2002 - 2003



It gives me immense pleasure to welcome you all, on behalf of the Board of Directors, to the 27 th Annual General Meeting of the North Eastern Electric Power Corporation Ltd. The Directors' Report and the Audited Statement of Accounts for the year ended, 31 st March, 2003 and also the Auditors' Report thereon, having been in your possession for some time now, I seek your permission to take them as read.

The year gone by was a rather difficult one and for the first time since inception, the Company suffered a loss to the tune of Rs.408.15 crs., out of which, Rs.254.10 crs. was due to waiver of surcharge on outstanding dues of SEBs as one time settlement.. The Company has also suffered an operating loss of Rs.184.03 crs., which is a cause of great anxiety and distress. The major part of this loss was due to sub-optimal operation of Ranganadi HEP & Doyang HEP. The Ranganadi HEP remained under complete shutdown from end of September 2002 to end of January 2003 as some design defects & teething problems surfaced. After rectification, only one unit could be resynchronized on 31.01.2003. Recurring Winding failure in GT-II of Doyang HEP put it out of operation throughout the year. Moreover, import of power from the Eastern Grid by the constituent States of NER has forced the power stations of NEEPCO to operate much below capacity, despite high machine availability. This has resulted in deteriorating financial health of the Company; the worst affected being the Assam Gas Based Power Station at Kathalguri. To add to the misery, procedural hindrances in export of surplus power to outside NER has forced Power Stations of NEEPCO to remain under utilised. However, NEEPCO is all set to turn around to a profit making Company from the financial year of 2003-04 and the management has taken up all necessary steps in this regard. To minimize the interest burden, NEEPCO has swapped its earlier high interest bearing loans to low interest loans.

The overall performance of the Company for the year has been rated as by the MOU Committee of the Government of India. During the year, the company generated 2993.25 MU of energy against last year's generation of 2762.53 MU. NEEPCO has so far remained the most dependable power utility in meeting the power needs of the NE States. Though the generation has increased, net sales decreased from Rs.453.23 crs. to Rs.412.29 crs. This was largely because of high demand for power from the Kopili Power Station having a lower selling price resulting in low demand for the thermal plants.

We are evolving from being primarily a power project construction company to a power selling company. Accordingly, we have changed our perceptions and restructured our commercial wing to meet up the challenges. In an effort to expand its horizon beyond the regional limitation of North East, continuous effort are being made to sell surplus power to the power deficient Regions. I am pleased to put on your record that favorable responses have been received from various States as well as from power traders in this respect.

You will be glad to know that the works in respect of projects under execution have been progressing satisfactorily and poised for timely completion. This progress could be achieved inspite of hurdles of infrastructural bottleneck and overall security concerns prevailing in the region. This truly reflects the commitment of its dedicated work force. It is needless to mention that authority should be delegated to those who are closest to the action and with this view the Delegation of Power has been modified suitably for swift decisions. Emphasis has been made to reduce rule-oriented system and provide the much-needed flexibility of operation. It is often argued that in large Organisations, work is repetitive, boring and alienating. The crux of this problem lies in fewer interactions between the management and employees. Sincere efforts are being made in this direction for sharing of information and ideas for harmonious relation.

We believe that for sustained growth as well as for regional development, NEEPCO needs to harness the vast hydro & thermal potential of North East. With this in mind the Company has taken up 1500 MW Tipaimukh Multipurpose HEP and 280 MW Tripura Gas Based Power Project. The Tipaimukh (M) HEP has been planned to be executed on turnkey basis to reduce completion time. Tripura Gas Based Power Project is a fast track project and is expected to yield benefits within the Xth Five year plan. A major thrust has been given on taking up hydro projects keeping in view the ambitious 50,000 MW initiative launched by the Hon'ble Prime Minister against which NEEPCO has been entrusted by CEA with the preparation of pre-feasibility reports of 18 projects. With this, NEEPCO enters into a new era of offering its expertise and experience in the field of consultancy to other Organisations.

With a view to achieve higher standards in terms of quality and performance and for ensuring continual improvement, your Company has embarked on a programme to implement the ISO 9001:2000 standards in a phase manner.

For any Organisation, human resource is the prime resource and continuous endeavor has been made in a planned way to develop this vital work force. I am confident of a bright future of the Company in view of the indomitable spirit of its dedicated work force towards achieving the corporate goal.

