmental Exceed Award supported by Ministry of Environment, Forest & Climate Change - Platinum Award for Environmental Protection.

• 21^st Annual Greentech Environment & Sustainability award 2021- Winner for Outstanding achievement under "Environment Protection Category".

• Grow Care India Environment Excellence Platinum Award 2021- under Environment Preservation Category.

• Green Leaf Awards 2021 - Gold Award in "Energy Efficiency" & "Environment Excellence" to BTPS.

• Fly Ash Utilization Award 2021- For best practices & Fly ash management in TPS-II Expn.

Insurance

During the year, your Company had taken Mega Insurance Policy for the Assets and Stocks of Production Units viz. Mines, Thermals & Renewable Energy (RE). It broadly covers, Material damage (MD) of all Mine assets and Material damage (MD), Machinery Breakdown (MBD), Fire Loss of Profit (FLOP) & Machinery Loss of Profit (MLOP) of all Thermal & RE assets. Assets of Service units are covered under Standard Fire and Special Peril Policy (SFSP) which also cover Electronic Equipment Insurance (EEI), Transit Insurance, Public Liability Industrial Risk Insurance.

Land Acquisition and Rehabilitation & Re-settlement

The extensive land requirement for continuous mining necessitates invoking the law for the acquisition of private property leading to involuntary displacement of people. Your Company is sensitive to the painful involuntary relocation of displaced families and strives to minimize the trauma of such displacement besides continuously and consciously balance the technoeconomic and the socio-economic goals of its projects.

The law applicable for the acquisition of lands for the projects in the State of Tamil Nadu has been changed from the Central Act 1 of 1894 to the Tamil Nadu Acquisition of Lands for Industrial Purposes Act,1997 (TN Act 10 of 1999) with effect from 20.09.2001.

Your Company has been following the National Policy on Rehabilitation and Resettlement, 2007 for the benefit of the Project Affected Population, for lands acquired upto 31.12.2013. The Provisions for compensation and R&R as per Schedule-I, II & III of "Right to Fair Compensation and Transparency in Land Acquisition Rehabilitation and Resettlement Act - 2013" (RFCTLARR) are applicable since 01.01.2014 to your Company. A revised R&R policy was unveiled by the Hon''ble Minister for Coal on 17.01.2022 and as per this policy in addition to the monitory benefits as per the provisions of Schedule-II of RFCTLARR Act, the settlers on Govt. lands are also covered for some more benefits besides providing alternate house sites, annuity or onetime grant in lieu of employment.

Your Company takes good care of the Project Affected Persons (PAPs) through R&R Policy measures thereby minimizing the trauma of displacement. The guidelines issued by the Government of India, from time to time on R&R for the on-going projects are being duly complied with. Your Company develops the Re-settlement Centres (RCs) and also provides good infrastructure facilities thereby helping the affected families to re-settle in the RCs. In addition to this, legal compensation is also being paid with the co-operation of the District Administration.

Research and Development (R & D)

Centre for Applied Research & Development (CARD) is the in-house R&D Centre of the Company and has been recognized by the Department of Science & Technology. CARD has been granted NABL accreditation by National Accreditation Board for Testing and Calibration Laboratories (NABL) based on the international standard ISO/IEC 17025:2017.

The major functions of CARD include:

• Carrying out Science & Technology (S&T) Research Projects,

• Environmental monitoring,

• Pollution level measurements,

• Quality Control Testing & Consultancy, Technical Services.

• Technology development, patenting and commercialization based on the R&D and Pilot Plant outcome,

• Coordinating for S&T Projects undertaken by the Company, lnstitutional services to students, special studies for operation & new schemes and new initiatives etc.

• Rendering analytical services towards quality control of various products/materials used in Mines, Power Stations and other service units as well as outside agencies on chargeable basis.

• R&D works on lignite utilization, diversification, product development, by-product utilization, Solid Waste Management, wasteland reclamation, renewable energy, Clean Coal Technologies, introduction of real time monitoring facilities etc.

CARD has successfully developed the following pilot plants based on the outcome of the R&D studies 1. Humic Acid, 2. Separation of Iron particles from bottom slag, 3. Extraction of sand from Mines overburden 4. Biofertilizer, 5. Zeolite 6. Solar Drying of Lignite, 7. Activated Carbon from Lignite 8. Floating Solar as a part of Business Diversification Plan.

As per the action plan announced in the CPSE-PM Conclave for "Vision New India 2022", your Company has initiated action for setting up Innovation Incubation Centre (IIC) in association with Indian Institute of Science (IISc) and with Anna University, at a total outlay of ?8.94 crore. In the first phase, so far 17 Start-up Project proposals have been taken up for ''Proof of Concept"(PoC) demonstrations by the innovators. After successful completion of PoC, necessary funding support will be provided for establishing the pilot / prototype plant and to establish technical feasibility of the concept.

The total R&D expenditure, incurred during the year 2021-22 was ? 23.26 crore.

Human Resource Development

Your Company believes in its human assets who are the key performers driving the Company''s growth. Your Company provides a conducive working environment to its employees wherein they deliver their best potential.

Training

Your Company strongly believes that the pursuit of excellence can be achieved only through continuous learning, competency building, reinforcing good work practices, etc. Learning and Development Centre (L&DC) continuously strives to harness the in-house talents by conducting various in-house / deputation training programmes, webinars etc.

Apprentices were also given training as per Statutory Guidelines of the Regional Director of Apprenticeship Training, Chennai (RDAT) and the Board of Apprenticeship Training (BOAT) of Southern Region, Chennai.

Industrial Relations

Your Company continued its faith in participative management and has a regular system of holding bipartite structured meetings with the Recognised Unions (collective bargaining agents) / Associations in addressing the common issues of the employees. The significant events of IR department during FY 2021-22 are as below.

Employment on compassionate grounds to the dependents of deceased due to COVID-19

Based on the representations received from various stakeholders the Board of Directors of your Company has evolved a policy to provide employment to the dependents of the deceased due to COVID-19 in order to alleviate the sufferings of the dependents of the deceased employees/ contract workmen who have succumbed to COVID-19, taking into account the industry practice and various relief measures provided by the State and Central Governments.

Minimum rates of Wages & Dearness Allowance to Contract Workmen

In accordance with the Order of Chief Labour Commissioner (Central), New Delhi, the contract workmen deployed in the Company are being paid minimum wages and dearness allowance as per the notification issued by CLC from time to time.

Enrollment into Indcoserve Society

In accordance with the settlement arrived under Sec. 12 (3) of the Industrial Disputes Act, 1947 between the Contractor Employers and Trade Unions representing the contract workmen on 07/08/2020, 3150 private contract workmen were enrolled into NLC Indcoserve Society w.e.f. 01-02-2022 as per the seniority list submitted to the Hon''ble Supreme Court of India.

Covid-19 - Medical Professionals/ Frontline Warriors - Payment of one-time Ex-gratia

To motivate and encourage all the frontline warriors who were directly involved in the activities of prevention/treatment/ tracing and tracking Covid-19 pandemic, your Company granted one time ex-gratia payment ranging from ?15,000/- to ?30,000/- as a token of appreciation for their priceless services rendered in the fight against COVID-19.

Enhancement of "Death Relief Fund" to the dependents of deceased Employees and Contract Workmen Regular Employees

In the event of death of a Member on the rolls of the Company an amount not exceeding ?100/- per member shall be recovered instead of ?50/- from the salary/ wage bills of other alive members w.e.f.01-08-2021.

Contract Workmen

The payment of solatium, in case of death due to accident arising out of and in the course of employment (while on duty) was revised from 5 lakh to ?30 lakh (inclusive of compensation payable under Employee compensation Act and EDLI) effective from 01-10-2020 and the shortfall in total solatium of ?30 lakh to be made good from the Contract Workmen Death Relief Fund.

The payment of solatium effective from 01-10-2020 was revised from ?10 lakh to ?15 lakh in case of death during the course of employment occurring on natural cause / ailment during the course of employment with in the Unit Premises but does not include (a) suicide and (b) death occurring during non-duty periods and outsides the Unit premises, Hospital including referral hospitals but does not include suicide.

Regularisation of 750 Contract Workmen

In accordance with the settlement under Sec. 12 (3) of the ID Act 1947 entered into between the contractor employers and trade union representing contract workmen in the presence of NLCIL Management, during the financial year, 714 numbers of contract workmen have been regularised into NLCIL rolls. Further, NLCIL has accorded approval for regularisation of 510 Contract Workmen into the rolls of the company as per the settlement dated 07-08-2020.

Uniform to Contract Workmen

In accordance with the settlement under Sec. 12 (3) of the ID Act 1947 entered into between the contractor employers and trade union representing contract workmen in the presence of NLCIL Management, it was agreed to provide two sets of stitched uniform to the contract workmen engaged through the private contractor employers.

In general, the Industrial Relations Scenario of the organisation was peaceful and cordial during the year 2021-2022.

Manpower

The total employee strength (including subsidiaries) stood at 11,246 as on 31^st March, 2022 as against 11,379 as on 31^st March 2021. Reservation of Posts

Your Company scrupulously follows the reservation policy applicable to SCs, STs and OBCs as prescribed in the presidential directives / GOI Guidelines. The group-wise representation of SC/ST/OBC as on 31^st March, 2022 stands as follows.

Group	Total Strength		Strength of SC/ST/OBC			% of SC/ST/OBC
		SC	ST	OBC	SC	ST	OBC
A	3186	676	305	520	21.22	9.57	16.32*
B	343	67	9	110	19.53	2.62	32.07
C	6618	1288	75	2346	19.46	1.13	35.45
D	1099	304	2	641	27.66	0.18	58.33
Total	11246	2335	391	3617	20.76	3.48	32.16

*strength of OBCs on rolls of NLCIL after reservation for OBCs came in to effect w.e.f 08-09-1993. However more than required percentage of employees (covered in the Central list of OBC category) have been recruited on the strength of BC category prior to reservation for OBCs came to effect and continue to be on the rolls of the Company.

Employees'' Welfare and Social Security SchemesEducational facilities

Your Company is presently running 9 Schools with student strength of 4647 nos. The schools admit children coming from peripheral villages, wards of employees, contract employees, daily wages workmen and others from economically weaker sections of society.

Scholarship Schemes and Tuition Fee Concession

Your Company provides educational assistance to the wards of General, SC/ST, OBC category employees and wards of Contract Workmen for pursuing higher studies (under graduate degree / diploma / professional courses) till the duration of the course subject to a maximum of five years. Out of the total slots earmarked under Contract Workmen Educational Assistance Scheme, 50% has been allotted exclusively for girl children. Besides these schemes, a separate Cash Award Scheme and a Scholarship Scheme were also provided under CSR for the benefit of girl children studying in the peripheral districts of Barsingsar Project, Rajasthan. In addition to the above, your Company reimburses the tuition fees every year for students belonging to SC/ST/ OBC category (predominantly hailing from the surrounding villages of NLCIL projects) studying in Jawahar Science College, Neyveli, patronised by your Company.

Medical Facilities

The Company''s health care model for protecting, preserving and promoting the health and wellbeing of workforce is a time tested one with proven results. The company which believes that healthy workforce is the key driver of its economic wellbeing is supporting a sustainable health care model since instituting the Hospital in 1962. NLCIL Hospital - a secondary level medical facility with a bed capacity of 350 provides the following medical care facilities/ services to the villages in and around Neyveli:

• Emergency care linked with Advanced Life Support ambulance services for inter-facility transfer of critically ill patients to higher centres.

• 8 bedded emergency unit equipped with centralized oxygen and suction lines, bed monitors, devices and mini operation theater is capable of handling all emergencies including trauma and industrial accidents.

• Emergency care service is provided on 24 X7 basis. Patients are treated in various specialties that include General Medicine, General Surgery, Obstetrics & Gynaecology, Paediatrics, Orthopaedics, Ophthalmology, ENT, Dermatology, Chest Medicine, Psychiatry, Dental and Ayurveda Services.

• Out Patient Department (OPD) service is well supported by diagnostic facilities, pharmacy and other therapy.

• Two Renal Care Units (RCU) - RCU I run by the Company and RCU II through an outsourced facility, with a combined capacity of 28 beds provide haemodialysis service to chronic kidney disease patients.

• Surgical care services in General Surgery, Ophthalmology, ENT, Orthopaedics, Obstetrics & Gynaecology and Dental leveraging the two state of the art Theater Complexes adequately staffed with anaethesiologists, OT Nurses and OT Technicians to support all major surgeries at secondary level.

In coordination with State health dept, the following were implemented for the benefit of the general public.

• Family Welfare Services for achieving fertility control among the local population.

• Universal Immunization programme for protecting children and adults against all infectious diseases.

• Integrated Counselling and Testing, Treatment facilities for HIV infected patients

• Revised National Tuberculosis programme for prevention and treatment of TB among the local population.

• National Leprosy Control Programme for early detection and treatment of leprosy among local population

• Occupational Health services that monitor health and wellbeing of workforce through medical surveillance programme.

• Community Health camps to reach out to rural population and create awareness on various health issues

• Geriatric care services to the inmates of Anandha Illam run by the company for care of elderly persons who have no family support.

Multi-disciplinary team approach is adopted to provide a holistic health screening experience to the beneficiaries. Disciplines of General Medicine, Obstetrics & Gynaecology, Paediatrics, Ophthal, Dermatology, ENT, Chest medicine, Ayurveda Medicine, Ortho, Physiotherapy, and Dental from the clinical team provide comprehensive screening and wider coverage of treatment for women, children and elderly population. NLC India Hospital has successfully completed 5 medical camps in year 2021-2022.

Elders Home

To fulfil the special needs and requirements of the senior citizens, your Company runs ANANDA ILLAM in Neyveli. This elders home provides hospice & home care to the elders and help them to lead a happy and peaceful life with dignity. The employees of your Company also lend their helping hand by contributing a fixed amount every month from their salary to run the old age home.

Compliance under Persons with Disabilities Act, 2016

Your Company has evolved a comprehensive policy for Persons with Disabilities (PwDs) as per the guidelines issued by DoPT for providing certain facilities / amenities to PwDs to meet their requirements and enable them to effectively discharge their duties. The strength of PwDs as on 31-03-2022 stood at 211.

"SNEHA" Opportunity Services and School

Your Company implements various social welfare measures towards the cause and upliftment of the Physically Challenged Persons through Neyveli Health Promotion and Social Welfare Society (NHPSWS), "SNEHA" Opportunity Services and School both patronised by your Company. This School imparts education and training to mentally challenged children which includes training in vocations like arts & crafts, candle making, paper cup & cover making, carpentry, gardening, cooking and doormat weaving.

Health Promotion and Social Welfare Society (NHPSWS)

Through this Society, Tricycles, Wheel chairs, Hearing aids etc., were distributed to the disabled persons during Independence Day and Republic Day celebrations. The society runs retail outlet shops namely VAIGHAI.

Implementation of Official Language Act, 1963

Your Company has made all concerted efforts to promote the Official Language Implementation Policy in line with the provisions and guidelines prescribed by Government of India under the Official Language Act 1963. During the year 2021-22 due to COVID-19 pandemic and restrictions imposed for physical meetings, your Company had organised Hindi Workshops through Webinars.

In line with the Policy of Government of India and the Provisions prescribed under the Official Language Act, 1963 your Company continues to promote the Official Language and periodic Official Language Implementation Committee (OLIC) meetings are held to monitor the implementation of Official Language Policy. During the year under review Hindi Workshops were organised besides celebration of Hindi Fortnight wherein competitions on Essay Writing in Hindi, Poetry and Noting & Drafting in Hindi were conducted.

Women Empowerment - Forum of Women In Public Sector (WIPS):

WIPS NLCIL chapter was formed in 12-02-1990 and is a Corporate Life Member in the SCOPE since 1990.The strength of women employees in the Company as on 31^st March 2022 stood at 901 constituting 8.01% of Company''s human resource.

Safety

Your Company is taking pioneering efforts in the industrial safety area along with, the on-going safety related initiatives, apart from compliance of statutory requirements for enhancing safety standard in all the Mines and Thermal Plants which are given below:

• Safety audit of all the Mines is conducted by ISO Team every year and Safety audit of Thermal plants is conducted by accredited external agencies once in two years.

• Central Safety Council members comprising representatives of different units make inspection of the pre-determined unit every month and present its findings to the Unit Head.

• Conducting workshops & Training on Safety by Mines and Thermal units.

• Life-Saving Rules have been prepared & implemented in all the units.

• Conducting Safety officers'' meet every month by Central Safety Wing and discussing the Safety performance, Action taken on recommendations, etc.

• Mines at Neyveli (Mine I, Mine IA & Mine II) are being operated with State-of-the-Art Technology i.e. Bucket Wheel Excavators, Spreaders, stackers and series of conveyors having inbuilt safety features.

• Standard Operating Procedures (SOPs) have been established for all the activities of the mines and thermal plants and are strictly implemented.

• Risk assessment based Safety Management Plans (SMPs) have been prepared as per Coal Mines Regulation 2017 for all the mining activities like Bench operation, Specialized Mining Equipment (SME), Conveyor Zone, Ground Water Control (GWC), Conventional Mining Equipment (CME) etc. and is being practiced.

• Pit Safety Committee meeting for the mine is conducted every month besides special safety meetings by individual divisions like conveyor division, blasting division, electrical division etc. Similarly, Unit Safety committee meeting is conducted by all thermal plants every month.

• Weekly Safety inspections of Mines, Thermal plants and other units are being carried out by Central Safety Wing executives and inspection report is submitted to Unit Heads for compliance and improvement in safety standard.

Risk Management

A comprehensive Integrated Risk Management Policy and Frame work as approved by the Board is in place in your Company. Besides risk prioritization, the roles and responsibilities of the Members are clearly defined. As per the policy, an Internal Risk Review Committee (below Board level) review the risks on a quarterly basis. The risk assessment together with the minimization procedure is reviewed by the Risk Management Committee, Audit Committee and the Board periodically.

Vigilance

The activities undertaken by Vigilance Department are Pro-active & Punitive and other measures to sensitize the employees of the Company. Complaints received in the department are dealt based on the "Complaint Handling Policy" and are processed through the Complaint Tracking System (CTS) from receipt up to disposal. As a preventive measure, Surprise Checks, Regular Checks, Quality Checks, Follow-up Checks and CTE Type Examinations are conducted.

As a part of Preventive Vigilance exercise, Customized Training Programmes were conducted at Thermal Units, Mines, Offices at Neyveli, Barsingsar Project, NTPL, NUPPL & Talabira Project to sensitize the officials on Contracts/ Purchase and various CVC guidelines issued in this regard through Vigilance case studies.

Implementation of Integrity Pact

Your Company is committed to have most ethical business dealing with the Vendors, Bidders and Contractors of goods and services and deal with them in a transparent manner with equity and fairness. To achieve these goals, your Company is implementing the Integrity Pact Programme in co-operation with Central Vigilance Commission (CVC) and renowned International Non-Governmental Organisation, Transparency International India (TII). Integrity Pact with the suppliers / contractors for all Tenders with estimate of ? one crore and above are monitored. Structured meetings are held with the Independent External Monitors (IEMs) wherein procurement and contract related issues and 5 complaints are taken up. During the year 2021-22, 4 Contractors meetings and 11 review meetings with the Independent External Monitors were held.

Cyber Security

To protect against cyber security threats, your Company has a maze of protective equipment like Network and Web application firewall for perimeter security and antivirus protection to desktops/laptops.

Digital Culture

Your Company has taken the following initiatives while transforming to digital culture:

a. SAP ERP is used as the enterprise software for core business.

b. E-Procurement of products and services through a common portal.

c. Office automation with the product e-office for file and e-Tapal.

d. Email, intranet, SMS services help information dissemination and Virtual Private Network (VPN) has enabled extended office connectivity especially during the pandemic.

e. Video Conferencing, Collaboration tools and virtual meetings are being used for conducting out of office information exchange.

f. E-payments are carried out for all financial transactions.

g. Artificial Intelligence tools like Chatbot and Robotic Process Automation have been deployed in few areas and a separate division has been formed to enhance the usage of Artificial Intelligence in the Company.

h. In Barsingsar, OB dump monitoring has been given to National Institute of Rock Mechanics (NIRM); Terrestrial Laser Scanner (TLS) is being used in NLCIL mines for OB land slope monitoring.

Compliance Monitoring

Your Company has set up a software based Legal Compliance Management System (LCMS) for effectively monitoring and ensuring compliances of all legal provisions applicable to the Company.

Corporate Social Responsibility

Your Company, as a socially responsible corporate citizen, continues to carry out developmental works in the surrounding villages, right from its inception, focusing on the socio economic development of the operating regions for achieving inclusive & sustainable growth.

• Your Company is adopting a Corporate Social Responsibility Policy covering the various sectors of sustainable socio-economic development. The Policy is available in the Company''s Website https://www.nlcindia.in/new_website/index.htm

• Your Company outlays funds for the CSR projects, programs and activities selected for implementation under the CSR Policy.

• The CSR Committee of the Board is monitoring the implementation of the CSR Projects. The Board of Directors reviews the same and ensures that your Company spends, in every financial year, at least 2% of the average net profits of the Company made during the three immediately preceding financial years.

• Initiatives of State/Central Government, Departments/Agencies are dovetailed/synergized with the CSR Activities of NLCIL.

The amount spent by your Company for the year 2021-22 towards CSR projects is ? 40.80 Crore.

The major CSR initiatives undertaken during the year 2021-22 are given below:

MEASURES TAKEN TOWARDS PREVENTION OF COVID-19

Your Company has been at the forefront in tackling the adverse effects of the pandemic since March 2020. During the FY 2021-22, Your Company has spent ? 1614.10 lakh towards various COVID 19 preventive measures for the benefit of public at various locations of the Country. The following initiatives are undertaken.

• Setting up of 17 Nos. Oxygen Plants of 30 Nm3/Hr capacity in Tamil Nadu, Rajasthan & Karnataka States at the following locations at a cost of ? 1113.65 lakh.

Sl. No.	Location of Oxygen plants			State Assigned
1 1.	Chidambaram	4.	Thittakudi	TAMILNADU
2.	Villupuram	5.	Vridhachalam
3.	Panruti

Sl. No.			Location of Oxygen plants		State Assigned
2	1.	Bilgi	4.	Byadagi	KARNATAKA
	2.	Gadag	5.	Challakere
	3.	Badami	6.	Holakere
3	1.	Bikaner	4.	Jodhpur	RAJASTHAN
	2.	Ajmer	5.	Nagaur
	3.	Jaipur	6.	Udaipur

• Supply of 184 Nos of Oxygen Concentrators of capacity 10 lit/Min in Tamil Nadu at a cost of ? 218.02 lakh.

• Supply of 86 Nos of Oxygen Concentrators of capacity 10 lit/Min in Rajasthan at a cost of ? 108.13 lakh.

• Sparing of 10 Nos of Hired Basic Life Support Ambulances to Cuddalore District Administration for 3 Months at a cost of Rs 58.34 lakh.

• Financial Assistance of ? 32.20 lakh to M/s Socio Economic Research Institute (SERI) towards distribution of PPE Garments, Surgical Masks, Hand Sanitizers, Infrared forehead Thermometer, Oxygen concentrators and Probass UV-C disinfection systems for Cuddalore District.

• Providing food packets to the needy people through Sneha Opportunity Services, Neyveli at a cost of ? 24.78 lakh.

• Soap solution, Sanitizer, Cold chain equipment, Electrical connection to PSA Oxygen Plants at a cost of ? 17.40 lakh.

• Remdesivir Injection to Government Hospitals at a cost of ? 11.19 lakh.

• Distribution of medical equipments to combat COVID -19 for Govt. Hospitals at Kattumannarkoil & Kurinjipadi at a cost of Rs 10.41 lakh.

• Financial Assistance of ? 10.00 lakh to M/s SANTHIGIRI ASHRAM towards distributing Ration & cleaning and personal hygiene kits to 300 families for COVID Prevention.

• Financial Assistance of ? 10.00 lakh to M/s Sri Aurobindo Society, Puducherry for COVID relief activities.

PROMOTING HEALTH CARE, NUTRITION & SANITATION

Your Company has spent an amount of around ? 744.16 lakh during FY 2021-22 towards promoting Health Care, Nutrition &

Sanitation. The following initiatives are undertaken.

• Emergency / life saving treatment to common residents in Neyveli Township and patients from surrounding villages of Neyveli on OP Basis at a cost of ? 130.94 lakh.

• Nutritional support to the students of NLCIL Schools at a cost of ? 25.20 lakh.

• Conducting Medical camps around Neyveli at a cost of ? 24.25 lakh.

• Construction of Trauma Care centre at Govt. General Hospital, Kurinjipadi at a cost of ? 14.04 lakh (Under Progress).

• Poshak - Supply of Health Mix Powder, dates, Chenna to HIV ve Society, Cuddalore by Monthly supply at a cost of Rs 13.90 lakh.

• Swachhta Pakwada, Yearlong swachhta, Swachh Bharat related activities at a cost of ? 9.42 lakh.

• Supply of Food Supplements and soaps to Oasis, home by Monthly supply at a cost of ? 8.33 lakh.

• Construction of 2 Nos of RCC OHT in Kurinjipadi at a cost of ? 4.56 lakh (Under Progress).

• Periodical health check up of villagers by organizing Free Medical camps at surrounding villages of Barsingsar Unit at a

cost of ? 2.91 lakh.

• Distribution of Baby Kits to new born babies under Beti Bachao scheme at a cost of ? 2.00 lakh.

• Diapers, food supplement and cleaning materials to Annai Theresa Home, Vadalur at a cost of ? 1.63 lakh.

• Hygiene and Health Care works of NLC Schools, Kendriya Vidyalaya and education department at a cost of ? 70.75 lakh.

• Your Company is extending financial assistance towards Construction of Public Toilet Blocks in the circulating areas of 170 nos. of Railway stations of Southern Railway in Tamil Nadu. During the year under review, Your Company has contributed Rs 436.25 lakh for this Project.

PROMOTING EDUCATION & EMPLOYMENT ENHANCING SKILLS

Your Company has spent around ? 1373.26 lakh during the FY 2021-22 under review, towards promoting Education &

Employment Enhancing Skills. The following initiatives are undertaken.

• Financial assistance of ? 500.00 lakh to Jawahar Education Society patronized by NLCIL towards promoting Education of the students in the operating region of NLCIL, Neyveli.

• Tuition fees of ? 458.99 lakh towards promoting education of SC, ST & OBC Students of Jawahar Science College, Neyveli benefiting 1152 OBC students and 490 SC & ST students

• Educational Assistance of ? 148.86 lakh towards promoting education of the students of Kendiriya Vidyalaya School.

• Financial Assistance of ? 92.50 lakh towards construction of 9 Smart Class Rooms to Sri Sarada Niketan College of Science for Women, Kodangipatti, Karur.

• Educational Assistance of ? 44.54 lakh to Contract Workmen Children.

• Awareness, motivation Guidance Programmes/Functions for students, parents and teachers. Programmes as per directives of the State and Central Govt like swachh related activities, celebration of important days, Scouts and Guides Camp & Thinking day, School Sports & Literary Activities, Competitions, Issue of school Uniforms, Issue of text books/ educational aids and lease charges for photo copier etc. at a cost of ? 24.34 lakh

• Certain facilities to Sneha Opportunity Services and School at a cost of ? 8.72 lakh.

• Distribution of Scholarship to girl students at a cost of ? 7.24 lakh.

• Educational Promotional activity/Skill Development Programme/Smart class at a cost of ? 4.68 lakh.

• Distribution of school kits to 1^st standard girl student under "Beti Padhao" scheme at a cost of ? 2.00 lakh.

• Distribution of Books on Indian Freedom to village students at a cost of ? 0.13 lakh.

• Financial Assistance of ? 79.69 lakh to Gram Vikas Society, Dharwad, Karnataka towards Skill Development (Fashion Design) Training.

• Skill Development Training Programmes in various Skill sectors for project affected persons (PAPs), students and teachers at a cost of ? 1.57 lakh.

PROMOTING RURAL SPORTS

Your Company emphasizes importance in promoting Rural Sports by conducting sports events and extending financial assistance to prominent persons in sports, who also took part in TOKYO Olympics. During FY 2021-22, Your Company has spent an amount of ? 30.68 lakh. The following initiatives are undertaken.

• Cash Award of ? 5.00 lakh each to the Sports Persons Shri Sajan Prakash, Ms. Revathi Veeramani and Ms. C.A. Bhavani Devi, who had represented India in TOKYO Olympics.

• Conducting of Sports Events and providing Sports items at a cost of ? 10.68 lakh.

• Financial Assistance of ? 5.00 lakh to Sri Dhurga Prasad Public Charitable Trust (SDPPCT).

RURAL DEVELOPMENT

Members may be aware that the transportation services are provided by NLCIL for the public in nearby villages for connectivity to Neyveli Township for their day-to-day social and business activities. As a part of this activity Your Company has spent during FY 2021-22 a total of ? 68.90 lakh - Providing affordable access of social facilities of Neyveli T.S to the peripheral villages and connecting services by NLCIL Bus Service.

DISASTER RELIEF

Your company has extended financial assistance of ? 35.00 lakh during FY 2021-22 to M/s. Deseeya Sevabharathi Keralam for providing relief material to the affected families of flash floods and landslides in Kottayam district in Kerala State.

PROTECTION OF NATIONAL HERITAGE, ART AND CULTURE

Your company has provided Financial Assistance of ? 5.00 lakh to Uttarakhand''s Virasat Arts & Heritage Festival in FY 2021-22. MEASURES FOR THE BENEFIT OF ARMED FORCES

Your company has contributed ? 5.00 lakh to Armed Forces Flag Day Fund (AFFDF) for FY 2021-22.

In addition, Your Company has spent ? 204.00 lakh as Administrative Overheads, which is 5.00% of the total CSR Expenditure. ANNUAL THEME

As per DPE guidelines, CSR expenditure towards thematic activities shall be around 60% of the CSR fund. As communicated by DPE, "Health & Nutrition, with special focus on COVID related measures including setting up makeshift hospitals and temporary COVID Care Facilities" was considered as annual theme for FY 2021-22. Accordingly, Your Company has carried out the CSR activities during 2021-22 choosing from the above theme spending ? 24.81 crore, which is 60.80% of CSR expenditure. In addition to the above, the details on specific Corporate Social Responsibility projects undertaken in compliance with Section 135 of the Companies Act, 2013 is placed as Annexure- 1.

Awards & Recognition

In recognition of its various activities, your Company, has been conferred with the following awards during the year 2021-22:

• Mine-I bagged three National Safety Awards (Mines), instituted by Ministry of Labour and Employment, Govt. of India, for the years 2018,2019 & 2020 under the category, Lowest Injury Frequency Rate per million cubic metre of output.

• Mine-II was awarded National Safety Award (Mines) under the category Longest Accident-Free Period for the year 2020.

• Learning and Development Centre received APEX India Training Excellence Award 2020 (Platinum Category), instituted by APEX India Foundation, New Delhi, in the Metal & Mining sector, for its dedication, innovation and contribution in the area of HR Excellence and for maintaining highest standard in Training Management.

• Mine-I & Mine-II bagged the 5-star ratings and Mine-IA & Barsingsar Mine bagged 4-star ratings as declared by Union Coal Ministry.

• "Greentech Environment & Sustainable Award - 2021" from Greentech Foundation, New Delhi in the Environmental Protection Category.

• Mine-II & Mine IA won the Greentech Environment Award-2021 for its outstanding achievements in Environment Protection.

• CSR department won the Greentech CSR Award 2021 for its achievements towards rural development initiatives.

• "EKDKN Platinum Award-2021" from Sustainable Development Foundation, a unit of Ek Kam Desh Ke Naam, New Delhi for the environment preservation in the Mining & Power Sector category.

• Mine I won the "APEX India occupational Health & Safety Platinum Award-2021" from the APEX India Foundation, New Delhi in appreciation of its Occupational Health & Safety Practices.

• APEX India Foundation has also awarded Mine IA with "APEX India Green Leaf Award - 2020 (Platinum Category)" for eco innovation and APEX India Occupational Health Safety Award-2021, (Gold Category) for its OHS practices.

• Mine-II has been honoured with prestigious APEX India Occupational Health & Safety Awards - 2021 (Gold Category) for its excellent OHS practices.

• Greentech Foundation, New Delhi, has conferred Corporate Governance Award-2022 to the Corporate Environment Cell for the outstanding achievements in the fields of Governance, Risk Management and Compliance. Greentech Awards on Energy Conservation and Effective Safety Culture.

• Greentech Foundation, New Delhi, has conferred, Energy Conservation Award, 2021 to the Mine-I for its outstanding and exemplary initiatives and practices adopted to reduce energy consumption and for adopting Renewable energy for clean environment.

• Effective Safety Culture Award - 2021 was awarded to Mine-II by Greentech Foundation, for the contribution towards accident-free operation.

• Mine-I and Mine-II have bagged exceed Occupational and Safety Awards 2021, instituted by the Sustainable Development Foundation, (A unit of EK KAAM DESH KE NAAM).

• Public Relations & Society of India, has honoured with the first prize for the ''Best PSU implementing RTI.

• The Quality Circle of SME/RC division of Mine-I and the Quality Circle of, Electrical Township Maintenance division of TA department, won ''PAR Excellence Awards'', instituted by the Quality Circle Forum of India,

• Green Leaf Awards 2021 - Gold Award in "Energy Efficiency" & "Environment Excellence" to BTPS.

• Fly Ash Utilization Award 2021- For best practices & Fly ash management in TPS-II Exp.

• EKDKN Environmental Platinum Award 2020 for Environmental Protection.

• Grow Care India Environment Excellence platinum Award 2021 under Environment Preservation Category Compliance under the Right to Information Act, 2005

Your Company ensures compliance under the Right to Information Act, 2005. Central Assistant Public Information Officers representing different functional areas, Nodal Officer,Central Public Information Officer, Appellate Authority and Transparency Officer have been nominated to attend to the queries and appeals received under the RTI act in a time bound manner.

During the year 2021-22 under the above Act, 519 applications containing 1945 queries were received and 499 applications covering 1834 queries have been replied.

Compliance under Public Procurement Policy

The Ministry of Micro, Small and Medium Enterprises (MSMEs) has notified the Public Procurement Policy. The total procurement made from MSMEs during the year 2021-22 was 32.66% as against the target of 25%. Your Company has

on boarded on Trade Receivable e-Discounting System (TReDS), a platform which facilitates the financing of trade receivables of MSMEs from corporate and other buyers, including Government Departments and Public Sector Undertakings (PSUs), through multiple financiers.

Procurement through GeM Portal

During the year 2021-22, your Company has procured goods & services from Government e-Marketplace (GeM) Portal for ?516.28 crore, which is 200% as against 25% of the IMC guidelines. Efforts are being continuously made to maximize the procurement in GeM Portal by using the functionality of "Custom Bid" introduced in GeM during the year.

Citizen''s Charter

Your Company maintains Citizen''s Charter, indicating details of clients, customers under different heads, different system of redressal of grievance etc., and the same is regularly updated.

Conservation of Energy, Technology Absorption and Foreign Exchange Earnings and Outgo

The particulars required under Section 134(3) (m) of the Companies Act,2013 regarding conservation of energy, technology absorption and foreign exchange earnings and outgo are furnished in Annexure-2.

Management Discussion & Analysis Report and Report on Corporate Governance

The Management Discussion & Analysis Report is furnished in Annexure-3. The report on Corporate Governance on the compliance of Corporate Governance conditions stipulated by SEBI (Listing Obligations and Disclosure Requirements) Regulation,2015 and the DPE guidelines on corporate governance is furnished in Annexure-4.

The Auditors'' Certificate on the compliance of above Corporate Governance Conditions is furnished in Annexure - 5.

Statutory Disclosures under Companies Act,2013 and SEBI (LODR) Regulations, 2015 Annual Return

In accordance with the Companies Act, 2013, the annual return in the prescribed format is available at https://www.nlcindia.in/investor/AR1.pdf .

Particulars of Contracts or Arrangements with Related Parties

All related party transactions entered during the year 2021-22 were in the ordinary course of the business and are on an arm''s length basis. The disclosure of related party transactions as required under Section 134(3)(h) of the Companies Act, 2013 in Form AOC 2 is not applicable to your Company. Members may refer to note no. 42 to the financial statement which sets out related party disclosures pursuant to Ind AS-24.

Declaration by Independent Directors

The Independent Directors have given a declaration on meeting the criteria of independence as stipulated in Section 149(6) of the Companies Act, 2013 & Regulation 25(8) SEBI (LODR) and they have registered their names in the Independent Directors'' Databank.

Particulars of Employees

As per provisions of Section 197(12) of the Companies Act, 2013 read with Rule 5 of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014, every listed company is required to disclose the ratio of the remuneration of each Director to the median employee''s remuneration and details of employees receiving remuneration exceeding limits as prescribed from time to time in the Directors'' Report.

However, as per notification dated 5^th June, 2015 issued by the Ministry of Corporate Affairs, Government Companies are exempted from complying with provisions of Section 197 of the Companies Act, 2013. Therefore, such particulars have not been included as part of Directors'' Report.

Disclosures with respect to Demat Suspense Account/ Unclaimed Suspense Account in terms of SEBI (Listing Obligations and Disclosure Requirements) Regulations,2015.

As on 31^st March, 2022, there were no shares pending unclaimed in the Demat Suspense Account/unclaimed Suspense Account.

Material changes affecting financial position occurring between the end date of Financial Year and the date of the Report.

There are no material changes affecting the financial position of the Company between the end of the Financial Year and the date of this Report.

Sexual Harassment of Women at Workplace:

As required under Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act 2013, suitable mechanisms were put in place in NLCIL to address the issues faced by women employees. A separate Internal Complaints Committee has been constituted for looking into the complaints relating to sexual harassment of women at workplace. During the year 2021-22, two complaints were received and same were resolved and no case is pending.

Auditors Statutory Audit

M/s. R Subramanian and Company, LLP, Chartered Accountants and M/s. Manohar Chowdhry & Associates, Chartered Accountants were appointed by the Comptroller and Auditor General of India (C&AG) as the Joint Statutory Auditors for the year 2021-22 under Section 139 of the Companies Act, 2013.The Board of Directors of your Company has fixed ?43.00 lakh plus applicable taxes as the Statutory Audit fees for the year 2021-22, to be shared equally by the Joint Statutory Auditors.

Branch Audit

M/s. Dhoot & Associates, Chartered Accountants, has been appointed as the Branch Auditor for the year 2021-22 by C&AG for conducting the audit of Mine and Thermal Units at Barsingsar. The Board of Directors of the Company has fixed ? 3.0 lakh plus taxes as the Branch Audit fees for the year 2021-22.

M/s. Kadmawala & Company, Chartered Accountants, has been appointed as the Branch Auditor for the year 2021-22 by C&AG for conducting the audit of Mines at Talabira. The Board of Directors of the Company has fixed ? 3.0 lakh plus taxes as the Branch Audit fees for the year 2021-22.

Secretarial Audit

M/s. Kumar Naresh Sinha & Associates, Practicing Company Secretaries, was appointed as the Secretarial Auditor for the year 2021-22. The Secretarial Audit report for the year 2021-22 & the reply to observations of the Secretarial Auditors and the Secretarial Auditor Reports of the Subsidiary Companies are furnished in Annexure-6.

Cost Audit

M/s. Dhananjay V. Joshi & Associates, was appointed as the Cost Auditor for the year 2021-22 to conduct Cost Audit for Mines & Power Stations of the Company. The Cost Audit Report for the year 2020-21 was filed with Ministry of Corporate Affairs on 7^th Oct,2021 against the due date of 30^th November,2021.

In accordance with the provisions of Section 148(1) of the Act, read with the Companies (Cost Records and Audit) Rules, 2014, the Company has maintained Cost Accounts and Records.

C&AG''s Comments:

Comments of the Comptroller & Auditor General of India (C&AG) on the Financial Statements of the Company for the year ended 31^st March, 2022 under Section 143(6)(b) of the Companies Act, 2013 along with the Management reply to the comments thereon are furnished in Annexure-7.

Directors'' Responsibility Statement as per Section 134 (3) (c) & 134 (5) of the Companies Act, 2013

The Board of Directors declares that:

a. in the preparation of the annual accounts, the applicable accounting standards had been followed along with proper explanation relating to material departures;

b. the Directors had selected such accounting policies and applied them consistently and made judgments and estimates that are reasonable and prudent so as to give a true and fair view of the state of affairs of the Company at the end of the financial year and of the Profit and Loss of the Company for that period;

c. the Directors had taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions of the Companies Act, 2013 for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities;

d. the Directors had prepared the annual accounts on a going concern basis;

e. the Directors, had laid down internal financial controls to be followed by the Company and that such internal financial controls are adequate and were operating effectively; and

f. the Directors had devised proper systems to ensure compliance with the provisions of all applicable laws and that such systems were adequate and operating effectively.

Board of DirectorsAppointment

Details of appointment of Directors on the Board of the Company are as under:

a. Shri Dharmendra Pratap Yadav, Principal Secretary to Government of Tamilnadu, Energy Department and Part-time Official Director w.e.f. 15.06.2021.

b. Shri Subrata Chaudhuri, Part-time Non-official (Independent) Director, w.e.f. 05.11.2021.

c. Shri Prakash Mishra, Part-time Non-official (Independent) Director, w.e.f. 08.11.2021.

d. Prof.Nivedita Srivastava, Part-time Non-official (Independent) Director, w.e.f. 10.11.2021.

e. Shri Ramesh Chand Meena, Additional Chief Secretary to Government of Tamilnadu, Energy Department and Part-time Official Director w.e.f. 23.12.2021.

f. Shri M.Nagaraju, Additional Secretary, Ministry of Coal and Part-time Official Director, w.e.f. 03.01.2022.

g. Shri K Mohan Reddy, Director (Planning & Projects), w.e.f. 21.02.2022.

h. Shri M T Ramesh, Part-time Non-official (Independent) Director, w.e.f. 06.04.2022.

i. Dr. Suresh Chandra Suman, Director(Mines), w.e.f. 11.05.2022.

Cessation

The following Directors relinquished from the Board of Directors of the Company:

a. Shri Nadella Naga Maheswar Rao, Director (Planning & Projects) w.e.f . 01.06.2021 due to superannuation.

b. Shri S K Prabakar, Principal Secretary to Government of Tamilnadu, Energy Department and Part-time Official Director w.e.f. 04.06.2021.

c. Shri Prabhakar Chowki, Director (Mines) w.e.f. 01.09.2021 due to superannuation.

d. Shri Dharmendra Pratap Yadav, Principal Secretary to Government of Tamilnadu, Energy Department and Part-time Official Director w.e.f. 09.12.2021.

e. Dr. Vishnu Dev, Part-time Non-official (Independent) Director, w.e.f. 13.12.2021.

f. Shri Vinod Kumar Tiwari, Additional Secretary, Ministry of Coal and Part-time Official Director, w.e.f. 03.01.2022.

g. Shri R Vikraman, Director (Human Resources) w.e.f. 01.03.2022 due to superannuation.

h. Shri N K Narayanan Namboothiri, Part-time Non-official (Independent) Director w.e.f. 10.07.2022.

i. Dr. Muralidhar Goud, Part-time Non-official (Independent) Director w.e.f. 10.07.2022.

j. Shri Jaikumar Srinivasan, Director (Finance) w.e.f. 22.07.2022.

Your Directors wish to place on record their whole-hearted appreciation for the valuable guidance and services rendered by them during their tenure as Directors on the Board of the Company.

Further, pursuant to Section 152 of the Companies Act, 2013, Shri Ramesh Chand Meena, Director, will retire by rotation at the ensuing Annual General Meeting and being eligible offer himself for the re-appointment.

Acknowledgement

The Board of Directors of your Company places on record its sincere appreciation for the continued support and guidance extended by the Ministry of Coal, Ministry of Power, Ministry of New and Renewable Energy, Ministry of Finance, Ministry of Environment & Forest and Climate Change, Ministry of Industry, Ministry of Labour, Ministry of Railways, Ministry of Heavy Industries, NITI Aayog, DIPAM, DPE, Central Electricity Authority, Central & State Government Departments, Central & State Electricity Regulatory Commissions, Andaman & Nicobar Islands Administration, State Electricity Boards and beneficiaries of Tamil Nadu, Andhra Pradesh, Telangana, Karnataka, Kerala, Puducherry and Rajasthan and also the Joint Venture Partners, viz., Tamil Nadu Generation and Distribution Corporation Limited(TANGEDCO), Uttar Pradesh Rajya Vidyut Utpadan Nigam Limited(UPRVUNL), Coal India Limited, Mahanadi Coalfields Limited and Hindalco.

The Board of Directors of your Company is pleased to acknowledge with gratitude the cooperation and continued support extended by the Governments of Tamil Nadu, Rajasthan, Uttar Pradesh, Jharkhand and Odisha, V.O.C. Port Trust, Tuticorin and the District Administrations of Cuddalore, Tuticorin, Bikaner, Andaman & Nicobar, Sambalpur, Jharsuguda, Kanpur Nagar and Dumka. The support and co-operation extended by the Comptroller and Auditor General of India, Statutory Auditors, Branch Auditor, Internal Auditors, Cost Auditor, Secretarial Auditor, Director General of Mines Safety, Directorate of Industrial Health & Safety, Boiler Inspectorates, Chief Inspector of Factories, the Director of Boilers, Central Pollution Control Board, State Pollution Control Board, Chief Controller of Explosives, Chief Vigilance Commissioner, Coal Controller Officers, Regional Labour Commissioner, Regional Provident Fund Commissioner and other Statutory Authorities, the Company''s Bankers, Financial Institutions and KfW of Germany, Vendors, Suppliers, Contractors and other valued Stakeholders need special mention and the Directors acknowledge the same.

Your Directors also wish to place on record their appreciation for the dedicated work put forth by the Employees at all levels. The positive role played by the recognized Trade Unions and Associations of the Engineers and Officers in maintaining cordial industrial relations deserves special mention.

For and on behalf of the Board of DirectorsPlace : Neyveli Rakesh Kumar

Date : 29.08.2022. Chairman-cum-Managing Director

---

Mar 31, 2019

Dear Members,

The Board of Directors have pleasure to present the 63rd Directors’ Report on the business operations of the Company together with the Audited Financial Statements for the year ended 31st March, 2019.

Major Highlights

The major highlights during the year 2018-19 were as follows:

- Achieved the highest ever Consolidated Capex of Rs. 7208.16 crore and Standalone Capex of Rs.3670.01 crore.

- Solar Power Projects to the tune of 403.56 MW have been commissioned during the year.

- Achievement of Thermal Plant Load Factor (PLF) of 71.95 % against the National Average of 61.07%.

- Buy-back of equity shares comprising 9.29% of the paid-up capital at a price of Rs. 88 per share.

- Synchronisation of Unit 1 -500 MW of Neyveli New Thermal Power Station (NNTPS) in March 2019, the first of its kind for this capacity in Lignite based Thermal plants in India.

- Wage revision for Non-executives implemented without third-party intervention for the first time since inception.

- Power Trading License (Category I) for trading of Power has been granted by CERC.

- Power sold to DISCOMs at a competitive tariff.

Segment-wise Performance Mines

Your Company is presently operating three open cast lignite Mines at Neyveli in the State of Tamil Nadu and one opencast lignite Mine at Barsingsar in the State of Rajasthan. The total mining capacity of all the mines is 30.60 MTPA. The total overburden (OB) removal of 1708.94 Lakh Cubic Metre (LM3) and Lignite Production of 242.49 Lakh Tonne (LT) has been achieved during the year 2018-19.

Power

Thermal

Your Company is presently operating four Thermal Power Stations at Neyveli, Tamil Nadu and one Thermal Power Station at Barsingsar, Rajasthan with the total capacity of 3140 Mega Watt (MW).

Renewable Power

In the renewable energy sector, as on date your Company has set up Solar Power Plants aggregating 743.56 MW and Wind Power Plant of 51 MW, in total 794.56 MW.

Power Generation

During the year, the total Power Generation (Gross) of 20676.18 Million Units (MU) and Power Export of 17505.30 MU has been achieved in spite of Power surrender of 1891.47 MU witnessed from State DISCOMs.

The average Plant Load Factor (PLF) of the Thermal Power Plants of the Company as a whole during the year 2018-19 was 71.95% as against the National Average of 61.07%. Even though TPS-I crossed 58 years of operation, it has achieved a PLF of 64.74%. During the year 2018-19, DISCOMs had surrendered 1891.47 MU as against 2567.28 MU during 2017-18 but for this the overall power generation would have been still higher.

One of the 100 MW Units of Thermal Power Station-I (600 MW), was de-commissioned in September 2018. Productivity

The output per man shift achieved during the year 2018-19 as compared with the previous year is given below:

Product	Unit	2018-19	2017-18
Lignite	Tonne	14.11	13.14
Power	KWhr	26,197	24,755

Financial Performance

During the year ended 31st March, 2019, the Company had registered a revenue from operations of Rs. 7,145.92 crore as against Rs. 8,496.20 crore during the year2017-18.The Profit Before Tax (PBT) and Profit After Tax (PAT) for the year 2018-19 were Rs. 2,135.87 crore and Rs. 1,266.97 crore respectively, as against Rs. 2,640.67 crore and Rs. 1,848.78 crore respectively during the previous year ended 31stMarch, 2018.

On a Consolidated basis, the total revenue from operations for the year 2018-19, was Rs. 9,870.93 crore against Rs. 11,288.39 crore in 2017-18. The PBT and PAT for the year 2018-19 were Rs. 2,561.40 crore and Rs. 1,537.35 crore respectively as against Rs. 2,820.67 crore and Rs.1,956.78 crore respectively in the year 2017-18.

The details of profit earned for the financial year 2018-19 and appropriation of the same are as follows:

Rs. in crore

Particulars	Standalone		Consolidated
	2018-19	2017-18	2018-19	2017-18
Revenue from operations	7,145.92	8,496.20	9,870.93	11,288.39
Profit Before Tax	2,135.87	2,640.67	2,561.40	2,820.67
Tax Provision	868.90	791.89	1,024.05	863.89
Profit /(Loss) for the year after tax (PAT)	1,266.97	1,848.78	1,537.35	1,956.78
Appropriation
Transfer (to) / from Interest Differential Fund Reserve	(8.07)	(12.28)	(8.07)	(12.28)
Transfer (to) / from Bond Redemption Reserve	150.00	(15.00)	150.00	(15.00)
Transfer (to) / from PRMA Reserve Fund	(16.83)	(10.87)	(16.83)	(10.87)
Transfer (to) / from Contingency Reserve	(10.00)	(10.00)	(10.00)	(10.00)
Transfer (to) / from Capital Redemption Reserve	(141.93)	-	(141.93)	-
Buy back Premium	(1,107.07)	-	(1,107.07)	-
Dividend (Interim 2018-19 & Final 2017-18)	(669.42)	(646.58)	(669.42)	(648.99)
Tax on Dividend	(137.60)	(127.67)	(137.60)	(132.12)

Dividend

During the year 2018-19, the Board of Directors of your Company paid an Interim Dividend of 45.30% (Rs. 4.53 per equity share) amounting to Rs. 628.15 crore and the same has been treated as the Dividend for the year 2018-19.

Buy-back of shares by the Company

During the year under review, the Board of Directors of your Company had accorded approval for buy-back of shares of the Company up to 14,19,31,818 equity shares at Rs. 88 per equity share. As per the above decisions, 14,19,31,818 number of equity shares were bought back which included 11,26,11,825 shares offered by the President of India. The Paid-up share Capital of the Company post buy-back was Rs.1386,63,66,090.

Projects under Construction / Implementation / Formulation

The following Projects are under implementation:

Mining Sector

Description	Capacity (MTPA)	Project Cost (Rs. in crore)	Cumulative Capex as on 31st March, 2019 (Rs. in crore)	Expected COD / Status
Talabira II & III Coal Blocks in Odisha	20.00	2,401.07	466.79	2019-20
Expansion of Mine I & IA Lignite Mines in Neyveli	4.00	709.06	434.45	2020-21
Bithnok Lignite Mine in Rajasthan	2.25	513.63	175.30	Presently on hold
Hadla Lignite Mine in Rajasthan	1.90	522.45	9.88

Power Sector

Description	Capacity (MW)	Project Cost (Rs. in crore)	Cumulative Capex as on 31st March, 2019 (Rs. in crore)	Expected COD / Status
Neyveli New Thermal Power Project (NNTPP) in Neyveli	2x500	7,080.41	6,318.20	2019-20
Bithnok Lignite Thermal Power Project in Rajasthan	1x250	2,196.30	173.83	Presently on hold
Barsingsar Thermal Power Extn. Project in Rajasthan	1x250	2,112.59	158.25

Renewable Sector

Description	Capacity (MW)	Project Cost (Rs. in crore)	Cumulative Capex as on 31st March, 2019 (Rs. in crore)	Expected COD / Status
Solar Power Project in Tamilnadu	709	3,035.93	1,523.70	2019-20
Solar Power Project in Andaman Islands	20	130.77	38.51	2019-20

Subsidiaries/Joint Venture Projects

NLC Tamil Nadu Power Limited (NTPL) - Tuticorin Power Project (1000 MW)

Members may be aware that NTPL, the Subsidiary Company is operating a coal based thermal power plant at Tuticorin in Tamil Nadu, consisting of two units of 500 MW capacity each. During the year 2018-19, the power generation was 5,486.63 MU (excluding surrender of 1,449.35 MU) as against 5,413 MU in the year 2017-18 with a PLF of 62.63%. The reduction in generation was mainly attributable to the failure of Generator in Unit 2.

During the year ended 31st March, 2019, NTPL in its full year of operation registered a revenue from operations of Rs.. 2,757.52 crore and the Profit Before Tax & Profit After Tax for the year 2018-19 were Rs. 425.89 crore and Rs.270.74 crore respectively.

Neyveli Uttar Pradesh Power Limited (NUPPL) - Ghatampur Thermal Power Project (1980 MW -3x660 MW) linked to Pachwara South Coal Block

As stated in earlier Directors’ Report, NUPPL, the Subsidiary Company is implementing the 3 x 660 MW Ghatampur coal based Thermal Power Project (GTPP) at GhatampurTehsil, Kanpur Nagar District in the State of Uttar Pradesh at a cost of Rs.. 17,237.80 crore with commissioning schedule of Unit I in November, 2020, followed by other two units at an interval of 6 months each. The Company had signed a Power Purchase Agreement (PPA) with Uttar Pradesh Power Corporation Limited (UPPCL) for availing 75% of the Power from GTPP. Further to the request made, UPPCL has agreed to procure the balance 25% of power and the same is under the process of approval from the Ministry of Power. The Project has achieved a CAPEX of Rs.. 3,517.82 crore in the year 2018-19. The cumulative expenditure incurred since inception up to 31st March 2019 is Rs. 5,674.03 crore.

Pachwara South Coal Block (11.00 MTPA)

NUPPL, the Subsidiary of your Company has been allotted with the Pachwara South Coal Block, in the State of Jharkhand, with a capacity of 11.00 MTPAat an estimated cost of Rs.. 1,795 crore.

In order to develop and operate the above Coal Blocks, MIPL GCL Infracontract Private Limited has been appointed as the Mine Developer & Operator (MDO). Detailed exploration & drilling (10,000 Mtr), geographical logging, analysis & preparation of geological report are under progress. Bridge Coal Linkage to GhatampurThermal Power Project (GTPP) for 3 years (2020-2023) has been submitted to Ministry of Coal. The cumulative expenditure incurred up to 31st March 2019 was Rs. 5.94 crore.

MNH Shakti Limited

Mahanadi Coalfields Limited, your Company and Hindalco jointly formed MNH Shakti Limited with equity participation of 70:15:15 to implement 20.0 MTPA Coal Mining project in Talabira, in the state of Odisha. The Talabira II & III Coal Blocks allocated for this purpose have been cancelled pursuant to judgment of Hon’ble Supreme Court of India and the Coal Mines (Special Provisions) Ordinance, 2014. The JV Company has proposed for winding up and necessary formalities are underway.

Loans, Guarantees and Investments

Details of loans and investments covered under the provisions of Section 186 of the Companies Act, 2013 forms part of the Financial Statements.

Deposits

The Company has not accepted any deposits from the public during the year.

Bonds

During the Financial year 2018-19, 8.83% Secured, Redeemable, Taxable, Non-convertible Debentures of Rs.. 10 lakh each aggregating to Rs. 600 crore raised during the year 2009 were redeemed on 23rd January 2019 as per the terms of allotment.

Secured, Non-Cumulative, Non-Convertible, Redeemable, Taxable Bonds of Rs.. 10 lakh each for a tenure of 10 years at coupon rate of 8.09% p.a.in the nature of debentures through Private placement amounting to Rs. 1,475 crore has been issued on 29th May 2019.

Borrowing & Credit Rating

During the year, your Company has tied up for an amount of Rs.. 6,053.75 crore from the Banks for its ongoing projects and operational requirements.

Highest credit ratings (AAA/Stable) have been accredited by top Credit Rating Agencies for all of its existing borrowing facilities obtained for various projects by your Company.

Commercial

As stated earlier, the power surrendered by the DISCOMs/ Beneficiaries during the year 2018-19 was1,891.47 MU as against 2,567.28 MU in the year 2017-18. Power surrender is due to lesser demand conditions, availability of cheaper power in the market etc. However, your Company has sold Un-requisitioned Surplus (URS) power in the market and during the year under review 980.35 MU of surrendered power were sold through power exchanges, thereby fetching a revenue of Rs.. 288.45 crore.

Power Dues / Realisation

The outstanding power dues of the Company as on 31st March, 2019 was Rs. 5,131.32 crore as against Rs. 3,644.76 crore for the corresponding period of the year ended 31st March, 2018. The dues beyond the 60 days’ limit as on 31st March, 2019 was Rs. 3,972.90 crore as against Rs. 2,161.18 crore for the corresponding period of the previous year ended 31stMarch, 2018.

Land Acquisition and Rehabilitation & Re-settlement (R & R) Policy

Your Company takes care of the Project Affected Persons (PAPs) through appropriate R & R Policy measures and the trauma of displacement is thereby minimised. Your Company follows the guidelines issued by the Government of India, from time to time on R&R for the on-going projects. Apart from development of Re-settlement Centres (RCs) in the Project vicinity, these centres are being provided with good infrastructure facilities. As a result, the eligible project affected families have smoothly re-settled in these RCs.Apart from the rehabilitation measures, legal compensation for loss of assets as directed by the appropriate Government have been provided with the co-operation of the District administration. Peripheral developmental works viz., formation and improvement of existing village roads, skill development programmes for PAPs have been carried out during the year.

New Land Acquisition Act

The “Right to Fair Compensation and Transparency in Land Acquisition Rehabilitation and Resettlement Act - 2013” (RFCTLARR) is applicable since 01.01.2014. However, the Govt. Of Tamilnadu had passed an amendment act-”Right to Fair Compensation and Transparency in Land Acquisition Rehabilitation and Resettlement (Tamil Nadu Amendment)Act-2014, to exclude the Tamilnadu Acquisition of Land for Industrial purposes Act, 1997 (TamilNadu Act No.10/99)” from other provisions of the Central Act, except the provisions relating to the determination of the compensation and rehabilitation & resettlement and land acquisition for NLCIL is continued under “Tamil Nadu Acquisition of Land for Industrial purposes Act, 1997 (Tamilnadu Act No.10/99).”

Subsequently a G.O. dated 21.02.2018 has been issued by Industries Department of GoTN for determination of land compensation as per the RFCTLARR Act 30/2013 by adopting the provisions of Land compensation as per Schedule 1 for the lands being acquired under the above State Government Act.

Research and Development (R & D)

Centre for Applied Research & Development (CARD) is the in-house R&D Centre of the Company and has been recognised by the Department of Science & Technology. CARD is carrying out various activities relating to environmental measures like monitoring of air, water and soil dump. CARD renders analytical services to production / service units of the Company with its well-established analytical facilities. CARD has been granted NABL accreditation by National Accreditation Board for Testing and Calibration Laboratories (NABL) based on the International Standard ISO/IEC 17025:2005.

The total R&D expenditure, incurred during the year 2018-19 was Rs.16.79 crore.

Human Resource

Your Company takes pride in its competent and highly motivated human resources significantly contributing to the growth and Mission of the Company. Human resource is the backbone of the Company in driving operational and financial performance. The Human resource philosophy of your Company is to create a holistic work environment where employees get opportunities to realise and enhance their potential. The thrust on achieving higher growth and optimal utilisation of manpower continued in the year under review. The total manpower of the Company as on 31st March, 2019 stood at 13,464. During the year 2018-19, the major HR related activities were as under:

- As per revised DPE Guidelines on professionalizations of below Board Level Management and action plan was chalked out.

- Voluntary Retirement Scheme was rolled out in which 78 Executives and 67 Non-Executives opted and benefitted.

- On-boarding Policy for new hires was revamped to groom inductees to take up greater responsibilities.

