2003 - 2004

2003 - 2004 CHAIRMAN’S SPEECH

Dear Members,

It is my great pleasure and privilege to welcome you to the 28 th Annual General Meeting of your Company. The Directors Report, Audited Accounts for the year 2003-2004, reports of Auditors and comments of the C&AG are placed before you for your consideration and adoption. With your permission I take them as read.

You will be pleased to know that your Company has performed remarkably in both volume and value terms in the last year. Your Company has made a complete turn around from a loss of 408 Crs. in previous year to a record net profit of Rs.208 Crs. Against a target of 4135 MU for the year, the actual generation was 4164 MU, which is also the highest achieved so far and 39% higher than the previous year. The backing down generation for reasons not attributable to NEEPCO was 594 MU. The corresponding sales turnover was RS.670 Crs. registering an increase of 63% from the previous year. The collection of revenue was101% more compared to last year and stood at rs.584 Crs.

The progress of work of the projects under execution had also been satisfactory like the excellent performances exhibited by O&M projects. In December 2003, Kopili Stage-II project was commissioned as per schedule in spite of the poor law and order situation prevailed in the project area. With this the installed capacity of the Company rose to 1130 MW. Infrastructure works at the Kameng HEP and Tripura Gas Power Project had also progressed satisfactorily. These two projects are now poised for final investment approval from Government of India and we are fully geared up and committed to completed these projects within schedule time.

As part of strategic financial management, we have reduced our high interest bearing Government loans by swapping with low interest bearing loans from the presently flourishing financial market. This has resulted in considerable reduction in interest and financial charges to the Company, recently financial closure for the Kameng HEP and TGBP has also been tied up. The collection of revenue has been 87% of billing, and with this liquidity the company is regular in debt servicing. With our improved balance sheet, we can raise resources easily for our future projects.

As I look forward, I foresee business opportunities expanding as never before. As part of Hon'ble Prime Minister's 50,000 MW hydro initiative NEEPCO has entrusted with preparation of Feasibility Reports of 18 projects of NER in three phases and these are being submitted on time, some PFRs even before time. For this outstanding performance of consultancy service, projects in the State of Uttaranchal and Karnataka are also being offered to NEEPCO for preparation Feasibility/Detailed Project Report. The Company has drawn up an ambitious programme for significant contribution in this programme of Power for all by 2012.

The Corporation has been certified as an ISO 9001:2000 Company in Sept'03 in view of its high standard in terms of quality and performance. NEEPCO also ensures continual improvement of its functioning and has embarked upon a programme for achieving ISO 14000 for environmental safeguards and OHSAS 18000 for Occupational Health and Safety Standard. I would stress that such- sustaining momentum for quality performance through continuous and impersonal adherence to a well documented process that ISO Standards recognizes.

It is a matter of pride that your Company is all set to get Excellent rating for the first time under the MOU signed with Ministry of Power on the basis of performance indicators.

Despite remoteness of our project areas coupled with infrastructural bottleneck and extremist/security problem, it was possible to achieve the desired performance due to the sheer dedication and commitment of the employees of your Company. The faith reposed on the Management and commitment to work of your employees give us confidence to move ahead. We remain dedicated to provide low-cost quality power and superior customer service to the States of NER in particular and the Nation in general.

I would like to take this opportunity to convey my deep appreciation to the Directors for their continued understanding, valuable guidance & support. My sincere thanks also go to all the Government Agencies, Financial Institutions and employees of the Corporation and all other associated with us without whose active support it would not have been possible for the Corporation to maintain it's pre-eminence in the field of power generation to the full satisfaction of all the stakeholders.

( S. C. Sharma )

Chairman and Managing Director

DIRECTORS' REPORT FOR THE YEAR 2003-2004

To The Members,

Your Directors have pleasure in presenting the 28 th Annual Report of the North Eastern Electric Power Corporation Limited, together with the statement of Annual Accounts, Auditors' Report and Review of Accounts by the C & AG for the year ended 31 st March 2004.

1. FINANCIAL PERFORMANCE:

Your Company registered a record generation, turnover and profit during the year 2003-04. The Gross Revenue achieved was Rs.768.28 crores in the year 2003-04 against previous year's figure of Rs.496.14 crores recording a growth of 54.85%. The sales income for the year was Rs.670.31 crores in comparison to previous year's Rs.412.29 crores, recording a growth of 62.58%. For the year ended on 31 st March 2004, the Company earned a record Profit before tax of Rs.208.10 crores against a net loss of Rs.408.15 crores for the year ended on 31 st March 2003, while the Profit after tax amounts to Rs.197.58 crores for the current year. This could be achieved mainly due to increase of sales income and lowering of interest charges by means of swapping high cost loans.

Details of financial result are stated in Table A

Table A

  (Rs in Crores)
2003-04 2002-03
Gross revenue 768.28 496.14
Sales Income 670.31 412.29
Extra ordinary items - 254.10
Gross Margin 525.34 299.16
Depreciation 141.45 201.51
Deferred Revenue Expenditure 2.30 0.60
Gross Profit 381.59 97.05
Interest and Finance Charges 173.49 251.10
Provision for Taxes 10.52 -
Net Profit / (Loss) 197.58 (408.15)
Appropriations :-    
Transfer to Bond Redemption Reserve 87.16 -
Proposed Dividend (including imterim dividend) 5.00 -
Tax on Dividend 0.64 -
Transfer To General Reserve 46.00 -

DIVIDEND:

Keeping in view the previous year loss of Rs.408.15 crores, unrealized revenue, undertaking of the company to clear arrear interest on Govt. loan amounting to about Rs.300.00 crores and transfer of profit to statutory reserves, the Company proposes a token dividend of Rs.5.00 crores for the year 2003-04 inclusive of the interim dividend of Rs.2.00 crores declared earlier.

