2001 - 2002

CHAIRMAN’S SPEECH

It is my privilege to welcome you all to the 26th Annual General Meeting of your Corporation on behalf of the Board of Directors of the Corporation.

The Report of the Board of Directors for the year 2001-02 along with the Annual Accounts together with the Reports of the Auditors and the Comptroller and Auditor General of India, thereon, is already with you and with your permission, I take them as read. The Report of Board 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.

As we retrospect on our achievements during the last two and half decades, 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 noteworthy fact that your Corporation has indeed achieved another milestone by successfully commissioning 405 MW Ranganadi Hydro Electric Project within 9th Plan period. This is the 1st major Hydel Project in the State of Arunachal Pradesh, which has a total Hydro Power Potential of more than 50,000 MW. With this, the long cherished dream of the people of that state has come true. With the commissioning of this project, the total installed capacity of the Corporation has risen to 1105 MW. However, it is not the time for us to rest on our laurels but to forge ahead with renewed vigor, 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 globalization 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 2762.53 MU of energy (last year 2560 MU) with an average machine availability of 86.6% and a Plant Load factor of 75.3% in AGTP and 51.93% in AGBPP. These achievements and the efforts of your Corporation, translated into financial terms would amply display the continued growth of sales revenue, asset creation and value addition. The Corporation has registered a total income of Rs. 614.51 crores (effect of the M.S. Ahluwahlia Committee recommendations has not been considered) on which the operating profit earned was Rs. 61.62 crores and the net profit after tax earned is Rs. 52.85 crores.

To continue as a dynamic entity, your Corporation requires new Projects so that its human and material resources and the considerable experience gained over the years can be fully utilized. As a matter of fact, the Corporation being a Premier Organisation formed exclusively for development and exploitation of Power Potential in the North Eastern Region, should be entrusted with the responsibility of executing all major schemes in this region. The 600 MW Kameng Hydro Electric Power Project has been cleared for 2nd stage development under 3-stage clearance policy of the Govt. of India. However, not much headway could be achieved in respect of 1500 MW Tipaimukh HEP and 210 MW Tuivai HEP. However, I am glad to announce that the 500 MW Tripura Gas Based Power Project has received all statutory clearance and is awaiting Financial Closure. Pinal clearance of the Project and necessary tie-up for supply of gas is expected before the end of next financial year.

Gentlemen, you will be glad to know that in this year, the Ministry of Power has declared Assam Gas Based Power Projeect as a 'Center of Excellence' on recognition of its continued high quality performance. There can be no doubt that this achievement will be engraved as a hallmark of pride in the annals of your Corporation, besides being an inspiration and encouragement to its employees whose untiring efforts in the most adverse situations made this impossibility into a glowing reality. This achievement, I believe will go a long way in motivating other utilities also for their growth and consequent development for the region as a whole.

Recognizing 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 was made in selling surplus power to the State of West Bengal in May 2000. Since then continuous efforts were also on for selling surplus power to the power deficient Northern Grid. You will be glad to learn that favorable response from the States of Haryana, Punjab and Delhi has already been received for selling power to these States against the generation of Tripura Gas Based Power Project (500 MW) which is going to be executed soon.

With an aim of becoming a 10,000 MW power utility by the end of 12th Plan, your Corporation has re-structured its systems to withstand the present day challenge to live up to the requirement of the coming years. Since human resources is recognized as the most valuable assets, continuous efforts are given to the development of human resources to enrich its capability to give their best to the work of your Corporation for the benefit of the Corporation and the region as a whole.

Before I conclude, I would like to place on record, on your behalf and on my own behalf, our deep gratitude to the various Ministries and Departments of the Government of India, the NEC and the State Governments of the North East, the investors and the employees of the Corporation whose endeavor, support and commitment have made it possible for your Corporation to perform and achieve its goal. I am confident that we can always rely on their philanthropic support and dedication in all the years to come

Thank you,

Dated,

The 9th Dec’2002

(S. C. Sharma)

Chairman & Managing Director

DIRECTORS REPORT FOR THE YEAR 2001-2002

To The Members,

Your Directors have pleasure in presenting the 26th 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 2002.

