NTPC Limited (formerly known as National Thermal Power Corporation Limited) is a Central Public Sector Undertaking (CPSU) under the Ministry of Power, Government of India, engaged in the business of generation of electricity and allied activities. It is a company incorporated under the Companies Act 1956 and a “Government Company” within the meaning of the act. The headquarters of the company is situated at New Delhi. NTPC’s core business is generation and sale of electricity to state-owned power distribution companies and State Electricity Boards in India. The company also undertakes consultancy and turnkey project contracts that comprise of engineering, project management, construction management and operation and management of power plants. The company has also ventured into oil and gas exploration and coal mining activities. It is the largest power company in India with an electric power generating capacity of 42,964 MW. Although the company has approx. 18% of the total national capacity it contributes to over 27% of total power generation due to its focus on operating its power plants at higher efficiency levels (approx. 83% against the national PLF rate of 78%).
NTPC Careers: http://www.ntpccareers.net/
It was founded by Government of India in 1975, which held 75% of its equity shares on 31 March 2013 (after divestment of its stake in 2004, 2010 and 2013).
In May 2010, NTPC was conferred Maharatna status by the Union Government of India. It is listed in Forbes Global 2000 for 2014 at 424th rank in the world
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
The National Thermal Power Corporation Ltd is on an expansion spree to meet the power requirements of the country – it has targeted to add 14058 MW in 12th Plan (From FY13 to FY 17) of which it had already added 4170 MW in the year 2012-13 and 1780 MW from April to 26 March 2014. Dr. Arup Roy Choudhury, Chairman and managing director, NTPC, said that capacity addition through greenfield projects, expansion of existing stations, joint ventures and takeover of SEB stations were on the cards.
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 (2×250 mW) 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 has also been allotted coal blocks namely, Pakri Barwadih, Chatti Bariatu, kerandari, Talipalli and Dulanga. Besides these recently Ministry of Coal has vide its press release dated 3 July 2013 has alloted 4 more blocks namely, Banai, Bhalmuda, Chandrabila and Kudanli Laburi. All these mines are having estimated Geological Reserves of 5.7 Billion Tonnes. The Company has also incurred a cumulative expenditure of Rs. 18360 million on these mines till December 2013. As per the MOU dated 22 February 2014, signed between NTPC, BSPGCL (Bihar State Power Generation Company Limited) and LBCPL (Lakhisarai Bijlee Company Private Limited) NTPC will develop a 1320 MW (2 X 660 MW) Thermal Power Project at Kajra (Lakhisarai district), Bihar.
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.
As on 30 June 2013, Government of India held around 75% equity shares in NTPC. Over 740,000 individual shareholders hold approx. 1.93% of its shares. Life Insurance Corporation of India is the largest non-promoter shareholder in the company with 7.66% shareholding
As on 31 March 2013, the company had 23,865 employees (out of which 1,467 were women (6%) and 472 were employees with disabilities (2%)) and its subsidiaries and JVs had 1,619 employees, totaling to an employee strength of 25,484. The attrition rate for the FY 2012-13, including the trainee employees and employees working for subsidiaries and JVs, was 1.46%. As per the Employee Cost summary provided by the company in its Annual Report for FY 2012-13, it had approx. 23,938 employees during the year to whom it paid an annual remuneration of approx. INR 15,77,000 per employee and spent approx. INR 284,000 per year per employee on other employee related costs like subsidised transport, canteen, medical facilities, school facilities, township and welfare expenses.
Awards and recognitions
NTPC was ranked 62nd among the 250 largest Power Producers and Energy Traders in the world by Platts in 2012.
In 2009, it received ICSI National Award for Excellence in Corporate Governance.
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. In one such incident in Keredari block of Jharkhand’s Hazaribagh district, the local residents were opposing the land acquisition. NTPC had to take police help for getting the land acquired for local residents.] Two villagers agitating against land acquisition were shot dead by police in July 2013. This incident led to severe criticism of PSUs and Governments for not understanding the needs of residents and not taking their prior consent before acquiring the lands.