NTPC Limited

1975 to 1994

The company was founded on 7 November 1975 as "National Thermal Power Corporation Private Limited". It started work on its first thermal power project in 1976 at Shaktinagar (named National Thermal Power Corporation Private Limited Singrauli) in Uttar Pradesh. In the same year, its name was changed to "National Thermal Power Corporation Limited". In 1983, NTPC began commercial operations (of selling power) and earned profits of INR 4.5 crores in FY 1982-83. By the end of 1985, it had achieved power generation capacity of 2000 MW.
In 1986, it completed synchronisation of its first 500 MW unit at Singrauli. In 1988, it commissioned two 500 MW units, one each in Rihand and Ramagundam. In 1989, it started a consultancy division. In 1992, it acquired Feroze Gandhi Unchahar Thermal Power Station (with from Uttar Pradesh Rajya Vidyut Utpadan Nigam of Uttar Pradesh. By the end of 1994, its installed capacity crossed 15,000 MW.

1995 to 2004

In 1995, it took over the Talchar Thermal Power Station from Orissa State Electricity Board. In the year 1997, Government of India conferred it with "Navratna" status. In the same year it achieved a milestone of generation of 100 billion units of electricity in a year. In 1998, it commissioned its first naptha-based plant at Kayamkulam with a capacity of 350 MW. In 1999, its plant in Dadri, which had the highest plant load factor (PLF) in India of 96%, was certified with ISO-14001. During 2000, it commenced construction of its first hydro-electric power project, with 800 MW capacity, in Himachal Pradesh.
In 2002, it incorporated 3 subsidiary companies: "NTPC Electric Supply Company Limited" for forward integration by entering into the business of distribution and trading of power; "NTPC Vidyut Vyapar Nigam Limited" for meeting the expected rise in energy trading; "NTPC Hydro Limited" to carry out the business of implementing and operating small and medium hydro-power projects. In the same year its installed capacity crossed 20,000 MW.

Listing: NTPC got listed on BSE and NSE on 5 November 2004. Against the issue price of INR 62 per share, it closed the first day of listing with INR 75.55 per share. On the day of listing, it become the third largest company in India in terms of market capitalisation.

2005 to present

In October 2005, the company's name was changed from "National Thermal Power Corporation Limited" to "NTPC Limited". The primary reason for this change was the company's foray into hydro and nuclear based power generation along with backward integration by coal mining. In 2006, it entered into an agreement with Government of Sri Lanka to set up two units of 250 MW each in Trincomalee in Sri Lanka. During 2008 and 2011, NTPC entered into Joint Ventures with BHEL, Bharat Forge, NHPC, Coal India, SAIL, NMDC and NPCIL to expand its business of power generation. By the end of 2010, its installed capacity crossed 31,000 MW.

The company in 2009 joined forces with other state enterprises Rashtriya Ispat Nigam, Steel Authority of India, Coal India, National Minerals Development Corporation and National Thermal Power Corporation to invest in coal mining operations through a joint venture vehicle named International Coal Ventures Private Limited (ICVL). In July 2014 ICVL acquired a 65 percent stake in the Benga coal mine in Mozambique from the Rio Tinto Group

Operations

NTPC operates from 55 locations in India, one location in Sri Lanka and 2 locations in Bangladesh.
Headquarters: In India, it has 8 regional headquarters (HQ):

Scheduling and generation dispatch: The Scheduling and Dispatch of all the generating stations owned by National Thermal Power Corporation is done by respective Regional Load Dispatch Centres which are the apex body to ensure integrated operation of the power system grid in the respective region. All these Load Dispatch Centres come under Power System Operation Corporation Limited (POSOCO).

NTPC Plants and their capacity

The total installed capacity of the company is 45548 MW (including JVs) with own 18 coal-based and 7 gas-based stations and 6 coal based and 1 gas based in JV/ Subsidiary Companies, located across the country.

Gas Based (Owned through JVs)

1. Ratnagiri Gas and Power Private Limited (RGPPL) is joint venture project with GAIL in Indian state of Maharashtra. Its installed capacity is 1967.08 MW.

Hydro-Electric Power Plants

The company has also stepped up its hydroelectric power (hydel) projects implementation. Some of these projects are:

1. Loharinag Pala Hydro Power Project by NTPC Ltd: Loharinag Pala Hydro Power Project (600 MW i.e.150 MW x 4 Units) is located on river Bhagirathi (a tributary of the Ganges) in Uttarkashi district of Uttarakhand state. This is the first project downstream from the origin of the Ganges at Gangotri. Project was at advance stage of construction when it was discontinued by Government of India in August 2010.
2. Tapovan Vishnugad 520MW Hydro Power Project by NTPC Ltd: In Joshimath town. The project is under construction.
3. Lata Tapovan 130MW Hydro Power Project by NTPC Ltd: is further upstream to Joshimath. This project is under environmental revision.
4. Koldam Dam Hydro Power Project 800 MW in Himachal Pradesh (130 km from Chandigarh ).All unit of this project are under commercial operation w.e.f. 18 July 2015.
5. Rupasiyabagar Khasiabara HPP, 261 MW in Pithoragarh, Uttarakhand State, near China Border. This project is yet to be given investment approval.
6. Singrauli CW Discharge (Small Hydro) 8 MW is under construction on discharge canal of Singrauli Super Thermal Power Station in Uttar Pradesh.
7. Rammam Hydro 120 MW run of the river is under construction project on Rammam river at approx 150 km from Bagdogra / Siliguri in Distt. Darjeeling in West Bengal.The Darjeeling town is 50 km from the project.

