Registered a net profit of Rs. 701 crore against Rs. 685 crore during the previous financial year.

Achieved an all time high sales turnover of Rs. 1834 crore as against Rs. 1668 crore during the year 2004-05.

Rs. 140  crore  given to Government of India as Dividend for 2005-06.

The Corporation is in the process of raising 100 Million USD loan through ECA route for part financing of prestigious Subansiri lower Project.

Obtained new consultancy assignments amounting to Rs. 65 crore against the target of Rs. 20 crore.

Total bills for Rs. 1858 crore raised to SEBs.

Achieved total realization of Rs. 1911 crore.

Standard & Poors (S & P) & Fitch Ratings reaffirms NHPC’s Long Term Foreign Currency Rating to BB+(Stable). Fitch Rating also reaffirmed rating for Domestic borrowings as AAA.

Paid up capital of the Corporation raised to Rs. 10215 crore.

The Power Stations achieved a capacity index of 98.16% this year against the last year index of  95.28 %.

Achieved highest ever generation of 12567 million units against last year generation of 11286 million units.

Commissioned the 280 MW Dhauliganga Power Station in Uttaranchal.

Power Purchase agreements signed for Kishanganga, Nimmo Bazgo, Chutak, Uri-II, Dul Hasti, Chamera-III and Teesta Low Dam Project Stage-IV with the concerned beneficiaries.

Finalized major contract agreements for civil works of Uri-II, Chamera-III, Parbati-III & Teesta Low Dam Stage-IV Projects.

Baira Siul Power Station in Himachal Pradesh completed 25 years of operation.

Achieved the feat of excavating one of the longest Inclined Pressure Shafts in the World at Parbati Stage-II Project.

Signed agreements with Government of Sikkim for execution of the 495 MW Teesta Stasge-IV and 210 MW Lachen Hydroelectric Projects in Sikkim on BOOM basis.

MOU signed with Uttaranchal Government for implementation of 240 MW Chungar Chal, 630 MW Garba Tawaghat and 55 MW Karmoli Lumti Tulli Projects in Uttaranchal.

Environment clearance accorded by Ministry of Environment & Forest for 520 MW Parbati-III Project in Himachal Pradesh, 45 MW Nimoo Bazgo and 44 MW Chutak Projects in Jammu & Kashmir.

Revised environment clearance accorded by Ministry of Environment & Forest for the 330 MW Kishenganga Project.

Government sanction accorded for execution of 240 MW Uri-II in J & K, 231 MW Chamera-III in Himachal Pradesh, 160 MW Teesta Low Dam-IV in West Bengal and 520 MW Parbati-III Project in Himachal Pradesh.

Capacity addition plan for 10^th Plan period is 2480 MW, out of which 1580 MW has already been achieved. NHPC is poised to become 10,000 MW plus company by the end of 2012.

Organization has launched a major initiative to implement Enterprise Resource Planning (ERP) software solution framework for integrating major business processes to achieve quality of work, improved profitability and performance.

NHPC is committed to imbibe new organizational culture for powering the nation through 5 Ps viz. Performance, Pioneering, Participative, People Sensitivity and Positive attitude.

Corporate Social Responsibility– Community Development (CSR–CD) Initiatives Scheme has been introduced with the aim of aligning business operations with social values. Through this initiative, NHPC will undertake community development programme in and around its Power Stations.

NHPC has initiated Business Process reorganization and restructuring of the organization.
 

Annual Review 2005-06 

Highest ever turnover and net profit, Commissioning of 280 MW Dhauliganga Power Station in Uttaranchal, finalizing major contract agreements for civil works of Uri-II, Chamera-III, Parbati-III & Teesta Low Dam Stage-IV, surpassing the MOU generation target, achieving 98.16 % Capacity Index, record realization of energy bills from various beneficiaries, signing of power purchase agreements for 7 projects with various beneficiaries, Bagging more consultancy assignments, Obtaining Government sanction for 4 projects with a total installed capacity of 1151 MW,  bagging 2 projects in Sikkim and 3 projects in Uttaranchal, Submission of DPR of 8 Projects with an installed capacity of 6085 MW to CEA/ CWC for TEC / TEA,  speeding up construction activities on Dul Hasti, Teesta Stage-V and other Projects   are some of the major achievements of NHPC during the Financial Year 2005-06.  

FINANCIAL INITIATIVES & ACHIEVEMENTS DURING 2005-06

Ø      Registered a net profit of Rs. 701 crore in the year 2005-06.