Before I conclude, on behalf of myself and all of you, I would like to put on record the deep sense of gratitude to all the Government Agencies, employees of the Company and all other Agencies associated with us, without whose active support it would not have been possible for the Company to perform and achieve its goal and maintain its winning edge.

Thank you,


Chairman and Managing Director


To The Members,

Your Directors have pleasure in presenting the 27 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 CAG for the year ended 31 st March 2003.


During the year NEEPCO incurred a net loss of Rs.408.15 crores after Prior Period Adjustment of Extra Ordinary items(waiver of surcharge of Rs.254.10 crores). There was an operating loss of Rs.184.03 crores during the year, the main reason being under utilisation of capacity of RHEP & DHEP due to some unavoidable reason and reduction in demand due to import power by some of the NER States.

Comparison of the financial figures of the current year vis-à-vis that of the previous year is given below.

(Rs. in Crores)

Particulars Current Year Previous Year
Net Sales 412.29 453.23
Other Income 83.84 161.28
Operating Profit(Loss) -184.03 61.62
Add: Extra Ordinary Items -254.10 --
Add: Prior Period Adjustment 29.98 -4.06
Less: Provision for Taxation -- 4.71
Net Profit for the year -408.15 52.85

After adjusting above loss against available free reserve to the tune of Rs.349.75 crores, remaining loss of Rs.58.40 crores has been reflected in the asset side of the Balance Sheet.


(a) Capital Structure:

The Authorised Capital of the Corporation is Rs.2500.00 crores at present. The Shareholders in the Extra-Ordinary General Meeting held on 18.08.2003 has approved the enhancement of the same to Rs.5000.00 crores.. Presidential approval of the same is awaited. The Paid up Capital including amount received against share capital pending allotment was Rs.1932.01 crores (previous year Rs.1918.12 crores).

(b) Borrowings:

The borrowing of the corporation as on 31 st March, 2003 was Rs.2935.26 crores as against Rs.2590.58 crores in the previous year. With the requisite approval of the Board and Shareholders, the Corporation had during the financial year 2003-2003 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 10.5% Tax Free Bonds to the tune of Rs.2.50 crores along with interest thereon and Govt. of India loan to the tune of Rs.538.95 crores. The Corporation is regularly servicing its loan from L.I.C. Deutshe Bank, Power Finance Corporation and Bonds.


The Net Worth of the Corporation excluding committed reserve as on 31 st March 2003 was Rs. 1863.27 crores (previous year Rs.2257.06 crores).


The Corporation has started the work of preparing Accounts Manual by in-house exercise. During the year MATFIN has been successfully implemented in AGBPP.


As per the Draft Cost Accounting Record Rules, the Corporation has installed a Costing system by in-house exercise and cost sheets are being prepared regularly. Two cost audit firms have been appointed as Cost Auditors to carry out the Cost Audit (Voluntary) for the financial year 2202-03. The audit is in progress.


(a) Generation:

The generation during the year 2002-2003 was 2993.25 MU against MOU target of 3875 MU. The increase in generation over previous year is 8.3%. The project wise generation vis-à-vis the target were as follows:

Sl. No. Projects Target (MU) Generation (MU) Achievement in %
1 KHEP (250 MW) 900 110.17 123.36
2 AGBPP (291 MW) 1425 1010.95 70.87
3 AGTPP (84 MW) 575 565.06 98.27
4 DHEP (75 MW) 175 117.58 67.18
  RHEP(405 MW) 800 189.49 23.64


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

Kopili HEP having Design Energy of 1247.550 MU generated 1110.17 MU against a generation target of 900 MU which is 123.36% of the target.

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

(i) Kopili Power Stations (4x50 MW)

During the year 2002-2003 all the units of Kopili Power Stations were available for generation and its generated 860.84 MU against Design Energy of 969.90 MU.

(ii) Khandong Power Station (2x25 MW)

Khandong Power Station was under shutdown w.e.f. 03.01.2003 to 31.03.2003 in view of the requirement of Bulkhead dismantling and lowering of ferrules from upper expansion chamber to the bottom Surge Shaft requiring dewatering of Khandong Tunnel system, for necessary interfacing of existing hydraulic system to the unit of KHEP stage-II.

During the year 2002-03, Khandong Power Station generated 249.33 MU against Design Energy of 277.65 MU.

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

Though the machine availability during the year was 80%, due to lack of demand the energy generated during the year was 1010.95 MU with a PLF of 39.66%, against the target generation of 1425 MU.

