1999 - 2000

CHAIRMAN’S SPEECH

Gentlemen,

On behalf of the Board of Directors and employees of the Corporation, it gives me great pleasure to welcome you all to the 24th Annual General Meeting of your Corporation.

The Annual Accounts along with the report of the Auditors and the Report of the Board of Directors for the year 1999-2000 is already with you and with your permission. I take them as read. The Report of Directors, which I have the pleasure of presenting before you on behalf of the Board, indicates the achievements of the Corporation on the various work fronts during the year and hence apart from a very brief summary, I do not intend to repeat the same.

PERFORMANCE HIGHLIGHTS

  1999-2000 ( Rs / Cr.) Increase/ Decrease (-) ( Rs/ Cr)in comparison to 98-99 Increase / Decrease (-) % in comparison to 98-99
Sales 357.39 98.21 37.89
Total Income 440.60 118.71 36.87
Cost of sales 180.73 70.32 63.69
Gross margin 259.87 48.39 22.88
Depreciation 102.84 28.00 37.41
Gross profit 157.03 20.39 14.92
Interest 129.10 50.67 64.61
Net profit 27.93 (-) 30.29 (-) 52.03
Value Addition 263.78 66.50 33.71
Borrowing 2213.26 610.22 38.07
Gross Block 2223.08 681.16 44.18
Current Assets 1031.90 443.99 75.52
Current liabilities 366.07 126.72 52.94

In two and half decades, as we retrospect on our achievements, the dreams that all of us have sustained and the milestones that we have crossed - we can be justifiably proud of our efforts. It is a note- worthy fact that within less than 6 (six) years time, we have added 550 MW to our generating capacity totaling to 700 MW up-to-date. However, it is not the time for us to rest on our laurels but to forge ahead with renewed vigour, enthusiasm and innovative ideas. We are at a particularly challenging crossroads of our existence as a Corporation when the policies of liberalization and opportunities and threats of globalisation combine to create an environment of immense possibilities for those who are prepared to exploit them with both courage and caution.

During the year the Corporation generated 2225.44 MU of energy ( last year 1935.98 MU ) with an average machine availability of 76% ( last year 69 % ) and a plant Load factor of 46% ( last year 35%). These achievements and the efforts of your Corporation translated into financial terms would amply display the continued growth of sales revenue, assets creation and value addition. The Corporation has registered a total income of Rs. 440.60 crores on which the gross profit earned was Rs. 157.03 crores and the net profit stood at Rs.27.93 crores. While there has been increase on all fronts, the net profit has shown a decline over the previous year primarily due to the impact of depreciation in respect of the Agartala Gas Turbine Project put into commercial operation during 1998-99 and the impact of interest in respect of the steam turbine units of the Assam Gas Based Power Project put into commercial operation during the year.

There is perhaps no other better indicator of the capability and credibility of your Corporation than the decision of the Government to entrust to it the execution of such new projects as the 1500 MU Tipaimukh HE Project , the 600 MU Kameng HE Project, the 210 MU Tuivai HE Project and the 500 MU Agartala Gas Turbine Project. These Projects are large and complex particularly in the hydel sector and they require competence, expertise and experience which your Corporation possesses in its employees across functions and cadres. Such a wealth of knowledge and capacity cannot be acquire easily but through dedicated and concerted efforts and commitment.

One of the greatest milestones to be achieved by your Corporation during the year is the commissioning of the 75 MU Doyong Hydro Electric Project in Nagaland. There can be no doubt that this success will be engraved in the annals of your Corporation as a hallmark of pride, inspiration and encouragement. It was generally believed that the completion of the Doyong Project would be an impossibility under the given circumstances. Your Corporation through the untiring efforts of its personnel in the most adverse of situations made this impossibility into a glowing reality. Their contribution will always be a beacon of hope for development in the North East and a worthy example for the State of Nagaland, the North East and the country at large.

Recognising that the economic survival and sustained growth of your Corporation lies in its ability to expand its horizons beyond the regional limitations of the North East, a beginning has been made in selling surplus power to the state of West Bengal from May 2000.Efforts are also on to further explore the possibilities of selling power to other regions of the country after meeting the requirements of the North Eastern states as it is a fact that the power that will be produced both from the existing and future projects far exceeds the requirements of this region. The nation needs the power of the North East and your Corporation can make it available if it is given the freedom and th opportunity to do so.

