2000 - 2001

CHAIRMAN’S SPEECH

Gentlemen,

It is my privilege to welcome you to the 25th Annual General Meeting of your Corporation on behalf of the Board of Directors and the employees of the Corporation. The Annual Accounts along with the Report of the Auditors and the Report of the Board of Directors for the year 2000-2001 is already with you and with your permission, I take these as read. I wish to take this opportunity to draw you attention to some of the issues that need to be emphasized and others that require to be noted for the interest of your Corporation.

The year 2000-2001 had been a critical one for the Corporation on account of various reasons, the primary issue having been the crisis resulting from the non-realisation of dues from the beneficiary States. The situation had reached such unmanageable proportions that your Corporation was compelled to adopt a firm stand with the beneficiary States for settlement of the outstanding dues. You will be glad to know that the efforts made by your Corporation had resulted in a record revenue collection of Rs. 292.43 crores as against only Rs. 79.14 crores in the preceding year. In fact, as compared to the net sales of Rs. 391.87 crores during the year, the percentage of realization on current sales works out to 75%. However, even this notable achievement has not b~en able to fully mitigate the financial crunch that the Corporation is facing because the accumulated problem itself is a colossal one. The outstanding dues stood at Rs. 1039 crores as on 31st March, 2001. This corresponds to more than 2 years' sale revenue of the Corporation. Concerted efforts will need to be .continued to attain the twin goals of realizing the current dues in full every month and also liquidating the outstanding dues within a reasonable time frame.

While on the subject of outstanding dues, you are all aware that the Govt. of India is also seized with the magnitude of this problem and its ramifications. Accordingly, an Expert Group under the Chairmanship of Shri M.S. Ahluwalia, Member, Planning Commission, had been constituted to recommend measures for a one- time settlement of outstanding dues from the State Electricity Boards to the CPSUs besides suggesting a strategy for capital restructuring of the State Electricity Boards. The Report of the Expert Group has been submitted to the Government. The problems of your Corporation being a regional organization, are different from those of the all-India power corporations and will need to be viewed in that special context. I hope that all State Governments and the Government of India will help us resolve the vexed problem of outstanding dues and revenue realization in the very near future.

During the year there was considerable thrust on the completion of the 405MW Ranganadi H.E. Project in Arunachal Pradesh. I am happy to report that work on all fronts is moving at an accelerated pace and the commissioning of the project is expected within 2001-2002. With the commissioning of this project, your Corporation will be achieving a very major milestone in capacity addition during the 9th Plan period and the installed capacity will increase from the present level of 700 MW to 1105 MW.

Considering the experience that your Corporation has gained over the years in the execution of projects under the most difficult circumstances and also keeping in view the ever- changing competitive environment in which we are operating, an area which requires special attention, is that of project management. With new and ambitious projects being undertaken by your Corporation including the mega-projects such as the 600 MW Kameng H.E. Project, the 500 MW Tripura Gas Based Power Project and the proposed 1500 MW Tipaimukh H.E. Project, it has become imperative that both a consciousness as well as an expertise are developed at all levels of the Corporation on scientific project management to ensure effective monitoring and to achieve the objective of timely completion within the budgeted limits. An attitudinal change is urgently required so that time and cost over-runs are no longer viewed as unavoidable hazards but as serious reflections on efficiency, credibility and viability. Moreover, in the present day context, innumerable computer-based tools and techniques of project management are easily available and can be put to effective use by your Corporation which has already built a sizeable IT infrastructure and is continuing to further develop the degree of computer awareness and literacy.

Another major area which requires to be developed and strengthened is the Commercial Wing of you Corporation. We are evolving from being a primarily power project-construction company to a power-selling company and our perceptions have to adapt accordingly. It is ultimately the sale of power and the timely realization of revenue which will determine the viability or otherwise of your Corporation. Projects have been built and capacity is being added. However, unless we are able to market our product, locate customers who require our product and realize our revenue, the investment in the projects would be unfruitful. Thus the task of not merely locating the market but also developing it, should be the prime concern of those engaged in the commercial activity of the Corporation. In the context of the North Eastern Region there are several bottlenecks in power sub transmission/distribution that adversely affect the capacity utilization of the power stations. These issues have to be addressed by the concerned States but your Corporation can also play an enabling role in resolving the problem to our mutual benefit. With more power becoming available from the new projects, your Corporation will have to look beyond the North East for markets and be prepared to compete with other national players.

