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Directors Report of SJVN Ltd.

Mar 31, 2023

Your Directors are pleased to present the Thirty Fifth Directors'' Report of the Company for the year ended 31st March, 2023 along with the Audited Statement of Accounts, Report of Auditors and Comments of the Comptroller and Auditor General of India.

The following financial highlights for the year ended 31st March 2023 briefly encapsulate the performance of your company: -

1. FINANCIAL HIGHLIGHTS

(? in crore

PARTICULARS

Standalone

Consolidated

2022-23

2021-22

2022-23

2021-22

REVENUE

Revenue from Operations

2935.41

2421.96

2938.35

2417.00

Other Income

363.43

203.58

344.15

217.78

Total Revenue

3298.84

2625.54

3282.50

2634.78

EXPENSES

Electricity Purchased for Trading

0.17

-

0.17

-

Employees'' Benefits Expenses

294.85

289.41

286.86

290.62

Finance Cost

432.23

161.34

414.88

161.34

Depreciation and Amortization Expenses

390.59

404.29

396.40

404.29

Other Expenses

419.24

403.80

421.15

399.94

Total Expenses

1537.08

1258.84

1519.46

1256.19

Profit before exceptional items, net movement in regulatory deferral account balance and tax

1761.76

1366.70

1763.04

1378.59

Exceptional items

29.63

23.26

29.63

23.26

Share of Net Profit of Joint Ventures accounted for using equity method

-

-

4.25

4.49

Profit before net movement in regulatory deferral account balance and tax

1732.13

1343.44

1737.66

1359.82

Tax Expenses:

- Current Tax

297.00

229.09

299.09

232.86

- Tax expense pertaining to earlier years

15.59

-

15.59

0.33

- Deferred Tax

45.79

93.01

53.38

93.01

Profit before regulatory deferral account balances

1373.75

1021.34

1369.60

1033.62

Net movement in regulatory deferral account balances (net off tax)

(10.30)

(43.82)

(10.30)

(43.82)

Profit for the year

1363.45

977.52

1359.30

989.80

Other comprehensive Income/(Expense) (Net off tax expense)

(2.02)

(163)

(2.03)

(163)

Total Comprehensive Income for the year

1361.43

975.89

1357.27

988.17

2. GENERATION

Gross Energy Generation from various operational plants of the Company, including subsidiaries during FY 2022-23 is as under: -

(Million Units (MU

Plant

Design

Energy

2022-23

2021-22

NJHPS

6612

7133.002

7067.373

RHPS

1878.08

1997.454

1981.193

KWPS

85.65

50.977

47.230

CSPS

7.6032

8.749

8.595

SWPP

120.05

92.778

102.677

Wadhal SPS

1.5

1.317

1.404

Parasan SPS

--

50.886

--

Total

8704.8832

9335.163

9208.472

Generation Records & Milestones achieved during FY 2022-23 include: -

1. NJHPS has achieved highest ever PAF of 106.653% surpassing previous high of 106.596% achieved in FY 2021-22.

2. NJHPS has achieved highest single day generation of 39.526 MU on 29.08.2022.

3. RHPS has achieved highest single day generation of 10.9082 MU for FY 2022-23 on 26.08.22.

4. CSPS has achieved highest yearly generation of 8.751 MU surpassing previous high of 8.5954 MU achieved in FY 2021-22.

5. Total earning from DSM upto 12.03.2023 is '' 44.19 Cr, which is highest in last 5 years.

6. Total generation recorded from all operational plants for September month of FY 2022-23 is 1338.5 MU which is highest ever generation achieved in September month.

7. Total generation recorded from all operational plants for FY 2022-23 is 9335.166 MU which is 3rd highest generation achieved. Highest is 9678 MU achieved in FY 2019-20.

8. Total generation recorded from all operational plants for 4th Quarter of FY 2022-23 is 863.453 MU which is 2nd highest for 4th Quarter. Highest is 887.054 MU achieved in FY 2021-22.

9. Total generation recorded from all operational plants for 3rd Quarter of FY 2022-23 is 1407.412 MU which is 2nd highest for 3rd Quarter. Highest is 1480.502 MU achieved in FY 2019-20.

3. REVENUE AND PROFITS

The standalone revenue from operation increased by ?513.45 crore to ?2935.41 crore during the financial year 2022-23 compared to ? 2421.96 crore during the previous year. The standalone Profit After Tax (PAT) increased by ?385.93 crore to ?1363.45 crore against ?977.52 crore for the previous year.

The projects of Subsidiary companies - STPL & SAPDC are presently under construction. Some projects of SGEL and CPTC, are in operation. One of the projects of SGEL of 75 MW started commercial generation in the month of November 2022 and revenue of ?12.53 crore has been earned. Consolidation of accounts has resulted in decrease in profit of consolidated group by ?4.15 crore (P.Y. Profit of ?12.28 crore) as compared to standalone financial statements mainly due to loss in SGEL. The loss is due to 2-3 months'' time taken for stabilisation of plant for optimum generation.

4. TRANSFER TO RESERVES

During the year no amount was transferred to Reserves of the Company.

5. DIVIDEND

During the year, an interim dividend of ?1.15 per share has been paid in the month of February 2023. In addition, your Board has recommended a final dividend of ?0.62/- per Share. Thus, subject to your approval, a total dividend of ?1.77 per share (?695.58 crore) is proposed to be paid for FY 2022-23 against ?1.70 per share (?668.07 crore) paid during the previous year.

6. PROGRESS OF PROJECTS (HYDRO & THERMAL)

The progress of the projects of the Company and its subsidiaries are as follows: -

A) PROJECTS UNDER CONSTRUCTION

i) Arun-3 HEP (900 MW):

Arun-3 Hydro Electric Project (4 x 225 MW) is located on River Arun in District Sankhuwasabha of Eastern Nepal. The Project is run-of-the-river scheme with 4 hours peaking and is designed to generate 3924 MU energy annually in a 90% dependable year. SJVN bagged the Project through International Competitive Bidding. Memorandum of Understanding for the execution of this Project was signed with Government of Nepal (GoN) on 02.03.2008. The Project was allotted to SJVN on BOOT basis, to be operated by SJVN for 25 years after the commissioning and thereafter it will be handed over to the Government of Nepal. SJVN Arun-3 Power Development Company Pvt. Ltd (SAPDC) was registered on 25.04.2013 under Companies Act of Nepal, 2063 with an aim to plan, promote and execute the Project.

Techno-Economic approval of the Project was accorded by CEA, Government of India (Gol) on 09.06.2014. Project Development Agreement (PDA) was signed with Investment Board of Nepal (IBN), GoN on 25.11.2014. As per the PDA, Project is scheduled to be completed within 5 years reckoned from the financial closure. Financial Closure was achieved on 06.02.2020 for ?6,333.48 Crores through consortium of five Indian and two Nepalese banks with SBI as the lead.

Environment Impact Assessment report of the Project was approved by Ministry of Science, Technology & Environment, GoN on 12.08.2015. Private land required for the Project has been registered in the name of SAPDC. Lease agreement for diversion of 96.97 ha forest land was signed on 23.08.2017 and for balance 26.25 ha land lease agreement was signed on 06.02.2018.

Government of India has accorded investment approval for the Generation component of the Project at an estimated cost of ?5,723.72 Crores at May 2015 price level. Government of Nepal has issued Generation License on 04.05.2018.

Hon''ble Prime Ministers of India and Nepal jointly laid the foundation stone of this Project on 11.05.2018. Major works of the Project are divided in four main packages which have already been awarded and the progress of each of these is discussed as under.