With the ambitious plans of adding around 14000 MU by the end of the XII th Plan period and the challenges of survival in a fiercely competitive world, your Corporation is also restructuring its systems and equipping its human resources with the needed skills and tools to live up to the requirements of the coming years. The vision alone would not suffice without the resources adopted to the changing environment. The management of your Corporation is particularly committed to human resources development which it believes ia an on going and dynamic process and it spares no effort to ensure that this most vital of resources is nurtured and nourished with relevant training and required updation. With this in mind, a total overhauling and restructuring of the entire corporate system is being gradually taken up with only one single direction of thought COMMERCIAL PRUDENCE AND PROFITABILITY.

Before I conclude, I would like to place on record, on your behalf and on my own, our gratitude to the various Ministers/ Departments of the Government of India, the NEC and the State Governments of this region, the investors and to the committed and motivated employees of the Corporation without whom the achievements of your Corporation would not have been possible . I am sure that we can always rely on their unstinted support and dedication in all the years to come.

Thanking you,

DIRECTORS’ REPORT

To the Members,

Your Directors have pleasure in presenting the 24th 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, 2000.

1. FINANCIAL PERFORMANCE

NEEPCO earned a net profit after prior-period adjustment, of Rs.27.93 Crore during 1999-2000 against Rs.58.22 Crore in the previous year, recording an decrease of 52%.

The sales including other income have increased to Rs.440.60 Crore during 1999-2000 as against Rs.321.89 Crore in the previous year, recording a growth of 36.88%.

The increase in depreciation arising from capitalisation of assets of the Agartala Gas Turbine Project which was put into commercial operation during 1998-99.

Interest on Govt. of India Loans for the Assam Gas Based Power Project charged to the Profit & Loss Account as the three Steam Turbine units were put into commercial operation during the year.

In view of the decreased profit, much stresses and strains on the liquidity of fund arising out of huge outstanding dues remaining unpaid and to fulfil the requirement to build up Free Reserves as much as possible to show a better networth for attracting sizeable loans from the market for Corporation's CAPEX needs, your Board has recommended a token dividend of Rs.1.00 crore this year.

The profit of Rs.27.93 Crore alongwith Rs.0.01 Crore of profit brought forward from the last year has been appropriated in the accounts as under :-

S.No   Rs. in Crores
I Transfer to Bond Redemption Reserve 10.40
II Transfer to General Reserve 16.00
III Proposal Dividend 1.00
IV Dividend Tax 0.20
V Balance Carried Over to Balance Sheet 0.34

With the aforesaid transfers, the accumulated balance in "Reserve and Surplus" of the Company amounts to Rs. 246.87 Crore which includes Rs. 0.13 crore of Capital Reserve.

II. PERFORMANCE HIGHLIGHTS:

a)Capacity Addition:

During the year 1999-2000 all the 3 (three) Steam Turbine Units i.e. 90MW (30X3)of Assam Gas Based Power Project were put into commercial operation from 01.04.99

b)Generation:

The actual generation during the year 1999-2000 was 2225.44 MUs as against 1935.93 MUs in the previous year.

Project-wise actual generation vis-a-vis the Target were as follows :-

S.No Project Target (MUs) Actual Generation (MUs) Cumulative Generation upto 31.03.2000(MU)
I Kopili Hydro Electric Project including 1st Stage Extension Project 1214 752.79 9884.63
II Assam Gas Based Power Project. 1120 1106.75 3418.56
III Agartala Gas Turbine Project. 350 365.90 581.74

The cumulative billing in terms of sale of power from Kopili H.E. Project including 1st Stage Extension was Rs.562.94 Crore, from Assam Gas Based Power Project was Rs.684.41 Crore and that of Agartala Gas Turbine Project was Rs.107.79 Crore upto 31.03.2000.

Since May this year a modest begining of supply of power to the W.B.S.E.B has been made after obtaining necessary clearances from the North East beneficiary states. At present 50 MW of power during peak load and 20 MW during off peak load is being sold to the W.B.S.E.B., after meeting the requirements of the North Eastern States.