REVENUE REALISATION:

The percentage of debt realization to sales for the year was 87.50% as against the previous years figures of 71.49%. The one time settlement of the outstanding dues from the beneficiary States has brought immense relief for the Company. Up to the end 2003-04, Rs.954.91 crores worth of Power Bonds have been received by the Company resulting in reduction of Sundry Debtors from Rs.1286.42 crores in 2002-03 to just Rs.306.28 crores in 2003-04.

II. FINANCIAL REVIEW:

a) CAPITAL STRUCTURE:

During the year ended on 31 st March 2004, the Authorised Capital of the Corporation was raised from Rs.2500.00 crores in the previous year to Rs.3500.00 crores for which Presidential approval was received on 31.10.2003. The Paid up Capital, including amount received against share capital pending allotment was Rs.1953.27 crores (Previous Year Rs.1932.01 crores).

b) BORROWINGS

The borrowings of the Corporation as on 31 st March 2004, was Rs.3109.55 crores as against Rs.2935.26 crores as on 31 st March 2003. This had the approval of the Board and Shareholders in view of the amount borrowed being in excess of the limit as provided under section 293(i) (d) of the Companies Act, 1956.

c) DEBT SERVICING:

During the year under review, the Corporation has repaid GOI loans amounting to Rs.298.64 crores plus interest of Rs.36.23 crores. Similarly dues of GAIL and OIL amounting to Rs.259.00 crores were also paid by the Corporation. NEEPCO is also regular in servicing the debts from LIC, PFC, Deutsche Bank and Bonds Redemption worth Rs.24.50 crores were also made during the year.

d) NET WORTH:

The net worth of the Corporation excluding committed reserve as on 31 st March 2004, was Rs.1985.81 crores against Rs.1863.27 crores as on 31 st March 2003, representing a growth of 7.32%.

e) FINANCIAL RESTRUCTURING:

During the year financial restructuring of the Corporation was carried out by :-

  • Swapping of high interest Government of India loan and the loan from Housing urban Development Corporation by a low interest loan syndicated from a Consortium of Banks. In addition to this, the Corporation had also swapped the high interest short term loan and medium term loan by similar loans at a lower rate.
  • Restructuring of interest rate on loans availed from Power Finance Corporation and Life Insurance Corporation to the prevailing lending rates of these lenders.

As a result, finance charges for the year have drastically come down to Rs.173.49 crores from Rs.251.10 crores in the previous year.

f) COST ACCOUNTING RECORD RULES:

Cost Accounting Record Rules have been introduced for Electricity Industries w.e.f. the year 2001-02. Accordingly, in line with the Draft Rules notified by the Deptt. Of Company Affairs, monthly Cost Sheets are being prepared for all the generating units. The report submitted by voluntary Cost Auditors are under review by the Management.

III. PERFORMANCE HIGHLIGHTS:

GENERATION:

The generation during the year 2003-04 was 4164 MU against MOU target of 4135 MU. The increase in generation over previous year is 39.20% and MOU target as set has also been well achieved. This is observed to be in consonance with the growth of consumption of power in this region. The project wise generation vis-à-vis the targets were as follows:-

Sl No Projects Target (MU) Generation (MU) Achievement in %
1 KHEP (275 MW) 900 872 97
2 AGBP (291 MW) 1550 1591 103
3 AGTP (84 MW) 510 564 111
4 DHEP (75 MW) 175 162 93
5 RHEP (405 MW) 1000 975 98
  Total 4135 4164 101

Further it is to be noted that the Backing Down of Generation from the above Power Stations comes to 594 MU which is not attributable to NEEPCO. Considering the Backing Down of generation total generation from the Power Stations of NEEPCO during the year 2003-04 comes to 4758 MU.

IV.PROJECTS UNDER OPERATION:

(a)KOPILI HE PROJECT (275 MW), NORTH CACHAR HILLS ASSAM:

Kopili HEP having Design Energy of 1247 MU generated 872 MU against a generation target of 900 MU.

Under this project, there are three power stations namely 4x50 MW Kopili Power Station, 2x25 MW Khandong Power Station and 1x25 MW KHEP, stage-II

Kopili Power Station (4x50 MW)

During the year 2003-04, Kopili Power Station generated 669 MU against Design Energy of 969.90 MU with Capacity Index of 71.81%. The Machine MU with Capacity Index of 71.81%. The Machine Availability during the year approximately 81.43%.

Khandong Power Station (2x25 MW)

The Unit-I and Unit-II of Khandong Power Station were under shutdown w.e.f. 03-01-2003 to 20-05-2004 in view of the requirement of Bulkhead dismantling and lowering of ferrules from upper expansion chamber to the bottom Surg Shaft which involved dewatering of Khandong tunnel system. This was require for necessary interfacing of existing hydraulic system to the unit of KHEP stage II.

During the year 2003-04, Khandong Power Station generated 203 MU against Design Energy of 277.65 MU with capacity Index of 69.89%. The Machine Availability during the year was approximately 91.11%.