Civil Package- C1 comprising of Civil Works in Dam complex area and 3.1 km Head Race Tunnel (HRT) was awarded to M/s Jaiprakash Associates Ltd. on 22.09.2017. Work is in progress at all the fronts. Diversion of River was completed on 01.02.2021. Dam excavation and concreting is in progress; 99% excavation and 24% concreting has been completed. Construction of Intake structure is in progress. In HRT, 100% heading, 66% benching and 47% overt lining has been completed.

Civil Package- C2 comprising of Civil Works in Power House and 8.6 km Head Race Tunnel (HRT) was awarded on 19.03.2018 to M/s Patel Engineering Ltd. All access adits to HRT, Power House, Pressure Shafts, Machine Hall, Transformer Hall and Butterfly Valve House have been completed. Excavation of Machine Hall, Transformer Hall, Butterfly Valve House and Collection Gallery have also been completed. 67% excavation of Surge Shaft and 52% widening of Pressure shafts has been completed. Excavation and lining of HRT is in progress; 89% heading, 32% benching and 17% overt lining has been completed. Overall, in both C-1 and C-2 packages 92% heading, 43% benching and 27% overt lining of HRT have been completed.

HM Package- C3 was awarded to M/s OM Metals Infra Projects Ltd. on 11.04.2018. Design and drawings of all major HM components approved and procurement, fabrication and supply of components is in advance stage.

EM Package- C4 was awarded to M/s BHEL on 30.04.2018. Erection of DT liner in all units of Machine Hall has been completed. Design and drawings of all major EM components approved and procurement and supply of components is in progress.

Construction Power: Construction of 33 kV Transmission Line (46 km) for Construction Power has been completed, line charged and construction power made available at site.

Power Evacuation System ofArun-3 HEP: Power Evacuation system consists of 253 km long 400 kV DC Transmission Line from Diding (Project area) in Nepal through Dhalkebar to Sitamarhi Substation, India. Nepal portion of 217 km from Arun-3 Power House (Diding) to Bathnaha (Nepal Border) is being constructed by SAPDC. Government of India accorded investment approval amounting to ?1,236.13 Crores at June, 2017 price level on 08.03.2019 for the Nepal portion of Transmission Line to be constructed by SAPDC. Government of Nepal has issued Transmission license on

12.02.2019.

MoU has been signed with PGCIL for Project Management consultancy for execution of Transmission Line stretch in Nepal. Construction work is being carried out through five packages. All packages i.e. two Tower packages, one Substation package and two Conductor packages have been awarded and the work is in progress. 49% Tower foundations & 40% erection of Towers have been completed and balance work is in progress.

ii) Naitwar Mori HEP (60 MW):

Naitwar Mori Hydro Electric Project (60 MW) is located on Tons River, a major tributary of river Yamuna in Uttarkashi district of Uttarakhand. It is designed as run-of-the-river Project and has a potential to generate 216 MU energy in a 90% dependable year.

Memorandum of Understanding for execution of Naitwar Mori HEP was signed with the Government of Uttarakhand (GoUK) on 21.11.2005. Techno-economic approval of the Project was accorded by CEA, GoI on 02.03.2010. Environment clearance was accorded on 16.06.2016 and Forest clearance Stage-II on 05.08.2016. For diversion of Forest land required for the Project, lease agreement was signed on 01.12.2017. Investment approval for an estimated cost of ?648.33 Crores was accorded by GoI on 16.10.2017 at December, 2016 price level.

Hon''ble Union Minister of State for Power (Independent Charge) and Hon''ble Chief Minister of Uttarakhand laid the foundation stone of the Project at Mori on 30.03.2018. Main works are divided into three packages namely - Civil works (Package-1) i.e. Barrage, Desilting Tank, Intake and Power Channel, 4.33 km HRT, Surge

Shaft, Power House, TRT; Hydro Mechanical works (Package-2) and Electro Mechanical works (Package-3).

The Project has been substantially completed as on date and is likely to be commissioned within second quarter of FY 2023-24.

Major Civil Works at all fronts have been completed. 96% Barrage concreting, 99% Desilting tank concreting, 93% Intake concreting, 99% HRT overt lining and 91% HRT invert lining has been completed. Concrete lining of Surge Shaft completed and grouting is in progress. Excavation of both shafts for DT gates, Bus duct in Transformer Hall and lining of both Draft tubes has also been completed.

Hydro-Mechanical works package was awarded on 18.04.2018 to M/s GMW Private Ltd. Approval of design and drawings have been accorded. Major supplies for HM components have been received at site and supply of remaining components is in progress. Erection of Radial gates along with hoisting arrangement in all 3 bays of Barrage completed. All 4 Bonnet Gates for SFT have been placed, TRT outfall gate and both Draft Tube gates have been erected. Erection of Pressure shaft Steel liner is in progress and 98% ferrules stand erected.

Electro-Mechanical works package was awarded on 11.06.2018 to M/s Voith Hydro Private Ltd. All major EM components have been received at site. EOT Crane was made available on 04.01.2022 and is functional. Boxing-up of Unit-1 completed on 14.10.2022 and Boxing-up of Unit-2 is in progress.

Power Evacuation System of NMHEP: LoA for construction of 220 kV Transmission line from NMHEP Switchyard to HPPTCL network at Snail was issued to M/s KEC International Ltd. on 30.04.2021. All the works of Transmission line (except LILO) has been completed.

iii) Buxar Thermal Power Project (1320 MW):

MOU was signed between SJVN, Bihar State Power Holding Company Limited and Bihar Power Infrastructure Company for the development of 1320 MW Thermal Power Project at village Chausa in District Buxar of Bihar on 17.01.2013. SJVN acquired the Project executing Company Buxar Bijlee Company Private Limited on 04.07.2013. The name of Buxar Bijlee Company Private Limited was changed to SJVN Thermal Private Limited (STPL), a wholly owned subsidiary company of SJVN Limited on 17.10.2013.

Investment approval for carrying out pre-construction activities of the Project amounting to ''436.68 Crores was accorded by Gol on 26.05.2015. MoEF&CC accorded Environment Clearance on 28.02.2017. 1058.33 acre land for Project components was transferred in the name of STPL on 12.12.2017. Consent to Establish (NOC) was granted by Bihar State Pollution Control Board on 03.09.2019.

CCEA accorded investment approval of Main Plant works on 08.03.2019 amounting to ''10,439.09 Crores. Foundation stone for the Project was laid by Hon''ble Prime Minister of India on

09.03.2019.

Main Plant works: Single EPC package was awarded to M/s L&T on 22.06.2019 and construction activities are in progress. Area grading work in Main Plant area is in progress, 82% excavation and 81% filling has been completed. 78% erection for Boiler-I and 52% erection for Boiler-II has been completed. Structure erection work of Boiler-I & II, ESP-I & II, STG I & II, DM plant and CHP system is in progress. Chimney outer shell concreting has been completed and flue can fabrication is in progress.

Rail Infrastructure: The DPR for Rail infrastructure was approved by East Central Railway (ECR), Hazipur on 05.09.2019. For Coal

linkage, Amrapali and Magadh coal blocks have been identified as source by Central Coalfields Ltd. (CCL) and Fuel supply agreement was signed with Central Coalfields Ltd on 27.07.2021. Work is divided into seven packages out of which 4 packages (Package- 1 to 4) have been awarded and tendering work for remaining packages is in process. Supply of Rails (Package-1) and PSC Sleepers (Package-2) has been completed. Railway infra works inside Plant (Package-3) and Civil works outside plant (Package-4) are also in progress.