As in the earlier years, realisation of outstanding dues against Sale of power did not show any sign of improvement during this year too. The total outstanding dues upto 31.03.2000 against Sale of power to beneficiary states of the N.E.Region stood at Rs.798.69 crore with interest as against Rs. 443.06 crore upto the previous year.

III. FINANCIAL REVIEW:

a) Capital Structure:

The Authorised Share Capital of the Corporation has been increased to Rs.2500.00. The paid up share capital including amount received against share capital pending allotment, increased from Rs. 1777.15 crore at the end of the previous year to Rs. 1869.84 Crore as at 31 st March, 2000.

b) Borrowings:

The borrowings of the Corporation as on 31 st March, 2000 was Rs. 2213.26 Crore as against Rs. 1603.04 Crore in the previous year. During the financial year 1999-2000, the Corporation had borrowed in excess of the borrowing powers as provided under Section 293 (i) (d) of the Companies' Act. 1956 after obtaining the necessary approval of the Board and the Shareholders. This includes fund released as loan by the Govt. of India pending approval of the revised cost estimates for the Doyang H.E. Project and Ranganadi H.E. Project. These funds were used to meet a part of the Capital Expenditure for projects entering their final stages of completion. The pattern of financing for these projects will be in conformity with a debt equity ration of 1:1 after due rescheduling of debt and equity is done.

c) Debt Servicing:

Debt Servicing is regular for L.I.C. loan, Deutsche Bank loan and for bonds. An amount of Rs.60.29 Crore was paid to the Govt. of India as interest on loan during the year 1999-2000 (last year Rs.52.05)

IV. PROJECTS UNDER OPERATION

KOPILI HYDRO ELECTRIC PROJECT(150 MW)N.C.HILLS,ASSAM

Both the Power Stations under this Project have been operational during 1999-2000.Actual generation from the project during the year was 361.4647 MU against a target of 806 MU due to shutdown of Khandong Unit-II for capital maintenance (145 days) and Kopili Unit-II for TGB problems (257 days).Cumulative generation since inceptiuon upto Mar'2000 was 8687.1971 MU.

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

The project has been operational during 1999-2000. Actual generation during the year was 391.3228MU against a target of 408 MU due to low grid demand.Cumulative generation since inceptiuon upto Mar'2000 was 1197.4326 MU.

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

All 9 units of the project are under commercial operation. Generation during 1999-2000 was 1106.7539 MU against a target of 1120 MU. Cumulative generation upto 31.03.2000 was 3418.5559 MU. The entire amount of Rs.1532.32 crore as per the last revised cost estimate submitted has been received against this project as on 31.03.2000. No budgetory support is proposed for the year 2000-2001.

AGARTALA GAS TURBINE PROJECT(84 MW), AGARTALA, TRIPURA :

Unit IV had developed a defect which is under warranty repair by the manufacturer. However due to non-completion of the transmission lines, generation from the project has been affected. Generation during the year was 365.8974 MU against a target of 350 MU. Cumulative generation since inception upto 31.03.2000 was 581.7434 MU.

The entire amount of Rs.322.55 crore as per the latest RCE submitted has been received as on 31.03.2000.

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 have been completed.The Unit-III machine was synchronised on 26.06.2000 at 20.10 hours and Unit-I & Unit-II machines were synchronised on 8.7.2000 at 18.50 hours and 5.7.2000 at 19.50 hours respectively. Commercial generation from 8.7.2000.

During the year an amount of Rs.190 crore was received against the project. For the year 2000-01, an amount of Rs.110.84 crore was proposed against which Rs.71.06 crore has been allocated. While the latest RCE of the project is Rs.758.70 crore at July,1999 price levels, receipt of funds upto March,2000 stands at Rs.687.85 crore.

(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 as deposit work which is progres. All major works of the project have since been awarded and currently in progres. The Diversion Tunnel was completed and river water diverted through this Tunnel. Boring of 10.13 Km long Main Tunnel has been completed in June’99. Concreting of Main Tunnel completed upto 85 %. Fabrication and Erection of Steel liner has been completed upto 69% and 35% respectively. 95% of excavation and 78% of concreting was completed till March, 2000.Concreting works are progressing satisfactorily.