Your Corporation has been posting profits in successive years. However, a close look at the financial results would amply indicate that there is enormous scope for a financial restructuring of your Corporation to optimize the returns earned. There is a huge burden of interest that is being borne on expensive debt liabilities. There is an urgent need to examine whether it would be possible to replace such debts with cheaper loans available under the current market trends. Due to the non-realisation of revenue, your Corporation has been unable to meet some of its liabilities to the Govt. of India and it may be appropriate to consider the possibility of converting some of the Govt. loans into equity to ease the debt burden of your Corporation. Such considerations are to be made in the special context in which your Corporation exists -as a regional Corporation primarily serving the needs and interests of the North Eastern Region. It . would not be out of place to state that the fortunes of the North Eastern Region are closely related to the fortunes of your Corporation which is performing a vital infra structural function of harnessing and exploiting the natural resource of the Region.

To continue as a dynamic entity your Corporation requires new projects to be entrusted to it so that its human and material resources and the considerable experience gained over the years can be fully utilized. As a Corporation created specifically for the regional needs, we expect that new projects would ordinarily be developed in the North Eastern Region by NEEPCO so as to ensure its continued viability. The Government should extend all necessary support and assistance to your Corporation so that it can take on the responsibilities of executing new projects efficiently and effectively.

Last but most importantly, it is the people who make your Corporation. Priority has always been and continues to be given to the development of our human resources as we recognize that they are the most valuable asset that you Corporation possesses. It is our on-going endeavour to enrich the capabilities of our human resources and to provide them with the necessary incentives and encouragement to give their best to the work of your Corporation for the greater benefit of the North Eastern Region, its people and the nation at large.

In conclusion, I wish to place on record, on your behalf and on my own behalf, my deep gratitude and appreciation to the various Ministries and Departments of the Govt. of India, the NEC and the State Governments of the North East, the investors and the employees of your Corporation whose endeavor, support and commitment have made it possible for your Corporation to perform and achieve its goals. I am sure that they will continue to work with the same commitment and zeal in the years to come so that your Corporation can meet the challenges of the future.

Thank you,

Dated, New Delhi,

The 31st Aug’2001

(Anil Razdan)

Chairman & Managing Director

DIRECTORS REPORT FOR THE YEAR 2000-2001

To The Members,

Your Directors have pleasure in presenting the 25th Annual Report of the North Eastern Electric Power Corporation Limited together with the statement of Annual Accounts and Auditors Report for the year ended 31st March 2001.

I.FINANCIAL PERFORMANCE:

This year NEEPCO earned a net profit Rs.117.79 Crore after providing prior period adjustment as compared to Rs 27.93 Crore in the previous year, recording an increase of 322%. The sales including other income have increased to Rs529.75 Crore during 2000-2001 as against Rs440.60 Crore in the previous year recording a growth of 20.23%.

The increase in Profit can be mainly attributable to the writing back of interest on Government of India loan due to rescheduling of loan and equity for Assam Gas Based Power Projects and Kopili Hydro Electric Projects-1st stage Extension to conform to the financing pattern of these projects.

Although there is substantial increase in profit in the current year, the Corporation is still facing a severe liquidity crisis due to the non payment of dues by the beneficiary States . Consequently, the Board has recommended a token dividend of Rs. 2.00 Crore this year.

The current years profit of Rs118.13 Crore along with Rs 0.34 Crore of profit brought forward from last year has been appropriated in the accounts as under:

S.No   (Rs in Crore)
I Transfer to Bond Redemption Reserve. 11.72
II Transfer to General Reserve 104.00
III Transfer to Capital Reserve 0.01
IV Proposed Dividend 2.00
V Dividend Tax 0.20
VI Balance carried over to Balance Sheet 0.20

With the aforesaid transfer, the accumulated balance in Reserve and Surplus of the Company amounts to Rs.367.33 Crores which includes Rs 0.14 Crore as Capital Reserve.

II. PERFORMANCE HIGHLIGHTS:

(a). Capacity Addition:

During the year 2000-2001, all the three units of 3x25 MW Doyang Hydro Electric Project in the district of Wokha Nagaland were successfully commissioned in the month of June-July 2000 and were put into commercial operation since July 11, 2000. With the commissioning of this project, the installed capacity of the Corporation has risen to 700 MW and with a capability to generate 3690 million units per year.