Power Evacuation System: Power Purchase Agreement (PPA) for the Project was signed with Bihar State Electricity Board (later Bihar State Power Holding Company Limited, BSPHCL) for 85% share of Power at bus bar rate. PPA (supplementary agreement) signed with BSPHCL on 09.04.2021 for construction of Transmission Lines for Power evacuation. Grant of Connectivity for Power Transmission from Buxar TPP was accorded by Bihar State Power Transmission Company Ltd. (BSPTCL) on 11.03.2022. Connectivity agreement was signed on 03.02.2023. Power evacuation system is divided into four Transmission Line packages. LoA for all four lines has been issued by BSPTCL. Tower foundation and erection work is in progress. 98% tower foundations have been completed and 96% towers have been erected.

Work for construction power i.e. construction of 33 kV line & 33 kV/11 kV sub-station has been completed and line is charged.

iv) Luhri HEP STAGE-1 (210 MW):

Luhri Hydro Electric Project Stage-1 is a Run-of-the-River (RoR) scheme with installed capacity of 210 MW, located on river Satluj, near village Nirath spread over Shimla and Kullu Districts of Himachal Pradesh. The project will generate 758 MU of electric energy in a 90% dependable year. MOU for execution of the project was signed with Govt. of Himachal Pradesh on 25.09.2019.

Investment approval amounting to '' 1810.56 Cr for main works accorded on 20.11.2020 with completion period of 62 months from the date of investment approval. Foundation stones laid by Hon''ble Prime Minister of India on 27.12.2021. Financial closure of the project has been achieved on 28.02.2022 and agreement signed with State Bank of India.

Main Civil & HM works package was awarded on 24.11.2020 to M/s Luhri Hydro Power Consortium and works at various fronts are in full swing. River diverted on 25.06.2022 and construction of Coffer Dam has been completed. Dam excavation in right bank, left bank and River bed is in progress and 54% completed. Concreting in dam block no. 10,11,12 and 13 has also been started. Excavation of Power House up to Service Bay & raft concreting completed and further works for excavation up to unit pits & concreting of columns and beams are in progress. Excavation of Tail Race Channel is in progress and 66% work completed. Construction of flood protection wall is in progress. Erection of permanent steel truss bridge (84m) for river crossing is also in progress.

EM package was awarded to M/s Voith Hydro Pvt. Ltd. on

16.07.2021. Manufacturing of draft tube liner for unit-1 (Main) and unit-3 (Auxiliary) completed. Manufacturing of other EM Components is in progress.

Realignment work of NH-5 (1.36 km) has been completed on

28.02.2023 through HPPWD and left bank stripping for dam abutment has been taken up by contractor from 04.03.2023.

For Power Evacuation work for construction of 220 kV Transmission Line from switchyard to common pooling station (ISTS network) awarded on 06.07.2022. Detailed survey completed and public

notice in Govt. of India Gazette u/s 164 of Electricity Act, 2023 has been published. Cases for acquisition of private land and diversion of forest land are being processed.

v) Dhaulasidh HEP (66 MW):

Dhaulasidh Hydro Electric Project with installed capacity of 66 MW is located on river Beas, in Hamirpur and Kangra districts of Himachal Pradesh. The Project is a run-of-the-river scheme and will generate 304 MUs of electric energy in a 90% dependable year. MOU was signed with Govt. of Himachal Pradesh on 25.09.2019.

Investment approval amounting to '' 687.97 Cr for main works accorded on 01.10.2020 with completion period of 54 months from the date of commencement of construction works. Foundation stone laid by Hon''ble Prime Minister of India on 27.12.2021. Financial closure of the project was achieved on 18.04.2022 and agreement signed with H.P. State Cooperative bank.

Main Civil & HM works package was awarded to M/s Rithwik Projects Pvt. Ltd., Hyderabad on 06.05.2021. River diverted on 15.02.2022 and construction of Coffer Dam has been completed. Excavation for all the project components i.e. Dam, Power House and Tail Race Channel has been completed in all respect. Dam concreting in Block no. 4, 5 and 6 is in progress. Concreting in Power house started on 28.02.2023. Work for construction of flood protection wall is also in progress.

EM package for main works awarded to M/s Voith Hydro Pvt. Ltd. on 19.01.2022. Power house layout approved on 04.08.2022. Fabrication of draft tube liners for both units has been completed. Design and fabrication of balance components is in progress. Work for supply and erection of EOT crane has been awarded on 01.04.2023. Design and drawings have been approved and manufacturing is in progress.

3616 kanal private land required for project has been directly purchased from land owners while 2301 kanal of Govt. land is proposed to be taken on lease basis and the same is under process of approval with GoHP.

For Power Evacuation, work for construction of 17.2 km Transmission Line from switchyard to HPPTCL network in Alampur awarded on

14.06.2022. Detailed survey completed and cases for acquisition of private land and diversion of forest land are being processed.

vi) Sunni Dam HEP (382 MW):

Sunni Dam HEP is a run-of-the-river (RoR) scheme on river Satluj located near Khaira village in Shimla and Mandi districts of Himachal Pradesh. The Project will generate 1382 MU of energy in a 90% dependable year. Govt. of H.P. re-allotted the project on "Stand Alone Basis" to SJVN on 29.08.2017. MOU was signed with Govt. of Himachal Pradesh on 25.09.2019. Ground breaking ceremony of the project was presided over by Hon''ble Prime Minister of India on

27.12.2021.

After obtaining all statutory clearances, investment approval amounting to '' 2614.51 Cr accorded by GoI on 12.01.2023 with completion period of 63 months from the date of CCEA approval.

EPC package for main Civil & HM works has been awarded to M/s Rithwik Projects Private Limited on 14.01.2023. Initial mobilisation of manpower and machinery has been completed by the Contractor. Topographical survey work completed on 19.02.2023. Construction of approach road to adit of Diversion Tunnel & portal excavation has also been completed. Excavation of Adit to Diversion Tunnel is in progress.

Various infrastructure works i.e. approach roads on left & right banks and double-lane steel truss bridge over river Satluj were

awarded well before the award of main Civil & HM works to facilitate main works and execution of the same is in full swing. Construction power for initial requirement has been made available at site, while for peak requirement, work of 22 kV line from HPSEB''s substation at Gumma to dam site through HPSEB Ltd. is in progress.

For acquisition of private land as required, notification under Section-11 of LARR Act was issued by GoHP on 19.01.2021. R&R plans for both Mandi and Shimla districts have been approved on

25.03.2023 and 28.03.2023 respectively and R&R cost has been deposited with District Administration for disbursement.

For power evacuation, location of common pooling station at village Ogli has also been finalised with CTU/CEA. Land required for transmission line up to common pooling station has been identified.

B) PROJECTS UNDER PRE-CONSTRUCTION, SURVEY & INVESTIGATION STAGES:

i) Lower Arun HEP (669 MW), Nepal:

Lower Arun HEP was allotted to SJVN by Govt. of Nepal with an installed capacity of 679 MW on 04.02.2021. The project is located in the Sankhuwasabha and Bhojpur districts of Eastern Nepal on river Arun, d/s of existing Arun-3 HEP (900 MW) which is under construction by SAPDC (wholly owned subsidiary of SJVN). The project is envisaged to be operated in Tandem with Arun-3 HEP.