Skill Development

Your Company fosters the culture of continuous learning and development to strengthen the potential & competency of its employees. Learning & Development Centre (L&DC) continuously strives to gleam the in-house talents and espouse latest technological breed for the betterment of your Company’s business progression. During the year, 770 in-house programmes covering 32,803 participants were organised. Total training man-days for executives was 31,940 days averaging 8.01 training man-days, for non-unionised supervisors 1,836.5 training man-days averaging 5.27 man-days and for non-executives was 25,292 training man-days averaging 4.37 man-days per person.

In addition to above, Apprentices were also given Training as per Statutory Guidelines of the Regional Director of Apprenticeship Training, Chennai (RDAT) and the Board of Apprenticeship Training (BOAT) of Southern Region, Chennai. During the year 2018-19,1,318 candidates were imparted trainings in various disciplines.

Industry Institution Interaction Programme

As part of the MoU entered into with Annamalai University, L&DC is serving as nodal centre and facilitating the infrastructure facility and faculty service for conducting the programme and around 46 Executives are pursuing the course.

During the year, Vocational Project Training was given to 352 Mining & 89 Geology students from various parts of India. Internship Training was offered to 441 students of various disciplines of UG and 167 students of various disciplines of PG courses.

Knowledge Management Initiatives

Your Company is ranked in the top 8 contributors among 174 participating CPSEs in India in terms of users, uploaded case studies, and documents in SAMANWAY Portal.

Industrial Relations

Your Company continued its faith in participative management and has a regular system of holding bipartite structured meetings with the Recognised Unions (collective bargaining agents)/Associations for addressing the common issues of the employees.

During the year, Memorandum of Understanding (MoU) was reached between the Company and Recognised Trade Unions for Wage Revision w.e.f 01.01.2017. The above MoU was reached Bi-partite without any third party intervention. Further, the periodicity for the settlement is for 10 years as against 5 years as in the past. For the first time, the individual and also the Unit performance have been incorporated in the Unified Incentive Scheme evolved replacing four different Incentive Schemes.

The above settlements were achieved without any strike/agitation which is for the first time in the history of the Company.

The industrial relations remained peaceful and cordial during the year 2018-19.

Reservation of Posts

Your Company follows the reservation policy for SCs, STs and OBCs as per the presidential directives and Government of India Guidelines. The group-wise Men-in-position (MIP) as on 31st March, 2019 stands as follows:

Group	Total	Strength of SC/ST/OBC			% of SC/ST/OBC
	Strength	SC	ST	OBC	SC	ST	OBC
A	3,682	777	297	470*	21.10	8.07	12.76*
B	304	58	26	79	19.08	8.55	25.99
C	8,661	1,660	87	2,715	19.17	1.00	31.35
D	817	176	2	448	21.54	0.24	54.83
Total	13,464	2,671	412	3,712	19.84	3.06	27.57

‘strength of OBCs on rolls after reservation for OBCs came in to effect (i.e 08-09-1993).However more than adequate strength of BCs were recruited prior to reservation for OBCs came into effect.

Educational Assistance and Tuition Fee Concession

Your Company implements Educational Assistance schemes to the wards of General, SC/ST, OBC category employees and Contract Workmen for pursuing under graduate Degree / Diploma/ Professional courses till course duration subject to a maximum of five years. Under Contract Workmen Educational Assistance Scheme, scholarships are earmarked exclusively for girl children. Besides, a separate Cash Award Scheme and a Scholarship Scheme under CSR were also provided for the benefit of Girl Children studying in the peripheral districts of Barsingsar Project, Rajasthan.

Your Company also reimburses the tuition fees for students belonging to SC/ST/OBC category studying in Jawahar Science College, Neyveli every year.

Compliance under Persons with Disabilities Act, 2016

Your Company ensures compliance of provisions under the Rights of Persons with Disabilities Act, 2016. A comprehensive policy for Persons with Disabilities (PwDs) as per the guidelines issued by DoPT for providing certain facilities / amenities to PwDs is in place. The strength of PwDs as on 31st March 2019 stood at 208.

Various Social welfare measures for the upliftment of the Physically Challenged and mentally challenged persons are implemented through Neyveli Health Promotion and Social Welfare Society (NHPSWS) and “SNEHA” Opportunity Services patronised by your Company.

- Neyveli Health Promotion and Social Welfare Society (NHPSWS)

Running a school “SHARAVANEE” exclusively for the Hearing Impaired children, retail outlets /provision shops “VAIGAI” and Rehabilitation Centre (RHC) for cane weaving, knitting of wire chairs, repair works of chair seats, office files & book binding works, by engaging disabled persons. Through the society, Tricycles, Wheel chairs, hearing aids etc., are distributed at free of cost to the disabled persons during Independence Day and Republic Day celebrations.

- SNEHA Opportunity Services and School

SNEHA school provides comprehensive rehabilitation services with holistic approach to help children with intellectual disabilities to achieve social, mental, psychological, emotional developments by maximizing their potential. SNEHA achieves the above goal through multi-disciplinary therapeutic intervention involving special educators, speech therapist, physiotherapist, Yoga therapist, Music Therapist, Vocational instructors and medical professionals. At present, 71 children are on roll out of which 53 are from the surrounding villages.

Implementation of Official Language Act, 1963

In line with the Policy of Government of India and the Provisions prescribed under the Official LanguageAct 1963, your Company has made concerted efforts to promote the Official Language and implementation of the Policy. Your Company was awarded 1st Prize in “RAJBHASHA FIELD” for the best performance of the Official Language Implementation among the member offices of Town Official Language Implementation Committee (TOLIC)/ Pondicherry, for the year 2018-19.

Schools

Your Company is presently running 10 Schools catering to the student strength of 5,114 nos. More than 95% of the students studying in these schools are from the peripheral villages, wards of contract employees, daily wages workmen and others who are with very poor means.

Apart from the above, there are 27 schools functioning in Neyveli having student strength of around 23,200. Special coaching is given in one of the schools run by Jawahar Education Society (patronised by your Company) to the students appearing for NEET and IIT JEE Examinations. A good number of students studying in this school are getting admission in IITs/NITs and Medical Colleges every year and 18 students got admission in the medical colleges and 21 students in IITs/NITs/BITS in theyear2018.

Sports Development Centre

Sports Development Centre (SDC) has been promoting sports activities among the Neyveli School students, youth and NLC employees. SDC train Neyveli School students in various disciplines and the students have been sponsored to participate in many tournaments. This has resulted in the form of notable achievements at State, National and even at International level and won various medals/trophies.

Care for Elders

To enhance the recognition of the dignity of the elders and to eliminate all forms of neglect, abuse and violence and to provide a healthy, secured and recreational environment, an elders home in the name of a NANDAILLAM is run by your Company in Neyveli, which can accommodate around 150 elders. The present strength is 47. The employees of your Company also contribute a fixed amount every month from their salaries for running the home.

Health Care

Your Company is on the fore front in aligning the vision of protection, preservation and promotion of health and wellbeing of its workforce with its business plan that support sustainable outcome of the Company and drive higher values to the organization. Your Company’s hospital has a 350 bed secondary level acute care facility for benefitting employees, contract workmen, CISF and their dependents. Availability of quality medical care at secondary level enhances their accessibility to health facility and utilisation of medical services that contribute to achieving sustainable results in Human Development Indices among workforce and their family members in terms of quality of life and longevity. In addition, your Company’s Hospital meets out super specialty care services in cardiology, neurology, nephrology, oncology, endocrinology, urology, haematology, immunology and gastroenterology etc., through empanelling private players on competitive pricing.

Your Company’s Hospital implements Revised National Tuberculosis Control Programme, Universal Immunization Programme, National Aids Control Programme and National Leprosy Eradication Programme by providing clinical support and infrastructure facilities for efficient delivery of these services which determine health outcome of rural population in neighbouring villages with positive results.

Your Company’s Hospital also runs Pradhan Mantri Bharatiya JanAushadhi Store, a Fair price shop within the premises of Hospital.

Forum of Women in Public Sector (WIPS)

WIPS NLCIL chapter was formed in the year 1990 and is a Corporate Life member in SCOPE since 1990.The strength of women employees in your Company as on 31st March 2019 stood at 1004 constituting 7.46% of Company’s human resource. Various programmes/projects undertaken by WIPS during the year 2018-19 were:

- Health awareness programme

- Programme for adolescent girl children

- Swachh Pakhwada programme

Safety

Your Company is taking pioneering efforts in the industrial safety area. Central Safety Wing conducts Risk Assessment and Safety Audit for Thermal Power Stations & Mines periodically by engaging accredited external agencies. The recommendations submitted by the said agencies are being implemented with a focus to achieve ‘Zero’ harm at Unit Level.

Safety related trainings like Basic, Refresher, on-the-job, Job related briefing etc., are being imparted to all sections of employees in well-designed training centres like Group Vocational Training Centre in Mines, Power Station Training Centre and Learning & Development Centre. On this extensive training of various kinds, there is a considerable increase in the level of safety awareness among the employees and contract workers.

Environmental Management & Sustainable Development Projects

Your Company practices and promotes the best environment management plan and is committed to environment friendly mining and power generation. The environment policy of your Company is in line with the Vision and Mission Statement and three Thermal Power Stations in Neyveli, Tami Nadu, one Thermal Power Station in Barsingsar, Rajasthan, three Lignite Mines in Neyveli, Tami Nadu and one lignite Mine at Barsingsar, Rajasthan have been certified with ISO 14001:2004 (Environmental Management System), ISO 9001:2008 (Quality Management System) and OHSAS18001:2007 (Occupational Health and Safety Management System) certifications.

During the year 2018-19, mined out land to the extent of 155.99 Ha have been reclaimed at Neyveli and Barsingsar Mines. Orchards and herbal cultivation have been undertaken in 118.41 Ha in the reclaimed area. Slope stabilisation of the Mines Overburden dumps has been undertaken with a view to convert the mine spoil into cultivable soil making fit for habitation.

In order to maintain the green belt your Company continues to plant extensive trees in and around Neyveli Township and production Units, which helps in maintaining clean environment, dust suppression, noise control, lowering the atmospheric temperature and maintaining ecological balance.

Consequent to the amendment of Environment (Protection) Rules, 1986, the norms for water consumption and emissions from Power Plants [Particulate Matter(PM 2.5 & PM10), Sulphur dioxide (SO2), Oxides of Nitrogen (NOx) & Mercury (Hg)] have been made stringent for the existing as well as new Thermal Power Plants. In this regard, tender for installation of Flue Gas De-sulphurisation (FGD) Systems is in progress.

Risk Management

Your Company has developed a comprehensive Integrated Risk Management (IRM) framework. Risk Management is being practised by your Company in all units and the possible risks associated with the business are identified and mitigation plans are evolved. The risks together with the mitigation plans and their implementation programmes are reviewed by the Risk Management Committee, Audit Committee and Board periodically.

Vigilance

The activities undertaken by the Vigilance Department are pro-active, preventive & punitive and other measures to sensitize the employees of the Company. Complaints received in the department are dealt as per the “Complaint Handling Policy” and are processed using the Complaint Tracking System (CTS) from receipt upto disposal. As a preventive measure, Surprise Checks, Regular Checks, Quality Checks, Follow-up Checks and CTE type examinations are conducted. Integrity Pact with the suppliers/contractors for all Tenders with estimate of Rs.. 1 crore and above are monitored and review meetings of Independent External Monitors (IEMs) with senior officials of the Company are held once in a quarter and IEMs meet with vendors and contractors are held once in a year.

As a long term measure, Vigilance Department has introduced “Ethical Forum/ Integrity Club” in Schools and Colleges around Neyveli, Tuticorin and at Barsingsar, Rajasthan, to impact ethical awareness and ethical character education programme to the School students. Around 2,800 students have enrolled in the Ethical Forum/ Integrity Club. The objective of the programme is to bring a higher order of Morality, Integrity Honesty and Social Responsibility among young citizens.

During the year 2018-19, Vigilance Department received 305 complaints in addition to 10 pending complaints of previous year (totally 315 complaints). Out of 315 complaints, 312 (99%) have been disposed of. Out of that 312 complaints disposed, 195 complaints were Anonymous/Pseudonymous, 60 complaints have been sent for administrative action to the respective units and investigation was done for 57 complaints by Vigilance Department and disposed off.

MoU with Transparency International

Your Company has signed a Memorandum of Understanding with Transparency International India, part of Asia Pacific forum. Structured meetings are held with the Independent External Monitors (IEMs) wherein procurement related issues and complaints thereupon are taken up. During the year 2018-19, one Vendor meeting and two review meetings of the Independent External Monitors were held.

Corporate Social Responsibility

Your Company, as a socially responsible corporate citizen, continues to carry out developmental works in the surrounding villages, right from its inception, focusing on the socio-economic development of the operating regions for achieving inclusive growth.

- In the Year 2018-19, Your Company had adopted a Corporate Social Responsibility Policy covering the various sectors of sustainable socio-economic development. The Policy is available in the Company’s Website https://www.nlcindia.com/new_website/index.htm

- Your Company outlays funds for the CSR projects, programs and activities selected for implementation under the CSR Policy.

- The CSR Committee of the Board is monitoring the implementation of the CSR Projects. The Board of Directors reviews the same and it is ensured that your Company spends, in every financial year, at least 2% of the average net profits of the Company for the last three years.

- Timeframes and milestones are fixed through Baseline Survey before commencement of the CSR Projects.

- Initiatives of State/ Central Government Departments/Agencies are dovetailed/synergized with the CSR Activities of your Company.

The CSR projects taken up by your Company for the year 2018-19 amounts to Rs. 49.46 crore which is more than 2% of the average net profits of the Company for the last three years, as detailed inAnnexure-1

Awards & Recognition

In recognition of its various activities, your Company has been conferred with the following awards during the year 2018-19:

- Prestigious “Brands of the Decade” award, in recognition of its Vision and Mission in accordance with an exigent business model for massive expansion projects spreading across India.

- Apex India CSR Excellence Award for its outstanding achievement in Corporate Social Responsibility at the Apex India ExcellenceAwards2017 presentation.

- Adjudged as the fastest growing Public Sector Enterprise (Navratna Category) by the Hindustan times group based on a study/survey by Price Waterhouse Cooper under the Navratna Category.

- Bagged the prestigious Dun & Bradstreet PSU Award 2018 in the Best Growth Performance - Power Generation category.

- Bagged the most prestigious NIPM Award for Best HR Practices in category A Organisations, NIPM Best IR Strategist Award and Best Development Programme in PSU for Middle Management at World HRD Congress, Mumbai.

- Neyveli Second Thermal Power Station conferred with the coveted CBIP Award 2019 at the Central Board of Irrigation & Power (CBIP) Day Celebration for best performing Utility in Thermal Power Sector.

- Platinum and Gold awards from GROW CARE INDIA& EKDKN supported by MoEF & CC, Government of India for Eco-care activities of Environment Management and Sustainability.

- Mine I was chosen for the National Safety Award for the longest accident free period and outstanding safety performance.

- Mine I was awarded “Annual GREENTECH Safety Award - 2018 (Gold)” in Mining sector for outstanding performance in Safety Management and Occupational Health Services.

- Barsingsar Lignite Mine won first prize in overall safety performance in the North Zone, Bhilwara.

- Best Enterprise Award 2019 instituted by National WIPS Forum.

- Best Development Progamme in PSUs for Middle Management and Best Apprentices Development Programme. Compliance under the Right to Information Act, 2005

Your Company ensures compliance under the Right to Information Act, 2005. Central Assistant Public Information Officers representing different functional areas, Nodal Officer, Central Public Information Officer, Appellate Authority and Transparency Officer have been nominated to attend to the queries and appeals received underthe RTI act in a time bound manner.

During the year 2018-19, under the above Act, 376 applications containing 1515 queries were received and 359 applications covering 1433 queries have been replied.

Compliance under Public Procurement Policy

The Ministry of Micro, Small and Medium Enterprises (MSMEs) has notified the Public Procurement Policy and in terms of the notification issued has set an annual target of 20% for procurement from MSMEs for the three years beginning from the financial year 2012-13. After a period of three years i.e. from 1st April, 2015, overall procurement goal of minimum 20% is made mandatory. The target set for the financial year 2017-18 for procurement of such items which are within the scope of MSMEs was 20% and subsequently the same was amended as 25% as per Govt. gazette notification dated 09.11.2018. As against the above, the achievement made for the year 2018-19 was 28.24%.

Citizen’s Charter

Your Company maintains Citizen’s Charter, indicating details of clients, customers under different heads, different system of redressal of grievance etc., and the same is regularly updated.

Conservation of Energy, Technology absorption and Foreign Exchange Earnings and Outgo

The particulars required under Section 134(3) (m) of the Companies Act,2013 regarding conservation of energy, technology absorption and Foreign exchange earnings and outgo are furnished inAnnexure-2.

Management Discussion &Analysis Report and Report on Corporate Governance

The Management Discussion & Analysis Report is furnished in Annexure-3. The report on Corporate Governance on the compliance of Corporate Governance conditions stipulated by SEBI (Listing Obligations and Disclosure Requirements) Regulation, 2015 and the DPE guidelines on Corporate Governance is furnished inAnnexure-4.

The Auditors’ Certificate on the Compliance of above Corporate Governance Conditions is furnished inAnnexure-5.

Statutory Disclosures under Companies Act, 2013 and SEBI (LODR) Regulations, 2015 Extract of annual Return

The extract of annual Return in terms of Section 134(3) read with 92(3) of the Companies Act,2013 is placed in Annexure-6.

Particulars of Contracts or Arrangements with Related Parties

All related party transactions entered during the year 2018-19 were in ordinary course of the business and are on an arm’s length basis. The disclosure of related party transactions as required under Section 134(3)(h) of the Companies Act, 2013 in FormAOC2 is not applicable to your Company. Members may refer to note no. 42 to the financial statement which sets out related party disclosures pursuant to INDAS-24.

Declaration by Independent Directors

The Independent Directors have given a declaration on meeting the criteria of independence as stipulated in Section 149(6) of the Companies Act, 2013.

Particulars of Employees

Particulars of Employees as required under Rule 5(2) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules,2014-Nil.

Disclosures with respect to demat suspense account/unclaimed suspense account in terms of SEBI(Listing Obligations and Disclosure Requirements) Regulations, 2015.

During the year, 200 shares lying unclaimed in the demat suspense account / unclaimed suspense account was claimed by the Claimant. As on 31st March, 2019, there were no shares pending unclaimed in the demat suspense account/unclaimed suspense account.

Material changes affecting financial position occurring between the end date of Financial year and the date of the Report.

There are no Material Changes affecting the financial position of the Company between the end of the Financial Year and till the signing of financials i.e. 30.05.2019.

Sexual harassment of women at workplace

A separate Committee has been constituted for looking into the complaints relating to sexual harassment of women at workplace. During the year 2018-19, no complaint was received in this regard.

Auditors

Statutory Audit

M/s.Chandran & Raman, Chartered Accountants, Chennai and M/s.P.K.K.G. Balasubramaniam & Associates, Chartered Accountants, Tiruvannamalai were appointed by the Comptroller and Auditor General of India (C&AG) as the Joint Statutory Auditors for the year 2018-19 under Section 139 of the Companies Act,2013.The Board of Directors of your Company has fixed Rs. 30 lakh plus applicable taxes as the Statutory Audit fees, to be shared equally by the Joint Statutory Auditors.

Branch Audit

M/s.Bhandawat & Co., Chartered Accountants, Jaipur has been appointed as the Branch Auditor for the year 2018-19 by C&AG for conducting the audit of Mine and Thermal Units at Barsingsar. The Board of Directors of the Company has fixed Rs. 2.5 lakh plus taxes as the Branch Audit fees for the year 2018-19.

Secretarial Audit

M/s.A.K. Jain &Associates, Practicing Company Secretaries, Chennai was appointed as the Secretarial Auditor for the year 2018-19.The Secretarial Audit report for the year 2018-19 and the reply to observations of the Secretarial Auditors are furnished inAnnexure-7.

Cost Audit

M/s.Bandyopadhyaya Bhaumik & Co, Kolkata was appointed as the Cost Auditor for the year 2018-19 to conduct cost audit for Mines & Power Stations of the Company. The cost audit report for the year 2017-18 was filed with Ministry of Corporate Affairs on 10th October 2018 against the due date of 19th October 2018.

C&AG’s Comments

C&AG’s Comments on the accounts for the year ended 31st March, 2019 is furnished inAnnexure - 8.

Directors’ Responsibility Statement as per Section 134(3)(c) of the Companies Act, 2013

The Board of Directors declares that:

(a) in the preparation of the annual accounts, the applicable accounting standards had been followed along with proper explanation relating to material departures;

(b) the Directors had selected such accounting policies and applied them consistently and made judgements and estimates that are reasonable and prudent so as to give a true and fair view of the state of affairs of the Company at the end of the financial year and of the profit and loss of the Company for that period;

(c) the Directors had taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions of the Companies Act, 2013 for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities;

(d) the Directors had prepared the annual accounts on a going concern basis;

(e) the Directors, had laid down internal financial controls to be followed by the Company and that such internal financial controls are adequate and were operating effectively; and

(f) the Directors had devised proper systems to ensure compliance with the provisions of all applicable laws and that such systems were adequate and operating effectively.

Board of Directors Appointment

Shri. Rakesh Kumar, Director (Finance) & Chief Financial Officer was appointed as the Chairman-cum-Managing Director, w.e.f. 28.09.2018. Presently, Shri Rakesh Kumar also holds Additional Charge of Director (Finance) & Chief Financial Officer of the Company.

The following were appointed as the Directors on the Board of the Company:

a. Shri. Nadella Naga Maheswar Rao, Director (Projects and Planning) w.e.f. 29.06.2018.

b. Shri. Md.Nasimuddin, Principal Secretary to Government of Tamilnadu, Energy Department, Part-time Official Director w.e.f. 24.09.2018.

c. Shri. K.Madhavan Nairand Shri.Azad Singh Toor, Independent Directors w.e.f. 17.11.2018

d. Shri. Prabhakar Chowki, Director (Mines) w.e.f. 28.11.2018.

e. Dr. P. Vishnu Dev, Independent Director w.e.f. 19.12.2018.

f. Shri. Shaji John, Director (Power) w.e.f. 17.04.2019.

g. Shri. Vinod KumarTiwari, Additional Secretary, Ministry of Coal, Part-time Official Director w.e.f. 03.05.2019. Cessation

Shri. Sarat Kumar Acharya relinquished the charge as Chairman and Managing Director w.e.f. 31.07.2018.

The following Directors relinquished from the Board of Directors of the Company:

a. Shri. P.Selvakumar, Director (Planning & Projects) on 31.05.2018.

b. Shri. SubirDas, Director (Mines) on 30.06.2018.

c. Shri. Vikram Kapur, Part-time Official Directoron 27.08.2018.

d. Smt. MonikaArora, Independent Director w.e.f. 30.08.2018.

e. Shri. Chandra Prakash Singh, Independent Director w.e.f. 17.11.2018.

f. Shri. V.Thangapandian, Director (Power) on 31.03.2019.

g. Shri. Suresh Kumar, Part-time Official Director w.e.f. 10.04.2019.

Your Directors wish to place on record their whole-hearted appreciation for the valuable guidance and services rendered by the above Directors during their tenure, as Directors on the Board of the Company.

Further, pursuant to Section 152 of the Companies Act, 2013, Shri.Nadella Naga Maheswar Rao, Director, will retire by rotation at the Annual General Meeting and being eligible offer himself for re-appointment.

Acknowledgement

The Board of Directors of your Company places on record its sincere appreciation for the continued support and guidance extended by the Ministry of Coal, Ministry of Power, Ministry of New and Renewable Energy, Ministry of Finance, Ministry of Environment & Forest, Ministry of Industry, Ministry of Labour, Ministry of Heavy Industries, NITI Aayog, DIPAM, DPE, Central Electricity Authority, Central & State Governments Departments, Central & State Electricity Regulatory Commissions, Andaman & Nicobar Islands Administration, State Electricity Boards, and beneficiaries of Tamil Nadu, Andhra Pradesh, Telangana, Karnataka, Kerala, Puducherry and Rajasthan and also the Joint Venture Partners, viz., Tamil Nadu Generation and Distribution Corporation Limited(TANGEDCO), Uttar Pradesh Rajya Vidyut Utpadan Nigam Limited(UPRVUNL), Mahanadi Coalfields Limited(MCL) and Hindalco.

The Board of Directors of your Company is pleased to acknowledge with gratitude the co-operation and continued support extended by the Governments of Tamil Nadu, Rajasthan, Uttar Pradesh, Jharkhand and Odisha, V.O.C.Port Trust, Tuticorin and the District Administrations of Cuddalore, Bikaner, Tuticorin, Sambalpur, Kanpur Nagar and Dumka. The support and co-operation extended by the Comptroller and Auditor General of India, Statutory Authorities, Statutory Auditors, Branch Auditor, Cost Auditor, Secretarial Auditor, Director General of Mines Safety, Directorate of Industrial Health & Safety, Boiler Inspectorates, Chief Inspector of Factories, the Director of Boilers, Central Pollution Control Board, State Pollution Control Board, Chief Controller of Explosives, Regional Labour Commissioner, Regional Provident Fund Commissioner, the Company’s Bankers, Financial Institutions and KfW of Germany need special mention and the Directors acknowledge the same.

Your Directors also wish to place on record their appreciation for the dedicated work put forth by the Employees at all levels. The positive role played by the recognised Trade Unions and Associations of the Engineers and Officers in maintaining cordial industrial relations deserves special mention.

For and on behalf of the Board of Directors

Place : Neyveli Rakesh Kumar

Date : 02.07.2019 Chairman-cum-Managing Director

---

Mar 31, 2018

DIRECTORS’ REPORT FOR THE YEAR 2017-18

To

The Members,

NLC India Limited

The Board of Directors have pleasure to present the 62^nd Directors’ Report on the performance of your Company together with the Audited Financial Statements for the year ended 31^st March, 2018.

It was an eventful year for your Company in the area of renewable energy. With the thrust given by the Government of India for developing renewable energy, your Company successfully has set its footprint in a major way with the commissioning of 236 MW during the year under review.

Operational Performance Mines

Your Company is presently operating four lignite Mines aggregating to a total mining capacity of 30.60 Million Tonne per Annum (MTPA). During the year, the total Overburden (OB) removal of 1851.35 Lakh Cubic Metre (LM³) and Lignite production of 251.53 Lakh Tonne (LT) has been achieved.

Power

Your Company is presently operating with installed capacity of 3731 Mega Watt (MW) of Power Plants comprising Thermal Power Plants of 3240 MW, Solar Power Plants of 440 MW(including200 MW commissioned during May 2018) and Wind Power Plants of 51 MW.

During the year, total Power Generation (Gross) of 20740.84 Million Units (MU) and Power Export of 17418.83 MU has been achieved in spite of heavy power surrender of 2567.28 MU witnessed from State DISCOMs.

The average Plant Load Factor (PLF) of the Thermal Power Plants of the Company as a whole during the year 2017-18 was 72.37% as against the National Average of 60.67% in spite of TPS-I (600 MW) crossing 56 years of operation.

As Members may be aware, based on the notification issued by Bureau of Energy Efficiency (BEE), TPS-I (600 MW) was exempted from Perform Achieve and Trade (PAT) cycle till 31.03.2017. Neyveli New Thermal Power Plant (NNTPP) with a capacity of 1000 MW is under implementation for replacing the above TPS-I and as per the present status of implementation, the Unit -I and Unit -II are likely to be commissioned by October, 2018 and December, 2018 respectively. Under the above circumstances, your Company is pursuing this issue with the Ministry of Coal (MoC) as well as the Ministry of Power (MoP) to permit continuing the operation of TPS -I till March 2019 by which time the Units of NNTPP will become fully operational on a sustainable basis. MoC has recommended for rescheduling of the retirement of above Plant and to permit the operation till August 2018. The MoP has communicated that the request of the Company for rescheduling of the retirement of TPS-I cannot be acceded to as there is no provision for further exemption beyond five years under the Essential Commodities (EC)Act, 1995. Your Company has once again taken up the matter with the MoC and MoP requesting for permission to operate the Units of TPS -I.

Productivity

The output per man-shift achieved during the year 2017-18 as compared with the previous year has improved in Power generation whereas owing to restricted lignite production the output per man-shift is marginally less. The details are given below.

Product	Unit	2017-18	2016-17
Lignite	Tonne	13.14	13.67
Power	KWhr	24755	24341

Financial Performance

During the year ended 31^st March, 2018, your Company has registered a revenue from operation ofRs, 8496.20 crore as against Rs, 8652.59 crore during the previous year ended 31^st March, 2017. The decline of 1.81% in the revenue from operation was mainly due to unprecedented surrender of power impacting the revenue generation of the Company adversely by around Rs, 783 crore and also on account of passing on of the benefit of around Rs,750 crore to the beneficiary DISCOMs (on account of non-applicability of Clean Environment Cess and Excise Duty consequent to rolling out of GST) which if included (as the cess & duties forms part of tariff) would have resulted in a total revenue from operation of Rs,9246.20 crore, resulting in a growth of6.86%.

The Profit Before Tax (PBT) and the Profit After Tax (PAT), for the year 2017-18 were Rs, 2689.70 crore and Rs, 1848.78 crore respectively as against the PBT and PAT of Rs, 3027.56 crore and Rs, 2368.81 crore respectively in 2016-17. The Earnings Before Interest, Tax and Depreciation & Amortization (EBITDA) of the Company for the year 2017-18 stood at Rs, 3,647.36 crore as compared to Rs, 3,186.22 crore in the previous year 2016-17 (considering regulatory deferral balances and excluding exceptional items), registering a growth of 14.47%. The Operating Profit as a percentage of revenue from operations and Return on Investment were 23.47% and 14.48% respectively.

On a consolidated basis, the total revenue from operations for the year 2017-18 was Rs, 11288.39 crore as against Rs, 11185.73 crore in 2016-17. The PBT & PAT for the year 2017-18 were Rs, 2869.70 crore and Rs,1956.78 crore respectively as against Rs, 3162.84 crore and Rs, 2456.66 crore respectively in 2016-17.

The details of profit earned for the financial year2017-18 and appropriation of the same are as follows:

Rs, in crore

Particulars	Standalone		Consolidated
	2017-18	2016-17	2017-18	2016-17
Profit Before Tax	2689.70	3027.56	2869.70	3162.84
Tax Provision	791.89	(214.81)	863.89	(167.38)
Net Movement in Regulatory Deferral Account	(49.03)	(873.56)	(49.03)	(873.56)
Profit /(Loss) for the Period (PAT)	1848.78	2368.81	1956.78	2456.66
Appropriation
Transfer (to) / from Interest Differential Fund Reserve	(12.28)	(11.12)	(12.28)	(11.12)
Transfer to Bond Redemption Reserve	(15.00)	(15.00)	(15.00)	(15.00)
Transfer to PRMA Reserve Fund	(10.87)	(6.84)	(10.87)	(6.84)
Transfer to Contingency Reserve	(10.00)	(10.00)	(10.00)	(10.00)
Transfer to Capital Redemption Reserve	--	(149.14)	--	(149.14)
Buy back Premium	--	(1327.36)	--	(1327.36)
Dividend	(646.58)	(1121.97)	(648.99)	(1121.97)
Tax on Dividend	(127.67)	(228.42)	(132.12)	(228.42)

Dividend

During the year 2017-18, the Board of Directors of your Company declared an Interim Dividend of 42.30% (Rs, 4.23 per equity share) and further, your Board has also recommended a final dividend of 2.70% (Rs, 0.27 per equity share) subject to the approval of shareholders. With the above Interim Dividend already paid, the total dividend for the year 2017-18 is 45% and the same works out to Rs, 687.86 crore which is more than 30% of PAT and 5% of the Net worth.

Disinvestment by GOI

During the year 2017-18, the Government of India (GOI) had disinvested 5.025% of shares held by the President of India in the Company through Offer for Sale (OFS) and further transferred 0.26% shares to “Bharat 22 ETF”. The present shareholding of the President of India in the Company is 84.04%.

MOU with the Ministry of Coal

Your Company had achieved “Very Good” rating for its performance during the year 2016-17 in terms of the Memorandum of Understanding (MoU) entered into with the Ministry of Coal as per DPE guidelines.

Corporate Plan

Your Company has an approved Corporate Plan under implementation and as per the same by the year 2025, it is aimed to achieve an overall increase in the mining and powercapacities as under:

- To increase the lignite mining capacity from the present 30.60 MTPAto 62.15 MTPA.

- To reach the coal mining capacity to 31.00 MTPA(including NUPPL, the Subsidiary).

- To increase the lignite-based power generation capacity from the present 3240 MWto6780 MW after phasing out the plant of TPS-I of600 MW.

- To increase the coal-based power generation capacity from the present 1000 MW to 6980 MW (including Subsidiaries).

- To increase the renewable based power generation capacity from the present 491 MWto4251 MW.

- Acquisition of power assets for a capacity of 3000 MW.

While pursuing its strategic targets, your Company is also likely to replace its old and inefficient thermal units with technologically advanced, efficient and environmentally compliant units in a phased manner.

Thus, the above Vision Document envisages for increasing the overall lignite production capacity to 62.15 MT, Coal production capacity to 31.00 MT and Power generation capacity to 21011 MW, by the year 2025 with expected capital commitment of Rs, 1.29 lakh crore. Besides the above, it is also planned to enter into the business of Commercial Coal Mining, Installation of ecart Charging Stations, blending of lignite with Coal for use in coal fired power plants and power trading business.

Projects under Construction / Implementation / Formulation

In pursuance of its Corporate Plan, your Company is executing the following projects which are in different stages of implementation /formulation.

Mining Projects

Description	Capacity (MTPA)	Expected COD
Expansion of Mine I & IA Lignite Mines at Neyveli	4.00	2020-21
Bithnok Lignite Mine in Rajasthan	2.25	2019-20*
Hadla Lignite Mine in Rajasthan	1.90
Mine-III (Lignite) at Neyveli	11.50	2020-21
Talabira II & III Coal Blocks in Odisha	20.00	2018-19

‘Presently put on hold.

Power Projects

Description	Capacity (MW)	Expected COD
Neyveli New Thermal at Neyveli	1000	2018-19
BithnokThermal in Rajasthan	250	2019-20*
BarsingsarThermal Extension in Rajasthan	250
TPS-II 2nd Expansion (Phase I) at Neyveli	1320	2021-22
Talabira Thermal (Phase I) in Odisha	2400	2022-23
SolarinTamil Nadu	909	2018-19
Solarin Andaman Islands	20	2019-20

‘Presently put on hold Subsidiaries / Joint Venture Projects

NLC Tamil Nadu Power Limited (NTPL) - Tuticorin Power Plant (1000 MW)

Members may be aware that NTPL, the Subsidiary Company is operating a coal based thermal power plant at Tuticorin in Tamil Nadu, consisting of two units of 500 MW capacity each. During the year 2017-18, the power generation was 5413 MU (excluding power surrender of 1539 MU) with a PLF of61.79% and export of power from this plant was 5026 MU.

During the year ended 31^st March, 2018, NTPL in its full year of operation registered a revenue ofRs, 2817.71 crore as compared to Rs, 2533.15 crore in the previous year 2016-17. The PBT & PAT for the year 2017-18 were Rs, 218.48 crore and Rs, 146.33 crore respectively as against Rs, 134.20 crore and Rs, 78.04 crore respectively in the previous year 2016-17. The Board of Directors of your Company is very happy to inform that NTPL has paid a maiden dividend of 1% for the year2017-18.

Neyveli Uttar Pradesh Power Limited (NUPPL) Ghatampur Thermal Power Project (1980 MW - 3x660 MW) linked to Pachwara South Coal Block (11.00 MtPa)

As stated in earlier Directors ‘Report, NUPPL, the Subsidiary Company is implementing the GhatampurThermal Power Project (GTPP) at Ghatampur Tehsil, Kanpur Nagar District in the State of Uttar Pradesh at a cost of '' 17,237.80 crore, with commissioning of all Units in the financial year2021-22.

Uttar Pradesh Power Corporation Limited (UPPCL) had signed a Power Purchase Agreement (PPA) for availing 75% of the Power from GTPP. Further to the request made to the Government of Uttar Pradesh, for availing the balance 25% of power from the above Project, UPPCL has agreed for the same and necessary amendment to the existing PPA is to be made shortly.

As a fuel linkage to the above power project, Government of India has allocated Pachwara South Coal Block in the State of Jharkhand, with a Geological Reserves of 304.27 MT of coal to NUPPL. The subsidiary is pursuing through the task force set up by the Government of Jharkhand for the issues concerning detailed exploration, obtaining forestry clearance etc., for the development of the block. Notification has been issued under Sec 4(1) of Coal Bearing Areas (Acquisition and Development)Act for carrying out the detailed exploration of the block.

This Block has been proposed to be developed through the appointment of Mine Developer & Operator (MDO). With the MDO concept and with the normative targeted output of 9.00 MTPA & Peak output of 11.00 MTPA for a Mine life of 30 years the initial capital outlay is expected to be around Rs, 1795 crore. NUPPL has issued the tender for the appointment of MDO and the same is under progress.

MNH Shakti Limited

Mahanadi Coalfields Limited, your Company and Hindalco jointly formed MNH Shakti Limited with equity participation of 70:15:15 to implement 20.0 MTPA Coal Mining project in Talabira, in the state of Odisha. The Talabira II & III Coal Blocks allocated for this purpose have been cancelled pursuant to judgment of Hon’ble Supreme Court of India and the Coal Mines (Special Provisions) Ordinance, 2014. The JV Company has proposed for winding up and necessary formalities are being worked out by them. The above said Coal Blocks have since been allotted to the Company.

Long-term Borrowing & Credit Rating

During the year under review, your Company has tied up a Rupee Term Loan (RTL) of'' 1135 crore with HDFC Bank to fund the capital expenditure of on-going 1000 MW Neyveli New Thermal Power Project (NNTPP) and for the 500 MW Solar Power Project in Tamilnadu, funding arrangements through RTL of Rs, 1406 crore have been made with AXIS Bank, Federal Bank and ICICI Bank. In order to meet the general funding requirements, your Company has also entered into an arrangement for availing RTL of Rs, 2000 crore from Mahanadi Coalfields Limited.

Highest credit ratings (AAA) have been accredited by top Credit Rating Agencies for all of its existing borrowing facilities obtained for various projects by your Company.

Commercial

Trading of Un-requisitioned Surplus (URS) Power

As stated earlier, the power surrender by the DISCOMs / Beneficiaries is on the rise and during the year 2017-18, 2567.28 MU was surrendered as against 1307.25 MU in the year 2016-17. It is a national phenomenon that all Central Generating Stations including your Company suffered due to lesser demand conditions, availability of cheaper power in the market etc. In order to improve the revenue, your Company resorted to sell this Un-requisitioned Surplus (URS) power in the market and during the year under review 958.40 MU of surrendered power were sold through power exchanges, thereby fetching revenue of Rs, 295.68 crore.

Power Dues / Realization

Your Company is following the rebate scheme and the payment priority clause as per the amended power purchase agreements with regard to realization of power dues from the beneficiaries. The outstanding power dues of the Company as on 31^st March, 2018 was Rs, 3644.76 crore against Rs, 4248.80 crore for the corresponding period of the year ended 31^st March, 2017. The dues beyond the 60 days limit as on 31^st March, 2018 was Rs, 2161.18 crore as against Rs, 631.21 crore for the corresponding period of the previous year ended 31^st March, 2017. Trade receivables (Net) as number of days of Revenue from Operations (Gross) was 145 days.

Land Acquisition and Rehabilitation & Re-settlement (R & R) Policy

Your Company, being sensitive to the involuntary relocation of displaced families for the sake of the projects, adequately takes care of the Project Affected Persons (PAPs) through appropriate R & R Policy measures thereby minimizing the trauma of displacement. Your Company follow the guidelines issued by the Government of India, from time to time, on R & R for the on-going projects. Your Company has also developed several Resettlement Centres (RCs) in the vicinity of its Projects and these RCs are provided with good infrastructure facilities and amenities and also well connected to the main roads. The eligible Project affected families have smoothly resettled in these RCs and have also been provided with rehabilitation measures in addition to legal compensation for the loss of assets, as directed by the appropriate Government from time to time and with the co-operation of the District Administration. Certain developmental works such as improvement of existing village roads, improvement of bunds of canals, de-silting of drains etc. were carried out for a value of about Rs, 50 lakh in the peripheral villages during 2017-18.

New Land Acquisition Act

GOI has enacted New Land Acquisition Act viz. “Right to Fair Compensation and Transparency in Land Acquisition Rehabilitation and Resettlement Act 2013” (RFCTLA) which is applicable from 01.01.2014. However, the Government of Tamilnadu (GoTN) had passed an amendment act “Right to Fair Compensation and Transparency in Land Acquisition Rehabilitation and Resettlement (Tamil Nadu Amendment) Act 2014, to exclude the Tamilnadu Acquisition of Land for Industrial purpose Act, 1997 (Tamilnadu Act No.10/99)” from other provisions of the Central Act, except the provisions relating to the determination of the compensation and rehabilitation & resettlement. The land acquisition is continued under Tamilnadu Acquisition of Land for Industrial purposes Act, 1997 (Tamilnadu Act No.10/99)”

Subsequently a G.O. dated 21.02.2018 has been issued by the Industries Department of GoTN for determination of land compensation as per the RFCTLARR Act 30/2013 by adopting the provisions of Land compensation as per Schedule 1 for the lands being acquired under the above State Government Act.

Research and Development (R & D)

Centre for Applied Research & Development (CARD) is the In-house R&D Centre of your Company. CARD has been granted National Accreditation Board for Testing and Calibration Laboratories (NABL) accreditation for chemical and mechanical testing (for certain parameters only). This accreditation is based on the international standard ISO/IEC 17025:2005 and meets the principles of ISO 9001 that are relevant to scope of testing services as well as technical competency of the laboratory.

The total R&D expenditure, incurred during the year 2017-18 was Rs, 2.25 crore. Your Company has also completed successfully Development of Pilot Micro Hydro Project with cooling tower water source for generation of additional Power (108000 kWhr/ annum) on 15.12.2017. In addition to the above projects, CARD has completed two projects viz., (1) “Conservation of Energy thro implementation of Programmable Logic Control (PLC) based dynamic loading system on conveyor system” and (2) “Delineation of buried sub-surface objects in opencast mines”.

Human Resource

The highly competent and motivated human resource available in your Company significantly contributes to the growth and mission of the Company. Human resource is the backbone of the Company in driving the operational and financial performance. The thrust on achieving higher growth and optimal utilization of manpower continued in the year under review also. The productivity of the employee has been demonstrated through its operational excellence in lignite production and power generation. The total manpower of the Company as on 31^st March, 2018 stood at 14,446. During the year2017-18, the major HR related activities carried out were as under:

- Online submission of ACR/APAR in respect of all executives within the prescribed timelines.

- Updating of Online quarterly vigilance clearance for all Senior Executives (ADGM & above) were completed within the timelines.

- Succession Plan was approved by Board of Directors on 27.09.2017.

- DPC was held for all executives within the timelines.

- Placement of HR Audit Report to Board completed on 12.08.2017.

During the year 2017-18, Presidential Directives were received with regard to pay revision for Executives with effect from 01.01.2017 and the same was implemented.

Training

Your Company strongly believes that the pursuit of excellence can be achieved only through continuous learning, competency building, reinforcing good work practices, etc. Learning and Development Centre (L&DC) continuously strives to gleam the in-house talents and espouse latest technological breed for the betterment of its business progression. The training programme included apprentice training, Computer and CSR related training, management education, worker education, skill up gradation, training on safety, health, quality & standards etc. Based on competency requirement and employee training needs, L&DC had also designed Annual Training Plan for 2017-18 to ensure competency building of employees to meet the organizational objectives.

The total number of 753 in-house programmes covering 39703 employee headcounts and 281 various outstation programmes (within India and abroad) covering 1018 employees were organized during the year. Total training man-days for executives was 38681 days averaging 9.52 man-days, for non-unionized supervisors 13848 days averaging 36.63 man-days and for non-executives are 25950 days averaging 4.06 man-days per employee.

In addition to the above, Apprentices were also given training as per Statutory Guidelines of the Regional Director of Apprenticeship Training, Chennai (RDAT) and the Board of Apprenticeship Training (BOAT) of Southern Region, Chennai. During the year under review 971 candidates were imparted Apprenticeship training in various trades.

Further, during the year 2017-18, 1773 students pursuing full time UG / Diploma in Engineering were permitted to undergo in-plant training besides permission to carry out the project work and vocational training.

Industry Institution Interaction Programme

Your Company has entered into a MOU with Annamalai University for conducting Executive MBA programme for the employees of the Company. L&DC is serving as the nodal center and facilitating the infrastructure and faculty services for conducting the above programme and 24 employees are pursuing the course.

Industrial Relations

Your Company continued its faith in participative management and has a regular system of holding bipartite structured meetings with the Recognized Unions (collective bargaining agents) / Associations for addressing the common issues of the employees. During the year under review, the Industrial relation was cordial.

Contract Labour Management System (CLMS)

As part of initiative of Ministry of Coal to improve transparency, your Company has implemented “Contract Labour Management System” portal which can also be accessed by the stakeholders including contractors and contract workmen to upload documents and view details of their attendance, wages & statutory payments made to them.

Reservation of Posts

Your Company follows the reservation policy for SCs, STs and OBCs as per the Presidential Directives and Government of India Guidelines. The group-wise Men-in-Position (MIP) as on 31^st March, 2018 stands as follows:

Group	Total Strength	Strength of SC/ST/OBC			% of SC/ST/OBC
		SC	ST	OBC	SC	ST	OBC
A	3792	784	284	421*	20.68	7.49	11.10*
B	280	55	24	69	19.64	8.57	24.64
C	9450	1789	93	2821	18.93	0.98	29.85
D	924	202	2	500	21.86	0.22	54.11
Total	14446	2830	403	3811	19.59	2.79	26.38

‘strength of OBCs on rolls after reservation for OBCs came into effect (i.e. 08-09-1993). However more than adequate strength of BCs were recruited priorto reservation for OBCs came to effect.

Scholarship Schemes and Tuition Fee Concession

Your Company implements Educational Assistance Schemes to the wards of employees and Contract Workmen for pursuing undergraduate degree / diploma / professional courses till course duration subject to a maximum of five years. Exclusive schemes have been devised for General, SC/ST, OBC categories and Contract Workmen besides scholarships earmarked exclusively for girl children. A separate Cash Award Scheme and Scholarship Scheme under CSR have been instituted by the Company for the benefit of girl children studying in the peripheral districts of Barsingsar Project, Rajasthan and further the tuition fees are reimbursed for students belonging to SC/ST/OBC category studying in Jawahar Science College, Neyveli every year.

Compliance under the Rights of Persons with Disabilities Act, 2016

Your Company ensures compliance of provisions under the Rights of Persons with Disabilities Act, 2016. Your Company has evolved a comprehensive policy for Persons with Disabilities (PwDs) as per the Guidelines issued by GoI for providing certain facilities/amenities to PwDs to meet their requirements and enable them to effectively discharge their duties.

Various social welfare measures towards the cause and up-liftmen of the Physically Challenged Persons are implemented through Neyveli Health Promotion and Social Welfare Society (NHPSWS), “SNEHA” Opportunity Services and School, both patronized by your Company.

- Neyveli Health Promotion and Social Welfare Society (NHPSWS): Running a school “SHRAVANEE” exclusively for the Hearing-Impaired children, retail outlets /provision shops “VAIGAI” and Rehabilitation Centre (RHC) for cane weaving, knitting of wire chairs, repair works of chair seats, office files & book binding works, by engaging differently abled persons.

- SNEHA Opportunity Services and School: SNEHA school is imparting education and Training to mentally challenged children (around 70 children: Boys-48 & Girls-22) and Restaurants (training units) namely Sneha Poushtika & SnehaAmruth engaging differently abled persons.

Implementation of Official Language Act, 1963

In line with the Policy of Government of India and the Provisions prescribed under the Official Language Act, 1963, your Company made all concerted efforts to implement the Policy and promote the Official Language. During the year 2017-18, Hindi workshops were conducted on quarterly basis on various topics besides spoken Hindi classes for 30 working days and Hindi Fortnight in the month of September, 2017, wherein competitions on various topics were held. In order to encourage the learning of Official language, employees are trained through various Hindi Correspondence / Regular Courses or personal contact programmes and rewarded with cash awards.

NLC Schools

Your Company is running 10 Schools essentially for the needs of nearby villages and the students are mostly of the wards of society and contract workmen. The present strength of students is 5710. Breakfast scheme for XI & XII Standard students was introduced for the first time this year.

Implementing PM’s Mission in the minds of younger generation

The student community of Neyveli was engaged in India’s largest cleanliness drive viz., Swachh Bharat Abhiyan & Swachhata Pakhwada on regular basis to make as a habit among children. Millions of student hours were spent in executing the PM’s Mission in the minds of future generation. Mini Marathon Rally was also conducted to create awareness among the public besides Skill India programme to create opportunities, space and scope for the development of talents of Indian Youth.

AYoga training camp for 15 days was conducted as part of celebrations of the International Yoga Day. Further a special Yoga training camp at Government Home for Children housing mostly Juvenile Students at Villupuram was carried out which was appreciated by the State Government Authorities.

Sports Development Centre (SDC)

Sports Development Centre (SDC) has been promoting sports activities among the Neyveli School students, youth and employees of the Company. Neyveli School students are regularly trained by SDC Coaches in various discipline and they were sponsored to participate in many tournaments across the country. Promotion of Sports among the students has culminated in the form of notable achievements at State, National and even at International level and won various medals/trophies.

Health Care

Your Company accords highest priority to all-inclusive health and medical care needs of employees and their family members.

Your Company’s hospital takes care of health needs of employees up to tertiary care level free of cost. Towards this objective, the Company has developed excellent secondary level hospital with 340 bed capacity to provide quality medical care in best-in-class environment. The service mix includes Emergency care, General Medicine, Chest Medicine, Diabetology, Renal Care, General Surgery, Orthopaedics, Obstetrics & Gynaecology, Ophthalmology, ENT, Paediatrics, Neonatology, Dermatology, Psychiatry and Dental services.

Population who are eligible for full access to medical services available in the Company’s Hospital, in FY 2017-18, was 89145 patients, which included regular employees and their dependents, CISF and their dependents, Contract workmen (Non-ESI covered) and their dependents.

The Hospital integrates with all National Health Programmes like Revised National Tuberculosis Programme, National Leprosy Eradication Programme, National Aids Control Programme, Universal Immunization Programme and Pulse Polio Programme to impact health outcomes of rural population in the surrounding villages and improve their health indicators.

The General Hospital at Neyveli had treated 59455 patients in the OPD and the Contract workmen & rural patients accounted for 1.50 lakh which is 25% of total population treated in the OPD during the FY 2017-18. During the FY 2017-18, 11569 patients were treated as in-patients and out of this contract workmen and their family members accounted for 15%.

Affordable Medicine and Reliable Implant for Treatment (AMRIT)

In order to enable the general public to have access to quality generic drugs, especially the costlier anti-cancer and cardiovascular drugs at affordable prices, AMRIT Pharmacy, the distribution arm of Bureau of Pharma Public Sector Undertakings of India under the Ministry of Chemicals and Fertilizers has set up its shop in Neyveli. Presence of AMRIT is expected to reduce out-of-pocket expenditure on all essential drugs required for lifelong management of chronic disorders by over60%.

Environmental Management & Sustainable Development Projects

Your Company practices and promotes the best environment management plan and is committed to environment friendly mining and power generation. The environment policy of your Company is in line with the Vision and Mission Statement and 3 Thermal Power Stations and 3 Mines at Neyveli have been certified with ISO 14001:2004 (Environment Management System), ISO 9001:2008 (Quality Management System) and OHSAS18001:2007 (Occupational Health and Safety Management System) certifications.

During the year 2017-18, 113.50 Ha of land has been reclaimed in all the mines of Neyveli. Orchards and herbal cultivation have been undertaken in the reclaimed area. Slope stabilization of the Mines Overburden dumps has been undertaken with a view to convert the mine spoil into vegetative making fit for habitation.

Your Company continues to plant trees in order to maintain the green belt and so far over 20 million trees have been planted in and around Neyveli Township and Production Units, which helps in maintaining clean environment, dust suppression, noise control, lowering the atmospheric temperature and maintaining ecological balance. Your Company during the year under review continued to utilize fly ash & bottom ash and the percentage increase in utilization over previous year was 3.89%.

Consequent to the amendment of Environment (Protection) Rules, 1986, the norms for water consumption and emissions from Power Plants [Particulate Matter(PM), Sulphurdioxide (SO₂), Oxides of Nitrogen (NOx) & Mercury (Hg)] have been made stringent for the existing as well as new Thermal Power Plants and in this regard your Company has already taken steps to install Flue Gas De-sulphurisation (FGD) system and to install necessary system to adhere to the revised specific water consumption norms as prescribed.

Safety

Your Company is taking pioneering efforts in the industrial safety area. Central Safety Wing of your Company conducts Risk Assessment and Safety Audit for Thermal Power Stations & Mines in regular periodicity by engaging accredited external agency. The recommendations submitted by the said agencies are being implemented with a focus to achieve Zero harm at Unit Level.

Safety related trainings like Basic, Refresher, on-the-job, Job related briefing etc., are being imparted to all sections of employees in well-designed training centers like Group Vocational Training Centre in Mines, Thermal Training Centre and Learning & Development Centre. By this extensive training of various kinds, there is considerable increase in the level of safety awareness among the employees and contract workers.

Risk Management

Your Company has developed a comprehensive Integrated Risk Management (IRM) framework headed by Functional Director and underthis framework, Risk Management is practiced in all the units and the possible risks associated with its business are identified & mitigation plans are evolved. The risk together with the mitigation plans and its implementations are reviewed by the Risk Management Committee and by the Board periodically.

Vigilance

The activities undertaken by Vigilance Department are Pro-active, Preventive, & Punitive and other measures to sensitize the employees of the Company. Complaints received in the department are dealt based on the “Complaint Handling Policy” and are processed using the Complaint Tracking System (CTS) from receipt up to disposal. As a preventive measure, surprise checks and regular checks, quality checks, follow-up checks and CTEtype examinations are conducted. Integrity Pact with the Suppliers/Contractors for all tenders with estimate of'' 1.0 crore and above are monitored and review meetings of Independent External Monitors (IEMs) with senior officials of the company are held once in a quarter and IEMs meet with vendors and contractors are held once in a year.

Vigilance department has been conducting “Ethical Awareness Programme” to impart ethical awareness and ethical character education programme to the school students of Neyveli Township. Around 2500 students have enrolled in the Ethical Forum. During the Vigilance Awareness Week -2017 (VAW-2017), competitions on Short Films on the theme “My Vision-Corruption Free India” conducted and necessary steps were taken to host the selected Short Films in social media like YouTube etc. The Vigilance Department gives a lot of thrust for using Information Technology and has taken various initiatives for developing Systems.

During the year 369 complaints were received by the Vigilance Department and out of that 367 complaints (including 8 nos. of complaints pertaining to previous year) have been disposed of. Out of the above disposed cases, 237 complaints were anonymous/pseudonymous, 92 complaints were sent for administrative action to the respective Units and investigations were done in respect of 38 nos. of complaints.

MoU with Transparency International

Your Company has signed a Memorandum of Understanding with Transparency International India, part of Asia Pacific forum comprising 20 Nations. Transparency International India is the Indian chapter of Transparency International, based at Berlin, Germany. During the year 2017-18, two review meetings of the Independent External Monitors were held.

Corporate Social Responsibility

- Your Company, as a socially responsible corporate citizen, continues to carry out developmental works in the surrounding villages, right from its inception, focusing on the socio-economic development of the operating regions for achieving inclusive growth.

- The thrust areas of the CSR and sustainability activities undertaken by your company during the year were on promotion of health, education, enhancement of vocational skills, gender equality, empowerment of women, environmental sustainability, rural sports, rural development, preservation of national heritage, art and culture besides maintaining of old age home and forwelfare of SC, ST & OBC.

- Your Company has adopted a Corporate Social Responsibility Policy covering the various sectors of sustainable socio-economic development. The Policy is available in the Company’s Website https://www.nlcindia.com/new_website/index.htm

- Your Company outlays funds for the CSR projects, programmes and activities selected for implementation under the CSR Policy.

- The CSR Committee of the Board is monitoring the implementation of the CSR Projects to ensure that your Company spends, in every financial year, at least 2% of the average net profits of the last three years.

- Time frames and milestones are fixed through Baseline Survey before commencement of the CSR Projects.

- Initiatives of State / Central Government Departments / Agencies are dovetailed / synergized with the CSR Activities of the Company.

During the year, above activities benefited 43 panchayats and 10 schools in total covering 1,11,688 people in different locations including remote areas.

Your Company incurred a total expenditure on CSR activities to the tune of'' 43.59 crore during the year (including the carry forward amount of previous year of'' 6.27 crore), which amounts to 2.00 % of preceding three years average net profit.

A detailed report on CSR activities compiled as required under Rule 8 of the Companies (Corporate Social Responsibility Policy) Rules, 2014 read with section 134 (3) and 135 (2) of the Companies Act, 2013 is placed at Annexure -1.

New Initiatives during the year 2017-18

- Successfully implemented GST and passed on the applicable benefits to the beneficiaries.

- Declared “Go-live” of SAP ERP of Financial and Control modules.

- Reverse auctions conducted for purchases and contracts beyond threshold value including for borrowings from Banks / Financial Institutions.

Forum of Women in Public Sector (WIPS)

WIPS NLCIL chapter was formed in the year 1990. The strength of women employees in the Company as on 31^st March 2018 stood at 1050 constituting 7.27% of Company’s human resource.

The programme / projects undertaken by WIPS during the year2017-18 as follows:

- Skill/Personality development

- Women Empowerment

- Motivational programme for girl children

- Social welfare/awareness programme

- Women Leaders - Insight to Commitment

- Family budget

- Risk factors and prevention of cervix and breast cancer

- Change of lifestyle for women

- Laws helpful for women happiness

- Ensure safety and hygiene of female child

Awards & Recognition

In recognition of its various activities, your Company has been conferred with the following awards during the year 2017-18:

- “Golden Peacock Environment Management Award” for the year 2017 in appreciation of its adoption of environment friendly technology presented in the World Congress on Environment Management.

- “Excellence in Cost Management” in the 14^th National Awards for Excellence in Cost Management-2016.

- Four National Awards and a Special Jury Award for Corporate video, bestowed by The Public Relations Society of India (PRSI) recognizing the Company’s achievements in public relations and performance.

- “NIPM National Award” for Best HR Practices 2017 by National Institute of Personnel Management (NIPM) for implementing modern HR strategies in the Company.

- “Golden Peacock Award for Sustainability 2017” presented in Golden Business Meet.

- Three awards instituted by PRSI for the (i) Best Corporate Film, (ii) Best PSU implementing RTI and (iii) Best CSR project for Women Development.

- “Industrial Excellence Award 2017” for its best performance and excellence in engineering operation under category “A” presented in the 32^nd Indian Engineering Congress 2017 organized by the Institution of Engineers (India), Tamilnadu State Centre.

- “National Energy Conservation Award - 2017” for Mine-I presented by Bureau of Energy Efficiency, Ministry of Power, Govt. of India.

- “Rajasthan Energy Conservation Award 2017” (RECA) for Barsingsar Thermal Power Station, presented by Bureau of Energy Efficiency Ministry of Power, Govt. of India.

- “Scope Corporate Communication Excellence Award 2017” for initiatives on inclusive growth in the Category of Brand Building.

- First prize in the Rajbhasha Field for its best performance in the field of Official Language Implementation instituted by the “Town Official Language Implementation Committee” (TOLIC) of Puducherry.

During the current year2018-19, the following awards/recognition have been received:

- “Brand of the Decade Award” instituted by Herald Global and BARC Asia in recognition of the Company’s exigent business model.

- The “APEX India CSR Excellence Award 2017" under Gold Category instituted by APEX India Foundation in recognition of NLCIL contribution in the area of CSR.

- “Hindustan Ratna PSU Award” instituted by Hindustan Times, in recognition of its “success and excellence among Public Sector Enterprises”.

- Fastest growing PSU by the Hindustan Times group based on a survey by Price Waterhouse Cooper.

Compliance under the Right to Information Act, 2005

Your Company ensures compliance under the Right to Information Act, 2005 . 19 Central Assistant Public Information

Officers representing different functional areas, one Nodal Officer, one Central Public Information Officer, one Appellate

Authority and one Transparency Officer have been nominated to attend to the queries and appeals received under the

RTI act in a time bound manner.

During the year 2017-18, under the above Act, 347 applications containing 1599 queries were received and 330 applications covering 1508 queries have been replied.

Compliance under Public Procurement Policy

The Ministry of Micro, Small and Medium Enterprises (MSMEs) has notified the Public Procurement Policy and in terms of the notification issued the target set for the financial year 2017-18 for procurement of such items which are within the scope of MSMEs was 20% and as against the same, the achievement was 33.65%.

Citizen’s Charter

Your Company maintains Citizen’s Charter, indicating details of clients, customers under difference heads, system of redressal of grievance etc., and the same is regularly updated.

Conservation of Energy, Technology absorption and Foreign Exchange Earnings and Outgo

The particulars required under Section 134(3) (m) of the Companies Act,2013 regarding conservation of energy, technology absorption and Foreign exchange earnings and outgo are furnished inAnnexure-2.