(b). Generation:

The generation during the year 2000-2001 was 2560.08 MU(Million Unit) against MOU target of 2706 MU. The increase in generation over previous year is 15%. The project-wise generation vis-a-vis the targets were as follows: -

Sl. No. Projects Target (MU) Generation (MU) Achievement in %
1 KHEP (250 MW) 900 825.25 91.70
2 AGBPP (291 MW) 1348 1233.44 91.60
3 AGTPP (84 MW) 360 428.83 119.10
4 DHEP (75 MW) 100 72.56 72.56
  Total 2706 2560.08 94.60

Normative designed generation for Kopili HEP is 1214 MU. But the target was kept about 300 MU less due to capital maintenance of Khandong Unit 1 from November 2000 to February 2001 and annual maintenance of each of Kopili units for a month. The Khandong Unit 1 could not be synchronized in February 2001 since the unit was under shut down till March 2001 which were synchronized on 20.7.2001. During the year, the Unit 3 of Kopili was shut down in Dec 2000, Unit 1 in February 2001 and Unit 4 in March 2001. Besides this, during monsoon the off-take of power by the constituent states was less due to low system demand. So the generation could not be achieved fully.

The target generation of AGBPP was kept at 1348 MU keeping in view the load growth in the region and to match with minimum guaranteed gas off-take. However due to low system demand 1233 MU only could be generated at PLF (Plan Load Factor) of 48.36%.

The Unit 4 of AGTPP, which was under maintenance against warrantee coverage, was synchronized on 3rd October2000. Against the MOU target of 360 MU the Power Station generation achieved is 428.83 MU and the achievement I is 119% at a PLF of 58.2%.

The units of DHEP were running from 11 July 2000 on commercial basis. Due to leakage of water in the gates of Diversion Tunnel, there was total shut down of the power station from 1st February 2001. As a result there is a shortfall of 28 MU in generation, from target of 100 MU, Further after repairing the Seal in the gates, the units were re-synchronized on 16.7.2001.

(c). Supply of power to West Bengal State Electricity Board.

Consequent upon commissioning of the 400 kV Double Circuit Transmission line from Balipara to Maldah via Bongaigaon in November 1999, we had studied our capability for more generation for trading of power outside NE Region to boost our sagging financial position caused by highly default in payment by the beneficiary states. Accordingly, with approval from North Eastern Regional Electricity Board, a Contract Agreement was signed in May 2000 with West Bengal State Electricity Board for supply of 50 MW peak power, 20 MW off-peak Power and 200 MU overall supply of energy for one year @ 125 paise per unit. In the year 2000-2001, WBSEB had drawn 188 MU. The contract is further reviewed for another one year with enhanced tariff of 137.5 paise 1 kWh.

(d). Outstanding dues.

The position of outstanding dues as on 31/3/2000 was as under:

Sl. No. Beneficiary States Principal (Rs. In Cr.) Interest(Rs. in Cr.) Total (Rs. in Cr.)
1 ASEB 414.54 214.27 628.81
2 Mizoram 24.90 5.75 30.65
3 Manipur 92.53 24.62 117.15
4 Tripura 34.30 4.72 39.02
5 Arunachal Pradesh 11.15 2.40 13.55
6 Nagaland 44.29 13.13 57.42
7 MeSEB 10.92 1.12 12.04
  TOTAL 632.63 266.01 898.64

Inspite of repeated reminders, very insignificant payment was received from the beneficiary states. Under these circumstances, we were compelled to borrow money from different financial institutions apart from overdraft from banks at a very high rate of interest. Due to this critical situation, we were compelled serve notice on 10th April 2000 to the beneficiary states for stoppage of power supply with effect from 1-6-2000, unless 50% of the defaulted debts are cleared within a month from the date of notice and the balance within 31-5-2000. On 1-6-2000 the Honorable Guwahati High Court directed against a PIL that NEEPCO shall continue to supply electric energy as usual and there shall be no decrease in supply of energy to the state of Assam. NEEPCO however, challenged the PIL at the Honorable Guwahati High Court. The court in a different verdict directed the Government of Assam and ASEB to liquidate the outstanding amount in the following manner.