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

The energy generated during the year was 565.06 MU against a target of 575 MU and design energy of 504 MU, with a PLF of 76.79%. It is noteworthy to mention that AGTPP has recorded the highest Machine Availability (98.665) amongst all the generating stations of NEEPCO.

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

Doyang HEP generated 117.85 MU against a generation target of 175 MU and Design Energy of 227 MU. This was due to lack of off peak demand in the grid. The Machine Availability during the year was approximately 59.55%. The availability of DHEP was less due to repair of GT#2.

(e) Ranganadi H.E.Project (405 MW)m Yazali Arunachal Pradesh:

Ranganadi HEP generated 189.49 MU against a generation target of 800 MU and Design Energy of 1874 MU. The Machine Availability during the year was approximately 44.93%.

The 3(three) units of Ranganadi HEP were brought under shutdown in the month of September, 2002 due to high level of vibration and failure of Holding down/Foundation Bolts of Unit-II. Necessary action has already been taken for early restoration of the units. Unit-III has been resynchronised in January, 2003 and has been generating as per demand in the grid.

Trading of Power through PTC :

Since NEEPCO has been experiencing underutilization of it's Power Stations, NEEPCO has entered into an agreement with Power Trading Corporation of India Limited for sale of surplus power. This agreement has been signed on 10 th January,2003.


(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 (JPIC) and balance 15% from the Government of India assistance. The project was accorded investment approval in July, 1998 at a total cost of Rs.368.72f crores including IDC with completion period of 8 (eight years) from the date of CCEA clearance. M/s Electrowatt appointed as Review Consultant for the project in December, 1998. Most of the infrastructural works have been completed and balance are in the final stage of completion. Land for the project has been acquired. Construction of 132 KV S/C Kolashib-Turial transmission line for drawal of construction power is under execution and expected to be completed soon. One 625 KVA DG set has been commissioned at site and another two similar sets shall be commissioned soon. Construction of approach road from Saipum to project site is in progress. Work for the other important roads of the project i.e Vairengte to Saiphai, Bilkhawtlir to Saiphai and Saiphai to Saipum are in progress. Works of temporary residential and non-residential buildings and permanent non residential building are also going on and expected to be completed soon.

This project is being executed under five main contract packages:

  • Lot-I Civil work 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 alloted to M/s Patel Engineering, Mumbai on 28 th Seeptember, 2001 and works are in progress. Works against Lot-II has been alloted to M/s Patel Engineering, Mumbai on 21 st October, 2002 and excavation in Dam and Spillway are in progress. Work order for Lot-III has also been issueds to M/s Patel Engineering, Mumbai in March, 03. Work order for Lot-IV could not be issued as the matter is subjudice. Work order for Lot-V has also been issued to M/s BHEL, on 26 th September, 2002 and the contractor has started mobilisation.

(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.

The entire work of the project has been divided into two nos. of Civil Packages and one no of 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 iof 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 orders for Package-I & II had already been placed on M/s GSJ Envo Ltd. on 1.10.99 and on M/sP.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. Execution of the works under these packages is under advance stage of completion, detailed as below:

Status of work up to 31 st March 2003.

1. Under Package-I

  • a) Excavation Works : Power House & Tail Pool Completed , Water Conductor System & Anchor Block Completed, Tail Race System & Cut and Cover Completed.
  • b) Tunnel Boring Works: Water Conductor System Completed, Tail Race Tunnel Completed.
  • c)Concreting Works: Head Race Tunnel & Penstock 91.97%, Tail Race Tunnel- 98.50%, Anchor- 53.33%, Tail Race System and Cut & Cover- 78.62%.
  • d)Permanent Steel Supports: Head Race Tunnel & Penstock Completed, Tail Race Tunnel Completed.
  • e) Steel Reinforcement: Anchor Block & Portal Area 54.00%, Tail Race System & Cut & Cover 90.67%.

2. Under Package-II

i. Fabrication:

  • a) Fabrication of Power House Steel Structure 99.00%
  • b) Fabrication of Steel Liner 97.10%
  • c) Fabrication of Diversion Tunnel Gate Completed.

ii. Erection:

  • a) Erection of Power House Steel Structure 99.00%
  • b) Erection of Steel Liner 94.04%
  • c) Erection of Diversion Tunnel Gate Nil

iii. Concreting (M20) : 93.04%

3. Under Package-III (Electrical Works)

1. Manufacture, Supply, Erection and Commissioning of Turbine Generator Sets (1 x 25 MW): 99% of materials received at site. Erection in progress.

