1998 - 1999

CHAIRMAN’S SPEECH

Ladies and Gentlemen,

It gives me immense pleasure to welcome you all, on behalf of the Board of Directors, to the 23rdAnnual General Meeting of the North Eastern Electric Power Corporation Ltd.The Directors’ Report,and the Audited Statement of Accounts for the year ended 31stMarch,1999 and also the Auditors’ Report thereon, having been in your possession for some time now, I seek your permission to take them as read. I also take this opportunity to share with you the Corporation's performance during the year under review along with some thoughts on the challenges and opportunities thrown up by the approaching millenium.

Development Of The N.E. Region With Emphasis On Power :

In spite of abundance of power potential in the region, due to inadequate infrastructural facilities and socio-physical constraints, till today only a small percentage has been harnessed. It is imperative that alongside the measures taken for ensuring availability of quality power for the consumer, a prudent decision must be also taken to make greater use of this vast power potential with a view of not just commercial aspects but also the other goal of fulfilling the power development programme interalia bringing overall economic development to the North-East. In this process, NEEPCO has remained a driving force as Central Sector Power Utility with the vision of an Organisation of the North-East, by the North-East, for the North-East.

The Past Year :

The last 23 years have chronicled NEEPCO's vibrancy and the confidence to turn challenges into opportunities even in the most difficult situations. The past year remained no exceptions to this fact.

The concept of liberalisation both in terms of economics and management has touched almost every facet of Indian business. This fact dawned on NEEPCO, no sooner had its impacts begun to spread. Today NEEPCO carries on with this concept firmly in place, with clarity of roles, dedication and no room for complacency. Consistent profitability is a reliable indicator and it is with pride that I inform you that your Corporation has established a consistency in its performance by registering a net profit of Rs.58.22 Crore, an increase of 124.79% over the previous year's performance. Out of this profit, we intend to pay a dividend of Rs.4.00 Crore as against Rs.2.00 Crore last year.

The Commissioned units of Corporation have generated 1935.93 million units of power during the year. With a machine availability of 81% in hydro stations and a Plant Load Factor of 49.70% in gas based stations, NEEPCo has performed the most dependable power utility in meeting the power needs of N.E.States. This exemplifies its concerted and vigorous efforts towards meeting all commitments. The work in respect of project under execution have been and are progressing in a steady manner so as to deliver results within due time.

Despite a rapid growth rate in the scale of its business, NEEPCO has been able to restrict the size of its workforce to about 3200 people by introducing appropriate measures of rationalisation of facilities, operations thereby increasing the overall efficiency.

The Future:

Organisational evolution closely mirrors the economic environment and changing needs. It is important that we transcend our limitations in the anticipated emerging pattern and prepare our selves well in advance to take on the new opportunities, opportunities that lie beyond the limitations of traditational concepts. These are unfolding even as I speak, in all spheres of life, in business and more specially, in the power generation sector.

A growing share of our national economy is now entering the domain of the international economy. Accordingly, your Corporation is boldly evaluating nd modifying its structure to support its economic growth and ambitions. Implementation of other system reforms for expediting the decision making process based on national standerds have also been taken up. the basic purpose for these changes remains to redefine its mission in tune with the times and revise its objectives in order to reiterate its intention carrying out the faith and duties bestwoed by the people, the shareholders and the Government.

We believe that the key to our growth as a regional company operating in an increasingly competitive power industry is the development of lareg hydro power projects. With this in mind, yur Corporation has taken up for execution of 1500 MW Tipaimukh Multipurpose Project in Manipur, the 600 MW Kameng Hydro Power Project in Arunachal Pradesh, the 210 MW Tuivai Hydro Power Project in Mizoram, the 150 MW Lower Kopili H.E. Project, the 100 MW Ranganadi H.E. Project Stage - II and a further 25MW Kopili H.E. Project Stage - II. Execution of these projects will be during the 9th an 10thPlan periods. With the completion of these projects, your Corporation's generating capacity will approach the 3500 MW mark. Your Corporation has also embarked on an integrated mission for preparing a total sub-transmission and distribution plan for the region in collaboraboration with the State agencies keeping in view the load growth during the next 25 years. Thsi will enable the states to deicide upon the modalities of augmenting their own network thereby helping NEEPCO to plan and generate energy as per its optimum level with additional demand arising out of export possibilities in the future.