  • i) The arrears accumulated from 1997 January upto 30-06-2000 amounted to Rs. 654.21 Crores. The ASEB and the Govt. of Assam shall submit a scheme for clearing the outstanding dues from today.
  • ii) The ASEB and the Assam Government through installments would clear the arrears, dues from July 2000 to December 2000 amounting to Rs.103.5 Crores. The first installment of Rs.40 Crores, i.e., Rs.20 Crores, by ASEB and Rs.20 Crores by state of Assam, which shall be paid on or before, 31/3/2001. The ASEB and the state of Assam shall clear the balance within 6 months on monthly installment basis @ not less than Rs.10 Crores each.
  • iii) The current dues with effect from 1.1.2001 which come to approximately Rs. 18,04,00,400.00 (Rupees Eighteen crore four lakhs and four hundred only) per month would be paid by ASEB @ Rs.12 Crores and the state of Assam Rs.3 Crores payable by the end of subsequent month from January 2001.

But the ASEB and the State Government could not abide by the directive of Hon'ble Guwahati High Court due to financial constraints.

The status of sale of energy, billed amount, amount received, outstanding amount without surcharge are given below for the year 2000-2001:

Beneficiary states Net sales (MU) Billed amount(Rs .in Crores) Amount received Cum. Outstanding without surcharge Cum. Outstanding with surcharge
ASEB 1293.52 224.33 155.74 484.46 794.51
Mizoram 179.44 31.23 24.95 31.24 39.64
Manipur 245.85 41.31 31.62 101.9 145.73
Tripura 190.85 29.16 24.84 39.75 50.31
Arunachal 66.22 7.19 3.70 14.50 18.95
Nagaland 173.22 27.88 26.00 45.53 70.08
MeSEB 40.84 5.85 4.09 11.91 14.63
WBSEB 188.75 23.59 21.26 2.33 2.33
TOTAL 2378.69 390.54 292.20 731.62 1136.18

During the year 2000-2001 Rs.292.2 Crores were realized against billed amount of Rs.390.54 Crores, i.e., achievement is 75%. As on 31.03.2001 the defaulted amount by the beneficiaries is Rs.731.62 Crores and Rs.1136.18 Crores including principal and surcharge.

III. FINANCIAL REVIEW:

(a). Capital Structure:

The authorised Share Capital of the Corporation is Rs 2500 Crore. The paid up capital including amount received against Share Capital pending allotment increased from Rs 1867.84 Crore at the end of the previous year to Rs 1876.84 Crore as on 31st March 2001.

(b). Borrowings:-

The borrowing of the Corporation as on 31st March 2001 was Rs 2326.03 Crore as against Rs 2213.26 Crore in the previous year.

During the financial year 2000-2001, the Corporation borrowed in excess of the borrowing power as provided under Section 293(1)(d) of the Companies Act, 1956 after obtaining the necessary approval of the Board and shareholders

(c). Debt servicing :

Debt servicing has been regular for loans taken from the L.I.C, Deutsche Bank, Power Finance Corporation and Bonds. An amount of Rs 27.00 Crore were paid to the Government of India as interest on loan during the year 2000-2001. (previous year Rs. 60.29 Crore).

IV. PROJECTS UNDER OPERATION:

(a) KOPILI HE PROJECT (150 MW), NC Hills Assam:

Under this project there are two power stations namely 4x50 MW Kopili Power Station and 2x25 MW Khandong Power Station.

During the year 2000-01, all the units of Kopili Power Station were available for generation of power except Annual Planned Maintenance of the units as follows:

  • i) Unit 1: With effect from 22 January 2001to 24 February 2001
  • ii) Unit 2: No shut down.
  • iii) Unit 3: With effect from 4 December 2000 to 15 January 2001
  • iv) Unit 4: With effect from 1st April 2000 to 14 April 2000 and 7th March 2001 to 31st March 2001

During 2000-2001 Kopili Power Station generated 593.1851 MU.

(b) KHANDONG POWER STATION (2X25 MW):

The Khandong Unit 1 was taken shut down for capital maintenance from December 11, 2000. The Unit was supposed to be in the grid by end of March 2001. However, due to extensive damage in the underwater parts including runner, those parts had to be sent to BHEL works at Bhopal for repair. This delayed in re-commissioning of the unit.

The generation of the power station during the year is 231.9992 MU.

(c) ASSAM GAS BASED POWER PROJECT(291 MW), BOKULONI, KATHALGURI:

During the year 1233.0592 MU generated by the power station. Cumulative generation upto 31/3/2001 is 4651.6152 MU. All the units are under commercial operation.