Investment approval for '' 74.60 Cr for pre-construction activities of the project was accorded by GoI on 02.03.2022. DPR of the project has been approved by IBN, GoN on 31.03.2022. Techno-Economic Appraisal of the Project has also been accorded by CEA on 31.10. 2022. Project Development Agreement (PDA) to be signed with IBN, GoN is under finalization.

For investment approval, revised PIB Memo has been submitted by MoP to DoE on 02.05.2023 for convening PIB meeting. Tender documents for major works of the project are being finalised.

ii) Luhri HEP STAGE-2 (228 MW):

Luhri HEP Stage-2 is a Run-of-the-River (RoR) scheme proposed on river Satluj near village Nanj, in Shimla, Kullu and Mandi districts of Himachal Pradesh. Govt. of H.P. re-allotted the project on "Stand Alone Basis" to SJVN on 29.08.2017. Investment approval for carrying out construction activities amounting to '' 72.478 Cr has been approved by GoI on 16.03.2018. MOU was signed with GoHP on 25.09.2019.

The project is in pre-DPR stage. After preliminary studies, a scheme in tandem operation with upstream Luhri HEP Stage-1 has been identified with an installed capacity of 228 MW and layout of the scheme submitted to CWC/CEA for approval.

iii) Devsari HEP (194 MW):

Devsari HEP is a Run-of-the-River (RoR) scheme located on river Pinder, a major tributary of river Alaknanda in district Chamoli of Uttarakhand. DPR with 252 MW installed capacity was concurred by CEA on 07.08.2012.

As per revised e-flows notified by MoJS, GoI on 09.10.2018, DPR of the project is being revised and capacity reworked from 252 MW to 194 MW. However, all S&I work required for revision of DPR are on hold in compliance to Ministry of Power letter dated 06.07.2021 due to stay ordered by Hon''ble Supreme Court of India for HEPs in Uttarakhand. Matter has been taken up with MoP/ MoJS and PMO to consider the project for development.

Forest clearance stage-1 was accorded by MOEF&CC on 26.02.2018 with conditions. Environmental Clearance was

recommended by EAC on 27.03.2018 subject to certain conditions applicable for FC stage-1. For acquisition of private land, award has been issued by DM, Chamoli on 10.07.2019 and compensation amount deposited with District Administration.

iv) Jakhol Sankri HEP (44 MW):

Jakhol Sankri HEP with proposed installed capacity of 44 MW is located on River Supin, a tributary of River Tons in Uttarkashi District of Uttarakhand. The project is designed as run-of-the-river project and will generate 166 MU of annual energy. Investment approval for carrying out pre-construction activities has been accorded by GoI at an estimated cost of '' 84.50 Cr. on 15.09.2017.

TEC of DPR issued by GoUk on 03.06.2019. Environmental clearance was recommended by EAC, MoEF on 26.12.2019. Proposal for forest Clearance Stage-1 after recommendation from REC, MoEF&CC has been submitted to MoEF&CC on 19.01.2022. For private land acquisition, R&R plan approved by Commissioner, Garhwal on 15.06.2021 and land compensation is under finalization.

In order to keep the tariff of power to be generated from the project within acceptable limits, GoUk was pursued to extend certain concessions in terms of taxation and free power etc. Concessions to make the hydro power projects viable have been granted by GoUk on 17.02.2023, however, the project cost/tariff is still on higher side. Consultant has been hired on 25.04.2023 to optimize the project components to make it commercially viable. The report is awaited for further progress.

v) Jangi Thopan Powari HEP (804 MW):

Jangi Thopan Powari HEP is located on river Satluj in Distt. Kinnaur of Himachal Pradesh. The project with installed capacity of 780 MW was allotted by GoHP on 24.11.2018 and MoU signed on

25.09.2019. Investment approval for carrying out pre-construction activities of project has been accorded by GoI at an estimated cost of '' 93.24 Cr. on 20.05.2021.

Project is under S&I stage. After preliminary studies, capacity of project has been proposed to be enhanced to 804 MW.

Drilling and drift works were awarded on 26.02.2021 and 17.03.2021 respectively. However, S&I work were stopped by locals w.e.f.

04.04.2021. A Communication Plan has been prepared and is being implemented in the project affected areas under which various activities are being carried out for sensitization of locals about project benefits. Simultaneously, alternative project scheme/layout proposing modifications such as possibility of Dam-Toe Power House, use of TBM for HRT etc. are also being explored to address the concerns of local public.

vi) Reoli-Dugli HEP (456 MW):

Reoli Dugli HEP is a run-of-the-river project proposed to harness the hydel potential of river Chenab in the Lahaul-Spiti district of Himachal Pradesh. GoHP allotted the project to SJVN with capacity of 430 MW on 23.10.2019. Template MoU was signed with GoHP on 06.11.2019. After feasibility studies, capacity of the project enhanced to 456 MW. DPR of the project was submitted to CEA/ CWC on 28.12.2021. Additional investigations suggested by GSI/ CWC are in progress.

For diversion of forest land, case has been submitted to MoEF&CC on 31.03.2022. Identification of land for Compensatory Afforestation area and Tree enumeration is in progress. EIA/EMP report and CAT plan are under finalisation.

Investment approval for pre-construction activities amounting to '' 79.69 Crore has been approved by MoP on 20.12.2022.

vii) Purthi HEP (234 MW):

GoHP allotted the project with capacity of 210 MW in Chenab basin on 09.08.2019 and Template MoU was signed with GoHP on

25.09.2019.

Project is in pre-DPR stage. 1st consultation meeting was held in CEA on 20.10.2020. After preliminary studies, capacity of project has been enhanced to 234 MW. Drilling and drift works for geotechnical investigations were awarded, however, same have been stopped by locals w.e.f. 04.09.2022. Matter has been taken up with Administration/locals.

ToR of the project has been approved by MoEF&CC on 26.03.2021. EIA/ EMP report and CAT plan are under preparation. Investment approval for pre-construction activities amounting to '' 78.25 crore has been approved by MoP on 14.12.2022.

viii) Bardang HEP (166 MW):

GoHP allotted the project with capacity of 138 MW in Chenab basin on 09.08.2019 and Template MoU signed with GoHP on 25.09.2019.

Project is in pre-DPR stage. 1st consultation meeting held with CEA on 06.11.2020. After preliminary studies, capacity of project has been revised to 166 MW. Drift works completed on 09.02.2023 and drilling works are in progress.

ToR of the project has been approved by MoEF&CC on 26.03.2021. EIA/ EMP report and CAT plan are under preparation.

ix) Sach Khas HEP (287 MW):

Sach Khas HEP is a run of the river project proposed to harness the hydel potential of river Chenab in Chamba district of Himachal Pradesh. GoHP allotted the project with capacity of 267 MW on

05.01.2021.

Project is in pre-DPR stage. 1st consultation meeting held on

06.01.2022. After investigation, capacity of project revised to 287 MW. Drilling and drift works for geotechnical investigations are in progress.

ToR of the project approved by MoEF&CC on 04.03.2022. EIA/EMP report and CAT plan are under preparation.

x) Tandi Rashil HEP (268 MW):

Tandi HEP and Rashil HEP were allotted by GoHP with capacity of 104 MW and 130 MW respectively in Chenab basin on 05.01.2021. After preliminary studies, a single scheme of 268 MW Tandi-Rashil HEP has been proposed and same was approved by GoHP on

02.07.2022.