KHEP Stage-II (1x25 MW):

Kopoli H.E. Power Station -2 nd Stage (KHEP Stage-II) with one unit of 25 MW has been commissioned on 31-12-2003. Commercial operation started from 26 th July 2004.

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

The energy generated during the year was 1591 MU, against the targeted generation of 1550 MU, with a PLF of 62.37%. The generation superseded the target set for the year. The Machine Availability during the year was approximately 88.91%.

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

The energy generated during the year was 564 MU against a target of 510 MU and design energy of 504 MU, with a PLF of 76.60%. The generation superseded the target set for the year. It is also noteworthy to mention that AGTP has recorded the highest Machine Availability (97.10%) amongst all the generating stations of NEEPCO.

(d) DOYANG H.E.PROJECT (75 MW), WOKHA, NAGALAND.

Doyang HEP generated 162 MU against a generation target of 175 MU and Design Energy of 227 MU with Capacity Index of 63.00 %. The target could not be achieved due to lack of off-peak demand in the grid. The Machine Availability during the year was approximately 91.68%. It is to be noted that generation has increased about 38% over the previous year.

(e) RANGANADI H..E. PROJECT (405 MW), YAZALI, ARUNACHAL PRADESH:

Ranganadi HEP generated 975 MU against a generation target of 1000 MU and Design Energy of 1509 MU with Capacity Index of 63.96%. The Machine Availability during the year was approximately 62.42%.

All the 3(three) units of Ranganadi HEP were brought under shutdown from 10 th February, 2004 for inspection of the water conductor system..

V. TRADING OF POWER THROUGH PTC:

Generation from NEEPCO's projects could not be achieved upto the design energy due to less demand in the NE Region as well as lack of load growths projected in the 16 th Electrical Power Stations of NEEPCO an agreement was signed with Power Trading Corporation of India Limited on 10 th January, 2003 for sale of regional surplus power and 335.46 MU of Energy has been drawn by PTC from NEEPCO during the year 2003-04.

VI. CAPACITY ADDITION DURING THE YEAR 2003-04:

The proposed capacity addition during the 10 th Plan has been fixed as 365 MW and out of this, Kopili H.E. Power Station � 2 nd Stage (KHEP Stage-II) with one unit of 25 MW has been commissioned on 31-12-2003. With commissioning of KHEP Stage-II (25 MW), NEEPCO's installed capacity has gone upto 1130 MW.

VII. IMPLEMENTATION OF ABT IN NORTH EASTERN REGION:

Availability Based Tariff (ABT), a new commercial mechanism, has been implemented in the North Eastern Region with effect from 1 st November 2003. Implementation of this mechanism has brought a great deal of grid discipline besides opening up opportunities for power trading.

VIII. 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 Cooperation (JBIC) and balance 15% from the Government of India assistance. The cost of project at June'97 price level is Rs.368.72f Crs. (including IDC) and completion cost of the project is Rs.448.19 Crs. at January '97 price level. The CCEA clearance and is scheduled to be commissioned in 2006-07. M/s Electrowatt Engineering Ltd., Zurich, Switzerland was appointed as the Review Consultant for the project in December 1998. The infrastructural works for the project has been completed and for submergence area is in progress. Construction of 132 KV S/C Kolashib-Tuirial transmission line for drawal of construction power is in advance stage of completion and out of 114 nos. of Towers, 102 nos. have already been erected. The work for improvement of approach road from Bilkhawtlir to Saiphai is completed. Work for the other important roads of the project i.e. Saipum to project site, Vairengte-Phainuam-Saiphai and Saiphai to Saipum also are in progress

The following are five contracts under which Project are getting implemented:

Lot-I : Civil works for the Diversion Tunnels, Intake Gate Shaft, Low-level intake, Low-level gate shaft, Diversion outlet structure and Energy dissipation structure

Lot-II : Civil works for the Dam, Spillway and Saddle Dam.

Lot-III : Civil works for the Power House, Tunnel for Power Waterway, Second stage concrete for Power Intake structure and Low-level outlet etc.

Lot-IV : All Hydro-Mechanical works.

Lot-V : All Electro-Mechanical works.

Works against Lot-I has been allotted to M/s Patel Engineering, Mumbai on 28 th September 2001 and works are in progress. Works against Lot-II has been allotted to M/s Patel Engineering, Mumbai on 21 st October, 2002 and excavation in Dam and Spillway are in progress. Excavation and Filling works of the Saddle Dam has been completed. Work order for Lot-III has also been issued to M/s Patel Engg. Mumbai on 3 rd March, 03 and about 40% open excavation of the Power House has been completed till March 2004. Work Order for Lot-IV was issued to M/s Alstom Power, Portugal, S.A.on 23 rd Dec. 2003. However, as certain conditions of the tender were not accepted by the firm, the work order was cancelled and re-tendering is under process. Work order for Lot-V has also been issued to M/s BHEL on 25 th September, 2003. The Design & Engineering and Model testing are completed. Soil resistivity test of Power House is also completed and contractor has started mobilization.

Present Law And Order Problem

All works at project site have totally closed w.e.f. 09/06/04 by the TCCA, demanding payment against crop compensation. Since this is illegal, MOP has directed NEEPCO not to pay any amount as compensation to the claimants. Situation at project site has deteriorated to the extent that all works have come to a stand still, there are continuous security threats to NEEPCO employees camping at Project site, compelling Project staff to evacuate and camp in nearby towns. Matter has been taken up by NEEPCO & MOP to resolve the issue amicably with Govt. of Mizoram. However agitation programme has not been called off so far. Matter is being pursued vigorously with Govt. of Mizoram/MOP, Govt. of India.