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

The Unit 4 of the power station that developed problem during operation is repaired and re-commissioned by the supplier against warrantee in October 2000. Presently all the units are available. Generation during 2000-2001 was 428.7517 MU and the cumulative generation upto 31/3/2001 is 1010.4951 MU.

(e) DOYANG HEP (75 MW):

All the units were commissioned in June-July 2000 and under commercial operation from11 July 2000. During the months of operation in the year 2000-2001 the unit generated by the power station is 72.30677 MU.

The PIB clearance for the Revised Cost Estimate of Rs. 758.70 Crores is already been accorded in April 2001.

V. ONGOING PROJECTS:

(a) RANGANADI HE PROJECT (405 MW), Yazali Arunachal Project:

During the year 2000-2001 Rs. 164.42 Crores. was allocated, which includes Rs. 80 Crores. as budgetary support, Rs. 34.42 Crores. from PFC loan and Bond Rs. 50 Crores. through Bond and NEEPCO received the same amount during the year. However, the expenditure against the project during the year is Rs. 234.71 Crores.

All the major works of the project are in progress and the Unit 1 of the project is scheduled to be commissioned in September 2001 and presently the unit is in Boxed up condition. All the works of 264 RM Diversion Tunnel have been completed and the river water is diverted through it. Boring of 10,134.13 RM including inclined portion has already been completed in June 1999. During the year 98.61% of concreting of the main tunnel completed. Fabrication of HP & LP steel liner has been completed. 97.5% erection of HP Steel liner and 82.3% erection of LP Steel liner completed during the year.

(b) TUIRIAL HE PROJECT (60 MW):

This project has been taken up as a central sector scheme with 85% of the project cost being financed under loan assistance from Japan Bank for International Co-operation (JBIC) and balance 15% from the Government of India assistance. The CEA has cleared the project on 10/08/98 at an estimated cost of Rs. 359.66 Crores. Including IDC and financing charges, which is Rs. 24.43 Crores under loan assistance from JBIC. The PIB clearance for the project was accorded on 27/01/98 and CCEA clearance for the project was awarded on 7/7/98 with a completion schedule of 8 (eight) years from the date of CCEA clearance. The work of Review Consultants for the projects has been awarded on 10/12/98 to M/S Electrowatt Engineering Ltd., Switzerland.

Infrastructural work at site is in progress. Land for the project has been acquired. For acquisition of submergence area, the survey works by Government of Mizoram is in progress. Construction of 132 kV Single Circuit transmission line from Kolashib to project site for Construction Power is taken up by Department of Power and Electricity, Govt. of Mizoram. Construction of approach road from Saipum to project site is in progress. Works of temporary residential and non-residential building and permanent non-residential building is also going on.

During the year, pre-qualification bids for all the major packages of construction/equipment have been invited through ICB. Bids have been received and the list of the qualified bidders has been recommended by NEEPCO for acceptance by JBIC and already accepted. Technical and price bid has already been submitted by the bidders on 10/01/2001. Techno-commercial bid was opened on the same date, i.e., on 10/01/2001. The techno-commercial bids have been reviewed in consultation with Review Consultant and the report for the same has been forwarded to JBIC on 12/4/2001 for their concurrence. After receipt of concurrence from JBIC, the price bid has also been opened on 4th June 2001.

(c) KHEP STAGE-II (25 MW):

The project has been taken up as a Central Sector Scheme. CCEA clearance for this project has been obtained on 27-07-99 with cost estimate of Rs. 76.09 Crores. at September 1998 price level and completion schedule of 4 years from the date of CCEA clearance. Based on pre-construction and investigation, the designs of various structures have been finalized in consultation with technical experts. It was decided to execute the entire work of the project with two numbers of civil packages and one number of electrical package. Package-I of Civil Works consists of excavation of power house, emptying and repairing of existing tunnel, RCC lining of existing by-pass tunnel, boring of high pressure tunnel and tail race tunnel, excavation and concreting of tail race channel and construction of anchors. Package-II of Civil Works consists of procurement of BQ plats, fabrication and erection of Steel liner, grouting in tunnel and finishing works, concreting in power house sub-structure, fabrication and erection of power house steel structure, concreting in roof and other miscellaneous works, fabrication and erection of draft tube. Package-III Electrical/Mechanical Works consists of supply and erection of TG Set, EOT Crane and extension of existing Switchyard. Work order for Package-I & II has been awarded to M/S GSJ Envo Ltd. on 1/10/99 and M/S P. Das and Company on 7/6/2000 respectively. For Package-III, TG-Set has been ordered on M/S BHEL and 100/25T EOT Crane ordered on M/S WMI, Mumbai.