Management Discussion &Analysis Report and Report on Corporate Governance

The Management Discussion & Analysis Report is furnished in Annexure - 3. The report on Corporate Governance on the compliance of Corporate Governance conditions stipulated by SEBI (Listing Obligations and Disclosure Requirements) Regulation, 2015 and the DPE guidelines on corporate governance is furnished inAnnexure-4.

The Auditors Certificate on the Compliance of above Corporate Governance Conditions is furnished in Annexure - 5.

Statutory Disclosures under Companies Act, 2013 and SEBI (LODR) Regulations, 2015

Extract of Annual Return

The extract of Annual Return in terms of Section 134(3) read with Section 92(3) of the Companies Act, 2013 is placed inAnnexure-6.

Declaration by Independent Directors

The Independent Directors have given a declaration on meeting the criteria of independence as stipulated in Section 149(6) of the Companies Act, 2013.

Particulars of Employees

Particulars of Employees as required under Rule 5(2) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014 - Nil

Loans, Guarantees and Investments

As on 31- March 2018, the share capital held by your Company in NTPL, NUPPL & MNH Shakti was Rs, 1947.36 crore, Rs, 461.24 crore and Rs, 12.77 crore respectively. Your Company has been extending loans to its Subsidiaries, viz., NTPL and NUPPL. As on 31^st March, 2018, the loan amount outstanding from NTPL and NUPPL were Rs, 750 crore and Rs, 1000 crore respectively.

Your Company has not granted any other loan or guarantee or made any other investments (other than short term deposits with the bank in the ordinary course of business) during the year2017-18.

Deposits

The Company has not accepted any deposit from public.

Disclosures with respect to demat suspense account/ unclaimed suspense account in terms of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

There were 1100 equity shares pertaining to 6 shareholders lying unclaimed as on 01.04.2017 in the demat suspense account/ unclaimed suspense account. Out of the above 1100 equity shares, in terms of the provisions of Companies Act, 2013, 900 shares were transferred to Investors Education and Protection Fund (IEPF) during the year 2017-18. As on 31^st March, 2018, 200 shares (for which necessary claim has been received) are lying in the above account pending completion of formalities.

Material Changes affecting financial position occurring between the end date of financial year and the date of the Report - Nil.

Sexual harassment of women at work place

A separate Committee is in place for looking into the complaints relating to sexual harassment of women at workplace. During the year2017-18, no complaint was received in this regard.

Auditors

Statutory Audit

Chandran & Raman, Chartered Accountants, Chennai and P.K.K.G. Balasubramaniam & Associates, Chartered Accountants, Tiruvannamalai were appointed by the Comptroller and Auditor General of India (C&AG) as Joint Statutory Auditors for the year 2017-18 under Section 139 of the Companies Act, 2013. The Board of Directors of your Company has fixed Rs, 24 lakh plus applicable taxes as the Statutory Audit fees, to be shared equally by the Joint Statutory Auditors.

Branch Audit

Bhandawat& Company, Chartered Accountants, Jaipur has been appointed as the Branch Auditor for the year 2017-18 by C&AG for conducting the audit of Mine and Thermal Units at Barsingsar.

Secretarial Audit

A.K. Jain &Associates, Practicing Company Secretaries, Chennai was appointed as the Secretarial Auditor for the year 2017-18. The Secretarial Audit report for the year2017-18 and the reply to observations of the Secretarial Auditors are furnished inAnnexure-7.

Cost Audit

Bandy opadhyaya Bhaumik & Co, Cost Accountants, Kolkata was appointed as the Cost Auditor for theyear2017-18to conduct cost audit for Mines & Power Stations of the Company. The cost audit report for the year 2016-17 was filed with Ministry of Corporate Affairs on 7^th September, 2017 against the due date 11^th September, 2017.

C&AG’s Comments

C&AG’s Comments on the accounts for the year ended 31^st March, 2018 is furnished in Annexure - 8.

Directors Responsibility Statement as per Section 134 (3) (c) of the Companies Act, 2013

The Board of Directors declares that:

(a) in the preparation of the annual accounts, the applicable accounting standards had been followed along with proper explanation relating to material departures;

(b) the Directors had selected such accounting policies and applied them consistently and made judgments and estimates that are reasonable and prudent so as to give a true and fair view of the state of affairs of the Company at the end of the financial year and of the profit and loss of the Company for that period;

(c) the Directors had taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions of the Companies Act, 2013 for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities;

(d) the Directors had prepared the annual accounts on a going concern basis;

(e) the Directors had laid down internal financial controls to be followed by the Company and that such internal financial controls are adequate and were operating effectively; and

(f) the Directors had devised proper systems to ensure compliance with the provisions of all applicable laws and that such systems were adequate and operating effectively.

Board of Directors

Shri. Suresh Kumar, Additional Secretary, Ministry of Coal, Shri Indrajit Pal, Independent Director and Shri Nadella Naga Maheswar Rao, Director (Planning & Projects) were inducted into the Board of Directors w.e.f. 09.06.2017, 06.09.2017 and 29.06.2018 respectively. Shri. R.P. Gupta, relinquished his position as a Director w.e.f. 09.06.2017. Shri. P. Selvakumar, relinquished as a Director Planning & Projects on 31.05.2018 on superannuation. The Board places on record its appreciation for the valuable contribution made by them during their tenure as a Director on the Board of the Company.

Shri. V. Thangapandian and Shri. R. Vikraman, Directors retire by rotation at the forthcoming Annual General Meeting and being eligible offer themselves for re-election.

Acknowledgement

The Board of Directors of your Company places on record its sincere appreciation for the continued support and guidance extended by the Ministry of Coal, Ministry of Power, Ministry of New and Renewable Energy, Ministry of Finance, Ministry of Environment, Forest & Climate Change, Ministry of Industry, Ministry of Labour, Ministry of Heavy Industries and Public Enterprises, NITI Aayog, DIPAM, Central Electricity Authority, Central Electricity Regulatory Commission, State Electricity Boards and beneficiaries of Tamil Nadu, Andhra Pradesh, Telangana, Karnataka, Kerala, Puducherry and Rajasthan and also the Joint Venture Partners, viz., Tamil Nadu Generation and Distribution Corporation Limited (TANGEDCO), Uttar Pradesh Rajya Vidyut Utpadan Nigam Limited (UPRVUNL), Mahanadi Coalfields Limited (MCL) and Hindalco.

The Board of Directors of your Company is pleased to acknowledge with gratitude the cooperation and continued support extended by the Governments of Tamil Nadu, Rajasthan, Uttar Pradesh, Jharkhand and Odisha, V.O.C. Port Trust, Tuticorin and the District Administrations ofCuddalore, Bikaner, Tuticorin, Sambalpur, Kanpur Nagar and Dumka. The support and co-operation extended by the Comptroller and Auditor General of India, Statutory Auditors, Branch Auditor, Cost Auditor, Secretarial Auditor, Director General of Mines Safety, the Factory & Boiler Inspectorates, Chief Inspector of Factories, the Director of Boilers, Central Pollution Control Board, State Pollution Control Board, Chief Controller of Explosives, Regional Labour Commissioner, Regional Provident Fund Commissioner, the Company’s Bankers and KfW of Germany need special mention and the Directors acknowledge the same.

Your Directors also wish to place on record their appreciation for the dedicated work put forth by the Employees at all levels. The positive role played by the recognized Trade Unions and Associations of the Engineers and Officers in maintaining cordial industrial relations deserves special mention.

For and on behalf of the Board of Directors

^{Place : Neyveli} Dr. Sarat Kumar Acharya

Date : 29.06.2018 Chairman and Managing Director

---

Mar 31, 2017

The Board of Directors have pleasure to present the Directors’ Report together with the Audited Accounts of the Company for the year ended 31^st March 2017.

Highlights

The following are the achievements during the year 2016-17

Physical

- Total overburden removal from all Mines put together at 2058.14 LM³ was the highest for any year since inception.

- Total Lignite production from all Mines put together at 276.17 LT was the highest for any year since inception.

- Total Power Generation from all Thermal Power Stations put together at 21033.10 MU was the highest for any year since inception.

- Total Export of Power from all Thermal Power Stations put together at 17719.46 MU was the highest for any year since inception.

Financial

- Total sales turnover of Rs.8672.84 crore was the highest for any year since inception.

- Profit Before Tax (PBT) and the Profit After Tax (PAT) for the year 2016-17 of Rs.3027.56 crore and Rs.2368.81 crore respectively were the highest for any year since inception.

- Dividend paid for the year 2016-17 @ 73.40% (Rs.7.34 per equity share) was the highest for any year since inception.

Segment-wise Performance

Mines

Your Company is presently operating four lignite mines viz., three lignite mines at Neyveli, in the State of Tamil Nadu and one lignite mine at Barsingsar in the State of Rajasthan with an aggregate capacity of 30.60 MTPA. The detailed Mine-wise performance during the year 2016-17 as compared to the previous year were as under:

Mine	Overburden (OB) Removal (LM3)		Lignite Production (LT)
	2016-17	2015-16	2016-17	2015-16
Mine-I including Expansion (10.5 MTPA)	647.29	660.75	94.01	91.01
Mine-IA (3.0 MTPA)	421.15	246.46	27.80	28.17
Mine-II including Expansion (15.0 MTPA)	919.47	725.53	140.23	123.09
Barsingsar Mine (2.1 MTPA)	70.23	70.02	14.13	12.24
Total (30.6 MTPA)	2058.14	1702.76	276.17	254.51

The lower Overburden (OB) removal in Mine-I was attributable to re-arrangement of bench configuration of Mine-I and Mine-IA. Mine-II has achieved the highest ever OB removal which was attributable to additional contribution from outsourcing apart from departmental overburden removal.

Power

Your Company is presently operating Four Thermal Power Stations at Neyveli, Tamil Nadu and one Thermal Power Station at Barsingsar, Rajasthan. The total power generation during the financial year 2016-17, was the highest ever since inception registering a growth of 9.65% over the previous year 2015-16. During the year under review, both the units of TPS-II Expansion were under stabilisation after provisional take over from BHEL. As reported in the Directors’ Report of the previous years, your Company has set its footprint in generation of renewable energy through its Wind Power Plant at Kazhuneerkulam, Tirunelveli District in the State of Tamil Nadu and Solar Power Plant at Neyveli. As on the date, all the 34 Wind Turbine Generators (WTGs) of 1.5 MW each have been commissioned and the overall Installed Power Generating Capacity of the Company has increased to 3301 MW.

The detailed performance of power plants during the year 2016-17 as compared to the previous year were as under:

Power Plant	Station PLF(%)	Power Generation (MU)		Power Export (MU)
	2016-17	2016-17	2015-16	2016-17	2015-16
TPS-I (600 MW)	70.33	3696.70	3160.98	2968.21	2471.68
TPS-I Expansion (420 MW)	90.71	3337.33	3268.16	3055.32	3000.06
TPS-II (1470 MW)	85.83	11052.17	10583.15	9189.79	8836.81
TPS-II Expansion (500 MW)	31.40	1375.25	851.46	1130.16	660.78
Barsingsar TPS (250 MW)	66.83	1463.49	1285.57	1271.24	1102.68
Solar Power (10 MW)	-	16.88	8.87	16.88	8.87
Wind Power (45 MW)	-	91.28	24.02	87.86	23.14
Total	73.731	21033.10	19182.21	17719.46	16104.02

* Plant Load Factor excluding Solar and Wind Power

The average Plant Load Factor (PLF) of the Thermal Power Plants of the Company as a whole during the year 2016-17 was 73.73% against the National Average of 59.88%. Even though TPS-I crossed 55 years of operation, it has achieved PLF of 70.33%. The lower PLF of TPS-II Expansion when compared to the other stations of your Company was due to longer outage duration of the Units for carrying out certain refractory modification, lignite bunker and transfer conveyor modification works etc. Moreover, the Discoms during the year 2016-17 had surrendered 1307.25 MU and but for this the overall Power Generation could have been still higher. The issues relating to the performance of TPS-II Expn., and Barsingsar TPS are being addressed on a continuous basis and in fact the technical problems faced in the CFBC boilers in the Units of these plants have been resolved to a considerable extent. The Barsingsar Thermal Station had recorded the highest ever generation since inception and it is expected that both the Plants will be performing well.

With regard to Thermal Power Station-I (600 MW), while granting exemption from the purview of Perform, Achieve and Trade (PAT) Scheme, decommissioning or retirement of the Units of TPS I by 31^st March, 2017 was stipulated as one of the conditions. As Members may be aware Neyveli New Thermal Power Project (NNTPP) with a capacity of 1000 MW is under implementation for replacing the above TPS-I. Considering the present status of implementation and the requirement of TANGEDCO for continuing the operation of TPS-I till the commissioning of NNTPP and further the closure of operations of TPS-I may also adversely affect the operations of captive Mines, the Company is pursuing with the Ministry of Coal (MoC) as well as the Ministry of Power (MoP) to permit continuing the operation of TPS-I till March 2019 by which time the Units of NNTPP will become fully operational on a sustained basis. MoC has recommended for rescheduling of the retirement of above Plant and to permit the operation till August 2018 and the issue is being pursued with MoP requesting for permission to operate the Units of TPS-I till March 2019 or atleast by July/August 2018 for the reasons stated above.

Productivity

The output per man shift achieved during the year 2016-17 as compared with the previous year is given below:

Product	Unit	2016-17	2015-16
Lignite	Tonne	13.67	13.08
Power	kWh	24341	22889

Financial Performance

Members may be aware that the Indian Accounting Standards (IND AS) was made mandatory for reporting of financials of the Company effective from the year 2016-17 and the audited financials for the said year has been prepared in compliance with the IND AS. As per the requirements, the financials of the previous year 2015-16 have been restated from the date of transition to IND AS i.e. 01.04.2015 .

During the year ended 31^st March 2017, the Company had registered a total sales of Rs.8672.84 crore as against Rs.6652.05 crore (restated) during the year 2015-16, registering a growth of 30.38 %.

The Profit Before Tax (PBT) and the Profit After Tax (PAT) for the year 2016-17 were Rs.3027.56 crore and Rs.2368.81 crore as against the restated PBT and PAT of Rs.1856.07 crore and Rs.228.00 crore, respectively.

The details of Profit earned for the financial year 2016-17 and appropriation of the same are as follows:

Rs.in crore

Particulars	2016-17	2015-16
Profit Before Tax	3027.56	1856.07
Tax Provision	(214.81)	721.73
Net Movement in Regulatory Deferral Account	(873.56)	(906.34)
Profit(Loss) for the period (PAT)	2368.81	228.00
Appropriation:
Transfer (to) / from Interest Differential Fund Reserve	(11.12)	(15.00)
Transfer to Bond Redemption Reserve	(15.00)	(15.00)
Transfer to PRMA Reserve Fund	(6.84)	(12.18)
Transfer to Contingency Reserve	(10.00)	(10.00)
Transfer to General Reserve	-	(120.00)
Transfer to Capital Redemption Reserve	(149.14)	-
Buy-back Premium	(1327.36)	-
Dividend (Interim & Final)	(1121.97)	(503.32)
Tax on Dividend	(228.42)	(101.50)

Dividend

During the year 2016-17, the Board of Directors of your Company had paid an Interim Dividend of 73.40% (Rs.7.34 per equity share) and the same has been treated as the Dividend for the year 2016-17. The Dividend of 73.40% (previous year 30%) was the highest ever dividend paid by the Company since inception and the total dividend outgo for the year 2016-17 including distribution tax works out to Rs.1350.39 crore (previous year Rs.604.82 crore), which is 57.01% of PAT for the year 2016-17.

Buyback of Equity shares

The Guidelines dated 27^th May, 2016 of the Department of Investment & Public Asset Management (DIPAM) of Ministry of Finance, Government of India, had mandated the Central Public Sector Enterprises (CPSEs) to consider for restructuring of capital through buyback of shares.

In pursuance of the above guidelines and in terms of the provisions of the Companies Act, 2013 and SEBI Buyback Regulations, the Board of Directors of your Company had accorded approval for buyback of equity shares not exceeding 10% of the paid-up equity share capital and free reserves of the Company as on 31^st March, 2016, on proportionate basis from the eligible shareholders by way of tender offer process through the Stock Exchange mechanism.

In accordance with the above approval 14,91,41,173 equity shares of the Company were bought back during March, 2017 at a price of Rs.99 per share and post buy-back, the paid-up equity share capital of the Company has been reduced to Rs.1528.57 crore from Rs.1677.71 crore and the equity shareholding of the President of India is now 89.32% from the earlier holding of 90%.

MoU with the Ministry of Coal

Your Company had achieved “Very Good” rating for its performance during the year 2015-16 in terms of the Memorandum of Understanding (MoU) entered into with the Ministry of Coal as per DPE guidelines.

The details of achievements of MoU parameters for the year 2016-17 based on the audited results are as under:

Capacity Utilisation

Your Company has achieved a power generation of 21033.10 MU. Power surrender by the beneficiaries was 1307.25 MU and if the surrendered power is taken into account the power generation (gross) for the year 2016-17 would be 22340.35 MU.

Efficiency Parameters (Physical Operation)

Production Efficiency

The heat rate in Thermal Power Stations (TPS-I, TPS-I Expn., TPS-II, TPS-II Expn., and BTPS) of the Company during 2016-17 was reduced by 0.64 % as compared to the previous year 2015-16 achieving Excellent Level.

The Specific Power Consumption in Lignite Mines of the Company during the year 2016-17 was reduced by 6.68% as compared to the previous year 2015-16 achieving Excellent Level.

Output per Man Shift (OMS - Mine-I, Mine-IA & Mine-II) for Lignite for the year 2016-17 had increased to 13.67 Tonnes/Man shift (Excellent Level) as compared to 13.08 Tonnes/Man shift of the previous year 2015-16 registering an increase by 4.51%.

Technology Up-gradation

Implementation of Distributed Control System (DCS) was successfully completed on 09.07.2016 in Unit-6 of Stage-II of TPS-II (Excellent Level). Belt vulcanising process was upgraded on 27.12.2016 to improve the productivity and to reduce the downtime by 20%.

Research & Development

Conservation of energy through implementation of Programmable Logic Control (PLC) based Dynamic Loading System in one conveyor system of Mine-II was carried out on experimental basis, which has registered an energy conservation of 10,250 K.whr/month.

Leveraging Net Worth Capex

A target of Rs.5040 crore towards Capex was set for the year 2016-17 to increase the Capacity against the target of Rs.3788.13 crore for the year 2015-16. The Capex target for the year 2016-17 included Rs.1500 crore towards acquisition of 1200 MW Raghunathpur Plant of DVC, for which approval of Govt. of India is awaited.

Excluding the Capex of DVC, the Company had achieved Rs.3569.07 crore as against the target of Rs.3540 crore, The segment wise break up is as under:

Rs.in crore

Segment	2016-17	2015-16
Coal /Lignite Sector	339.82	217.19
Power Sector	3229.25	1168.50
Total	3569.07	1385.69

Monitoring Parameters

Percentage of value of Capex Contracts/Projects running/completed during the year without time/cost overrun to total value of Capex Contracts/running/completed during the year was 163.65% at Excellent Level.

Turnover from Operations

The Revenue from operations (Net of Excise duty) for the year 2016-17 was Rs.8672.84 crore (Excellent Level).

Operating Profit/Surplus

Operating Profit as a percentage of revenue from operations, achieved 29.21% (Excellent Level).

Marketing Efficiency Ratios

Total Ash Utilisation - (Bottom Ash & Fly Ash) for the year 2016-17 was 91.56 % (Excellent Level).

Trade receivables as percentage of revenue from operations, achieved 34.79 % (Excellent Level)

Return on Investment

Dividend/PAT %, achieved 47.36 % for the year 2016-17 (Excellent Level).

PAT/Net worth %, achieved 19.66 % for the year 2016-17 (Excellent Level).

Dividend/ Net worth %, achieved 9.31 % for the year 2016-17 (Excellent Level).

Sector/CPSE Specific Targets

Machine Availability in Thermal Power Stations (TPS-I, TPS-I Expn., TPS-II, TPS-II Expn., and BTPS) achieved 89.87 % (Excellent Level).

Projects Under Construction/Implementation Neyveli New Thermal Power Project (2x500 MW)

Members may be aware that your Company is implementing a lignite based 1000 MW thermal power project at Neyveli as a replacement to 600 MW TPS-I the oldest lignite fired Thermal Power Station in the Country, at a capital cost of Rs.5907.11 crore with a revised schedule of commissioning of Unit-I in October, 2017 and Unit-II in April, 2018.

The progress of work was slow in the initial stages due to the delay in receipt of Boiler Main Steel Structures, the design of which was unique to this Project involving complicated manufacturing process and also due to delay in starting of engineering & manufacturing activities in the Balance of Plant (BOP) Package. Due to continuous monitoring and sustained & proactive steps taken to improve the pace of works at various levels, the project achieved good progress during the year 2016-17. The overall physical progress improved from 22.39% at the end of 31.03.2016 to 58.65% at the end of 31.03.2017, recording a growth of 36.26%. More than 1,00,000 Cu. M. of RCC has been done during the year. The capital expenditure incurred during the year under review was Rs.2362.59 crore, which was the highest ever and is also indicative of the progress of works.

Detailed engineering in respect of Steam Generator (SG) and Turbine Generator (TG) Packages has almost been completed and more than 80% in respect of the Balance of Plant (BOP) Package has also been completed. Major civil works have been completed. Casting of TG deck was completed in both the Units and Power House has been completed while the erection of various equipment and the piping works are in progress.

In the erection front, mechanical works are in full swing. Erection of Boiler MSS was completed in both the Units while the erection of pressure parts of Boiler, Bunker Bay and other auxiliary structures, platforms etc., are in various stages. Erection works in ESP are nearing completion. Lifting of Generator stator in both the Units and threading in of rotor have also been completed.

In the BOP area, erection works in Lignite Handling system, Ash handling system, CW System, DM plant etc., are in progress. Raw Water System has been commissioned and 230 KV GIS switchyard is charged.

At the present pace of works and with the continued monitoring to increase the momentum further, it is hoped that Unit-I will be commissioned in March 2018 and Unit-II in April 2018. The cumulative expenditure incurred in the project upto 31^st March 2017 is Rs.4256.43 crore.

Bithnok Thermal Power Project (250 MW) with linked Bithnok Mine (2.25 MTPA)

Your Company is in the process of setting up the Bithnok Thermal Power Project (1x250 MW) linked to Bithnok Lignite Mine (2.25 MTPA), in the State of Rajasthan. The Board of Directors of your Company has sanctioned the above Thermal Power Project at a cost of Rs.2196.30 crore with the commissioning of the Unit in August, 2020. During the year 2016-17, supply and installation contract for the Thermal Power Project was awarded to Reliance Infrastructure Limited (RIL), Mumbai for setting up the project on Engineering Procurement Construction (EPC) mode in November, 2016, Geo-technical investigation works for this project has been completed, preliminary/enabling works are in progress. Detailed engineering activities and submission/approval of drawings & Sub Vendors are in progress. The cumulative expenditure incurred upto 31^st March 2017 is Rs.163.26 crore.

Barsingsar Thermal Power Station Extension (250 MW) with linked Hadla Mine (1.90 MTPA)

The Board of Directors of your Company has sanctioned the Barsingsar Thermal Power Station Extension linked to Hadla lignite Mine, at a cost of Rs.2112.59 crore with the commissioning of the Thermal Unit in August, 2020. Since the Unit size and the technology adopted was the same, a common tender was floated for the Bithnok Thermal Project and the Barsingsar Thermal Power Station Extension Project and Reliance Infrastructure Limited (RIL), Mumbai was awarded for setting-up of the Thermal Plant on EPC mode in Nov, 2016. Geo-technical investigation works have been completed for this project and preliminary/enabling works are in progress. Detailed engineering activities and submission/approval of drawings & Sub Vendors are in progress. The fuel requirement is proposed to be met from Hadla Mine of 1.90 MTPA capacity and 0.40 MTPA from Barsingsar Mine Extension. The cumulative expenditure incurred up to 31^st March 2017 is Rs.149.97 crore.

Both Bithnok and Barsingsar Extn. Power Projects have been put on hold based on the communication received from Govt. of Rajasthan and Rajasthan Discoms that they are not in a position to buy power from these projects.

The Committee of Secretaries (CoS) under the Chairmanship of Cabinet Secretary, Government of India, at the meeting held on 15th June, 2017 had reviewed the issues and it was felt by the Committee that an attempt should be made to reduce the tariff of the projects and a final view could be taken later. It was suggested to constitute a Committee comprising of representatives of main stakeholders along with the senior officials of Ministry of Coal, Ministry of Power and CEA to examine the measures required to bring down the tariff of these projects. The Committee thus constituted held a meeting on 25.07.2017 and its deliberations have been sent to the Cabinet Secretariat.

Bithnok Mine Project (2.25 MTPA)

As stated earlier the Bithnok Mine of 2.25 MTPA is being developed with the approval of Board of Directors of your Company at a cost of Rs.513.64 crore to supply lignite to the Bithnok Thermal Power Station of 250 MW capacity under implementation. The Mining Plan and the Mine Closure Plan have been approved by the Ministry of Coal (MoC). The Ministry of Environment & Forest (MoE&F) has accorded Environment Clearance and the action has been taken to obtain the Mining Lease. The Government of Rajasthan (GoR) has accorded approval for the allotment of 1290.647 ha of Government land including 52.245 ha of Compensatory Afforestation land. Compliance report for obtaining Stage-II Forestry clearance submitted. The cumulative expenditure incurred up to 31^st March 2017 is Rs.164.88 crore.

Hadla Mine Project (1.90 MTPA)

The Board of Directors of your Company has sanctioned the lignite mine project in Hadla (1.90 MTPA), Rajasthan at a cost of Rs.522.45 crore to supply lignite to the Barsingsar Thermal Power Station Extension Project of 250 MW under implementation. Mining Plan including Mine Closure plan have been approved by the Ministry of Coal. MoE&F has accorded Environmental Clearance. Mining Lease would be obtained after completion of land acquisition, for which necessary application has been submitted to the concerned Revenue Department of Govt. of Rajasthan. The cumulative expenditure incurred up to31^st March 2017 is Rs.4.49 crore.

Wind Power Project (51 MW)

Members may be aware that the Company as part of green energy development is implementing a 51 MW Wind Power Project at Kazhuneerkulam, Tirunelveli District, Tamil Nadu at a cost of Rs.347.14 crore. Leitwind Shriram Manufacturing Limited, Chennai, the implementing agency, has commissioned 30 Wind Turbine Generators (WTGs) aggregating to 45 MW till 31^st March, 2017 against the total capacity of 51 MW. The balance WTGs have also been commissioned in 2017-18 and all the 34 WTGs are now in operation. The cumulative expenditure incurred up to 31^st March 2017 is Rs.330.03 crore.

Neyveli Solar Power Project (130 MW)

Members may be aware, your Company had earlier set up a 10 MW Solar Power Project in Neyveli which is under operation. Presently Solar Power Project of 130 MW is under implementation at Neyveli and Jakson Engineers Limited (65 MW) and BHEL (65 MW) have been awarded contacts for setting up this project at a cost of Rs.687.28 crore. Supply of solar modules and major equipment are nearing completion and installation works are in advanced stage of completion. The project is expected to be commissioned in 2017-18. The cumulative expenditure incurred up to 31^st March 2017 is Rs.425.37 crore

Tamil Nadu 500 MW Solar Power Project

In order to enter into renewable energy in a major way, the Board of Directors of your Company had accorded approval to set up a 500 MW Solar Power Project in various parts in the State of Tamil Nadu under the Solar Developer & Operator (SDO) Mode. This mode is similar to that of Mine Developer & Operator mode adopted for developing and production in Mines. As per this mode the scope of the SDO Contractor is to procure and transfer the land to the Company, install the equipment, Operation and Maintenance (O&M) of the Solar Plant for a period of 15 years. Power Purchase Agreement was signed with TANGEDCO and the Project is envisaged for commissioning in the year of 2017-18.

During the year under review, your Company had placed orders for installation of the above 500 MW (AC) Grid interactive Solar PV projects to the following agencies with a timeline to commission in 13 months from the date of issue of order, at a total project cost of Rs.2170 crore (including O&M cost):

1. Gamesa Renewable Pvt. Ltd., Chennai - 100 MW Project

2. Harsha Abakus Solar Pvt. Ltd., Ahmedabad - 100 MW Project

3. Jakson Engineers Ltd., Noida - 100 MW Project

4. PES Engineers Pvt. Ltd., Hyderabad - 100 MW Project

5. Marine Electricals (I) Pvt. Ltd., Mumbai - 50 MW Project

6. Refex Energy Ltd., Chennai - 50 MW Project

Odisha 250 MW Solar Power Project

Based on the Letter of Intent furnished by GRIDCO, Government of Odisha for procurement of 250 MW Solar power under VGF Scheme for a period of 25 years, a tender was floated for setting up the above Project under SDO mode, similar to the one adopted in Tamil Nadu. Orders will be placed on the successful bidder(s) on signing of Power Purchase Agreement with the Govt. of Odisha.

Talabira II and III Coal Block (20.0 MTPA)

Members may be a aware that the Government of India has allotted Talabira-II & III Coal Block of capacity 20 MTPA in the State of Odisha, exclusively to your Company. The coal produced from the Talabira-II & III Mines is to meet the fuel requirement of the proposed Odisha TPS and the JV project NTPL. Application has been made to the State Govt. of Odisha to obtain the Stage-1 Forest Clearance (FC) and on receipt of the same MoEF&CC would be approached for issue of Environmental Clearance. 383.18 acres of Govt. Non Forest land in Jharsuguda and 91.270 acres of land in village Khinda have been handed over to the Company. The Board of Directors of your Company has accorded in-principle approval for the R&R Plan. The work order has been issued to RITES for the preparation of Feasibility Study Report for the Railway Siding for dispatching coal by Rail.

It is proposed to develop and operate the above Mine through the appointment of Mine Developer & Operator (MDO). Finalisation of tender for the above appointment is in advanced stage.

Expansion of Mine-I 10.50 MTPA (Area Expansion) & Expansion of Mine-IA (from 3.0 MTPA to 7.0 MTPA)

Your Company is implementing area expansion of 10.50 MTPA in Mine-I and Expansion of Mine-IA from 3.0 MTPA to 7.0 MTPA by adding contiguous lignite blocks to meet the fuel requirement of the Neyveli New Thermal Power Plant, TPS-I Expansion and TAQA.

Ministry of Coal has accorded approval for the mining plan for the above project and the Ministry of Environment & Forest & Climate Change (MOE&F&CC) has accorded Environmental Clearance. Mine development activities in Mine-IA has commenced and the cumulative expenditure was incurred up to 31^st March 2017 is Rs.209.55 crore.

Joint Ventures

NLC Tamil Nadu Power Limited (NTPL) - Tuticorin Power Plant (1000 MW)

Your Board of Directors are very happy to inform that the coal based thermal power project at Tuticorin, Tamil Nadu, consisting of two units of 500 MW capacity is getting stabilised and operating to its full capacity. During the year 2016-17, power generation (excluding surrender of 891 MU) and exported from this plant were 6252.74 MU and 5806.85 MU registering the growth of 71.05% and 75.26% respectively over 2015-16. The plant achieved a Plant Load Factor (PLF) of 71.38%. The cumulative project expenditure incurred up to 31^st March 2017 is Rs.6625.70 crore.

During the year ended 31^st March, 2017, NTPL in its first full year of operation registered the sales of Rs.2546.93 crore. The Profit Before Tax and Profit After Tax for the year 2016-17 were Rs.135.28 crore and Rs.87.85 crore respectively.

Neyveli Uttar Pradesh Power Limited (NUPPL) - Ghatampur Thermal Power Project (1980 MW - 3x660 MW) linked to Pachwara South Coal Block

During the year 2016-17, the Government of India sanctioned the Ghatampur Thermal Power Station Project being set up at Ghatampur Tehsil, Kanpur Nagar District in the State of Uttar Pradesh at a cost of Rs.17,237.80 crore with commissioning of Unit-I in November, 2020, followed by other two units at an interval of 6 months each. The project is being executed through the Subsidiary Company, Neyveli Uttar Pradesh Power Limited (NUPPL) a joint venture with Uttar Pradesh Rajya Vidyut Utpadan Nigam Limited (UPRVUNL). All three main packages (GA1-Steam Generator, GA2-Turbine Generator & GA3-Balance of Plant) have been awarded during the year 2016-17 and the project construction activities have commenced. As a fuel linkage to the above power project, Government of India has allocated Pachwara South Coal Block in the State of Jharkhand. The cumulative expenditure incurred up to 31^st March 2017 is Rs.957.32 crore.

Uttar Pradesh Power Corporation Limited (UPPCL) had signed a Power Purchase Agreement (PPA) for availing 75% of the Power from Ghatampur Thermal Power Project (GTPP) and had communicated their unwillingness to absorb more than 75% of power from GTPP. NUPPL has requested to avail the balance 25% power from the Project as per the assurance given by them to PIB at the meeting held on 08.02.2016 during the consideration of the GTPP.

MNH Shakti Limited

Mahanadi Coalfields Limited, your Company and Hindalco jointly formed MNH Shakti Limited with equity participation of 70:15:15 to implement 20.0 MTPA Coal Mining project in Talabira, in the state of Odisha. The Talabira-II & III Coal Blocks allocated for this purpose have been cancelled pursuant to judgment of Hon’ble Supreme Court of India and the Coal Mines (Special Provisions) Ordinance, 2014. The JV Company has proposed for winding up and necessary formalities are being worked out by them. The above said Coal Blocks have since been allotted to the Company.

New Coal Block Development

Pachwara South Coal Block (11.0 MTPA)

The Pachwara South Coal Block for a capacity 11.0 MTPA allotted to NUPPL has been proposed to be developed through the appointment of Mine Developer & Operator (MDO) and the tender floated for the above appointment is in process. In the meantime NUPPL is pursuing through the task force set up by the Government of Jharkhand for issues concerning detailed exploration, obtaining forestry clearance etc. and for the development of the block. Notification has been issued under Sec 4(1) of CBA Act for carrying out the detailed exploration of the block.

New Projects Under Formulation

Mine-III Project (11.5 MTPA)

Your Company has proposed to develop Mine-III at Neyveli, South of Mine-II for a capacity of 11.5 MTPA to supply lignite to the proposed Thermal Station-II Second Expansion (1320 MW) Project. The Board of Directors of your Company has accorded approval for the expenditure sanction of Rs.7.05 crore for the Phase-I Advance Action Proposal (AAP) activities. Mining Plan & Feasibility Report are being prepared and preparation of EIA/EMP reports are in progress for obtaining Environment Clearance. Environmental Appraisal Committee of MoEF&CC has approved the Terms of Reference (TOR) and Baseline Study & Socio-Impact Assessment (SIA) Study have been commenced while the Geo-Technical & Geo-Hydrological Studies are under progress. Application has been submitted to the District Administration for obtaining the administrative sanction for acquiring land for the Mine project.

Thermal Station-II Second Expansion (2x660 MW) with linked Mine-III (11.5 MTPA)

Your Company had earlier proposed to set up a 1000 MW Lignite based Thermal Power Station as TPS-II 2^nd Expansion Project (2x500 MW) at Neyveli near Mudhanai Village (linked to Mine-III of 9.0 MTPA) with sub-critical technology. Based on the norms issued by the Ministry of Power, Government of India, the Unit configuration was modified to 2x660 MW with super-critical technology. The Board of Directors of your Company has accorded sanction for the Advance Action Proposal at an estimated cost of Rs.66.85 crore, for taking certain pre-project related activities for this project. Ministry of Power has granted exemption from the tariff based competitive bidding for the above project and has also allowed to allocate the power from this Project as per the Central formula for allocation of Power to the constituents of Southern region. The Power Purchase Agreements (PPAs) have already been signed with the Southern DISCOMs viz., Tamil Nadu Generation and Distribution Corporation(TANGEDCO), Electricity Department of Puducherry (EDP), Kerala State Electricity Board (KSEB), Telangana State Power Coordination Committee (TSPCC) & Andhra Pradesh Power Coordination Committee (APPCC) and the Power Company of Karnataka Limited (PCKL) is yet to sign the PPA for the above project. Excepting KSEB all other beneficiaries mentioned above have given their consents for the earlier signed PPAs for the revised capacity of 1320 MW.

The Expert Appraisal Committee (EAC) of MoE&F & CC has considered and issued the Terms of Reference (ToR). Environment Clearance is awaited. It is proposed to issue the Expression of Interest (EoI) for the three Packages viz., Steam Generator & Auxiliaries (SG), Turbo Generator & Auxiliaries (TG) and Balance of Plants (BoP).

Sirkali Thermal Power Project (4000 MW)

Your Company had earlier proposed to set up a 4000 MW coal based thermal power plant at Sirkali, Nagapattinam District in the State of Tamil Nadu and the administrative sanction to acquire 1190.59 hectares of land was issued by Government of Tamil Nadu. Since the Sirkali Power Project was conceived in the year 2010 with the PPA signed in the year 2011 and in the light of allotment of Talabira - II & III coal blocks, the economic viability of the Sirkali project was re-assessed in the changed scenario. On assessment, the cost of power from the proposed pithead Power Plant at or nearby Talabira - II & III including the cost of wheeling of power emerged as a cheaper and environmentally friendly alternative instead of transportation of huge quantity of coal by road, rail and sea over a distance of around 1650 KMs to the earlier envisaged power plant at Sirkali. In view of the above, it has been decided by the Board of Directors of your Company not to pursue the Sirkali Thermal Power Project.

Odisha Pit Head Thermal Power Project (4000 MW)

The Board of Directors of your Company have accorded in-principle approval for the proposal to set up 2000 MW (Phase-1) coal based pit head power station in the proximity of Talabira-II & III coal blocks in the district of Jharsuguda, Odisha. However, it is proposed to set up 3x800 MW (Phase-I) with Ultra Super Critical Technology. Advance Action Proposal of Rs.25.11 crore has been sanctioned. Additionally, it has been proposed to install 2x800 MW as Phase-II in Tareikela and Kumbhari villages of Jharsuguda District. Necessary application for the project has been submitted to the Govt. of Odisha. Consent is being obtained from the Discoms to avail power from this project based on the Power Purchase Agreement signed for the Sirkali Thermal Power Project.

Acquisition of Power Assets

In order to have an inorganic growth, your Company as per the approved Corporate Plan aims to acquire power assets of about 3000 MW by the year 2025. EOI was floated for acquisition of power assets. It is proposed to carry out due diligence studies on two short-listed power assets viz., GMR Chhattisgarh Energy Limited of 2x685 MW and Ind Bharath Energy Utkal Limited of 2x350 MW.

Acquisition of Damodar Valley Corporation’s (DVC)- RTPS Project (2x600 MW)

As Members may be aware, the Board of Directors of your Company had accorded approval for the investment for acquiring Raghunathpur Thermal Power Station (RTPS) (Phase I) of Damodar Valley Corporation (DVC), by forming a Joint Venture Company between your Company and DVC in the equity participation ratio of 74:26. JVA between your Company and DVC has been signed on 10.08.2016 and the approval of Competition Commission of India for the Business Transaction has also been obtained. Approval of the Government of India is awaited for the investment in the JVC for the said acquisition.

SBI Capital Markets Ltd., (SBI Caps) was jointly appointed by DVC and your Company to carry out necessary due diligence studies on technical, legal and financial aspects with emphasis on risk factors & mitigation measures and also to advice both the parties on the acquisition process. As per the JVA entered into by your Company and DVC, the Project Cost as determined by CERC/ ATE for the purposes of arriving at the final tariff or such cost as mutually agreed would be the consideration value for the transfer of RTPS Project assets to the JVC. In this connection SBI Caps has arrived at Rs.7,547 crore as the Project Cost based on CERC Regulation for Benchmark Cost and other norms etc. and the same may undergo change while determining the final tariff for this Project by CERC.

Renewable Energy Projects

Corporate Plan Vision - 2025 of the Company envisages an addition of 4000 MW Solar generation capacity in different States and 200 MW of wind based power generation.

Andaman 50 MW Solar Power Project

Tripartite MoU among your Company, Ministry of New & Renewable Energy (MNRE) and the Andaman Nicobar Administration (ANA) has been signed with the objective to plan and implement a 50 MW Solar based plant in Andaman & Nicobar Islands, which will also supply power to the proposed pumped storage system for the 5.25 MW Hydro power station in Kalpong to cater to the needs of 24 hours power supply to Middle and North Andaman. PPA for the Project has been signed with Andaman Nicobar Administration.

Initially it was planned to install 20 MW in South Andaman and 30 MW in North Andaman and based on the availability of land and further deliberations the proposal was modified to install 20 MW in South Andaman; 23 MW in North Andaman (including 5 MW floating Solar) and 7 MW in Middle Andaman. Tendering activities for installing 20 MW Solar Power Projects with the cumulative capacity of 28 MWhr of Battery Energy Storage System at South Andaman have been initiated.

Solar Projects in other States

Your Company has initiated discussions with the State Governments of Karnataka, Madhya Pradesh and Andhra Pradesh for setting up Solar Power Projects in the respective States and in this regard necessary MOUs have been signed / Letter of Consent has been received. Subject to entering into a Power Purchase Agreement with the respective States and the viability of the Project, action will be initiated to set up solar power projects/ participate in the solar power parks notified by the State Governments, from time to time.

Your Company had earlier floated a tender to set up 130 MW Solar Power Project at Barsingsar in the State of Rajasthan at an estimated cost of Rs.852.57 crore. Project registration with Rajasthan Renewable Energy Corporation (RREC) was also completed. Since Viability Gap Funding was not available for this Project, it has been decided not to pursue this project further.

Roof Top Solar Power Project (1 MW)

Your Company has signed a MoU with Rajasthan Electronics and Instruments Limited (REIL) (Nodal Agency of MoC for Roof Top) for establishing 1 MW Roof Top Solar Power Project on the non-residential buildings in the township at Neyveli. Further actions are being taken to implement this project.

Long-term borrowing & Credit Rating

Your Company had earlier obtained funding of EURO 215.104 Million from KfW, Germany for Mine-I, TPS-I, TPS-I Expansion & Mine-I Expansion. Further as part of funding for the Mine-II Expansion, TPS-II Expansion, Barsingsar Mines & Thermal Power Projects, your Company in addition to the issue of 8.83% Neyveli Bonds 2009 aggregating to Rs.600 crore, had earlier entered into Rupee Term Loan (RTL) Agreements for Rs.3750 crore (RTL-I Rs.2500 crore and RTL-II of Rs.1250 crore) from the Canara Bank Consortium. The outstanding amount of Rs.1400 crore from the above Consortium was repaid during the year 2015-16 through refinance, at a lower interest rate, from SBI (Rs.467 crore), HDFC Bank (Rs.466.50 crore) and ICICI Bank (Rs.466.50 crore). All these borrowings have been rated with “AAA/Stable” indicating highest safety by CRISIL and ICRA.

Power Finance Corporation had also sanctioned a RTL of Rs.3000 crore for the NNTPS Project and this has also been rated with AAA/Stable (highest safety) by Brick work Ratings. During the year, your Company had obtained funding of Rs.481 crore from HDFC Bank at a lower Interest rate of 7.53% for the130 MW Neyveli Solar Power Project (NSPP) in Neyveli and the same has been rated AAA/Stable (highest safety) by CARE Ratings.

Commercial

Trading of Unrequisitioned Surplus (URS) Power

The beneficiaries continue to surrender their share of power from the Thermal Power Plants of the Central Generating Stations including your Company due to less demand conditions, availability of cheaper power in the market etc.

In order to improve the revenue, your Company has started selling this Unrequisitioned Surplus (URS) power in the market from June 2016.

Power Dues/Realisation

During the year 2016-17, outstanding dues beyond the 60 days limit without levy of surcharge stood at Rs.631.21 crore against Rs.406.17 crore for the year 2015-16.

Steps taken by your Company to recover dues in a time bound manner in 2016-17

1. Rebate Scheme

- To encourage early realisation, a special scheme called “Graded Rebate Scheme” was formulated which provides for a graded rebate from a maximum of 2% for payment within 2 days from the date of billing to 0% on the 60^th day of billing.

2. Payment Priority Clause

- Amendment of Power Purchase Agreement (PPA) for incorporating payment priority clause for appropriation of receipts was entered into with all beneficiaries (except Rajasthan Discoms).

- As per the payment priority mechanism, payment made by beneficiaries will be appropriated in the following order of priority:

- towards late payment surcharge payable, if any.

- towards earlier unpaid bill(s) including arrear bills, if any

- towards statutory dues like income tax, other tax, royalty etc., in the current bill(s) and

- towards other charges in the current monthly bill.

Land Acquisition and R&R Policy

Your Company is following the guidelines issued by Govt. of India from time to time on Rehabilitation and Resettlement, for the on-going projects with certain enhancements, aimed at minimising the adverse impacts of the projects on the affected people and for the benefit of the project affected population.

Your Company is sensitive to the painful involuntary relocation of displaced families due to projects of your Company and strives to minimise the trauma of displacement. Your Company is continuously and consciously balancing the techno-economic and the socio-economic goals of its projects.

Your Company has developed several Resettlement Centres (RCs) in the vicinity of its Projects and these RCs are provided with good infrastructure facilities & amenities and also well connected to the main roads. The eligible Project affected families have smoothly resettled in these RCs and have also been provided with rehabilitation measures in addition to legal compensation for loss of assets, as directed by the appropriate Government from time to time and with the co-operation of the District Administration.

So far 17121 enhanced compensation cases have been settled in 275 Lok Adalat sittings and maximum settlement rate in Lok Adalat has been achieved through complete computerization of the settlement process. Due to these measures, your Company has been facing the least resistance to Land Acquisition and 1395 Ha. of land has been acquired since April 2006.

New Land Acquisition Act

The Government of India (GOI) has enacted New Land Acquisition Act viz.,-“Right to Fair Compensation and Transparency in Land Acquisition Rehabilitation and Resettlement Act - 2013” which is applicable from 01.01.2014. However, the Govt. of Tamil Nadu had issued a G.O to continue the land acquisition process under the same Tamil Nadu Acquisition of land for Industrial Purposes Act 1997 (Tamil Nadu Act 10/1999) with a provision for payment of interim compensation, subject to payment of final compensation (if any) later as per the new central LA Act 30/2013. Subsequently the Govt. of Tamil Nadu had passed an Amendment Act - “Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement (Tamil Nadu Amendment) Act - 2014” to exclude the Industrial Purposes Act, 1997 (Tamil Nadu Act 10 of 1999) from the provisions of the Central LA Act, except the provisions relating to the determination of the compensation and rehabilitation & resettlement. The rules for implementing the provisions of compensation and R&R benefit of the New Act/amendment are awaited from Govt. of Tamil Nadu.

Research and Development (R&D)

Centre for Applied Research & Development (CARD) is the In-house R&D Centre of your Company. CARD has been granted National Accreditation Board for Testing and Calibration Laboratories (NABL) accreditation for chemical and mechanical testing (for certain parameters only). This accreditation is based on the international standard ISO/IEC 17025:2005 and meets the principles of ISO 9001 that are relevant to scope of testing services as well as technical competency of the laboratory.

The total R&D expenditure, incurred during the year 2016-17 was Rs.13.35 crore and the CARD has complied with the MoU guidelines on R&D. Two completed projects are (1) “Conservation of Energy thro’ implementation of Programmable Logic Control (PLC) based Dynamic Loading System on Conveyor System” and (2) “Delineation of buried sub-surface objects in opencast Mines”.

Human Resource Management

Your Company takes pride in its competent and highly motivated human resource significantly contributing to the growth and mission of the Company. Your Company maintains harmonious and cordial relationship among the employees and with other stakeholders that leads to achieving organisational as well as individual goals. Human resource has been the backbone of the Company in driving operational and financial performance. The thrust on achieving higher growth and optimal utilisation of manpower continued in the year under review also. The total manpower of the Company as on 31^st March, 2017 stood at 15030.

Employee Development

Your Company is continuously promoting training, learning initiatives for skill and competency building not only for its own employees but also for the surrounding society. The training programme and module includes areas of Management, Computer, functional areas of thermal and mining, skill development, safety, CSR etc. Envisaging the importance of skill development among the society especially youths, various measures and initiatives are taken under its CSR plan for capacity building and promoting entrepreneurial skill by imparting training in various trades. During the year 2016-17, 596 In-house programmes were organised covering 25745 employee headcounts.

During the year under review 873 employees were deputed to various Training Programmes, Workshops, Conferences within India covering 725 Executives, 148 Non-executives through 281 programmes. During the year 2016-17, 11 numbers of Leadership Development programmes were arranged for the Senior Level Executives.

Your Company provides Apprentices Training every year as per Statutory Guidelines of the Regional Director of Apprenticeship Training, Chennai (RDAT) and the Board of Apprenticeship Training (BOAT) of Southern Region, Chennai.

Industrial Relations

Your Company continued its faith in participative management and has a regular system of holding bi-partite structured meetings with the Recognised Unions in addressing the common issues of the employees.

Secret Ballot election was conducted by the Deputy Chief Labour Commissioner (Central) for getting elected as the recognised Unions to hold discussions with the Management for the issues of unionised category of workmen/ non-executives. Accordingly CITU-NLC Labour & Staff Union and NLC Workers Progressive Unions (LPF) have secured votes (Jointly) over 51% and to operate as collective bargaining agents from the year 2016 to 2020.

Your Company won the first runner up of National Award for Outstanding Industrial Relations (2014-2015) held during May-2016 by the All India Organisation of Employers and the award was presented by Shri Bandaru Dattatreya, Hon’ble Minister for Labour & Employment (Independent charge), Govt.of India.

In general, the industrial relations scenario of the organisation remained by and large peaceful and cordial during the year 2016-17.

Implementation of Official Language Policy

In line with the Policy of Government of India and the provisions prescribed under the Official Language Act 1963, your Company made all concerted efforts to implement the Policy and promote the Official Language. The following events have been carried out during the year 2016-17:

The Official Language (OL) Implementation Committee of the Company under the Chairmanship of the CMD conducted quarterly review meetings for the effective implementation of OL policy. Hindi workshops were conducted on quarterly basis on various topics as per the Act besides conducting spoken Hindi classes for 30 working days. Hindi Fortnight was celebrated in the month of September 2016 and Hindi competitions on various topics were held during that fortnight. In order to promote the OL among the employees, Hindi regular/correspondence courses, Hindi Typewriting courses and personal contact programmes were conducted. 281 employees passed under regular courses and 184 employees under correspondence courses. 235 employees have enrolled this year for the correspondence courses and 129 for the regular courses.

The House Journals & e-news are being published in trilingual i.e., Tamil, Hindi & English and Annual Reports in bilingual. Hindi version of Company website is being updated regularly. Your Company was awarded with the “Raj Bhasha Shield - 2016” for its excellent performance in the progressive use of Official Language.

Reservation of Posts

Your Company follows the reservation policy for SCs, STs and OBCs as per the presidential directives and the guidelines issued by the Government of India. The group-wise Men-in-Position (MIP) as on 31^st March, 2017 stands as follows:

Group	Total	Strength of SC/ST/OBC			% of SC/ST/OBC
	Strength	SC	ST	OBC	SC	ST	OBC
A	3,838	794	283	3862	20.69	7.37	10.06*
B	224	49	18	58	21.88	8.04	25.89
C	9,725	1,859	97	2754	19.12	1.00	28.32
D	1,243	276	4	616	22.20	0.32	49.56
Total	15,030	2,978	402	3,814	19.81	2.67	25.38

* strength of OBCs on rolls after reservation for OBCs came in to effect (08-09-1993).

However more than adequate strength of BCs were recruited prior to reservation for OBCs came in to effect.

Scholarship Scheme and Tuition Fee Concession

Your Company implements Educational Assistance Schemes to the wards of employees and Contract Workmen for pursuing Under Graduate Degree/Diploma/Professional courses till course duration subject to a maximum of five years. Exclusive Schemes have been devised for general merit, SC/STs, OBCs and Contract Workmen deployed by contractor employers and under the Contract Workmen Scholarship Scheme, 75 nos. of Scholarships have been earmarked exclusively for girl children.

Besides above, your Company reimburses the tuition fees for students belonging to SC/ST/OBC category studying in Jawahar Science College, Neyveli every year.

Welfare Activities

Your Company creates a lot of opportunities to the children/students of Neyveli to participate in various competitions organised through the Education Department of the Company in various events like Communal Harmony, Neyveli Book Fair, Children’s Day, Vigilance Awareness Week, etc.

Further 16 nos. of School toppers among the girl students of Neyveli Schools were awarded with Rs.10,000 each as cash award with a Merit certificate and a medal.

Swachh Bharat Mission

As per the action plan drawn by your Company cleanliness drive programme were carried out by the students of all Neyveli Schools at various locations from 16^th April 2016 to 30^th April 2016 on the theme of “Heritage Place and Monuments”

As per the directives issued by the Govt. of India, a detailed Swachh Bharat Mission, Action Plan for the Fortnight from 01.11.2016 to 15.11.2016 and various activities such as Mass Pledge, special lecture programme on personal hygiene & prevention of Leptospirosis, Inter-school competitions, visit to various villages to create awareness among the public, street play, mini marathon to create cleanliness awareness were organised during the fortnight.

Communal Harmony Campaign Week

As per the Ministry of Home Affairs, GOI guidelines, with a view to foster and reinforce the spirit of Communal Harmony, National Integration and pride in vibrant, composite culture and nationhood, the “QAUMI EKTA WEEK” / “COMMUNAL HARMONY CAMPAIGN WEEK - 2016” was observed from 19.11.2016 to 25.11.2016. Various activities were executed during that week.

Township

Neyveli Complex established in the year 1959, has grown into a self-contained unit with all facilities. It has a total population about 1,35,000 and spread over approximately 50 Sq.kms. The facilities include Schools, College, sophisticated 340 bed General Hospital, Central Library, Swimming Pools, Auditorium, Stadium, Community Welfare Centres, Recreation Clubs, Reading Rooms, Parks, Banks, Shopping complexes, Offices of Government Agencies and about 20,410 quarters. The township is being maintained with total ecological balance. Various sanitation and health hygiene plans are enforced and all national health and immunisation programmes were organised for the eradication of congenital and epidemic diseases. Similar townships with all facilities have been provided to the employees posted in Barsingsar and Tuticorin.

Sports Development Centre

Sports Development Centre has been promoting sports activities among the Neyveli School students, youth and NLCIL personnel. Neyveli School students are regularly trained in various disciplines by the coaches in the Sports Development Centre and they have been sponsored to participate in many tournaments. Promotion of sports among the students has culminated in the form of notable achievements at State, National and even at International level and won various medals/trophies.

Environmental Management & Sustainable Development Projects

Your Company practices and promotes the best environment management plan and is committed to environment friendly mining and power generation. The environment policy of your Company is in line with the Vision and Mission Statement and 3 Thermal Power Stations and 3 Mines at Neyveli have been certified with ISO 14001 (Environment Management System), ISO 9001 (Quality Management System) and OHSAS 18001 (Occupational Health and Safety Management System) certifications.

Members may be aware that your Company adopts various methods for reclaiming the mined out soil and one of those methods is Integrated Farming System (IFS), a technique jointly developed with the Tamil Nadu Agricultural University and successfully implemented in reclaiming the mined out land suitable for agricultural, horticulture crops and development of forestry, pasture land fish & Prawn culture, protection of water bodies, sericulture etc..

During the year 2016-17, 113.50 Ha of land has been reclaimed in all the Mines of Neyveli. Orchards and herbal cultivation is undertaken in the reclaimed area. Slope stabilisation of the Mines Overburden dumps has been undertaken with a view to convert the mine spoil into vegetative making fit for habitation.

Your Company continues to plant trees in order to maintain the green belt and so far over 20 million trees have been planted in and around Neyveli Township and production units, which helps in maintaining clean environment, dust suppression, noise control, lowering the atmospheric temperature and maintaining the ecological balance.

Safeguarding Bio-Diversity

As a part of bio-diversity, initiatives have been taken up to promote integrated fish farming in the Neyveli Township under CSR scheme. In Kundan Kulam Tank, a natural water resource spread over 9 acres, 7 fish ponds with a depth of 3.6 m and water storage capacity of 2000 to 3000 m² have been formed at a cost of Rs.50 lakh. The department of Marine Biology, Annamalai University is the consultant for the project.

Collaborative study under sustainable development head has been taken up with Pondicherry Engineering college on “Sequestration of Co² and production of bio-fuel from flue gas of Thermal Power Plants” is under progress.

A Project on “Identification of suitable surface water bodies for de-silting and restoration in the Neyveli Hydro-geological Basin using Geospatiatial Technology” has been taken up in association with Annamalai University, Chidambaram at a total cost of Rs.42.12 lakh.

Safety

Your Company gives paramount importance to safety of its men and equipment. Regular Risk Assessment and Safety Audits are conducted in Mines and Thermal Power Stations through engaging accredited external agencies. Safety related trainings are imparted at all levels of employees through well-designed training centres like Group Vocational Training Centre in Mines, Thermal Training Centre and Learning & Development Centre. Pit Safety Committee, Unit Safety Committee and Central Safety Council are functioning with a view to cultivate safety awareness among the employees and to avoid/minimise accidents.

Risk Management

Your Company has developed a comprehensive Integrated Risk Management (IRM) framework headed by Functional Director under this framework, Risk Management is practiced in all the units and the possible risks associated with its business are identified & mitigation plans are evolved. The risk together with the mitigation plans and its implementations are reviewed by the Risk Management Committee and by the Board periodically.

Vigilance

In order to sensitise the employees of your Company measures such as pro-active, preventive and punitive vigilance activities were undertaken by the Vigilance Department. Surprise checks, regular checks, CTE type examinations, quality check and Study/Inspection have been conducted and various system improvements were achieved.

Various IT initiatives such as Integrated Complaint Management System; Public Interface thro’ Social Media, Webpage, WhatsApp Messenger; Bill Tracking System; Payment to Contract Workmen by the Contractors through Bank; GPS based Vehicles Tracking System for lignite transportation; Auto refund of EMD for unsuccessful bidders for Purchase of Materials through e-procurement in OLIMMS; Online Vendor empanelment and Installation of Surveillance Camera, have been taken besides mapping of corruption.

As was done during the last year in order to impart ethical awareness and ethical character education, programmes were conducted wherein more than 2500 school students of Neyveli Township participated. Customized training programmes were also conducted to sensitize the employees.

MoU with Transparency International

Your Company has signed a Memorandum of Understanding with Transparency International India, part of Asia Pacific forum comprising 20 nations. Transparency International India is the Indian chapter of Transparency International, based at Berlin, Germany. During the year 2016-17, two review meetings of the Independent External Monitors were held.

Knowledge sharing

As part of Diamond Jubilee celebration, your Company during the year under review conducted the following two day National Seminars at Neyveli, wherein delegates from other Public Sector Enterprises and Government Organisations from all over India had participated:

- Seminar on ‘Best Human Resources Practices’ in association with the Neyveli Chapter of the National Institute of Personnel Management.

- Seminar on the theme “Present scenario in Power Sector & future challenges”.

- Seminar titled “Eco - friendly surface mining technology, challenges and way forward”.

- Seminar on “Best practices in Tendering, Contract Management and Dispute Resolution” in association with the Standing Committee of Public Sector Enterprise (SCOPE).

- Seminar on “Best Practices in Financial Management”.

Corporate Social Responsibility

Your Company, as a socially responsible corporate citizen, continues to carry out development works in the surrounding villages, focusing on the socio economic development of the operating regions for achieving inclusive growth.

- In the Year 2016-17, your Company had adopted a revised Corporate Social Responsibility Policy covering the various sectors of sustainable socio-economic development. The Policy is available in the Company’s Website: https://www.nlcindia.com/new_website/index.htm

- Your Company outlays funds for the CSR projects, programmes and activities selected for implementation under the CSR Policy.

- The CSR Committee of the Board is monitoring the implementation of the CSR Projects. The Board of Directors reviews the same in order to ensure that your Company spends, in every financial year, at least 2% of the average net profits of the Company for the last three years.

- Timeframes and milestones are fixed through Baseline Survey before commencement of the CSR Projects.

- Initiatives of State/ Central Government Departments/ Agencies are dovetailed/ synergized with the CSR Activities of NLCIL.

The CSR projects taken up by your Company for the year 2016-17 amounts to Rs.43.46 crore.

The manner in which the amount was spent is given in the Annexure-1.

The major CSR initiatives undertaken during the year 2016-17 are given below:-

CSR - Peripheral

Members may be aware that a structured system is in operation for executing capital works for developing social infrastructure and building Sustainable Community Assets which benefit the villages surrounding Neyveli in Tamil Nadu and Barsingsar in Rajasthan. Under this scheme, infrastructure development works like drinking water facility by sinking/ maintaining the bore-wells, constructing RCC water tanks, providing roads, bridges & access, additional school buildings, laboratories, libraries, additional Infrastructure for primary health centres, developing medical facilities, de-silting of lakes etc., are being carried out on the basis of needs and priorities. Various works have been carried out during the year under review for the benefit of the population in the areas surrounding the operating localities.