2. Manufacture, Supply, Erection and Commissioning of EOT Crane (100/25 MT) : Supply, Erection and Commissioning completed.

3. Erection, Testing, Trial Run and Commissioning of 1x25MW KHEP Stage-II: in progress.

4. Others: Order for supply and Erection of Fire Fighting, PH

Illumination, Air conditioning & Ventilation system already issued. Commissioning of the Project is scheduled within the year 2003.

(c) Kameng H.E. Project (600 MW), Arunachal Pradesh

Kameng H.E. 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 ratio of 50:50 to Rs.2264.10 crores at November, 1999 price level including IDC which has been approved by CEA on 6 th April 2000. 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. Environment Clearance to the Project has been accorded by MOEF on 29.3.2001.

2 nd stage CCEA clearance of the project has been accorded on 11.01.2002 at an approved cost of Rs.94.54 crores for the development of infrastructural activities.

Preliminary and infrastructural works of the project are being carried out. Accommodation for staff, works for construction investigation are continuing and are in advance stage of completion. Topographical Survey including fixing of Bench Mark at difference locations of the Project area has been completed. Contour Survey at different work sites is in progress and in Bichom Dam site area completed and drilling and drifting at other locations of the project are in progress.

PGCIL has started the activities for Construction of Balipara-Khupi-Kimi 132 KV transmission line.

BRTF, being the execution agency for major project roads, has completed formation cutting of Khguppi-Tenga roads (17.27 KM) for length of 14.80 Km, surfacing 11.825 Km and hard shoulder 7.976 Km. Formation cutting of Khuppi-Kimi Power House road (28.140 Km) has been completed up to a length of 26.50 Km, surfacing 17.225 Km, hard shoulder 6.80 Km and black topping 1.90 Km. Reconnaissance survey for construction of road from Pinjoli to Kimi Power House (25 Km) and Tenga Dam to Bichom (34 Km) has been completed.

Construction works for hostel type semi-permanent buildings at Khupi (2 Nos.) and Bichom (3 Nos.) are in progress.


(a) Tuivai H.E. Project (3 x 70 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 Febuary 1999 at 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. A Memorandum if 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 2 nd stage clearance of the project amounting to Rs.48.48 crores has been submitted to MOP, Govt.of India in April, 2002. Commissioning schedule of the project has been envisaged 66 months from the date of 3 rd stage CCEA clearance.

All statutory clearances including Forest and Environmental Clearance from MOE&F has been received. Pre-construction activities like development of infrastructural facilities and survey and investigation works are in progress. Construction of all the three major roads of the Project i.e. Ngopa to Dam site (16.35 Km), Phullen to PH site (31.30 Km), Dam site to PH site (31.30 Km) including one Bailey bridge at Dam site and one B.U.G. Bridge at PH site were entrusted to Mizoram PWD and works are in progress.

This project could not get momentum for no-tie up of better financial package and has been economically non-viable due to its high generation cost. The project is kept in abeyance till soft loan is arranged.

(b) 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 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. The project was subsequent to revision in gas availability from 2.00 MMSCUMD to 1.00 MMSCUMD, the project capacity has been reduced to 28- MW (Nominal site rating) ± 15% with a provision of expansion. All the statutory Clearances have been obtained for according Techno Economic Clearance (TEC) by CEA. The completion cost of the project is estimated at Rs.971.02 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. This project is posed under JBIC funding to make it economically viable.

(c) Tipaimukh H.E. Project (1500 MW), Manipur:

Tipaimikh H.E. (Multipurpose) Project is located in the Churachandpur district of Manipur State, 500 N downstream of the confluence of river Tuivai with river Barak. The project was formally taken over by NEEPCO from Bramaputra Board in July,1999. A DPR was prepared by NEEPCO in Dec.2000 and submitted to CEA and Govt. of Manipur. Hydro meteorological observations are in continued. 1 st stage site clearance from MOE7F has been obtained on 14 th May, 2002 and Techno-Economic Appraisal conveyed by CEA on 20 th Jan, 2003. NEEPCO has submitted the application form for diversion of forest land to the Forest department, Govt. of Manipur and Mizoram on 3 rd April, 2003 for obtaining Forest clearance under Forest (Conservation) Act, 1980 from MOE&F. M/s Agricultural Finance Corporation Ltd., New Delhi has been entrusted by NEEPCO for carrying out Comprehensive Environmental Studies (EIA, EMP, R&R Plan) of the project on 14 th Feb, 2003 for obtaining Environmental clearance from MOE&F. Notification under Section 18(A) of Electricity (Supply) Act, 1948 has been published in the State Gazette of Manipur and Mizoram on 20 th Jan., 2003 and 10 th March, 2003 respectively. The pre-PIB held on 17 th Feb., 2003. Tying of fund is yet to be done. MOU between Govt., of Manipur and NEEPCO Ltd. for execution of the project has been signed on 9 th January, 2003. Total project cost is envisaged at Rs.5163.86 crores at Dec., 2002 price level.