During the year, repairing of tunnel works under Package-I have been completed. Other works are in progress.

VI. NEW PROJECTS UNDER EXECUTION BY NEEPCO:

(a) Tuivai HE Project (3x70 MW), Mizoram:

Tuivai HE project is located in the Aizawl district of Mizoram, near Ngopa sub-divisional Head Quarter. The project is techno-economically cleared by CEA in Feb 1999 for an estimated cost of Rs. 964.22 Crores. including IDC of Rs. 47.31 Crores. at March 1997 price level. The debt-equity ratio is fixed at 70:30 with an estimated completion cost of Rs. 1258.84 Crores. Memorandum of Understanding has been drawn between NEEPCO and Government of Mizoram in May 1996 for execution of the project under the Central Sector. Forest and environmental clearance for the project is awaited. Pre-construction activities are in progress.

(b) KAMENG HE PROJECT (4X150 MW):

Kameng HE Project is located in the Kameng district of Arunachal Pradesh. The techno-economic clearance of the project was accorded by CEA in April 1991 at an estimated cost of Rs. 1160.60 Crores including IDC of Rs. 186.38 Crores at November 1990 price level. The cost estimate was further updated considering debt equity ration of 1:1 to Rs. 2447.83 Crores at June 1999 price level excluding IDC. A Memorandum of Understanding has already been signed between Government of Arunachal Pradesh and NEEPCO Ltd. on 31/3/1999 for execution of the project by NEEPCO Ltd., under Central Sector. Second Stage Environmental and Forest Clearance has been accorded by MOEF on 27/3/2001. Pre-construction activities have already been taken up and the same is in progress.

(c) TRIPURA GAS BASED POWER PROJECT (500 MW):

As per the new initiative announced by the Prime Minister time to time for the overall development of NE Region, it was resolved in the Conference of Power Ministers of NE Region and Sikkim held under the Chairmanship of Minister of Power on 6th January, 2000 at Guwahati that a 500 MW combined cycle gas based power project would be set up in Tripura and implementation of the same to be done by North Eastern Electric Power Corporation Ltd. The plant is envisaged to tap huge gas reserves of Tripura and generate power in the region. The project is located at Marachak village under Manarchak Mauza and Sonamura Sub-Division, Dist. West Tripura. An MOU between Government of Tripura and North Eastern Electric Power Corporation Ltd. has already been drawn on 30/12/2000 for execution of the project by North Eastern Electric Power Corporation Ltd. Revised Feasibility Report has already been submitted on 9/04/2001. Almost all the statutory clearances have been obtained for accord of Techno Economic Clearance (TEC) by the Central Electricity Authority (CEA). The estimated cost of the project is Rs. 2058.55 Crores.

An amount of Rs. 9 Crores has already been allocated for execution of preliminary works of the project.

(d) TIPAIMUKH HE PROJECT (1500 MW)

Tipaimukh HE (Multipurpose) Project is located in the district of Churachandpur under Manipur State. Border 500 meters downstream of the confluence of river Tuivai with river Barak. The project is formally taken over by NEEPCO from Brahmaputra Board. DPR as on December 2000 is prepared by NEEPCO and submitted to CEA and Government of Manipur. Hydro-meteorological observations going on. Application for clearance of site has been submitted. MOU between Government of Manipur and NEEPCO Ltd. for execution of the project is yet to be drawn. Total project cost is envisaged at Rs. 5255.70 Crores. Receipt of fund against the project upto March 2001 is Rs. 7 Crores against which expenditure is Rs. 0.11 Crores. Plan allocation for the year 2001-2002 is Rs. 38 Crores.

VII. SURVEY AND INVESTIGATION SCHEMES:

Following projects are taken up under survey and investigation for execution in future:

  • a) Lower Kopili HE Project (150 MW)
  • b) Dikrong HE Project (100 MW)
  • c) Ranganadi HE Project Stage-II (100 MW)
  • d) Khangteng Mini Hydel Project (7.5 MW)

VIII. ORGANISATION :

(a) STRENGHT OF EMPLOYEES.

The total number of employees in the Corporation as on 31.3.2001 was 3347, which includes 3336 regular and 11 workcharged. A total of 133 employees were recruited during the year out of which 45 are General, 8 SC, 15 OBC and 2 Ex-servicemen.