Revised Cost Estimate

Assessment of Revised Cost Estimate along with outstanding liabilities, loss etc. on account of stoppage of works since 9 th June'04 is under progress to work out the economic viability of this Project at this stage.

b) KAMENG H.E. PROJECT (4X150 MW),

ARUNACHAL PRADESH

Kameng H.E. Project is located in the West Kameng district of Arunachal Pradesh. This project will consist to two numbers (Bichom & Tenga) dam and one number HRT of 14.50 KM length with two numbers penstock leading to semi underground power house for 4(four) numbers of turbine of 150 MW each having total capacity of 600 MW. This project was techno-economic clearance by CEA in April 1991 for execution by NEEPCO at an estimated cost of Rs.1160,60 Crores including IDC of Rs.186.38 Crores at November 1990 price level. 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. The project has been accorded Environmental Clearance by MOE& F on 29..3.2001.

This project was taken up a model project by the Government of India under their policy of 3-Stage development of new hydro-electric projects. Investment approval for pre-construction and infrastructure development under Stage-2 activities at a cost of Rs.94.54 crores was accorded in January 2002. The construction of infrastructure activities like approach road, colonies, office buildings and survey & investigation have already been completed to the extent of 98% and the project has been cleared in PIB meeting held on 23 rd April 2004, at a cost of Rs.2496.90 Crs. having IDC component of Rs.240.09 Crs. with Debt: Equity ratio of 70.30 and ROE at 14%. The levellised tariff is worked out at Rs.123/Kwh and first year tariff at Rs.1.48/Kwh. The project may get investment decision on any date. The Project has been recommended by Administrative Ministry for investment clearance by the Cabinet which is expected soon. This Project will be completed within 60 months from the date of investment decision and will generate 3592 MU at 90% dependable year. The power will be evacuated through 400 KV. Kameng-Balipara D/C transmission line. This is a mega project and major portion of power found surplus after meeting the requirement of NE Region will be exported to Haryana State through Power Trading Corporation. Purchase agreement has already been signed between ASEB, Assam, Arunachal Pradesh, HVPN Haryana. The project work is divided into 6 major package, which are under tendering/evaluation stage and works shall be awarded to the Contractors for implementation after investment clearance.

(c)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 an estimated cost of Rs.964.22 Crores including IDC of Rs.47.31 Crs. at March 1997 price level. The debt equity ratio is fixed at 70:30 with an estimated completion cost of 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 of 2 nd stage clearance of the project amounting to Rs.48.48 Crs. has been submitted MOP, GOI in April'02 Commissioning schedule of the project has been envisaged 66 months from the date of 3 rd stage CCEA clearance.

All statutory clearance including Forest & Environmental clearance from MOE&F have been received. Pre-construction a activities like development of infrastructural facilities and survey & investigation works are in progress. Construction of all the three major roads of the project i.e. Nogpa to Dam site (16.35 KM), Phullen to Power House site (31.30 KM), Dam site to Power House site (31.30 KM) including one Bailey bridge at dam site and one BUG bridge at Power House site were entrusted to Mizoram PWD and works are in progress.

Government of Mizoram has intimated NEEPCO to hand over this Project to them to prepare the modalities for the same, which is under planning stage by NEEPCO. Meanwhile all the activities have been stopped at site in view of this development.

(d) TRIPURA GAS BASED POWER PROJECT (280 MW),

TRIPURA:

The 280 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 on 30.12.2000 for execution of the project by NEEPCO. The project was initially planned for 500 MW capacity. But subsequent to revision gas availability from 2.00 MMSCUMD to 1.00 MMSCUMD, the project capacity has been reduced to 280 MW (Norminal site rating) ± 15% with a provision of expansion. All the statutory Clearance including MOE&F clearance have been obtained. Techno Economic Clearance (TEC) from CEA has been obtained on 25 th April 03. PIB cleared the project on 7 th May 2004. The completion cost of the project on 7 th May 2004. The completion cost of the project is estimated at Rs.997.02 Crores. The zero date of the project shall be reckoned from the date of CCEA clearance and the project is expected to yield benefits within the Xth Five year plan.

Land: 80.74 Ha (60.09) Ha Forest land + 20.65 Ha Govt.land) required for the Project has been taken into possession. Payment for the same has been released to the State Govt. and Forest Deptt.

Infrastructural Works: Boundary Wall, internal roads and temporary building in progress.

Construction Power: Available at 11 KV from State Govt.

Water Supply: Boring of one number Deep Tube Well at Project site has been completed. Work on another Deep Tube well is being taken up shortly.

Status of Gas Supply Arrangement:

The Ministry of Petroleum & Natural Gas has confirmed availability of 1.00 MMSCUMD of gas for 15 yrs. Draft GSA from GAIL has been received. Some modifications in the terms of payment. Force Majeure conditions and pricing of Gas has been sought from the GAIL. MOP has been requested to take up these issue with the Ministry of Petroleum and Natural Gas. On receipt of confirmation from GAIL, the GSA will be concluded.

Commissioning Schedule:

The Zero Date shall be reckoned from the date of Notice of Award of EPC Contract. The first GTG will be commissioned within 22 months from Zero date and subsequent units at interval of one month. The first STG Will be commissioned within 28 months from zero date and subsequent units at interval of two months.