Having consistently emphasised these key factors in the past, your Corporation intends to continue the sustained self-improvement efforts in its tradition of being a Companycharacterised by strong endeavours towards appropriate corporate governance and leadership with a drive for excellence. Your Corporation is also very aware of the fact that the 21st Century will see an ever-increasing importance being attached to environment and other related issue arising out of a more wide spread socio-economic development.

We have much reason to be proud today considering the achivements of the Corporation throughout the years. It has adhered to the ideals of optimism and confidence while quitely achieving the tremendous volume of tasks entrusted upon it. Simultaneously, it has made an effort to show results commensurate with the demands made for it, keeping in mind always that it must do its share for promoting the country to greater prosperity. I am confident that these futuristic institutional strategies will provide your Corporation with the much-desired leading edge in the next millennium.

Acknowledgements:

The Board of Directors of your Corporation express its gratitude for the continued co-operation, guidance and support received from the various Ministrie and Departments of the Govt. of India, The North Eastern Council, State Govt. of the N.E. Region, Financial Institutionsand Investors. Also your Board of Directos is pleased to place on record its appreciation for the sincere and devoted service rendered by each individual employee of the Corporation whose Contributiuon remains invaluable and with whose determined efforts the Corporation has been able to maintain its winning edge.

Thank you,

Dated, New Delhi,

The 10th Sept’1999

(P.K.KOTOKY)

Chairman & Managing Director

DIRECTORS’ REPORT

To the Members,

Your Directors have pleasure in presenting the 23rd Annual Report of the North Eastern Electric Power Corporation Limited, together with the statements of Accounts and Auditors’ Report for the year ended 31st March, 1999.

1. FINANCIAL PERFORMANCE

NEEPCO earned a net profit after prior-period adjustment, of Rs.58.22 Crore during 1998-99 against Rs.25.90 Crore in the previous year, recording an increase of 124.79%.

The sales including other income have increased to Rs.321.89 Crore during 1998-99 as against Rs.202.56 Crore in the previous year, recording a growth of 58.91%.

Keeping in view the requirement of Security and Exchange Board of India's (SEBI's) guidelines for "Disclosure and Investor Protection" and also to make the NEEPCo BONDS more attractive to the investors, major share of profit for the 1998-99 had to be transfered to the Bond Redemption Reserve. Out of the balance surplus available, the Board has approved a dividend of Rs. 4.00 Crore to the Government of India for the year 1998-99.

The profit of Rs.58.22 Crore alongwith Rs.4.61 Crore of profit brought forwarded from the last year has been appropriated in the accounts as under :-

S.No   Rs. in Crores
I Transfer to Bond Redemption Reserve 50.75
II Transfer to General Reserve 9.47
III Proposal Dividend 4.00
IV Dividend Tax 0.40
V Balance Carried Over to Balance Sheet 0.01

With the aforesaid transfers, the accumulated balance in "Reserve and Surplus" of the Company amounts to Rs. 224.32 Crore which includes Rs. 0.13 crore of Capital Reserve.

II. PERFORMANCE HIGHLIGHTS:

a)Capacity Addition:

During the year 1998-99 all the 4 (four) Units i.e. 84MW (21X4)of Agartala Gas Turbine Project were put into commercial operation as detailed below :-

Unit Capacity (MW) Date Of Commercial Operation
Unit I, II & III (21 X 3)MW 63 1-4-98
Unit IV (21 MW) 21 1-8-98

b)Generation:

The actual generation during the year 1998-99 was 1935.93 MUs including 15.03 MUs generated during Trial run as against 1518.54 MUs in the previous year (inclusive of 17.18 MUs generated during Trial Min)

S.No Project Target (MUs) Actual Generation (MUs)
I Kopili Hydro Electric Project &Kopili Hydro Electric - 1st Stage Extension Project 1214 995.17
II Assam Gas Based Power Project. 950 743.39
III Agartala Gas Turbine Project. 250 197.37

The net earnings in terms of sale of power from Kopili H.E. Project including 1st stage extension was Rs.518.23 Crore, from Assam Gas Based Power Project was Rs.441.16 Crore and that of Agartala Gas Turbine Project was Rs.39.76 Crore upto 31stMarch, 1999.