(b) TRAINING AND DEVELOPMENT.

Human Resource Development continued to receive special attention of the Management during the year under report i.e. 2000-2001.

In order to fill the gap between the available and the required skills and to strengthen the organisation to keep aligned with Corporate goals, the HRD Department continues to organize the following Skill Development On-The-Job programmes of the duration of one year or more covering 30 participants.

  • 1. Boiler Attendants On-The-Job Training
  • 2. Lineman On-The-Job Training
  • 3. EOT Crane Operator On-The-Job Training
  • 4. Electrician On-The-Job Training

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, twenty one numbers of short-term training programmes and workshops were organised during the year 2000-2001 participated by 581 number of employees. While organising In-house training programmes, eminent faculties in the field were also associated.

Total number of employees trained during the year is 18.26% of total manpower held (comprising of 8596 number of training man-days) as In-house Training. 70 employees were deputed to attend Conferences, Seminars, Workshops and training programmes conducted by different Institutions of repute within the Country and 12 employees were deputed to attend Overseas Training during the year which is 2.44% of the manpower held.

(c) INDUSTRIAL RELATIONS :

Throughout the year the industrial relations in the Corporation remained cordial and harmonious. Not a single man-day was lost on account of Industrial relations. Various issues were discussed and resolved with the representative of the Trade Unions and Associations across the table from time to time and resolved amicably. In terms of the Government of India O.M. No.2 (49)/98/DPE (WC) dated. 25th. June 99, the proposal for revision of Pay Scales, allowance and perks for Executives w.e.f.1.1.97 has been submitted to the MOP, GOI for approval. Wage Negotiation has been continuing with the Trade Unions for revision of wage in respect of unionized Workmen.

(d) WELFARE ACTIVITIES:

The following major Welfare activities have been undertaken by the Corporation during the year 2000-2001.

(i) TRAINING:

Industrial training/Project work facilities have been provided in the Corporation for students from various Engineering Colleges and Management Institutions.

(ii) HIGHER STUDIES:

A good number of employees have been granted permission to persue higher studies through distance learning system, especially in Management, Human Rights, etc,

(iii) CANTEEN:

A new contract has been awarded for running the Industrial Canteen at NEEPCO complex, Corporate Office Shillong.

(iv) HOSPITAL:

One more hospital at Delhi namely MGS Hospital and another at Dibrugarh namely Marwari Arogya Bhawan have been added in the list of recognised hospitals by the Corporation for treatment of NEEPCO employees and their family members.

(v) SCHOOLS:

The following Schools are functioning satisfactorily at the various Project/Sites mentioned against each.

    • (a) At Kopili Hydro Electric Project, Vivekananda Kendra Vidyalaya upto standard XII) Science and Arts streams) following CBSE course. In the class X CBSE exam 2001, 26 students appeared 16 were placed in the 1st Class, 9 in 2nd Class and 1 in 3rd Class. In the class XII exam 22 appeared, 13 were placed in 1st Class, 6 in 2nd Class and 3 in Compartmental.
    • (b) At Ranganadi Hydro Electric Project, Vivekananda Kendra Vidyalaya upto standard X following CBSE course. In class X CBSE exam 2001, 18 students appeared out of which 14 secured 1st class and 4 stood 2nd class.
    • (c) At Doyang Hydro Electric Project, Vivekananda Kendra Vidyalaya upto standard X following CBSE course. In the Class X CBSE exam 2001, 6 students appeared out which 3 secured 1st class, one 2nd class and 2 secured 3rd class.
    • (d) At Assam Gas Based Power Project, Vivekananda Kendra Vidyalaya is functioning upto class V.
    • (e) USE OF RAJBHASHA (HINDI)

The Corporation has been implementing the Official language policy of the Government of India at its Corporate Office as well as Projects and other offices. Efforts were made to issue papers referred to in Section 3(3) of the Official Language Act in Hindi and English. Employees of the corporate office were nominated for attending Hindi Language and Hindi Typing Training at local training Center at Shillong under the Hindi Teaching Scheme. Employees posted at projects were nominated to undergo Hindi training through Correspondence Course under Central Hindi Training Institute, New Delhi. Cash awards were granted to the employees for passing Hindi examinations as per the Government of Indias incentive scheme.