Evacuation System:

Bilateral Power Trading Agreement between Power Grid & NEEPCO for evacuation of power for this project has been signed. The Project will be connected to New Kopili Sub Station via Badarpur through 220 KV D/C Transmission Line with twin moose conductor. Transmission facility already exists from Kopili to Misa. From Misa onwards evacuation to Eastern Region through the existing 400 KV line will be utilized. For evacuation to the Northern Region, the Tala transmission scheme under construction by Power Grid will be utilized.

Consumers have also been identified in the N.E. Region, and Northern Region from whom comfort letters have been received.

Power Purchase Agreement/Memorandum of Understanding:

PPA with Haryana Vidyut Prasaran Nigam (HVPN) has been signed on 9 th July'04 for drawal of power 80MW from TGBP. MOU with Power Trading Corporation has been signed on 13.04.04 for sale of power from TGBP. ASEB, MSEB, Department of Power Nagaland and Department of Power, Manipur have also expressed their willingness to purchase power from TGBP.

Status of EPC Contract of the Project:

The Bid Documents are issued to the Bidders. Techno-Commercial Bids open on 2 nd August, 2004 & Techno-Commercial evaluation is under process.

Financing Pattern:

As envisaged in the DPR, the Project will be funded in the ratio 70:30, 70% loan to be borrowed by Corporation and 30% being equity by G.O.I.

Funding Arrangement:

MOU for availing financial assistance from PFC to meet the loan component of Tripura Gas Based Power Project has been signed between NEEPCO and PFC on 9 th July 04.

IX) NEW PROJECTS UNDER EXECUTION BY NEEPCO:

(a) TIPAIMUKH H.E. PROJECT (1500 MW), MANIPUR :

Recent Status of the Project:

Tipaimukh H.E. (Multipurpose) Project located in the Churachandpur district of Manipur State, 500m downstream of the confluence of river Tuivai with river Barak. The project was formally taken over by NEEPCO from Brahmaputra Board in July 1999. Hydro meteorological observations for the project are being continued. 1 st stage site clearance from MOE7F has been obtained on 14 th May 2002 and the revised DPR prepared by NEEPCO at a cost of Rs.5163.86 crores at Dec.2002 price level was Techno-Economically Cleared by CEA on 2 nd July 2003. The Pre-PIB held on 13 th August 2003. MOU between Govt. of Manipur and NEEPCO for execution of the project has been signed on 9 th January 2003. For funding of the project, letter of comfort from PFC has been obtained.

  • 1. Status of MOU and NOC from State Governments.
    • MOU with Government of Manipur signed on 9 th January 2003.
    • NOC from the Government of Assam obtained in July 2002.
    • NOC from the Government of Mizoram obtained in August 2001.
  • 2. Status of various clearances
    • 1 st stage site clearance from MOE & F obtained in May 2002.
    • Section 18A of the Electricity (Supply) Act issued in January 2003.
    • Funding of the project: Letter of comfort from PFC obtained.
    • TEC obtained from CEA on 2 nd July 2003.
    • Pre-PIB meeting held on 13 th August 2003. As a consequence, MOP has directed NEEPCO to take up Stage-II activities of the Project.
  • 3. Sale of Power : Matter tied-up with PTC and letter of comfort obtained.
  • 4. Cost of Estimate of Rs.157.00 Crs. for 2 nd Stage activities has been submitted to CEA. Subsequently, in order to take up immediate and urgent Stage-II activities, estimate for certain items of works, amounting to Rs.9.90 Crs was submitted to CEA, which has been cleared by them for an amount of Rs.9.52 Crs. on 02/04/04. MOP has been requested to release the fund at an early date for taking up the works.
  • 5. In a meeting taken by the Secretary (Power) GOI on 15.06.04, it has been directed to reconfirm the project parameters by field study within 6 to 8 months. Accordingly, in consultation with GSI, quantum of drilling and drifting works has been finalized and tenders have been floated for the same.

Status of law & order situation in the project area :

The security problems in and around the project area are very serious. Reportedly there are a large number of various insurgent groups active in the area. Since the project is located on the border of Manipur and Mizoram it is felt that only dedicated central security forces like Assam Rifles, BSF or CRPF or a combination thereof equipped to fight insurgency are essential for providing security to the officers and staff posted for execution of the project.

In terms of the decisions taken by the Ministries of Power, Home Affairs and the Government of Manipur, the security cost was to be included in the project cost on the basis of estimates given by CRPF for raising 4 battalions dedicated to the project over the gestation period. An amount of Rs.280.59 crores has been included in the project cost estimates on account of security aspects.

During a meeting taken by Secretary (Power) on 2 nd December 2002 it has been resolved that the security issues would be decided in consultation with Ministry of Home Affairs and Government of Manipur at the time of obtaining CCE clearance. A Colony(Zilthaw Colony) was constructed by Brahmaputra Board near the project Site in Mizoram Side. This Zilthaw Colony has been burnt down by suspected militants on 15.01.04 and 16.01.04. All the C.G.I. sheeet of buildings and godowns were stolen by miscreants. The above incident has already been intimated to Deputy Commissioner, Aizawl. Police case has been registered vide C/No ¼ dated 18.01.04, under Section 121 (A)/379/4361 I.P.C. So far nobody could be arrested by the police and investigation is going on.