During the year 2016-17, Your Company has taken up the following activities:

- Water resource Augmentation (Jala Paryaptha)

Desilting and other improvement works in Sengal Odai and Middle Paravanar towards water resource augmentation was taken up in 2016-17 for the benefit of around 60 peripheral villages of Neyveli at a cost of around Rs.7.0 crore. This work is being continued in 2017-18 at a cost of Rs.5.78 crore.

- Drinking Water (Jal-Dhara)

Drinking water and butter milk were provided to the public for 47 days during the peak summer catering to around 8000 persons per day.

To cater to the need of drinking water to the public, 10 Nos. of purified drinking water plants have been installed (5 Nos. provided in Heritage sites viz., Thirumala Tirupathi Devasthanam, Lord Jagannath Temple at Puri and Sri Natarajar Temple, Chidambaram. 5 Nos. were provided in Neyveli including 3 Nos. in Resettlement areas).

- Water Harvest Scheme (Jal-Uday)

Your Company has taken up water harvest schemes to improve water bodies at Neyveli complex including Kundan Tank and Villudaiyanpattu Tank. Original habitat formation has been brought back by fish breeding and aquaculture. Further, planting of flowering trees, fruit trees, organic farming, herbal and medicinal plants are also taken up.

- Roads and Access (Dhora)

Laying of BT Road formation from Pudhukooraipettai village to Ulundurpet Highway has been taken up in 2016-17 at a cost of Rs.1.77 crore. This work has been carried out partially and being continued for completion in 2017-18. Apart from the above said project, your Company provides roads and access to general public in the peripheral villages of Neyveli and Barsingsar. Your Company also provides access to the social facilities of the Company’s Townships to the public in the surrounding areas.

Your Company has also provided LED Lamps in local areas for energy conservation.

CSR - Community

Your Company continues to extend all assistance including grant and infrastructure to Sneha Opportunity Services at Neyveli to run a day care, education and training centre for special children of the region. Sneha school imparts education and training to mentally challenged children (around 75 children 49 Boys & 26 Girls).

Neyveli Health Promotion and Social Welfare Society patronised by your Company has been serving the society running a school for the hearing impaired and a Computer Centre for imparting training for physically challenged, widows & destitute and gainfully employing them through various training.

During the year 2016-17, CSR focused Training programmes were organised for the benefit of the students, teachers and the population of Neyveli locality, in which 745 persons participated. 370 women from various peripheral villages were trained for Light Motor Vehicle Driving, Tailoring, Gem and Jewellery and Beautician Trades. 375 men from various peripheral villages were trained in trades of Operation & Maintenance of Light Motor Vehicles, Heavy Transport Vehicles and Earth Moving Equipment Operation.

During the year 2016-17, Your Company has provided

- Battery Operated Vehicles & DG Sets to Heritage sites

- Yoga Kendras for promoting Yoga as per Govt. Directives

- Your Company has taken action for establishing old age home at Neyveli for the benefit of old-aged.

- Gas Crematorium at Neyveli

During the year 2016-17, Your Company has also undertaken relief measures in the area affected by Cyclone Vardha in and around Chennai, Tamil Nadu and extended its helping hand by distributing the relief materials and clearing more than 1000 trees which had fallen.

CSR - Education (Taaleem)

Your Company offers best education through its 10 schools - 3 Higher Secondary Schools, 2 High Schools, 3 Middle Schools and 2 Elementary Schools and also through the Kendriya Vidyalaya at Neyveli, to the students from surrounding villages and also to the wards of employees. The total students’ strength in these 11 schools was 6017. Your Company has imparted coaching classes to the deprived and under privileged students from the peripheral village schools entering X standard in the year 2016-17.

Your Company provides infrastructural support and also periodical financial support to various educational institutions in Barsingsar for providing quality education and technical training to the children of villages around your Company’s project-sites at Neyveli.

CSR - Health (Ilaaj)

Your Company provides quality medical treatment and occupational health services through its General Hospital to all inhabitants of the Neyveli Township and its surrounding villages, including comprehensive medical treatment to the Contract Workmen and their family members.

During the year 2016-17

- Free medical consultation with minimum antibiotic therapy and vitamins were extended in about 5,33,616 instances to out-patients from the rural public and Contract Workmen. About 29,523 patients were given emergency treatment for various causes.

- In-patient care treatment including Intensive Care for critical conditions, all surgeries (General, ENT, Ortho, Obstetrics & Gynaecology, Dermatology) was given at free of cost for about 13,430 patients from the rural public and Contract Workmen.

- 18 medical camps were conducted in peripheral villages located in the area surrounding Neyveli Township in Cuddalore District. 6669 persons of these villages were screened and given medical advice & medicines. While 642 Random Blood Sugar Tests were taken, 289 Electro Cardio Grams were generated and 438 persons were provided with vision glasses. 2503 patients were referred for in-patient treatment of which 656 persons underwent the same.

- Five Blood Donation Camps were conducted by your Company wherein 349 Students of Cuddalore ITI, Aries Polytechnic - Karunkuzhi, Periyar Arts College - Cuddalore, Anna University - Panruti, R.K. ITI -Cuddalore participated for the stock of Government Hospital at Cuddalore.

- From February 2013 onwards, your Company is providing nutritious food supplement to the HIV affected children belonging to the Cuddalore District HIV Positive Society, Cuddalore. 300 such children were provided with food supplements during the year 2016-17.

- Swachh Bharath Pakhwadas were planned and carried out various programmes towards Swachh Bharath Mission as per Government directives.

In addition to the above, the details on specific Corporate Social Responsibility projects undertaken in compliance with Section 135 of the Companies Act, 2013 are placed as Annexure-1.

FORUM OF WOMEN IN PUBLIC SECTOR (WIPS)

WIPS, NLC Chapter conducts regular inter-organisational and intra-organisational meetings to elicit the views of its members & other members of the society and accordingly the following themes were given importance during year 2016 - 17:

(a) Empowerment of women employees (Education, Health & Encouragement).

(b) Motivational programme for girl children.

(c) Social welfare /awareness programme.

Visit of Parliamentary Committees

During the year 2016-17 the following Parliamentary Committees visited your Company:

- Department related Parliamentary Standing Committee on Personnel, Public Grievances, Law and Justice Department related Parliamentary Standing Committee on Human Resource Development.

- Parliamentary Committee on papers laid on the table, Rajya Sabha.

- Parliamentary Committee on Subordinate Legislation, Rajya Sabha, on the subject “Hazardous and other Wastes (Management and Trans-boundary Movement) Rules, 2016 and Plastic Waste Management Rules 2016”.

- Parliamentary Standing Committee on Coal and Steel on the subject “Briefing on Compliance of Environmental Norms by Coal/Lignite Companies”.

- Departmental Parliamentary Committee on Industry on 19^th December, 2016 at Mumbai on the subject “Prescribed 20% procurement from MSMEs by the PSEs and the status of Vendor Development Programme”.

- Parliamentary Standing Committee on Coal and Steel on the subject “Production of Lignite-Projections and Planning”.

Awards & Recognition

In recognition of its various activities your Company has been conferred with the following awards during the year 2016-17: Gold Trophy & a Citation of Scope Excellence Award - Institutional Category (Maharatna/Navratna PSE’s) for the year 2011-12.

National award for outstanding Industrial Relations for the year 2014-15 instituted by the All India Organisation of Employers (AIOE).

Golden Peacock Environment Award 2016 instituted by Institute of Directors, New Delhi in appreciation of its adoption of environment friendly technologies.

The following three awards instituted by Public Relation Society of India :

1. Best PSU implementing CSR (2nd Place)

2. Best Corporate film - Hindi (2nd Place)

3. Special Award for Best PSU implementing RTI

I Prize in RAJBHASHA FIELD for the best performance of the Official Language Implementation among the Member Offices of Town Official Language Implementation Committee (TOLIC)/Puducherry for the year 2015-16.

The “Best Enterprise Award” (Third prize) in the Navratna Category for the year 2016 in recognition of its works for the development of women employees in the organisation and the welfare of women and children in villages around Neyveli. “Fly Ash Utilisation Award from Mission Energy Foundation, for effective utilisation of Fly ash”.

Compliance under Persons with Disabilities Act, 1995

Your Company ensures compliance of provisions under the Persons with Disabilities Act, 1995 and has evolved a comprehensive policy for Persons with Disabilities (PwDs) as per the guidelines of Department of Personnel & Training (DoPT) for providing certain facilities/amenities to PwDs to meet their requirements and to enable them to effectively discharge their duties.

Your Company had also resorted to a special recruitment drive during the year 2015 and filled 130 vacancies with the persons with disabilities as per the reservation policy.

Compliance under the Right to Information Act, 2005

Your Company ensures compliance under the Right to Information Act 2005. 19 Central Assistant Public Information Officers representing different functional areas, one Nodal Officer, one Central Public Information Officer, one Appellate Authority and one Transparency Officer have been nominated to attend to the queries and appeals received under the RTI act in a time bound manner.

During the year 2016-17, under the above Act, 331 applications containing 2093 queries were received and 296 applications covering 1926 queries have been replied.

Compliance under Public Procurement Policy

The Ministry of Micro, Small and Medium Enterprises (MSME) has notified the Public Procurement Policy and in terms of the notification issued, has set an annual target of 20% for procurement from MSME for the three years beginning from the financial year 2012-13. After a period of three years i.e. from 1^st April 2015, overall procurement goal of minimum of 20% is made mandatory. The target set for the financial year 2016-17 for procurement of such items which are within the scope of MSMEs was 20% and as against the same, the achievement was 44.49%.

Citizen’s Charter

Your Company maintains Citizen’s Charter, indicating details of clients, customers under different heads, system of redressal of grievance etc., and the same is regularly updated.

Conservation of Energy, Technology absorption and Foreign Exchange Earnings and Outgo

The particulars required under Section 134(3)(m) of the Companies act, 2013 regarding conservation of energy, technology absorption and Foreign Exchange earnings and outgo are furnished in Annexure-2.

Management Discussion & Analysis Report and Report on Corporate Governance The Management Discussion & Analysis Report is furnished in Annexure-3. The report on Corporate Governance on the compliance of Corporate Governance conditions stipulated by SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 and the DPE guidelines on Corporate Governance is furnished in Annexure-4. The Auditor’s certificate on the compliance of the above Corporate Governance conditions is furnished in Annexure-5.

Statutory Disclosures under Companies Act, 2013 and SEBI (LODR) Regulations, 2015 Extract of Annual Return

The extract of Annual Return in terms of Section 134(3) read with 92(3) of the Companies Act,2013 is placed in Annexure-6.

Declaration by Independent Directors

The Independent Directors have given a declaration on meeting the criteria of independence as stipulated in Section 149(6) of the Companies Act, 2013.

Particulars of Employees

Particulars of Employees as required under Rule 5(2) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014-Nil.

Loans, Guarantees and Investments

During the year 2016-17, your Company had subscribed to the equity share capital for an amount of Rs.200.93 crore and Rs.271.32 crore in NTPL & NUPPL respectively. As on 31^st March 2017 the share capital held by your Company in NTPL & NUPPL is Rs.1947.36 crore and Rs.461.24 crore respectively. Your Company as the major Promoter, has been extending loans to its Subsidiaries, viz., NTPL and NUPPL. During the year 2016-17, an aggregate amount of Rs.520 crore was extended to NTPL and Rs.60 crore to NUPPL to meet its funding requirements.

Your Company has not granted any other loan or guarantee or made any other investments (other than short term deposits with the bank in the ordinary course of business) during the year 2016-17.

Transfer to Capital Redemption Reserve

During the year 2016-17, an amount of Rs.149.14 crore was transferred to capital redemption reserves in compliance with the provisions of Companies Act, 2013, consequent to the Buy-back of Equity Shares of the Company.

Deposits

The Company has not accepted any deposit from public.

Disclosures with respect to demat suspense account/unclaimed suspense account in terms of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015

There were 1100 equity shares pertaining to 6 shareholders lying unclaimed as on 01.04.2016. During the year 2016-17, no claim was received from any of the above shareholders.

Material Changes affecting financial position occurring between the end date of financial year and the date of the report

The Company has received CERC orders related to Barsingsar Thermal Power Station vide order dated 25^th April, 2017 having financial impact of Rs.179.30 crore and order dated 3^rd May, 2017 having financial impact of Rs.52.81 crore. The impact of both the orders has been considered while finalising the 2016-17 financial statements.

Sexual harassment of women at work place

A separate Committee has been constituted for looking into the complaints relating to sexual harassment of women at workplace. During the year 2016-17, one complaint was received in this regard and the enquiry is under progress.

Auditors Statutory Audit

P.B.Vijayaraghavan & Co., Chartered Accountants, Chennai and Chandran & Raman, Chartered Accountants, Chennai were appointed by the Comptroller and Auditor General of India (C&AG) as Joint Statutory Auditors for the year 2016-17 under Section 139 of the Companies Act, 2013. The Board of Directors of your Company has fixed Rs.24 lakh plus applicable service tax as the Statutory Audit fees, to be shared equally by the Joint Statutory Auditors.

Branch Audit

Bhandawat and Company, Chartered Accountants, Jaipur has been appointed as the Branch Auditor for the year 2016-17 by C&AG for conducting the audit of Mine and Thermal Units at Barsingsar.

Secretarial Audit

Shri.R.Balasubramaniam, Practicing Company Secretary, Chennai was appointed as the Secretarial Audit for the year 2016-17.The Secretarial Audit report for the year 2016-17 and the reply to observations of the Secretarial Auditor are furnished in Annexure-7.

Cost Audit

Bandyopadhyaya Bhaumik & Co, Kolkata was appointed as the Cost Auditor for the year 2016-17 to conduct cost audit for Mines & Power Stations of the Company. The cost audit report for the year 2015-16 was filed with MCA on 28^th September 2016 against the due date of 11^th October 2016.

C&AG’s Comments

C&AG’s Comments on the accounts for the year ended 31^st March, 2017 is furnished in Annexure-8.

Directors’ Responsibility Statement as per Section 134(3)(c) of the Companies Act, 2013

The Board of Directors declares that:

(a) in the preparation of the annual accounts, the applicable accounting standards had been followed along with proper explanation relating to material departures;

(b) the Directors had selected such accounting policies and applied them consistently and made judgments and estimates that are reasonable and prudent so as to give a true and fair view of the state of affairs of the Company at the end of the financial year and of the profit and loss of the Company for that period;

(c) the Directors had taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions of the Companies Act for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities;

(d) the Directors had prepared the annual accounts on a going concern basis;

(e) the Directors had laid down internal financial controls to be followed by the Company and that such internal financial controls are adequate and were operating effectively, and

(f) the Directors had devised proper systems to ensure compliance with the provisions of all applicable laws and that such systems were adequate and operating effectively.

Board of Directors

Shri. Vivek Bharadwaj, Joint Secretary, Ministry of Coal, Dr. Rajeev Ranjan, the then Additional Chief Secretary to Govt. of Tamil Nadu, Energy Department, Shri. R.P. Gupta, Joint Secretary, Ministry of Coal, Shri. R. Vikraman, Director (Human Resource), Ms. Nalini Padmanabhan, Ms. Monika Arora, Independent Directors, Shri. Vikram Kapur, Principal Secretary to Government of Tamil Nadu, Energy Department and Shri. Suresh Kumar, Additional Secretary to Government of India, Ministry of Coal were inducted into the Board of Directors w.e.f. 05.08.2016, 16.08.2016, 30.08.2016, 09.12.2016, 02.02.2017, 02.03.2017, 29.03.2017 and 09.06.2017 respectively. Shri Vivek Bharadwaj, Dr. Rajeev Ranjan and Shri R.P. Gupta, relinquished their position as Directors w.e.f. 30.08.2016, 06.03.2017 and 09.06.2017 respectively. The Board places on record its appreciation for the valuable contribution made by them during their tenure as Directors on the Board of the Company.

Shri. Subir Das, Director retires by rotation at the forthcoming Annual General Meeting and being eligible offers himself for re-election.

Acknowledgement

The Board of Directors of your Company places on record its sincere appreciation for the continued support and guidance extended by the Ministry of Coal, Ministry of Power, Ministry of New and Renewable Energy, Ministry of Finance, Ministry of Environment & Forest, Ministry of Industry, Ministry of Labour, Ministry of Heavy Industries, NITI Aayog, Central Electricity Authority, Central Electricity Regulatory Commission, State Electricity Boards and beneficiaries of Tamil Nadu, Andhra Pradesh, Telangana, Karnataka, Kerala, Puducherry and Rajasthan and also the Joint Venture Partners, viz., Tamil Nadu Generation and Distribution Corporation Limited (TANGEDCO), Uttar Pradesh Rajya Vidyut Utpadan Nigam Limited (UPRVUNL), Mahanadi Coalfields Limited (MCL) and Hindalco.

The Board of Directors of your Company is pleased to acknowledge with gratitude the co-operation and continued support extended by the Governments of Tamil Nadu, Rajasthan, Uttar Pradesh, Jharkhand and Odisha, V.O.C. Port Trust, Tuticorin and the District Administrations of Cuddalore, Bikaner, Tuticorin, Sambalpur, Kanpur Nagar and Dumka. The support and co-operation extended by the Comptroller and Auditor General of India, the Statutory Auditors, Branch Auditor, Cost Auditor, Secretarial Auditor, Director General of Mines Safety, the Factory & Boiler Inspectorates, Chief Inspector of Factories, the Director of Boilers, Central Pollution Control Board, State Pollution Control Board, Chief Controller of Explosives, Regional Labour Commissioner, Regional Provident Fund Commissioner, the Company’s Bankers and KfW of Germany need special mention and the Directors acknowledge the same.

Your Directors also wish to place on record their appreciation for the dedicated work put forth by the Employees at all levels. The positive role played by the recognised Trade Unions and Associations of the Engineers and Officers in maintaining cordial industrial relations deserves special mention.

for and on behalf of the Board of Directors

Place : Chennai Dr.SARAT KUMAR ACHARYA

Date : 12-8-2017 CHAIRMAN AND MANAGING DIRECTOR

---

Mar 31, 2015

Dear Members,

The Directors are pleased to present the 59th Annual Report of your Company together with the Audited Accounts for the year ended 31st March 2015.

Snapshot of Performance

PHYSICAL

Particulars 2014-15 2013-14

Overburden Removal (LM3) 1592.98 1681.72

Lignite Production (LT) 265.43 266.09

Power Generation (MU) 19729.13 19988.65

Power Export (MU) 16671.23 16956.40

LM3 - Lakh Cubic Meter LT - Lakh Tonnes MU - Million Units

* Overburden (OB)* Removal at 624.19 LM3 from Mine-I is the highest for any year since inception.

* Power Generation at 3385.03 MU from Thermal Power Station-I Expansion is the highest for any year since inception. This plant registered a Plant Load Factor (PLF)** of 92% which is the highest ever for any lignite based Power plant in India.

* Export of Power at 3107.25 MU from Thermal Power Station-I Expansion is the highest for any year since inception.

*Rock or soil overlying a mineral deposit.

**A measure of output of a Power Plant compared to the maximum output it could produce.

FINANCIAL

* Total Sales of Rs. 6087.68 crore is the highest for any year since inception.

* Profit Before Tax (PBT) and the Profit After Tax (PAT) for the year 2014-15 of Rs. 2383.33 crore and Rs. 1579.68 crore respectively are the highest for any year since inception.

Segment-wise Performance

Mines

Your Company is presently operating four lignite mines with a total capacity of 30.60 MTPA. During the year under review 1592.98 LM3 of Overburden was removed as against 1681.72 LM3 in 2013-14. The shortfall of 88.74 LM3 in 2014-15 over the previous year was on account of unscheduled stoppages of conveyor systems in overburden benches of Mine-II for taking up vulcanising works and downtime of certain OB system BWEs of Mine-IA due to mechanical breakdown.

The total Lignite production from all the mines during the year 2014-15 aggregated to 265.43 LT as against 266.09 LT during the previous year 2013-14. However the lignite requirements of Power Plants have been fully met with.

The detailed Mine-wise performance is as under :

Mine-I including Expansion - 10.5 MTPA

During the year 2014-15, Overburden removal was 624.19 LM3 as against 563.39 LM3 achieved during the previous year 2013-14 registering a growth of 10.79%. Lignite excavation during the year 2014-15 was 90.55 LT as against 90.03 LT during the previous year registering a growth of 0.58%.

Mine-IA - 3.0 MTPA

The Overburden removal from Mine-IA during the year under review was 206.62 LM3 as against 279.15 LM3 during the previous year 2013-14. Lignite production during the year under review was 29.15 LT as against 30.01 LT during the previous year 2013-14.

Mine-II including Expansion - 15.0 MTPA

The Overburden removal from this Mine during the year 2014-15 was 691.08 LM3 as against 772.93 LM3 registered during the previous year. Lignite production during the year under review was 132.21 LT as against 130.52 LT during the previous year 2013-14 registering a growth of 1.30%.

Barsingsar Mine - 2.1 MTPA

During the year 2014-15, the Overburden removal was 71.09 LM3 as against 66.25 LM3 registered during the previous year achieving a growth of 7.31%. Lignite production during the year under review was 13.52 LT as against 15.53 LT during the previous year 2013-14. Lignite production was restricted to meet the fuel requirement of the linked power plant.

Sale of lignite to M/s. TAQA and outside agencies

During the year 2014-15, your Company supplied 18.99 Lakh Tonnes of Lignite to TAQA (Independent Power Producer) as per the Fuel Supply Agreement (FSA). Apart from the above, 6.49 lakh Tonnes of Lignite was sold to other parties through open sales.

Power

With the commissioning of Unit-I & Unit-II of TPS-II Expansion, during the year 2015-16, your Company is presently operating five pithead thermal power stations with an aggregate capacity of 3240 MW. Further, your Company has also so far installed nine Wind Turbine Generators of 1.50 MW each, aggregating to 13.50 MW, thereby increasing the overall power generating capacity to 3253.50 MW.

During the year under review, 19729.13 MU of power was generated as against 19988.65 MU in the previous year 2013-14. The power generation would have been still higher but for the surrendering of power by the beneficiary States to the extent of about 93 MU. The average PLF for the Company as a whole was 81.36% as against the national average of 65.11%. The power export during the year was 16671.23 MU as against 16956.40 MU during the previous year 2013-14. The reason for shortfall in the generation and export as compared to the previous year was mainly on account of operation of units of Barsingsar TPS at lower load due to technical problems and that one Unit of TPS-I (100 MW) was under stoppage between 20th May 2014 and 13th August 2014 due to dislodgement of HP heater shell affecting the generation. Further TPS-I, one of the oldest power plant in the Country is serving for more than five decades and so could not be operated to the desired load due to ageing.

The detailed Plant-wise performance is as under:

Thermal Power Station-I - 600 MW

During the year 2014-15, the Power generation from this plant was 3631.05 MU as against 4058.14 MU during the previous year 2013-14 and 2876.12 MU of power was exported to Tamil Nadu power grid as against 3277.22 MU during the previous year 2013-14. During the year under review the Station achieved a PLF of 69.08%. Major Overhaul & Residual Life Assessment study works were carried out in Unit-1 & Unit-9. Annual maintenance works were carried out in all other units. As stated earlier, ageing of the Plant and shutdown of one Unit (100 MW) for a period of around three months had affected the generation during the year 2014-15.

Thermal Power Station-I Expansion - 420 MW

The Power generation from TPS-I Expansion was 3385.03 MU during the year 2014-15 as against 3292.10 MU in 2013-14 registering a growth of 2.82%. The power exported during the year under review was 3107.25 MU as against 3013.59 MU during the previous year 2013-14 registering a growth of 3.11%. This Station achieved a PLF of 92% which is the highest ever for any year since inception and highest for any lignite based Power Plant in India. Annual maintenance works were carried out in both the units during the year under review.

Thermal Power Station-II - 1470 MW

The Power generation during the year 2014-15 was 11131.33 MU as against 11179.16 MU in 2013-14 and 9370.80 MU of power was exported to the Southern Grid as against 9399.53 MU during the previous year 2013-14. This Station achieved a PLF of 86.44% during the year under review. Major overhaul was carried out in Unit-I & Unit-IV and Annual maintenance works were carried out in all other units during the year 2014-15.

Barsingsar Thermal Power Station - 250 MW

The Power generation during the year 2014-15 was 1380.71 MU as against 1438.24 MU in the year 2013-14 and 1190.33 MU of power was exported to the grid as against 1253.03 MU during the previous year 2013-14. This Plant achieved a PLF of 63.05% during the year under review. As stated earlier, this plant could not be operated at full load due to technical problems and steps are being taken to improve the performance of the plant. Annual maintenance works were carried out in both the units during the year under review.

Productivity

The output per man shift during the year 2014-15 as compared with the previous year is given below:

Product Unit 2014-15 2013-14 Growth

Lignite Tonne 12.88 12.64 ( ) 1.89%

Power KwHr 22008 22222 (-) 0.96%

Financial Performance

During the year ended 31st March, 2015, the Company registered a total sales of Rs.6087.68 crore as against Rs.5967.23 crore recorded in the year 2013-14, registering a growth of 2.02%. The sales registered for the year 2014-15 was the highest ever since inception.

The Profit Before Tax (PBT) and Profit After Tax (PAT) for the year 2014-15 were Rs.2383.33 crore and Rs.1579.68 crore, respectively, as against Rs.2209.13 crore and Rs.1501.88 crore, respectively, registered in the year 2013- 14. As compared to the previous year 2013-14, the PBT and the PAT for the year 2014-15 recorded a growth of 7.89% and 5.18%, respectively. The PBT and the PAT for the year ended 31st March, 2015 were the highest for any year since inception.

The reason for increase in the profit for the year 2014-15 was on account of increase in sales consequent to truing up of lignite price for the period 2009-14 and accounting claim of wage revision arrears approved by CERC vide order dated 12.05.2015.

The details of profit earned for the financial year 2014-15 and appropriation of the same in comparison with the previous year 2013-14 are as under:

(Rs. in crore)

2014-15 2013-14

Profit Before Tax 2383.33 2209.13

Tax provision 803.65 707.25

Profit After Tax 1579.68 1501.88

Appropriation :

Transfer to

Bond Redemption Reserve 15.00 15.00

Interest Differential Fund Reserve 11.81 17.07

General Reserve 60.00 155.00

Interim Dividend 301.99 167.77

Tax on Interim Dividend 61.83 28.51

Proposed Final Dividend 167.77 301.99

Tax on proposed Final Dividend 35.11 51.32

Dividend

The Board of Directors of your Company has recommended a final dividend of 10% (Rs.1.00 per share) for the year 2014- 15. An Interim Dividend @18% (Rs.1.80 per share) has already been paid to shareholders during the month of March 2015 and taking into account the same, the total dividend for the year 2014-15 works out to 28% (previous year 28%) and the total dividend outgo including distribution tax will be Rs.566.70 crore (previous year Rs.549.59 crore), which works out to 35.87% of PAT for the year 2014-15.

MoU Rating for the year 2013-14

Your Directors have pleasure to share with the Members that the Company has achieved ''Excellent'' rating for its performance during the year 2013-14 in terms of the Memorandum of Understanding (MoU) entered into with the Ministry of Coal as per DPE guidelines.

Projects under construction/Implementation

Thermal Power Station-II Expansion - 2x250 MW

Members may be aware, the TPS-II Expansion project (2x250 MW) at Neyveli is the Nation''s first project of this unit size with "Circulating Fluidised Bed Combustion (CFBC) Boiler Technology".

As stated in the Directors Report for the previous year 2013-14, M/s. BHEL the Main Plant Package Contractor had carried out modification works in the Fluidised Bed Heat Exchanger (FBHE) coil support system and attended to the refractory damage in Unit-I so as to establish sustainable operation. Similar modification works were also made in Unit-II.

Your Directors are happy to inform the successful commissioning of TPS-II Expn. project and Unit-I & II were declared for commercial operation with effect from 5th July 2015 and 22nd April, 2015, respectively. With this commissioning, the aggregate thermal power generation capacity of the Company has increased to 3240 MW. During the year in-firm power of 199.57 MU was generated and 125.38 MU was exported from this Plant.

Neyveli New Thermal Power Project - 2x500 MW

Your Company is implementing a 1000 MW lignite based Neyveli New Thermal Power Project at Neyveli adopting pulverised fuel firing technology as a replacement to the existing 600 MW TPS-I. The project was sanctioned in June 2011 at a capital cost of Rs. 5907.11 crore with a commissioning schedule of 48 months and 54 months for Unit-I & Unit-II respectively from the zero date.

Contract for execution of Steam Generator (NTA1) and Turbo-Generator (NTA2) packages have been awarded to BHEL and the Contract for Balance of Plant (NTA3) package has been awarded to M/s. Essar Projects (I) Limited. Due to re-tendering of the Steam Generator Package, there are slippages in the original schedule and Unit-I & II are rescheduled to be commissioned in October 2017 & April 2018 respectively.

Detailed engineering activities are in progress and soil investigation work has been completed. Civil works in respect of Boiler and Auxiliaries, Turbo Generator and Auxiliaries, Electrostatic Precipitator, Chimney raw water Pump house etc. are in progress. Supply of materials is in progress. Mechanical erection has commenced for both Unit-I & II Steam Generator area and Power House building.

The Cumulative expenditure incurred upto 31st March 2015 is Rs. 784.75 crore. Implementation of the Project is being closely monitored to expedite the completion as per the revised schedule.

Restructuring of Mine-I and Mine-IA

Your Company is implementing re-structuring of existing Mine-I from 10.5 MTPA to 8.0 MTPA and Mine-IA from 3.0 MTPA to 7.0 MTPA at an estimated cost of Rs.1458.17 crore to meet the requirement of lignite for Neyveli New Thermal Power Project of 1000 MW capacity being implemented in Neyveli. The overall lignite mining capacity will be increased by 1.5 MTPA through this restructuring. Mine-I will continue to operate at 10.5 MTPA until Mine-IA is developed to produce 7.0 MTPA.

Preparation of Feasibility Report has been completed. Draft Mining Plan and Mine closure Plan have been submitted to Ministry of Coal and acquisition of additional land required for the project is in progress. MoE&F has issued "Terms of Reference" for conducting EIA/EMP studies and the final EIA-EMP report has been submitted to MoE&F. The Cumulative expenditure incurred upto 31st March 2015 is Rs.8.19 crore.

Bithnok Thermal Power project - 250 MW with linked Mine - 2.25 MTPA

The Board of Directors of your Company has approved setting up of a lignite based Thermal Power Plant of 250 MW capacity with linked Mine of 2.25 MTPA at Bithnok in Bikaner District, in the State of Rajasthan at an aggregate cost of Rs. 2709.93 crore (Nov 2014). Power Purchase Agreement has been signed with Discoms of Rajasthan. Out of 3091.299 hectares (Ha.) land required for Bithnok TPS and Mine, Government of Rajasthan (GoR) has issued award for acquisition of 1175.87 hectares of private land in Bithnok village and 1863.184 Ha. of Government land will be diverted to your Company by GoR after takeover of the private land. The total land mentioned above included 225 Ha. of land for Thermal Power Station.

State level Environmental Impact Assessment Authority, Rajasthan has already issued Environmental Clearance for TPS. In respect of the linked mine, MOE&F has informed that Environmental Clearance could be considered only after the Stage-I Forestry clearance is obtained for the forest land of 52.245 Ha. involved in the project. Obtaining Stage-I Forestry clearance is in progress. Your Company has entered into an agreement for supply of 25 cusecs of water from IGNP for this project. The Board has accorded investment approval for the project. It is proposed to implement the above project through EPC mode and the project is expected to be commissioned during the year 2019. The Cumulative expenditure incurred upto 31st March 2015 is Rs. 85.04 crore.

Barsingsar Thermal Power Station Extension (BTPSE) - 250 MW linked to Hadla Lignite Mine-1.9 MTPA

The Board of Directors of your Company has approved to develop the Hadla Mine of 1.9 MTPA capacity to set up a 250 MW lignite based thermal power plant in the Bikaner District of Rajasthan, as an extension of the existing Barsingsar Power Project at an aggregate cost of Rs. 2635.04 crore (Nov 2014). The fuel requirement is proposed to be met from Hadla Mine and the Barsingsar Mine. Power Purchase Agreement has been signed with Discoms of Rajasthan. All statutory clearances for both BTPSE and Hadla Mine Project have been obtained. Government of Rajasthan has allocated Mining Lease area of 15.66383 sq.km. It is proposed to implement the above project through EPC mode and the project is expected to be commissioned during the year 2019. The Cumulative expenditure incurred upto 31st March 2015 is Rs. 3.08 crore.

Wind Power Project - 51 MW

Your Company has entered into generation of green energy by setting up a 51 MW Wind Power Project at Kazhuneerkulam, Tirunelveli District, Tamilnadu at a cost of Rs. 347.14 crore. Work order for supply, installation and commissioning of 34 wind turbine generators of 1.5 MW each has been awarded to M/s. Leitwind Shriram Manufacturing Limited, Chennai. The first wind turbine generator was commissioned on 29th August 2014 and so far nine wind turbine generators have been commissioned till July 2015 and the balance is expected to be commissioned during 2015-16. During the year 2014-15, 1.443 MU of power was generated and 1.35 MU was exported to the grid.

Supply and erection of materials for the remaining wind turbine generators are in progress. The project is getting delayed due to slow progress in transfer of lands, supply and erection by the package contractor. The overall physical progress of the project is 60%. The Cumulative expenditure incurred up to 31st March 2015 is Rs. 128.27 crore.

Neyveli Solar Power Project - 10 MW

Members may be aware that your Company is implementing a 10 MW Solar Power Project at Neyveli at a cost of Rs. 77.89 crore in the first phase and it is proposed to install another 15 MW as an expansion in the second phase. Work order has been placed on M/s. BHEL for the first phase of implementation. All the 48000 Solar PV Modules have been received at site. Module mounting structure foundation works has been completed and erection of Solar PV modules is nearing completion. Works in Power Evacuation Sub-Station are also nearing completion. The overall physical progress of the project is 70% as on 30th June 2015. The Project will be commissioned during the year 2015-16. The Cumulative expenditure incurred upto 31st March 2015 is Rs. 30.97 crore.

Barsingsar Solar Power Project - 25 MW

With a view to further harness green energy your Board of Directors of the Company has approved to set up a 25 MW Solar Power Plant at Barsingsar, in the State of Rajasthan, at a sanctioned cost of Rs. 167.29 crore instead of 10 MW Solar Power Project proposed earlier. The project is proposed to be implemented through EPC mode and is scheduled to be commissioned during 2016-17. Work order for technical Consultancy will be issued to M/s.ITCOT, shortly.

Joint Venture Projects

NLC Tamilnadu Power Limited - 2x500 MW

This coal based thermal power project at Tuticorin, Tamil Nadu consisting of two units of 500 MW capacity each is being implemented through NLC Tamilnadu Power Limited (NTPL), a joint venture between your Company and TANGEDCO with equity participation in the ratio of 89:11 at a revised estimated cost of Rs. 6602.74 crore.

Fuel Supply Agreement has been signed with M/s.MCL for the supply of 3.0 MTPA of Coal and in order to meet the shortfall in requirement, a contract has been awarded on M/s. MSTC for supply of 0.864 Million Tonnes of imported coal during the year 2014-15. Unit-I was test synchronised with the Grid on 18 February 2015 and the unit has been declared for commercial operation w.e.f. 18th June 2015. In respect of Unit-II, the unit was synchronised with oil firing of boiler on 9th April 2015 and the unit reached full load operation on 9th July 2015 and the COD of the unit is expected shortly. Financial Closure for the Project has been achieved and your Company as a major Promoter has extended Letter of Comfort to the Lenders for Term Loans availed by NTPL. The Cumulative expenditure incurred upto 31st March 2015 is Rs. 6115.69 crore.

Neyveli Uttar Pradesh Power Limited - 3x660 MW

Your Company is in the process of setting up of 1980 MW (3x660 MW) coal based thermal power project in Ghatampur Tehsil, Kanpur Nagar District in the State of Uttar Pradesh, at an estimated cost of Rs. 14,375 crore. This Joint Venture project is executed by Neyveli Uttar Pradesh Power Limited (NUPPL), a Subsidiary Company, with equity participation of your Company and Uttar Pradesh Rajya Vidyut Utpadan Nigam Limited (UPRVUNL) in the ratio of 51:49.

The Public Investment Board, Government of India has recommended the project proposal to the Cabinet Committee on Economic Affairs for sanction. As per the existing policy of MoE&F, Stage-I forest clearance for the linked coal block is a pre-requisite to consider environmental clearance of the project. Since exploratory drilling works in the allocated coal block could not be carried out due to law & order problems delay was anticipated in obtaining stage-I forest clearance.

In order to expedite getting sanction of Ghatampur Thermal Power Project (GTPS), a revised proposal for using imported coal till commencement of coal production from Pachwara South Coal block was submitted to MoE&F for getting Environmental Clearance (EC). Considering the above and based on the recommendations of the Expert Appraisal Committee, MoE&F has issued EC for GTPS project. GOI sanction for this project is awaited. NUPPL has taken into possession of the entire land of 828 hectares required for the project. Contract for carrying out survey and fixing the pillars around the acquired land has been issued to M/s. Techpro Engineers Private Limited, Kanpur and the work is in progress.

Power Purchase Agreement has been signed with Uttar Pradesh Power Corporation Limited. Government of Uttar Pradesh has accorded sanction for supply of 80 cusecs. of water from the West Allahabad branch canal downstream of Bidhnu Kasba Village for the above project. M/s. RITES has been assigned the work of carrying out the feasibility study for railway siding for the proposed coal based thermal power project.

Short-listing of bidders who have responded to Expression of Interest floated for Steam Generator and Turbine Generator packages and also Balance of Plant Package have been completed. Techno commercial specifications have been issued to the shortlisted bidders for SG and TG and pre-bid discussions with the prospective bidders have been completed.

Coal Blocks

Pachwara South

Ministry of Coal, Government of India has allocated Pachwara South Coal block, in the State of Jharkhand with a total reserve of 305 MT of coal to Neyveli Uttar Pradesh Power Limited (NUPPL), a subsidiary of your Company, to cater to the fuel requirement of the 1980 MW Coal based thermal power project proposed to set up in Ghatampur in the State of Uttar Pradesh. MOC has accorded sanction for the Advance Action Proposal of Rs. 19.45 crore for pre-project related activities. Terms of Reference (TOR) has been issued by MoE&F for preparation of EIA -EMP reports for the Coal block.

The coal block falls partly in the forest lands with tribal settlements and the area is dominated by tribal population and because of which the law & order problems are being encountered. CMPDI the agency who were assigned the job of carrying out exploratory drilling in the area had to suspend their operation due to law & order problems. NUPPL has sought support from the District Revenue and Police authorities of Government of Jharkhand for carrying out the drilling & exploration activities, boundary survey, pillar construction and DGPS for further development of Pachwara South Coal Mine Project. This will enable NUPPL to prepare the Geological Report (GR) and subsequently Mining Plan & Feasibility Report. For obtaining the forestry stage-I clearance for the project Mine, which is a pre-requisite for obtaining Environmental Clearance (EC) for the Thermal Power Project, the GR Mining Plan and FR are essential.

Work order was issued to M/s Total Survey Consultancy, Ranchi for conducting DGPS Survey and the firm has expressed their inability to continue their work citing local law and order problems. NUPPL has proposed to float an EOI inviting proposal from Mine Development Operators (MDO) to carry out the entire Mine development activities.

Jilga—Barpali

Ministry of Coal, Government of India has allocated Jilga-Barpali coal block, in the State of Chhattisgarh with a total reserve of 546 MT jointly to your Company and Chhattisgarh Power Generation Corporation Limited to develop the mine and share the coal resources as per GOI allocation. As per the said allocation, 396 MT of coal from this block was proposed to be utilised for the proposed 4000 MW Sirkali Thermal Power Project, in the State of Tamilnadu. Detailed exploration is being carried out by MECL under MOU of CMPDI and about 43% has been completed. However, as it is found that the coal seams are deep seated in this block and there are nine geological earth faults in this region, it will be very difficult to excavate coal even with underground mining technologies and hence your Company has requested MoC for allocation of alternate coal block instead of Jilga-Barpali for Sirkali Thermal Power Project.

MNH Shakti Limited

Members may be aware, M/s. Mahanadi Coalfields Limited (MCL), NLC & Hindalco formed MNH Shakti Limited, a Joint Venture Company with equity participation of 70:15:15 to implement 20.0 MTPA coal mining project in Talabira in the State of Odisha. The Talabira II & III coal blocks allocated for this purpose have been cancelled pursuant to the judgement dated 25th August 2014 of Hon''ble Supreme Court of India and the coal Mines (Special Provisions) Ordinance 2014 dated 21st October 2014. The JV Company has proposed for the winding up and necessary formalities are being worked out by them.

New Projects Under Formulation

Sirkali Thermal Power Project - 4000 MW

Members may be aware that as part of foraying into other type of fuels for power generation, your Company has proposed to set up a 4000 MW coal based thermal power project, in two phases, at Sirkali, Nagapattinam District in the State of Tamil Nadu. In the first Phase 1980 MW (3x660 MW) is proposed to be set up at an estimated cost of Rs. 14,482 crore. The Board of Directors of your Company has accorded approval for AAP of Rs. 56.52 crore for taking up certain pre-project related activities. Feasibility Report (FR) is under finalisation. Site for locating the power plant has been identified at Thirumullaivasal and action has been initiated for acquisition of land through TN Government and for obtaining clearances from various statutory authorities. LOA has been issued to M/s. Bhagavathi Ana Labs for taking up EIA/EMP studies. Budgetary offers have been obtained for conducting Marine EIA/EMP study and DPR for captive coal jetty for the proposed Sirkali TPS. As stated earlier Ministry of Coal has allocated Jilga-Barpali Coal block in the State of Chhattisgarh with reserve of 396 MT to partly meet the fuel requirement of this project. As explained in view of the technical difficulties to exploit the coal reserves in the allocated block your Company has requested MoC for allocation of alternate coal block instead of Jilga-Barpali for Sirkali Thermal Power Project.

Thermal Power Station-II Second Expansion - 1000 MW with linked Mine-III - 9.0 MTPA

Your Company has proposed to increase the power generating capacity by adding another 1000 MW thermal power plant as the second expansion to the existing TPS-II at Neyveli in the State of Tamil Nadu. A new mine, Mine-III of capacity 9.0 MTPA is proposed to be set up to exploit the mineable lignite reserves of about 380 MT available in the South of the existing Mine-II to meet the fuel requirement of the proposed thermal power plant. Ministry of Power has granted exemption to your Company from tariff based competitive bidding for the above project.

The Board of Directors of your Company has accorded approval for the Advanced Action Proposal (AAP) of Rs. 7.05 crore for Mine-III and Rs. 1.80 crore for the TPS-II Second Expansion for taking up certain pre-project related activities. Action has been initiated to enter Power Purchase Agreement with DISCOMs of Southern States.

Mine-II Augmentation - 15.0 MTPA to 18.75 MTPA

The Board of Directors of your Company has accorded approval for the Advance Action Proposal (AAP) of Rs. 2.65 crore for Mine-II Augmentation in order to take up certain pre-project related activities. The increase in capacity is to meet the additional lignite requirements of linked Thermal Power Stations.

Solar Power Projects

Your Company has given Green Energy Commitment to Ministry of New and Renewable Energy (MNRE), GOI, on the occasion on the first Renewable Energy Global Investors Meet (RE- INVEST) 2015 to develop 101 MW of Renewable Energy Project during the five year period 2015-19. The above commitment is based on the Renewable Energy projects which are presently under implementation viz., Wind Power Project of 51 MW, Neyveli Solar Project of 10 MW, Barsingsar Solar Power Project of 25 MW and the proposed 2nd phase of expansion of 15 MW Solar Power Project to the Neyveli Solar Power Project.

In order to enter in to solar power generation in a major way, the Board of Directors of your Company has accorded ''in-principle'' approval for setting up Solar power projects in the States of Telangana, Tamil Nadu and other States in India, subject to techno-commercial viability. The Government of India has accorded top priority for development of green energy and in this regard it has given guidelines for setting up of solar power parks in various States of India. Your Board of Directors has also accorded ''in-principle'' approval for setting up of solar power projects in the solar power parks developed by various States, subject to techno-commercial viability.

Coal Assets Abroad

Your Company proposes to acquire coal assets abroad in order to ensure availability of fuel for un-interrupted operation of the 1000 MW coal based thermal power plant under implementation by NLC Tamilnadu Power Limited, the subsidiary Company and for the proposed 4000 MW coal based Sirkali Thermal Power Plant. Imported coal to the tune of 2 Million Tonnes initially and 10 Million Tonnes at a later period is required for operation of these coal based thermal power plants.

In this regard, your Company has issued an Expression of Interest for acquiring coal assets abroad and short-listing of the offers received in respect of coal blocks in Mozambique, Indonesia and Australia are in process. Work order was issued to M/s SRK Mining Services (India) Pvt. Ltd., Kolkatta for carrying out the Technical Due Diligence Study of the short-listed Coal blocks and the report from the consultant is under scrutiny.

Acquisition of Power Projects

EOI was floated inviting offers of Coal or Lignite based Thermal Power Plants/Projects of unit capacity 100 MW or above for possible acquisition by your Company. Out of nine offers received, Nagai Power Pvt. Ltd., Nagapattinam in the State of Tamilnadu having a capacity of 2x150 MW has been shortlisted subject to the outcome of technical, financial and legal due diligence studies.

Long-term borrowing & Credit Rating

Your Company has entered into long term funding arrangement of Rs. 2500 crore and Rs. 1250 crore from a consortium of Bankers led by Canara Bank for the Mine-II Expansion linked to TPS-II Expansion project & Barsingsar Mine-cum-Thermal Power project. Your Company has also entered into an agreement with Power Finance Corporation Limited for a term loan of Rs. 3000 crore for the NNTPS project. Both the above borrowings have been rated with the highest credit rating of "AAA/Stable" by ICRA & CRISIL and Brickworks.

Commercial

Billing & Realisation

Your Company has made significant improvement in the realisation of dues from Discoms as all the current dues have been realised within the normal credit period of 60 days from all the customers except Discoms of Rajasthan. The total outstanding dues of the Company as on 31.03.2015 towards power dues were Rs. 2064.52 crore, as against Rs.1985.26 crore as on 31.03.2014. Power over dues, which are dues beyond the permissible limit of 60 days as on 31.03.2015 were Rs. 272.04 crore as against Rs. 920.80 crore as on 31.03.2014.

Rebate Scheme for realisation of dues

With a view to encourage early and full realisation of dues, the Company has formulated a special scheme called "NLC Graded rebate scheme" benefitting the customers for making due payment within 60th day of billing.

One Time waiver of surcharge settlement

Your Company during the last year reached a settlement with TANGEDCO for realisation of surcharge amount and in line with the same, settlement schemes were entered into with the Karnataka-Escoms, Andhra Pradesh- Discoms and Telangana Discoms during the year. Under this scheme, old dues, surcharge and interest amounting to Rs. 276.07 crore has been realised during the current year.

Revised PPA with Discoms

Your Company has signed revised PPA with the Discoms of KSEB, Karnataka-Escoms, Andhra Pradesh- Discoms and Telangana-Discoms during the year, in line with the revised PPA already signed with TANGEDCO incorporating the following payment priority clause for appropriation of receipts from the Discoms in the following order of adjustment :

a) towards late payment of Surcharge

b) towards earlier unpaid bills, including arrear bills if any

c) towards statutory dues like IT, other tax, Royalty on the current bills

d) towards other charges in current monthly bills

Tariff Regulations

Pursuant to CERC Tariff Regulations for the Control period 2014-19 dated 21.02.2014, Tariff petitions for the period 2014-19 for TPS-I, TPS-I Expansion, TPS-II and Barsingsar were filed before CERC on 19.08.2014.

Consequent to MoC Guidelines on 02.01.2015, for fixation of Lignite Transfer Price, Tariff revision petition would be filed before CERC for all power stations for the period 2014-19.

Land Acquisition and R&R Policy

The occurrence of lignite mineral deposits in particular regions makes it necessary for your Company to select the project sites for Mines & pithead Power Stations, only in such specific areas. It necessitates the invoking of law for the acquisition of private property leading to involuntary displacement of people in lignite bearing localities for mining and adjacent strategic locations for stationing the production and service facilities.

Your Company has developed several Resettlement Centres (RCs) in the vicinity of the acquired area and these RCs are provided with good infrastructure facilities and amenities better than those in the original villages and also well connected to the main roads. Your Company has been designing and implementing the R&R Packages for the project affected people with their active participation, combining its long experience in the locality and participatory approaches.

Your Company is following the National Rehabilitation and Resettlement Policy, 2007 for the ongoing projects with certain enhancements, aimed at minimising the adverse impacts of the projects on the affected people and for the benefit of the project affected population.

The R&R measures are being implemented as directed by the R&R Administrator as per the National Rehabilitation and Resettlement Policy, 2007 and benefits include allotment of a plot, cash compensation and training.

New Land Acquisition Act

From 01.01.2014 GoI has enacted New Land Acquisition Act viz. - "Right to Fair Compensation and Transparency in Land Acquisition Rehabilitation and Resettlement Act - 2013". Presently the Government of Tamilnadu acquires land for your Company under the provisions of The Tamil Nadu Acquisition of Land for Industrial Purpose Act, 1997 (Tamil Nadu Act, 10/99).

During the year 2014 the Govt. of Tamil Nadu has passed an amendment Act - "Right to Fair Compensation and Transparency in Land Acquisition Rehabilitation and Resettlement (Tamil Nadu Amendment) Act - 2014 to exclude the above Act of the State Government from the provisions of the Central Act, except the provisions relating to the determination of the compensation and rehabilitation & resettlement. The rules for implementing the Act / amendment are awaited from GoTN.

Research and Development (R&D)

Centre for Applied Research & Development (CARD) is the In-house R&D centre of your Company. CARD has been granted NABL accreditation for chemical and mechanical testing by National Accreditation Board for Testing and Calibration Laboratories (NABL). The accreditation of the laboratory, which is valid for a period of 2 years from December 2013, is based on the international standard ISO/IEC 17025:2005 and meets the principles of ISO 9001 that are relevant to scope of testing services as well as technical competency of the laboratory.

The total R&D expenditure, incurred during the year 2014-15 was Rs. 13.01 crore which is around 1% of PAT for the year 2014-15. CARD has complied with the MoU guidelines with regard to R&D by successfully completing prescribed targets for 2014-15.

Your Company has filed for grant of patent for the following:

1. Your Company and Vector Control Research Centre, Puducherry jointly filed a patent application for "Fly ash based mosquito larvicidal formulations of Bacillus thuringiensis var. israelensis (serotype H14)". The invention is under the Coal S&T project ''Development of fly ash based pesticide''.

2. Your Company and National Institute of Technology, Trichy jointly filed a patent application for "High longevity coatings and alternate material for erosion and corrosion resistance in mining pumps." The invention is under In-House S&T project.

Coal S&T projects:

Corrosion in Specialised Mining Equipment (SME)

CARD has successfully completed the Coal S&T project on corrosion problems in Specialised Mining Equipment (SME) deployed in mines. Laboratory investigations, corrosion/erosion studies and characterisation of samples were completed. Basic corrosion studies and modelling were completed. One of the coating components has been lab tested and evaluated for field application. The coating materials were prepared by CECRI, Karaikudi and coatings were applied in track carriages of SME and the performance of the coating are being evaluated periodically and it is found that there was no change in the coating thickness after application of the material. Consequent to the specialized coating the life of the track carriages in SME is expected to increase by 7 years as against one year in the case of normal paints.

Enhancement of Life of De-watering Pipes

Your Company presently has taken up a project on "Enhancing Life of De-watering Pipes in Coal/Lignite Mines by prevention of Erosion-corrosion with Nano-Crystalline Surface Engineering Treatments" jointly with NIT, Trichy. The main objective of the project is to study the root causes for erosion and corrosion of de-watering pipes in Neyveli Lignite Mines and to develop a coating based on nano-crystalline surface engineering treatments for enhancing life of de-watering pipes.

In-House S&T Projects:

CARD has also carrying out various research works such as delineation of buried sub surface objects and hard bands in open cast mines, studies on synthesis of zeolites from lignite fly ash and its efficiency in cooling water treatment, reclamation of slag dump areas in Mine-II suitable for development of green cover, study on the stabilisation haul roads inside open cast mines and micropetrographic characterisation of Barsingsar lignite seams.

Development of suitable pilot plant for separation of iron from slag generated in Thermal Power Plants-Neyveli

CARD has taken up R&D project for separation of iron ore, unburnt carbon and sand from the bottom slag generated by Thermal Power Stations. The pilot plant for separation of iron from bottom slag has been successfully commissioned during December 2014.

Utilisation of Bottom Ash

CARD has taken up R&D project along with Civil Department for utilisation of bottom ash as replacement for river sand in construction material. An experimental building using bottom ash as substitute for river sand has been constructed and in this building solid blocks have been made using bottom ash and concrete mixture using bottom ash instead of sand to the extent of 50%.

R&D Initiatives:

Your Company has taken up R&D initiatives in the following areas:

1. Upgradation of Brown Coal (UBC) Based Power Generation

Your Company was approached by M/s. Kobe Steel Limited (M/s KSL), a major Steel & Engineering Company in Japan, to undertake a study on "Up-gradation of Brown Coal" (UBC) through a process involving removal of moisture from lignite and to upgrade the lignite into a high calorific value product having reduced CO, emission. In this connection an MOU has been entered into with M/s. KSL for "Setting up a UBC based Pilot Power Generation Plant in Neyveli" at an estimated cost of Rs. 61.62 lakh to be shared equally. M/s.KSL had earlier undertaken a study on UBC of lignite from Neyveli Mines and successfully test fired the lignite pellets in Ultra Super Critical Boilers in Japan.

2. Dynamic Loading of Conveyors

Your Company has signed an MOU with National Institute of Technology, Trichy for taking up a new R&D Project on "Dynamic Loading of Conveyors drive heads in Mines" aimed at energy saving in the operation of conveyors in the Mines as in-house S&T Project.

3. Coldry and Matmor Process

Your Company has also proposed to enter into a tripartite agreement with M/s. National Mineral Development Corporation (NMDC) and M/s. Environmental Clean Technologies Ltd. (ECT), Australia for taking up a feasibility study on setting up a pilot project of Coldry and Matmor process at Neyveli, using lignite instead of coking coal for use in iron ore purification process.

4. Electronification of GWC & Conveyor Systems in Mines

CARD has also proposed to take up a R&D project on Electronification of ground water control and conveyor systems in Mines for electronically monitoring the operation and performance of GWC pumps and conveyors for improving energy efficiency and productivity of these equipment. This project is proposed to be implemented under Coal S&T project funded by Ministry of Coal.

5. Prevention & Analysis on Premature Failure of BWE Track Systems

CARD has proposed to take up a R&D project on prevention & analysis on premature failure of BWE Track Systems used in Lignite/Coal Mines with the aim of reducing the wear and tear of track plates of SME. This project is to be implemented under Coal S&T project funded by Ministry of Coal.

Silica Sand Beneficiation Plant

Your Company proposes to establish a silica sand beneficiation plant for producing value added silica sand, which is a main raw material for manufacture of glass from the sand available in mines. A consultant has been appointed for preparation of feasibility report for this project.

Human Resource Management

Human Resource

Your Company believes that employees are the primary source of competitiveness and it is necessary to enrich the quality of life of its employees and maximise the productivity. Your organisation promotes adherence to value based culture, encourages/creates an atmosphere of continual learning and competency building. The organisation has reached its current levels through employee commitment, innovation and strong sense of belongingness to the organisation. For a sustainable growth, leadership and competency development continued to be the focus area for the organisation. The total manpower of your Company as on 31st March 2015 was 16,445.

Employee Development

Your Company continues to promote Training / Learning initiatives for skill, competency building and overall development of employees and surrounding society. As part of Leadership Development Programme, 400 executives were imparted training through Development Centre Initiatives programme in 2014-15. Also as part of the above initiative , Senior Executives were deputed to IIM, Kozhikode for enhancing their leadership competencies. Learning and Development Centre (L&DC) of your Company organised programme which included Mentorship Development Programme, Workers'' Education Scheme, Advanced Management Programme, Quality Control Programme etc., besides Apprenticeship Training Programme and other special programme. L&DC plays a main role in the development of multi skilling & skill upgradation of Non Executives. During the year L&DC imparted training covering, 15,252 employees. With a view to benefit the society at large your Company had conducted Entrepreneurial Development Programme, Programme for Student Community and Environmental Programme benefitting around 9000 people.

Industrial Relations

Thrust on participative culture continued during the year under review and the Industrial Relations in various Units and Service Divisions of your Company remained harmonious and cordial but for Contract Labour Strike, which was subsequently resolved. The executives and employees were committed towards the growth of your Company. Discussions and negotiations are in process with the recognized Unions through the conciliation process as per the provisions of Industrial Disputes Act, to arrive at a mutually agreed settlement for revising the wage structure of Unionised categories of employees.

Implementation of Official Language Policy

Your Company continued to promote official language implementation in line with Government of India''s policy and the provisions prescribed under the Official Languages Act, 1963. Employees are encouraged to undertake Hindi courses and 681 employees have been enrolled for correspondence as well as full time courses like Prabodh, Praveen and Pragya.

Hindi Fortnight was organised between 15th September 2014 and 29th September 2014 and Hindi competitions were conducted among employees. Cash Awards and Merit certificates were given to those employees who passed Hindi examinations and to the winners in the competitions.

Reservation of Posts

Your Company has been following the rules of the Government with regard to reservation for SC and ST and the details of Group-wise Men-in-Position as on 31.03.2015 is as under:-

M I P

Group Total Strength Total SC ST SC/ST

A 3,989 825 280 1,105

B 288 61 14 75

C 10,805 2,103 103 2,206

D 1,363 311 2 313

Total 16,445 3,300 399 3,699

Group % of SC/ST Total SC ST SC/ST

A 20.68 7.02 27.70

B 21.18 4.86 26.04

C 19.46 0.95 20.42

D 22.82 0.15 22.96

Total 20.07 2.43 22.49

e-Governance

Your Company has taken up various e-Governance initiatives which include Online Material Management System (OLIMMS), Primavera for Project Management, Mining Equipment Maintenance Management System (MEMMS), Financial Accounting System (FAS), Attendance Monitoring System, Personnel Information and Payroll Accounting System (PIPAS), Activity Based Cost Management System, Vendor Payment System, Information Monitoring System, Engineering Management System etc. Besides the above, your Company is also in the process of implementation of SAP based FICO and HCM modules, Contract Management System, Information Monitoring System.

Environment Management & Sustainable Development Projects

Your Company continues to practice the best environment management and eco conservation measures. Environment Policy with emphasis on clean and green environment is in place and your Company continues to comply with regulatory requirement and other environmental clearance conditions. All the Mines and Thermal Units at Neyveli are accredited with Environment Management Standards of ISO 14001 and Occupational Health and Safety Assessment (OHSAS) 18001.

Reclamation of mined out land with an objective to make it again cultivable and conserve ecosystem is scrupulously carried out in all the operational mines of your Company. During the year 2014-15, 96.42 hectares of land has been reclaimed in all the mines in Neyveli. Slope stabilisation in mines dumping area is also carried out by planting and developing thick green belt which in turn preserves the environment. Also green cover is established in the Industrial units and as well as in the Township by planting more than two lakh trees to maintain the ecological balance.

Members may be aware usage of plastic carry bags has been banned in Neyveli Township area and your Company is also operating a plastic recycle plant wherein waste plastic is converted into tar for use in road formation.

In pursuit of India''s commitment to act early towards climate change, your Company has taken up collaborative studies with Pondicherry Engineering College on "Sequestration of CO2 and production of Bio-Fuel from flue gas of Thermal Power Plants" and in this regard a 100 litre capacity laboratory scale Photobioreactor (PBR) has been installed. It is also proposed to install a 1000 litre capacity pilot scale PBR in TPS-I Expansion.

Your Company is presently disposing the fly ash through supplies to the cement and the brick manufacturing Companies through e-auction besides using in its pre casting yards for manufacture of bricks for its internal use.

Water Conservation and Water Pollution Control

Much emphasis is given by your Company towards conservation of water. As a measure of conservation, a modern water treatment plant of 8000 GPM capacity is in operation to treat storm water from Mine-I for supply to Township for domestic purpose. Also 15000 GPM water of Mine-II storm water is treated and used in TPS-II and TPS-II Expn., which has greatly reduced the ground water pumping. A modern sewage treatment plant of 30 MLD capacity treats the sewage of entire township and part of industrial sewage where the treated water is utilised by the surrounding villages for agricultural purposes. Effluent treatment plants installed in all industrial canteen and waste water from industrial units are also treated in the ETP which is used for gardening and cleaning purposes. The effluents generated from Thermal and Mining Units are regularly monitored by TNPCB and no abnormalities reported. Besides on-line monitoring of effluent flow and quality has been introduced in the Thermal Station-I Expansion and TPS-II.