Rajbhasha (Hindi) Pakhwara was observed and Hindi Divas was celebrated at the corporate office, Shillong and in the projects and other offices of the Corporation during the year as well. To create an atmosphere of Hindi in the offices and to encourage the use of Hindi in the official works different competitions were conducted in Hindi and attractive prizes were awarded to the participants. An exhibition was also organised at the Corporate Office during Hindi Fortnight where the achievements made on the use of Hindi in the Corporation were displayed. Since the installation of Hindi software at the Corporate Office, for doing official works in Hindi, a satisfactory progress was made in this regard during the year.

Offices were inspected to assess the progress made in the use of Hindi and necessary guidelines were provided for proper implementation of the official Language policy of the Govt. of India. Hindi Workshops were organised at different projects and other offices to facilitate the employees for doing their official works in Hindi. Hindi work with its English equivalent was displayed every day on blackboard under the programme Today's Word in order to enrich the vocabulary of Hindi words of the employees. Glossaries were also distributed among the employees.

IX. AUDITORS REPORT:

M/s.A.Bhattacharjee&Co.Chartered Accountants, Panbazar, Guwahati-781001 were appointed as Statutory Auditors for the year 2000-2001.The report of the Statutory Auditors and Comments of the Comptroller and Auditor General of India thereon are enclosed in Annexes-I & II. The Management's views on the CAGs comments are enclosed in Annex-III

The review of the Comptroller and Auditors General of India on the Accounts of North Eastern Electric Power Corporation Ltd, in terms of Section 619 (4) of the Companies Act, 1956 are furnished in Annex-IV.

X. DIRECTORS RESPONSIBILITY STATEMENT U/S 217 (2AA)

The Directors would like to state the followings: -

      • (a) In the preparation of the annual accounts, the mandatory accounting standards have been followed.
      • (b) The accounting policies adopted are reasonable and prudent so as to give a true and fair view of the state of affairs of the company at the end of the financial year and of the profit or loss of the company for that period.
      • (c) Adequate accounting records in accordance with the provisions of this Act for safeguarding the assets of the company and for preventing and detecting fraud and other irregularities have been maintained.
      • (d) Annual accounts have been prepared on a going concern basis

XI. 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) dt.17.10.1994 for the year ended 31.03.2000 Nil.

XII. VIGILANCE ACTIVITIES:

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

XIII. DIRECTORS:

During the year Shri P.K.Kotoky, retired as Chairman and Managing Director on 30/10/2000. Shri P.K.Chatterjee held the charge of the office of the Chairman and Managing Director till his retirement on 28.2.2001. Since then, Shri Anil Razdan, Joint Secretary to the Government of India, Ministry of Power is holding charge of the Office of the Chairman and managing Director.

Shri S.R. Shivrain, Shri J.K. Yerra, Shri P.K.Chowdhury ceased to be Directors during the year. The Board of Directors places on record its deep appreciation for the valuable services rendered by these Director.

Shri D.V.Khera, Shri Rajiv Datt, Shri S.Jerath and Shri A.K.Shyamkeswar Singh were appointed as part-time Directors of the Corporation.

XIV. CONSERVATION OF ENERGY :

Particulars required under the Companies (Disclosure 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 1999-2000 is enclosed in Annex-V.

NEEPCO is careful in complying with the requirements of the Environment (Protection) Act, 1986 and Forest (Conservation) Act, 1980 All the stipulation 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 is strictly adhered to. The implementation of Compensatory Afforestation is normally done through the State Government agencies and by NEEPCO. Plantations within the project area are also taken up. 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 subsidised rates

For Gas Based Power Project 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.

XV. ACKNOWLEDGEMENT:

The Directors are grateful to the various Ministries of the Government of India, particularly the Ministry of Power, Ministry of Home Affairs, Ministry of Environment and forest, Department of Public Enterprises, Department of Economic Affairs, North Eastern Council, Central Electricity Authority, Central Water Commission, Central Soil and Material Research Station, geological Survey of India, Survey of India and the North Eastern Regional Electricity Board for their continued cooperation and assistance.

The Directors express their sincere gratitude to the Governments of Assam, Meghalaya, Manipur, Mizoram, Nagaland, Tripura and 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 wish to place on record their high appreciation of the dedicated efforts made by all sections of employees of the Corporation to achieve the goals for the Corporation.

For and on behalf of the Board of Directors,

(Anil Razdan)

Chairman & Managing Director

Dated, Shillong

The 31st Aug,2001, New Delhi.