Other costs included in the cost estimate:

A part from the cost of security as mentioned above, the following costs are included in the estimated cost of Rs.5163.86 crores.

  • Cost on Floor Moderation : Rs.288.76 crores.
  • Cost on Diversion of Roads/National Highway:Rs.105.00 crores.

(b) RANGANADI H.E.PROJECT-STAGE-II (130 MW), ARUNACHAL PRADESH.

The project is located 10.00 KM upstream of present Ranganadi Diversion Dam. The project envisages construction of 112 M high concrete gravity Dam with installed capacity of 130 MW. The commercial viability of the project has been established based on Feasibility Report submitting by NEEPCO and CEA has accorded clearance for stage-II activities. Stage-I activities such as Preliminary investigation, Commencement of Environmental studies, Preparation of Feasibility Report etc. completed. Cost estimate for stage-II activities amounting to Rs.15.37 Crs. has been cleared by CEA in Feb'2003 and NEEPCO has submitted the proposal to Ministry of Power. The stage-I & stage-II site clearance from MOE&F has been received in Aug'03. Detail Topographical survey, geological & hydro-meteorological investigation, Environmental study, land acquisition, Infrastructure development works etc. are in progress.

(c) LOWER KOPILI H.E. PROJECT (150MW), ASSAM

The proposed lower Kopili H.E.Project is located in the N.C.Hills district of Assam. The project envisages construction of 71.35 M high concrete gravity Dam across the river Kopili in the down stream of the Kopili Power Station. The impounded water is proposed to be carried through 6.8 M dia and 3.64 KM long tunnel to a semi under ground power house with an installed capacity of 150 MW. The Feasibility Report was submitted to CEA, GOI during Oct.'2002. Based on this, CEA established the commercial viability of the project during Feb'2003. Cost estimate as submitted by NEEPCO to CEA for stage-II activities amounting to Rs.15.11 Crs. has been cleared by CEA on 30 th Sept'03. The 1 st stage forest clearance has been obtained from the State Forest Deptt. on 28 th Oct'03.

The MOU with Govt. of Assam for taking up the execution of Lower Kopili HEP, specially for S&I has not been signed till to-day and also funds are not being provided by Govt. of India to meet the requirement and other expenditures being incurred every month against this site. So, it is decided that no work should be carried out at this site till MOU is signed by Govt. of Assam for execution of this project.

(d) DIKRONG H.E. PROJECT (110 MW) ARUNACHAL PRADESH.

This is a run of the river scheme which envisages utilization of discharge of Dikrong River together with additional tail water discharge of 60 cumecs from Power House of RHEP, stage-I. The project comprises of a Dam on river Dikrong at 6 Km down stream of Hoz Power House and one 2.50 Km long tunnel with Power House on left bank of river Dikrong at a distance of 12 Km from Doimukh. Cost estimate for stage-I activities of the project amounting to Rs.203 Crs. has been approved by CEA in Nov. 2002. Observation of hydro-meteorological data, discharge data and silt data are continuing. Pre-construction activities such as preliminary investigation, Environmental studies etc. are in progress. Feasibility Report of the project has been submitted to CEA on 22 nd March'04. Commercial viability of the project has already been accorded by CEA and cost estimate for 2 nd stage activities amounting to Rs.6.84 Crs. has also been approved by CEA.

X. SURVEY AND INVESTIGATION SCHEMES:

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

Sl No Name of Project State Capacity (MW)
1 Lower Kopili HEP Assam 150
2 RHEP Stage-II Arunachal Pradesh 130
3 Dikrong HEP Arunachal Pradesh 110
4 Papumpam HEP Arunachal Pradesh 60
5 Hirit HEP Arunachal Pradesh 50
6 Bhareli Lift Dam-I Arunachal Pradesh 1120
7 Bhareli Lift Dam-II Arunachal Pradesh 600
8 Kameng Dam
H.E. Project
Arunachal Pradesh 600
9 Tenga H.E. Project Arunachal Pradesh 600
10 Papu H.E. Project Arunachal Pradesh 600
11 Talong H.E. Project Arunachal Pradesh 300
12 Kapak Leyak
.E. Project
Arunachal Pradesh 160

XI. PROJECTS UNDER PRE-FEASIBILITY STUDIES:

The status of submission of Pre-feasibility reports to CEA under the 50,000 MW Hydro-Electric initiative launched by the Hon'ble Prime Minister of India are as below:

Sl No Name of Scheme State Installed Capacity (MW) Remarks
1 Bharelli Lift Dam-II Assam 150 Submitted on 30.09.03
2 Bharelli Lift Dam-I Arunachal Pradesh 1120  
3 Kapak Leyak Arunachal Pradesh 160  
4 Badao Arunachal Pradesh 120 Submitted on 27.02.04
5 Pakke Arunachal Pradesh 110 Submitted on 28.11.03
6 Seba Arunachal Pradesh 120  
7 Chanda Arunachal Pradesh 110 Submitted on 25.02.04
8 Kimi Arunachal Pradesh 535 Not feasible.
The replacement of the project will be provided by CEA
9 Kameng Dam HEP Arunachal Pradesh 600  
10 Bichom-II Arunachal Pradesh 205  
11 Papu Arunachal Pradesh 200  
12 Talong Arunachal Pradesh 300  
13 Utung Arunachal Pradesh 110 Submitted on 30.01.04
14 Tenga Arunachal Pradesh 600  
15 Bichom Storage-I Arunachal Pradesh 190  
16 Yangnyu Storage Nagaland 135  
17 Tizu Nagaland 365  
18 Tizu Nagaland 470  
    Total 6010  

PROJECT UNDER PREPARATION OF DPR IN UTTARANCHAL

Sl No Name of Scheme Capacity (MW)
1 Chhunger-Chal HEP 240
2 Bokang Baling HEP 336
3 Dedoi HEP 60
4 Jelam Tamak HEP 60
5 Maleri Jelam HEP 55

XIII. ORGANISATION

STRENGTH OF EMPLOYEES.