During the year 1999-2000, an amount of Rs.228.18 Crore was received which included Budgetory support of Rs.93.00 Crore, LIC Loan of Rs. 39.60 Crore and PFC loan of Rs.95.58 crore. For 2000-2001 Rs.200.00 Crore was proposed for the project against which Rs.183.88 crore has been allocated.While the latest RCE of the prject is Rs.1479.63 crore at July, 1999 price levels, receipt of funds upto March, 2000 stands at Rs.1048.83 crore. Considering the constraints faced in the execution of Main Tunnel, Diversion Dam, Power 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 (2X30 MW),MIZORAM :

This project has been taken up as Central Sector Scheme with 85% of the project cost being financed under loan assistance from Japan Bank of International Cooperation (formerly 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 JBIC. 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 consultants for the project has been awarded on 10-12-98 to M/s Electro watt Engineering Limited, Switzerland. The project is in its pre-construction stage. The Dam foundation has been taken up. Widening of the approach road and new formation cutting in parts are in progress. Temporary buildings have been started. A water supply scheme has been initiated. The Consultants have visited the site to take stock of the situation and ask for additional data/information for finalising the design parameters. The allocation for the year 2000-2001 is Rs.90 crore. As on March,2000 an amount of Rs.98.65 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.CCEA clearance for this project has been obtained on 27.07.99 with a cost etimate of the project as Rs. 76.09 crore at September, 1998 price level and a completion schedule of 4 (four) years from the date of CCEA clearance. Based on pre-construction and investigation, the design of various structures have been finalised in consultation with technical experts. It was decided to execute the entire work of the project with two nos. of Civil packages and one no. of Electrical/Mechanical package. The Work order for package-I has already been issued to GSJ Envo Ltd. on 06.10.99 and LOI for package-II has been issued to P. Das & Co. on 24.03.2000. Works of package-I are in progress.

The allocation for the year 2000-2001 is Rs. 15 crore. As on March, 2000 an amount of Rs. 45.86 crore has been received.

VI. NEW PROJECTS UNDER EXECUTION BY NEEPCO:

(A) TUIVAI HYDRO ELECTRIC PROJECT, (3X70 MW), MIZORAM:

Tuivai H.E. Project is located in the Champhai District of Mizoram near Ngopa, Sub-Divisional Headquarter. Techno-economic clearance for the project was awarded by the CEA in February, 1999 for an estimated cost of Rs.964.22 crore including IDC of Rs.47.31 crore at March, 1997 price levels. The debt-equity ratio is 80:20 with an estimated completed cost of Rs.1258.84 crore. However, as per the latest circular of Govt. of India, the revised financial package has been prepared considering a debt-equity ratio is 70:30. A Memorandum of Understanding has been concluded in May, 1996 between the Govt. of Mizoram and NEEPCO Ltd. for execution of the project by NEEPCO under Central sector. Proposal for diversion of 1600 hectare of forest land including compensatory afforestation plan has already been submitted to the MOEF for the necessary clearance. EIA & EMP has been prepared and submitted. Forest and Environmental clearances are expected shortly. However, pre-construction work are in progress

(B) KAMENG HYDRO ELECTRIC PROJECT, (4X150 MW), ARUNACHAL PRADESH.

Kameng HE project is located in the Kameng District of Arunachal Pradesh. The Techno-economic clearance for the project was awarded by the CEA in April, 1991 at an estimated cost of Rs.1160.60 crore including IDC of Rs.186.38 crore at November, 1990 price levels. The cost estimate was further updated considering a debt-equity ratio of 1:1 at Rs.2447.83 crore at June, 1999 price levels excluding IDC. A Memorandum of Understanding has been signed between the Govt. of Arunachal Pradesh and NEEPCO Ltd. for execution of this project under Central sector on 31.03.99. Studies for EIA & EMP are in progress after which the application for Environmental clearances will be submitted to the MOEF. However, pre-construction work has already been taken up.

(C) TIPAIMUKH HYDRO ELECTRIC PROJECT (MULTIPURPOSE) PROJECT, (6X250 MW), MANIPUR:

Tipaimukh HE (Multipurpose) Project is located on the Manipur-Mizoram border 500 meters down stream of the confluence of River Tuivai with River Barak. The project has been cleared by TAC. The estimated cost of the project at July, 1995 price levels stands at Rs.2889 crore without IDC. The revision of DPR and the project cost estimate is under process. The MOU for execution of the project by NEEPCO Ltd. with Govt. of Manipur and Mizoram are in an advanced stage. Further investigation works for preparing revised DPR for obtaining statutory clearances is being taken up.