Air Pollution Control

Your Company takes care of air pollution by dust suppression measures in Mines. Electro Static Precipitators (ESPs) have been installed in all power plants to remove the ash particles from outgoing flue gas. Also stack height of power plants is maintained as per prescribed norms for effective dispersal of Sox and Nox to wider range. To monitor the pollution in the stack, online SPM and gas analysers have been installed. Ambient Air Quality (AAQ) Monitoring is carried out through continuous ambient air quality station and 13 manual stations. The on-line stack emission and AAQ data are uploaded to Centre for Real-time Monitoring (CARE AIR Centre) of Tamil Nadu Pollution Control Board.

Safety

Your Company advocates highest priority towards industrial safety. Risk Assessment and Safety Audits were conducted for Mines and Thermal Power Stations in regular periodicity by engaging accredited external agency. The recommendations submitted by the external agency are being implemented. Safety related trainings like basic, refresher, on the job, are being imparted to all sections of employees in a well designed training centres like Group Vocational Training Centre in Mines, Thermal Training Centre and Learning and Development Centre. Safety awareness among the employees and contract workmen has been increased. Your Company achieved zero accident potential during the year 2014 -2015 at Barsingsar Mine, Thermal Power Station-II and Thermal Power Station-I Expansion.

Risk Management

In order to identify those threats to business and to create ways to reduce their impact, your Company has approved a Risk Management Policy. As per the policy the risks are classified broadly into three categories, viz., Strategic risks, Business Risks and Operational Risks and further categorised based on their impact and the frequency.

Your Company has so far identified 51 risk elements. Based on the assessment, 20 of them have been prioritised for review. Their mitigation plans and the implementations are reviewed by the Risk Management Committee, Audit Committee and by the Board, bi-annually. At present, there are no major risk elements, which may threaten the existence of the Company.

Your Company has developed a comprehensive Integrated Risk Management (IRM) framework and under the framework, Risk Management is practiced in all the units and the possible risks associated with its business are identified and mitigation plans are evolved. Risk Management Committee and the Board of Directors of your Company review the identification of risks and mitigation procedure on a periodical basis.

The organisational structure for risk management is as under:

Vigilance

Having a main focus on the pro-active, preventive and participative vigilance activities, Vigilance Department conducted surprise checks, regular checks, CTE type checks, quality checks and follow up checks resulting in various system improvements and streamlining the procedural lapses.

On the initiative of Vigilance Department, various IT based systems viz., Online TA bills submission, Annual Property Returns, Web based MIS, Detailed Engg. Mgt System, Online SME Erection in addition to publishing of Tenders in the Company website and CPPP, SOP for recruitment, installing surveillance camera at vulnerable locations, e-auction & e-procurement to bring out more transparency and efficiency in the system have been introduced.

The Vigilance Department is the first to introduce a unique "Online Vigilance Clearance-OVC" system with the facility of knowing the file status by the concerned employee and Online Complaint Tracking System for speedy disposal of complaints to enhance the public perception. Vigilance Department has undertaken various other measures like hosting key information in Company website, providing feedback to the genuine complainant after investigation, getting feedback from people through various interactive programme, ensuring appropriate action against the guilty and protecting the innocent etc. A book has also been published by the Vigilance Branch titled "Lessons from Vigilance cases" citing various past cases, for the benefit of user departments. The Contract manual has been updated by the Management and the Purchase Manual & HR Manual are under review for updation.

Annual Book fair and Safety week programme were used as a platform to spread vigilance awareness among the stakeholders. Vigilance Department has introduced "Ethical Awareness" programme to inculcate ethical values to the school children in Neyveli township covering 1300 children in 15 schools.

The Vigilance Department besides conducting classes has taken up customised/tailor made programme so as to reduce the knowledge gap among the employees.

Vigilance Department has been awarded with the prestigious "Corporate Vigilance Excellence Award-2015" by the Institute of Public Enterprises, Hyderabad.

MOU with Transparency International

Your Company has signed a Memorandum of Understanding with Transparency International India, part of Asia Pacific forum comprising 20 nations. Transparency International India is the Indian chapter of Transparency International, based at Berlin.

Township

Neyveli Township established in February 1959 has grown into a self-contained unit with all facilities. It has a total population of about 1,35,000 and spread over 50.Sq.Kms. The Township is provided with all facilities that include Schools, College, sophisticated General Hospital, Central Library, Swimming Pools, Auditorium, Stadium, Community Welfare Centers, Recreation Clubs, Reading Rooms, Parks, Banks, Shopping complexes, Offices of Government Agencies and about 21,277 residential quarters. Township with similar facilities has also been established in Barsingsar.

Medical Services

Your Company maintains a 350 bedded General Hospital at Neyveli that takes care of the health and medical care needs of its regular employees, contract workmen and their eligible dependents.

The Medical Care Delivery system in operation involves full care cycle encompassing the entire range of monitoring, diagnosing, treating and managing medical conditions across various disciplines. The broad service lines of the hospital could be fragmented into General Medicine, General Surgery, Paediatrics, Obstetrics & Gynaecology, Ophthalmology, Orthopaedics, ENT, Dermatology, Chest Medicine and Psychiatry. Renal care, Diabetology, Neonatal and Intensive Care constitute the top line services of the General Hospital.

During 2014-15, 7.56 lakh patients were treated in the out-patient department and 15264 patients were treated in the various Medical, Surgical, Paediatrics and Maternity wards. The General Hospital had organised Family Planning Services, Revised National Tuberculosis Control Programme, National Leprosy Control Programme, AIDS Screening and Control Programme as a part of National Health Programme. General Hospital implements weekly Universal Immunisation Programme in collaboration with the State Health Machinery and administered medicines to protect against viral and bacterial diseases. The hospital continues to implement National Leprosy Eradication Programme as old leprosy cases are followed up at the weekly run in co-ordination with State government personnel and in collaboration with the Tamil Nadu State Aids Control Society plays a lead role in early detection, treatment and management of HIV cases in this region with excellent medical results.

Corporate Social Responsibility (CSR)

* Your Company, as a socially responsible corporate citizen, continues to carry out development works in the surrounding villages, right from its inception, focusing on the socio economic development of the operating regions for achieving inclusive growth.

* In the Year 2014-15, your Company has adopted a new Corporate Social Responsibility Policy covering the various sectors of sustainable socioeconomic development. The Policy is available in the Company''s Website: http://www.nlcindia.com/csr/Board Noted CSR Policy NLC 2014.pdf

* Your Company outlays funds for the CSR projects, programme and activities selected for implementation under the CSR Policy.

* The CSR Committee of the Board is monitoring the implementation of the CSR Projects. The Board of Directors reviews the same and ensures that your Company spends, in every financial year, at least 2% of the average net profits of the Company for the last three years.

* Timeframes and milestones are fixed through Baseline Survey before commencement of the CSR Projects.

* Initiatives of State/Central Government Departments/Agencies are dovetailed/ synergised with the CSR Activities of NLC.

The CSR expenditure of your Company for the year 2014-15 is Rs. 47.49 crore. The manner in which the amount was spent is given in the prescribed format.

The major CSR initiatives undertaken during the year 2014-15 are given below:-

CSR - Peripheral

Members may be aware that a structured system is in operation for executing capital works for developing social infrastructure and building Sustainable Community Assets to benefit the villages surrounding Neyveli in Tamil Nadu and Barsingsar in Rajasthan State. Under this scheme, infrastructure development works like drinking water facility by sinking/maintaining the bore-wells, constructing RCC water tanks, providing roads & access, additional school buildings, laboratories, libraries, bridges, additional Infrastructure for primary health centres, developing medical facilities, de-silting of lakes etc., are being carried out on the basis of needs and priorities. Various works have been carried out during the year under review for the benefit of the population in the areas surrounding the operating localities. This includes the "Walajah Lake De-silting" Project undertaken in Karaimedu Hamlet near Neyveli, by which water holding capacity for irrigation has been increased by about 22.75 lakh Cubic meter, providing direct irrigation to about 11,500 acres of land and benefiting about 60 villages in the region. Continuous supply of water to nearby villages for irrigating over 23,000 acres of land is also continued in the Neyveli region.

Your Company also provides access to the social facilities of the Company''s Townships to the public in the surrounding areas.

CSR - Community

Your Company continues to extend all assistance including grant and infrastructure to Sneha Opportunity Services at Neyveli to run a day care, education and training centre for special children of the region.

Neyveli Health Promotion and Social Welfare Society patronised by your Company has been serving the society by supplying artificial limbs/calipers to the differently-abled, apart from running a school for the hearing impaired and a Computer Centre, imparting training for physically challenged, widows and destitute and gainfully employing them.

During the year 2014-15, CSR focused Training programme were organised for the benefit of the students, teachers and the population of Neyveli locality, in which 4,463 persons participated. 165 women from various peripheral villages were trained Light Motor Vehicle Driving, Tailoring and Beautician Trades. 290 men from various peripheral villages were trained in Operation & Maintenance of Light Motor Vehicles, Heavy Transport Vehicles, Earth Moving Equipment Operation and Vulcanising.

Your Company has contributed Rs. 405 lakh during the year 2014-15, towards the Relief and Rehabilitation of areas affected by Disasters in the States of Andhra Pradesh, Odisha and Jammu & Kashmir.

CSR - Education

Your Company offers best education through its 10 schools - 3 Higher Secondary Schools, 2 High Schools, 3 Middle Schools and 2 Elementary Schools to the students from surrounding villages and also to the wards of employees. During the year under review, the students'' strength in these 10 schools was 6,515.

Your Company has imparted Motivational and Exam-Skills training in the year to 2,184 girls and 1,541 boys of X and XII Standards in Neyveli and 14 peripheral village schools.

Your Company provides infrastructural support and also periodical financial support to Rajiv Gandhi Education Society, Barsingsar for providing quality education and technical training to the children of villages around your Company''s project-sites in addition to the Jawahar Education Society at Neyveli.

The establishment of an Industrial Training Institute in Barsingsar village was completed by your Company in the year 2012-13. NCVT approved Courses in Horticulture and Electrician trades have commenced from October 2012 and Fitter and Welder trades have commenced from October 2013. During the year, 166 students have been imparted Industrial / Technical Training in these trades.

CSR - Health

Your Company provides quality medical treatment and occupational health service through its General Hospital to all inhabitants of the Neyveli Township and its surrounding villages, including comprehensive medical treatment to the Contract Workmen and their family members.

During the year 2014-15:

* Free medical consultation with minimum anti-biotic therapy and vitamins was extended in 86921 instances to out-patients from the rural public. 32574 patients were given emergency treatment for various causes. Community Health Screening for diabetes, Hypertension and HIV covering 12,473 persons during the Annual Book Fair and Safety Week Celebration was carried out and counselled for behavioural change.

* 12 medical camps were conducted in peripheral villages located in the area surrounding Neyveli Township in Cuddalore District. 4,962 persons of these 12 villages were screened and given medical advice and medicines through the camps. During the camps, 713 Random Blood Sugar Tests were taken, 239 Electro Cardio Grams were generated and 439 persons were provided with vision glasses. 933 patients were referred for inpatient treatment of which 428 persons underwent the inpatient treatment.

From February 2013 onwards, your Company is providing nutritious food supplement to the HIV affected children belonging to the Cuddalore District HIV Positive Society, Cuddalore. 285 such children were provided with food supplements during the year 2014-15.

During the year 2013-14, your Company has instituted the "NLC Chair on CSR" with Institute of Public Enterprise, Hyderabad. The second and final installment of Rs. 100 lakh has been provided for the same as corpus, in the year 2014-15.

In addition to the above, the details on specific Corporate Social Responsibility projects undertaken in compliance with Section 135 of the Companies Act, 2013 are placed as Annexure -1.

ISO Certification

Your Company''s Mines and Thermal Power Stations at Neyveli are certified with ISO 9001, ISO 14001 and OHSAS 18001 by reputed agencies for their sound systems and practices. In addition to the above, the Contracts Department, Learning and Development Centre and the Vigilance Department have been certified under ISO 9001.

Contribution to the cause of women

Your Company''s human resource is represented by 7.5% of Women employees. Programme on women empowerment were organised during the year under review. Your Company actively participated and deputed women employees for the programme organised by "Women in Public Sector" (WIPS) under the aegis of SCOPE.

Visit of Parliamentary Committees

During the year the following Parliamentary Committees had visited your Company:

a. Committee on Welfare of Other Backward Classes.

b. Committee on official language.

Awards & Recognition

Awards received by your Company during the year 2014-15 are given below:

* IME Journal Innovation Award instituted by Indian Mining and Engineering Journal for using State-of-the-art Mining Technology with effective CSR & Environment Management.

* Productivity Award instituted by World Academy of Productivity Science (WAPS).

* Greentech Gold Award 2014 instituted by Greentech Foundation for the best safety performance of TPS-II.

* National Award instituted by ''Governance Now'' for Best HR Practices (Training).

* National Energy Conservation Award -2014 for Mine-I instituted by Bureau of Energy Efficiency.

* IE (I) Industry Excellence Award 2014, instituted by Institution of Engineers (India).

* First Prize in the category of Best Public Sector Undertaking Unit implementing Right to Information Act, Instituted by Public Relation Society of India (PRSI).

* Green Rating Project (GRP) Award, instituted by the Centre for Science & Environment for Barsingsar TPS and TPS-II, Neyveli.

Business Responsibility Report (BRR)

The Business Responsibility Report (BRR) for the year 2014-15, covering the initiatives taken by the Company from an environmental, social and governance perspective forms part of this Annual Report 2014-15.

Compliance under Persons with Disabilities Act, 1995

Your Company ensures compliance of provisions under the Persons with Disabilities Act, 1995. Suitable arrangements/modifications are made in the working place to meet the requirements of persons with disability.

Compliance under the Right to Information Act, 2005

Your Company ensures compliance under the Right to Information Act, 2005. 18 Central Assistant Public Information Officers representing different functional areas, one Nodal Officer, one Central Public Information Officer, two Appellate Authorities and one Transparency Officer have been nominated to attend to the queries and appeals received under the RTI Act in a time bound manner.

During the year 2014-15, under the above Act, 307 applications containing 1443 queries were received and 268 applications covering 1134 queries have been replied.

Compliance under Public Procurement Policy

The Ministry of Micro, Small and Medium Enterprises has notified the Public Procurement Policy and in terms of the said notification, an annual target for procurement from MSE was set for the three years beginning from the FY 2012-13. The target set for the FY 2014-15 for procurement of such items which are within the scope of MSEs was 20% and as against the same the achievement was 23.19%.

Citizen''s Charter

Your Company maintains Citizen''s Charter, indicating details of clients, customers under different heads, system of redressal of grievance etc., and the same is regularly updated.

Conservation of Energy, Technology absorption and Foreign Exchange Earnings and outgo

The particulars required under Section 134 (3) (m) of the Companies Act, 2013 regarding conservation of energy, technology absorption and Foreign exchange earnings and outgo are furnished in Annexure-2.

Management Discussion & Analysis Report and Report on Corporate Governance

The Management Discussion & Analysis Report is furnished in Annexure-3. The report on Corporate Governance on the compliance of Corporate Governance conditions stipulated by Clause-49 of the Listing Agreement and the DPE guidelines is furnished in Annexure-4.

The Auditor''s certificate on the compliance of the above Corporate Governance conditions is furnished in Annexure-5.

Statutory Disclosures Under Companies Act, 2013 and Listing Agreement

Extract of Annual Return

The extract of Annual return in terms of Section 134(3) read with 92(3) of the Companies Act, 2013 is placed as Annexure-6.

Particulars of Employees

Particulars of Employees as required under Rule 5(2) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014 - Nil.

Loans, Guarantees and Investments

During the year 2014-15, your Company had subscribed to the equity share capital for an amount of Rs. 197.94 crore and Rs. 47.43 crore in NTPL and NUPPL, respectively. As on 31st March 2015 the share capital held by your Company in NTPL and NUPPL is Rs. 1508.02 crore and Rs. 47.48 crore, respectively. Your Company during the year 2013-14 had entered into a loan agreement with NTPL, the Subsidiary Company, to provide bridge loan of Rs. 1184.92 crore for implementation of its Thermal Power Project at Tuticorin for a period of 364 days at an interest rate of 10.86%. This arrangement was done in order to enable NTPL to get long term loan at a favourable interest rate post-commissioning of the project. As per the terms and conditions of the above loan agreement, during the year an amount of Rs. 980.52 crore was funded and NTPL has repaid Rs. 204.40 crore during the year. Besides the above, your Company has not granted any loan or guarantee or done any investments (other than short term deposits with the Bank in the ordinary course of business) during the year 2014-15.

Transfer to Reserves

During the year 2014-15, Rs.160 crore has been transferred to general reserves.

Deposits

The Company has not accepted any deposit from public.

Status of unclaimed share certificates in terms of Clause 5A II of the Listing Agreement

There were 1100 equity shares pertaining to 6 Shareholders lying unclaimed as on 01.04.2014. During the year 2014-15, no claim was received from any of the above shareholders.

Material Changes affecting financial position occurring between the date of Financial Statement and Directors Report

The final order from CERC for Barsingsar Thermal Power Station was received on 10.07.2015 for the period from COD to 31.03.2014. This has the effect of reducing the sale of power. Based on the legal opinion a review petition has been filed before CERC.

Sexual harassment of women at workplace

A separate Committee has been constituted for looking into the complaints relating to sexual Harassment of women at workplace. During the year 2014-15, no complaint was received in this regard.

Auditors

Statutory Audit

M/s.Sreedhar, Suresh and Rajagopalan, Chartered Accountants and M/s.P.B.Vijayaraghavan & Co., Chartered Accountants, Chennai, were appointed by the Comptroller and Auditor General of India (C&AG) as Joint Statutory Auditors for the year 2014-15 under Section 139 of the Companies Act, 2013. The Board of Directors of your Company has fixed Rs. 18 lakh plus applicable service tax as the Statutory Audit fees, to be shared equally by the Joint Statutory Auditors.

Branch Audit

M/s. Surender K Goyal & Co., Chartered Accountants, Jaipur, has been appointed as the Branch Auditor for the year 2014-15 by C&AG for conducting the audit of Mine and Thermal Units at Barsingsar.

Secretarial Audit

Shri. R. Balasubramaniam, Pracitising Company Secretary, Chennai, was appointed as the Secretarial Auditor for the year 2014-15. The Secretarial Audit report for the year 2014-15 and the reply to observations of the Secretarial Auditor are furnished in Annexure-7.

Cost Audit

M/s.M. Krishnaswamy & Associates, Cost Accountants, Chennai, were appointed as the Cost Auditor for the year 2014-15, to conduct cost audit for Mines & Power Stations of the Company.

M/s.Srinivasan, Sundaram & Associates, Cost Accountants, Chennai, were originally appointed as the Cost Auditor for the year 2013-14 and since the said firm failed to file the audit report with the Ministry of Corporate Affairs (MCA) within the due date i.e., 27.09.2014, extension of time up to 31.01.2015 was obtained from MCA to file the report. M/s.M. Krishnaswamy & Associates, Cost Accountants, Chennai were appointed as the Cost Auditor for conducting Cost Audit for the year 2013-14 and the Cost Audit Report was filed with MCA on 31.01.2015.

C&AG''s Comments

C&AG''s Comments on the accounts for the year ended 31st March, 2015 is furnished in Annexure-8.

Directors'' Responsibility Statement as per Section 134(3)(c) of the Companies Act, 2013

The Board of Directors declares:-

a. that in the preparation of the annual accounts, the applicable accounting standards had been followed along with proper explanation relating to material departures;

b. that the Directors had selected such accounting policies and applied them consistently and made judgments and estimates that are reasonable and prudent so as to give a true and fair view of the state of affairs of the Company at the end of the financial year and of the profit of the Company for that period;

c. that the Directors had taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions of the Companies Act for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities;

d. that the Directors had prepared the annual accounts on a going concern basis.

e. the Directors had laid down internal financial controls to be followed by the Company and that such internal financial controls are adequate and were operating effectively.

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

Board of Directors

Shri. M.S. Ravindranath relinquished the position as a Director on 30.08.2014 on attaining the age of superannuation.

Shri. C. Balakrishnan and Dr. S G Dhande, Non-official part-time Directors resigned from the Board with effect from 24.09.2014.

Shri. Subir Das, Director (Mines) was inducted into the Board w.e.f. 30.09.2014.

Dr. A.K. Dubey, Additional Secretary to the Government of India, Ministry of Coal, relinquished the office of Directorship with effect from 11.06.2015. Smt. Sujata Prasad, Joint Secretary & Financial Advisor, Ministry of Coal has been inducted into the Board as an Additional Director w.e.f. 11.06.2015.

Shri C.V. Sankar, Additional Chief Secretary to Government of Tamilnadu, Industrial Department resigned from the Board w.e.f. 29.06.2015.

Shri Rajesh Lakhoni, Secretary to Government of Tamilnadu, Energy Department, has been inducted into the Board as an Additional Director w.e.f. 15.07.2015.

The Board places on record its appreciation for the valuable contribution made by Sarvashri M.S. Ravindranath, C. Balakrishnan, Dr. S.G. Dhande, Dr. A.K. Dubey and C.V. Sankar during their tenure as Directors on the Board of the Company.

Shri. Sarat Kumar Acharya, Director retire by rotation at the forthcoming Annual General Meeting and being eligible offers himself for re-election.

Acknowledgement

The Board of Directors of your Company places on record its sincere appreciation for the continued support and guidance extended by the Ministry of Coal, Ministry of Power, Ministry of Finance, Ministry of Environment & Forest, Ministry of Industry, Ministry of Labour, Ministry of Heavy Industries, Planning Commission, Central Electricity Authority, Central Electricity Regulatory Commission, State Electricity Boards and beneficiaries of Tamil Nadu, Andhra Pradesh, Telangana, Karnataka, Kerala, Puducherry and Rajasthan and also the Joint Venture Partners, viz., Tamil Nadu Generation and Distribution Corporation Limited (TANGEDCO), Uttar Pradesh Rajya Vidyut Utpadan Nigam Limited (UPRVUNL), Mahanadi Coalfields Limited (MCL) and Hindalco.

The Board of Directors of your Company is pleased to acknowledge with gratitude the co-operation and continued support extended by the Governments of Tamil Nadu & Rajasthan and the District Administration of Cuddalore and Bikaner. The support and co-operation by the Comptroller and Auditor General of India, the Statutory Auditors, Branch Auditor, Cost Auditor, Secretarial Auditor, Director General of Mines Safety, the Factory & Boiler Inspectorates, Chief Inspector of Factories, the Director of Boilers, Central Pollution Control Board, State Pollution Control Board, Chief Controller of Explosives, Regional Labour Commissioner, Regional Provident Fund Commissioner, the Company''s Bankers and KfW of Germany need special mention and the Directors acknowledge the same.

Your Directors also wish to place on record their appreciation for the dedicated work put forth by the employees at all levels. The positive role played by the recognised Trade Unions and Associations of the Engineers and Officers in maintaining cordial industrial relations deserves special mention.

for and on behalf of the Board of Directors

Place : Chennai B. SURENDER MOHAN Date : 07.08.2015 CHAIRMAN-CUM-MANAGING DIRECTOR

---

Mar 31, 2014

The Members,

Neyveli Lignite Corporation Limited

The Directors are pleased to present the 58th Annual Report of your Company together with the audited accounts for the year ended 31st March 2014.

Performance 2013-14

Year in retrospect

The year 2013-14 was a year of excellence in all fronts once again and your Company scaled new heights in physical and financial achievements.

Highlights - Physical

Overburden removal from all Mines put together at 1681.72 LM3 is the highest for any year since inception.

Lignite production from all Mines put together at 266.09 LT is the highest for any year since inception.

Power Generation and export from all thermal power stations put together at 19988.65 MU and 16956.40 MU respectively are the highest for any year since inception.

Lignite production of 15.53 LT and power generation of 1438.24 MU from Barsingsar Mine and power plant are the highest for any year since inception.

Highlights - Financial

The total sales of Rs.5967.23 crore is the highest for any year since inception.

The Profit Before Tax (PBT) and the Profit After Tax (PAT) for the year 2013-14 of Rs.2209.13 crore and Rs.1501.88 crore respectively are the highest for any year since inception.

Segment-wise Performance

Mines

The mining capacity of your Company is 30.60 MTPA as on 31st March 2014. During the year 2013-14 your Company achieved the highest ever performance in Overburden (OB) removal and Lignite production. The total OB removal and Lignite production stood at 1681.72 LM3 (1674.85 LM3 in 2012-13) and 266.09 LT (262.23 LT in 2012-13) registering a growth of 0.41% and 1.47% respectively.

Mine-I (including expansion)

The capacity of this Mine is 10.5 MTPA. This Mine recorded 563.39 LM3 of overburden removal during the year 2013-14 as against 502.15 LM3 registered during the previous year 2012-13 recording a growth of 12.20%. Lignite production during the year was 90.03 LT as against 79.60 LT during the previous year registering a growth of 13.10%.

Mine-IA

The capacity of this Mine is 3.0 MTPA. During the year 2013-14, the overburden removal was 279.15 LM3 as against 281.81 LM3 registered during the previous year 2012-13. Lignite production during the year was 30.01 LT as against 29.40 LT during the previous year 2012-13 registering a growth of 2.07%.

Mine-II (including expansion)

The capacity of this Mine is 15.0 MTPA. During the year 2013-14, the overburden removal was 772.93 LM3 as against 813.36 LM3 registered during the previous year 2012-13. Lignite production during the year was 130.52 LT as against 139.44 LT in the previous year 2012-13. Growth could not be registered due to breakdown in the conveyor systems & SMEs. However, it was ensured that the lignite was produced and maintained upto the maximum capacity of the stock yard almost throughout the year.

Barsingsar Mine

The capacity of this Mine is 2.1 MTPA. During the year 2013-14, overburden removal was 66.25 LM3 as against 77.53 LM3 registered during the previous year 2012-13. Lignite production during the year was 15.53 LT as against 13.79 LT in the previous year 2012-13 registering a growth of 12.62%. Overburden removal was restricted as sufficient quantity of lignite had already been exposed.

Output per Man shift

The output per man shift during the year 2013-14 compared with the previous year 2012-13 is given below:-

Product Unit 2013-14 2012-13 Growth (%)

Lignite Tonne 12.64 11.97 5.60

Power

The total generation capacity of thermal power stations of your Company was 2740 MW as on 31st March 2014. Your Company has surpassed the previous year generation and achieved all time high in power generation and export during the year under review. The aggregate power generation during the year 2013-14 was 19988.65 MU (19902.34 MU in 2012-13) and the export during the year 2013-14 was 16956.40 MU (16841.51 MU in 2012-13) with a growth of 0.43% and 0.68% respectively. The power generation could have been still higher, but for the surrendering of power by the beneficiary States to the extent of about 288 MU.

Thermal Power Station-I

The installed capacity of this thermal power station is 600 MW. Generation of power during the year 2013-14 was 4058.14 MU as against 4035.43 MU in 2012-13. During the year under review 3277.22 MU was exported to TANGEDCO, the sole beneficiary, as against 3215.98 MU during the previous year 2012-13. Power generation and export of power registered a growth of 0.56% and 1.90% respectively and this Station achieved a Plant Load Factor (PLF) of 77.22% during the year under review. Major overhaul & Residual Life Assessment (RLA) study works were carried out in Unit-III and annual maintenance works were carried out in all other units.

Thermal Power Station-I Expansion

The installed capacity of this thermal power station is 420 MW. During the year 2013-14, the power generation from this station was 3292.10 MU as against 3319.77 MU in 2012-13 and 3013.59 MU was exported as against 3035.58 MU during the previous year 2012-13. The Station achieved a PLF of 89.48%. Annual maintenance works were carried out in both the units during the year under review.

Thermal Power Station-II

The installed capacity of this thermal power station is 1470 MW. During the year 2013-14, power generation was 11179.16 MU as against 11238.09 MU in the year 2012-13. Export of Power to the Southern Grid during 2013-14 was 9399.53 MU as against 9455.81 MU during the previous year 2012-13. This Station achieved a PLF of 86.81% during the year under review. Major overhaul was carried out in Unit-I & Unit-V and annual maintenance works were carried out in all other units during the year.

Barsingsar Thermal Power Station

The installed capacity of this thermal power station is 250 MW. During the year 2013-14, power generation was 1438.24 MU as against 1280.85 MU during the previous year 2012-13 and 1253.03 MU of power was exported to the grid as against 1114.33 MU during the previous year 2012-13. This Station achieved a PLF of 65.66% during the year under review. Annual maintenance works were carried out in both the units during the year.

Productivity

The output per man shift during the year 2013-14 compared with the previous year 2012-13 is given below:-

Product Unit 2013-14 2012-13 Growth (%)

Power Kwh 22222 21386 3.91

Financial Performance

During the year ended 31st March, 2014, the Company registered a total sales of Rs.5967.23 crore as against Rs.5590.07 crore recorded in the year 2012-13, registering a growth of 6.75%. The sales registered for the year 2013-14 was the highest ever since inception.

The Profit Before Tax (PBT) and the Profit After Tax (PAT) for the year 2013-14 were Rs.2209.13 crore and Rs.1501.88 crore, respectively, as against Rs.2047.65 crore and Rs.1459.75 crore, respectively, registered in the year 2012-13. As compared to the previous year 2012-13, the PBT and the PAT for the year 2013-14 recorded a growth of 7.89% and 2.89%, respectively. The PBT and the PAT for the year ended 31st March, 2014 were the highest for any year since inception.

The reason for increase in the profit for the year 2013-14 was on account of higher sales consequent to increased lignite production, generation and export of power.

The details of profit earned for the financial year 2013-14 and appropriation of the same in comparison with the previous year 2012-13 are as under:

(Rs. in crore)

2013-14 2012-13

Profit Before Tax 2209.13 2047.65

Tax provision 707.25 587.90

Profit After Tax 1501.88 1459.75

Appropriation :

Transfer to

Bond Redemption Reserve 15.00 15.00

Interest Differential Fund Reserve 17.07 15.71

General Reserve 155.00 150.00

Interim Dividend 167.77 167.77

Tax on Interim Dividend 28.51 27.22

Proposed Final Dividend 301.99 301.99

Tax on proposed Final Dividend 51.32 51.33

Dividend

The Board of Directors of your Company has recommended a final dividend of 18% (Rs.1.80 per share) for the year 2013-14. An Interim Dividend @10% (Rs.1.00 per share) has already been paid to shareholders during the month of March 2014 and taking into account the final dividend of 18%, the total dividend for the year 2013-14 works out to 28% (previous year 28%) and the total dividend outgo including distribution tax will be Rs.549.59 crore (previous year Rs.548.31 crore), which works out to 36.59% of PAT for the year 2013-14.

MoU Rating for the year 2012-13

Your Directors have pleasure to share with the Members that the Company has achieved ''Excellent'' rating for its performance during the year 2012-13 in terms of the Memorandum of Understanding (MoU) entered into with the Ministry of Coal as per DPE guidelines.

Disinvestment

In order to comply with minimum public shareholding requirement under Securities Contract (Regulation) Rules, 1957 and Clause 40A of Listing Agreement, the Government of India (GOI), during the year under review had disinvested 5,97,01,260 equity shares, which is around 3.56% of the equity share capital of the Company, through Institutional Placement Programme (IPP). Consequent to the above, the GOI shareholding in the Company is reduced to 90% and the balance is held by FIIs/FIs, Banks, Mutual Funds etc. and Public.

Projects under construction/implementation

Thermal Power Station-II Expansion (2x250 MW)

As reported last year, Unit-I of Thermal Power Station-II Expansion was synchronised with lignite firing in May 2011 and after attending the teething problem it was lighted up again on 8th November, 2012. However, the unit had to be taken out of service on 25th November, 2012 to attend to refractory damage in Seal Pot 2 and failures in Fluidised Bed Heat Exchanger (FBHE) coils and spacer rods. In order to rectify the above, design modifications were made by BHEL in the Super Heater/Re-Heater coil supports in all the four FBHEs, in consultation with M/s.Lentjes, the technology provider and the unit was again synchronised on 13th February, 2014. However the unit was not able to achieve sustained operation and the unit could be in operation only intermittently. The unit is currently under shutdown due to failure in the support system in one of the FBHEs. This has been taken up with BHEL at all levels and also the Ministry of Coal and the Department of Heavy Industry. BHEL is in the process of carrying out further modification to make the FBHEs support system more rigid and reliable. This is being closely followed up to commission the unit early.

In respect of Unit-II, the Boiler was lighted up on 24th October, 2013 and the Turbine was rolled to the rated speed of 3000 rpm and the electrical tests were completed on 25th October, 2013. All the pre-commissioning activities have already been carried out. The modification proposed to be carried out in Unit-I will be carried out in this unit also before light up.

The overall physical progress of the project is 94.73%. As per the recent commitment made by BHEL, the commercial operation of the Unit-I is expected by August 2014 and that of Unit-II by September 2014. The Cumulative expenditure incurred up to 31st March, 2014 is Rs.2904.44 crore.

Neyveli New Thermal Power Project (2 x 500 MW)

Government of India (GOI) has sanctioned the Neyveli New Thermal Power project (1000 MW) at a capital cost of Rs.5907.11 crore in June 2011 with a commissioning schedule of 48 months and 54 months for Unit-I & II respectively from the date of sanction. The power station will adopt pulverised fuel firing technology. Two units of 500 MW capacity each will be set up as a replacement of the existing 600 MW TPS-I which has served for more than 50 years. Due to retendering of Steam Generator package, the project has got delayed.

BHEL has been awarded the contract for execution of both Steam Generator Package (NTA 1) and Turbo-Generator Package (NTA 2) at an order value of Rs.2569.24 crore and Rs.1022.68 crore, respectively. Balance of Plant (BOP) Package has been awarded on M/s. Essar Projects Limited at a value of Rs.1159.08 crore. The Cumulative expenditure incurred up to 31st March, 2014 is Rs.339.15 crore. As per the current status, commercial operation of Unit-I and II is expected by October 2017 and April 2018 respectively.

Restructuring of Mine-I & IA

In order to meet the lignite requirement of the Neyveli New Thermal Power Project of 1000 MW capacity being set up at Neyveli, the Board of Directors of your Company had approved the proposal for re-structuring of Mine-I from 10.5 to 8.0 MTPA and Mine-IA from 3.0 to 7.0 MTPA at an estimated cost of Rs.1458.17 crore which would result in increase in the Lignite Mine capacity by 1.5 MTPA.

RWE-Germany has been engaged to prepare the Feasibility Report (FR) for this project. Draft Social Impact Assessment (SIA) report has been received and the Expert Appraisal Committee (EAC) of Ministry of Environment & Forest, Government of India has issued the Terms of Reference for conducting Environmental Impact Assessment and Environment Management Plan study.

The draft EIA/EMP reports have been prepared and submitted to TNPCB, Cuddalore. Public Hearing is expected to be conducted soon and final environmental clearance is expected by October 2014. Administrative sanction for additional land with respect to Mine-I has been obtained from Tamilnadu Government and for Mine-IA, it is expected shortly.

Wind Power Project (51 MW)

Members may be aware that as part of entering into generation of green energy, your Board of Directors has approved for setting up 51MW Wind Power Project at Kazhuneerkulam, Tirunelveli District with Operation & Maintenance for five years from the actual date of commissioning, at an aggregate cost of Rs.347.14 crore. Work Order for setting up of the above project has been issued to M/s Leitwind Shriram Manufacturing Limited, Chennai in August 2013. Commissioning schedule for Wind Power Project is ten months from the date of placing of work order. Supply and erection activities are in progress. The overall physical progress of the project is 33%. The Cumulative expenditure incurred upto 31st March, 2014 is Rs.41.28 crore.

Solar Power Project (10 MW)

As one more step to harness green energy, the Board of Directors of your Company has accorded in principle approval for setting up of 25 MW Solar Power Project at Neyveli, out of which 10 MW will be installed in an area of about 54 acres in first phase and another 15 MW as an expansion in the second phase. M/s.BHEL, Chennai has been awarded the contract for setting up the above 10 MW Solar Power Project at a cost of Rs.74.60 crore, which includes Operation & Maintenance for three years after the warranty period. LOA has been issued to M/s.BHEL, Chennai on 30th April, 2014 and the project is scheduled to be completed within a period of 9 months from the date of LOA.

Coal Block Allocation

Pachwara South

Pachwara South Coal Block in the State of Jharkhand, having a total reserve of 279 MT of coal has been allocated by Ministry of Coal, Government of India to Neyveli Uttar Pradesh Power Limited, a subsidiary of your Company, for meeting the requirement of coal for its proposed thermal power plant at Ghatampur, in the State of Uttar Pradesh. Terms of Reference (TOR) has been issued by MoE&F in February 2014 and Advance Action Proposal (AAP) for Rs.19.45 crore has been sanctioned by Ministry of Coal.

Work order has been issued for preparation of EIA/EMP reports as well as Differential Global Positioning Survey (DGPS). Exploratory drilling is being carried out by CMPDI.

Jilga Barpali

Jilga-Barpali Coal Block, in the State of Chhattisgarh, with a total reserve of 546 MT of coal has been allocated by Ministry of Coal, Government of India, jointly to the Company with Chhattisgarh State Power Generation Company (CSPGCL) to develop the Mine and share the coal resources as per the allocation made by GOI. As per the allocation made 396 MT of coal from this block would be used for the proposed 1980 MW (Phase I ) of the Sirkali Thermal Power Project, in the State of Tamilnadu.

A proposal for JV between your Company and CSPGCL with an equity ratio of 74:26 has been approved by your Board of Directors and the Joint Venture Agreement (JVA) is expected to be signed shortly, with CSPGCL.

Joint Venture Projects

NLC Tamilnadu Power Limited (2x500 MW)

Coal based thermal power plant at Tuticorin is being implemented by your Company as a joint venture with Tamil Nadu Generation and Distribution Corporation Limited (TANGEDCO), at a revised estimated cost of Rs.6602.74 crore. Boiler Hydro Test for Unit-I was carried out on 28th September, 2012 and the Unit was lighted up with oil on 19th March, 2014. All the major pre-commissioning activities of Unit-I have been completed and the Unit is expected to be commissioned in August 2014. Regarding Unit-II, Boiler Hydro Test was carried out on 9th November, 2012. Erection works are in its advanced stage of completion. Boiler light up of Unit-II is planned for August 2014 and the Unit is expected to be commissioned during September 2014. The Cumulative expenditure incurred up to 31st March, 2014 is Rs.5191.62 crore.

MNH Shakti

MNH Shakti Limited a Joint Venture Company promoted by M/s. Mahanadi Coalfields Limited (MCL), NLC & Hindalco with equity participation of 70:15:15 is implementing a 20.0 MTPA coal mining project in Talabira in the State of Odisha. MCL being the major stake holder, is piloting the project. Environmental clearance for this project is yet to be received.

Neyveli Uttar Pradesh Power Limited (3x660 MW)

Members may be aware that your Company had entered into a joint venture with Uttar Pradesh Rajya Vidyut Utpadan Nigam Limited (UPRVUNL) for setting up of 1980 MW (3x660) coal based thermal power project in Ghatampur Tehsil, Kanpur Nagar District in the State of Uttar Pradesh, at an estimated cost of Rs.14,375 crore. The JV Company, Neyveli Uttar Pradesh Power Limited (NUPPL) is a Subsidiary Company with equity participation of NLC and UPRVUNL in the ratio of 51:49. Ministry of Coal (MoC) has accorded sanction for the Advance Action Proposal (AAP) for Rs.73.65 crore for carrying out certain preliminary activities. The schedule for completion of the project is 52 months, 58 months and 64 months from the date of sanction by GOI for the 1st, 2nd and 3rd unit of 660 MW each. The Public Investment Board, Government of India has recommended the project proposal for sanction to the Cabinet Committee on Economic Affairs. CCEA would consider the project for sanction once the project gets the environment clearance.

The project was taken up for consideration for issue of environmental clearance by the Expert Appraisal Committee (EAC) and the said Committee had observed that as per the existing policy of MoE&F, the environmental clearance and Stage-I forest clearance for the linked coal block is a pre-requisite. The JV Company has taken necessary steps to obtain environmental clearance and Stage-I Forest Clearance for the linked Pachwara South coal block. For the proposed thermal plant, NUPPL has deposited Rs.131.59 crore with the Land Acquisition Department, Kanpur, Govt. of Uttar Pradesh. The Private land to the extent of 767.27 hectares is being acquired. The Company has been given possession letter for 452.013 hectare as on 31st March, 2014. The JV Company has also taken action to acquire 60.7310 hectare of Government land lying within the project boundary.

Power purchase agreement has been signed with Uttar Pradesh Power Corporation Limited. Government of Uttar Pradesh has accorded sanction for supply of 80 cu. sec. of water from the West Allahabad branch canal downstream of Bidhnu Kasba Village for the above project.

M/s. Desein Private Limited, New Delhi has been appointed as the Consultant for the project. The tenders inviting EOI for the three packages viz., Steam Generator and Auxiliaries, Steam Turbine Generator and the Balance of Plant (all other auxiliary Packages) have been floated and the processing of EOIs are in progress. Preparation of tender specifications is also in progress. M/s. RITES has been assigned the work of carrying out the feasibility study for railway siding for the proposed coal based thermal power project. A site office for the above project has been constructed at Ghatampur and was inaugurated on 24th February, 2014.

New Projects under formulation

Bithnok Thermal Power Project (250 MW) with linked Mine (2.25 MTPA)

Your Company has proposed to set up a lignite based Thermal Power Plant of 250 MW capacity with linked Mine of 2.25 MTPA at Bithnok in Bikaner District, in the State of Rajasthan at an estimated cost of Rs.2298.83 crore. The Board of Directors of your Company has accorded approval for payment of Rs.94.56 crore to Government of Rajasthan towards acquisition of lands for Bithnok Mine Project.

State level Environmental Impact Assessment Authority, Rajasthan has already issued environmental clearance in respect of TPS. For the linked Mine, Expert Appraisal Committee (EAC) of MoE&F has recommended the project for environmental clearance. Environmental clearance will be issued by the authorities only after obtaining the Stage-I Forest clearance for which necessary application has been made by the Company.

Barsingsar Thermal Power Station Extension (BTPSE) (250 MW) linked to Hadla Lignite Mine (1.9 MTPA)

Members may be aware that with a view to utilise the lignite deposits in Hadla lignite block, your Company has proposed to set up a 250 MW lignite based thermal power plant with linked Mine of 1.9 MTPA capacity in Bikaner

District of Rajasthan, as an extension of the existing Barsingsar Power Station. Preparation of Feasibility Report (FR) for Thermal and Hadla Mine have been completed.

Environmental clearance for Hadla Mine Project and for BTPSE project have been obtained. Geological Exploration & Survey Work in the Palana Mine block initiated by your Company could not be taken up due to resistance by villagers. Considering the encroachments on the Palana lands and the resistance from the villagers, it is proposed to drop Palana Mine Project and the fuel requirement of BTPSE will be met by operating the existing Barsingsar Mine and Hadla Mine.

Sirkali Thermal Power Project (4000 MW)

Your Company, has proposed to set up a 4000 MW coal based coastal thermal power project, in two phases, at Sirkali, Nagapattinam District in the State of Tamil Nadu. In the first phase 1980 MW is proposed at an estimated cost of Rs.14,482 crore. The Board of Directors of your Company has accorded approval for AAP of Rs.56.52 crore for taking up pre-project sanction activities. LOA for the Consultancy services for the preparation of Feasibility Report (FR) has been issued to M/s. Tractabel and preparation of FR is in progress.

Action has been initiated for preparation of FR for Coal jetty and Marine EIA study. Your Company has taken up with District Administration to expedite the issue of administrative sanction for acquiring 1221.82 hectares of land for this project.

Barsingsar Solar Power Project (10MW)

A proposal is under consideration to setup a Solar Power Plant of 10MW capacity at Barsingsar, at an estimated cost of R92.83 crore.

Devangudi Mine Project

Your Company had earlier proposed to develop Devangudi Mine Block of 2.0 MTPA capacity at an estimated cost of Rs.542.67 crore to cater to the requirements of small industries around Neyveli. It is proposed to drop the above Mine project at present due to the prevailing non-favorable regional ground water scenario as per the Regional Ground Water Study conducted recently by IIT Chennai and to meet the stipulation of restriction in pumping of water by MoE&F in Neyveli area.

Coal Assets Abroad

In order to ensure fuel security for the coal based power projects, your Company plans to acquire coal assets abroad and in this connection had floated an Expression of Interests (EOI). Based on the response to the EOI it has been decided to further process the offers received from the firms having explored Mine field and are on the lookout for partners to develop the said Mine. Technical, financial and legal due diligence studies in the order of priority with respect to reserve size of the Mine field will be carried out and necessary action has been taken to appoint a consultant for carrying out the above studies.

Power Tariff

The Central Electricity Regulatory Commission (CERC) initially constituted under the Electricity Regulatory Commission Act, 1998 is a statutory body now functioning under the Electricity Act, 2003 which has repealed the ERC Act-1998, has the responsibility to regulate the tariff of Generating Companies owned or controlled by the Central Government and Generators having sale of electricity in more than one State. Tariff orders for the period 2009-14 in respect of TPS-I, TPS-I Expansion and TPS-II have been issued by CERC. Tariff petition has been filed before CERC for the Barsingsar Power Plant and CERC has awarded provisional tariff for the power exported from this project for the period from COD up to 31.03.2014. Filing of tariff petitions for the period 2014-19 is underway.

Dues - Power & Lignite sales

During the year 2013-14, the realisation of power dues of the Company increased considerably with respect to the previous year as a result of ardent efforts put forth by the Company at various levels and with the support of MOC. The outstanding dues of the Company as on 31.03.2014 was Rs.2206.53 crore in which the power dues accounted for Rs.1985.26 crore, comprising normal dues of Rs.1064.46 crore (i.e., dues within the allowable 60 days limit) and over dues of Rs.920.80 crore (viz., dues exceeding the permissible 60 days limit). The corresponding dues as on 31.03.2013 was Rs.3802.37 crore in which the power dues accounted for Rs.3413.47 crore comprising normal dues of Rs.789.08 crore and over dues of Rs.2624.39 crore.

Rebate Scheme/One time Settlement Scheme for Realisation of Dues

Your Company is following a graded rebate scheme to incentivize prompt/early payment of monthly power bills. Your Company also managed to recover Rs.309.61 crore of surcharge income pursuant to a settlement worked out with TANGEDCO. Further, Power Purchase Agreements (PPAs) with TANGEDCO were renewed/amended to incorporate payment security clause in line with the industry practice for appropriation of any payments first against surcharge and then against earlier unpaid bills, statutory dues and then monthly bills. Efforts are on to get the PPAs with other Discoms also amended.

Credit Rating

Your Company has obtained highest credit rating of "AAA/Stable" from ICRA, CRISIL and Brickworks for the loans obtained for its various projects in Neyveli and Barsingsar.

Research and Development (R&D)

Centre for Applied Research & Development (CARD), the In-house R&D centre of your Company had complied with the R&D guidelines successfully by completing five R&D project activities. The total R&D expenditure incurred during the year 2013-14 was Rs.14.34 crore which is around 1% of PAT for the year 2013-14.

Currently two Coal S&T projects on corrosion problems in Specialised Mining Equipment (SME) in mines and development of alternate materials to prevent erosion corrosion in de-watering pipes in mines are in progress. A Memorandum of Understanding (MoU) was signed on 28.03.2014 with Indian Institute of Technology, Madras for a joint research consultancy project "Delineating of buried sub-surface objects, hard bands in open-cast mines". The study aims to find buried objects in mines using Ground Penetration Radar technology. As a measure of expanding its R&D activities, your Company had invited proposals through ''Expression of Interest'' basis for undertaking projects to resolve certain identified problems. The proposals received are under scrutiny for implementing the projects.

CARD has been granted accreditation for chemical and mechanical testing by National Accreditation Board for Testing and Calibration Laboratories (NABL). The Accreditation has been granted for a period of two years from 17th December, 2013. CARD is taking efforts to take up projects on Clean Coal Technologies. Your Company is in discussion with M/s. KOBELCO, Japan to upgrade the lignite for power generation. Discussions are in progress with M/s. Environmental Clean Technology, Australia for developing a technology to produce lignite pellets of high calorific value with less moisture. Further, discussion for possibility of utilising the dried lignite in reduction of iron ore (millings) to iron and also with lignite consuming industries for the suitability of the pellets in their system is also in progress.

Your Company has identified the potential of fly ash as a pozzolanic material and ways and means for gainful utilisation of fly ash. It has also identified the potential use of bottom ash in construction activities as a substitute for sand by 50% and has entered into an MOU with VIT University to undertake a study. The joint research has yielded positive results, proving that bottom ash can replace sand in cement mortar and cement blocks. Based on research experimental building has been constructed in Neyveli using bottom ash.

Human Resource Management

Human Resource

Your Company takes pride in its competent and highly motivated human resource and maintain harmonious relationship that leads to achieving organisational as well as individual goals. The human resource has been the backbone of your Company in driving operational and financial performance. The thrust on achieving higher growth and optimal utilisation of manpower continued in the year under review also. The productivity of the employee has been demonstrated by increase in the lignite production and power generation. The total manpower of your Company as on 31st March, 2014 was 16849.

Employee Development

Your Company has continuously promoted training, learning initiatives for skill and competency building and overall development for not only its own employees but also for the surrounding society. The training programme includes management, mining operation, power station operation and maintenance, project construction, erection, commissioning and information technology. During 2013-14, 550 in-house programmes on the above topics covering 16,000 employees were organised. Leadership development programme was also arranged for senior executives to harness their skills.

Industrial Relations

Your Company continued its faith in participative management and industrial relations remained harmonious and cordial.

Implementation of Official Language

In line with the Government of India policy and the provisions prescribed under the Official Languages Act, 1963 your Company made concerted efforts to promote the official language. Hindi workshops on topics such as usage of Unicode fonts in computers, glossary of standard expressions and phrases used in office noting and correspondence, salient features of the above Act and its rules and official language policy of Union were organised. Third sub-committee of Parliamentary Committee on official language inspected the implementation of official language. Your Company has been conferred with "Rajbhasha Vishista Samman" award instituted by Centre for Training and Development.

Reservation of Posts

Your Company continues to follow the directives of the Government of India with regard to reservation for SC and ST. The details of group-wise Men-in-Position (MIP) as on 31st March, 2014 are as under:

Strength of SC/ST % of SC/ST

Total Group Strength Total Total SC ST SC ST SC/ST SC/ST

A 4251 873 269 1142 20.54 6.33 26.86

B 75 13 21 34 17.33 28.00 45.33

C 11114 2210 109 2319 19.88 0.98 20.87

D 1409 327 9 336 23.21 0.64 23.85

Total 16849 3423 408 3831 20.32 2.42 22.74

Leadership Development

Your Company organised Leadership Development Initiative covering 240 executives involving mix of tools and simulations for mapping their competency against the competency framework. The programme containing individual and group exercises provides an opportunity to display the range of individual behaviour.

Environment Management & Sustainable Development Projects

Your Company is adopting the best Environment management practices and eco conservation measures since inception. The Board of Directors have approved an Environment Policy focusing on clean and green environment.

Your Company''s Mines and Thermal Units are accredited with Environment Management Standards of ISO 14001 and Occupational Health and Safety Assessment (OHSAS) 18001.

Towards conservation of ecosystem, mined out land is reclaimed and converted into agricultural lands, orchards, afforestation and ponds. During the Financial Year 2013-14 an area of about 113 hectares of land has been reclaimed in all the three mines in Neyveli. The slopes that are developed owing to dumping of overburden is stabilised with thick green belt development which has various positive impact on the environment. During this financial year, efforts were undertaken to achieve 100 % utilisation of fly ash generated from the Thermal Power Stations.

The Air environment is continuously monitored by Computer Aided Ambient Air Quality Monitoring Station. Water and effluent quality are periodically analysed to check current pollution levels . The stack emission from Thermal power plants are continuously monitored. Both the Ambient Air quality and stack emission are connected to CARE Air Centre of Tamil Nadu Pollution Control Board (TNPCB) and the pollution levels at Neyveli are monitored at TNPCB office.

Your Company has developed a thick green cover in its Industrial Units as well as in the Township area. More than two lakh trees have been planted in and around the Mine and Thermal units during this year alone to maintain ecological balance.

Usage of plastic carry bags has been banned in Neyveli Township area and your Company is also operating a plastic recycle plant wherein waste plastic is converted into tar for usage in road formation.

Your Company has an approved Sustainable Development Policy and as per the same Sustainable Development Projects are undertaken in the area of climate change, eco conservation, water conservation, energy conservation, green energy and sustainability training. In pursuit of the Nation''s commitment to act early towards climate change, your Company has taken up collaborative studies with Pondicherry Engineering College on "Sequestration of CO2 and production of Bio-fuel from flue gas from Thermal Power Plant" and base line study has been completed. Sustainability development training was imparted to women employees.

The aquifer in the Neyveli and surrounding areas is maintained by conservation as well as recharging methods. Utilisation of storm water for domestic and industrial purpose ensures water conservation. Rainwater harvesting and check dam with percolation wells ensures recharge of the aquifer.

Towards its commitment to reduce the Carbon footprint, your Company is implementing renewable energy Projects viz., 51 MW Wind Power Project at Kazhuneerkulam and 10MW Solar Power Project at Neyveli.

Safety

Your Company is taking best efforts in the industrial safety area. Central Safety Wing of the Company conducts Risk Assessment and Safety Audit separately for Mines and Thermal Power Stations in regular periodicity by engaging accredited external agency and the recommendations are implemented. As a result of the above and the concerted efforts taken in creating increased safety awareness among the employees of both departmental and contractual besides organising training programmes like Refresher & Basic courses, job related briefing etc., your Company could achieve Excellent Level in the safety parameters under MoU with the Government for the year 2013-14 and in addition to this overall achievement, zero accident potential was achieved for the year 2013-14 at Mine and Thermal Power Station of Barsingsar and Thermal Power Station-II at Neyveli.

Risk Management

A Risk Cell headed by Chief Risk Officer with Risk Officers in various units of your Company is in place which identifies the risks and suggests mitigation plans. The Risk Management Committee of Board of Directors periodically reviews the identified risks and also the mitigation plans.

Vigilance

Based on the suggestion of the Vigilance Branch, various circulars/guidelines have been issued for streamlining the rules/procedures etc. Vigilance Awareness Week - 2013 was observed from 28.10.2013 to 02.11.2013. As greater transparency facilitates in improving the system & procedure and minimise the scope for corruption, all efforts are taken to improve the transparency by leveraging technology through e-governance initiatives.

MoU with Transparency International

Your Company has signed a Memorandum of Understanding with Transparency International India, part of Asia Pacific forum comprising 20 nations. Transparency International India is the Indian chapter of Transparency International, based at Berlin .

Township

Your Company''s Neyveli Township spread over 50.Sq.Kms with about 21,000 residential quarters with a total population of about 1,35,000 is a self-contained unit with all infrastructural facilities that include schools, college, sophisticated general hospital, library, swimming pools, air-conditioned auditorium, stadium, community welfare centres, recreation clubs, reading rooms, parks, banks, shopping complexes etc. Township with all facilities has also been established in Barsingsar.

Medical Services

Your Company maintains a 355 bedded General Hospital at Neyveli that takes care of the health and medical care needs of its regular employees, contract workmen and their eligible dependants. Delivery of medical care services includes broad specialties like general medicine, general surgery, paediatrics, obstetrics & gynaecology, orthopaedics, ophthalmology, ENT, dermatology, chest medicine and psychiatry, ayurveda and occupational health services. Ayurveda and occupational health services, renders your Company''s health care model unique. Clinical support services in Anaesthesiology give the hospital the cutting edge to take up general surgeries and specialised surgeries. Diagnostic support services in clinical laboratory and radiology/imaging services provide the hospital the needed expertise in undertaking wide range of investigations that form the basis for diagnosis and disease management.

Your Company has upgraded the emergency care unit and the laboratory facility with state of the art diagnosing devices like bed side Multi-parameter monitors, nebulizers, defibrillators, central oxygen and suction lines besides ECG, including Tele-ECG. The upgraded minor operation theatre facilitates taking up minor surgical procedures in trauma cases.

During the year under review, 8.08 lakh patients were treated at Out-patient Department (OPD) of the General Hospital, besides treating 1,88,532 patients in the Dispensaries located in Block-29 and Block-30. In addition, 15,959 patients were rendered in-patient treatment.

The General Hospital had organised Family Planning Services, Revised National Tuberculosis Control Programme, National Leprosy Control Programme, AIDS Screening and Control Programme as a part of National Health programmes. Your Company has also embedded crisis listening by instituting MITHRAto help individuals in distress particularly adolescent and late adolescent children who are stressed out due to various scholastic pressures, relationship and emotional problems. MITHRA, functioning since October 2013, is managed by a Psychiatrist and trained volunteers.

Corporate Social Responsibility

Your Company, as a socially responsible corporate citizen, continues to carry out development works in the surrounding villages, right from its inception, focusing on the socio economic development of the operating regions for achieving inclusive growth.

- An annual budgetof not less than 1.5% of the profit after tax has been created by your Company and the CSR projects are monitored periodically by a Sub-committee of Board of Directors. Your Board of Directors have sanctioned a budget of 726.30 crore for CSR Projects for the year 2013-14.

- Timeframes and milestones are set through Baseline Survey before commencement of the CSR Projects.

- Initiatives of State/Central Government Departments/Agencies are dovetailed/ synergized with the CSR activities of yourCompany.

The CSR expenditure of your Company for the year 2013-14 is 726.30 crore. The major CSR initiatives undertaken during the year2013-14 are given below:-

CSR-Peripheral

Members may be aware that a structured Development Scheme is in operation for executing capital works for developing social infrastructure and building Sustainable Community Assets which benefits the villages surrounding Neyveli in Tamil Nadu and Barsingsar in Rajasthan State. Infrastructure development works like drinking water facility by sinking/ maintaining the bore-wells, constructing RCC water tanks, roads, additional school buildings, laboratories, libraries, bridges, additional infrastructure for primary health centres for developing medical facilities, de-silting of lakes etc., are being carried out on the basis of needs and priorities. Works numbering 24 for a value of 7583.30 lakh have been carried out during the year under review for the benefit of the population in the areas surrounding the operating localities. Continuous supply of water to nearby villages for irrigating over 23,000 acres of land is continued in the Neyveli region.

CSR-Community

Your Company continues to extend all assistance including grant and infrastructure to Sneha Opportunity Services at Neyveli to run a day-care, education and training centre for special children of the region.

Neyveli Health Promotion and Social Welfare Society at Neyveli patronised by your Company has been serving the society by supplying artificial limbs/calipers to the differently abled, apart from running a school for the hearing impaired and a Computer Centre, imparting training for physically challenged, widows and destitutes and gainfully employing them.

CSR focused training programmes were organised for the benefit of the students, teachers and the population of Neyveli locality, in which 5,064 persons participated. Five women and 205 men from various peripheral villages were trained during the year in operation and maintenance of Light Motor Vehicles, Heavy Transport Vehicles, Earth Moving Equipment Operation, Vulcanising, Solar Instruments Assembly, Service & Maintenance and Air Conditioning Machines Maintenance and Repairs.

During the year 2013-14, your Company has contributed Rs.250 lakh to the Prime Minister''s Relief Fund towards relief and rehabilitation works in the flood affected area of Uttarakhand State.

CSR - Education

Your Company offers best education through its 10 schools - 3 Higher Secondary Schools, 2 High Schools, 3 Middle Schools and 2 Elementary Schools to the wards of employees and also to the students from surrounding villages. During the year under review, the students'' strength in these 10 schools was 6746. Apart from this, in the Neyveli Township 15 other schools are also being run by private institutions catering to around 25,000 student population mostly from the surrounding rural villages.

Your Company has imparted motivational and exam-skills training during the year to 2910 girls and 2356 boys of X and XII Standards in Neyveli and 14 peripheral village schools.

Your Company provides infrastructural support and also periodical financial support to Rajiv Gandhi Education Society, Barsingsarfor providing quality education and technical training to the children of villages around your Company''s project-sites in addition to the Jawahar Education Society at Neyveli.

The establishment of an Industrial Training Institute in Barsingsar village was completed by your Company in the year 2012-13. NCVT approved courses in Horticulture and Electrician trades have commenced from October 2012 and Fitter and Welder trades have commenced from October 2013. During the year, 167 students have been imparted Industrial/Technical Training in these trades.

CSR-Health

Your Company provides quality medical treatment and occupational health service through its General Hospital to all the inhabitants of Neyveli Township and its surrounding villages, including comprehensive medical treatment to the Contract Workmen and theirfamily members.

During the year 2013-14:

- Free medical consultation with minimum anti-biotic therapy and vitamins was extended in 92,912 instances to out-patients from the rural public. Another 25,620 patients were given emergency treatment for various causes.

- Community Health Screening for diabetes, Hypertension and HIV covering 9,740 persons during the Annual Book Fair and Safety Week Celebration was carried out and counseled for behavioural change.

- 12 medical camps were conducted in peripheral villages located in the area surrounding Neyveli Township in Cuddalore District 5204 persons of these 12 villages were screened and given medical advice and medicines through the camps. During the camps, 664 Random Blood Sugar Tests were taken, 229 Electro Cardio Grams were generated and 329 persons were provided with vision glasses. 682 patients were referred for inpatient treatment of which 329 persons underwent the inpatient treatment.