The total number of employees in the Corporation as on 31.03.2004 was 3238, which includes 3227 regular employees and 11 work charged employees. A total of 30 employees (21 in group-A-, 2 in group -B- and 7 in group -C-) were recruited during the year. Out of 30 employees so recruited 15 were through direct recruitment, 4 through deputation, 7 departmental candiates and 4 were recruited through remusteration. As regard position in respect of persons with disability is concerned, as per directives of the Govt. of India, 3% reserved in identified jobs has been made for persons with disabilities jobs has been made for persons with disabilities for group -A-, -C- and -D-. Accordingly, the position in respect of 41 physically handicapped employees in this Corporation is as under as on 31.03.2004:

    VH HH OH
(i) Group A - - 01
(ii) Group C 06 05 07
(iii) Group D 04 05 13

(b) TRAINING AND DEVELOPMENT:

An integral part of NEEPCO's employees centered policies is its thrust on their knowledge up-gradation and development. With this end in view, the HRD Institute of the Corporation organized Seminars, Workshops and Training Programmes on various work related topics with faculty assistance drawn from within and outside the organization covering 672 employees of different levels during the year under report.

The Corporation, while recognizing the benefits and advantages of in-house training programme, 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 98 employees were deputed to attend Conferences, Seminars, Workshops and Training Programmes conducted by different Institutions of repute within the country and aboard during the year.

In order to disseminate information on professional matters and to create general awareness amongst executives, the HRD Department of the Corporation continued to publish the fortnightly in-house bulletin Board maintained by the department continued to evoke considerable interest amongst employees as in the past. The HRDI Library was further equipped with new books and periodicals during the aforesaid period. The Corporation achieved excellent rating for endeavors made in the area of HRD as per performance parameters incorporated in the MOU for the year 2003-2004 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 acrimonious industrial relations.

Regular meetings were convened between the Management and representatives of Trade Unions and Association and various Issues Including agenda points submitted by the Unions and Associations were discussed across the table and resolved amicably with the representatives of the Trade Unions and Association.

Active persuasion with concerned authorities was continued by the Management for implementation of revised pay scale in respect of Executives, Supervisors and Workmen due w.e.f. 01.01.1997, in view of the hardships faced by the employees. Meanwhile provisional scales has since been implemented to mitigate the hardship faced by the employees.

(d) WELFARE ACTIVITIES:

The following welfare activities have been undertaken by the Corporation during the year 2003-04.

1.One consultant physician is engaged on retainershlp basis for the employees posted at Melaghar, Tripura Gas Based Power Project.

2.NEEPCO Raising Day was celebrated in the Corporation on 2 nd April 2004. At Corporate Office, the CMD graced the function. To mark the occasion employees were presented with memento. The NEEPCO Women Welfare Association organized a mini fete on the occasion.

3. The NEEPCO Women Welfare Association presented Cash Prize and certificate to meritorious students of NEEPCO employees.

(e) SPORT ACTIVITIES:

During the year NEEPCO had organized Coaching Camps for Badminton, Table Tennis and cricket at Shillong in order to enhance performance level of the players for participating in the Inter-CPSU events. Professional Coaches were also hired for the purpose. During the period NEEPCO teams participated in various Inter-CPSU tournaments under the aegis of PSCB and performed creditably.

  • In Badminton, NEEPCO bagged the Individual Single Runners-up Title in the Inter Power Sector Tournament organized by Power Grid at Hyderabad.
  • NEEPCO Table Tennis teams participated in the All India Inter Power Sector tournament organized by NTPC at Korba and had shown encouraging performance
  • In Cricket, NEEPCO bagged the Runners-up Title in the Inter Power Sector tournament organized by BBMB at Nangal, Punjab.
  • NEEPCO had participated also in the Inter CPSU Cultural Meet at New Delhi and bagged consolation prize.

(f) SCHOOLS:

The Corporation provides schooling facility at Project site as a Welfare measure for children and wards of employees posted at Project sites where no schooling facility is available nearby. In addition to the children and wards of NEEPCO employees, a good number of children of the local public are also admitted in these Schools, subject to availability of seat. The Vivekananda Kendra Shiksha Prasar Vibhag is the nodal agency for managing the Corporation Schools. These are English Medium Schools of good academic standard affiliated to Central Board of Secondary Education. The following are the Corporation Schools as on now:

  • Vivekananda Kandra Vidyalaya. KHEP Umrongso upto Class-XII having both Science & Art stream.
  • Vivekananda Kandra Vidyalaya, RHEP, Yazali upto Class-X and proposed to upgrade the school upto Class-XII having both Arts & Science stream.
  • Vivekananda Kendra Vidyalaya, DHEP, Doyang upto Class-X.
  • Vivekenanda Kendra Vidyalaya, AGBP, Bokuloni upto Class-VIII.
  • Tie up with Vivekananda Vidyalaya, Nirjuli (Upto Class-X) for the children and wards of NEEPCO employees at Doimukh, RHEP

In addition, the following K.G. Schools are also provided.