I. FINANCIAL PERFORMANCE:

During the year NEEPCO earned a Post-tax profit of R s. 52.85 Crores after prior period adjustment The sale including other income have increased to Rs.614.51 Crores during 2000-2001 as against Rs.529.75 Crores in the previous year recording a growth of 16%

A comparison of the financial figures of the current year vis-a-vis that of the previous year is given below:

PARTICULARS CURRENT YEAR (Rs. in Crores) PREVIOUS YEAR (Rs. in Crores)
Net Sales 453.23 391.87
Other Income 161.28 137.88
Operating Profit 61.62 24.32
Add : Prior Period Adjustment 4.06 95.53
Less : Provision for Taxation 4.71 2.06
Net Profit for the year 52.85 117.79

The current year's profit of Rs. 53.04 crores including Rs. 0.19 crores of Profit brought forward from last year has been appropriated in the accounts as under:-

  (Rs. in Crores)
Transfer to Bond Redemption Reserve 33.67
Transfer to General Reserve 18.00
Proposed Dividend 1.00
Dividend Tax (Provision) 0.10
Balance carried over to Balance Sheet 0.27

With the aforesaid transfer the accumulated balance in Reserve & Surplus of the Corporation has gone up to Rs. 427.92 crores.

Although there is considerable profit in the current year, the liquidity position of the Corporation is critically affected due to adverse financial position of the NER States leading to non-realisation of revenue from the beneficiary States. Consequently, the board has recommended a token dividend of Rs. 1.00 crores this year.

FINANCIAL REVIEW:

a. Capital Structure :

The authorised Share Capital of the Corporation is Rs. 2500 Crores. The paid up capital including amount received against Share Capital pending allotment was Rs. 1918.12 crores (previous year Rs. 1876.84 crores).

b. Borrowings:

The borrowing of the Corporation as on 3lst March, 2002 was Rs. 2590.58 crores as against Rs. 2326.03 crores in the previous year.

With the requisite approval of the Board and Shareholders, the Corporation had during the financial year 2001-02 borrowed in excess of the borrowing power as provided under Section 293(i)(d) of the Companies Act, 1956.

c. Debt Servicing:

During the year under consideration the Corporation had successfully discharged its liabilities towards 13.5% Taxable Bonds and 10.5% Tax free Bonds to the tune of Rs. 78.8 crores along with interest thereon.

The Corporation is regularly servicing its loan from L.I.C., Deutsche Bank, Power Finance Corporation and Bonds.

Interest payment to the Govt. of India on the loan outstanding during the year 2001-02 was nil (previous year Rs. 27.00 crores).

NET WORTH:

The net worth of the Corporation excluding committed reserve as on 31st March 2002 was Rs. 2257.06 crores (previous year Rs. 2158.55 crores).

FINANCIAL UPDATES:

After the finalisation of the Balance Sheet the Govt. of India had issued an order reversing its previous order of paying the Corporation an amount of Rs. 7.00 crores against equity and Rs. 20.00 crores against loan for the projects. The necessary effect of the same shall be given in the year 2002-03.

VISION FOR FUTURE:

The Corporation has awarded the work of preparation of Audit Manual to M/S. Enrst & Young (Previously M/S. S.R. Batliboi Company). The Manual is at advanced stage of submission.

The preparation of the perspective plan and cost aspects of the bench marking is also under active consideration of the Corporation.

COST ACCOUNTING RECORD RULES :

The Institute of Cost & Work Accountants of the India had published Draft Cost Accounting Record Rules as notified by the Govt. of India for the power industry. Following the provisions of these rules, the Corporation has installed a Costing System by in-house exercise and Cost Sheets are being prepared regularly. The draft Cost Accounting Manual had been sent to Cost Consultant for evaluation and suggestion for improvement if any. These rules have come into operation with effect from 1st April, 2002.

II. PERFORMANCE HIGHLIGHTS:

(a) Capacity Addition:

During the year 2001-2002, all the three units of 3x 135 MW Ranganadi Hydro Electric Project in Lower Subansiri District of Arunachal Pradesh was successfully synchronized on 26/01/2002, 29/01/2002 and 27/03/2002 respectively. The Unit I & II were put into commercial operation on 12/02/2002. With the commissioning of this project, the installed capacity of the Corporation has risen to 1105 MW and with a capability to generate 5564 Million Units per year.