As reflected in the report of earlier years, realisation of outstanding dues against Sale of Power to A.S.E.B., did not show any sign of improvement. Although an maount of Rs. 70.61 Crore which was received during the year 1998-99 including collection of Rs.51.86 Crore through Central Plan Appropriation, the outstanding dues excluding interest stood at Rs.248.53 Crore as on 31-3-1999 as against Rs.147.49 Crore in the previous year. The total outstanding dues upto 31-3-99 against Sale of Power to the benificiary States of N.E. Region stood at Rs.443.06 Crore as against Rs.234.94 Crore in the previous year.

III. FINANCIAL REVIEW:

a) Capital Structure:

The Authorised Share Capital of the Corporation has been increased to Rs.2500.00 Crore from Rs. 1500.00 Crore as per approval conveyed by Govt. of India, Ministry of Power vide letter No.6/4/97 - Hydel-II dt. 22ndMay, 1998. The paid up share capital including amount received against share capital pending allotment, increased from Rs. 1612.13 crore at the end of the previous year to Rs. 1777.15 Crore as at 31 st March, 1999.

b) Borrowings:

The borrowings of the Corporation as on 31 st March, 1999 was Rs. 1603.04 Crore as against Rs. 1402.11 Crore in the previous year.

c) Debt Servicing:

Debt Servicing is regular for L.I.C. loan, Deutsche Bank loan and for bonds. An amount of Rs.52.05 Crore was paid to the Govt. of India as interest on loan during the year as against Rs. 73.39 Crore paid as interest on loan and repayment of loan in the previous years.

IV. PROJECTS UNDER OPERATION

KOPILI HYDRO ELECTRIC PROJECT(150 MW)

Both the Power Stations under this Project viz. Kopili Power Station and Khandong Power Station have been operational during the year 1998-99. Unit-I of Kopili Power House which was under shut down w.e.f. 19-07-98 due to TGB problem. Actual generation from the project during 1998-99 was 556.4514 MUs against the target of 756.50 MUs.Cumulative generation since inceptiuon upto Mar'99 is 8324.4804 MUs.

KOPILI HYDRO ELECTRIC PROJECT- 1ST STAGE EXTENSION (100 MW), ASSAM:

All the major works of the project had been completed and the units were synchronised on 05-03-97 and 17-06-97 respectively and were under operation during the year 1998-99. Actual generation from the project was 438.7240 MUs against the target of 458.50 MUs. Generation was less than the target due to low system demand in the grid. Cumulative generation since inceptiuon upto Mar'99 is 806.109 MUs.

No budgetory support are proposed for the project during the year 1998-99 & 1999-2000, as the whole fund has been received against the project till 31-03-98.

ASSAM GAS BASED COMBINED CYCLE POWER PROJECT(291 MW), ASSAM :

All the 6 Nos. of Gas Turbine Generating sets, were commissioned by July’96. Although all the 3 nos. of Steam Turbine Generating Sets were also synchronised by July’98,these units are still under stabilisation stage.Appropriate actions with BHEL have already been taken in hand for bringing these units under commercial operation as early as possible. Actual generation from the project was 743.3897 MUs against the target of 950.0000 MUs. Generation was less tahn the target due to low system demand in the grid. Cumulative generation since inceptiuon upto Mar'99 is 2311.7913 MUs.

Since the project will be completed in all respect by the year 1999 - 2000, the entire balance amount of RS.89.90 Crore (with respect to the latest cost estimate of Rs. 1532.32 Crore which has been submitted) has been proposed for the year 1999 - 2000. During the year 1998 - 99, an amount Rs. 100 Crore was received and Rs. 1442.42 Crore has been received till the financial year ending March’99.

AGARTALA GAS TURBINE PROJECT(84 MW), AGARTALA :

All the 4 units of Gas Turbine Generating sets were commissioned by June'98 and were under operation during the year 1998-99. Actual generation from the project was 197.365 MUs against a target of 250.0000 MUs during the year 1998-99. Generation was less than the target due to modification of coupling flange. Cumulative generation since inception upto Mar’99 is 215.846 MUs.