(D) TRIPURA GAS BASED POWER PROJECT, (500 MW), TRIPURA.

NEEPCO has taken up the work of preparing the detailed project report which is in its final stage and will be submitted to the CEA by the end of August, 2000. The final site selection is almost over with the consent of the Power Deptt., Govt. of Tripura. Other clearances, viz. Forest clearance, Environmental clearance and other miscellaneous statutory clearances are in process.

VII. SURVEY AND 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 2000-2001, an amount of Rs.5.00 crore has been allocated to continue the following investigation works:

  • a) Lower Kopili H.E. Project (150 MW)
  • b) TUIVAI H.E. Project (210 MW)
  • c) Dikrong H.E. Project (100 MW)
  • d) Ranganadi H.E. Project Stage-II(100 MW)
  • e) Kameng H.E. Project (600 MW)
  • f) Tipaimukh H.E. Project (1500 MW)
  • g) Khanteng Mini Hydel Project (7.5 MW)

VIII. ORGANISATION :

(A)

(A) The total number of employees in the Corporation on 31.03.2000 was 3245 as against 3124 on 31.03.1999. 4 Nos. of SC and 25 Nos. of ST, 16 Nos. of OBC, one Ex. SM & one PH post 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 attention of the management during the year under report i.e. 1999-2000.

The major thrust area on HRD front during the year 1999-2000 was that of training the employees on Computer Application to keep pace with the current trend. A total of 246 executives and supervisors of different levels were imparted training on Computer applications paving the way for quick and smooth induction of Information Technology in Corporation.

In order to fill the gap between the skills available and the required skills and to strengthen the Organisation, the HRD Department organised the following Skill Development Programmes of 90 days duration covering 15 participants.

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.

  • E.O.T Crane Operator Training Course.
  • Lineman Training Course.

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

In addition, in order to help the employees to acquire and sharpen their capabilities to perform various functions associated with their present and expected future roles, twelve number of short term training programmes and Workshops were organised during the year 1999-2000 participated by 245 number of employees. While organising in-house training programmes, eminent faculties in the field were also engaged.

Total 509 number of employees i.e., 15.68% (comprising 11405 number of training man-days) were imparted in-house training and 110 employees i.e., 3.38% were deputed to attend Conference, Seminars, Workshops and training programmes conducted by different institutions of repute within the Country and abroad.

(C) INDUSTRIAL RELATIONS

Throughout the year the industrial relations in the corporation remain cordial and harmonious. Not a single Manday was lost on account of industrial relations. Various issues were discussed with representatives of the Trade Unions and Associations across the table from time to time and resolved amicably.

In terms of the GOI's O.M. NO.2(49)/98/DPE(WC) dated 25th June'99, the revision of pay scale allowance and perks of non-unionized Supervisors and Executives are also on the verge of finalization following receipt of certain clarification from GOI, DPE vide O.M.NO.2(15)/2000-DPE(WC)-GL XIX dated 27th March,2000.

(D) WELFARE ACTIVITIES

Following major welfare activities have been undertaken by the Corporation during the year 1999-2000.

  • (i) Summer training/project work facilities have been provided in the Corporation for students from various Engineering Colleges and Management Institutions.
  • (ii) An Industrial Canteen has started functioning in NEEPCO complex, Corporate Office, Shillong on contract.

(iii) HOSPITAL:

  • (iii) Three more hospitals at Guwahati namely Shankar Netralaya, Guwahati, Neurological Research Centre and Good Health Hospital have been added in the list of recognised hospitals by the Corporation for treatment of NEEPCO employees and their family members.

(iii) SCHOOLS:

Following School are working satisfactorily at the various Projects/Sites as mentioned against each:

    • (a) At Kopili Hydro Electric Project, Vivekananda Vidyalaya upto standard XII (Science and Arts) following CBSE course.
    • (b) At Ranganadi Hydro Electric Project, Vivekananda Vidyalaya upto standard X following CBSE course.
    • (c) At Assam Gas Based Power Project, Vivekananda Vidyalaya upto standard IV
    • (d) At Agartala Gas Turbine Power Project, Vivekananda Vidyalaya having only K.G. classes.