(b) Generation:

The generation during the year 2001-2002 was 2762.53 MU against MOU target of 2900 MU. MOU target could not be achieved mainly due to lack of demand in the grid. The increase in generation over previous year is 2.1%. The project wise generation vis-vis the targets were as follows:-

(a) Kopili HE Project (250MW), North Cachar Hills, Assam :

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

Kopili Hydro Electric Project which includes Khandong Power Station, generated 722.57 MU against a generation target of 900 MU and Design Energy of 1247 MU. Shortfall was due to lack of off-peak demand in the grid.

i) Kopili Power Station (4x50 MW)

During the year 2001-2002 all the units of Kopili Power Stations were available for generation of power for the full year except for Annual Planned Maintenance of the units as follows:

  • i) Unit-#I : Jan 2002
  • ii) Unit-#II : Feb 2002
  • iii) Unit-#III : Mar 2002

During the year 2001-02, Kopili Power Station generated 544.10 MU

ii) Khandong Power Station (2x25 MW)

Khandong Unit-#I was under capital maintenance from Dec 11, 2000 and was supposed to be in the grid by the end of March 2001. However due to extensive damage in the underwater parts including runner, the unit was put in the grid in the month of June 2001.

During the year 2001-02, Khandong Power Station generated 178.47 MU

(b) Assam Gas Based Power Project (291 MW), Bokuloni, Kathalguri, Assam:

The energy generated during the year was 1323.71 MU, against the targeted generation of 1400 MU, with a PLF of 51.93%. The targeted generation could not be achieved due to lack of demand in the grid. The Machine Availability during the year was approximately 83.42%.

(c) Agartala Gas Turbine Project (84 MW), Ramchandranagar, Tripura

The energy generated during the year was 554.11 MU against a target of 450 MU and design energy of 504 MU, with a PLF of 75.3 %. Further to this, AGTPP also recorded the highest Machine Availability (90.32%) amongst all the generating stations of NEEPCO.

(d) Doyang H. E. Project (75 MW), Wokha, Nagaland

Doyang HEP generated 140.57 MU against a generation target of 150 MU and Design Energy of 227 MU. The target could not be achieved due to lack of demand in the grid. The Availability of DHEP during the year was less due to repair of GT#2.

(e) Ranganadi H. E. project (405 MW), Yazali, Arunachal Pradesh:

All the machines of the Power Station were available for generation since the date of declaration of commercial generation. The project could not generate to its maximum rated capacity as 400 kV switchyard is yet to be completed in all respect. The evacuation is presently being done by 132 kV S/C line to Nirjuli.

Further, to generate power upto its rated capacity, the reservoir level is to be raised up to El 567.00 M that is possible only on completion of the rectification work of Water Conductor System.

During the year 2001-02, the Power Station generated 21.57 MU

IV. ONGOING PROJECTS :

a. Tuirial H. E. project (60 MW), Mizoram:

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 India assistance. The project was accorded investment approval in July, 1998 at a total cost of Rs. 368.72 crores including IDC with completion period of 8 (eight years) from the date of CCEA clearance. M/s Electrowatt Engineering Ltd., Zurich, Switzerland was appointed the Review Consultant for the project in December 1998. Infrastructural work at site is in the final stage of completion. Land for the project has been acquired. Construction of 132 KV S/C Kolashib Tuirial transmission line for drawal of construction power is under execution and expected to be completed soon. One 630 KVA DG set is being commissioned at site and another two similar sets shall be commissioned soon. 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.

Pre Construction geological investigation has been completed with respect to Dam, Tunnel & Power House. Tendering process through ICB for all the major Packages were accomplished in the last financial year. Works against Lot-I has been allotted to M/s Patel Engineering, Mumbai on 28th September 2001. Other Lots are yet to be allotted.

b. Kopili H. E. Project Stage-II (25 MW), North Cachar Hills, Assam:

The project has been taken up as 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.