The project considered by CEA on 25.07.2022. Project is in pre-DPR stage and Consultant for Environment studies is being hired.

xi) Tindi SHEP (4.4 MW):

Tindi hydroelectric project is a run-of-the-river scheme located on Harsar nala, a tributary of river Chandrabhaga near village Tindi, in District Lahaul & Spiti of Himachal Pradesh. DPR of the project has been submitted to GoHP/Himurja on 31.08.2022 for approval.

xii) Chhoo SHEP (3.5 MW):

Chhoo SHEP is a run-of- the -river scheme on Mujar nallah, a tributary of Chenab River. DPR of the project is under preparation.

xiii) Arun-4 HEP (490 MW), Nepal:

Arun-4 HEP is a run-of-the-river scheme proposed to harness the hydel potential of river Arun in Nepal with an annual generation of 2758 MU. For the development of the project in a Joint Venture, a

Memorandum of Understanding has been signed between SJVN and Nepal Electricity Authority (NEA), in the esteemed presence of Hon''ble Prime Ministers of India & Hon''ble Prime Minister of Nepal at Lumbini, Nepal on 16.05.2022.

Project registered with CEA on 08.07.2022. Inception report of the project has also been submitted to NEA, GoN on 23.11.2022.

Investment approval for pre-construction activities amounting to '' 41.36 crore has been approved by MoP on 30.12.2022.

xiv) Hydro Power Projects in Arunachal Pradesh:

Ministry of Power, GoI has indicated basin-wise identification of projects in Arunachal Pradesh to the Hydro CPSUs, wherein 5 projects (Emini-500 MW, Amulin - 420 MW, Mihumdon-400 MW, Etalin-3097 MW and Attunli-680 MW) with a total installed capacity of 5097 MW were indicated to SJVN in the Dibang basin of Arunachal Pradesh.

Emini (500 MW), Amulin (420 MW) and Mihumdon (400 MW) HEPs: Projects have been approved for allotment to SJVN by GoAP Cabinet on 10.01.2023. MoAs for development of the projects are under finalisation with GoAP.

Etalin (3097 MW) and Attunli (680 MW) HEPs: Projects were initially allotted to M/s Jindal Power Ltd. by GoAP and DPRs of these two projects were approved by CEA. Signing of agreements is under finalisation with GoAP.

Oju HEP (1878 MW): Oju Subansiri Hydro Power Corporation Pvt. Ltd invited an EOI for joint execution of Oju HEP (1878 MW) located in Upper Subansiri district of Arunachal Pradesh. MoU for development of the Project signed with M/s Navyuga Engineering Company Limited and Oju Subansiri Hydro Power Corporation Pvt. Ltd. on 31.01.2023. Concurrence of NITI Aayog and DIPAM for development of the project is under process.

xv) Pumped Storage Projects:

Ministry of Power on 06.04.2022 has indicated 10 PSPs to SJVN with an estimated capacity of 13950 MW and spread across four states which were further revised to 11 projects with estimated capacity of 12745 MW on 08.08.2022. After initial studies, total potential worked out as 12790 MW with 10 projects.

PFRs of Jalvara PSP (2220 MW) falling in Maharashtra & Karnataka and Sadda PSP (180 MW) falling in Himachal Pradesh have been submitted to CEA on 28.12.2022 for registration /listing of the projects. Matter has been taken up with respective states for allotment of the projects.

There are Wildlife Sanctuary issues in 04 projects i.e. Chornai PSP, Kolmondapada PSP, Sidgarh PSP and Baitarni PSPs, while PFRs of balance four PSPs i.e. Chera Khad, Dhurmu and Purthi & Sach Khas PSPs located in the state of Himachal Pradesh and Daizo Lui PSP in Mizoram are under finalization.

In addition to above, some PSPs in Maharashtra and Bihar are also being explored. Four PSPs i.e. Telharkund PSP, Sinafdar PSP, Panchgotia PSP and Hathiadah-Durgawati PSP in Kaimur district of Bihar have been identified for further survey & investigation.

Requests letter have been sent to Eastern Coalfields Limited, Western Coalfields Ltd and South eastern Coalfield Limited on 05.12.2022 for identification of abandoned coal mines for developing PSPs.

PROGRESS OF PROJECTS (RENEWABLE ENERGY)

SJVN is fast expanding its foot prints in the field of Renewables and aims for adding 1 to 1.5 GW Capacity on annual basis. In order to

give a thrust to its renewable endeavours, SJVN has registered a Wholly owned Subsidiary namely “SJVN Green Energy Limited” on 30.03.2022.

The Renewable portfolio at present stands at 4.25 GW which includes Operational (178.2 MW), Construction (1500 MW), Pre-Construction (1296 MW) and S&I (1280 MW).

A. PROJECTS UNDER OPERATION (178.2 MW)

i) Charanka Solar Power Station

SJVN''s 5.6 MW Charanka Solar Power Station has been commissioned on 31.03.2017. The project is located at Charanka Solar Park in Gujarat in an area of about 25.95 Acres. The project has been conceived under REC Mechanism and the PPA for brown power has been signed with GUVNL on 03.03.2017. Total 5051 RECs (Renewable Energy Certificates) have been traded in FY 2022-23 and on cumulative basis 38356 RECs. The project has generated 8.751 MUs in the FY 2022-23.

ii) Khirwire Wind Power Station

SJVN has set up its first Wind Power Project of 47.6 MW capacity at Khirwire / Kombhalne villages of Ahmednagar district of state of Maharashtra. The Project comprises 56 Wind Energy Generators (WEGs) each of capacity 0.85 MW. The project started generation w.e.f. 20th January 2014, with the commissioning of 1st lot of 25 WEGs and attained full generation capacity by commissioning the last 56th WEG on 20.05.2014. The project has been registered with IREDA for availing Generation Based Incentive @?0.50 / kWh with a cap of ?1 Crore per MW. Total energy Generation from the plant for FY 2022-23 was 50.976 MU.

iii) Sadla Wind Power Project

SJVN has successfully commissioned its second Wind Power Project of 50 MW capacity, comprising 25 WEGs each of capacity 2 MW at village Sadla, Distt. Surendranagar, Gujarat. PPA was signed with Gujarat Urja Vikas Nigam Limited for 38 MW on 30.01.2018 and for balance 12 MW on 30.03.2019. The project has been fully commissioned on 18.04.2019. Total 92.780 MU had been generated in FY 2022-23.

iv) Parasan Solar Park Project

Parasan Solar Park Project of 75 MW capacity was bagged through Open Competitive Bidding conducted by Uttar Pradesh New & Renewable Energy Development Agency (UPNEDA) on 17.05.2021 and PPA was signed with UPPCL at a tariff of INR 2.68 per unit. The annual design energy for the project is 168.34 MU with a CUF 25.6. The EPC work was awarded to M/s Solar World Energy Solution Pvt Limited. The project was commissioned and came into operation on

22.11.2022. Total energy generation of 50.886 MU was achieved during FY 2022-23.

B. PROJECTS UNDER CONSTRUCTION (1500 MW)

Presently, SJVN Ltd has eight solar power projects under construction with total capacity of 1500 MW located in Uttar Pradesh, Rajasthan, Gujarat, Madhya Pradesh, Punjab and Himachal Pradesh. The details of the projects are listed below:

i) 70 MW Bagodra Solar Power Project

Bagodra Solar Park Project of 70 MW capacity was bagged through Open Competitive Bidding conducted by Gujarat Urja Vikas Nigam Limited on 26.03.2021. PPA was signed with GUVNL at tariff of INR 2.21 per unit. The EPC was awarded to M/s Refex Energy Limited. The project is in construction stage and is likely to be commissioned by October 2023.