V. PRESENT POSITION OF ON-GOING PROJECTS

(A) DOYANG HYDRO ELECTRIC PROJECT (3 X 25 MW),NAGALAND.

All the major works, both civil and electrical/mechanical are going on in full swing. Construction of Diversion Tunnel has been completed and river water was diverted through this tunnel on 23-12-96. Erection of diversion tunnel gate completed.Work of Water Conductor System is progressing satisfactorily.As on 31-03-99, 100% boring of tunnel, fabrication and erection of steel liners have been completed. Erection of Trash Rack and stoplog gate is completed. Stoplog gate will be commissioned shortly.Work of Approach Channel and Spillway are also progressing satisfactorily.37% concreting of Approach Channel and Spillway is completed as on 31-03-99. 80% fabrication work of Spillway gate is completed and erection work is yet to commence. Construction of Coffer Dam upto EL 306 M has been completed and average achievement of Rock-filling in main Dam, accelerated to nearly 1,00,000 Cum per month. The Coffer Dam which will be a part of the Main Dam. Construction of Power House as well as erection of electrical/mechanical equipments are in advanced stage of completion.The Machine of U # 1 has already been boxed up. The pre-commissioning testing is also over and ready for commissioning.For U # II, erection upto spiral casing completed and Barel concreting upto EL. 254.64 M. completed. For U # III, erection upto spiral casing completed. Barel concreting also completed & remaining works are in progress. erection of GT Unit - I completed and remaining units are in progress. Construction of 33 kV Switchyard was completed in May'98 and 132 kV Switchyard completed in July'98 for U # 1. Switchyard for remaining units will be completed as per schedule.

During the year 1998-99, an amount of Rs.54.00 Crore was received against the project as Budgetory support. For the year 1999-2000, an amount of Rs.120.00 Crore was prposed against which Rs. 60.00 Crore has been allocated. While the anticipated cost of the project is Rs. 671.22 Crore at June’98 price level.receipt of fund upto March’99 stands at Rs.497.85 Crore.

The revised commissioning schedule of the project as under :

  • Unit # I – 03/2000
  • Unit # II – 03/2000
  • Unit # III – 03/2000

(B) RANGANADI HYDRO ELECTRIC PROJECT (3 X 135 MW) ARUNACHAL PRADESH.

The construction of Doimukh-Hoz road required for transportation of heavy consignments has been entrusted to BRTF. Works for retaining wall and improvements of culverts started.All major works of the project have since been awarded and are going on in full swing. The Diversion Tunnel was completed and river water diverted through this Tunnel. Boring of 10.05 Km long Main Tunnel has been completed in June’99. Concreting of Main Tunnel completed upto 59 %. Fabrication and Erection of Steel liner has been completed upto 66% and 0.02% respectively. In regards to the Diversion Dam, the U/S & D/S Coffer Dam were completed on 30-12-96 respectively and water is diverted through the Diversion Tunnel. 83 % of excavation and 32 % of concreting was completed till March’99. Efforts are being taken to gear up the progress of concreting works. Construction of Power House Building has never been satisfactory due to the short coming of contractors.The contractors are being persuaded constantly to overcome the short coming.

During the year 1998-99, an amount of Rs.121.00 Crore was received which included Budgetory support of Rs.88.00 Crore and LIC Loan of Rs. 33.00 Crore. For the year 1999-2000, Rs.200.00 Crore was proposed for the project against which Rs. 153.00 Crore is allocated, out of which Rs.93.00 Crore is Budgetory Support and Rs. 60.00 Cror is as Loan. The revised cost of the project at Sept’98 price level stands at Rs.1265.02 Crore. As on March’99, a total of Rs.820.65 Crore has been received for the project. Considering the constraints faced in the execution of Main Tunnel, Diversion Dam, P. House and transportation of heavy consignments to the project, the likely commissioning schedule of the project has been revised as follows :

  • U # I – 03/2001
  • U # II – 06/2001
  • U # III – 09/2001

(C) TUIRIAL H.E. PROJECT (60 MW),MIZORAM :