Pre-construction investigation of the project has been completed and design of various structures has been finalized. The entire work of the project has been divided in to two Civil Packages and one Electrical/ Mechanical package. Package I consisting of excavation of power house, emptying and repair of existing tunnel, R.C.C lining of existing Bye-pass tunnel, boring of high pressure tunnel and Tail Race tunnel, excavation concreting of Tail Race Channel and construction of anchors. Package-II consisting of procurement of BQ plates, 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 DT gate. Package-III consisting of supply and erection of EOT crane, Turbine Generator and extension of existing Switchyard.

Work order for Package-I & II have already been placed on M/s GSJ Envo Ltd. on 1/10/99 and on M/s P. Das & Company on 7/6/2000 respectively. For package-III TG sets have been ordered on BHEL and 100/25 T EOT crane ordered on M/S WMI, Mumbai.

Status of work up to 31st March 2002

A. Under Package-I

  • a) Excavation works PowerHouse & Tail pool- Completed, Water Conductor System & Anchor Block-97.33%, Tail Race System & Cut and Cover Completed.
  • b) Tunnel Boring Works Water Conductor System Completed, Tail Race Tunnel - 78.05%,
  • c) Concreting Works: Head Race Tunnel- 47.28%, Tail Race Tunnel - 28.46%, Anchor Blocks - 34.58%, Tail Race System and Cut & Cover- 30.74%
  • d) Permanent Steel Supports:- Head Race Tunnel & Penstock- Completed, Tail Race Tunnel - 56.07%
  • e) Steel Reinforcement:- Anchor Block & Portal Area- 10.83%, Tail Race System & Cut & Cover- 77.5%

B. Under Package-II

1. Fabrication:

  • a) Fabrication of Power House Steel structure- Completed,
  • b) Fabrication of Steel liner 89.71% c) Fabrication of Diversion Tunnel Gate- Nil

2. Erection:

  • a) Erection of Power House Steel structure- 32.62%,
  • b) Erection of Steel liner 33.82%
  • c) Erection of Diversion Tunnel Gate- Nil

3. Concreting (M20): 49.47%

C. Under Package-III ( Electrical Works)

  • 1. Manufacture, Supply, Erection, and Commissioning of Turbine Generator sets (1x 25 MW): Supply is in progress in phases from the manufacturer.
  • 2. Manufacture, Supply, Erection, and Commissioning of EOT crane (100/25 MT): Order for supply was placed and materials have reached site.
  • 3. Erection, Testing, Trial Run and Commissioning of 1x25 MW KHEP stage-II: Work is in progress
  • 4. Others: Technical specifications are finalized for fire fighting, PH illumination, Carbon Dioxide, Air Conditioning & Ventilation. Laying of ground mat in service bay and machine hall area is completed.

V) NEW PROJECTS UNDER EXECUTION BY NEEPCO:

a) Tuivai H. E. Project (3x70 MW), Mizoram:

Tuivai H. E. Project is located in Aizwal district of Mizoram, near Ngopa sub-divisional Head Quarter. The techno-economic clearance of the project was accorded by CEA in Feb 1999 at base level project cost of Rs. 964.22 Crores including interest during construction of Rs. 47.31 Crores at March 1997 price level. The debt equity ratio ixed at 70:30 and estimated completion cost was Rs. 1258.84 Crores. A Memorandum of Understanding has been drawn between Government of Mizoram and NEEPCO Ltd. in May 1996 for execution of the project by NEEPCO Ltd under Central Sector.

CCEA clearance of the project has not been accorded. As per latest policy of 3-part clearance of the project estimate, estimate for 2nd stage clearance of the project amounting to Rs. 12200.00 lakhs has been submitted to MOP, Govt. of India. Commissioning schedule of the project has been envisaged 66 months from zero date.

All statutory clearances including Forest and Environmental Clarence from MOE & F has been received. Pre-construction activities like development of infrastructural facilities and survey and investigation works are in progress

b) Tripura Gas Based Power project (500 MW), Tripura:

The 500 MW combined cycle gas based power project is located at Monarchak village under Monarchak Mauza and Sonamura Sub-division, Dist. West Tripura. The plant is envisaged to tap huge gas reserves of Tripura and generate power in the region. A Memorandum of Understanding has been drawn between Government of Tripura and NEEPCO Ltd. on 30.12.2000 for execution of the project by NEEPCO Ltd. Revised Feasibility Report has been submitted on 9.04.2001. All the statutory Clearances have been obtained for accord of Techno Economic Clearance (TEC) by CEA. The estimated cost of the project is Rs. 2058.55 Crores.