Ø     Achieved an all time high sales turnover of Rs. 1834 crore as against Rs. 1668 crore during the year 2004-05   

Ø      Rs. 140 crore given to Government of India as Dividend for 2005-06.

Ø     Highest rating for Domestic borrowings i.e. ‘AAA’ & for external borrowings BB+/Stable, equivalent to Sovereign rating re-affirmed by reputed International rating agencies.

Ø     The average rate of Interest on borrowings has been brought down to around 6% p.a. (2005-06) from 10% p.a. (1999-2000)

Ø     The Corporation is in the process of raising 100 Million USD loan through ECA route for part financing of prestigious Subansiri lower Project.

Ø     As financial re-engineering General purpose loans raised in previous years (1997-98 to 2002-03) are being pre-paid to improve profitability,   Corporation is poised to liquidate all General purpose loans during the current financial year.

Ø     Became self sufficient for its short term/ working capital needs.

Ø     Standardized Accounting & Internal Audit procedures by way of their Manualisation.

Ø     All set to generate Internal Resources to partly finance funds for Plan Outlay requirements from the year 2006-07 & onwards.

Ø     The Corporation has switched over to electronic mode of payments to its contractors/suppliers wherever possible.  Some of the Regional offices have also been lined to net banking.

Paid Up Capital

The Board of NHPC has allotted 5,66,800 equity shares to the President of India in its meeting held on 24.3.2006. With this, the total paid up capital of the Corporation has gone up to Rs. 10, 215.28 crore.

Power Generation

            During the period under review, the operating Power Stations of the Corporation generated  12567.15 million units against the MoU target of 12344 million units for “very good” rating , as compared to 11286.43 million units generated during the previous year showing an increase of  11.347 %. 

·       The machine availability of the operating Power Stations measured as capacity index is 98.16 % against the annual MoU target of 96.2 % for Excellent Rating.  

·      Almost all  power stations exceeded generation target. The 690 MW Salal Power Station generated 3480.86 million units against the MoU target of 3082  million units . The 105 MW Loktak Power Station in Manipur achieved generation of 586.12 million units against the target of 448 million units. The 60 MW Rangit Power Station in Sikkim achieved generation of 352.05  million units  against the target of 339 million units. The 180 MW Baira Siul Power Station in Himachal Pradesh achieved a generation of 790.99  million units against the target of 779 million units. 540 MW Chamera Stage-I generated  2343.18 million units against the target of 1665  million units. The 120 MW Tanakpur Power Station generated 483.15 million units against the target of 452 million units.  

Sale of energy & Realization

·        During the financial year 2005-06, the Corporation raised a total  billing of Rs. 1858.27 crore to the various beneficiaries and the total amount realized was Rs. 1911.32 core. The current outstanding dues towards principal amount have been reduced to Rs. 20.75 crore ( as on 31.3.2006) from Rs. 73.80 crore ( as on 31.3.2005) which is equivalent to reduction in terms of months of average billing from 0.54 to 0.13. Besides the above realization, UI charges of Rs. 58.77 crore and surcharge of Rs. 22.75 crore and interest on bonds of Rs. 257.14 crore has also been received during the year. Long pending outstanding dues as on 30.9.2001 amounting to Rs. 33.38 crore have been securitized into power bonds in respect of Bihar ( Rs. 19.70 crore) and Jharkhand ( Rs. 14.31 crore). Doubtful debts reduced to Rs. 74.11 crore from Rs. 76.86 crore through settlement and recovery thereof from the concerned beneficiaries.

·      The Corporation has signed Power Purchase Agreement (PPA) for  the 330 MW Kishanganga, 45 MW Nimmo Bazgo, 44 MW Chutak, 240 MW Uri-II , 390 MW Dul Hasti , 231 MW Chamera-III and 160 MW Teesta Low Dam –IV Projects with the concerned beneficiaries of Northern and Eastern Region. 

Project commissioned 

·      The 280 MW Dhauliganga Power Station in Pithorgarh District of Uttaranchal started commercial operation with effect from 01.11.2005 . Power from this Power Station is being sold at a provisional rate of 183 paise per unit as approved by CERC. The beneficiary States are Uttaranchal, Haryana, Chandigarh, Himachal Pradesh, Jammu & Kashmir, Punjab,Rajasthan, Uttar Pradesh and Delhi.

·      The Dhauliganga Power Station was dedicated to the Nation on 8.4.2006 by Shri Sushilkumar Shinde, Hon’ble Union Minister of Power.