This project has been taken up as Central Sector Scheme with 85% of the project cost being financed under loan assistance from OECF, Japan and balance 15% from Govt. of India’s assistance. The CEA has cleared the project on 10th August ’98 at an estimated cost of Rs. 359.66 Crore including IDC and Financing charges which is Rs. 24.43 Crore under loan assistance from OECF, the PIB clearance for the project was accorded on 27-01-98. CCEA clearance for the project has also been awarded on 07-07-98 with completion schedule of 8 (eight) years from the date of CCEA clearance. The work of review consultant for the project has been awarded on 10-12-98 to M/s Electro watt Engineering Limited, Switzerland, Pre-construction Geological investigation have been completed fr Dam, Tunnel and Power House. Final reports from GSI is expected very shortly. One more geological investigation for Seismic evaluation of Dam foundation is being taken up. Approach road widening and new formation cutting in parts are in progress. Temporary buildings (1st Phase) have been started. Water supply scheme has been initiated. Consultants have visited the site to take stock of situation and ask for additional data/informations for finalising design parameter.

The allocation for the year 1999-2000 is Rs. 59.00 Crore. As on Mar’99 an amount of Rs.42.08 Crore has been received.

(D) KOPILI H.E. PROJECT STAGE-II (25 MW),ASSAM :

The project has been taken up as a Central Sector Scheme.Administrative approval for pre-construction works and development of infrastructure facilities of the project as an advance action pending investment decision on the scheme was received on 03-11-98 with allocation of 1stinstallment of Rs. 12.00 Crore. CCEA clearance for this project has also been obtained on 27-07-99 with completion schedule of 4 (four) years from the date of CCEA clearance. Based on pre-construction, investigation the design of various of various structures have been finalised in consultation with Technical expert. It was decided to execute the entire work of the projectwith 2 (two) nos. of Civil Packages and 1(one) of Electrical/Mechanical Package.LOI of package-I has been issued on 13-07-99 and Tender for Package - II has been floated.

The cost estimate of the project is Rs.76.09 Crore at Sept’98 price level.An amount of Rs.25.00 Crore has been received as on Mar’99 which includes as Rs.12.00 Crore as given earlier. For the year 1999-2000, an amount of Rs.25.00 Crore has been allocated.Commissioning schedule of the project is July’2003

VI. NEW SCHEMES :

The following new projects have been given to NEEPCO for development/execution,for which initial work such as MOEF clearance, HM data collection, CEA clearance and signing of MOUs with respective State Govt. are being taken up.

    • Kameng H.E.Project(600 MW)-Arunachal Pradesh.
    • Tuivai H.E.Project (210 MW) – Mizoram
    • Tipaimukh H.E. Project (1500 MW) – Manipur.
    • Lower Kopili H.E. Project (150 MW) – Assam.

VII. INVESTIGATION SCHEMES

With a view to have new projects for execution in future, it is proposed to continue/take-up the following Survey and Investigations. In 1999-2000, a provision of Rs.2.00 Crore has been kept to continue with the work of following investigation works.

        • Papumpam H.E.Project : 100 MW
        • Dikrong H.E.Project, : 100 MW
        • Kolodyne H.E. Project, : 90 MW
        • Ranganadi H.E. Project Stage-II : 100 MW

VIII. ORGANISATION :

(A) The total number of employees as on 31.03.99 was 3124 against 3060 as on 31.03.98.

6 Nos of SC, 37 Nos. of ST and 12 Nos. of OBC posts have been filled up by recruitment during the year.

(B) TRAINING AND DEVELOPMENT

As in the Previous years, Human Resource Development continued to receive special attentions of the Management during the year under report i.e. 1998-99.

Keeping the philosophy to strive to inculcate professionalism in Management, skill development and to enhance the effectiveness of the organisation in mind, NEEPCO has started its own Human Resource Development Institute with effect from 29-05-98.

The major thrust area on HRD front during the year 1998-99 was that of educating the employees on Computer Application to keep pace with the current trend. Atotal of 888 employees of different levels including Board level Officers were imparted training on Computer Applications paving the way for quick and smooth induction of computer technology in day to day works of the Corporation.

In order to fill the gap between the skills available and the required skills and to strengthen the Organisation, skill development training programmes for Boiler Attendants and Electricians of 40 to 180 days duration were organised during the year 1998-99 covering 19 participants.

In addition, 3 employees were deputed to undergo the Fire Fighting Training Course of 175 days duration at the State Elementary Fire Fighting Training School, North Guwahati, Assam.