VI) ORGANISATION :

(a) Strength of employees:

The total number of employees in the Corporation as on 31.03.2002 was 3310 which includes 3299 regular and 11 work-charge. A total of 9 employees were recruited during the year out of which 2 are General, 1 ST and 6 OBC.

(b) Training And development:

The HRD philosophy of the corporation recognizes that it is the people who matter most in the organization and that training and development of human resources is the imperative need to achieve the organizational goals and objectives. During the year under report, the HRD Institute of the Corporation organized Seminars, workshops and Training Programmes on various work related topics covering 250 employees of different levels.

The Corporation, while recognizing the benefits and advantages of in-house training programmes, also places equal emphasis on external training so that the organization can be strengthened by learning from external sources. In line with this, a total of 109 employees were deputed during the year 2001-2002 to attend Conferences, Seminars, Workshops and Training Programmes conducted by different Institutions of repute within the country and abroad.

In order to disseminate information on professional matters and to create general awareness amongst executives, a fortnightly in-house bulletin titled HRD Update was published regularly during the period under report.

The Corporation achieved excellent rating for endeavors made in the area of HRD as per performance parameters incorporated in the MOU for the year 2001-2002 entered into with the Ministry of Power, Government of India.

(c) Industrial Relations :

The industrial relations in the Corporation remained cordial and harmonious throughout the year. Not a single man-day was lost on account of industrial relations. Various issues were discussed and resolved amicably with the representatives of the Trade Unions and Associations across the table from time to time.

In terms of Government of India O.M. No.2 (49)/98/DPE (WC) Dated 25th. June 1999 the proposal for revision of Pay scales, Allowances and perks for Executives & Supervisors w.e.f. 01-01-1997 has been submitted to the MOP, GOI for approval.

Wage negotiation meeting were continued during the year and MOU with the Trade Unions for revision of wage in respect of Unionized Workman has been signed on 13th November 2001.

(d) Welfare Activities :

The following major Welfare activities have been undertaken by the Corporation during the year 2001-2002.

(i) Training Industrial training/Project work facilities were 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 such as graduation for non-graduates, Management courses for graduates etc.

(iii) Industrial Canteen : A new contract has been awarded for running the Industrial Canteen at NEEPCO Complex, Corporate Office Shillong from 01-05-2002.

(iv) Hospital : Two hospitals at Silchar, namely Green View Nursing Home, Silchar and Sunlit hospital Silchar have been added to the list of approved Hospitals for employees and wards of Turial Hydro Electric Project. In addition one hospital at Tezpur namely Baptist Christian hospital is authorised for treatment of employees and wards of Kameng Hydro Electric Project.

(v) School : The following Schools are functioning satisfactorily at the various Project/Sites mentioned below:

  • (a) At Kopili Hydro Electric Project, Vivekananda Kendra Vidyalaya upto standard XII ( Science and Arts streams) following CBSE course.
  • (b) At Ranganadi Hydro Electric Project , vivekananda Kendra Vidyalaya upto standard following CBSE course
  • (c) At Doyang Hydro Electric Power Project, Vivekananda Kendra Vidyalaya upto standard X following CBSE course.
  • (d) At Assam Gas Based Power Project, Vivekananda Kendra Vidyalaya is functioning upto class-VI. Approval is granted for upgradation of the School upto class-VIII.
  • (e) At Agartala Gas turbine Power Project, a KG School by name West Point School has been functioning.
  • (f) At Doimukh (RHEP) the corporation has provided KG School. Feasibility study is undertaken for providing further Educational facility.

(iv) Co-operative NRC: A loan of Rupees one lakh has been granted to AGBPP Officers and Staff Consumer Co-operative Store Ltd., Bokuloni to facilitate the society to meet financial requirement for arranging supply of controlled commodities to the employees of the Project at reasonable rates.Also, a sum of Rupees Fifty Thousand has been sanctioned for NRC, AGTPP for sports, Library and cultural events organised by NRC, AGTPP, Agartala.