(d) 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 installed capacity of 130 MW. The commercial viability of the project has been established based on Feasibility Report submitted by NEEPCO and CEA has accorded clearance 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.1536.70 lakhs has been cleared by CEA in Feb., 2003. Detail Topographical survey, geological & hydro-meteorological investigation, Environmental study, land acquisition, Infrastructure development works etc. are in progress.

(e) Lower Kopili H.E. Project (150 MW), Assam:

The proposed lower Kopili H.E. Project is located in the N.C. Hills District of Assam. The High 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. Investigations and all Hydro meteorological observations are continuing.


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

  • a) Dikrong H.E.Project (100 MW), Arunachal Pradesh.
  • b) Papumpam H.E.Project (60 MW), Arunachal Pradesh
  • c) Hirit H.E.Project (50 MW), Arunachal Pradesh.
  • d) Bhareli Lift Dam-II H.E.Project (330 MW), Arunachal Pradesh
  • e) Kameng Dam H.E.Project (375 MW), Arunachal Pradesh.



S.No Name of Schemes State River Basin Installed Capacity (MW)
1 Bhareli Lift- Dam-II Arunachal Pradesh Kameng 330
2 Bhareli Lift- Dam Arunachal Pradesh Kameng 240
3 Kapak Leyak Arunachal Pradesh Kameng 195
4 Badao Arunachal Pradesh Kameng 120
5 Pakke Arunachal Pradesh Kameng 120
6   Arunachal Pradesh Kameng 105
7 Chanda Arunachal Pradesh Kameng 110
8 Kimi Arunachal Pradesh Kameng 535
9 Kameng Arunachal Pradesh Kameng 1100
10 Bichom-II Arunachal Pradesh Kameng 205
11 Papu Arunachal Pradesh Kameng 160
12 Talong Arunachal Pradesh Kameng 150
13 Utung Arunachal Pradesh Kameng 110
14 Tenga Arunachal Pradesh Kameng 275
15 Bichom Storage-I Arunachal Pradesh Kameng 190
16 Yangnyu Storage Nagaland U.Brahmaputra 135
17 Tizu Nagaland Barak & Other 365
18 Dikhu Dam Nagaland U.Brahmaputra 470
      Total 4915

Feasibility Report for 6(six) of the above Projects are to be submitted to CEA by the end of september'2003.


(A) Strength of Employees:

The total number of employees in the Corporation as on 31.03.2003 was 3275 which includes 3264 regular employees and 11 work-charge employees. A total of 2 General category of employees were recruited during the year.

(B) Training and Development:

An integral part of NEEPCO's employee 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 354 employees of different levels during the year under report.

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 to attend Conference, Seminars, Workshop and Institutions of repute within the country and abroad 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 titled HRD Update regularly. The HRD Bulletin Board maintained by the department continued to evoke considerable interest amongst employees as in the past. The HIRDI 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 2002-2003 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 the Trade Unions and Associations 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 was continued by the Management for implementation of revised pay scales in respect of Executives, Supervisors and Workman due with effect from 01.01.1997, in view of the hardship faced by the employees.

(D) Welfare Activities :

The following major welfare activities have been undertaken by the Corporation during the year 2002-2003.

(i) 2(two) Nos. Hospital namely (1) Mohinder Hospital at New Delhi and (2) Woodland Hospital at Shillong have been recognized and added in the list of approved hospitals of the Corporation for treatment of employees and their dependent family members.

(ii) A contract was awarded in June, 2003 to a new contractor for running an Industrial Canteen at Corporate Office for a period one year in the interest and benefit of the employees.

(iii) Sanction for Rs.1,77,790/- (Rupees one lakh seventy seven thousand seven hundred ninety) only was conveyed for procurement of hospital items and purchase of medicines/life saving drugs etc. for treatment of employees posted at Agartala (AGBPP) and their dependent family members.