 Capacity Addition

·        Xth Five Year Plan 2480 MW (See Annexure I)

·        XIth Five Year Plan 6297 MW (See Annexure II) 

Projects under construction 

·        Teesta Stage-V (510 MW), Sikkim

Ø      Completed heading excavation of face-III and Face-IV and benching of Face-II of Head Race Tunnel.

Ø      About 8.20 km. overt lining achieved during the year.

Ø     Assembly of Stators of Unit –I & II , Turbine Unit-I , Generator of Unit-II completed. Assembly of Generator of Unit-III is in progress. Rotors of Unit-I & II assembled and lowered.

Ø    During the year 2,60,000 cum. concreting of the Dam was completed. So far about 3 lakhs cubic meter concreting ( 80%) of the Dam has been completed.

·        Dul Hasti ( 390 MW) , Jammu & Kashmir 

Ø      Work on the 390 MW Dul Hasti Project is in the advanced stage.

·        Parbati-II ( 800 MW) , Himachal Pradesh

Ø      Excavation of Adit to Surge Shaft (294 m) completed.

Ø      Excavation of Head Race Tunnel from Face-II ( 2864 m) completed. 

Ø    Completed boring of the inclined pressure shaft ( left side). This is the first inclined pressure shaft in the world having a length of 1546 m and excavated diameter of 4.88 m  bored with double shield Tunnel Boring Machine (TBM) followed by erection of segmental pre-cast concrete lining.

Ø      Completed the excavation of Dam ( 210000 cum) and started concreting of the Dam.

Ø     Carried out 7564 m excavation of Head Race Tunnel. Record progress of 1000m excavation achieved during April 2005.

Ø      The total tunneling achieved  up to 30.3.2006 is  over 11497 m   

·        Parbati-III ( 520 MW) , Himachal Pradesh

Ø      Obtained Environment and Forest clearance from Ministry of Environment & Forests, Government of India

Ø      CCEA approval accorded by Government of India

Ø    Consent to establish the project was granted by Himachal Pradesh State Environment and Pollution Control Board.

Ø    Contract Agreement for award of  major civil works  under Lot-I -  construction of Diversion cum Spillway Tunnel including gates and hoists, Coffer Dams, Rockfill Dam, Spillway, Intake Structures and Head Race Tunnel  finalized on 15.12.2005.

Ø    Contract Agreement for award of major civil works under Lot-II - Construction of part Head Race Tunnel, Surge Shaft, Pressure Shaft, Power House and Tail Race Tunnel finalized on 15.12.2005

Ø      Major contractors for Lot-I and Lot-II have started the work.

·        Subansiri Lower ( 2000 MW) , Arunachal Pradesh 

Ø      Excavation of all the five Diversion Tunnels taken up simultaneously and the work is progressing.

Ø      Excavation of Adit to Pressure Shaft, Surge Chamber and Power House is in progress.

Ø      Completed the high level road to Dam top .

Ø      River diversion work is progressing satisfactorily and is expected to achieve River Diversion by October, 2007.

·        Teesta Low Dam-III ( 132 MW) , West Bengal

Ø      Achieved second stage diversion of  Teesta River.

Ø      Construction of Coffer Dykes (upstream and downstream) completed.

·        Teesta Low Dam-IV ( 160 MW), West Bengal

Ø     Compliance Report for diversion of forest land for the project has been forwarded by the Forest Department, Government of West Bengal to Ministry of Environment and Forests, Govt. of India.

·        Sewa-II ( 120MW) , Jammu & Kashmir

Ø      Excavation of Adit to Desilting Chamber / Gate Operation Chamber completed.

Ø      Excavation of upper horizontal Pressure Shaft from Valve House end completed one month ahead of schedule

Ø      Excavation of Dam foundation and Adit to Surge Shaft bottom completed.

Ø      Excavation of pilot hole in Surge Shaft completed.

Ø      4830 m (approx.48%) excavation of Head Race Tunnel completed.

Ø      Concreting of Dam is in progress. Approximate 15000 cum. concreting placed so far.

·        Chamera-III ( 231 MW), Himachal Pradesh

Ø      Started construction of Adit-III, Adit-IV, DT inlet and outlet, ventilation tunnel and main access Tunnel.

Ø      Completed construction of Gehra Bridge and Durgethi Bridge on Ravi River.   