(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. 12 employees of the corporate Office were nominated for Hindi training at local training center under Hindi Teaching Scheme. 28 employees posted at Projects were nominated for Hindi training through Correspondence Course under Central Hindi training Institute, New Delhi. Cash awards were granted to the 24 employees for passing Hindi examinations as per the Govt. of India's Incentive Scheme. Hindi Workshops were organised at different offices to facilitate the employees for doing their official work in Hindi. Glossaries were also distributed among the employees during the workshop. Offices were inspected to assess the progress made in the use of Hindi and necessary guide lines were provided for proper implementation of the Official Language Policy of the Govt. of India key words in Hindi with English equivalent were displayed everyday on the black board under the programme Today word in order to enrich the vocabulary of Hindi words of the employees.

Rajbhasha (Hindi) Pakhwara was observed and Hindi divas was celebrated at the Corporate Office as well as in the Project and other offices of the Corporation during the year to create a conducive atmosphere and to encourage the employees for doing their official works in Hindi, various competitions were conducted in Hindi and attractive prizes were awarded to the participants. Rajbhasha seminar was organised at the Corporate Office during the Pakhwara. An exhibition was also organised where the achievements made on the use of Hindi in the Corporation were displayed.

Rajbhasha (Hindi) Pustakalaya is functioning at Corporate Office. It has been enriched with many valuable books during the year. Since the installation of Hindi software in Corporate Office, a remarkable progress has been made in the use of Hindi in official works.

VII) AUDITORS REPORT:

M/s.A.Bhattacharjee&Co.Chartered Accountants, Panbazar, Guwahati-781001 were appointed as Statutory Auditors for the year 2001-2002.The report of the Statutory Auditors and Comments of the Comptroller and Auditor General of India thereon are enclosed in Annexes-I & II.

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-III.

VIII) DIRECTORS RESPONSIBILITY STATEMENT U/S 217 (2AA)

The Directors certify 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.

IX) 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.

X) VIGILANCE ACTIVITIES:

In keeping with 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.

XI) DIRECTORS:

The following changes have taken place in the Board of Directors of the Corporation since the last Annual General Meeting:

Shri Anil Razdan, Joint Secretary to the Govt. of India, Ministry of Power, held temporary charge of the office of Chairman & Managing Director till the appointment of the regular incumbent, Shri S.R.Nath, on 29.04.2002. On the superannuation of Shri S.R.Nath on 31.08.2002, Shri R.P.Sharma, Director (Technical), was holding charge of the office of the Chairman & Managing Director of the Corporation till 20.11.2002. Shri Subhash Sharma assumed office of the Chairman & Managing Director on 20.11.2002

Shri R.P.Sharma was appointed as the Director (Technical) of the Corporation on 01.10.2001in place of Shri S.B.Dey who retired on superannuation.

Shri D.V.Khera, Shri Sailesh, Shri S.Jerath, Shri Ajeer Vidya, Shri C.D.Kynjing, Shri Ganesh Koyu, Shri Rajiv Datt and Shri D.K.Singh ceased to be Directors during the period since the last Annual General Meeting. The Board of Directors places on record its deep appreciation for the valuable services rendered by these Directors.

Shri Alok Perti and Shri A.K.Guha, who were appointed as part-time Directors of the Corporation during the period, ceased as Directors.

Shri B.K.Agarwal, Shri P.K.Tripathi, Shri Jitesh Khosla, Shri Ajai Srivastava, Shri B.K.Dev Verma, Shri M.K.Parida, Shri V.S.Prasad and Shri Saurabh Kumar were appointed as part-time Directors of the Corporation.

XII) 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 2000-2001 is enclosed in Annex-IV. 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 staff and the officers of the project. Provision is also kept for providing kerosene oil to the construction laborers at subsidized rates. For Gas Based Power Project both combined Cycle and Open Cycle for NOX control, steam from de-mineralized 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.

XIII) 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 Finance, Ministry of Environment and forest, Planning Commission, Department of Public Enterprises, 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 Arunachal Pradesh Assam, Manipur, Meghalaya, Mizoram, Nagaland, and Tripura 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 of the Corporation.

For and on behalf of the Board of Directors,

(Subhash Sharma)

Chairman & Managing Director

Dated, Shillong

The 9th Dec,2002.