From February 2013 onwards, your Company is providing nutritious food supplement to about 270 HIV affected children belonging to the Cuddalore District HIV Positive Society, Cuddalore.

Your Company has instituted "NLC Chair on CSR" with Institute of Public Enterprise, Hyderabad and contributed Rs.100 lakh for the same, as corpus.

ISO Certification

Your Company''s Mines and Thermal Power Stations at Neyveli are certified with ISO 9001, ISO 14001 and OHSAS 18001 by reputed agencies for their sound systems and practices. In addition to the above, the Contracts Department, Employee Development Centre and the Vigilance Department have been certified under ISO 9001.

General

Contribution to the cause of Women

Your Company''s human resource is represented by 7.5% of Women employees. Programmes on women empowerment were organised during the year under review. Your Company actively participated and deputed women employees for the programmes organised by "Women in Public Sector" (WIPS) under the aegis of SCOPE.

Visit of Parliamentary Committees

During the year the following Parliamentary Committees had visited your Company:

a. Committee on welfare of Other Backward Classes.

b. Committee on Industry and Standing Committee on Coal & Steel.

c. Committee on welfare ofSC& ST.

d. Committee on Vigilance.

e. Committee on Official Language.

Awards & Recognition

Awards received by your Company during the year 2013-14 are given below:

- SCOPE "Meritorious Award for Environmental Excellence & Sustainable Development." for the year 2011 -12, instituted by Standing Conference of Public Enterprises (SCOPE).

- SCOPE award for Excellence and Outstanding contribution to the Public Sector management for the year 2011-12.

- National Energy Conservation Award - ''First Prize under mining domain'' for the year 2013 instituted by Ministry of Power, presented by Hon''ble President of India.

- 14th Annual Greentech Environment Award - 2013 (Gold Category) from Greentech Foundation under Thermal Power Sector and Silver Shield Award to Thermal Power Station-I Expn. for being the best coal/lignite based Thermal Power Stations in respect of Environment Management and Energy efficiency for 2012-13, for the second consequent year.

- Greentech CSRAward-2013from Greentech Foundation, in Silver Category.

Business Responsibility Report (BRR)

The Business Responsibility Report (BRR) for the year 2013-14, covering the initiatives taken by the Company from an environmental, social and governance perspective forms part of this annual report 2013-14.

Compliance under Persons with Disabilities Act, 1995

Your Company ensures compliance of provisions under the Persons with Disabilities Act, 1995. Suitable arrangements/modifications are made in the working place to meet the requirements of persons with disability.

Compliance underthe Right to Information Act, 2005

Your Company ensures compliance under the Right to Information Act, 2005. A Central Public Information Officer, two Appellate Officers, one Transparency Officer, and seventeen Central Assistant Public Information Officers representing different functional areas have been nominated to attend to the queries and appeals received underthe RTI Act in a time bound manner.

During the year 2013-14, under the above Act, 324 numbers of applications containing 1626 queries were received and out of the same 285 applications covering 1432 queries have been replied.

Compliance under Public Procurement Policy

The Ministry of Micro, Small and Medium Enterprises (MSME) has notified the Public Procurement Policy and in terms of the said notification, an annual target for procurement from MSE was set for the three years beginning from the FY 2012-13. The target set for the FY 2013-14 for procurement of such items which are within the scope of MSEs was 15% and as against the same the achievement was 23.01%.

Two Vendor Meets were conducted at Neyveli out of which one meet was conducted exclusively for MSEs.

Citizen''s Charter

Your Company maintains Citizen''s Charter, indicating details of clients, customers under different heads, system of redressal of grievance etc. and the same is regularly updated.

Particulars of Employees

Particulars of Employees as required under Section 217 (2A) of the Companies Act, 1956, read with the Companies (Particulars of Employees) Rules, 1975 – Nil.

Energy Conservation and Research & Development

The particulars required under Section 217(1)(e) of the Companies Act, 1956 read with the Companies (Disclosure of particulars in the Report of the Board of Directors) Rules, 1988 regarding energy conservation measures, technology absorption and expenditure on R&D are furnished in Annexure–1.

Management Discussion & Analysis Report and Report on Corporate Governance

The Management Discussion & Analysis Report is furnished in Annexure-2. The report on Corporate Governance and the Auditors'' Certificate on the compliance of Corporate Governance conditions stipulated by Clause-49 of the Listing Agreement and DPE guidelines are furnished in Annexure-3 and 4 respectively.

Auditors

Cost Audit

M/s.Srinivasan, Sundaram & Associates, Cost Accountants, Chennai, were appointed as the Cost Auditor for the year 2013-14, to carry out the cost audit for the Mines & Power Stations of the Company. The Cost Audit Report for the year 2012-13 was filed with the Ministry of Corporate Affairs on 23.09.2013 against the due date of 27.09.2013.

Branch Audit

M/s.Surender K Goyal & Co., Chartered Accountants, Rajasthan, has been appointed as the Branch Auditor for the year 2013-14 by the Comptroller and Auditor General of India (C&AG) for conducting the audit of Mine and Thermal Units at Barsingsar.

Statutory Audit

M/s. Sreedhar, Suresh and Rajagopalan, Chartered Accountants and M/s.P.B.Vijayaraghavan & Co., Chartered Accountants, Chennai, were appointed by the C&AG as the Joint Statutory Auditors for the year 2013-14 under Section 619 (2) of the Companies Act, 1956. The Board of Directors of your Company has fixed Rs.18 lakh plus applicable service tax as the Statutory Audit fees, to be shared equally by the Joint Statutory Auditors.

C&AG''s Comments

C&AG''s Comments on the accounts for the year ended 31st March, 2014 is furnished in Annexure-5.

Directors'' Responsibility Statement as per Section 217(2AA) of the Companies Act, 1956

The Board of Directors declares:- a. that in the preparation of the annual accounts, the applicable accounting standards had been followed along with proper explanation relating to material departures;

b. that the Directors had selected such accounting policies and applied them consistently and made judgments and estimates that are reasonable and prudent so as to give a true and fair view of the state of affairs of the Company at the end of the financial year and of the profit of the Company for that period;

c. that the Directors had taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions of the Companies Act for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities;

d. that the Directors had prepared the annual accounts on a going concern basis.

Board of Directors

Shri.M.B.N.Rao resigned from the Board w.e.f.09.08.2013. Shri. R.Kandasamy relinquished the position as a Director on 30.09.2013 on attaining the age of superannuation. Shri. N.S. Palaniappan, the then Principal Secretary to Government of Tamilnadu, Industries Department, relinquished his Directorship w.e.f.24.10.2013. Sarvashri. S.K. Roongta, L.N. Vijayaraghavan, A.P.V.N. Sarma, V. Murali, and M.M. Sharma relinquished the position as Directors w.e.f.30.09.2013 on completion of three year tenure and Shri. R.K. Mishra also relinquished the position as a Director w.e.f.24.03.2014 on completion of three year tenure.

Dr. Sanjay G Dhande whose three year term of office ended on 25.06.2013 was re-appointed as a Director w.e.f.06.09.2013. Sarvashri. S. Boopathy, C.V. Sankar (Principal Secretary to Government of Tamilnadu, Industries Department) and C.Balakrishnan were inducted into the Board w.e.f.01.10.2013, 18.12.2013 and 23.12.2013 respectively.

The Board places on record its appreciation for the valuable contribution made by Sarvashri M.B.N.Rao, R. Kandasamy, N.S. Palaniappan, S.K. Roongta, L.N. Vijayaraghavan, A.P.V.N. Sarma, V. Murali, M.M. Sharma and R.K. Mishra during their tenure as Directors on the Board of the Company.

Shri. Rakesh Kumar and Shri S. Rajagopal, Directors, retire by rotation at the forthcoming Annual General Meeting and being eligible offer themselves for re-election.

Acknowledgement

The Board of Directors of your Company places on record its sincere appreciation for the continued support and guidance extended by the Ministry of Coal, Ministry of Power, Ministry of Finance, Ministry of Environment & Forest, Ministry of Industry, Ministry of Labour, Ministry of Heavy Industries, Planning Commission, Central Electricity Authority, Central Electricity Regulatory Commission, State Electricity Boards and beneficiaries of Tamil Nadu, Andhra Pradesh, Telengana, Karnataka, Kerala, Puducherry and Rajasthan and also the Joint Venture partners, viz.,Tamil Nadu Generation and Distribution Corporation Limited (TANGEDCO), Uttar Pradesh Rajya Vidyut Utpadan Nigam Limited (UPRVUNL) and Mahanadi Coalfields Limited (MCL) and Hindalco.

The Board of Directors of your Company is pleased to acknowledge with gratitude the co-operation and continued support extended by the Governments of Tamil Nadu & Rajasthan and the District Administration of Cuddalore & Bikaner. The support and co-operation by the Comptroller and Auditor General of India, Statutory Auditors, Branch Auditor, Cost Auditor, Director General of Mines Safety, the Factory & Boiler Inspectorates, Chief Inspector of Factories, Director of Boilers, Central Pollution Control Board, State Pollution Control Board, Chief Controller of Explosives, Regional Labour Commissioner, Regional Provident Fund Commissioner, Company''s Bankers and KfW of Germany need special mention and the Directors acknowledge the same.

Your Directors also wish to place on record their appreciation for the dedicated work put forth by the employees at all levels. The positive role played by the recognised Trade Unions and Associations of the Engineers and Officers in maintaining cordial industrial relations deserves special mention.

for and on behalf of the Board of Directors

PLACE:Chennai B. SURENDER MOHAN

DATE :14.08.2014 CHAIRMAN-CUM-MANAGING DIRECTOR

---

Mar 31, 2013

To The Members of Neyveli Lignite Corporation Limited

The Directors are pleased to present the 57th Annual Report of your Company together with the audited accounts for the year ended 31st March, 2013. The financial year 2012-13 was an year of achievements as your Company achieved a record performance in all its operational areas.

Snapshot of Physical Performance

Particulars 2012-13 2011-12 Growth (%)

Overburden removal (in LM3) 1674.85 1651.47 1.42

Lignite Production (in LT) 262.23 245.90 6.64

Power Generation - Gross (in MU) 19902.34 18789.44 5.92

Power Export (in MU) 16841.51 15810.67 6.52

LM3-Lakh Cubic Metre LT-Lakh Tonnes MU-Million Units Highlights

- Highest overburden removal and lignite production in any year since inception.

- All time high generation and export of power.

- Lignite production from Mine-II highest in any year since inception.

- Highest ever lignite production from Barsingsar Mine.

- Highest ever generation and export of power from TPS-II & TPS-I Expansion.

- More than 90% Plant Load Factor achieved by TPS-I Expansion.

Segment-wise Performance Mines

The aggregate installed capacity of all lignite mines stands at 30.6 MTPA as on 31st March, 2013.Your Company has once again achieved the highest ever performance in Overburden (OB) removal and lignite production during the year 2012-13. The aggregate OB removal and lignite production during the year under review were 1674.85 LM3 and 262.23 LT, respectively compared to 1651.47 LM3 and 245.90 LT achieved during the year 2011-12. The OB removal and lignite production during the year 2012-13 registered a growth of 1.42% and 6.64% respectively when compared to the previous year 2011-12.

The details of Mine-wise performance are as under:

Mine-I (including expansion) - 10.5 MTPA

The Overburden (OB) removal from this Mine during the year 2012-13 was 502.15 LM3 as against 528.17 LM3 in 2011-12. The lower performance of OB removal during the year 2012-13 when compared to the previous year was on account of works carried out in system equipment in the year under review. Further, because of reduction in lignite seam thickness frequent conveyor re-arrangement was carried out resulting downtime of the system. Lignite production during the year under review was 79.60 LT as compared to 77.34 LT registering a growth of 2.92% over the previous year 2011-12. Further, in order to meet the lignite requirement of linked power stations TPS-I & TPS-I Expn., additional quantity of 13.80 LT was transferred from other mines.

Mine-IA - 3.0 MTPA

The OB removal from this Mine during the year 2012-13 was 281.81 LM3 as against 215.10 LM3 in 2011-12, registering a growth of 31.01%. Lignite production during the year 2012-13 was 29.40 LT compared to 28.77 LT during 2011-12, registering a growth of 2.19%.

As Members may be aware, the Thermal Power Station - I (TPS-I) is in operation since 1962 and the Government of India (GOI) has sanctioned for implementation of Neyveli New Thermal Power Station (NNTPS) (1000 MW) project as a replacement to TPS-I. Presently, Mine-I (including expansion) with an installed capacity of 10.5 MTPA feeds TPS-I (600 MW) and TPS-I Expn. (420 MW). The Mine-IA of 3.0 MTPA capacity caters to the requirement of an Independent Power Producer and also meets the requirement of lignite sales.

Taking into account the higher capacity of NNTPS Project, the proposal for re-structuring of Mine-I & Mine-IA by adding contiguous lignite blocks so as to raise the aggregate mining capacity to 15.0 MTPA, has been approved by the Board of Directors of your Company. The estimated cost for the above re-structuring of Mines is Rs.1458.17 crore.

Mine-II (including expansion) - 15.0 MTPA

This Mine is linked to TPS-II & TPS-II Expansion project. The OB removal from this Mine was 813.36 LM3 as against 828.05 LM3 during the year 2011-12. The lower performance in OB removal during 2012-13 when compared to the previous year was on account of seepage problems encountered. The Lignite production during the year under review was 139.44 LT as against 130.96 LT during 2011-12 and this was the highest for any year since inception. The lignite production from this Mine registered a growth of 6.48% over the previous year 2011-12.

Barsingsar Mine-2.1 MTPA

During the year 2012-13, overburden removal and lignite production were 77.53 LM3 and 13.79 LT respectively, as against 80.15 LM3 and 8.83 LT, respectively, during the previous year 2011-12. Because of non-stabilisation of operation of the units in the Thermal Power Plant during the year 2012-13, the lignite exposed in earlier years could not be mined out fully and utilised in the power plant and hence the overburden removal was restricted during the year under review. Lignite production from this mine at 13.79 LT achieved during the year 2012-13 was the highest for any year since inception.

Power

The present installed capacity of thermal power plants of your Company is 2740 MW. Your Company has once again achieved the highest power generation and export during the year 2012-13. The aggregate power generation during the year under review was 19902.34 MU as compared to 18789.44 MU generated during the year 2011-12. The aggregate power export during the year 2012-13 was 16841.51 MU as against 15810.67 MU registered during the year 2011-12. The power generation and export during 2012-13 registered a growth of 5.92% and 6.52% respectively over the previous year 2011-12.

The details of Plant-wise performance are as under:

Thermal Power Station - I (600 MW)

During the year 2012-13, power generation from this plant was 4035.43 MU compared to 3987.85 MU in the year 2011-12, registering a growth of 1.19%. The power export from this plant during the year under review was 3215.98 MU as against 3171.82 MU achieved during the year 2011-12, recording a growth of 1.39%. The performance of this plant needs to be specially recorded as it is one of the oldest power plants in the Country and still in operation. This plant achieved a Plant Load Factor (PLF) of 76.77% during the year 2012-13.

Thermal Power Station - I Expansion (420 MW)

The power generation and the export from this Plant during the year 2012-13 were the highest achieved in any year since inception. During the year 2012-13 power generation and export from this plant were 3319.77 MU and 3035.58 MU respectively compared to 3042.68 MU and 2809.97 MU respectively achieved in 2011-12. This plant registered a growth of 9.11% in power generation and 8.03% in export of power, over the previous year 2011-12. This plant achieved a PLF of 90.23% during the year 2012-13.

Thermal Power Station - II (1470 MW)

Power generation during the year 2012-13 was 11238.09 MU as against 11087.65 MU in the year 2011-12, registering a growth of 1.36% and the export during the year under review was 9455.81 MU compared to 9278.76 MU in the year 2011-12, registering a growth of 1.91%. The power generation and the export from this power station during the year under review were the highest in any year since inception. This plant achieved a PLF of 87.27% during the year 2012-13.

Barsingsar Thermal Power Station (250 MW)

During the year 2012-13, power generation and export from this plant were 1280.85 MU and 1114.33 MU respectively compared to 617.68 MU and 510.79 MU respectively achieved in 2011-12. This was the first full year operation for both the Units.

Productivity

The output per man shift during the year 2012-13 as compared with the previous year is given below:

Product Unit 2012-13 2011-12 Growth (%)

Lignite Tonne 11.97 11.18 7.07

Power Kw./hr. 21386 20130 6.23

Financial Performance

During the year ended 31st March, 2013, the Company registered a total sales of Rs.5590.07 crore as against Rs.4866.85 crore recorded for the year 2011-12, registering a growth of 14.86%. The sales registered for the year 2012-13 was the highest ever since inception.

The Profit Before Tax (PBT) and the Profit After Tax (PAT) for the year 2012-13 were Rs.2047.65 crore and Rs.1459.75 crore, respectively, as against Rs.1983.89 crore and Rs.1411.33 crore, respectively, registered for the year 2011-12. As compared to the previous year 2011-12, the PBT and the PAT for the year 2012-13 recorded a growth of 3.21% and 3.43%, respectively. The PBT and the PAT for the year ended 31st March, 2013 were the highest for any year since inception.

The reason for increase in the profit for the year 2012-13 was on account of higher lignite production, generation and export of power which had resulted in increase in the sales.

The details of profit earned for the financial year 2012-13 and appropriation of the same in comparison with the previous year 2011-12 are as under:

(Rs. in crore)

2012-13 2011-12

Profit Before Tax 2047.65 1983.89

Tax provision 587.90 572.56

Profit After Tax 1459.75 1411.33

Appropriation :

Transfer to Bond Redemption Reserve 15.00 15.00

Interest Differential Fund Reserve 15.71 18.08

General Reserve 150.00 145.00

Interim Dividend 167.77 0.00

Tax on Interim Dividend 27.22 0.00

Proposed Final Dividend 301.99 469.76

Tax on proposed Final Dividend 51.33 76.21

Dividend

The Board of Directors of your Company has recommended a final dividend of 18% (Rs.1.80 per share) for the year 2012-13. An Interim Dividend @10% (Rs.1.00 per share) has already been paid to shareholders during the month of March 2013 and taking into account the final dividend of 18%, the total dividend for the year 2012-13 works out to 28% (previous year 28%) and the total dividend outgo including distribution tax will be Rs.548.31 crore (previous year Rs.545.97 crore), which works out to 37.57% for the year 2012-13.

MoU Rating for the year 2011-12

Your Directors have pleasure to share with the Members that the Company has achieved ''Excellent'' rating for its performance during the year 2011-12 in terms of the Memorandum of Understanding (MoU) entered into with the Ministry of Coal as per guidelines.

Projects under construction/implementation Thermal Power Station-II Expansion (2x250 MW)

Thermal Power Station-II Expansion project linked to Mine-II Expansion is under implementation for expanding the capacity of TPS-II from 1470 MW to 1970 MW. The project was scheduled to be commissioned during the year 2009. Besides initial delay in start of engineering and finalisation of civil and erection sub-contractors for boiler island & power house and slow progress of work by the Main Plant Package contractor, the prolonged delay was also on account of the fact that there were several teething problems during commissioning which had to be overcome.

During the year Unit-I was synchronised again in November 2012 and in-firm power of 28.20 MU was generated and 19.81 MU was exported. The operation of the unit could not be sustained on account of failures in refractory, coil punctures and failure of Fluidized Bed Heat Exchanger (FBHE) coil supporting arrangements. BHEL, the Main Plant Package Contractor along with M/s. Lentjes, the process developer for the CFBC technology, has reviewed all the critical issues causing repeated failure of FBHE coil supports and has suggested for modification. Implementation of the project by BHEL has also been taken up with the MoU Taskforce of the Ministry of Heavy Industries. BHEL has given a commitment to the Taskforce for commissioning of Unit-I by December 2013 and Unit-II by Jan.2014. However, BHEL subsequently assured to expedite the works and furnished a schedule to commission Unit-I in Sep.2013 and to take up the FBHE modification. Refractory dismantling work in FBHE of Unit-I has commenced to facilitate coil removal and it is nearing completion. Tube cutting works are in progress while modification and re-erection of FBHE coil in all the four FBHE of Unit-I is to be carried out. The works are being closely followed up with periodic review with BHEL and are also reviewed periodically by the Ministry of Coal and other agencies of GOI.

Approval has been accorded by your Board of Directors in April 2012 for the second Revised Cost Estimate of Rs.3027.59 crore for this project. The cumulative expenditure incurred up to 31st March, 2013 was Rs.2654.22 crore.

Neyveli New Thermal Power Project (2x500 MW)

Government of India (GOI) has sanctioned the Neyveli New Thermal Power Project (1000 MW) at a capital cost of Rs.5907.11 crore in June 2011 with a commissioning schedule of 48 months and 54 months for Unit-I & II respectively, from the date of sanction. Two units of 500 MW each have been proposed to be set up as a replacement of the existing 600 MW TPS-I which has served for more than 50 years. This power station will adopt pulverised fuel firing technology. Tenders have been floated for Main Plant Packages and Balance of Plant Package and evaluation of the same is in progress. The cumulative expenditure incurred up to 31st March, 2013 was Rs.28.00 crore.

Restructuring of Mines

Members may be aware that the existing TPS-I of 600 MW capacity at Neyveli is continuously in operation since 1962 and it has been decided by your Board of Directors to phase out the operation of the Units and to set up a 1000 MW thermal power plant at Neyveli viz., Neyveli New Thermal Power Station (NNTPS) in its place. As stated earlier, in order to meet the lignite requirement of NNTPS, your Board of Directors has accorded approval for restructuring of Mine-I (including Mine-I Expn.) from 10.5 to 8.0 MTPA and expansion of Mine-IA from 3.0 to 7.0 MTPA, at an aggregate estimated cost of Rs.1458.17 crore.

Wind (50 MW) & Solar (25 MW) Power Project

In order to harness green energy, your Company has proposed to enter into wind and solar based power generation. The proposed wind power project capacity is 50 MW and the estimated cost is Rs.364.75 crore. Tender has been floated for setting up of the above wind farm and the evaluation of the same is in process. In the first phase, a 10 MW capacity solar power plant is proposed to be set up at Neyveli at an estimated cost of Rs.85 crore and as an expansion another 15 MW project will be set up later. Setting up of a 10MW solar power plant at Barsingsar is also on the anvil.

Project Funding

In respect of Mine-II Expn. linked to TPS-II Expn. project and also for Barsingsar Mine-cum-Power project, your Company had availed long term loan of Rs.3575 crore from a consortium of domestic banks with Canara Bank as the consortium leader. In addition to the above, Euro 50 million in the form of foreign currency loan under External Commercial Borrowings (ECB) was availed besides issue of Secured Redeemable Taxable Non-convertible Bonds aggregating to Rs.600 crore for the said projects. So far a sum of Rs.1300 crore has been repaid on the term loan from Canara Bank consortium while the ECB has been repaid in full. To meet part of the debt requirement for the Neyveli New Thermal Power Project, your Company has tied up with State Bank of India for availing rupee term loan of Rs.2500 crore and the balance debt requirement will be met through various other options such as ECB, issue of Bonds etc.

Joint Venture Projects

Thermal Power Plant at Tuticorin (2x500 MW)

Members may be aware that a Coal based thermal power project at Tuticorin (1000 MW) is being implemented by your Company as a joint venture with Tamil Nadu Generation and Distribution Corporation Limited (TANGEDCO), through NLC Tamilnadu Power Limited (NTPL), the Subsidiary Company. Erection of Boiler structures, pressure parts, ESP, Air heaters, Ducts, Fans, TG and Mills in the Main Plant Package and Coal & Ash Handling Systems, Cooling Towers, Chimney and Switchyard etc., are in progress in both the Units. Hydro test of pressure parts of both the boilers was completed during the year. The physical progress of works as on 31st March, 2013 was 71.90%. As per the present status of the project, Unit-I is expected to be commissioned by December 2013 and Unit-II by March 2014.

Fuel linkage for this project is being tied up with Mahanadi Coalfields Limited (MCL), a Subsidiary Company of Coal India Limited. The formal Fuel Supply Agreement (FSA) will be entered into with MCL on completion of all the milestone activities prescribed by the Standing Linkage Committee (Long term) of Ministry of Coal. Excepting clearance from the Forest Department as some portion of the land leased by V.O. Chidambaranar Port Trust has been classified as forest land in the revenue records, all other prescribed milestone activities have been completed. The issue regarding obtaining clearance from the Forest Department has been taken up with the concerned Department and also with the Government of Tamilnadu.

Approval has been accorded by the Board of Directors of NTPL for the Revised Cost Estimate (RCE) of Rs.6540.93 crore and the same has been submitted to the Ministry of Coal for sanction. During the year 2012-13 an agreement was entered into with the Consortium of Bankers led by Bank of India for availing Rupee Term Loan of Rs.937 crore for implementation of the project. This is in addition to the Rupee Term Loan agreement of Rs.2500 crore entered into with Bank of Baroda Consortium and with this, the financial closure for the original sanctioned cost of Rs.4909.54 crore has been completed. The additional debt requirement on account of revision in the cost will be tied up after obtaining sanction from the Government. The cumulative expenditure incurred up to 31st March, 2013 was Rs.4128.29 crore.

MNH Shakti

MNH Shakti Limited is the Joint Venture Company (JVC) promoted by Mahanadi Coalfields Limited (MCL) holding 70% stake, Hindalco and your Company each holding 15% stake. The JVC is implementing a 20.0 MTPA coal mining project at Talabira, Odisha and MCL being the majority stakeholder is piloting the above project.

New Projects under formulation

NLC-UPRVUNL Ghatampur Thermal Power Project (3x660 MW)

In terms of MoU dated 30.11.2010 and Joint Venture Agreement dated 06.10.2012 entered into with Uttar Pradesh Rajya Vidyut Utpadan Nigam Limited (UPRVUNL), a Joint Venture Company (JVC) in the name and style of Neyveli Uttar Pradesh Power Limited (NUPPL) has been incorporated with equity participation in the ratio of 51:49 by NLC and UPRVUNL. The JVC will set up a 1980 MW (3x660 MW) coal based thermal power project in Ghatampur Tehsil, Kanpur Nagar District in the State of Uttar Pradesh at an estimated cost of Rs.14375 crore. The Public Investment Board (PIB) has recommended the above project proposal with the observation that necessary clearance from Ministry of Environment & Forest (MoE&F) is to be obtained at the earliest. The Public Consultation Meeting (Public Hearing) was held by the District Administration as part of the process involved for obtaining MoE&F clearance. The Project proposal will be submitted by the Ministry of Coal to the Cabinet Committee on Infrastructure for sanction shortly. Notifications under Sec.4 & 6 of the Land Acquisition Act, 1894 have been issued for acquisition of 1806 acres of land for the project and a sum of Rs.130.32 crore has been deposited with the Uttar Pradesh Revenue Department towards acquisition of land. The Government of Uttar Pradesh has accorded sanction for supply of 80 cu.secs of water for the above project.

In response to GOI invitation for allotment of coal blocks, NUPPL has been allocated Pachwara-South coal block in the State of Jharkhand. The development and exploitation of the above coal mine will be carried out by NUPPL for captive use for its Ghatampur Thermal Power Project.

Bithnok Thermal Power Project (250 MW) with linked Mine (2.25 MTPA)

Your Company has proposed to set up a Thermal Power Plant of 250 MW capacity with linked Mine of 2.25 MTPA at Bithnok in Bikaner District, in the State of Rajasthan at an estimated cost of Rs.2298.83 crore. The total land required for the Bithnok TPS and Mine is 2883 hectares. Government of Rajasthan has issued award for acquisition of 1175.87 hectares of private land in Bithnok village and the balance government land will be diverted to your Company by the Government of Rajasthan after acquisition of private land. No Objection Certificate from forest department is awaited for forest diversion. Issue of mining lease by Government of Rajasthan is expected after forest diversion. With regard to environmental clearance for the Mine Project, the Expert Appraisal Committee of MoE&F has advised to conduct social cost benefit analysis through a reputed institution. The work has been assigned to Madras School of Economics. MoE&F will be approached again for environmental clearance with social cost benefit analysis report.

Barsingsar Extension Power Project (250 MW) and Hadla & Palana Lignite Mine (2.5 MTPA)

Your Company, by exploiting the lignite deposits in Hadla and Palana lignite blocks, has proposed to set up a 250 MW Power Plant with linked Mine of 2.5 MTPA capacity, in Bikaner District of Rajasthan, as an extension of the existing Barsingsar Power Plant. The aggregate estimated cost of the project is Rs.2041.78 crore. Land acquisition for the said project through Government of Rajasthan is in progress. Action has already been initiated for obtaining mining lease. All statutory clearances for the Thermal Power Project and the Hadla mine project have been obtained. However your Company is facing difficulty in progressing with the Palana mine. Hence as a parallel course, expansion of the existing Barsingsar mine is also being planned by your Company.

Sirkali Thermal Power Project (4000 MW)

Your Company has also proposed to setup a 4000 MW coal based thermal power plant at Sirkali in the coastal district of Nagapattinam, Tamilnadu in two phases. The present cost estimate for the project is Rs.14482 crore for phase-I of 1980 MW. Site for locating the power plant has been identified at Thirumullaivasal and action has been initiated for acquisition of land through the Government of Tamil Nadu and for obtaining clearances from various statutory authorities. The Board of Directors had accorded approval for initiating pre-project sanction activities under Advance Action Proposal for a value of Rs.56.52 crore. Action has also been initiated for appointing a consultant for preparation of Feasibility Report, EIA/EMP Report and other pre-project activities. Your Company has been allocated Jilga-Barpali coal block in the State of Chhattisgarh to meet the fuel requirement for this project.

Devangudi Mine Project

Your Company proposes to develop the Devangudi lignite block, which has a mining area of about 8.56 Sq.km. and a mineable lignite reserve of 42.91 million tonnes, at an estimated cost of Rs.542.67 crore. The capacity of this Mine will be 2.0 MTPA and the lignite mined out will cater to the needs of industries such as cement, paper, brick and other small scale industries in the neighbourhood area.

Coal Assets

As stated in the Directors'' Report of the previous year, your Company had floated ''Expression of Interest'' (EOI) for acquiring coal assets abroad. The offers received in response to the above EOIs are under evaluation. Acquisition of coal assets by your Company would ensure fuel security for the coal based power projects of the Company.

Other Projects

Members may be aware, consequent to the change in the policy of power procurement by Distribution Companies through tariff based competitive bidding route, excepting such power projects for which PPA has been signed prior to 6th Jan. 2011 any new projects could be implemented only when the concerned Distribution Companies formally issue a notification for purchase of power through tariff based competitive bidding process. As stated in the previous year''s report, your Company had addressed to Ministry of Power through Ministry of Coal, seeking exemption from the above requirement for lignite based Power Projects for the reasons that coal and lignite cannot be equated on the same platform. In this regard, Ministry of Power has stated that lignite based power projects can be developed under Case-II bidding route. Under Case-II, the procurer (Distribution Companies) of power specifies location, specific project with specific fuel allocation such as captive mine. Lignite based power project can be set up through this mechanism only when such bids are invited by Distribution Companies who specifying that power should be generated using lignite available at the identified location. In view of the above, the Ministry of Coal has again been addressed to take up with the Ministry of Power to accord exemption to Lignite based Thermal Power Projects.

Power Tariff

The Central Electricity Regulatory Commission (CERC) initially constituted under the Electricity Regulatory Commission Act, 1998 is a statutory body governed by the Electricity Act, 2003 and has the responsibility to regulate the tariff of generating Companies owned or controlled by the Central Government and Generators having sale of electricity in more than one State. The terms and conditions of tariff regulations and tariff order for the period 2009-14 in respect of TPS- I, TPS-I Expn. and TPS-II have been issued by CERC. Tariff petition has been filed before CERC for the Barsingsar Power Plant and CERC during Oct.2012 has awarded provisional tariff for the power exported from this project.

Power Dues

As on 31st March, 2013, the total outstanding power dues from the beneficiaries is Rs.3802.37 crore and out of that the dues from TANGEDCO (erstwhile Tamil Nadu Electricity Board) alone was Rs.2473.97 crore (excluding surcharges). The realisation of power dues has been given top priority and the matter is being closely pursued with the beneficiaries. The Ministry of Coal has taken up the matter with the Government of Tamilnadu for early settlement of dues.

Research and Development (R&D)

Centre for Applied Research and Development (CARD) of your Company has been recognised by Department of Science and Technology since 1975 as an in-house R&D Centre. During the year 2012-13, in addition to eight in-house S&T projects, CARD has been carrying out two Coal S&T projects that mainly concentrate on corrosion problems in Specialised Mining Equipment (SME) in mines and development of suitable treatment to prevent erosion /corrosion in de-watering pipes in mines.

Members may be aware that your Company has already patented the process for the production of "Potassium Humate" from lignite through its R&D efforts. Commercialisation of the above patented process is carried out through National Research Development Corporation.

Further the R&D Centre of your Company jointly with Indian Institute of Technology, Kharagpur has applied for a patent for the process of production of Zeolite from lignite fly ash. Study on solid waste utilisation of bottom ash generated from thermal power stations as substitute for river sand is in progress.

CARD is entering into new developmental activities to cater to the requirement of the Company. In order to up-grade lignite to get higher calorific value and also to utilise the same in Ultra Super Critical Boiler (USCB), your Company has signed a Non-Disclosure Agreement with M/s.KOBELCO, Japan. Your Company is also interested to take up studies on Integrated Gasification Combined Cycle (IGCC), to improve the efficiency of power generation. It is also contemplated to undertake a study in association with firms having expertise in the field to produce diesel from lignite.

Human Resource

With a view to develop and maintain harmonious relationships at workplace and striking a balance between organisational goals and individual goals, your Company continues to have good HR practices and recognise the huge potential of its human resource. The thrust on achieving higher growth coupled with optimal utilisation of manpower continued. The focus on improving productivity and adoption of best practices in every area was relentlessly pursued. Efforts for active participation by employees has been at the core of HR initiatives and interventions. The total manpower of your Company as on 31.03.2013 was 17,364.

Employee Development

Your Company is imparting training/learning initiatives for skill, competency building and overall development of employees and also for the surrounding society. During the year under review, 542 in-house programmes in various categories such as General Management, Technical Training, Safety, Quality Training etc., covering 15,252 employees have been organised. In addition to the regular programmes, "Timeless Leadership Programme" was conducted in association with IIM/Kozhikode for Functional Directors. Focus has also been made on the development of the society at large including the Student community through conducting Entrepreneurial Development Programme benefiting around 9,000 people.

Industrial Relations

Thrust on participative culture continued during the year under review and the Industrial Relations in various Units and Service Divisions of your Company remained harmonious and cordial but for some minor aberrations of Contract labour strike.

Implementation of Official Language Policy

During the year 2012-13, your Company continued its thrust on official language implementation in line with the Government of India''s policy and the provisions prescribed under the Official Languages Act, 1963 and the rules made there under. Employees numbering 419 have been enrolled for courses like Prabodh, Praveen and Pragya through correspondence being conducted.

Hindi Fortnight was organised from 14.09.2012 to 28.09.2012 and Hindi Day was celebrated on 14th Sept. 2012. Various Hindi competitions were conducted among employees. Cash awards and Merit certificates were given to those employees who passed Hindi examinations and to the winners in the competitions. Also workshops with a focus on working in Unicode fonts on Computers were organised and about 193 employees participated and benefited.

Reservation of posts

Your Company has been following the rules of the Government of India with regard to reservation for SC and ST and the details of Group-wise Men-in-Position as on 31.03.2013 are as under:

Strength of SC/ST % of SC/ST Group Total Strength Total Total SC ST SC/ST SC ST SC/ST

A 4168 870 170 1040 20.87 4.08 24.95

B 237 23 124 147 9.70 52.32 62.02

C 11479 2322 117 2439 20.23 1.02 21.25

D 1480 341 10 351 23.04 0.68 23.72

Total 17364 3556 421 3977 20.48 2.42 22.90

Sustainability Development

Your Company firmly believes that sustainability has to be at the heart of the business model with focus on growth and less environmental impact. Your Company continues to carry on its mining and power generation activities in an environmentally sustainable manner. As a socially responsible Company, nine sustainable development projects have been taken up during the financial year 2012-13 that include eco restoration, ground water recharging, protection of bio-diversity, waste utilisation, sustainability training. Your Company has taken up collaborative sustainable development projects with Pondicherry Engineering College towards CO sequestration for producing bio-fuel from flue gas of Thermal Power Plants and Indian Institute of Technology, Kanpur for air pollution apportionment. Residual Life Assessment (RLA) studies of Turbine and replacement of final loop of Re-heater 2 coil in Unit-II (210 MW) of TPS-II have been taken up to improve reliability and operational efficiency.

Environmental Measures Reclamation and afforestation

Your Company is having a well developed Environment Management Plan since its inception and it has revisited its own Comprehensive Environment Policy to safeguard the environment in line with National and International standards. The Environmental Management Plan includes restoring the degraded mined out land, water conservation, waste utilisation and biodiversity conservation. The degraded mined out land is reclaimed to grow agricultural, horticulture crops, forestry, pasture etc., on a continuous basis. During 2012-13, an area of about 126 hectares of land has been reclaimed in all the three mines in Neyveli. As a part of massive afforestation programme, around 18 million trees have been planted so far in and around Neyveli Township. In addition, all out efforts are taken to reduce carbon foot print by implementing latest power generation technology like Circulating Fluidized Bed Combustion, installing best pollution control equipment and improving energy efficiency in processes. A Continuous Ambient Air Quality Monitoring Station is in operation in CARD with real time data display at various places in Neyveli.

All the operating Mines and Thermal Power plants are accredited with ISO 14001 (Environment Management) standards. In recognition of its excellent performance in Environment Management and Eco-care during the year 2012-13, your Company received the prestigious ''Indira Gandhi Paryavaran Puraskar Award-2009'' and has also bagged the prestigious Gold Trophy of "SCOPE Meritorius Award for Environmental Excellence and Sustainable Development" for the year 2011-12.

Safety

Your Company is taking concerted efforts in the industrial safety area. Risk Assessment and Safety Audit are conducted separately for Mines and Thermal Power Stations in regular periodicity by engaging accredited external agencies and their recommendations are implemented. Fire mock drills and emergency preparedness drills are conducted regularly. OHSAS 18001:1999 Certification is obtained for the Occupational Health & Safety for all Mines and Thermal Power Stations at Neyveli.

Zero accident potential was achieved for the year 2012-13 at both Mines and Thermal Power Station (TPS) at Barsingsar, TPS-II and TPS-I Expansion at Neyveli for the year 2012-13. Safety related trainings like Refresher, Basic, On-the-job, job related briefing etc., are being imparted to all sections of employees in well designed training centres like Group Vocational Training Centre in Mines, Thermal Training Centre and Employees Development Centre, besides general awareness campaign is conducted periodically.

Vigilance

Based on the suggestion of the Vigilance Branch, various circulars/guidelines have been issued for streamlining the rules/procedures etc. Vigilance Awareness Week - 2012 was observed in NLC from 29th October, 2012 to 3rd November, 2012 and the updated ''Compendium of CVC Circulars'' was released during the function. As greater transparency facilitates in improving the system & procedure and minimise the scope for corruption, all efforts are taken to improve the transparency by leveraging of technology through e-governance initiatives.

MoU with Transparency International

Members may be aware that your Company has signed a Memorandum of Understanding with Transparency International India, part of Asia Pacific forum comprising 20 nations. Transparency International India is the Indian chapter of Transparency International, an international civil society organisation based at Berlin that has turned the fight against corruption into a worldwide movement.

Township

Neyveli Township spread over 50 Sq.kms with about 21,000 residential quarters has a total population of about 1,35,000. The Township which was established in February 1959 has grown into a self-contained unit with all infrastructural facilities which include schools, college, sophisticated general hospital, library, swimming pools, air-conditioned auditorium, stadium, community welfare centre, recreation clubs, reading rooms, parks, banks, shopping complexes etc. The township is a plastic free zone as use of plastic is totally banned. Waste plastic recycling machine has also been erected and commissioned in Feb. 2012. About 2 tonnes of plastic pellets have been produced by using waste plastic materials collected from residential areas of Neyveli Township and such pellets are used for laying of roads. A 60 MLD water treatment plant is functioning to treat the mine water into potable water for supply to Township. A 30 MLD modern sewage treatment plant is also in operation. Township with all facilities has also been established in Barsingsar.

Medical Services

The General Hospital in Neyveli with 355 beds remains the major provider of service in various base specialties like emergency care, general medicine, surgery, paediatrics, obstetrics & gynaecology, eye, ortho, ENT, skin, psychiatry and chest medicine. The General Hospital undertakes programmes that address health issues at the five major levels of preventive, promotive, curative, rehabilitative and disability limitation strategies. The hospital contributes to the goal of conducting various National Health programme like Family Welfare Programme, Tuberculosis Control Programme, Leprosy Control Programme, Immunisation Programme, Aids Control Programme, Blindness Prevention Control Programme and Breast Feeding Promotion etc.

This hospital fulfils the statutory requirement of meeting the Occupational health and safety needs of miners as per the guidelines of Director General of Mines Safety (DGMS) and thermal employees under requirement of OHSAS18001. NLC''s Occupational Health Services (OHS) has been acclaimed as the centre of excellence. OHS-NLC is also the recognised centre for conducting medical examination to assess fitness of miners as per the directive of DGMS.

Corporate Social Responsibility

Your Company, as a socially responsible corporate citizen, has been carrying out development works in the surrounding villages, right from its inception.

- An Annual CSR budget of not less than 1% of the profit after tax has been created by your Company and the CSR projects are monitored periodically by a Sub-committee of Board of Directors. Your Board of Directors have sanctioned Rs.14.11 crore as budget for CSR projects for the year 2013-14.

- Base line survey is conducted by your Company before commencement of any CSR Projects.

- Time frames and various milestones are fixed before commencement of any Project.

- Initiatives of State Governments/Central Government Departments/Agencies are dovetailed/synergized with the CSR activities of your Company.

The CSR expenditure of your Company for the year 2012-13 is Rs.14.26 crore. The major CSR initiatives undertaken during the year 2012-13 are given below:-

CSR - Peripheral

From the year 1998, the system of executing capital works for the development of social infrastructure in the surrounding villages has been streamlined and a structured Peripheral Development Scheme is in operation for the benefit of the villages surrounding Neyveli. Under this scheme, infrastructure and development works like provision of drinking water by sinking/maintaining bore wells, construction of roads, school buildings, libraries, bridges, developing medical facilities, de-silting of lakes etc., are carried out. Works numbering 19 for a value of Rs.396.64 lakh have been completed during the year 2012-13 for the benefit of population in 16 peripheral villages, while 12 nos. of development works for an estimated value of Rs.837.90 lakh are in progress. Your Company provides water to nearby villages for irrigating over 23,000 acres of land.

CSR - Community

As part of CSR for the community at large, your Company has proposed to provide social infrastructure facilities to the lgloo village in Leh-Ladakh area which was devastated by cloud burst and consequent landslide during August 2010, at an approximate value of Rs.3 crore and this provision is in addition to the allocations under CSR budget. The recent unprecedented flood situation in Uttarakhand had resulted into a large scale damage to the people and property. As this was a national calamity, your Company as part of CSR initiative contributed Rs.2.5 crore to the Prime Minister''s Relief Fund. This was in addition to other CSR Projects taken up for the year 2013-14.

Since 1987, your Company has been extending all assistance including grant and infrastructure to Sneha Opportunity Services to run a day-care education and training centre for special children of the region. Moreover, Neyveli Health Promotion and Social Welfare Society patronised by your Company has been serving the society by supplying artificial limbs/calipers to the differently abled, apart from running a school for the hearing impaired and a Computer Centre imparting training for physically challenged, widows and destitute and gainfully employing them.

Your Company has been conducting various CSR focused training programmes for the benefit of the students, teachers and others of Neyveli region and 8,707 persons have been benefitted during the year 2012-13.

CSR - Education

Your Company recognises the importance of education in human development of the region and offers best education facilities to the students through its 13 schools - 3 Higher Secondary Schools, 2 High Schools, 5 Middle Schools and 3 Elementary Schools under its management. These schools have been providing education to the students from the peripheral villages also along with the wards of your Company''s employees.

Your Company extends infrastructural support and also periodical financial grants to Jawahar Education Society, which provides education not only to the wards of employees but also to the children of villages around Neyveli Township.

An Industrial Training Institute in Barsingsar village is functioning to impart technical skills in various trades to the population around the project site.

CSR - Health

Your Company also provides quality medical treatment and occupational health service through its General Hospital to all inhabitants of the Neyveli Township and its surrounding villages.

During the year 2012-13:

- Free medical consultation was extended in 1,79,972 instances of out-patient treatment to the rural public. 24,600 patients were given emergency treatment for various causes.

- Medical treatment identity books have already been issued to 10,200 eligible contract workmen for availing medical treatment for self and their family members including inpatient treatment at free of cost. Comprehensive health care services were rendered to more than 33,000 contract workmen and their dependents.

- Community Health Screening for diabetes, hypertension and HIV covering 14,814 persons during the Annual Book Fair and Safety Week Celebration and counseled for behavioural change.

- 24 medical camps were conducted in peripheral villages which are located within 15 Kilometer radius of Neyveli Township. 11,824 persons were health-screened and given medical advice and medicines in the camps.

- 4 Eye-camps were conducted in association with the "District Blindness Control Society" of Cuddalore in the identified villages, viz., Mangallore, Periayakurichi, Palakkollai and Eraiyur. 2,265 persons were screened for eye defects. In the follow-up, 232 patients have undergone Cataract Operation.

- From February 2013 onwards, your Company is providing nutritious food supplement to 272 HIV affected children belonging to the Cuddalore District HIV Positive Society, Cuddalore.

Contribution to the cause of Women

NLC Chapter of "Forum of Women in Public Sector" (WIPS) under the aegis of SCOPE is being patronised by your Company. Your Company provides all the requisite support to this forum in organising various programmes for the growth and development of women.

Visit of Parliamentary Committees

- Department related Parliamentary Standing Committee on Science & Technology, Environment & Forest, reviewed the steps taken to mitigate pollution in Steel, Power, Mines & Coal Sectors.

- Parliamentary Standing Committee on Industry reviewed MoU Performance of your Company.

- Study Tour Programme of the Parliamentary Standing Committee on Coal & Steel, reviewed the production of Coal & Lignite - Projections, Planning & Stock study.

- Department related Parliamentary Standing Committee on Industry, reviewed the capacity addition and expansion of manufacturing facilities.

Awards & Recognition

Awards received by your Company during the year 2012-13 are given below:

- Gold Trophy of "SCOPE Meritorius Award for Environmental Excellence and Sustainable Development" for the year 2011-12.

- ''Indira Gandhi Paryavaran Puraskar Award 2009'', (Organisational Category) instituted by Union Ministry of Environment and Forests appreciating the outstanding contribution in the area of environment conservation and creating environment awareness.

- ''India Power Award 2012'' instituted by Council of Power Utilities for developing the energy sector.

- ''IPE CSR Corporate Governance Award'' instituted by Institute of Public Enterprises for the dedicated service to the society.

Compliance under Persons with Disabilities Act, 1995

Your Company ensures compliance of provisions under the Persons with Disabilities Act, 1995. Suitable arrangements/modifications are made in the working place to meet the requirements of persons with disability.

Compliance under the Right to Information Act, 2005

Your Company ensures compliance under the Right to Information Act, 2005. A Central Public Information Officer, two Appellate Officers, one Transparency Officer and seventeen Central Assistant Public Information Officers representing different functional areas have been nominated to attend to the queries and appeals received under the RTI Act in a time bound manner.

During the year 2012-13, 352 number of requests containing 1739 queries were received and as on the date of this report 1727 requests have been complied with.

Compliance under Public Procurement Policy

The Ministry of Micro, Small and Medium Enterprises (MSME) has notified the Public Procurement Policy. In terms of the above notification, an annual target for procurement from MSME was set for the three years beginning from the FY 2012-13. The target set for the FY 2012-13 for procurement of such items which are within the scope of MSMEs was 10% and as against the same the achievement was 27.14%.

Citizen''s Charter

Your Company maintains Citizen''s Charter, indicating details of clients, customers under different heads, system of redressal of grievance etc., and the same is regularly updated.

Particulars of Employees

Particulars of Employees as required under Section 217 (2A) of the Companies Act, 1956, read with the Companies (Particulars of Employees) Rules, 1975 - Nil.

Energy Conservation and Research & Development

The particulars required under Section 217(1)(e) of the Companies Act, 1956 read with the Companies (Disclosure of particulars in the Report of the Board of Directors) Rules, 1988 regarding energy conservation measures, technology absorption and expenditure on R&D are furnished in Annexure-1.

Management Discussion & Analysis Report and Report on Corporate Governance

The Management Discussion & Analysis Report is furnished in Annexure-2. The report on Corporate Governance and the Auditors'' Certificate on the compliance of Corporate Governance conditions stipulated by Clause-49 of the Listing Agreement and DPE guidelines are furnished in Annexure-3 and 4 respectively.

Auditors Cost Audit

M/s. M. Krishnaswamy & Associates, Cost Accountants, were appointed as the Cost Auditors for the year 2012-13, to carry out the cost audit for the Mines & Power Stations of the Company. The Cost Audit Report for the year 2011-12 was filed with the Ministry of Corporate Affairs on 15.01.2013 against the due date of 28.02.2013.

Branch Audit

M/s. Surender K Goyal & Co., Chartered Accountants, has been appointed as the Branch Auditors for the year 2012-13 by Comptroller and Auditor General of India (C&AG) for conducting the audit of Mine and Thermal Units at Barsingsar.

Statutory Audit

M/s. L.U. Krishnan & Co., Chartered Accountants and M/s. Sreedhar, Suresh & Rajagopalan, Chartered Accountants, were appointed by the C&AG as Joint Statutory Auditors for the year 2012-13 under Section 619 (2) of the Companies Act, 1956. The Board of Directors of the Company has fixed Rs.12 lakh plus applicable service tax as the Statutory Audit fees, to be shared equally by the Joint Statutory Auditors in addition to reimbursement of out of pocket expenses at actual.

C&AG''s Comments

C&AG''s comments on the accounts for the year ended 31st March 2013 is furnished in Annexure-5.

Directors'' Responsibility Statement as per Section 217(2AA) of the Companies Act, 1956

The Board of Directors declares:

a. that in the preparation of the annual accounts, the applicable accounting standards had been followed along with proper explanation relating to material departures;

b. that the Directors had selected such accounting policies and applied them consistently and made judgments and estimates that are reasonable and prudent so as to give a true and fair view of the state of affairs of the Company at the end of the financial year and of the profit of the Company for that period;

c. that the Directors had taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions of the Companies Act for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities;

d. that the Directors had prepared the annual accounts on a going concern basis.

Board of Directors

Shri. N. Sundaradevan, the then Principal Secretary to the Government of Tamil Nadu relinquished the Directorship on 30.09.2012 consequent on his superannuation.

Shri. Vikram Kapur, the then Principal Secretary to the Government of Tamil Nadu (GOTN), Industries Department was appointed as a Director w.e.f.14.11.2012 and Shri. Vikram Kapur held the office till 18.12.2012. Shri. N.S. Palaniappan, Principal Secretary to GOTN, Industries Department has been inducted into the Board as an Additional Director w.e.f. 16.01.2013.

Ms. Zohra Chatterji, the then Special Secretary, Ministry of Coal (MOC), Government of India(GOI), relinquished the Directorship w.e.f.01.02.2013. Dr. A.K. Dubey, Additional Secretary, MOC, GOI has been inducted into the Board as an Additional Director w.e.f. 03.04.2013.

Shri. J. Mahilselvan relinquished the position of Director on 28.02.2013 on attaining the age of superannuation. Shri. S. Rajagopal and Shri. M.S. Ravindranath have been inducted into the Board as Additional Directors w.e.f. 01.03.2013 and 23.04.2013 respectively.

The Board places on record its appreciation for the valuable contribution made by Ms. Zohra Chatterji, Sarvashri N. Sundaradevan, Vikram Kapur and J. Mahilselvan during their tenure as Directors on the Board of the Company.

Sarvashri Sarat Kumar Acharya, R.K. Mishra, M.M. Sharma and A.P.V.N. Sarma, Directors, retire by rotation at the forthcoming Annual General Meeting and being eligible offer themselves for re-election.

Acknowledgement

The Board of Directors of your Company places on record its sincere appreciation for the continued support and guidance extended by the Ministry of Coal, Ministry of Power, Ministry of Finance, Ministry of Environment & Forest, Ministry of Industry, Ministry of Labour, Ministry of Heavy Industries, Planning Commission, Central Electricity Authority, Central Electricity Regulatory Commission, State Electricity Boards and beneficiaries of Tamil Nadu, Andhra Pradesh, Karnataka, Kerala, Puducherry and Rajasthan and also the Joint Venture partners viz., Tamil Nadu Generation and Distribution Corporation Limited (TANGEDCO), Uttar Pradesh Rajya Vidyut Utpadan Nigam Limited (UPRVUNL), Mahanadi Coalfields Limited (MCL) and Hindalco.

The Board of Directors of your Company is pleased to acknowledge with gratitude the co-operation and continued support extended by the Government of Tamil Nadu and the Cuddalore District Administration. The Board also pleased to acknowledge the support extended by Government of Rajasthan and Uttar Pradesh and also the respective State Departments. The support and co-operation by the Comptroller and Auditor General of India, the Statutory Auditors, Director General of Mines Safety, the Factory & Boiler Inspectorates, the Chief Inspector of Factories, the Director of Boilers, Central Pollution Control Board, State Pollution Control Board, Chief Controller of Explosives, Regional Labour Commissioner, Regional Provident Fund Commissioner, the Company''s Bankers and KfW of Germany need special mention and the Directors acknowledge the same.

Your Directors also wish to place on record their appreciation for the dedicated work put forth by the employees at all levels. The positive role played by the recognised Trade Unions and Associations of the Engineers and Officers in maintaining cordial industrial relations deserves special mention.

for and on behalf of the Board of Directors PLACE : Chennai B. SURENDER MOHAN

DATE : 15.07.2013 CHAIRMAN-CUM-MANAGING DIRECTOR

---

Mar 31, 2012

To The Members of Neyveli Lignite Corporation Limited

The Directors are pleased to present the 56th Annual Report of your Company together with the audited accounts for the year ended 31st March, 2012. Your Directors are happy to inform that your Company has once again achieved a record performance in lignite production, generation and export of power during the financial year 2011-12.

Snapshot of Physical Performance

Particulars 2011-12 2010-11 Growth (%)

Overburden removal (in LM3) 1651.47 1633.45 1.10

Lignite Production (in LT) 245.90 231.44 6.25

Power Generation - Gross (in MU) 18789.44 17881.08 5.08

Power Export (in MU) 15810.67 14971.26 5.61

LM3-Lakh Cubic Metre LT-Lakh Tonnes MU-Million Units Highlights

- Highest removal of Overburden in any year since inception.

- Highest production of lignite in any year since inception.

- Highest generation (gross) and export of power in any year since inception.

- Overburden removal at 828.05 LM3from Mine-ll - highest in any year since inception.

- Lignite production of 130.96 LT from Mine-ll - highest in any year since inception.

- Power generation (gross) at 11087.65 MU and the export of power at 9278.76 MU from TPS-II - highest in any year since inception.

Segment-wise Performance Mines

The aggregate installed capacity of lignite mines stands at 30.6 MTPA as on 31st March, 2012. Overall, the physical performance of Mines during the year 2011 -12 was excellent as compared to the previous year 2010-11. The detailed Mine-wise performance are as under:

Mine-1 (including expansion) -10.5 MTPA

The overburden removal from this Mine during the year 2011-12 was 528.17 LM3 as against 523.08 LM3 in 2010-11, registering a growth of 0.97%. Lignite production during the year under review was 77.34 LT as compared to 83.05 LT registered during the year 2010-11. Lignite production was affected due to lignite seam washout conditions for about 300 x 200 metre area. As informed in the Directors' Report of the previous year, the restructuring of Mine-1 & IA by adding contiguous lignite blocks to raise the aggregate mining capacity to 15.0 MTPA is in process. The restructuring of the mines is necessitated so as to meet the fuel requirement of the new thermal power project of 1000 MW capacity which is the replacement of the existing 600 MW capacity TPS-I.

Mine-IA-3.0 MTPA

The overburden removal from this Mine during the year 2011-12 was 215.10 LM3 as against 211.91 LM3 in 2010-11, registering a growth of 1.51%. Lignite production during the year 2011-12 was 28.77 LT compared to 27.19 LT during 2010-11, registering a growth of 5.81 %.

Mine-ll (including expansion)-15.0 MTPA

The performance of Mine-ll during the year 2011-12 in terms of overburden removal and lignite production was excellent, achieving the highest ever since the inception. The overburden removal from this Mine was 828.05 LM3 as against 802.55 LM3 during the year 2010-11, registering a growth of 3.18%, while the lignite production during the year under review was 130.96 LT compared to 117.11 LT during 2010-11, registering a growth of 11.83%. Approval has been accorded by your Board of Directors in April 2012 for the Revised Cost Estimate ofRs. 2125.83 crore for the Mine-ll Expansion Project.

Barsingsar Mine -2.1 MTPA

During the year 2011 -12, overburden removal and lignite production were 80.15 LM3 and 8.83 LT respectively, as against 95.91 LM3 and 4.09 LT, respectively, during the previous year 2010-11. As Members may be aware, because of sufficient exposure of lignite, the overburden removal was restricted during the year under review. As regards lignite production, the units of linked Thermal Power Plants were declared for commercial operation only during Dec. 2011/Jan. 2012 and hence the lignite production during the year 2011-12 was restricted to match with the fuel requirement of the power plant. Approval has been accorded by your Board of Directors in March 2012 for the Revised Cost Estimate of Rs. 218.05 crore for this project.

Power

With the declaration of commercial operation of both the thermal units of Barsingsar project during the year 2011-12, the installed capacity of thermal power generation of your Company stands increased to 2740 MW as on 31st March, 2012. Your Company has set a new record in generation and export of power during the year 2011 -12. Plant-wise performance details are as under:

Thermal Power Station-I (600 MW)

During the year 2011-12, power generation and export from this plant were 3987.85 MU and 3171.82 MU, respectively, compared to 3878.65 MU and 3088.83 MU, respectively, during the year 2010-11, registering a growth of 2.82% and 2.69% respectively. This plant is one of the oldest power plants in the Country, serving for more than 40 years, with Unit-I of this plant performing for the last five decades. Considering its age, achieving a Plant Load Factor (PLF) of75.67% by this plant is a remarkable achievement.

Thermal Power Station-I Expansion (420 MW)

The power generation from TPS-I Expansion was 3042.68 MU during the year 2011 -12 as against 2997.04 MU in 2010-11, registering a growth of 1.52% and the power exported during the year under review was 2809.97 MU as against 2743.44 MU during the year 2010-11, registering a growth of 2.42%. This Station achieved a PLF of82.47%.

Thermal Power Station-ll (1470 MW)

The performance of TPS-II during the year 2011-12 was excellent as the generation and the export of power from this plant were the highest since inception. Power generation during the year 2011-12 was 11087.65 MU as against 10739.78 MU, registering a growth of 3.24% and the export to the Southern Grid during the year under review was 9278.76 MU compared to 8945.55 MU in the year 2010-11, registering a growth of 3.73%. This plant achieved a PLF of 85.87% during the year under | review.

Barsingsar Thermal Power Station (250 MW)

Unit-I of Barsingsar Thermal Power Plant was declared for commercial operation during Jan. 2012, while Unit-I I was declared during Dec.2011. The total power generation upto 31st March, 2012 was 617.68 MU and 510.79 MU were exported to Rajasthan DISCOMS. Approval has been accorded by your Board of Directors for the second Revised Cost Estimate of Rs.1868.71 crore in March 2012forthis project.

Productivity

The output per man shift during the year 2011 -12 as compared with the previous year is given below:

Product Unit 2011-12 2010-11 Growth

Lignite Tonne 11.18 11.00 1.64%

Power Kw./hr 20130 17780 13.22%

Financial Performance

During the year ended 31st March, 2012 the Company registered a total sales of Rs.4866.85 crore against Rs.4295.95 crore recorded for the year 2010-11, registering a growth of 13.29%. The sales registered for the year 2011-12 was the highest ever since inception. The Profit Before Tax (PBT) and the Profit After Tax (PAT) for the year 2011-12 were Rs.1983.89 crore and Rs.1411.33 crore, respectively, as against Rs.1684.55 crore and Rs.1298.33 crore, respectively, for the year 2010-11. As compared to the previous year 2010-11, the PBT and the PAT for the year 2011-12 recorded a growth of around 18% and 9%, respectively. The PBT and the PAT for the year ended 31st March, 2012 were the highest for anyyear since inception.

The main reason for increase in the profit for the year 2011-12 was on account of higher lignite production, higher generation and export of power which had resulted in increased sales. The operation of Barsingsar Power Plant in the last quarter of the financial year 2011 -12 had also contributed for registering higher sales.