(iv) Sports activities :

(a) The Corporation contributed Rs.10,000/- (Rupees ten thousand) only as a gesture of goodwill to the District Physical Culture Association and the people of N.C. Hills district, Haflong on the occasions of its 6 th All Assam international Bench Press Championship 2003 on the light of promotion of Sports & Games in the Region.

(b) Sanction of Rs.43,911/- (Rupees forty three thousand nine hundred eleven only) was conveyed during September, 2002 for procurement of Sport items and cable connection as an entertainment for the employees posted at NGOPA, Tuivai H.E .Project.

(c) Sanction of Rs.3.00 lakhs (Rupees three lakhs) only was accorded towards membership fee for the calendar year 2002 & 2003 and paid to the Power Sports Control Board and Rs.3.00 lakhs as a special contribution for sponsoring accredited sports events etc. as initiated by the Govt. of India.

(d) Badminton team participated in the All Inter Power Sector Units Badminton Tournament under the aegis of PSCB during April,2002 at Shimla and April, 2003 at New Delhi.

(e) NEEPCO Table Tennis team participated in the All India Power Sector Units T.T. Championship under the aegis of PSCB during May, 2003 held at Jalandhar (Punjab).

(f) For better performance of the players, during February, 2003 the Corporation organized a coaching camp in Cricket at Guwahati, Table Tennis & Badminton at Shillong.

(g) An amount of Rs.3.00 lakhs contributed by PSCB was utilized for procurement of Sport items and improvement of existing Badminton Court at Corporate Office Complex and organizing coaching camp in Cricket, Badminton and Table Tennis.

(V) School:

The Corporation provides schooling facility at Project sites as a welfare measures for 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 seats. 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:-

  • (a) Vivekananda Kendra Vidyalaya, KHEP, Umrongso upto Class XII having both Science & Arts streams.
  • (b) Vivekananda Kendra Vidyalaya, RHEP, Yazali upto Class X.
  • (c) Vivekananda Kendra Vidyalaya, DHEP, Doyand upto Class X
  • (d) Vivekananda Kendra Vidyalaya, AGBPP, Bokuloni upto Class VIII
  • (e) Tie up with Vivekananda Kendra 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.

  • (a) K.G. School at Doimukh.
  • (b) K.G. School at AGBPP site
  • (c) K.G. School at TrHEP Site.

(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 at 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. Altogether 25 officers & employees of the Corporate were imparted Hindi training and 06 employees attended Hindi Typing training which was arranged at Corporate Office premises itself. 18 Nos. of employees posted at projects were nominated for Hindi Training through Training Institute through Correspondence Course under Central Hindi Training Institute, New Delhi. Hindi Workshops were organized 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 access 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. Key words in Hindi with English equivalent were displayed everyday on the black board under the Programme Today's Word in order to enrich the vocabulary of Hindi words of the employees.

Rajbhasha (Hindi) Pakhwara was observed and Hindi Divas as celebrated at the Corporate Office as well as in the Projects 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. An exhibition was also organized 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 as well as in other Offices, a remarkable progress has been made in the use of Hindi in official works.


M/s A. Bhattacharjee & Co., Chartered Accountants, Guwahati-781001 were appointed as Statutory Auditors for the year 2002-2003. The report of the Statutory Auditors, the reply of the management thereto and comments of the Comptroller and Auditor General of India thereon are enclosed in Annex-I, II & 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 is furnished in Annex-IV.


The Directors certify the followings:-

  • (a) In the preparation accounting standards have 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 have been maintained.
  • (d) Annual accounts have been prepared on a going concern basis.


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.


Shri P.K. Tripathi, Shri B. Lalrinliiana, Shri Jitesh Khosla and Shri H. Sema 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 B.K.Dev Varma, Shri Ajai Srivastava, ShriB.K.Agarwal, Shri Saurabh Kumar, Shri V.S.Prasad, Shri M.K.Parida, Shri P.K.Chowdhary and Shri S.L.Longkumar were appointed as part-time Directors of the Corporation during the period since the last Annual General Meeting.


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 2002-2003 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 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 Turbine for NOX control. 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.


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 North Eastern Regional Electricity Board for their continued co-operation and assistance.

The Directors express their sincere gratitude to the State Government 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 Board of Directors


Chairman & Managing Director

Dated 29th September, 2003

New Delhi