In order to help the employees to perform their role effectively, 5 nos. short duration in-house training programmes were organised during the year 1998-99. In addition, 4 Nos. Seminars and Workshops on work related issues were also organised during the year participated by large number of employees.

The Corporation also organised 4 short term in-house training programmes for Executives in order to update their professional knowledge with the help of renowned faculties.

The Corporation while recognising the benefit and advantages of in-house training programmes also places equal emphasis on external training so that the organisation can be strengthened by learning from external sources. In line with this, a total of 64 employees were deputed to attend Conferences and Seminars, Workshops and Training programme conducted by different Institutions of repute with in the country and abroad.

On the whole, a strategic approach was adopted in developing the Human Resources in line with the organisational requirement. During the year 1998-99, the Corporation organised training programmes covering 1712 employees i.e. 55% or the total work force involving 9381 training man-days.

(C) INDUSTRIAL RELATIONS

Industrial Relations in the Corporation remained healthy and cordial throughout the year and no manday was lost on account of industrial relations problem. Various issues concerning the interest of the employees across the table from time to time and resolved amicably.

Interim relief has been granted to all the employees who are governed by the Industrial Dearness Allowance (IDA) Scales of pay pattern pending pay revision with effect from 01-01-97.

Wage negotiation for revision of pay scale and other allowances under IDA pattern scales of pay for Workmen will commence based on DPE’s O. M. No. 2(ii)/96-DPE (WC), dated 14-01-99. Actions are being taken for revision of pay scales (IDA) and other allowances in respect of Executives and non-unionised Supervisors in terms of DPE’s O. M. No. 2(49)/98-DPE (WC) dated 25-06-99.

(D) WELFARE ACTIVITIES

Following major welfare activities have been undertaken by the Corporation during this year 1998-99.

        • (i) NEEPCO Woman Welfare Association (NWWA) members were nominated for the National meet of Women in public sector (WIPS) held at Calcutta on 12th and 13 th Feb’99. In addition, NWWA members were nominated for strategy management programme and quality and performance improvement programme conducted at Shillong. The NWWA awarded merits scholarship to meritorious children of NEEPCO employees. Esatern chapter of WIPS organised a seminar at Shillong on 29th Oct.’98 on "Women in Public Sector".
        • (ii) NEEPCO Re-creation club of AGTP added facilities for Yoga dance and other cultural training through Adarsh Kala Kendra.
        • (iii) SCHOOLS:

(a) Vivekananda Kendra Shiksha Prasar Vivag has taken over from Kendriya Vidyalaya Sangathan (KVS), the School at Kopili Hydro Electric Project (KHEP) and has started school upto Class-XII (both Science and Arts Section)from April’99.

(b) Higher Secondery School at RHEP and Primary School at AGBPP are being run through Vivekananda Kendra Shiksha Prasar Vivag successfully. A KG School is being run at AGTP through Maharshi Vidyamandir.

(D) SPORTS ACTIVITIES :

        • i) NEEPCO Cricket Team emerged runners up in the 6thInter Power Sector Cricket Tournament at Dadri (UP) hosted by NTPC from 5 th - 9th December, 1998.
        • ii)NEEPCO Badminton team participated in the first inter Power Sector PSU Badminton Tournament during Feb. 1996 at New Delhi organized by Power Sport Control Board.

(E) USE OF RAJBHASHA (HINDI)

The Corporation has been implementing the Official Language Policy of the Govt. of India at its Corporate Office as well as Projects and subordinate offices. Efforts were made to issue papers referred to in Section 3 (3) of Official Language Act in bilingual. Annual Report and Project Reports were prepared in Hindi and English. Memorandum of Association and Articles of Association of NEEPCO and other Rules have been translated into Hindi. Employees were sent for Hindi training under the Hindi Teaching Scheme, Shillong. Employees of the Project sites were nominated to undergo Hindi training through correspondence courses. Cash awards were granted to emplyees for passing Hindi Examination.

During the year Project as well as other offices were inspected to assess the progress made in the use of Hindi in the offices. Necessary guidance were provided to these offices for the proper implementation of the Official Language Policy of the Govt. of India.Programmes like displaying everyday a "today’s words" of Hindi with english translation are being implemented successfully in order to increase the working vocabulary of Hindi words of the employees.