Projects under construction on Turnkey Basis

·        Sippi ( 4 MW),  & Kambang (6 MW) Arunachal Pradesh

Ø      NHPC has taken up for construction the Sippi and Kambang Projects in Arunacahal Pradesh as a deposit work.

Ø      90 % the works of  Trench Weir intake, Silt Flushing Channel, Setting Basin, Forebay and Power House and 70% works of Power Channel  have been completed.

Ø      Work on the Kambang Project is also progressing well.  

Consultancy Services

• NHPC has been providing consultancy services in the area of Hydro Power development for generating additional revenue for the Corporation in the form of consultancy business. The clients to whom the consultancy services are being provided include agencies / organizations both in public and in private sector in India and abroad.

• During the Financial Year 2005-2006 consultancy assignments amounting to Rs. 65.26 crore  and total payment amounting to Rs. 15.04 crore  were received.

• NHPC is registered as a “Consultant” with World Bank, Asian Development Bank, African Development Bank and Kuwait Fund for Arab Economic Development. The Corporation is also registered as a Consulting Agency with  Central Water Commission and Consultancy Development Centre.

• The Corporation has signed  number of MOUs  with various organizations for providing Consultancy Services which includes MOU signed with M/s. Lahmeyer International GmbH, Germany and JSC “ Centre of Engineering UESR” Institute Hydroproject Moscow,  Russia for mutual collaboration for providing consultancy and management services for consultancy and turnkey project execution  in the field of hydro power plants and associated structures in India and other countries.

       Rural Roads Project

• Under the Pradhan Mantri Gram Sarak Yojana (PMGSY) NHPC has undertaken construction of Rural roads in East Champaran, West Champaran, Muzzafarpur, Vaishali, Sitamarhi and  Sheohar Districts of Bihar.  Accordingly, tripartite agreement amongst NHPC, Rural Development Department, Government of Bihar and Ministry of Rural Development, Government of India has been entered into. 

• As on today 59 roads of 445 Kms. with a cost of Rs.183 Crore have been cleared by Ministry of Rural Development, Government of India.

• Works on 43 roads with a total length of 343 Kms. with an estimated cost of Rs.136 Crore have been taken up and is expected to be completed by the end of December 2006.

• Tender proceedings to award 16 roads covering 112 Kms. are under process.

Rural Electrification Projects

• Under Rajiv Gandhi Gramin Vidyutikaran Yojana (RGGVY), NHPC has taken up Rural Electrification works in East Champaran, West Champaran, Sitamarhi, Sheohar, Darbhanga and Madhubani districts of Bihar.  Detailed project reports of Rural Electrification works of all the six districts are under finalization. 

The Corporation has also taken up rural electrification works in Purulia District of West Bengal and in state of Chattisgarh.  

Research and Development Activities

• NHPC is a participating agency in conjunction with IITs and CPRI Bangalore in the National R&D Project for development of silt resistant material for elongation of service life of underwater components for which National Metallurgical Laboratory, Jamshedpur is the lead agency.  The proposal has been approved by the Standing Committee of Government of India on R&D.

• Being the Nodal agency for exploration of geo-thermal energy, NHPC has carried out ranking studies and identified six most promising geo-thermal fields in India, which are Tatta Pani in Chattisgarh, Puga in J&K, Cambey Graben in Gujarat, Manikaran in H.P., Surajkund in Jharkhand and Chhumathangi in J&K.

• A pilot project for adoption of solar energy at Nimmo Bazgo Hydroelectric Project (Leh) of NHPC Investigation Schemes is being undertaken to promote green power and likely to be commissioned in 2006-07. 

Major Contracts Awarded

• Lot 1 of civil works  package of 240 MW Uri-II Project to M/s. Hindustan Construction Company Ltd. at a cost of Rs. 574.99 crore

• Major civil works of 231 MW Chamera Stage-III to M/s. Hindustan Construction Company Ltd at a cost of Rs. 504.87 crore.

• Lot 1 of civil works package  of 520 MW Parbati Stage -III Project to M/s. Patel – L&T Consortium at a cost of Rs. 439.08 crore and Lot-2 of civil works package to M/s. Jager – Gammon JV at a cost of Rs. 324.20 crore.

• Civil works packages of 160 MW Teesta Low Dam-IV Project to M/s. Hindustan Construction Company Ltd. at a cost of Rs. 395.90 crore.