ii) 1000 MW Bikaner Solar Power Project under CPSU Scheme

SJVN during the month of September 2021 bagged 1000 MW Solar Project at a tariff of INR 2.57/Unit (maximum) and a Viability Gap Funding (VGF) of 44.72 Lakh/MW through competitive bidding under the CPSU Scheme. The EPC was awarded to M/s TATA Power Solar System Limited. The project is in construction stage and is likely to be commissioned by February 2024.

iii) 75 MW Gurhah Solar Power Project

SJVN through competitive bidding conducted by Uttar Pradesh New & Renewable Energy Development Agency (UPNEDA) bagged 75 MW Solar Power Projects. PPA has been signed with UPPCL at a tariff of INR 2.98/Unit. The EPC work was awarded to M/s Solar World Energy Solution Pvt Limited. The project is in construction stage and is likely to be commissioned by November, 2023.

iv) 50 MW Gujrai Solar Power Project

SJVN through competitive bidding conducted by Uttar Pradesh New & Renewable Energy Development Agency (UPNEDA) bagged 50 MW Solar Power Projects. PPA has been signed with UPPCL at a tariff of INR 2.98/Unit. The EPC work was awarded to M/s Solar World Energy Solution Pvt. Limited. The project is in construction stage and is likely to be commissioned by November, 2023.

v) 100 MW Raghanesda Solar Project

SJVN through Open Competitive Bidding conducted by Gujarat Urja Vikas Nigam Limited (GUVNL) bagged 100 MW Solar Power Project to be developed in Raghanesda Solar Park in Gujarat. PPA has been signed with GUVNL at a tariff of INR 2.64/Unit. Award has been placed on 03.08.2022. Project is to be commissioned by December, 2023.

vi) 100 MW Punjab Solar Project

SJVN through Open Competitive Bidding conducted by Punjab State Power Corporation Limited (PSPCL) bagged 100 MW Floating Solar Project in Punjab. PPA has been signed with PSPCL at a tariff of INR 2.65/Unit. Award has been placed upon M/s BVG India Limited on 21.03.2023. Project is to be commissioned by March, 2024.

vii) 15 MW Nangal FSP

Award has been placed to M/s Hartek Solar Pvt. Limited on

24.03.2023 for construction of 15 MW floating SPP in the catchment area of BBMB DAM at Nangal. Project is to be commissioned by March, 2024. PPA has been signed with BBMB on 23.12.2022 at a tariff of INR 3.26/Unit.

viii) 90 MW Omkareshwar Floating Solar Project

SJVN through Open Competitive Bidding conducted by Rewa Ultra Mega Solar ltd. (RUMSL) bagged 90 MW Floating Solar Project at Indira Dam, Omkareshwar, Madhya Pradesh. PPA signed with MPPMCL on 04.08.2022 at a tariff of INR 3.26/Unit. Award has been placed to M/s Larsen & Toubro Limited on 29.11.2022. Project is to be commissioned by February, 2024.

C. PROJECTS UNDER PRE-CONSTRUCTION STAGE (1296 MW)

Following solar projects are under pre construction stage:

I. 125 MW Jamui Solar Project in Bihar.

II. 75 MW Banka Solar Project in Bihar.

III. 100 MW Gujarat SPP (Phase -XII) in Gujarat.

IV. 260 MW Gujarat SPP (Phase -XIV) in Gujarat.

V. 113 MW Solar Projects in Himachal Pradesh.

VI. 18 MW BBMB Solar Project

VII. 200 MW Maharashtra SPP (MSEDCL Phase VII) in Maharashtra.

VIII. 105 MW Maharashtra FSPV (Mahagenco) in Maharashtra

IX. 200 MW Maharashtra SPP (MSEDCL Phase IX) in Maharashtra

X. 100 MW SECI WPP (Tranche XIII).

POWER TRADING BUSINESS AND LICENSE

SJVN has ventured into power trading business as part of its business expansion and diversification plan and has obtained Category-I license from CERC for interstate trading of electricity in whole of India in the year 2022. SJVN is registered at DEPP (Discover of Efficient Electricity Price) e-bidding portal and has obtained trader membership in Indian Energy Exhange (IEX). During the FY 2022-23, Company had traded energy of 0.3 MUs with turnover of '' 16,89,000

SUBSIDIARIES AND JOINT VENTURE COMPANIES

A) SUBSIDIARY COMPANIES:

Company has three wholly owned subsidiary companies as on

31.03.2023. The details of the subsidiaries are as under:

1. SJVN Thermal Pvt. Ltd.

SJVN Thermal Pvt. Ltd (STPL) (earlier, Buxar Bijlee Company Private Limited) has been acquired as 100% subsidiary company of SJVN Ltd on 04.07.2013. The Company has taken up the development of 1320 MW Coal based Thermal Power Project located near village Chausa in District Buxar of Bihar. The cumulative expenditure incurred up to 31.03.2023 is '' 7446.67 Cr. The paid-up share capital as on 31.03.2023 is '' 2511.68 Cr. (previous year: '' 2511.68 Cr).

2. SJVN Arun-3 Power Development Company Pvt. Ltd.

SJVN Arun-3 Power Development Company Pvt. Ltd. (SAPDC) was incorporated in Nepal as a wholly owned subsidiary company of SJVN Ltd on 25.04.2013. The company has been formed to execute the 900 MW Arun-3 Hydro Electric Project in Nepal. This project is situated on river Arun in Sankhuwasabha District of Nepal. The cumulative expenditure incurred up to 31.03.2023 is '' 4166.76 Cr. The paid-up share capital as on 31.03.2022 is '' 2105.41 Cr (previous year: '' 2105.41 Cr).

3. SJVN Green Energy Limited (SGEL)

SJVN Green Energy Limited (SGEL) has been incorporated as a wholly owned subsidiary company of SJVN Ltd on 30.03.2022 with its registered office at Shimla, Himachal Pradesh. SGEL shall work in the verticals of power generation from renewable sources such as Solar, Wind & Hybrid Projects, Battery Energy Storage system, Biomass, small Hydro and Green Hydrogen based business ventures.

B) JOINT VENTURES:

SJVN has one joint venture as on 31.03.2023. The details of the Joint Venture are as under:

Cross Border Power Transmission Company Limited:

Cross Border Power Transmission Company Limited (CPTC) is a joint venture of SJVN Ltd. with IL&FS Energy Development Company Ltd. (IEDCL), Power Grid Corporation of India Ltd.

(PGCIL) and Nepal Electricity Authority (NEA) for implementation of Indian portion of the transmission line from Nepal. Equity contributions by SJVN, PGCIL, IEDCL & NEA are 26%, 26%, 38% & 10% respectively in the Joint Venture Company. SJVN has invested '' 12.61 Cr. as on 31.03.2023 in the joint venture. Transmission line is under operation since February 2016.

Note: Kholongchhu Hydro Energy Limited (KHEL) is a joint Venture Company formed on 12.06.2015 registered under the Companies Act of Bhutan. The JV was formed between SJVN and DGPC for construction and operation of 600 MW KHEP in Bhutan with 50:50 equity participation. SJVN had infused an equity contribution of INR 240 Cr towards project execution till FY 2022-23. Considering the frequent delays in the decision making in the JV due to no clear voting rights for either party in the JV, a bilateral meeting was held between the two Govts. at Thimphu, Bhutan on Oct 31, 2022. Pursuant to the discussions held during the aforesaid meeting and as desired by RGoB, the proposal for taking over of the shareholding of SJVN in KHEL by DGPC was accepted by the two Govts. In line with the mutually agreed terms & conditions, entire shareholding of SJVN in KHEL was taken over by DGPC against payment of INR 354.71 Crore, received on 19.01.2023. Nomination of SJVN Directors from the Board of KHEL has been withdrawn w.e.f. 24.01.2023.