  • K.G. School at Doimukh.
  • K.G. School at Agartala Gas Turbine Power Plant, Agartala
  • K.G. School at TrHEP site. The school shall be upgraded considering educational needs at site.

(g) 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 Sections 3 (3) of the Official Language Act in bilingual. During the year Hindi Training as well as Hindi Typing training was imparted to the employees posted at Corporate Office, Shillong at Office premises. Employees posted at Projects were nominated for Hindi training through Correspondence Courses under Central Hindi Training Institute, New Delhi. Hindi facilitate the employees for doing their official work in Hindi. Training materials were provided to the employees during the Workshop. Offices were inspected by the Corporate Office 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. The website of the Corporation also made available in Hindi. Hindi Section also started an in-house Journal-NEEPCO NEWS' where valuable information relating to use of Hindi in official works were provided. Key Words in Hindi with English equivalent were displayed everyday on the black board under the program - Today's Word - in order to enrich the vocabulary of Hindi words of the employees.

Rajbhasha (Hindi) Pakhwara was observed and Hindi Divas was celebrated in the Corporate Office as well as in the projects and other offices of the Corporation during the year to create a conducive atmospheres 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. An exhibition was also organized where the achievements made on the use of Official language Hindi in the Corporation were in displayed.

Rastriya Hindi Academy, Rupambara, Kolkata awarded Millennium Rastriya Rajbhasha Shield-Samman to the Corporation for progressive use of Official language Hindi and its implementation.

Rajbhasha (Hindi) Pustakalaya has been functioning at Corporate Office, Shillong, where Dictionaries, Glossaries and other reference books are available for the use of the employees. Hindi News Papers and periodicals are also available in the Pustakalaya. Since installation of Hindi Software in Corporate Office as well in other offices, a remarkable progress has been made in the use of Hindi in office works.

(h) CERTIFICATE UNDER ISO 9001:2000

The Corporate Office of the Corporation has received certification under ISO 9001:2000 in September 2003 in view of its high standard in terms of quality and performance. NEEPCO also ensures continual improvement of its functioning and has enbarked upon a programme for achieving ISO 14001 standards for its Environment Management Systems and ISO 18001 for Occupational Health and Safety Standard.

XIV. AUDITOR'S REPORT:

M/s A.Bhattacharjee & Co., Chattered Accountants, Guwahati was appointed as Statutory Aauditor's for the year 2003-04 also. The report of the Statutory Auditors alongwith the reply of the Management thereto, comments of the Comptroller & Auditor General of India on the Accounts in terms of Sec 619(4) of the Companies Act, 1956 alongwith the reply of the Management thereto and the Review of Accounts by the Comptroller and Auditor General of India for the year are furnished in Annexure-IV.

XV. DIRECTORS' RESPONSIBILITY STATEMENT

The Directors certify the followings:-

  • In the preparation of the annual accounts, the mandatory accounting standards have been followed.
  • 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 the period.
  • 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 have been maintained.
  • Annual accounts have been prepared on a going concern basis.

XVI. VIGILANCE ACTIVITIES:

In keeping with directive and guidelines of the Central Vigilance Commission, action plan on anti-corruption and vigilance measures have been taken. Complaining received are regularly monitored and where prima facie evidence was found investigation has been carried out. Also, emphasis was given to the aspect of preventive vigilance.

XVII. DIRECTORS

Shri N.N.Singh, who was holding the post of Directors (Personnel) of the Corporation, retired on attaining age of superannuation during the period since the last Annual General Meeting. Also, Shri M.K.Parida, Shri P.K.Choudhary, Shri B.K.Agarwal, Shri Ajai Srivastava, Late B.Vikram and Shri Sanjay Chandha ceased to be Directors places on record its deep appreciation for the valuable services rendered by these Directors. Shri M.R.Ghosh assumed office of the Director (Finance) of this Corporation during the period since Shri S.K.Rakesh, Shri S.K.Srivastava, Shri Sanjay Chadda, Shri G.K.Pharlia, Shri Tumke Bagra were appointed as Directors of the Corporation during this period.

XVIII. 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 Director's Report regarding Conservation of Energy/Technology Absorption and Foreign Exchange earnings and outgo during the financial year 2003-04 is enclosed in Annexure-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 & maintenance stage is strictly adhered to. The implementation of Compensatory Aforestation 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 labourers at subsidized rates. For Gas Based Power Project both combined Cycle and Open Cycle steam from de-mineralized water or D/M water injection is done in the Gas Turbine for NOX control. Further, height of chimney is also suitably designed for this purpose. Besides this, a green belt is created around the Project area by suitable plantation.

XIX. ACKNOWLEDGEMENT

The Directors are grateful to the various Ministries and Departments 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 Enterprise, North Eastern Council,, Central Electricity Authority, Central Water Commission, Central Soil and Material Research Station, Geological Survey of India, Survey of India and North Eastern Regional Electricity Board for their continued cooperation and assistance.

The Directors express their sincere gratitude to the State Government of Arunachal Pradesh, Assam, Manipur, Meghalaya, Mizoram, Nagaland and Tripura for the cooperation 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 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

(S.C.Sharma)

Chairman & Managing Director