Recently approved projects by CCEA 

During the period under review CCEA clearance for the following projects were received

1. 231 MW Chamera-III (  Himachal Pradesh)

2. 520 MW Parbati –III ( Himachal Pradesh )

3. 160 MW Teesta Low Dam  -IV (  West Bengal )

4. 240 MW Uri-II  (  Jammu & Kashmir )

New Projects

The following projects were entrusted to NHPC for execution by the Government of Uttaranchal and Government of Sikkim:

1. 240 MW Chungar Chal ( Uttarnchal)

2. 630 MW Garba Tawaghat ( Uttaranchal )

3. 55 MW Karmoli Lumti Tulli ( Uttaranchal )

4. 495 MW Teesta Stage-IV ( Sikkim )

5. 210MW Lachen ( Sikkim )

Status of other Projects

• 1000 MW Pakal Dul in J&K – DPR submitted to CEA/ CWC for TEA

• 3000 MW Dibang Multi Purpose Project in Arunachal Pradesh - DPR submitted to CEA/ CWC for TEC

• 195 MW Kotli Bhel –I A in Uttaranchal - DPR submitted to CEA/ CWC for TEC

• 320 MW Kotli Bhel – I B in Uttaranchal - DPR submitted to CEA/ CWC for TEC

• 530 MW Kotli Bhel – II in Uttaranhcal - DPR submitted to CEA/ CWC for TEC

• 420 MW Lakhwaar Vyasi in Uttaranchal - DPR submitted to CEA/ CWC for TEC

• 20 MW Bav-II in Maharashtra - DPR submitted to CEA/ CWC for TEC

• 600 MW Kiru in Jammu & Kashmir - DPR submitted to CEA/ CWC for TEC

• 330 MW Kishenganga Project in J & K – TEA accorded to the revised proposal by CEA.

Enterprise Resource Planning (ERP)

The huge targets and challenges of NHPC to add more than 30,000 MW of hydropower capacity in next 15 years shall require organizational transformation and information technology is considered as an important enabling tool to achieve the same.  It is in this context, that the organization has launched a major initiative to implement Enterprise Resource Planning (ERP) software solution framework.

The ERP solutions shall enable integrating major business processes of NHPC to achieve quality of work, improved profitability and performance.  ERP systems shall also provide opportunities to the organizations to adopt global best practices.  Ernst and Young, a world renowned Consulting Organization has been engaged as Consultant for the Project.  The ERP initiative in the organization has been given the name ‘Project Kiran’ which was formally launched by Shri S.K. Garg, CMD, NHPC on 13^th January 2006. 

Social responsibility

• NHPC has implemented number of welfare measures for the benefit of the people living in and around its Power Stations and Projects. The Corporation undertook large-scale relief operations in the earthquake hit Jammu & Kashmir State. The Corporation donated Diesel Generating sets, provided medicines, drinking water, food items, woolen blankets, sweaters, shawl, tents, construction material etc. to the victims of earthquake.

• NHPC employees contributed one day salary amounting to Rs. 68,93,827/- to the Hon’ble Prime Ministers National Relief Fund for providing relief to the victims of the earthquake.

 Joint Venture Projects

• Narmada Hydroelectric Development Corporation (NHDC)

Narmada Hydroelectric Development Corporation is a Joint Venture of NHPC and Madhya Pradesh Government. The two Projects of NHDC are the 1000 MW Indira Sagar and 520 MW Omkareshwar .

Ø      Indira Sagar Project (1000 MW)

Indira Sagar Project with 8 units of 125 MW each was completed in March 2005. The design energy of this project is 1980 million units. The Project has achieved the most important milestone by commissioning the last unit (Unit No: 8) on 30^th March, 2005 two months ahead of sanctioned schedule and has provided 4070 million units of electricity so far to the power deficit State of Madhya Pradesh at relatively much cheaper rates resulting in substantial savings for the state also. The estimated cost of the project was Rs. 4355.57 crore at September 2000 Price level, but Project has been completed at lesser cost earning reputation of being rare project for achieving this feat.

Ø      Omkareshwar Project (520 MW)

The 520 MW Omkareshwar Project with 8 units of 65 MW each is designed to  generate 1166 million units annually. CCEA has accorded approval for the execution of the Project by NHDC by February 2008. The work of the Project has been awarded to a consortium of M/s Jai Prakash Voith Siemens for execution on turnkey basis and the project is scheduled to be completed within less than 4 years by October 2007. Work on the project is progressing  fast with achieving a record highest concreting of 1.3 lac cu. mtr. in the month of March,2006.