The details of profit earned for the financial year ended 31st March, 2012 and appropriation of the same in comparison with the previous year ended 31st March, 2011 are asunder:

(Rs. in crore)

2011-12 2010-11

Profit before tax 1983.89 1684.55

Tax provision 572.56 386.22

Profit after tax 1411.33 1298.33

Appropriation:

Transfer to

Bond Redemption Reserve 15.00 15.00

Interest Differential Fund Reserve 18.08 15.25

General Reserve 145.00 130.00

Proposed Dividend 469.76 385.87

Tax on proposed Dividend 76.21 62.60

Dividend

The Board of Directors of your Company has recommended a dividend of 28% (Rs.2.80 per share) for the year 2011-12 (previous year 23%). The total outgo on account of dividend including distribution tax will be Rs.545.97 crore (previous year Rs.448.47 crore), which works out to 38.68% on Profit After Tax (PAT) for the year2011-12.

Projects under construction/implementation Thermal Power Station-ll Expansion (2x250 MW)

Thermal Power Station-ll Expansion project linked to Mine-ll Expansion is under implementation for expanding the capacity of TPS-II from 1470 MW to 1970 MW. Unit-I was synchronised with the designated fuel in June 2011 and is in the process of stabilisation. This unit generated in-firm power of53.58 MU (Gross) during the year under review. As regards Unit-ll, construction activities are in progress. Declaration of commercial operation of Unit-I is expected in October 2012 and the Unit-ll in March 2013. Execution of works by M/s. BHEL, the Main Plant Package contractor, is being closely monitored and periodically reviewed for early commissioning of the units. Approval has been accorded by your Board of Directors in April 2012 for the second Revised Cost Estimate of Rs.3027.59 crore for this project. The cumulative expenditure incurred upto 31st March, 2012 was Rs.2394.54 crore.

Neyveli New Thermal Power Project (2x500 MW)

Government of India (GOI) has sanctioned the Neyveli New Thermal Power Project (1000 MW) at a capital cost of Rs.5907.11 crore in June 2011 with a commissioning schedule of 48 months and 54 months for Unit-I & II respectively, from the date of sanction. Tendering activities for Main Plant Packages and Balance of Plant Package are in progress. The cumulative expenditure incurred upto 31st March, 2012 was Rs.14.47 crore.

Wind Power Project (50 MW)

Your Company has proposed to enter into generation of green power by setting up a wind power project of capacity of 50 MW at an estimated cost of Rs.364.75 crore. Tender has been floated for setting up of the above wind farm.

Solar Power Project

Your Company has also proposed to set up a 25 MW Solar Power Project to be located in Neyveli and in the first phase 10 MW capacity solar power plant is to be set up at an estimated cost of Rs.133.19 crore. Tender has been floated for design, engineering, manufacture, supply, transport, storage, erection, testing and commissioning of the above 10 MW Solar PV power plant.

Joint Venture Projects

Thermal Power Plant at Tuticorin (2x500 MW)

Coal based thermal power project at Tuticorin (1000 MW) is being implemented by your Company as a joint venture with Tamil Nadu Generation and Distribution Corporation Limited (TANGEDCO), at a sanctioned cost of Rs.4909.54 crore through NLC Tamilnadu Power Limited, the Subsidiary Company. Drum lifting for both the units has been completed in September 2011. Construction of dedicated coal jetty for transportation of coal to the power plant is in advanced stage of completion. Erection of boilers, coal and ash handling plants, switchyard, chimney and cooling towers are in progress. Contract for shore un-loader has been awarded and in respect of coal washery and logistics and other peripheral works tenders have been floated and are in process. Fuel linkage for this project is being tied up with Mahanadi Coalfields Limited, a subsidiary Company of Coal India Limited. The Unit-I is expected to be commissioned in Dec. 2013 and Unit-ll in March 2014. The project activities are closely monitored for early commissioning. The cumulative expenditure incurred upto 31st March, 2012 was 12768.27 crore.

MNH Shakti

MNH Shakti Limited is the Joint Venture Company (JVC) promoted by Mahanadi Coalfields Limited (MCL) holding 70% stake, Hindalco and your Company, each holding 15% stake. The JVC is implementing a 20.0 MTPA coal mining project at Talabira, Odisha and MCL being the majority stakeholder is piloting the above project.

Project Funding

To meet part of the debt requirement for the Neyveli New Thermal Power Project, your Company has tied up with State Bank of India for availing rupee term loan of Rs.2,500 crore and the balance debt requirement will be met through various other options such as External Commercial Borrowing (ECB), issue of Bonds etc. Your Company has also availed long term loan of Rs.3,495 crore for the expansion project from a consortium of domestic banks with Canara Bank as the consortium leader and so far a sum of Rs.937.50 crore has been repaid. In addition to this, Euro 50 million in the form of foreign currency loan under ECB and issue of secured redeemable taxable non-convertible bonds aggregating to Rs.600 crore were also availed for the expansion projects. The above ECB was repaid during the year 2011-12.

New Projects under formulation

As stated in the Directors' Report of the previous year 2010-11, your Company is pursuing the following projects for which Power Purchase Agreements have been entered into with the respective beneficiaries:

Bithnok Thermal Power Project (250 MW) with linked Mine (2.25 MTPA)

Your Company has proposed to set up a Thermal Power Plant of 250 MW capacity with linked Mine of 2.25 MTPA at Bithnok in Bikaner District, in the State of Rajasthan at an estimated cost of Rs.2,298.83 crore. The total land required for the Bithnok TPS and Mine is 2883 hectares and the acquisition of the same through Government of Rajasthan is in process. Government of Rajasthan has been approached for issue of Mining lease for the proposed Mine project. With regard to environmental clearance for the Mine Project, the proposal is under consideration of Expert Appraisal Committee. Being a 'Navratna' Company, the project will be considered for implementation by your Board of Directors on receipt of environmental clearance.

Barsingsar Extension Power Project (250 MW) and Hadla & Palana Lignite Mine (2.5 MTPA)

Your Company, by exploiting the lignite deposits in Hadla and Palana lignite blocks, proposes to set up a 250 MW Power Plant with a linked Mine of 2.5 MTPA capacity, in Bikaner District of Rajasthan, as an extension of the existing Barsingsar Power Plant. The aggregate estimated cost of the project is Rs.2,041.78 crore. Land required for the said project will be acquired through Government of Rajasthan and a proposal has been submitted for grant of mining lease. As far as the power project is concerned, proposal has been placed before MOE&F for issue of environmental clearance and on receipt of the same your Board of Directors will consider the project for implementation.

NLC-UPRVUNL Ghatampur Power Project (1980 MW)

Your Company has entered into an Moll with Uttar Pradesh Rajya Vidyut Utpadan Nigam Limited (UPRVUNL) for formation of a Joint Venture Company with equity participation in the ratio of 51:49 to set up a1980 MW (3x660 MW) coal based thermal power project in Ghatampur Tehsil, Kanpur Nagar District in the State of Uttar Pradesh at an estimated cost of Rs.11,128 crore. The Cabinet Committee on Infrastructure (CCI) has approved the above joint venture proposal and the Joint Venture Agreement will be entered into with UPRVUNL shortly. Government of Uttar Pradesh has issued necessary notification for acquisition of about 763 hectares of land and has also allocated 80 cu.secs of water for the project. Ministry of Coal has been approached to allocate coal blocks with an extractable reserve of 600 million tonnes for the above project. Preparation of Feasibility Report and EIA/EMP reports are under progress.

Sirkali Thermal Power Project (4000 MW)

Your Company has also proposed to set up a 4000 MW coal based power plant at Sirkali in the coastal district of Nagapattinam, Tamilnadu in two phases at an estimated cost of Rs.10,395 crore for phase-l of 1980 MW. Site for locating the power plant has been identified at Thirumullaivasal and action has been initiated for acquisition of land through Government of Tamilnadu and for obtaining clearances from various statutory authorities. Ministry of Coal has been approached for allotment of coal blocks for the above project.

Devangudi Mine Project

Your Company proposes to develop the Devangudi lignite block, which has a mining area of about 8.2 Sq.Km and a mineable lignite reserve of 42.5 million tonnes, at an estimated cost of Rs.358 crore. The capacity of this Mine will be 2.0 MTPA and the lignite mined out will cater to the needs of cement, paper, brick and other small industries in the neighbourhood area.

Restructuring of Mines

The TPS-I with a capacity of 600 MW is linked to Mine-I. As stated earlier, since TPS-I is proposed to be replaced with a higher capacity plant of 1000 MW (NNTPS) it has been proposed to take up re-structuring of existing

Mine-1 and Mine-IA by adding contiguous lignite blocks for enhancing the aggregate capacity from 13.5 MTPA to 15.0 MTPA to meet the enhanced requirement of lignite of the proposed new plant. Detailed working is in process.

Coal Assets

As Members may be aware, India is experiencing severe shortage of coal as the domestic demand exceeds the supply. In order to overcome the situation, the Government of India has given guidelines to acquire coal assets abroad so as to have assured long term energy security. The MoU Task-force of GOI has also included 'floating of EOI for acquiring/acquisition/formation of JV for assets abroad' as one of the MoU parameters for your Company for the year 2012-13. In line with the above, your Board of Directors has accorded approval to initiate action within the guidelines of DPE for acquisition of raw material assets abroad to meet the partial/full coal requirement of projects of your Company in various places which are under implementation/formulation. Your Company is also exploring the possibility to tie up with State Governments who are in possession of coal blocks.

Other Projects

As discussed in the last year's report, consequent to the change in the policy of power procurement by States through competitive based tariff route, excepting power projects for which PPA has been signed prior to 6th January, 2011, all other projects could be implemented only when the concerned beneficiaries formally issue a notification for purchase of power through competitive bidding process. In this regard your Company has addressed to Ministry of Coal seeking exemption from the above requirement for lignite based Power projects and the same is awaited. Under these circumstances, it has been decided by the Board of Directors of your Company to keep in abeyance the other envisaged lignite based projects viz., 1000 MW TPS-III linked to 8.0 MTPA (Mine-Ill) in Neyveli and 1000 MW Power Project linked to 8.0 MTPA lignite mine in South Gujarat and not to pursue the 1600 MW Thermal Power project linked to 13.5 MTPA capacity lignite Mine at Jayamkondam and the coal based power project in Odisha. However, on the invitation by the Government of Odisha, your Company has taken initiative to explore the possibility of setting up a power plant as a Joint Venture project with an entity of Government of Odisha.

Power Tariff

The Central Electricity Regulatory Commission (CERC) initially constituted under the Electricity Regulatory Commission Act, 1998 is a statutory body functioning under the Electricity Act, 2003 and has the responsibility to regulate the tariff of generating Companies owned or controlled by the Central Government and Generators having sale of electricity in more than one State. The terms and conditions of tariff regulations for the period 2009-14 were notified by CERC and tariff orders in respect of TPS-I, TPS-I Expn. and TPS-II have been issued by CERC for the above period. Tariff petition has been filed before CERC for the Barsingsar Power Plant for finalising the tariff for the period from the date of declaration of commercial operation till 31.03.2014. Petitions have been filed separately before CERC for each power station TPS-I, TPS-I Expn. and TPS-II for the revision of O&M norms for the period 2007-08 and 2008-09 on account of wage revision with effect from 01.01.2007 and other pay hikes and revision of annual fixed charges accordingly.

Research and Development (R&D)

An in-house R&D centre "CARD" recognised by Department of Science and Technology is functioning since 1975. This Centre takes up various R&D projects on its own and also in association with premier academic institutions in the area of lignite utilisation, waste land reclamation, solid waste utilisation, utilisation of bottom ash generated from thermal plants, corrosion management in SMEs & storm water control pumps etc., besides Coal Science & Technology (Coal S&T) projects funded by Ministry of Coal. Your Company has already patented the process for the production of "Potassium Humate" from lignite through its R&D efforts. Commercialisation of the above patented process for the production of Potassium Humate is being carried out through M/s. National Research Development Corporation. Further, based on the study conducted in association with IIT/Kharagpur, a bench scale production facility has been erected at CARD to establish the production of Zeolite from fly ash. Process for the preparation of Zeolite from Neyveli fly ash has been optimised and patenting the process is in progress.

Your Company is on the look out for any viable project which could offer new avenues for growth in lignite. In this regard, as part of R&D initiative, it is contemplated to undertake a study to produce high strength and high heat value pellets from lignite by reducing the inherent high moisture content which is in the range of 50-55%. This process would increase the calorific value of the lignite from the level of 2600 to 5300 Kcal/kg and would also transform the lignite into a stable and transportable block in the form of pellets for use by various industries. In this regard, it has been decided by the Board of Directors to take up the above process initially at laboratory scale by the in-house R&D Centre in collaboration with other institutions and if the results are found to be techno-economically viable, the process could be enlarged to a larger scale.

Human Resource

Your Company recognises the potential of human resource in providing competitive advantage and considers its employees as the most valuable resource. The Company has achieved its present level of excellence "Navratna" Status through investing and nurturing in its human resource. Your Company continues to work for developing capabilities and realisation of best potential of its people. The thrust on achieving higher growth coupled with optimal utilisation of manpower continued. The focus on improving productivity and adoption of best practices in every area was relentlessly pursued. Efforts for active participation by employees, has been at the core of HR initiatives and interventions. Strategic alignment of HRM to business priorities and objectives facilitated steps for ensuring a smooth transition for upcoming new facilities. The total manpower of your Company as on 31.03.2012 was 17,733.

Employee Development

In pursuit of creating a learning organisation, your Company is carrying out training/learning initiatives for skill, competency building and overall development of employees and surrounding society. Your Company has organised 331 in-house programmes in various categories like general management, technical training, safety, quality training etc., covering 13,034 employees.

Industrial Relations

Thrust on participative culture continued during the year and the industrial relations in various Units and Service Divisions of your Company remained harmonious and cordial. The executives and employees were committed towards the growth of your Company.

Implementation of Official Language Policy

During the year 2011-12, your Company continued its thrust on official language implementation in line with Government of India's policy on Official Languages Act, 1963 and Official Languages Rules, 1976. The employees are encouraged to learn Hindi and also to enroll for courses like Prabodh, Praveen and Pragya through correspondence courses and so far a total of 278 employees have enrolled for the same. Hindi Fortnight was organised from 14.09.2011 to 28.09.2011 and the Hindi Day was celebrated on 14th September, 2011. Various Hindi competitions were conducted among employees and cash awards and merit certificates were distributed. Your Company also organised workshops with a focus on working in Unicode fonts on Computers and about 193 employees participated and benefited.

Reservation of posts

Your Company has been following the rules of the Government with regard to reservation for SC and ST and the details of Group-wise Men-in-Position as on 31.03.2012 are as under:

Strength of SC/ST Total Group Strength SC ST Total SC/ST

A 4,022 829 164 993

B 116 30 14 44

C 11,908 2,488 118 2,606

D 1.687 363 10 373

Total 17,733 3,710 306 4,016

Group % of SC/ST Total SC ST SC/ST

A 20.61 4.08 24.69

B 25.86 12.07 37.93

C 20.89 0.99 21.88

D 21.52 0.59 22.11

Total 20.92 1.73 22.65

Sustainability Development Projects

The Department of Public Enterprises has issued the Sustainable Development (SD) guidelines making it mandatory for the CPSE to include SD as a compulsory element in their Moll, under the non financial parameters with mandatory weightage of 5%. In terms of the above guidelines your Company has proposed to take up SD projects in the area of ecology, reclamation and re-use of land in Mines, development of eco-tourism park in Neyveli township, completion of Residual Life Assessment (RLA) studies of Turbine and replacement of final loop of Re-heater 2 coil in one Unit (210MW) of TPS-II, mandatory training programme on SD for students, sequestration of C02 and production of Bio-fuel from flue gas from Thermal Power Plant, Pollution Source Apportion Study for Neyveli industrial area, Water Management-Recharging of Ground Water, utilisation of fly ash in making Brick/Window and renewable energy project (Solar PV Power Project). The Board of Directors has allocated a budget provision of Rs.1.28 crore to take up the above projects which will be implemented from the year 2012-13.

Environmental Measures Reclamation and afforestation

Reclamation of mine spoil with sterile soil and bringing the mined out land suitable for agricultural, horticulture crops and development of forestry, pasture land etc., is continued. So far, an area of about 2118 hectares of land has been reclaimed besides carrying out afforestation activities in an area of about 1869 hectares of land in all the three mines. As part of massive afforestation programme around 18 million trees have been planted so far in and around Neyveli Township. The recent 'Thane' cyclone had a devastating impact on Neyveli eco system. About 2.5 lakh trees were lost in the plantation area besides loss of avenue trees on the road side and residential area. Steps have been taken to make up the loss of trees by planting more tree sapling in the industrial area and distribution of about 2.0 lakh fruit bearing tree species like cashew, mango, jack, gooseberry etc., to residents in and around Neyveli to balance the eco system. A continuous Ambient Air Quality Monitoring Station is in operation in CARD with real-time data display at various places.

Safety

Your Company is taking pioneering efforts in the industrial safety area by conducting risk assessment and safety audit for Mines and Thermal Power Stations in regular periodicity. Since the year 2004-05, your Company has been achieving 'Excellent' level in terms of accident rate per million mandays in the MoU entered into with the Ministry of Coal, indicating low accident rates. In addition to this overall achievement, zero accident potential has been achieved for the year 2011-12 at TPS-1 & TPS-I I at Neyveli and Mine at Barsingsar. Safety related training like basic, refresher, on-the job, job related briefing etc., are being imparted to all sections of employees in well designed training centres like Group Vocational Training Centre in Mines and Employees Development Centre. Through this exercise, there is a considerable increase in the level of safety awareness among the employees.

Vigilance

Based on the suggestion of the Vigilance Branch, various circulars/guidelines have been issued for streamlining the rules/procedures etc. Vigilance Awareness Period-2011 was observed in NLC from 31st October, 2011 to 5th November, 2011 and the updated 'Compendium of CVC Circulars' was released during the function. As greater transparency facilitates in improving the system & procedure and minimising the scope for corruption, all efforts are taken to improve the transparency through leveraging of technology of e-governance initiatives.

MoU with Transparency International

Members may be aware that your Company has signed a Memorandum of Understanding with Transparency International India, part of Asia Pacific forum comprising 20 nations. Transparency International India is the Indian chapter of Transparency International, an international civil society organisation based at Berlin that has turned the fight against corruption into a worldwide movement.

Township

Neyveli Township established in February 1959 has grown into a self-contained unit with all infrastructural facilities. This Township spread over 50 Sq.kms. with about 21,000 residential quarters has a total population of about 1,50,000 and has all facilities which includes schools, college, sophisticated general hospital, library, swimming pools, air-conditioned auditorium, stadium, community welfare centres, recreation clubs, reading rooms, parks, banks, shopping complexes etc. Township with all facilities have been established for the Barsingsar project also.

Medical Services

The General Hospital in Neyveli with 355 beds remains the major provider of service in various base specialties like emergency care, general medicine, surgery, paediatrics, obstetrics & gynaecology, eye, ortho, ENT, skin, psychiatry and chest medicine. The General Hospital undertakes programmes that address health issues at the five major levels of preventive, promotive, curative, rehabilitative and disability limitation strategies. The hospital contributes to the goal of various National Health Programme like Family Welfare Programme, Tuberculosis Control Programme, Leprosy Control Programme, Immunisation Programme, Aids Control Programme, Blindness Prevention Control Programme and Breast Feeding Promotion etc.

This hospital fulfills the statutory requirement of meeting the occupational health and safety needs of miners as per the guidelines of Director General of Mines Safety (DGMS) and thermal employees under requirement of OHSAS18001. NLC's Occupational Health Services (OHS) has been acclaimed as the centre of excellence. OHS-NLC is also the recognised centre for conducting medical examination to assess fitness of miners as per the directive of DGMS.

Corporate Social Responsibility

Your Company, as a socially responsible corporate citizen, has been carrying out development works in the surrounding villages, right from its inception.

- An Annual CSR budget of not less than 1% of the profit after tax has been created by your Company and the CSR projects are monitored periodically by a Sub-committee of Board of Directors. Your Board of Directors have sanctioned Rs.13 crore as budget for CSR projects for the year2012-13.

- Base line survey is conducted by your Company before commencement of any CSR Projects.

- Time frames and various milestones are fixed before commencement of any Project.

- Initiatives of State Governments/Central Government Departments/Agencies are dovetailed/synergised with the CSR activities of your Company.

The CSR expenditure of your Company for the year 2011-12 is Rs.11.53 crore. The major CSR initiatives undertaken during the year 2011 -12 are given below:

CSR - Peripheral

From the year 1998, the system of executing capital works for the development of social infrastructure in the surrounding villages has been streamlined and a structured Peripheral Development Scheme is in operation for the benefit of the villages surrounding Neyveli. Under this scheme, infrastructure and development works like drinking water provision by sinking/ maintaining bore wells, constructing roads, school buildings, libraries, bridges, developing medical facilities, de-silting of lakes etc., are carried out. An independent and progressing annual fund allocation has been made, which grew from Rs.50 lakh in 1998-99 to the present allocation of Rs.200 lakh per year. Works numbering 37 for a value of Rs.363.59 lakh have been completed during the year 2011-12 for the benefit of population in the peripheral villages, while 22 nos. of development works for an agreement value of Rs.461.42 lakh are in progress. Your Company provides continuous water supply to nearby viIlages for irrigating over23,000 acres of land.

CSR-Community

As part of CSR for the community at large, your Company has proposed to provide social infrastructure facilities to the Igloo village in Leh-Ladakh area which was devastated by cloud burst and consequent landslide during August 2010, at an approximate value of Rs.3 crore and this provision is in addition to the CSR budget provided.

Since 1987 your Company has been extending all assistance including grant and infrastructure to Sneha Opportunity Services to run a day-care education and training centre forspecial children of the region.

Moreover, Neyveli Health Promotion and Social Welfare Society patronised by your Company has been serving the society by supplying artificial limbs/calipers to the differently abled, apart from running a school for the hearing impaired and a Computer Centre, imparting training for physically challenged, widows and destitute and gainfully employing them.

Your Company has been conducting various CSR focused training programmes for the benefit of the students, teachers and others of Neyveli region and 8,653 persons have been benefitted during the year 2011 -12.

CSR-Education

Your Company recognises the importance of education in human development of the region and offers best education facilities to the students through its 13 Schools - 3 Higher Secondary Schools, 2 High Schools, 5 Middle Schools and 3 Elementary Schools under its management. These schools have been providing education to the students from the peripheral villages also along with the wards of your Company's employees.

Your Company provides infrastructural support and also periodical financial grants to Jawahar Education Society which provides quality education not only to the wards of employees but also to the children of villages around Neyveli Township.

An Industrial Training Institute in Barsingsar village was recently inaugurated to impart technical skills in various trades to the population around the project site.

CSR-Health

Your Company also provides quality medical treatment and occupational health service through its General Hospital to all the inhabitants of the Neyveli Township and its surrounding villages, during the year 2011 -12:

- free medical consultation with minimum anti-biotic therapy and vitamins extended to 76,086 out-patients from the rural public. Another 21,324 patients have been given emergency treatment for various causes.

- Medical treatment identity books issued to around 10,200 eligible contract workmen for availing medical treatment for self and theirfamily members including inpatient treatment, free of cost.

- Community Health Screening for diabetes, hypertension and HIV covering persons from rural population during Annual Book Fair and Safety Week Celebration and counseled for behavioural change.

- 14 medical camps were conducted in peripheral villages viz. Iruppu, Kuravankuppam, Matrukkudiyiruppu, Perperiyankuppam, Periyakappankulam, Mettukuppam, C-Keeranur, Iruppukurichi, A-Block, Mudanai, Vadalur, Kattukoodalore, Mudapalli and Kathazhai which are located within about 15 kilometre radius of Neyveli Township and 4,479 persons of these 14 villages have been health-screened and given medical advice and medicines.

Contribution to the cause of Women

NLC Chapter of''Forum of Women in Public Sector" (WIPS) under the aegis of SCOPE is being patronised by your Company. Your Company provides all the requisite support to this forum in organising various programmes for the growth and development of women.

Visit of Parliamentary Committees

- Parliamentary Standing Committee on Coal & Steel visited on 2nd June, 2011 and reviewed the performance of your Company.

- Parliamentary Committee on Official Language Implementation visited on 14th February, 2012 and reviewed the status of implementation of official language in your Company.

Awards & Recognition

Awards received by your Company during this year are given below:

- "Safety and Quality Award" from the Institution of Engineers -India (IEI) at Chennai.

- State Level First Prize for the Pay Roll Saving Scheme Group Leader for the year 2010-11, instituted by Government of Tamilnadu at Chennai.

- Silver Shield at the National Level Environment Award among coal/lignite based Thermal Power Stations instituted by Ministry of Power, Government of India at New Delhi by Thermal Power Station-I Expansion for the year 2010-11.

- "Organisation with Best HR Strategy in line with Business Award" given by Institute of Public Enterprises in HR Leadership Awards 2012.

Compliance under Persons with Disabilities Act, 1995

Your Company ensures compliance of provisions under the Persons with Disabilities Act, 1995. Suitable arrangements/modifications are made in the working place to meet the requirements of persons with disability.

Compliance under the Right to Information Act, 2005

Your Company ensures compliance under the Right to Information Act, 2005. A Central Public Information Officer, one Appellate Officer, one Additional Appellate Officer and Seventeen Central Assistant Public Information Officers representing different functional areas have been nominated to attend to the queries and appeals received under the RTI Act in a time bound manner.

During the year 2011 -12,402 numbers of requests containing more than 2000 queries were received and all the requests have been complied with.

Citizen's Charter

Your Company maintains Citizen's Charter, indicating details of clients, customers under different heads, system of redressal of grievance etc., and the same is regularly updated.

Particulars of Employees

Particulars of Employees as required under Section 217 (2A) of the Companies Act, 1956, read with the Companies (Particulars of Employees) Rules, 1975 - Nil.

Energy Conservation and Research & Development

The particulars required under Section 217(1)(e) of the Companies Act, 1956 read with the Companies (Disclosure of particulars in the Report of the Board of Directors) Rules, 1988 regarding energy conservation measures, technology absorption and expenditure on R&D are furnished in Annexure-1.

Management Discussion & Analysis Report and Report on Corporate Governance

The Management Discussion & Analysis Report is furnished in Annexure-2. The report on Corporate Governance and with the Auditors' Certificate on the compliance of Corporate Governance conditions stipulated by Clause-49 of the Listing Agreement and DPE guidelines are furnished in Annexure-3 and 4 respectively.

Auditors Cost Audit

M/s. S. Mahadevan & Co., CostAccountants, have been appointed as the Cost Auditors for the year 2011-12, to carry out the cost audit for the three Power Stations of the Company. The Cost Audit Report for the year 2010-11 was filed with the Ministry of Corporate Affairs on 23.09.2011 against the due date of27.09.2011.

Branch Audit

M/s. Prakash K. Prakash, Chartered Accountants has been appointed as the Branch Auditors by Comptroller and Auditor General of India (C&AG) for conducting the audit of Mine and Thermal Units at Barsingsar.

Statutory Audit

M/s. L.U.Krishnan & Co., Chartered Accountants and M/s. Sreedhar, Suresh & Rajagopalan, Chartered Accountants, were appointed by the C&AG, as Joint Statutory Auditors for the year 2011-12 under Section 619 (2) of the Companies Act, 1956. The Board of Directors of the Company has fixed Rs.12 lakh plus applicable service tax as the Statutory Audit fees, to be shared equally by the Joint Statutory Auditors in addition to reimbursement of out of pocket expenses at actual.

C&AG's Comments

C&AG's comments on the accounts for the year ended 31st March, 2012 is furnished in Annexure-5.

Directors' Responsibility Statement as per Section 217(2AA) of the Companies Act, 1956

The Board of Directors declares:-

a. that in the preparation of the annual accounts, the applicable accounting standards had been followed along with proper explanation relating to material departures;

b. that the Directors had selected such accounting policies and applied them consistently and made judgments and estimates that are reasonable and prudent so as to give a true and fair view of the state of affairs of the Company at the end of the financial year and of the profit of the Company for that period;

c. that the Directors had taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions of the Companies Act for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities;

d. that the Directors had prepared the annual accounts on a going concern basis.

Board of Directors

On attaining the age of superannuation Shri A.R. Ansari laid down the office of Chairman-cum-Managing Director on 30.06.2012. The Board places on record its appreciation for the valuable services rendered by Shri A. R. Ansari as Chairman-cum-Managing Director of the Company.

Shri B. Surender Mohan, who was earlier functioning as Director (Mines) has been appointed as Chairman-cum- Managing Director by the Ministry of Coal w.e.f. 01.07.2012.

Shri N. Sundaradevan, Principal Secretary to Government of Tamilnadu, Industries Department, Shri R.K. Mahajan, former Joint Secretary, Ministry of Coal, Smt. Zohra Chatterji, Additional Secretary, Ministry of Coal and Shri Rakesh Kumar were inducted into the Board as Directors w.e.f. 19.07.2011, 12.09.2011, 29.09.2011 and 23.05.2012 respectively..

Sarvashri Rajeev Ranjan, Alok Perti, R.K.Mahajan and K.Sekar relinquished their position as Director w.e.f. 26.05.2011.12.09.2011.23.09.2011 and 31.03.2012 respectively. The Board places on record its appreciation for the valuable contribution made by them during their tenure as Directors on the Board of the Company. Sarvashri R. Kandasamy, Sanjay Govind Dhande, J. Mahilselvan, L.N. Vijayaraghavan, and V. Murali, Directors, retire by rotation at the forthcoming Annual General Meeting and being eligible offer themselves for the re-election.

Acknowledgement

The Board of Directors of your Company places on record its sincere appreciation for the continued support and guidance extended by Ministry of Coal, Ministry of Power, Ministry of Finance, Ministry of Environment & Forest, Ministry of Industry, Ministry of Labour, Planning Commission, Central Electricity Authority, Central Electricity Regulatory Commission, State Electricity Boards and beneficiaries of Tamil Nadu, Andhra Pradesh, Karnataka, Kerala, Puducherry and Rajasthan.

The Board of Directors of your Company is pleased to acknowledge with gratitude the co-operation and continued support extended by the Government of Tamil Nadu and the Cuddalore District Administration. The support and co-operation by the Comptroller and Auditor General of India, the Statutory Auditors, Director General of Mines Safety, the Factory & Boiler Inspectorates, the Chief Inspector of Factories, the Director of Boilers, Central Pollution Control Board, State Pollution Control Board, Chief Controller of Explosives, Regional Labour Commissioner, Regional Provident Fund Commissioner, the Company's Bankers and KfW of Germany need special mention and the Directors acknowledge the same.

Your Directors also wish to place on record their appreciation for the dedicated work put forth by the employees at all levels. The positive role played by the recognised Trade Unions and Associations of the Engineers and Officers in maintaining cordial industrial relations deserves special mention.

for and on behalf of the Board of Directors

PLACE : Chennai B. SURENDER MOHAN

DATE : 01.08.2012 CHAIRMAN-CUM-MANAGING DIRECTORTo The Members of Neyveli Lignite Corporation Limited

The Directors are pleased to present the 56th Annual Report of your Company together with the audited accounts for the year ended 31st March, 2012. Your Directors are happy to inform that your Company has once again achieved a record performance in lignite production, generation and export of power during the financial year 2011-12.

Snapshot of Physical Performance

Particulars 2011-12 2010-11 Growth (%)

Overburden removal (in LM3) 1651.47 1633.45 1.10

Lignite Production (in LT) 245.90 231.44 6.25

Power Generation - Gross (in MU) 18789.44 17881.08 5.08

Power Export (in MU) 15810.67 14971.26 5.61

LM3-Lakh Cubic Metre LT-Lakh Tonnes MU-Million Units Highlights

- Highest removal of Overburden in any year since inception.

- Highest production of lignite in any year since inception.

- Highest generation (gross) and export of power in any year since inception.

- Overburden removal at 828.05 LM3from Mine-ll - highest in any year since inception.

- Lignite production of 130.96 LT from Mine-ll - highest in any year since inception.

- Power generation (gross) at 11087.65 MU and the export of power at 9278.76 MU from TPS-II - highest in any year since inception.

Segment-wise Performance Mines

The aggregate installed capacity of lignite mines stands at 30.6 MTPA as on 31st March, 2012. Overall, the physical performance of Mines during the year 2011 -12 was excellent as compared to the previous year 2010-11. The detailed Mine-wise performance are as under:

Mine-1 (including expansion) -10.5 MTPA

The overburden removal from this Mine during the year 2011-12 was 528.17 LM3 as against 523.08 LM3 in 2010-11, registering a growth of 0.97%. Lignite production during the year under review was 77.34 LT as compared to 83.05 LT registered during the year 2010-11. Lignite production was affected due to lignite seam washout conditions for about 300 x 200 metre area. As informed in the Directors' Report of the previous year, the restructuring of Mine-1 & IA by adding contiguous lignite blocks to raise the aggregate mining capacity to 15.0 MTPA is in process. The restructuring of the mines is necessitated so as to meet the fuel requirement of the new thermal power project of 1000 MW capacity which is the replacement of the existing 600 MW capacity TPS-I.

Mine-IA-3.0 MTPA

The overburden removal from this Mine during the year 2011-12 was 215.10 LM3 as against 211.91 LM3 in 2010-11, registering a growth of 1.51%. Lignite production during the year 2011-12 was 28.77 LT compared to 27.19 LT during 2010-11, registering a growth of 5.81 %.

Mine-ll (including expansion)-15.0 MTPA

The performance of Mine-ll during the year 2011-12 in terms of overburden removal and lignite production was excellent, achieving the highest ever since the inception. The overburden removal from this Mine was 828.05 LM3 as against 802.55 LM3 during the year 2010-11, registering a growth of 3.18%, while the lignite production during the year under review was 130.96 LT compared to 117.11 LT during 2010-11, registering a growth of 11.83%. Approval has been accorded by your Board of Directors in April 2012 for the Revised Cost Estimate ofRs. 2125.83 crore for the Mine-ll Expansion Project.

Barsingsar Mine -2.1 MTPA

During the year 2011 -12, overburden removal and lignite production were 80.15 LM3 and 8.83 LT respectively, as against 95.91 LM3 and 4.09 LT, respectively, during the previous year 2010-11. As Members may be aware, because of sufficient exposure of lignite, the overburden removal was restricted during the year under review. As regards lignite production, the units of linked Thermal Power Plants were declared for commercial operation only during Dec. 2011/Jan. 2012 and hence the lignite production during the year 2011-12 was restricted to match with the fuel requirement of the power plant. Approval has been accorded by your Board of Directors in March 2012 for the Revised Cost Estimate of Rs. 218.05 crore for this project.

Power

With the declaration of commercial operation of both the thermal units of Barsingsar project during the year 2011-12, the installed capacity of thermal power generation of your Company stands increased to 2740 MW as on 31st March, 2012. Your Company has set a new record in generation and export of power during the year 2011 -12. Plant-wise performance details are as under:

Thermal Power Station-I (600 MW)

During the year 2011-12, power generation and export from this plant were 3987.85 MU and 3171.82 MU, respectively, compared to 3878.65 MU and 3088.83 MU, respectively, during the year 2010-11, registering a growth of 2.82% and 2.69% respectively. This plant is one of the oldest power plants in the Country, serving for more than 40 years, with Unit-I of this plant performing for the last five decades. Considering its age, achieving a Plant Load Factor (PLF) of75.67% by this plant is a remarkable achievement.

Thermal Power Station-I Expansion (420 MW)

The power generation from TPS-I Expansion was 3042.68 MU during the year 2011 -12 as against 2997.04 MU in 2010-11, registering a growth of 1.52% and the power exported during the year under review was 2809.97 MU as against 2743.44 MU during the year 2010-11, registering a growth of 2.42%. This Station achieved a PLF of82.47%.

Thermal Power Station-ll (1470 MW)

The performance of TPS-II during the year 2011-12 was excellent as the generation and the export of power from this plant were the highest since inception. Power generation during the year 2011-12 was 11087.65 MU as against 10739.78 MU, registering a growth of 3.24% and the export to the Southern Grid during the year under review was 9278.76 MU compared to 8945.55 MU in the year 2010-11, registering a growth of 3.73%. This plant achieved a PLF of 85.87% during the year under | review.

Barsingsar Thermal Power Station (250 MW)

Unit-I of Barsingsar Thermal Power Plant was declared for commercial operation during Jan. 2012, while Unit-I I was declared during Dec.2011. The total power generation upto 31st March, 2012 was 617.68 MU and 510.79 MU were exported to Rajasthan DISCOMS. Approval has been accorded by your Board of Directors for the second Revised Cost Estimate of Rs.1868.71 crore in March 2012forthis project.

Productivity

The output per man shift during the year 2011 -12 as compared with the previous year is given below:

Product Unit 2011-12 2010-11 Growth

Lignite Tonne 11.18 11.00 1.64%

Power Kw./hr 20130 17780 13.22%

Financial Performance

During the year ended 31st March, 2012 the Company registered a total sales of Rs.4866.85 crore against Rs.4295.95 crore recorded for the year 2010-11, registering a growth of 13.29%. The sales registered for the year 2011-12 was the highest ever since inception. The Profit Before Tax (PBT) and the Profit After Tax (PAT) for the year 2011-12 were Rs.1983.89 crore and Rs.1411.33 crore, respectively, as against Rs.1684.55 crore and Rs.1298.33 crore, respectively, for the year 2010-11. As compared to the previous year 2010-11, the PBT and the PAT for the year 2011-12 recorded a growth of around 18% and 9%, respectively. The PBT and the PAT for the year ended 31st March, 2012 were the highest for anyyear since inception.

The main reason for increase in the profit for the year 2011-12 was on account of higher lignite production, higher generation and export of power which had resulted in increased sales. The operation of Barsingsar Power Plant in the last quarter of the financial year 2011 -12 had also contributed for registering higher sales.

The details of profit earned for the financial year ended 31st March, 2012 and appropriation of the same in comparison with the previous year ended 31st March, 2011 are asunder:

(Rs. in crore)

2011-12 2010-11

Profit before tax 1983.89 1684.55

Tax provision 572.56 386.22

Profit after tax 1411.33 1298.33

Appropriation:

Transfer to

Bond Redemption Reserve 15.00 15.00

Interest Differential Fund Reserve 18.08 15.25

General Reserve 145.00 130.00

Proposed Dividend 469.76 385.87

Tax on proposed Dividend 76.21 62.60

Dividend

The Board of Directors of your Company has recommended a dividend of 28% (Rs.2.80 per share) for the year 2011-12 (previous year 23%). The total outgo on account of dividend including distribution tax will be Rs.545.97 crore (previous year Rs.448.47 crore), which works out to 38.68% on Profit After Tax (PAT) for the year2011-12.

Projects under construction/implementation Thermal Power Station-ll Expansion (2x250 MW)

Thermal Power Station-ll Expansion project linked to Mine-ll Expansion is under implementation for expanding the capacity of TPS-II from 1470 MW to 1970 MW. Unit-I was synchronised with the designated fuel in June 2011 and is in the process of stabilisation. This unit generated in-firm power of53.58 MU (Gross) during the year under review. As regards Unit-ll, construction activities are in progress. Declaration of commercial operation of Unit-I is expected in October 2012 and the Unit-ll in March 2013. Execution of works by M/s. BHEL, the Main Plant Package contractor, is being closely monitored and periodically reviewed for early commissioning of the units. Approval has been accorded by your Board of Directors in April 2012 for the second Revised Cost Estimate of Rs.3027.59 crore for this project. The cumulative expenditure incurred upto 31st March, 2012 was Rs.2394.54 crore.

Neyveli New Thermal Power Project (2x500 MW)

Government of India (GOI) has sanctioned the Neyveli New Thermal Power Project (1000 MW) at a capital cost of Rs.5907.11 crore in June 2011 with a commissioning schedule of 48 months and 54 months for Unit-I & II respectively, from the date of sanction. Tendering activities for Main Plant Packages and Balance of Plant Package are in progress. The cumulative expenditure incurred upto 31st March, 2012 was Rs.14.47 crore.

Wind Power Project (50 MW)

Your Company has proposed to enter into generation of green power by setting up a wind power project of capacity of 50 MW at an estimated cost of Rs.364.75 crore. Tender has been floated for setting up of the above wind farm.

Solar Power Project

Your Company has also proposed to set up a 25 MW Solar Power Project to be located in Neyveli and in the first phase 10 MW capacity solar power plant is to be set up at an estimated cost of Rs.133.19 crore. Tender has been floated for design, engineering, manufacture, supply, transport, storage, erection, testing and commissioning of the above 10 MW Solar PV power plant.

Joint Venture Projects

Thermal Power Plant at Tuticorin (2x500 MW)

Coal based thermal power project at Tuticorin (1000 MW) is being implemented by your Company as a joint venture with Tamil Nadu Generation and Distribution Corporation Limited (TANGEDCO), at a sanctioned cost of Rs.4909.54 crore through NLC Tamilnadu Power Limited, the Subsidiary Company. Drum lifting for both the units has been completed in September 2011. Construction of dedicated coal jetty for transportation of coal to the power plant is in advanced stage of completion. Erection of boilers, coal and ash handling plants, switchyard, chimney and cooling towers are in progress. Contract for shore un-loader has been awarded and in respect of coal washery and logistics and other peripheral works tenders have been floated and are in process. Fuel linkage for this project is being tied up with Mahanadi Coalfields Limited, a subsidiary Company of Coal India Limited. The Unit-I is expected to be commissioned in Dec. 2013 and Unit-ll in March 2014. The project activities are closely monitored for early commissioning. The cumulative expenditure incurred upto 31st March, 2012 was 12768.27 crore.

MNH Shakti

MNH Shakti Limited is the Joint Venture Company (JVC) promoted by Mahanadi Coalfields Limited (MCL) holding 70% stake, Hindalco and your Company, each holding 15% stake. The JVC is implementing a 20.0 MTPA coal mining project at Talabira, Odisha and MCL being the majority stakeholder is piloting the above project.

Project Funding

To meet part of the debt requirement for the Neyveli New Thermal Power Project, your Company has tied up with State Bank of India for availing rupee term loan of Rs.2,500 crore and the balance debt requirement will be met through various other options such as External Commercial Borrowing (ECB), issue of Bonds etc. Your Company has also availed long term loan of Rs.3,495 crore for the expansion project from a consortium of domestic banks with Canara Bank as the consortium leader and so far a sum of Rs.937.50 crore has been repaid. In addition to this, Euro 50 million in the form of foreign currency loan under ECB and issue of secured redeemable taxable non-convertible bonds aggregating to Rs.600 crore were also availed for the expansion projects. The above ECB was repaid during the year 2011-12.

New Projects under formulation

As stated in the Directors' Report of the previous year 2010-11, your Company is pursuing the following projects for which Power Purchase Agreements have been entered into with the respective beneficiaries:

Bithnok Thermal Power Project (250 MW) with linked Mine (2.25 MTPA)

Your Company has proposed to set up a Thermal Power Plant of 250 MW capacity with linked Mine of 2.25 MTPA at Bithnok in Bikaner District, in the State of Rajasthan at an estimated cost of Rs.2,298.83 crore. The total land required for the Bithnok TPS and Mine is 2883 hectares and the acquisition of the same through Government of Rajasthan is in process. Government of Rajasthan has been approached for issue of Mining lease for the proposed Mine project. With regard to environmental clearance for the Mine Project, the proposal is under consideration of Expert Appraisal Committee. Being a 'Navratna' Company, the project will be considered for implementation by your Board of Directors on receipt of environmental clearance.

Barsingsar Extension Power Project (250 MW) and Hadla & Palana Lignite Mine (2.5 MTPA)

Your Company, by exploiting the lignite deposits in Hadla and Palana lignite blocks, proposes to set up a 250 MW Power Plant with a linked Mine of 2.5 MTPA capacity, in Bikaner District of Rajasthan, as an extension of the existing Barsingsar Power Plant. The aggregate estimated cost of the project is Rs.2,041.78 crore. Land required for the said project will be acquired through Government of Rajasthan and a proposal has been submitted for grant of mining lease. As far as the power project is concerned, proposal has been placed before MOE&F for issue of environmental clearance and on receipt of the same your Board of Directors will consider the project for implementation.

NLC-UPRVUNL Ghatampur Power Project (1980 MW)

Your Company has entered into an Moll with Uttar Pradesh Rajya Vidyut Utpadan Nigam Limited (UPRVUNL) for formation of a Joint Venture Company with equity participation in the ratio of 51:49 to set up a1980 MW (3x660 MW) coal based thermal power project in Ghatampur Tehsil, Kanpur Nagar District in the State of Uttar Pradesh at an estimated cost of Rs.11,128 crore. The Cabinet Committee on Infrastructure (CCI) has approved the above joint venture proposal and the Joint Venture Agreement will be entered into with UPRVUNL shortly. Government of Uttar Pradesh has issued necessary notification for acquisition of about 763 hectares of land and has also allocated 80 cu.secs of water for the project. Ministry of Coal has been approached to allocate coal blocks with an extractable reserve of 600 million tonnes for the above project. Preparation of Feasibility Report and EIA/EMP reports are under progress.

Sirkali Thermal Power Project (4000 MW)

Your Company has also proposed to set up a 4000 MW coal based power plant at Sirkali in the coastal district of Nagapattinam, Tamilnadu in two phases at an estimated cost of Rs.10,395 crore for phase-l of 1980 MW. Site for locating the power plant has been identified at Thirumullaivasal and action has been initiated for acquisition of land through Government of Tamilnadu and for obtaining clearances from various statutory authorities. Ministry of Coal has been approached for allotment of coal blocks for the above project.

Devangudi Mine Project

Your Company proposes to develop the Devangudi lignite block, which has a mining area of about 8.2 Sq.Km and a mineable lignite reserve of 42.5 million tonnes, at an estimated cost of Rs.358 crore. The capacity of this Mine will be 2.0 MTPA and the lignite mined out will cater to the needs of cement, paper, brick and other small industries in the neighbourhood area.

Restructuring of Mines

The TPS-I with a capacity of 600 MW is linked to Mine-I. As stated earlier, since TPS-I is proposed to be replaced with a higher capacity plant of 1000 MW (NNTPS) it has been proposed to take up re-structuring of existing

Mine-1 and Mine-IA by adding contiguous lignite blocks for enhancing the aggregate capacity from 13.5 MTPA to 15.0 MTPA to meet the enhanced requirement of lignite of the proposed new plant. Detailed working is in process.

Coal Assets

As Members may be aware, India is experiencing severe shortage of coal as the domestic demand exceeds the supply. In order to overcome the situation, the Government of India has given guidelines to acquire coal assets abroad so as to have assured long term energy security. The MoU Task-force of GOI has also included 'floating of EOI for acquiring/acquisition/formation of JV for assets abroad' as one of the MoU parameters for your Company for the year 2012-13. In line with the above, your Board of Directors has accorded approval to initiate action within the guidelines of DPE for acquisition of raw material assets abroad to meet the partial/full coal requirement of projects of your Company in various places which are under implementation/formulation. Your Company is also exploring the possibility to tie up with State Governments who are in possession of coal blocks.

Other Projects

As discussed in the last year's report, consequent to the change in the policy of power procurement by States through competitive based tariff route, excepting power projects for which PPA has been signed prior to 6th January, 2011, all other projects could be implemented only when the concerned beneficiaries formally issue a notification for purchase of power through competitive bidding process. In this regard your Company has addressed to Ministry of Coal seeking exemption from the above requirement for lignite based Power projects and the same is awaited. Under these circumstances, it has been decided by the Board of Directors of your Company to keep in abeyance the other envisaged lignite based projects viz., 1000 MW TPS-III linked to 8.0 MTPA (Mine-Ill) in Neyveli and 1000 MW Power Project linked to 8.0 MTPA lignite mine in South Gujarat and not to pursue

---

Mar 31, 2011

The Members,

Neyveli Lignite Corporation Limited

The Directors have great pleasure in presenting the 55th Annual Report of your Company together with the audited accounts for the year ended 31st March, 2011. It is indeed a pleasure to inform the Members that your Company has been granted 'Navratna' status by the Government of India in April 2011. Only select PSUs fulfilling the eligibility criteria are granted the status of 'Navratna' and such Companies have enhanced autonomy and higher delegation of powers as per guidelines prescribed by the Government of India from time to time.

Physical Performance

Your Company has completed yet another successful year and once again surpassed its own past records in overburden removal, lignite production, generation and export of power.

Both lignite mines and linked power stations of your Company achieved the highest performance during the year 2010-11, ever since inception and the highlights of the same are as under:

- Overburden removal of 1633.45 LM3 from all Mines of the Company put together.

- Total Lignite production of 231.44 LTfrom all Mines of the Company.

- Power generation of 17881.08 ML) (gross) and power export of 14971.26 MU from all Power Stations of the Company.

- Overburden removal of 802.55 LM3 and Lignite production of 117.11 LTfrom Mine-ll.

- Power generation of 10739.78 MU (gross) and the export of power at 8945.24 MU from Thermal Power Station-!I.

Segment-wise Performance

Mines

During the year 2010-11, the overburden removal from all Mines put together was 1633.45 LM3 against 1594.25 LM3 achieved for the previous year ended 31st March, 2010, recording a growth of 2.46% over the previous year. The total Lignite production for the year 2010-11 was 231.44 LT against 223.38 LT achieved for the year 2009-10, registering a growth of 3.61%. The detailed Mine-wise production is as under:

Mine-I (including expansion) -10.5 MTPA

The overburden removal during the year 2010-11 was 523.08 LM3 (previous year 508.52 LM3), registering a growth of 2.86%. The Lignite production during the year was 83.05 LT (previous year 91.59 LT). One of the main reasons for lower lignite production as compared to previous year was on account of lignite seam washout encountered in Mine-I area and reduction in lignite seam thickness. Lignite seam ashout is the phenomenon wherein the lignite seams get eroded by paleo channels during or soon after the formation of the lignite. Mine-I with initial capacity of 6.5 MTPA based on the lignite reserves was planned to meet the lignite requirement of TPS-I of 600 MW. The TPS-I units were originally planned to be closed between 2009 and 2014 in a phased manner. But as per the request of the Government of Tamil Nadu, in view of the power shortage in the State, it was decided to operate till commissioning of replacement units or shut down earlier depending upon the Residual Life Assessment studies.

Asa replacement for the old TPS-I of 600 MW which is linked to Mine-I, a newTPS of 2x500 MW capacity has been sanctioned by the Government of India in June 2011. The fuel linkage for this higher capacity TPS will be met out by restructuring the existing Mine-I and Mine-IA by adding contiguous lignite blocks so as to have an aggregate mining capacity of 15.0 MTPA.

Mine-IA-3.0 MTPA

The overburden removal during the year 2010-11 was 211.91 LM3 (previous year 201.86 LM3), registering a growth of 4.98%. The Lignite production during the year was 27.19 LT (previous year 27.11 LT).

Mine-ll (including expansion) -15.0 MTPA

With the completion of Mine-ll Expn., (4.5 MTPA) project during March 2010, the capacity of Mine-ll has increased from 10.5 MTPA to 15.0 MTPA. The overburden removal during this period was 802.55 LM3 (previous year 782.63 LM3), registering a growth of 2.55%. The Lignite production during the year under review was 117.11 LT (previous year 104.43 LT), registering a growth of 12.14%. However, the added capacity could not be exploited fully because of non-commissioning of the linked power plant, viz., TPS-II Expn., (2x250 MW). Mine-I! recorded the highest ever performance since inception in overburden removal and lignite production during the year2010-11.

Barsingsar Mine -2.1 MTPA

During the year 2010-11, the overburden removal was 95,91 LM3 (previous year 101.24 LM3). Overburden removal during the year was restricted due to adequate extent of lignite which has already been kept exposed. Lignite production during the year was 4.09 LT (previous year 0.25 LT). The lignite production was restricted to match the requirement of the linked power station.

Power

The power generation during the year 2010-11 from all power plants of the Company put-together 17881.08 MU (gross) against 17656.04 MU (gross) generated during the previous year ended 31st March, 2010. The total power export during the year under review from all power stations of the Company was 14971.26 MU compared to 14828.22 MU in the previous year 2009-10.

Thermal Power Station-I (600 MW)

The power generation during the year under review from this plant was 3878.65 MU (previous year 4114.44 MU) achieving a PLF of 73.80% (previous year 78.28%) and the export during this period was 3088.83 MU (previous year 3300.45 MU). As stated earlier the lower lignite production in the linked Mine-I on account of lignite seam washout, affected the power generation of this plant. As Members may be aware, TPS-I is the oldest power plant serving for more than 40 years and hence the performance of the Units get impeded due to ageing. Further, continuous monsoon rains lead to slushy conditions of lignite which also bring down the performance of power stations to a certain extent. As reported in the earlier year report, Residual Life Assessment study is being carried out in all the units, in a phased manner, to assess their worthiness for continuing with the operation.

Thermal Power Station-I Expansion (420 MW)

The power generation from TPS-I Expansion was 2997.04 MU during the year 2010-11 (previous year 2979.43 MU), achieving a PLF of 81.42% (previous year 80.98%) and 2743.44 MU (previous year 2720.12 MU) was exported during the year under review.

Thermal Power Station-ll (1470 MW)

The power generation during the year 2010-11 was 10739.78 MU (previous year 10559.69 MU), achieving a PLF of 83.40% (previous year 82.01 %) and 8945.54 MU (previous year 8805.17 MU) of power was exported to the Southern Grid in the year 2010-11. Power generation (gross) and export of power from this station during the year 2010-11 were the highest in any year since inception.

Barsingsar Thermal Power Station (2x125 MW)

During the year 2010-11, for the first year after synchronisation, both the units in aggregate have generated 265.61 ML) and the total export was 193.45 MU. Execution of this project is delayed due to initial delay in supply and erection activities by BHEL, the contractor for the Main Plant Package. This plant is yet to commence commercial operation owing to certain teething problems. In order to stabilise the operation of both the units so as to run at the designated load, necessary actions are being taken through close monitoring and follow-up with BHEL.

Productivity

The output per man shift during the year 2010-11 as compared with the previous year is given below:

Product Unit 2010-11 2009-10

Lignite Tonne 11.00 10.70

Power Kw/hr 17778 17380

Financial Performance

During the year under review, your Company has registered a sales turnover of Rs.3949.08 crore compared to Rs.4121.02 crore in the previous year 2009-10. The Profit Before Tax for the year under review was Rs. 1684.55 crore (previous year Rs. 1604.86 crore) while the Profit After Tax was Rs.1298.33 crore (previous year Rs. 1247.46 crore).

The reduction in the sales turnover during the year 2010-11 as compared to previous year 2009-10 was due to adjustment of mine closure cost pertaining to earlier years since 01.04.2004, amounting to Rs.340.72 crore, in the sales income of 2010-11. The Mine Closure cost at higher rates was hitherto recovered from beneficiaries as part of tariff approved byCERC in terms of the guideline prescribed by Ministry of Coal (MOC) earlier. Consequent to the receipt of approval of Mine Closure Plan by MOC in April 2011, the Mine Closure cost has been revised downward w.e.f.01.04.2004. Since the tariff charged to the beneficiaries included Mine Closure cost at higher rates from 01.04.2004, necessary adjustments were made in the sales income for the year 2010-11. In view of the reduction in the Mine Closure cost for the above period as stated the excess liability created in the earlier years amounting to Rs.382.45 crore has been withdrawn and included in the other income.

The details of profit earned for the financial year ended 31st March, 2011 and appropriation of the same in comparison with the previous yearended 31st March, 2010 are as under:

(Rs.in crore) 2010-11 2009-10

Profit before tax 1684.55 1604.86

Tax provision 386.22 357.40

Profit after tax 1298.33 1247.46 Appropriation:

Transfer to Bond Redemption Fund Reserve 15.00 15.00

Interest Differential Fund Reserve 15.25 12.50

General Reserve 130.00 100.00

Interim Dividend paid 0.00 167.77

Tax on Interim Dividend paid 0.00 28.51

Proposed Dividend 385.87 167.77

Tax on proposed Dividend 62.60 27.86

Dividend

The Board of Directors of your Company has recommended a dividend of 23% (Rs.2.30 per share) for the year 2010-11 (previous year 20%). The total outgo on account of the dividend including distribution tax will be Rs. 448.47 crore (previous year Rs. 391.91 crore), which works out to 34.54% on Profit After Tax (PAT) fortheyear2010-11.

Projects under Construction

Thermal Power Station-ll Expansion (2x250 MW)

Thermal Power Station-ll Expansion project (500 MW) is under implementation by your Company at a revised cost of Rs.2453.57 crore. Unit-I has been synchronised with lignite firinq on 27.06.2011. Commercial operation of Unit-I is anticipated in due course. As regards Unit-ll, hydro test of boiler has been completed and the refractory works are in progress. It is anticipated that Unit-ll would be commissioned at the earliest. The delay in the execution of works by BHEL, the contractor for the Main Plant Package has been regularly addressed at various levels. Cumulative expenditure incurred upto 31st March, 2011 is Rs.2154.25 crore.

Joint Venture Projects NLC Tamilnadu Power Limited

Your Company is presently implementing coal based thermal power project of 1000 MW capacity at Tuticorin, at an estimated cost of Rs.4909.54 crore. This project is being implemented through the Subsidiary Company, NLC Tamilnadu Power Limited, in joint venture with Tamil Nadu Electricity Board. Fuel linkage for the project is being tied-up with Mahanadi Coalfields Limited. Contracts for all major packages have been awarded and civil works and erection works are in progress. Tendering activities for Shore Un-loaders and Coal Washery & Logistics and other peripheral packages are under various stages of process. There was some delay in execution of this project during early stages. However, the project execution is being monitored closely to avoid any further delay. The cumulative expenditure incurred upto 31st March, 2011 is Rs. 1609.59 crore.

MNH Shakti Limited

Mahanadi Coalfields Limited (MCL) the majority stakeholder is piloting the mining project to be established with a capacity of 20.0 MTPA at Talabira in the State of Orissa. Your Company and Hindalco are the other stakeholders, holding 15% each in the equity. The coal mined out of this project will be shared in the same ratio as the equity.

Project Funding

As reported last year, for funding Mine-ll Expansion linked to TPS-II Expansion and Barsingsar Mine-cum-Power Project, your Company has tied-up rupee term loans for Rs.2500 crore and Rs.1250 crore, through a consortium of domestic banks with Canara Bank as the consortium leader and for EURO 50 million foreign currency loan under External Commercial Borrowing (ECB) route, syndicated by Credit Agricole Corporate & Investment Bank. Your Company has also met part of the debt requirement for the above projects through the issue of Secured Redeemable Non-convertible Bonds for an aggregate amount of Rs.600 crore through private placement in the year 2009.

New Projects

During the year 2006, the Central Government notified the Tariff Policy under Section 3 of the Electricity Act, 2003. As per the provisions of this Tariff Policy, even for the Public Sector Projects, tariff of all new generation is to be decided on the basis of competitive bidding after a period of five years or when the Regulatory Commission is satisfied that the situation is ripe to introduce such competition. Accordingly as per the present policy of the Government of India, the States are to fully migrate to procurement of power by DISCOMs through tariff based competitive bidding only. However, the Ministry of Power has recently clarified that the above policy of procuring power through competitive bidding will not be applicable for (a) expansion of already commissioned projects and (b) projects for which Power Purchase Agreement (PPA) have been signed on or before 5th January, 2011.

Considering that setting up of lignite based power plants do not have level playing field with that of coal and face constraints in competing with coal based power plants, your Company has addressed this issue to Ministry of Coal for obtaining exemption from the competitive bidding process in respect of lignite based power projects on the following grounds:

- Lignite blocks have high stripping ratio compared to that of coal blocks resulting in higher excavation cost.

- Lignite reserves are deep seated being more than 160 metre below requiring to adopt new mining technology which may increase the mining cost further.

- Lignite is of inferior quality with lesser calorific value as compared to coal leading to higher fuel consumption and lesser efficiency of lignite fired boilers.

- Capital cost of lignite based boiler is more.

However, in order to have the advantage of guaranteed off-take of the entire power produced from the new projects proposed, your Company has signed PPA with beneficiaries of various States as stated hereunder:

a. Beneficiaries of all Southern States for the power from the Neyveli New Thermal Power Project (2x500MW) in Neyveli.

b Beneficiaries of all Southern States for the power from 2000 MW Coastal "Sirkali Thermal Power Project in phase-l".

c. Beneficiaries of State of Rajasthan for the power from Bithnok Thermal Power Project (250 MW) and Barsingsar Extension Power Project (250 MW).

d. Uttar Pradesh Power Corporation Limited for the Joint Venture Power Project of 2000 MW capacity in Uttar Pradesh.

Your Company is actively pursuing the above projects and the present status is as under:

Thermal Power Project (2x500MW), Neyveli, Tamil Nadu

This project with a capacity of 1000 MW will be replacing the existing TPS-I of 600 MW capacity at Neyveli. The estimated cost of the project is Rs.5907.11 crore. The Government of India has sanctioned this project in June 2011. Tenders for major packages have been floated and the project is scheduled to be commissioned by December 2015. As stated earlier the fuel requirement for this plant will be met after re-structuring the existing Mine-I and Mine-IA by adding contiguous lignite blocks.