"Rajbhasha Pakhwara" was observed and "Hindi Diwas" was celebrated at the Corporate Office during the year. Different competitions were organised and prizes were awarded to the winning participants to encourage the use of Hindi in the official works. "Hindi Diwas" was celebrated in projects and sub-ordinate offices also. "Rajbhasha (Hindi) Karyashala" were also organised to facilitate the employees for doing their official works in Hindi.

NEEPCO has sponsored 10th. Akhil Bharitya Rajbhasha Sammelan organised by the Rastriya Hindi Academy, Rupambara at Shilling w.e.f. 02.10.97 to 04.10.97. NEEPCO was awareded "RAJBHASHA Shield" for its achievement in the implementation of Rajbhasha, Hindi in the Corporation. NEEPCO was also awarded the Second prize in the ‘Rajbhasha Pradarshani’ organised during the Sammelan. NEEPCO was also awarded third prize (Rajbhasha cup) organised by the Ministry of Power, Govt. of India during the year for achievement in the implementation of Rajbhasha, Hindi in the Corporation.

IX. AUDITORS’ REPORT

M/s. S. Ganguli and Associates, Chartered Accountants, Calcutta was appointed as Statutory Auditors for the year 1998-99. The Reports of the Statutory Auditors and comments of the Comptroller and Auditor General of India thereon are enclosed as Annexure-I & II.

The review of the Comptroller & Auditor General of India on the Accounts of North Eastern Electric Power Corporation Ltd. under Section 619 (4) of the Companies Act is enclosed as Annexure-III.

X. PARTICULARS OF EMPLOYEES

Information as required under Section 217 (2A) of the Companies Act,1956, read with Companies (Particulars of employees) rules,1975 and Companies (Particulars of employees) Amendment rules,1994 vide notification G.S.R.752(B)dtd. 17-10-1994 for the year ended 31-03-99 is nill.

XI. VIGILANCE ACTIVITIES:

As per directive and the guidelines of the Central Vigilance Commission, action plan on anti-corruption and vigilance measures have been taken.Complaints received are regularly monitored and where primafacie evidence were found, investigation have been carried out. Also, emphasis is given on the aspect of preventive vigilance.

XII. Directors:

S/Shri Pu Liansanga, Ogam Apum,P.S. Agarwal, S.K. Shashi Prakash, S. K. Srivastava and P. Kharkongor have since ceased to be the Directors of the Corporation. The Board of Directors placed on record the deep appreciation for the valuable service rendered.

S/Shri Lalrinliana, G.S. Patanik, J.K. Yerra, Sanjeev Ranjan and C.D. Kunjing were appointed as part-time Directors of this Corporation.

XIII. CONSERVATION: OF ENERGY

Particulars as required under Companies(Disclosures of Particulars in the Report of Board of Directors)Rules, 1988 and forming part of the Directors’ Report regarding Conservation of Energy/Technology absorption and foreign exchange earnings and outgo during the financial year 1998-99 is enclosed as Annexure-VI

XIV. ACKNOWLEDGEMENT

The Directors are also grateful to the various Ministries of the Govt.of India, particularly the Ministry of Power, Ministry of Home Affairs, Ministry of Environment & forest ,Department of Public Enterprises, Department of Economic Affairs, North Eastern Council, Central Electricity Authority, Central Water Commission, Central Soil & Materials Research Station, Geological Survey of India, Survey of India and theNorth Eastern Regional Electricity Board for their continued co-operation and assistance.

The Directors expressed their sincere gratitude to the Govt. of Assam,Meghalaya,Manipur Mizoram Nagaland, Tripura, Arunachal Pradesh for the co-operation and help extended by them.

Thanks are also due to the Bankers, the Statutory Auditors, the Commercial Audit Wing of the Comptroller and Auditor General of India and the Registrar of Companies.

Last but not the least, the Directors also wish to place on record their high appreciation for the dedicated efforts made by all sections of employees of the Corporation to achieve the goals set for the Corporation.

For and on behalf of the Board of Directors

( P.K. KOTOKY )

Chairman & Managing Director

Dated, Shillong

The 10th Sept., 1999.