Following Schools have been started during the year:

      • (e) Vivekananda Kendra Siksha Prasar Vibhag has taken over from Kendriya Vidyalaya Sangathan the School at Doyang Hydro Electric Project and has started School upto Class X from April,2000.
      • (f) The NEEPCO KG School at Kopili Hydro Electric Project is taken over by Vivekananda Kendra Siksha Prasar Vibhag from April,2000.

(D) SPORTS ACTIVITIES :

The NEEPCO Cricket Team has participated in the 7th Inter CPSU Cricket tournament organised by Power Grid at Nagpur from 15th to 19th February,2000 and has emerged as RUNNERS-UP in the tournament for third consecutive year.

NEEPCO has hosted the 4th Inter CPSU Table Tennis Tournament at Shillong during November,1999 in which prizes were distributed by Hon'ble Minister of State for Power, Smt. Jayawanti Mehta. NEEPCO was placed runner-up in the individual (singles) event.

(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 bilingual office orders and correspondence referred to in Section 3 (3) of Official Language Act. Employees were sent for Hindi training under the Hindi Teaching Scheme, Shillong. Employees of the Project sites were nominated to undergo Hindi Language and Hindi Typewriting Training through correspondence courses. Cash awards were granted to employees for passing various Hindi Examination as per the Govt. Of India's Scheme.

"Rajbhasha Pakhwara" was observed and "Hindi Diwas" was celebrated at the Corporate Office, Shillong as well as at all Projects and subordinate Offices 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 computer software was also introduced during the Pakhwara.

"Rajbhasha Karyashala (Hindi Workshop)"were organised to facilitate the employees for doing their official work in Hindi. 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 various offices in order to increase the working vocabulary of Hindi words of the employees.

IX. AUDITORS’ REPORT

M/s. S. Ganguli and Associates, Chartered Accountants, Calcutta was appointed as Statutory Auditors for the year 1999-2000. The Reports of the Statutory Auditors and comments of the Comptroller and Auditor General of India thereon are enclosed in Annexure-I & II.The Management's views on the CAG's comments are enclosed in Annexure-III

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 in Annexure-IV.

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 C.S.R.752(B)dtd. 17-10-1994 for the year ended 31-03-2000 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:

Shri J. Vasudevan, Shri N.D. George and Shri Sanjeev Ranjan have since ceased to the Directors of the Corporation. Shri Ajay Shankar who was appointed Director in place of Shri J. Vasudevan ceased to be a Director during the year. Shri Shashi Prakash who was appointed Director in place of Shri Sanjeev Ranjan also ceased to be a Director during the year. The Board of Directors placed on record the deep appreciation for the valuable service rendered.

Shri Sailesh, Shri D.K. Sing and Shri Ajeer Vidya were appointed as part-time Directors of the Corporation.

XIII. CONSERVATION: OF ENERGY

Particulars required under the companies (Disclosure of particulars in the report Board of Directors) Rules, 1998 and forming part of Directors' report regarding conservation of Energy/Technology Absorption and Foreign Exchange earnings and outgo during the financial year 1999-2000 is enclosed in Annexure-V.

NEEPCO is very meticulous in observing the requirements of the provision of Environment (Protection) Act, 1986 and Forest (Conservation) Act, 1980 and all the stipulations given in the specific clearance orders of the Ministry of Environment and Forest, Government of India, for different hydro and thermal projects during construction, as well as, operation and maintenance stage. The implementation of compensatory afforestation are normally done through the State Govt. Agencies and by NEEPCO. Besides, plantations with in the project area are taken up by NEEPCO arranging saplings from the State Forest Department or creating nurseries. Restoration of the quarry area, borrow area and dumping area is done through suitable plantation after completion of construction. NEEPCO is also opening LPG Depots at project sites from the IOC for supplying fuel to the Staff and the Officers of the project. Provision is also kept for providing Kerosene Oil to the construction labourers at subsidized rates.

For gas based power projects both Combined Cycle and Open Cycle for NOX control, steam from de-mineralised water or D/M water injection is done in the Gas Turbine. Further, height of the chimney is also suitably designed for this purpose. Besides this, a green belt is created around the project area by suitable plantation.

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.

The Directors are also grateful 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 28th August, 2000.