Solar Photovoltaic Power Plants

NTPC has drafted its business plan of capacity addition of about 1,000 MW through renewable resources by 2017. In this endeavour, NTPC has already commissioned 310 MW Solar PV Projects. 50 MW Solar PV at Anantpur in Andhra Pradesh, 260 MW Solar PV at Bhadla in Rajasthan and 250 MW Solar PV at Mandsar in Madhya Pradesh are under implementation.

Future Goals

The Company has developed a long term plan to become 128000 MW company by the year 2032. NTPC Limited is on an expansion spree to meet the power requirements of the country – it has targeted to add 14,058 MW in 12th Plan (From FY13 to FY 17) of which it had already added 4,170 MW in the year 2012-13, 1835 MW in the year 2013-14 1290 MW in the year 2014-15 and 1150 MW from April 2015 to 30 November 2015.

As on 30 November 2015, the Company has 23004 MW under construction. NTPC is diversifying its capacity mix with lots of emphasis on renewable energy. As on 30.11.2015, NTPC has 110 MW Solar PV capacity under operation, 250 MW under construction and 1260 MW under tendering. The Company intends to add 10000 MW of Solar PV capacity in next 5 years. On 18.07.2015, NTPC declared commercial its first Hydro Power plant at Koldam in the State of Himachal Pradesh. By the year 2032, Company has a long term plan to reduce its fossil fuel capacity mix to 56%.

NTPC also plans to go global. The public sector company has signed a memorandum of agreement with the Government of Sri Lanka and Ceylon Electricity Board for setting up a 500 MW (2x250) coal-based thermal power plant in the island nation. An MoU has also been signed with Kyushu Electric Power Co. Inc., Japan, for establishing an alliance for exchange of information and experts from different areas of the business. The company is also in the process of finalising an MoU with Nigeria for setting up power plants against allocation of LNG on long-term basis for NTPC plants in India. NTPC also developing a joint-venture coal-based power plant 1,320 MW (2x660) with Bangladesh Power Development Board known as Bangladesh India Friendship Power Company in Rampal, Bangladesh which is facing tremendous opposition from the people of Bangladesh owing to the plant's dangerously close proximity to the Sundarbans.

NTPC has also been allotted coal blocks namely, Pakri Barwadih, Chatti Bariatu and Kerandari in Jharkhand, Talipalli, Chhattisgarh and Dulanga, Odisha. Except Pakri Barwadih all other blocks were cancelled by a decision of Supreme Court of India on 24 September 2014. However, the Company was again allotted cancelled block under Section 5 of Coal Mines (Special Provision Act 2015) Besides these blocks, Ministry of Coal has vide its press release dated 3 July 2013 has allotted 4 more blocks namely, Banai and Bhalmuda in Chhattisgarh, Chandrabila and Kudanli Laburi in Odisha. Two more blocks namely Mandakini- II and Banhardih are expected to be allotted to NTPC soon. All these mines are having estimated Geological Reserves of 6.7 Billion Tonnes. NTPC has appointed Mining Cum Development Operator (MDO) for its Pakri Barwadih mine.

Listings and shareholding

The equity shares of NTPC are listed on the Bombay Stock Exchange, where it is a constituent of the BSE SENSEX index, and the National Stock Exchange of India, where it is a constituent of the S&P CNX Nifty.

In Sep. 2015, Government of India held around 74.96% equity shares in NTPC. Over 680,000 individual shareholders hold approx. 1.92% of its shares.Life Insurance Corporation of India is the largest non-promoter shareholder in the company with 10.03% shareholding.

In February 2016, the GOI divested further its 5% stake in NTPC through OFS (Stock Exchange Mechanism) and reduced the holding of GOI in NTPC to 5,76,83,41,760 shares i.e. 69.96% out of total 8,24,54,64,400 shares.

The balance is held by public, FIIs, Mutual Funds and Banks.

Employees

As on 31 March 2015, the company had 24,067 employees. The attrition rate for the FY 2014-15, including the trainee employees and employees working for subsidiaries and JVs, was 1.35%. Man MW Ratio of the Company has fallen from 0.77 in the FY11 to 0.61 in FY 15. NTPC has been awarded continuously as great places to work for in PSUs category

Awards and recognitions

Criticism

Land acquisition in tribal areas: The company (and other PSUs in India) has been allotted land for setting up power plants and related infrastructure in rural/tribal areas across the country by Central Government and various state governments. Some of these lands have been allotted to NTPC (and other PSUs in India) through Land Acquisition Acts passed by Central/State Governments. Wherever a land acquisition law is enacted, it also places a liability on the PSUs/governments to take actions for proper rehabilitation of displaced residents of that rural/tribal area. Governments/PSUs are criticised if they do not fulfill their liability towards displaced residents. In many areas where land acquisition is proposed through land acquisition laws, local residents oppose the forcible acquisition as they are not sure of proper rehabilitation.