10. ENVIRONMENT

SJVN is aware of its obligation to conserve and protect the environment. SJVN strictly adheres to all policies and guidelines of the Ministry of Environment, Forest and Climate Change (MoEF&CC), Govt. of India (GoI) concerning identification and mitigation of environmental impacts of projects. To achieve sustainable development, studies like Environmental Impact Assessment (EIA) and Environment Management Plan (EMP), which are a part of the Comprehensive Environmental Impact Assessment Study, are carried out through highly reputed organizations/NABET accredited-consultants. All environmental aspects are suitably addressed in the Environment Impact Assessment. Accordingly, an Environment Management Plan is prepared and suitable measures are adopted to negate any adverse impact on the environment and ecology during construction and operation stages. Every care is taken to implement and abide by the laws of the land in respect of the environment and ecological safeguards.

SJVN has also been in consonance with “Mission Life” launched by MoEF&CC and is striving to achieve its aims. SJVN commits to saving energy and water, reducing plastic waste and avoiding single-use plastics, adopting sustainable food systems, reducing waste and e-waste and encouraging employees for adopting healthy lifestyles.

SJVN has two hydro power stations, viz 1500 MW Nathpa Jhakri Hydro Power Station (NJHPS) and 412 MW Rampur Hydropower Station (RHPS) in Himachal Pradesh which are under operation wherein management measures such as Catchment Area Treatment (CAT), Compensatory Afforestation (CA), Muck Management, Restoration of muck disposal sites, quarry sites and construction areas, Green Belt Development, Biodiversity Management, Fisheries Management, etc. were successfully undertaken. Regular environmental monitoring is done at SJVN projects and six-monthly compliance reports of Environment Clearance are sent to MoEF&CC and other concerned authorities

SJVN has three hydroelectric projects in construction stage in Himachal Pradesh - 210 MW Luhri Stage-I HEP, 66 MW Dhaulasidh HEP and 382 MW Sunni Dam HEP and one project 60 MW Naitwar Mori HEP in Uttarakhand, which is poised for commissioning shortly.

At Luhri Stage-I HEP, Environment Management Plan amounting to

'' 148.60 crores along with a Corporate Environment Responsibility (CER) plan amounting to '' 8.6 crores) is being implemented. Various Environment Management measures taken at project sites are as follows:

• An amount of '' 80.43 lakh has been utilized in construction of Drinking Water Supply Scheme in Nirath.

• Under Fisheries Management plan, an amount of '' 30 lakhs have been utilized in construction of fish landing centre in Kol-dam Reservoir at Sunni by HP Fisheries Department.

• An amount of '' 12.5 lakh has been sanctioned for construction of stage at Government Sr. Secondary School, Neether, District Kullu and '' 5.0 lakh has been sanctioned for construction of play ground in Government Primary School, Koel.

• For PHCs of Neether, Koel, Nirath and Shamathala an amount of '' 6.90 lakh has been issued for purchase of first aid and other items to provide medical treatment to locals.

At Dhaulasidh HEP, Environment Management Plan amounting to '' 34.14 crores are being implemented. Environment Management System (ISO 14001:2015) is also being implemented to maintain the sustainability.

This year 170 nos. solar lights and 10 nos. high mast solar lights have been installed in Hamirpur, Kangra and Mandi districts to save the energy.

For effective Solid Waste Management, 2 STPs in the project site and 1 STP near office building, Bachelor accommodation area have been installed.

Sunni Dam HEP, is in early stages of construction. An amount of '' 305.46 cr. has been kept for implementation of various Management measures proposed in Environment Management Plan.

In Uttarakhand, 60 MW Naitwar Mori Hydroelectric Project, which is located on Tons River in Uttarkashi Districts is in advance stage of construction.

An amount of ''45.44 crores have been spent so far against a financial provision of '' 32.48 crores on implementation of various environmental management measures, which were also appreciated by Government officials during the last Multi-disciplinary Committee (MDC) meeting. The details have been briefly brought out below:

• For the implementation of the CAT plan, '' 12.96 Crores have been deposited against the CAMPA fund. An amount of about '' 1.41 cr have been utilized by Uttarakhand Forest Department against implementation of CAT Plan till date.

• As part of the diversion of forest land, Compensatory Afforestation (CA) over 80.00 ha of civil soyam and forest land has been carried out for which out of '' 1.84 crores deposited in CAMPA fund, an amount of '' 76.67 lakh have been spent so far against CA works by Forest Department.

• Biodiversity Conservation and Management Plan has been prepared by the State Forest Department, against which an amount of '' 43 lakhs have been deposited by SJVN with the Uttarakhand Forest Department. An amount of about ''18.60 lakh have been spent so far against Biodiversity Conservation and Management Plan by the Uttarakhand Forest Department.

• Under the Fisheries Management Plan, a fish pass, for migratory fish species in the river, is proposed. SJVN has engaged Central Inland Fisheries Research Institute (CIFRI), Barrakpore, West Bengal who has vetted the design parameters for an effective and sustainable fish pass.

• Muck management is being implemented as per the MoEF&CC guidelines.

• To avoid landslides and soil erosion, Reservoir Rim Treatment Plan is being implemented.

• Noise levels, ambient air quality and water of the project area are being regularly monitored by Pollution Control Research Institute, BHEL at Haridwar. The monitored data shows reportable values below the permissible limits defined by regulatory bodies. Further, all high noise generating equipment have been provided with mufflers as per the manufacturers'' specifications.

• Rain water harvesting system along with a 60 KLD sewage water treatment has been setup at project colony to control water pollution.

• Bio composter & Plastic waste bailing machine have been procured for treatment of solid waste of project affected villages and project colony.

• Towards sustainable development, AAC bricks (having fly ash content about 68%) was used in the construction of township and office buildings.

• Canteen facility is being provided by contractor to the labour force engaged in construction activity of the project.

• For energy conservation, energy efficient BEE 5 Star rating electrical appliances have been procured.

• Environment Management System/ISO 14001 is also being implemented.

At Nathpa Jhakri HPS, all household old tube fixtures consuming more energy have been replaced with LED type fixtures around residential colonies, and old ACs at transit camps have been replaced with new energy efficient ACs. In addition to the above, SJVN has put up a Grid-connected, 1 MW Solar power plant near Wadhal.

SJVN Corporate Headquarters (CHQ) is designed and constructed with state-of-the-art technology with green building concept equipped with Sewage treatment plant of 90 KLD per day capacity for waste water recycling, rain water harvesting system with capacity of 50 kL, natural lighting with provision of sky light glasses, fully centralized HVAC system, intelligent/automatic sensor-controlled illumination system for conservation of electricity, etc.

• 120 kWP On-Grid Solar Power Plant has been installed and successfully operating in CHQ, Shimla. Further, Water Solar Heating System of 5000 Ltr. Capacity has also been installed.

• A recycling plant is also installed at CHQ building to convent kitchen waste such as vegetables, fruits etc. into compost which can be used to condition and the soil. Owing to these efforts, CHQ Building has obtained four-star GRIHA rating.