Thermal Power Project (250 MW) with linked Mine (2.25 MTPA), Bithnok, Rajasthan

The above Thermal Power Plant of 250 MW capacity with a linked mine of 2.25 MTPA capacity is proposed at an aggregate estimated cost of Rs.2298.83 crore. The total land requirement for Bithnok Mine and Power Plant is 2883 Hectares. Notification has been issued by Government of Rajasthan (GOR) for acquisition of private land for the project. Obtaining of mining lease from GOR is in process. The final project proposal pertaining to this project will be considered by your Board of Directors in due course.

Barsingsar Extension Power Project (250 MW) and Hadla & Palana Lignite Mine (2.5 MTPA), Rajasthan

The above power plant will be an extension to the existing power project at Barsingsar and the fuel for this project will be through the linked mine utilising the lignite deposits in Hadla and Palana blocks. The aggregate estimated cost of the project is Rs.2041.78 crore. The Board of Directors of your Company has approved the Feasibility Report (FR) for Thermal and Hadla mine. Preparation of FR for Palana mine is in progress. The final project proposals will be considered by the Board in due.course.

Coastal Sirkali Thermal Power Project (4000 MW), Tamil Nadu

'In-principle' approval has been accorded by the Board of Directors of your Company for setting up the above power project at Sirkali in the coastal district of Nagapattinam in the State of Tamil Nadu. The said project has been proposed to be implemented in two phases of 2000 MW each, at an estimated cost of around Rs.20000 crore, using coal as the main fuel. Government of Tamil Nadu has been approached for according administrative sanction to acquire required lands. Preliminary project activities are in process.

Coal based Power Project in Uttar Pradesh

Your Company has entered into an MOU with Uttar Pradesh Rajya Vidyut Utpadam Nigam Limited (UPRVUNL) for formation of a Joint Venture Company with equity participation of NLC and UPRVUNL in the ratio of 51:49 to set up a 2000 MW coal based thermal power project in Ghatampur Tehsil, Kanpur Nagar District in the State of Uttar Pradesh, at an estimated cost of Rs. 10000 crore. ln-principle approval for land and water has been received from the Government of Uttar Pradesh. Preparation of Feasibility Report and EIA/EMP report are in progress. NT Kanpur is conducting topographical survey of the proposed site.

Other Projects

As Members may be aware, your Company had plans to set up lignite based mine-cum-power projects at Neyveli (Mine-Ill & TPS-III) & Jayamkondam, both in Tamil Nadu and Valia in Gujarat and also a coal based power project at IB-valley, Orissa. For all these projects, advance action plan was approved by Ministry of Coal. As discussed in this report earlier, consequent to the change in the policy of power procurement by States through competitive based tariff route, the above envisaged lignite based power projects may not be possible to be pursued unless exemption as sought by the Company is granted from the applicability of competitive based tariff bidding. In view of the above, it has been decided by the Board of your Company to keep in abeyance the above lignite mine-cum-power projects and not to pursue the coal based power project in Orissa.

New initiatives

Devangudi Mine Project

As reported last year, your Company proposes to develop the Devangudi lignite block situated about 18 Km. from the Neyveli region at an estimated cost of Rs. 358 crore. This block has a mining area of 8.2 Sq.Km. and a mineable lignite reserve of 42.5 MT This Mine with a capacity of 2.0 MTPA will be developed to supply lignite to the cement, paper, brick and other small industries in the neighbourhood area. Preparation of Feasibility Report is in process.

Energy from other resources

Your Company, as a part of diversification, would also consider to tap other forms of energy viz., wind and solar subject to feasibility.

Competitive tariff based Power Projects

As discussed earlier, with the introduction of tariff based bidding for new power projects, your Company intends to participate in such competitive bidding processes for new projects, including Ultra Mega Power Projects, as and when notified by the Government/beneficiaries, after evaluating all aspects.

Development of Coal Blocks

In order to meet the fuel requirement for the proposed 4000 MW power project, in two phases, at Sirkali and also for the balance fuel requirement for Tuticorin Power project implemented through the Subsidiary Company, your Company proposes to enter into an arrangement with Coal India Limited for its coal requirements and further is also exploring to acquire/develop coal blocks.

Power Tariff

The Central Electricity Regulatory Commission (CERC) constituted under the Electricity Regulatory Commission Act, 1998 is the statutory body functioning under the Electricity Act, 2003 and has the responsibility to regulate the tariff of generating Companies owned or controlled by the Central Government and Generators selling electricity in more than one State. Accordingly, the terms and conditions of tariff regulations for the period 2009-14 was notified by CERC and tariff order in respect of TPS-I Expn., and TPS-II have been issued by CERC for the period 2009-14. In respect of TPS-I, hearing before CERC has been completed and the tariff order is awaited. For Barsingsar Power Plant as per the direction of CERC a revised petition will be filed before CERC for issue of tariff order and in case of TPS-II Expn., necessary petition will be filed in due course.

Human Resource

The concept of employees being treated as valued resources has assumed centre stage in modern Management over the years and the focus has been on attracting, nurturing, developing and retaining this valued resource for the success of any organisation. In tune with the changing approach and in line with the progressive Management practices in India and abroad, the traditional approach of Personnel Management has given way to Human Resource Management. Your Company is on the growth path with ambitious plans to spread its wings of business all over India. With the changing business scenario and Company's progress, it is appropriate that the focus on Human Resource Development should take centre stage and accordingly your Company gives utmost priority for development of human resource.

The total manpower of your Company as on 31.03.2011 was 18,041 including 4,135 Executives. To infuse young blood, 52 Graduate Executive Trainees were selected during the year through campus interviews from IIT/ IIM/NIT

Employee Development

In-house Training Programmes numbering 324 were conducted covering 6,529 employees during this year, among them 2,790 were Executives and 3,739 were Non-executives. Out of the total employees trained, 1,393 employees belonged to SC category and 164 employees belonged to ST category.

Industrial Relation

Industrial Relation scenario was generally cordial during the year excepting certain disturbances during the settlement of wage revision for workmen and non-executives.

Your Company has a regular system of holding bi-partite meetings with the recognised unions regarding the issues of common interest of all employees.

During the year 2010-11, settlement was arrived -at with the recognised unions on wage revision effective from 01.01.2007 and other related matters.

Implementation of Official Language Policy

As was done in the previous years, your Company organised "Hindi Fortnight" and Hindi Workshops as per the guideline issued by Government to create awareness among employees and also promote usage of Hindi in their official communication.

Reservation of Posts

Your Company has been following the rules of the Government with regard to reservation for SC and ST and the details of Group-wise Men-in-Position as on 31.03.2011 is as under:

Strength of SC/ST % SC/ST

Group Total Total Total Strength SC ST SC/$T SC ST SC/ST

A 3,780 757 163 920 20.03 4.31 24.34

B 355 92 12 104 25.92 3.38 29.30

C 11,861 2,500 119 2,619 21.08 1.00 22.08

D 2,045 439 11 450 21.47 0.54 22.00

TOTAL 18,041 3,788 305 4,093 21.00 1.69 22.69

Environmental Measures

Your Company is continuing its significant contribution in environmental protection and in maintaining ecological balance. Around 18 million trees have been planted in and around Neyveli Township and production units which helps in maintaining clean environment, dust suppression, noise control, lowering the atmospheric temperature and maintaining ecological balance.

The back filled areas with sterile soil are

reclaimed by adopting different methods and used for agricultural, horticulture crops and development of forestry, pasture land etc. So far, an area of about 1843 hectares of land has been reclaimed besides carrying out afforestation activities in an area of 1583 hectares of land in all the three mines.

Your Company has installed permanent Ambient Air Quality Stations in and around the industrial units, residential colony and peripheral area in Neyveli and the measured values of the pollutants are well within the norms prescribed by the Pollution Control Board.

Safety

Risk Assessment and Safety Audits were conducted for Mines and Thermal Power Stations in regular periodicity by engaging accredited external-agency. The recommendations submitted by the external agency are being implemented.

Safety related trainings like refresher course, basic and on the job training etc., are being imparted to all sections of employees. By this extensive imparting of training, there is considerable increase in the level of safety awareness among the employees. Your Company continues to achieve "Excellent" level as per MOU entered into with the Ministry of Coal on safety parameters.

Vigilance

Preventive vigilance is continued to be given thrust by the Vigilance Branch of your Company. Every year Vigilance Branch compiles circulars issued by Central Vigilance Commission (CVC), from time to time, in the form of a compendium which is used as a reference guide. During the year 2010-11, circulars relating to disciplinary action aspects have been compiled and issued for use by the disciplinary authorities and enquiry officers. Vigilance Branch had also brought out a compendium of CVC circulars on Tenders, Purchase/Contracts which would be used to infuse fairness, transparency and accountability in the procurement system.

MOU with Transparency International

Your Company is one of the few institutions who have signed the Memorandum of Understanding with Transparency International - India. This body is the Indian Chapter of Berlin based Transparency International, a not-for-profit and non-government organisation committed to eradicate corruption in any form.

Township

Neyveli township spreading over 50 Sq.Kms with more than 21,000 self-contained quarters offers ambience of an ideal living environment to its employees. This township extends all facilities to its inhabitants by way of excellent civic services including water supply, public health, electricity, shopping complex, good roads and transport facilities, parks for children and elders etc. For the Barsingsar project also, township with all facilities have been provided.

Medical Services

The hospital care delivery system of your Company involves running a 355 bed care facility at Neyveli to cater to the secondary care needs of nearly 18,000 employees and their dependents, CISF personnel and contract workmen. Ayurvedha Service is also integrated into the hospital care system to meet out the. indigenous treatment requirement of patients in the area of ayurvedha, panchakarma and yoga.

Corporate Social Responsibility (CSR)

Your Company has adopted CSR policy in the year 2009-10 for taking up various projects/ activities for the welfare of the society at large. It has been decided to earmark 1 % of the profit after tax as the budget for every year towards the CSR activities. During the year 2010-11, around Rs. 13 crore has been spent towards CSR. Some of the major CSR initiatives under taken during ._„. the year 2010-11 are:-

CSR-Peripheral

Right from the inception, your Company has been undertaking peripheral development works in the surrounding villages. This scheme has been streamlined in the year 1998-99 with the constitution of a Peripheral Development Committee under the Chairmanship of the District Collector. The independent annual fund allocation for this scheme was initially Rs.50 lakh

in 1998-99 and increased to Rs.200 lakh from the year 2008-09 onwards. Under this scheme, infrastructure and development works like provision of drinking water by sinking/maintaining the borewells, constructing roads, school buildings, libraries, bridges, developing medical facilities, de-silting of lakes etc., are being carried out. Works for a value of Rs.222.53 lakh have been completed during the year for the benefit of the population in 23 peripheral villages while development works for an agreement value of Rs. 198.72 lakh are in progress in 16 peripheral villages. Your Company provides continuous supply of water to nearby villages for irrigating over 23,000 acres of land.

CSR-Community

Your Company is extending all assistance, including grant and infrastructure to Sneha Opportunity Services for running the Sneha Opportunity School, a day-care, education and training centre for special children of Neyveli region.

Your Company patronises Neyveli Health Promotion and Social Welfare Society to - support its social welfare activities. This society serves by way of providing training and arranging job opportunities for the benefit of differentlv-abled persons,

widows and destitutes. This society also runs a School "Shravanee" for the hearing impaired, a Computer Training Institute and provides artificial limbs, etc. Your Company has been conducting various CSR focused training programmes for the benefit of students, teachers and others of Neyveli region and 12,157 persons have been benefited during the year 2010-11.

CSR-Education

Your Company recognises the importance of education in human development of the region and offers best educational facilities to the students through 13 schools - 3 Higher Secondary Schools,

2 High Schools, 5 Middle schools and

3 Elementary Schools under its management. These schools have been providing education to the students from the peripheral villages also along with the wards of your Company's employees, CISF personnel and contract workmen. .

Your Company provides infrastructural support and also periodical financial grants to Jawahar Education Society which provides quality education not only to the wards of employees, but also to the children of villages around Neyveli Township.

Your Company is also in the process of establishment of an Industrial Training Institute in Barsingsar village to impart technical skills in various trades to the population around the project site.

CSR-Health Care

Your Company also provides quality medical treatment and occupational health service through its General Hospital to all inhabitants of the Neyveli Township and its surrounding villages. During the year 2010-11, the following initiatives were taken:

- Contribution to Cancer Institute, Adyar, Chennai towards their ongoing programme for early detection of cervical and breast cancer and anti-tobacco education.

- Free medical consultation with minimum anti-biotic therapy and vitamins extended to 96,732 out-patients from the rural public. Another 13,640 patients have been given emergency treatment for various causes.

- Medical treatment identity books issued to the 10,200 eligible contract workmen for availing medical treatment for self and their family members including in-patient treatment, free of cost.

- Ante-natal HIV screening for 477 women conducted apart from Community Health Screening for diabetes, hypertension and HIV covering 4050 persons from rural population and counseled for behavioural change.

- Tuberculosis screening/treatment extended to 6,900 patients and leprosy screening/ treatment has been extended to 40 patients.

- Eye camps conducted for prevention of blindness due to cataract and diabetic retinopathy.

- Rendered family planning services to 208 persons from the rural public and also immunisation services to 1,372 rural children.

- 9 medical camps were conducted in peripheral villages viz. Semmankuppam, Nandukuzhi, Thenkuthupudunagar, Vanathirayapuram, Uthangal, Matru Kudiruppu, Kammapuram, Kattukoodalur and Periyakurichi which are located within about 15 kilometres radius of Neyveli Township and 2,430 persons of these villages have been health-screened and 175 of them underwent follow-up dental treatment in your Company's General Hospital.

Contribution to the cause of Women

NLC Chapter of "Forum of Women in Public Sector" (WIPS) under the aegis of SCOPE is being patronised by your Company. Your Company provides all the requisite support to this forum in organising various programmes for the growth and development of women.

Awards & Recognition

Awards received by your Company during this year are given below.

- Corporate Social Responsibility Award 2009-10 from Govt, of Tamil Nadu in appreciation of NLC's yeoman service through socio economic welfare activities.

- 'Florence Nightingale Silver Trophy' from the Tamil Nadu Centre of St.John's Ambulance to NLC Hospital.

- "National Award for Innovative Training Practices 2009-10".

- 'Change Agent and Leadership Award' by World HRD congress for innovative strategies and approaches implemented by the Company.

- "Best Enterprise Award-2010" at the 21st National Meet of the Forum of Women in Public Sector.

Compliance under Persons with Disabilities Act, 1995

Your Company ensures compliance under the Persons with Disabilities Act, 1995. Suitable provisions / modifications are made in the working place to meet the requirements of such persons with disability.

Compliance underthe Rightto Information Act, 2005

Your Company ensures compliance under the Right to Information Act, 2005. A Central Public Information Officer, Appellate Officer and Central Assistant Public Information Officers representing different functional areas have been nominated to attend to the queries/appeals received under the RTI Act in a time bound manner. During the year 2010-11,292 nos. of requests containing more than 1000 queries were received from the general public and all requests have been complied with.

Citizen's Charter

Your Company maintains Citizen's Charter, indicating details of clients, customers under different ' heads, system of redressal of grievance available etc. and the same is regularly updated.

Energy Conservation and Research & Development

The particulars required under Section 217(1)(e) of the Companies Act, 1956 read with the Companies (Disclosure of particulars in the Report of the Board of Directors) Rules, 1988 regarding energy conservation measures, technology absorption and expenditure on R&D are furnished in Annexure-1.

Management Discussion & Analysis Report and Report on Corporate Governance

The Management Discussion & Analysis Report is furnished in Annexure-2. The report on Corporate Governance together with the Auditors' Certificate on the compliance of Corporate Governance conditions stipulated by Clause-49 of the Listing Agreement is furnished in Annexure-3 and 4 respectively.

Auditors

Cost Audit

S.Mahadevan & Co., Cost Accountants, have been appointed as the Cost Auditors for the year 2010-11, to carry out the cost audit for the three Power Stations of the Company. Ministry of Corporate Affairs has accorded approval for the above appointment vide its letter NO.52/67/CAB/2005 dated 18.05.2010.

The Cost Audit Report for the year 2009-10 has been uploaded with the Ministry of Corporate Affairs on 20.09.2010 against the due date of 27.09.2010 duly certified by the CostAuditor.

Branch Audit

Mundhra Rathi & Associates has been appointed as the Branch Auditors by C & AG for conducting the audit of Mine and Thermal Units at Barsingsar.

Statutory Audit

Ganesan and Company, Chartered Accountants and L.U.Krishnan & Co., Chartered Accountants, were appointed by the Comptroller & Auditor General of India (C&AG), as Joint Statutory Auditors for the year 2010-11 under Section 619 (2) of the CompaniesAct, 1956. The Board of Directors of the Company has fixed Rs.9.0 lakh plus applicable service tax as the Statutory Audit fees, to be shared equally by the Joint Auditors in addition to reimbursement of out of pocket expenses at actual and Rs.0.75 lakh plus applicable service tax to the Branch Auditor.

Reply to Statutory Auditors' observation on the accounts of the Company for the year ended 31s,March,2011 is furnished in Annexure-5.

C&AG's Comments

C&AG's comments on the accounts for the year ended 31st March, 2011 are furnished in Annexure-6.

Directors' Responsibility Statement as per Section 217(2AA) of the Companies Act, 1956

The Board of Directors declares:-

a. that in the preparation of the annual accounts, the applicable accounting standards had been followed along with proper explanation relating to material departures;

b. that the Directors had selected such accounting policies and applied them consistently and made judgments and estimates that are reasonable and prudent so as to give a true and fair view of the state of affairs of the Company at the end of the financial year and of the profit of the Company for that period;

c. that the Directors had taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions of the Companies Act for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities;

d. that the Directors had prepared the annual accounts on a going concern basis.

Board of Directors

Sarvashri L.N.Vijayaraghavan, V.Murali, M.B.N.Rao, M.M.Sharma, S.K.Roongta and A.RV.N.Sarma were inducted into the Board of Directors of the Company w.e.f. 30.09.2010. Sarvashri J. Mahilselvan, Sarat Kumar Acharya, R.K. Mishra and N.Sundaradevan were inducted in to the Board of Directors of the Company w.e.f. 23.07.2010, 16.12.2010, 24.03.2011 and 19.07.2011 respectively. Shri. P.Babu Rao relinquished his position in the Board w.e.f. 01.09.2010 on superannuation. The Board places on record its appreciation for the valuable contribution and guidance provided by Shri P.Babu Rao during his tenure as a Director of the Company.

Sarvashri R.Kandasamy, J.Mahi:.>eivan and Dr.Sanjay Govind Dhande, Directors, retire by rotation at the forthcoming Annual General Meeting and being eligible offer themselves for re-election.

Particulars of Employees

Particulars of employees as required under Section 217(2A) of the Companies Act, 1956, read with the Companies (Particulars of Employees) Rules, 1975 - Nil.

Acknowledgement

The Board of Directors of your Company places on record its sincere appreciation for the continued support and guidance extended by Ministry of Coal, Ministry of Power, Ministry of Environment & Forest, Central Electricity Authority, Ministry of Industry, Ministry of Labour, Planning Commission, Central Electricity Regulatory Commission, State Electricity Boards and beneficiaries ofTamil Nadu,Andhra Pradesh, Karnataka, Kerala, Puducherryand Rajasthan.

The Board of Directors of your Company is pleased to acknowledge with gratitude the co-operation and continued support extended by the Government of Tamil Nadu and the Cuddalore District administration. The support and co-operation by the Comptroller and Auditor General of India, the Statutory Auditors, Director General of Mine Safety, the Factory & Boiler Inspectorates, the Chief Inspector of Factories, the Director of Boilers, Central Pollution Control Board, State Pollution Control Board, Chief Controller of Explosives, Regional Labour Commissioner, Regional Provident Fund Commissioner, the Company's Bankers and KfW of Germany need special mention and the Directors acknowledge the same.

Your Directors also wish to place on record their appreciation for the dedicated work put-forth by the employees at all levels. The positive role played by the recognised Trade Unions and Associations of the Engineers and Officers in maintaining cordial industrial relations deserves special mention.

For and on behalf of the Board of Directors

PLACE : Chennai A.R.ANSARI

DATE : 21.07.2011 CHAIRMAN-CUM-MANAGING DIRECTOR

---

Mar 31, 2010

The Directors have great pleasure in presenting the 54th Annual Report of your Company together with theaudited accounts for the year ended 31st March, 2010.

Performance Highlights

Physical Performance

During the year 2009-10 your Company has achieved all around growth since inception in terms of overburden removal, lignite production, generation and export of power as under:

- Overburden removal of 1594.25 Lakh Cubic Metre (LM3) from all Mines put together.

- Total lignite production of 223.38 Lakh Tonnes (LT) from all Mines.

- Aggregate power generationof 17656.04 Million Units (MU) from all Power Stations.

- Export of powerfrom all PowerStations put together at 14828.22 MU.

- Overburden (OB) removal of 782.63 LM3fromMine-ll.

- PowergenerationfromTPS-llat10559.69MU.

Financial Performance

Your Company during the year under review registered a sales turnover of Rs.4121.03 crore and profit aftertax of Rs.1247.46 crore, which are the highest since inception.

Segment-wise Performance Mines

During the year 2009-10, the total Overburden removal was 1594.25 LM3 compared to 1463.44 LM3 achieved in the year 2008-09, registering a growth of 8.94%. The total Lignite production during the year 2009-10 was 223.38 LT as against 213.07 LT achieved in the year 2008-09, recording a growth of 4.84%.

The detailed Mine-wise performance for the year 2009-10 compared to 2008-09 is as below:

2009-10 2008-09

Mine Capacity Overburden Lignite Overburden Lignite (in MTPA) (in LM3) (in LT) (in LM3) (in LT)

Mine-I 10.5 508.52 91.59 501.54 90.40

Mine-IA 3.0 201.86 27.11 200.11 30.56

Mine-II 15.0 782.63 104.43 659.64 91.09

Barsingsar Mine 2.1 101.24 0.25 102.15 1.02

Total 30.6 1594.25 223.38 1463.44 213.07

During the year under review Mine-I had exceeded the last years performance in removal of OB and lignite production. OB removal in Mine-IA during the year 2009-10 was marginally higher compared to the year2008-09 while the lignite production was less compared to the previous year.

Members may be aware that Mine-IA, since commissioning, was working beyond the installed capacity mainly to supplement the lignite requirement of Thermal Power Station-ll as the production of lignite in Mine-ll got affected during the earlier years due to non-availability of required land for mining. As the availability of land for Mine-ll has since improved and the production of lignite in Mine-ll also increased and consequently the production from Mine-IA was maintained at optimum level during the financial year under review.

As seen from the above table, the performance of Mine-ll during the year under review was remarkable. The OB removal in Mine-llduringtheyear2009-10wasthehighestforanyyearsince inception, recording a growth of 18.65% compared to the previous year ended 31st March, 2009, while the lignite production recorded a growth of 14.64% during the year under review compared tothepreviousyear2008-09.

Lignite production from Barsingsar Mine in Rajasthan commenced in November 2009 and attained the rated capacity on 31st January, 2010. Both OB removal and lignite production were less during the year under review as the same were regulated due to slow progress of the work in the linked powerplantunderimplementation and consequent lower requirement of lignite.

Power

During the year 2009-10, the total power generation (Gross) from all power plants of the Company was 17656.04 MU compared to 15767.98 MU recorded during the year 2008-09, registering a growth of 11.97%. The power export during the year under review was 14828.22 MU as against 13204.05 MU made during the year 2008-09, recording a growth of 12.30%. The total power generation and export during the year 2009-10werethehighestsince inception.

The detailed Plant-wise performance for the year2009-10 compared to 2008-09 is as under:

Plant/Capacity 2009-10 2008-09

Gross Export PLF Gross Export PLF Gen.(inMU) (in MU) (%) Gen.(in MU) (in MU) (%)

TPS-I(600MW) 4114.44 3300.45 78.28 3577.49 2835.48 68.06

TPS-I Expn. (420 MW) 2979.43 2720.12 80.98 3126.05 2858.42 84.96

TPS-II(1470MW) 10559.69 8805.17 82.01 9064.44 7510.15 70.39

Barsingsar TPS 2.48 2.48 - - - -

Total 17656.04 14828.22 80.94 15767.98 13204.05 72.29

Thermal Power Station-I is one of the oldest power plants in the country, having served for more than 40 years and almost nearing its extended life. It was a remarkable performance from this plant, to register a growth of 15.01% in the generation during the year 2009-10 compared to the generation of 2008-09. Considering the age of this plant, it was earlier decided to taper down the generation between the years 2009 and 2014 in phases depending upon the condition of the Plant. However, TNEB as well as the Government of Tamil Nadu requested your Company directly and also through Ministry of Coal, to defer the retirement of Units for some more time in view of the prevailing power deficit situation in the State. In view of the above it has been decided to defer the programme of tapering down generation for the time being and firm up the same at a later date depending upon the performance of Units and the Residual Life Assessment (RLA) study results. The RLA study has been completed for two units and the study has indicated that the operation of the said units could be continued for a further period of about 5 years with some minor replacements. In respect of the balance seven units, the RLA study will be carried out for each unit on completion of the extended life period of 15 years.

During the year 2009-10, the power generation from TPS-I Expn., was less compared to the previous year2008-09 by 4.69% due to extended maintenance works carried out in both the units. The power generation from TPS-II during the year 2009-10 was the highest since inception, registering a growth of 16.50% compared to previous year 2008-09. This plant performed exceedingly well compared to previous years on account of availability of required quantum of lignite onsustained basisfrom Mine-Hand thetransportation of surplus lignite from otherMines. The Unit-I of Barsingsar TPS generated in-firm power of 2.48 MU since its synchronisation in October2009.

Financial Performance

During the year under review, your Company recorded a sales turnover of Rs.4121.03 crore compared to Rs.3354.91 crore achieved in the year 2008-09. The profit before tax for the year under review was Rs.1604.86 crore (previous year Rs.1046.01crore) while the profit after tax was Rs. 1247.46 crore (previous year Rs. 821.09 crore).

The increase in the sales turnover and the profit for the year ended 31st March, 2010 compared to previous year ended 31st March, 2009 was mainly on account of higher generation and export of power during the year 2009-10 and also due to adoption of higher tariff rate as per the tariff petitions filed before CERC.

The details of profit earned for the financial year ended 31st March, 2010 and appropriation of the same in comparison with the previous year ended 31st March, 2009 are as under:

(Rs. in crore)

2009-10 2008-09 Profit before tax 1604.86 1046.01

Tax provision 357.40 224.92

Profit after tax 1247.46 821.09

Appropriation:

Transfer to

Exchange rate variation of previous year 0.00 (0.45)

Bond Redemption Reserve 15.00 15.00

Interest Differential Reserve 12.50 20.69

General Reserve 100.00 70.00

Interim Dividend paid 167.77 0.00

Tax on Interim Dividend paid 28.51 0.00

Proposed Final Dividend 167.77 335.54

Tax on proposed Final Dividend 27.86 57.03

Dividend

Your Company paid an Interim Dividend @10% for the financial year 2009-10 during the month of March 2010. The Board of Directors of your Company have recommended a final dividend @10%(Re.1/-pershare)fortheyear2009-10.With this the total dividend for the financial year 2009-10 aggregates to 20% (previous year 20%). The total outgo on account of the dividend for the year 2009-10 including distribution tax will be Rs. 391.91 crore, which works out to 31.42% on Profit AfterTax (PAT).

Status of land acquisition

As stated earlier, the availability of land for mining especially for Mine-ll has improved to a great extent during the year under review. During the year 320 hectares of land have been taken possession and further requisition for 144.04 hectares of land has been placed before the District Administration. Your Company is actively pursuing the issue with the State Government, the District Administration and statutory authorities concerned for continued availability of land for mining. Based on the settlement reached between your Company and the land owners for payment of enhanced compensation for the acquisition, your Company during the year 2009-10 paid enhanced compensation of about Rs.11 crore through LokAdalat.

Sanctioned Projects Expansion Programme

The Government of India had sanctioned implementation of Mine-ll Expn., linked to TPS-IIExpn., project at Neyveli at an aggregate revised capital cost of Rs.4749.50 crore. Your Company is also implementing a Mine-cum-Power Project at Barsingsar in Rajasthan at an aggregate revised capital cost of Rs.1880.69 crore.

The status of implementation of the above projects is as under:

Mine-ll Expansion (10.5 MTPA to 15.0 MTPA)

Your Company has successfully completed the implementation of this project and this Mine attained rated production capacity during March 2010. Mine-ll Expansion was formally dedicated to the Nation on 5th April, 2010 by Shri. Sriprakash Jaiswal, the Honble Union Minister of State (Independent Charge) for Coal, Statistics and Programme Implementation. Overburden removal from Mine-ll Expansion during 2009-10 was 226.55 LM3 against the target of 190.00 LM3. The cumulative expenditure incurred upto 31st March,2010wasRs. 1808.34 crore.

Thermal PowerStation-ll Expansion (2x250 MW)

During the year 2009-10 hydro test of the Boiler for Unit-I and construction of Chimney and Cooling Tower-ll were completed. 400 KV switch yard was also commissioned during the year and the Generator Stator has been lifted and positioned. Erection of Water Treatment and Effluent Treatment Plants and Lignite Handling System are nearing completion. Erection of Boilers and Turbo-generators, Circulating Water System & Fire Protection System, Power Transformers, Ash Handling System and other miscellaneous works are in progress.

The anticipated commissioning of Unit-I and Unit-ll as perthe present progress of implementation is December 2010 and June 2011 respectively. Members may be aware that M/s.BHEL the Main Plant Package contractor, delayed in the initial stages the starting of the civil works and consequent erection works. The erection works are also progressing at a slow pace. Continuous review is being done atvarious levels with the top management of BHEL besides apprising Ministry of Coal, Ministry ofPowerand Ministry of Heavy Industries and also CEAfor expediting the erection activities by BHEL and for early commissioning of the project. The cumulative expenditure incurred upto 31st March, 2010 was Rs. 1948.27 crore.

Barsingsar Mine Project in Rajasthan (2.1 MTPA)

Overburden removal during the year 2009-10 was 101.24 LM3. Lignite excavation commenced on 23rd November, 2009 and production attained the rated capacity on 31st January, 2010.

The Lignite production in this Mine during the year 2009-10 was 0.25 LT against the target of 5.00 LT. As stated earlier production during the year under review was regulated based on the slow progress of the power plant under implementation. The cumulative expenditure incurred upto 31stMarch,2010 wasRs.214.51 crore.

Barsingsar Thermal PowerStation(2x 125 MW)

The Unit-I (125 MW) of the Barsingsar Thermal Power Project was synchronised during October 2009 and was formally dedicated to the Nation on 5th June, 2010 by Shri. Sriprakash Jaiswal, the Honble Union Minister of State (Independent Charge) for Coal, Statistics and

Programme Implementation. The Unit-ll (125MW) of the above project has also been synchronised on 5th June, 2010 after completion of major erection activities and the commissioning of this Unit is expected by September 2010. Project execution got delayed due to initial delay in supply and erection activities of Main Plant Package, Switchyard and Power transformer by M/s. BHEL. The cumulative expenditure incurred upto 31st March, 2010 was Rs.1407.82crore.

Joint Venture Project

Coal based Thermal Power Plant at Tuticorin (2x500 MW)

The Joint Venture Project between your Company and the Tamil Nadu Electricity Board (TNEB) viz., coal based thermal power plant of 2x500 MW capacity at Tuticorin in Tamil Nadu, is being implemented by your Company at a GOI sanctioned cost of Rs.4909.54 crore through NLC Tamil Nadu Power Limited, the Subsidiary Company. The equity participation in the JV Company by NLC and TNEB is in the ratio of 89:11 and share of equity contribution of around Rs.1311 crore to be made by your Company will be met through internal accruals over a period of time. The JV Company had earlier tied up with M/s.Rural Electrification Corporation Limited (REC) for its entire debt requirement of Rs.3437 crore. With a view to reduce the cost of debt component of the project, the JV Company has decided to replace the REC loan partially with a rupee term loan of Rs.2500 crore from Bank of Baroda and Bank of India consortium and this exercise would reduce the overall cost of the project and would also reduce the power tariff for the end consumers. The balance debt requirement has been proposed to be partially tied up through External Commercial Borrowings and through otherforms of borrowing viz., issue of bonds etc.

In respect of Main Plant Package of Steam Generator, Turbo Generator and Electrostatic Precipitator, the contract has been awarded to M/s. BHEL during the month of January 2009. M/s. BHEL has since commenced civil works for Boiler and ESP foundations and the supplies are also in progress. Other major contracts for this project viz., Coal Handling package, Circulating Water System package, Bi-flue Chimney package, Transformer package and Natural Draft Cooling Towers package have also been awarded. In respect of other packages award of work is underfinalisation.

As regards coal handling for the project, it is proposed to have a dedicated coal berth for which Tuticorin Port Trust has been entrusted with the construction and the work is under progress. The cumulative expenditure incurred for this project upto 31st March, 2010 was Rs.725 crore.

As perthe sanction of GOI, Unit-I of the project is to be commissioned by March 2012 and Unit -II by August 2012. Power purchase agreements have been signed with TNEB, ESCOMs of Karnataka State, Puducherry Electricity Department and Kerala State Electricity Board.

Wind Power Project

Your Company, as part of diversification programme to sustain and improve upon the growth rate, has decided to venture into green energy business by setting up a wind based power project, with an initial capacity of 50 MW in Tirunelveli District in the State of Tamil Nadu at an estimated cost of Rs.312.50 crore with a time schedule of 10 months from the zero date i.e. the date of placement of order. However, one machine will be installed within four months from the zero date. Feasibility Report has been prepared by ITCOT Consultancy Services and the Technical Consultant for this project is Centre for Wind Energy Technology (CWET), a R&D department under the Ministry of New & Renewable Energy Resources. Tender has been floated for procuring Wind Turbine Generator and the evaluation of the bids received is in process. Wind energy being a green energy source this project will be entitled to get carbon credit for the power generated which would make the project economicallyviable.

Project Funding

The projected debtfunding requirement for the projects under implementation viz., Mine-ll Expn., TPS-II Expn. and Barsingsar Mine-cum-Power Project is around Rs 4641 crore. Your Company has already tied up rupee term loan for Rs.2500 crore, through a consortium of domestic banks with Canara Bank as the consortium leader and EURO 50 million foreign currency loan under External Commercial Borrowing (ECB) route, syndicated by Calyon Bank presently renamed as Credit Agricole Corporate & Investment Bank to fund the above projects. Your Company has also issued Secured Redeemable Non-convertible Bonds for an aggregate amount of Rs.600 crore through private placement to meet part of the debt requirement for the above projects. The balance fund requirement of Rs. 1250 crore has been tied up in the form of another rupee term loan with a consortium of domestic banks with Canara Bank as the consortium leader.

Status of Advance Action Proposals (AAP) sanctioned by Government of India (GOI) Thermal Power Project in Neyveli

Your Company has proposed to set up a new power plant of 1000 MW capacity as a replacement to the existing Thermal Power Station-I at Neyveli. Ministry of Coal (MOC) had accorded sanction for Advance Action proposals for Rs.17.85 crore that included augmentation studies for the existing mines. The proposal for setting up the above Thermal Power Project (2x500 MW) at an estimated cost of Rs.5596 crore has been submitted to the Government in October 2009 for obtaining sanction. Necessary study for augmentation of lignite from Mine-I and Mine-IAto meet the additional requirement of lignite for the power project is in process. EIA/EMP Report has been submitted to Ministry of Environment and Forests in January 2010 for the issue of environmental clearance and the same has been considered by the Expert Appraisal Committee. NOC from Airport Authority has been received. All the constituent States of Southern Region have expressed their willingness to buy powerfrom this project and signing of Power Purchase Agreement (PPA) is in process. Ministry of Power has been addressed to decide the power allocation to the beneficiary States and also to accord Mega Power Project status for this project so as to avail certain duty concessions.

Bithnok Thermal Power Project with linked Mine

It is proposed to set up a Thermal Power Plant of 250 MW capacity with linked mine of 2.25 MTPA at Bithnok in Bikaner District in the State of Rajasthan. Ministry of Coal (MOC) has approved the Advance Action Proposal (AAP) at an estimated cost of Rs.10.45 crore for carrying out certain pre-project sanction activities for Mine and Power Projects. The Project proposal for setting up of 2.25 MTPA Mine at an estimated cost of Rs. 365.71 crore, with outsourcing option for both overburden and lignite removal and Thermal Power Project of 250 MW at an estimated cost of Rs.1670.54 crore, has been submitted to the Government during October 2009 for obtaining sanction. Public consultation process has been completed for both Mine and Power Projects. Expert Appraisal Committee of Ministry of Environment and Forest has considered the mining project. State Environmental Committee has issued the environmental clearance for the power project. NOC from Airport Authority has been received. Notification has been issued by Government of Rajasthan (GoR) for acquisition of required land for the project. Mining Plan has been approved by MOC and obtaining mining lease from GoR is in process.

Barsingsar Extension Power Project and Hadla & Palana Lignite Mine

Your Company also proposes to set up a Mine (2.5 MTPA) linking both Hadla & Palana lignite Blocks with the 250 MW power plant in Bikaner District of Rajasthan, as an extension of the on-going Barsingsar Power Project and with a view to utilise the lignite deposits in Hadla and Palana lignite blocks. Ministry of Coal has accorded sanction for the Advance Action Proposal (AAP) at an estimated cost of Rs.10.85 crore for carrying out certain pre-project sanction activities. Preparation of Feasibility Report (FR) for Hadla Mine and Thermal Power Project have been completed while the preparation of FR for Palana Block is in process. As per the Feasibility Reports the estimated cost of Hadla Mine project with outsourcing option for both overburden and lignite removal is Rs.350.13 crore while the estimated cost of the power project is Rs. 1691.65 crore. Preparation of EIA/EMP reportfor Mine and Power project is in advanced stage.

Jayamkondam Lignite based Mine-cum-Thermal Power Project

Your Company has proposed to set up a Lignite Mine(13.5 MTPA)-cum-Power (2x800 MW) project at Jayamkondam in the State of Tamil Nadu, at an aggregate estimated cost of Rs.18184 crore. Ministry of Coal has accorded sanction of Rs.11.90 crore for the Advance Action Proposal (AAP) for taking up certain preliminary works related to this project. Administrative sanction of State Government for acquisition of the required extent of land has been sought and also for the mining lease and allocation of water from Kollidam river. Preparation of Feasibility Reports and the composite environmental report covering mine and power projects are under finalisation. Geological exploration, soil investigation, contour survey and pump test have been completed. Socio Impact Assessment Study as per the requirement of National Rehabilitation and Resettlement Plan (NRRP)- 2007 Notification is under progress. Approval forthe mine plan has been received.

Gujarat Power Project with linked Lignite Mine

Your Company has proposed to set up a Mine (8.0 MTPA)-cum- Power (1000 MW) Project in the State of Gujarat, at an aggregate estimated cost of Rs.6400 crore as a Joint Venture with Gujarat

Power Corporation Limited. Ministry of Coal has sanctioned Rs 6.20 crore for the Advance Action Proposal (AAP) for taking up certain preliminary activities. The request of Government of Gujarat for allocation of higher share of power has been referred to Ministry of Power. However, GoG has evinced interest to develop the lignite block on its own to generate power for the State and the issue has been referred to Ministry of Coal.

Coal based Thermal Power Plant at Orissa

A mega coal based Thermal Power Plant of capacity (4x500 MW) has been proposed to be set up in the State of Orissa at an estimated cost of Rs.10000 crore for which Ministry of Coal has accorded sanction for the Advance Action Proposal at an estimated cost of Rs. 18.65 crore for carrying out certain pre-project sanction activities. Allocation of land in Rengali Taluk has been requested with the State Government for setting up the power plant. Participation of Mahanadi Coalfields Limited (MCL) in the above project, as ajoint venture partneris also being contemplated. Mine-Ill and Thermal Power Station-Ill atNeyveli

Your Company is updating the feasibility report prepared earlier to analyse the techno-economical viability of Mine-Ill project of capacity 8.0 MTPA. On completion of the same, the feasibility report fortheThermalPowerStation-lll of capacity of 1000 MWwill be finalised.

New initiatives for Power Generation and Mining Power Project in Uttar Pradesh

Your Company has proposed to enter into a Joint Venture Agreement with Uttar Pradesh Rajya Vidyut Utpadan Nigam Limited (UPRVUNL) for setting up a coal based power plant with a capacity of 2000 MW at an estimated cost of Rs. 10000 crore, in the State of Uttar Pradesh. Action has been initiated to sign an MoU with UPRVUNL and also to prepare FR & EIA/EMP reports. MOC has been requested to accord sanction for Advance Action Proposal for the proposed project to take up pre-project activities. Asuitable site in Kanpur Nagar district has been identified for setting up the power plant. Topographical survey of the site is proposed to be carried out by NT, Kanpur. Government of Uttar Pradesh has been requested to provide basic infrastructural facilities like land,waterfrom Yamuna river,supply of power and water for construction etc.

Joint Venture project in Orissa

A Joint Venture Company among Mahanadi Coalfields Limited (MCL), Hindalco and your Company with an equity participation of 70:15:15 respectively has been established for mining coal from Talabira II and III coal blocks. MCL, being the lead partner is carrying out all pre-project activities to establish a Mine of 20.0 MTPA capacity. Mine plan has been approved and land acquisition is in process. The share of coal mined from this block will be shared in the same ratio as equity andwill be utilised by your Company for power generation.

Devangudi Mine Project

Your Company has proposed to explore the possibility of developing the Devangudi mine project of capacity of 1.7 MTPA located in the Neyveli lignite field.

Ultra Mega Power Projects

To meet the growing demand for energy, Government of India (GOI) has planned for developing large size power projects called Ultra Mega Power Projects (UMPP), with a capacity of 4000 MW each in various States. Your Company is exploring the feasibility of taking part in UMPP at Cheyyur in the State of Tamil Nadu, as and when notified by GOI. Energy from other sources

Your Company as a part of diversification has also proposed to set up a 25 MW Solar Power Project. Other sources of energy viz.,hydel and nuclear power projects will also be considered by yourCompany depending upon theirviability

Development of Coal Blocks

Earlier your Company had planned to acquire coal blocks abroad by forming NLC Videsh, a Subsidiary Company, to meet its coal requirements for the new coal based power projects. MOC has advised yourCompany to consider having an arrangement with Coal India Limited (CIL) in the efforts towards acquisition of coal assets abroad and also to consider to associate CIL as a JVPartnerin this regard.

Your Company also intends to take up development of coal blocks allotted to State Government(s) and/or Private Companies either individually or jointly with State Governments and/or private Companies as a Public/Private Partnership project.

Power Project in Madhya Pradesh

Members may be aware that your Company had earlier planned to set up a power plant with a capacity of 1000 MW in the State of Madhya Pradesh, as a joint venture with Northern Coal Fields Limited, with 50:50 equity participation. Preliminary study indicated that the limited source of coal from Block-B might not be adequate for setting up a pithead power plant and in view of the same, further activities in connection with this project are not being taken upforthe present.

Power Tariff

In accordance with the Tariff Regulations 2004, which allows tariff revision twice during the tariff period (2004-09), the Central Electricity Regulatory Commission (CERC) has issued final tariff order during the year, revising the annual fixed charges on the additional capitalisation for the period 2007-09 in respect of all the powerstations of the Company.

During the last year, the Terms and Conditions of Tariff Regulations for the period 2009-14 was notified by CERC. The objective behind the new regulation is to encourage higher performance for which adequate incentives have been provided. While the operating norms have been made more stringent, the return on equity has been increased. Tariff petitions, as per the above Tariff Regulations 2009 in respect of all the existing power stations and the Barsingsar TPS for the period 2009-14 have been filed with the CERC and the hearing is in process.

Human Resource Development

Your Company believes that its growth is engineered by the growth of its people and the quality of its human resources. The total manpower of your company as on 31.03.2010 was 18,356 including 4,051 executives. Your Company continued its efforts in developing the human resources into a rebounding workforce so as to successfully meet challenges and achieve corporate excellence. To infuse young blood, 57 Graduate Executive Trainees were selected during the year through campusinterviews-an attempt madeforthefirsttimeinthehistory of yourCompany.

Training programmes were organised both in-house and through premier institutes in the country for more than 8000 nos. of employees. Under the "Workers Education Scheme" five programmes were conducted during the year under review.

Industrial Relation

Industrial relation scenario was generally peaceful and cordial during the year 2009-10. Your Company has a regular system of holding bi-partite meetings with the recognised unions regarding the issues of common interest of all employees. The new scheme of payment of Quarterly Plant Performance Reward (QPPR) & Productivity Linked Incentive (PLI) were implemented w.e.f. 01.01.2007. Executive pay revision with effect from 01.01.2007 has been implemented and Performance Related Pay for the year 2007-08 was paid during the year under review to executives, following the Department of Public Enterprises (DPE) Guidelines. MoU has been signed with the recognised unions for implementing wage revision for workmen and non-executives with effectfrom 01.01.2007.

Reservation of Posts

Your Company scrupulously follows the directives of the Government of India relating to reservation and welfare of the reserved categories such as Scheduled Caste / Scheduled Tribes, OBCs, Physically challenged, Ex-servicemen etc. Groupwise Men-in-Position and strength of SC/ST as on 31.03.2010 are as under:

Strength of SC/ST % of SC/ST Group Total Strength SC ST Total SC ST Toatl SC/ST SC/ST A 3,632 717 142 859 19.74 3.91 23.65 B 419 109 33 142 26.01 7.88 33.89

C 11,915 2,541 121 2,662 21.33 1.01 22.34

D 2,390 506 11 517 21.17 0.46 21.63

Total 18,356 3,873 307 4,180 21.10 1.67 22.77

Implementation of Official Language Policy

In order to fulfill the statutory provisions under the Official Language Act and also to follow the guidelines of Government of India with regard to implementation of official language, your Company has taken many proactive steps to ensure use of Hindi in official communication, besides offering incentives to employees for passing out prescribed Hindi exams. During the year your Company organised Hindi Fortnight and also Hindi workshops and for the purpose of effective use of Hindi by employees, Spoken Hindi books and Administrative Glossary (Hindi- English and English - Hindi) were distributed to them.

Environmental Measures

Your Company is an environmental friendly Company and accords highest priority for ecological balance and pollution control. Continuous air monitoring, effluent monitoring, mass afforestation programme year after year and implementation of pollution control measures reflect your Companys concern for protecting the nature. Neyveli Township including the mining area is a total green zone with more than 18 million trees which safeguards the ecological balance. Your

Companys concern for environment is also evidenced by its efforts to make the Neyveli Township,

a "Plastic Free Zone".

Safety

Your Company has a well defined safety and health policy which has been formulated in line with the recommendation of Fifth Safety Conference, Ministry of Coal and as per the statutory requirements. All the machinery/ equipment in the Power Stations and in Mines have been customised and automated and have also been incorporated with adequate safety features. Clear commitment at all levels for ensuring safety at work place and area wise responsibility has been fixed to ensure safe working environment. Works Committee, Plant Safety Committee/ Bi-partite/Tripartite Committee are functioning for taking up necessary preventive/corrective actions wherever required and also to create awareness among the employees on safety and health.

Emergency Preparedness Plan is in place in all Mines and Thermal Units to meet any contingencies that may arise.

Your Company has achieved Excellent level in the safety parameter in the MoU entered into with the Ministry of Coal for the past five years.

Vigilance

In consonance with the CVC guidelines preventive vigilance continued to be one of thrust areas of Vigilance Branch of your Company during the year. Circulars and guidelines of the Central Vigilance Commission were issued from time to time for further streamlining the rules, procedures etc. The Vigilance Awareness Week was celebrated during November 2009 and during the celebration the updated compendium of CVC circulars and annual report of the activities of the Vigilance Branch were released. More thrust is given fore-governance initiatives withaviewtofacilitategreatertransparencyin improvingthesystemsand procedures.

MoU with Transparency International

Your Company is one of the few institutions who have signed the Memorandum of Understanding with Transparency International - India. This body is the Indian Chapter of Berlin based Transparency International, a not-for-profit and non-government organisation committed to eradicate corruption in any form.

Township

Neyveli Township spreading over 50 Sq. Kms., has more than 21000 self-contained quarters with all allied facilities and total population of about 1,50,000 as of date. The facilities include schools, college, sophisticated general hospital, library, swimming pools, auditorium, stadium, community welfare centres, recreation clubs, reading rooms, parks, banks, shopping complex, Government agencies, etc. Your Company has installed a water treatment plant in the township to conserve the precious ground water. Your Company has also provided township facilities in Shakthi Nagar to the employees of Barsingsar Project.

Education

Your Company continues to provide quality education to the wards of employees and to the children from the neighbouring villages through 13 schools with good infrastructure and with grant-in-aid from the State Government. Training programmes such as "Counselling Techniques". "Total Quality Teaching", "Innovative Teaching Methods" are arranged for the benefit of the teachers of NLC Schools.

Medical Services

Your Company maintains a sophisticated 369 bedded General Hospital for providing quality medical treatment and occupational health services to the regular employees and contract workers, and their dependants apart from other inhabitants of Neyveli Township. During the year 2009-10, around 7.5 lakh out-patients and 14,947 in-patients were treated in the Hospital. Corporate Social Responsibility (CSR)

Your Company during the year has formally adopted CSR Policy for taking up various projects / activities surrounding the Companys project sites for the welfare of the society at large. It has been decided to earmark 1 % of the profit after tax as the budget for every year towards the CSR activities.

Even prior to formally adopting the CSR policy, your Company has been taking up various CSR related projects/activities for the benefit of inhabitants of neighbouring villages. Some of the initiatives taken earlierand continued during the year under review are asunder:

- Your Company patronises Neyveli Health Promotion and Social Welfare Society (NHPSWS) to support its social welfare activities. This society serves by way of providing training and arranging for job opportunities for the benefit of physically challenged persons, widows and destitutes within a larger ambit of Neyveli. This Society also runs a School "Shravanee" for hearing impaired, ComputerTraining Institute and provide artificial limbs, etc.

- Your Company is also extending all assistance including grant and infrastructure facilities in running the Sneha Opportunity School, a day- care centre for mentally disabled children. This school adopts a holistic approach towards providing individual attention to train children in different skills like arts, crafts, weaving, carpentry, gardening, screen printing, doll making etc., in order to make them self-reliant and fit for earning their livelihood.

- Your Company also provides quality medical treatment and occupational health service through its hospital to all inhabitants of the

Neyveli Township and its surrounding villages. More than one lakh rural population got medical assistance during the year 2009-10. An exclusive out-patient services unit is operated at the General Hospital wherein medical consultation services are offered free of cost to the general public. Medical treatment identity books have been issued to 10,200 eligible contract workmen for availing medical treatment for self and their family members including in-patient treatment, free of cost. A separate dispensary with adequate infrastructure has been opened in April 2009 for extending medical treatment to the contract workmen. Considering the requirements and need to provide medical care to the contract workers augmentation of further facilities in the General Hospital and building up of other infrastructure supportareunderprogress.

- Your Company hospital has taken up CSR health initiatives which involve immunisation programme, peripheral medical camps and community health screening to benefit the surrounding rural population. Ten medical camps were conducted during 2009-10 in peripheral villages viz., Matru Kudiiruppu, Kamaraj Nagar, Uyyakundaravi, Mandarakuppam, Kathazhai, Mettukuppam and Serakuppam, which are located within 15-20 kilometre radius of Neyveli Township. Major objective of the camps was to benefit rural people who had no access to health care and to screen them for ailments like diabetes, hyper-tension, dental problems, cervix cancer and breast cancer for further treatement at NLCGH.

- Two major community health-screening camps in the Annual Book Fair and Safety Week Celebrations were conducted in the year 2009-10 covering around 9,200 visitors who had volunteered screening for HIV, diabetes, hypertension, obesity etc.

- During the year Diabetic Retinopathy Screening Camp was conducted in association with Aravind Eye Hospital, Puducherry benefitting more than 750 persons. Your Company also continued with the medical support for the elderly people residing at Thamaraikulam village in Cuddalore District, maintained by the HelpAge India.

- As part of National Health Programme and also a CSR measure, the following programmes were undertaken during the year 2009-10:

- Anti mosquito control work was carried out effectively under National Malaria Eradication Programme in Neyveli.

- Pulse Polio Immunisation Programme was carried out successfully and 12,472 children were immunised in the surroundings of Neyveli.

- Under Filaria Control Programme medicine was issued to the entire population of Neyveli as a prophylactic measure with the helpof voluntary organisations.

- Your Company provides infrastructural support and also periodical financial grants to Jawahar Education Society which provides quality education not only to the wards of employees but also to the children of villages around Neyveli Township. Further, your Company also provides free school diaries, uniforms and footwear to the students of Elementary and Middle Schools, where themajorityoffhestudentpopulafion is from neighbouring villages.

- Your Company provides continuous supply of water to nearby villages for irrigating over 23,000 acres of land. Sinking of new bore well and maintenance of the existing bore wellsfor providing potable waterto more than 70 villages forms part of CSR activities.

- Construction of bridges, culverts and public toilets in nearby villages were also undertaken besides laying of roads and de-silting of lakes.

- Establishment of an Industrial Training Institute in Barsingsar village to impart technical skills in various trades to the population around the project site is also in process.

- During the year 23 CSR focused training programmes covering 7,871 students and 146 teachers from various schools on various themes such as examination skills, motivation, understanding adolescence, road safety, energy conservation etc., were conducted. 3,615 students were given in-plant training at various units and 1,868 students had undertaken project work in engineering, management, finance and other disciplines.

- In recognition of the past services, your Company is implementing schemes for reimbursement of medical expenses and also extends insurance cover for retired employees and their spouses under "Retirees Health Insurance Scheme". During the year the amount payable towards reimbursement of medical expenses to the retired employees was enhanced from Rs.3,500/- to Rs.6,000/, Family Relief and Death Relief Fund Schemes are also in operation for the benefit of eligible dependents of the employees who die in harness.

Contribution to the cause of Women

NLC Chapter of "Forum of Women in Public Sector" (WIPS) under the aegis of SCOPE is being patronised by your Company. Your Company provides all the requisite support to this Forum in organising various programme forthe growth and development of women.

Awards

- Your Company has been declared as the "Best Establishment of the Region" for the year 2008-09 by the Directorate General of Employment and Training, Ministry of Labour & Employment, Govt, of India.

- Your Company has bagged the "Shramik Shiksha Award" for imparting quality education to its workers. The award was instituted by Central Board of Workers Education (CBWE), Nagpurfunctioning underthe aegis of Ministry of Labourand Employment, Governmentof India.

- Your Company has also bagged the Dalai Street Investment Journal PSU Award, forthe year 2010under"PSUwith highest market capitalisation" category.

- During the year, "The longest accident free year for the State" was received from the Governmentof Tamilnaduforthecalendaryear2006.

- During the year, Quality Circles of the Company participated in the National Convention of Quality Circles organised by QCFI, Bengaluru Chapter and won meritorious and excellence awards.

Compliance under Persons with Disabilities Act, 1995

Your Company ensures compliance under the Persons with Disabilities Act, 1995. Suitable provisions/ modifications are made in the working place to meet the requirements of such persons with disability.

Compliance under the Right to Information Act, 2005

Your Company ensures compliance under the Right to Information Act, 2005. A Central Public Information Officer, Appellate Officer and Central Assistant Public Information Officers representing different functional area have been nominated to attend to the queries/appeals received underthe RTI Act in a time bound manner. During the year 2009-10, 227 nos. of requests containing more than 833 queries were received from the general public and all requests have been complied with. Citizens Charter

Your Company maintains Citizens Charter, indicating details of clients, customers under different heads, system of redressal of grievance available and nodal authorities for redressal of grievance.

The Citizens Charter is regularly updated.

Energy Conservation and Research & Development

The particulars required under Section 217(1)(e) of the Companies Act, 1956 read with the Companies (Disclosure of particulars in the Report of the Board of Directors) Rules, 1988 regarding the energy conservation measures, technology absorption and expenditure on R&D are furnished in Annexure-1.

Management Discussion & Analysis Report and Report on Corporate Governance

The Management Discussion & Analysis Report is furnished in Annexure-2. The report on Corporate Governance together with the Auditors Certificate on the compliance of Corporate Governance conditions stipulated by Clause-49 of the Listing Agreement are furnished in Annexure-3 and 4 respectively.

Auditors Cost Audit

S.Mahadevan & Co., Cost Accountants, have been appointed as the Cost Auditors for the year 2009-10 to carry out the cost audit for the three Power Stations of the Company. Statutory Audit Ganesan and Company, Chartered Accountants and L.U.Krishnan & Company, Chartered Accountants, were appointed by the Comptroller & Auditor General of India (C&AG), as Joint Statutory Auditors for the year 2009-10 under Section 619 (2) of the Companies Act, 1956. The Board of Directors of the Company has fixed Rs.9.0 lakh as the StatutoryAudit fees, to be shared equally by the Joint Auditors in addition to reimbursement of out of pocket expenses at actuals. Reply to Statutory Auditors observation on the accounts of the Company for the year ended 31st March, 2010 is furnished in Annexure-5.

C&AGs Comments

C&AGs Comments on the accounts for the year ended 31st March, 2010 are furnished in Annexure-6.

Directors Responsibility Statement as per Section 217(2AA)of the Companies Act, 1956

The Board of Directors declares:-

a. that in the preparation of the annual accounts, the applicable accounting standards had been followed along with proper explanation relating to material departures;

b. that the Directors had selected such accounting policies and applied them consistently and made judgments and estimates that are reasonable and prudent so as to give a true and fair view of the state of affairs of the Company at the end of the financial year and of the profitoftheCompanyforthat period;

c. that the Directors had taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions of this Act for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities;

d. that the Directors had prepared the annual accounts on a going concern basis.

Board of Directors

Shri.J.N.Prasanna Kumar and Shri. V.Sethuraman, relinquished their office on 30.09.2009 and 31.03.2010 respectively on attaining their age of superannuation. Dr.M.S.Ananth, Part-time Non-official Director who was on the Board of Directors of the Company relinquished his office w.e.f. 31.10.2009 on completion of three year tenure. Dr. Rajiv Sharma, the then Additional Secretary, Ministry of Coal, Government of India and Shri M.F.Farooqui, the then Secretary to Government of Tamil Nadu, Industries Department, relinquished from the Board of Directors of the Company w.e.f. 31.07.2009 and 07.12.2009 respectively. Sarvashri Y.N. Apparao, Shashi Kumar, Dr. Krishna Kumar, Ravindra Sharma, P.K. Choudhury, Prof. S. Sadagopan and S. Rammohan, Part-time Non-official Directors relinquished their office w.e.f. 01.06.2010 on expiry of the tenure as perthe terms and conditions of their appointment. Sarvashri R.Kandasamy, K.Sekar, Alok Perti and Rajeev Ranjan were inducted into the Board of Directors of the Company during the year under review. Dr. Sanjay Govind Dhande has been inducted as a Part-time Non-official Director on the Board of the Company with effectfrom 26.06.2010.

The Board places on record its appreciation for the valuable contribution and guidance provided by Sarvashri J.N.Prasanna Kumar, V.Sethuraman, Dr.M.S.Ananth, Dr.Rajiv Sharma, M.F.Farooqui, Y.N. Apparao, Shashi Kumar, Dr. Krishna Kumar, Ravindra Sharma, P.K. Choudhury, Prof. S. Sadagopan and S. Rammohan, during their tenure as Directors of the Company. Shri B. Surender Mohan, Director, retires by rotation at the forthcoming Annual General Meeting and being eligible offers himself for re-election.

Particulars of Employees

Particulars of employees as required under Section 217(2A) of the Companies Act, 1956, read with the Companies (Particulars of Employees) Rules, 1975- Nil.

Acknowledgement

The Board of Directors of your Company places on record its sincere appreciation for the continued support and guidance extended by Ministry of Coal, Ministry of Power, Ministry of Environment & Forest, Central Electricity Authority, Ministry of Industry, Ministry of Labour, Planning Commission, Central Electricity Regulatory Commission, State Electricity Boards and DISCOMsof Tamil Nadu,Andhra Pradesh, Karnataka, Kerala and Puducherry. The Board of Directors of your Company is pleased to acknowledge with gratitude the co-operation and continued support extended by the Government of Tamil Nadu and the Cuddalore District Administration. The support and co-operation by the Comptroller and Auditor General of India, the Statutory Auditors, Director General of Mine Safety, the Factory & Boiler Inspectorates, the Chief Inspector of Boilers and Factories, Central Pollution Control Board, State Pollution Control Board, Chief Controller of Explosives, Regional LabourCommissioner, Regional Provident Fund Commissioner, the Companys Bankers and KfW of Germany need special mention and the Directors acknowledge the same.

Your Directors also wish to place on record their appreciation for the dedicated work put-forth by the employees at all levels. The positive role played by the recognised Trade Unions and Associations of the Engineers and Officers in maintaining cordial industrial relations deserves special mention.

for and on behalf of the Board of Directors Place :Chennai A.R.ANSARI

Date : 22.07.2010 CHAIRMAN-CUM-MANAGING DIRECTOR