• AAC blocks (eco-friendly building material that comes from industrial waste and is made from non-toxic ingredients) are being used in construction of Auditorium Block and Guest House.

• Bio-Diversity Park, has been developed near Corporate head quarter in association with Municipal Corporation Shimla to create mass awareness and sensitivity for the environment.

• Beautification of SJVN CHQ Complex is in progress and work involves various horticulture activities. In this regard, 50 golden cypress trees have been planted on the road from National Highway to Auditorium block.

• Energy Audit of SJVN CHQ has been conducted in FY 2021-22 and is being conducted regularly every three years and recommendation of Energy Audit like improvement of power, use of LED lights in automation system etc. are being implemented.

SJVN celebrated World Environment Day on 5th June 2022 across its projects and offices with much zeal and fervour. Pledge for environment protection/conservation and talks on environmental aspects were also delivered by heads of project / power stations to spread awareness and sensitivity about environmental issues among employees. In addition to above, Slogan-writing, Drawing, Photography, best out of waste competitions, awareness programmes, etc. were also undertaken and environmental awareness films were also screened for employees. Large scale plantation programs were also undertaken across various project sites.

11. CSR AND SUSTAINABILITY

An annual report of Corporate Social Responsibility, highlighting the Company''s CSR Policy, details of expenditure on CSR and overview of projects/ programs/ activities undertaken by the Company during FY 2022-23 and Impact Assessment in format prescribed under Companies (CSR Policy) Rules 2014 is annexed as Annexure-V and forms an integral part of this Directors'' Report.

12. REHABILITATION AND RESETTLEMENT

SJVN, being conscious of its responsibilities towards society, is committed to execute and operate power projects in a socially responsible manner by adopting generous Resettlement & Rehabilitation measures for the benefits of project affected families (PAFs) and by investing in the socio-economic development of communities to continually minimize potential negative impacts as well as to establish the sustainable positive impact of projects on them.

Well before any project is taken up for execution, Social Impact Assessment (SIA) study is carried out to ensure that the potential socio-economic benefits accrued from the project outweigh the likely social costs and adverse social impact. Public consultation meetings with the stakeholders are held by the project authorities to make the local communities aware of developmental facilities to be created in the fields of health, education, sanitation, drinking water, approach roads and other community assets of the project and their benefits to the society. Subsequently, the R&R plan is devised based on conclusive findings derived from the socio-economic survey carried out by an independent expert agency. The R&R plan thus devised and approved essentially prescribes mitigation measures for reconstruction and regeneration of economies of the PAFs. During the implementation stage of the R&R plan, regular monitoring of R&R activities is conducted through an external independent agency to ensure the timely extension of R&R benefits to the PAFs. Subsequently on completion and implementation of the R&R plan, social impact evaluation is carried out by an independent external agency to assess various tangible and intangible benefits accrued in the area of socio-economic development. To have constant interaction with local people, a Project Information Centre is set up at project level.

Nathpa Jhakri Hydro Power Station (NJHPS) and Rampur Hydro Power Station (RHPS): The R&R plans have been successfully implemented in 1500 MW Nathpa Jhakri Hydro Power Station (NJHPS) and 412 MW Rampur Hydro Power Station (RHPS) both located in Himachal Pradesh. Several R&R benefits like employment subject to availability of employment and suitability of the candidates or financial assistance in place of employment to

start a tailor-made self-business, land for land, constructed house in rehabilitation colony or house plot with construction assistance or cash package with shifting allowance and shifting house rent, shop plot for shop in market complex, shop in project township, cattle shed grant Rehabilitation grant to landless families (i.e '' 45,000 to 65,000) as per the eligibility have been provided to the PAFs. Land based employment opportunity is encouraged through farm training and non- land based employment opportunity is encouraged through skill development training and financial assistance for selfbusiness. To support the weaker section of the society financial assistance to vulnerable group families is being provided. To promote indirect employment, vehicles required for Project works are hired from PAFs and Locals on preference basis and petty contracts are offered to PAFs/ local contractors on a preference basis. In addition to these benefits, with a view to develop the area infrastructure community development facilities are provided to the local communities. The infrastructure development work includes construction of village paths, roads, rain shelters, bus stand, Panchayat Bhawan, Community Centers, Mahila Mandal Bhawans, Crematorium etc. The community development works includes health, education, safe drinking water & sanitation etc. The health facility is provided through mobile health van, project hospitals and health awareness campaign. Promotion of education is being done through aiding school infrastructure, Technical Education Scheme to the local youth, Merit scholarship schemes, promotion of sport infrastructure for the students etc. Drinking water facility is being provided through renovation of natural water sources, financial assistance to Jal Shakti Vibhag for laying of water supply scheme (WSS) and lying of sewerage system. The local farmers around RHPS have been adequately compensated for the reduction in crop yield as per the crop compensation policy of the government of HP. The PAFs under RHPS are being provided 100 units of free electricity benefit per month for ten years as per the MoP guidelines. Besides this, funds of ''55.26 Cr. have been spent for carrying out various infrastructural development works in RHPS area under the Local Area Development Fund (LADF) policy of GOHP.

Naitwar Mori Hydro Electric Project (NMHEP): The R&R plan is in the execution stage in 60 MW Naitwar Mori Hydro Electric Project (NMHEP), Uttarakhand. Various provisions of R&R Plan

i.e rehabilitation grant, subsistence allowance, widow pension, scholarship to the wards of PAFs, technical education scheme to the local youth, grant on birth of girl child, grant on marriage of daughter etc. are being provided. The Project R&R Grievance Redressal Committee has been constituted under the Chairmanship of R&R Administrator Uttarkashi. As per the recommendations of the Committee, various infrastructural and community development works like construction of community hall, marriage halls, construction of toilets, installation of solar street lights & solar fencing, infra aids to the schools, modern agricultural and horticultural equipments to the farmers etc. are being carried out in the project affected villages. Simultaneously, for the concurrent monitoring of implementation of aforesaid provision of R&R Plan of NMHEP, the External Monitoring Committee i.e M/s DAV PG College Dehradun has been appointed. The report is being finalized.

Luhri Hydro Electric Project Stage-I (LHEP Stage-1): The land acquisition process under RFCTLAR&R, Act, 2013 and mutual negotiation has been completed. The R&R Plan for project affected families (PAFs) have been approved by GoHP and being implemented.

Sunni Dam Hydro Electric Project (SDHEP): The R&R plan has been prepared and approved by GoHP. The same is being expedited with GoHP for implementation.

Dhaulasidh Hydro Electric Project (DSHEP): Land compensation has been paid to the land owners. The entitlement for R&R benefits are being determined by GoHP.

Buxar Thermal Power Project (BTPP): In 1320 MW Buxar Thermal Power Project (BTPP) in Bihar, the acquisition of private land has been completed and compensation of land has been paid as per the provision under RFCTLARR Act, 2013. Rehabilitation and Resettlement policy formulated by Indian Institute of Social Welfare Business Management (IISWBM), Kolkata has been approved by Govt. of Bihar.

Jakhol Sankri Hydro Electric Project (JSHEP): In 44 MW Jakhol Sankri Hydro Electric Project (JSHEP) Uttarakhand, the Land acquisition as per RFCTLARR Act, 2013 is under process. The R&R plan for Project Affected Families (PAFs) has been prepared in line with RFCTLARR Act, 2013 and approved by Govt of Uttarakhand. Devsari Hydro Electric Project (DHEP): In Devsari Hydro Electric Project (DHEP)194 MW, Uttarakhand, the land acquisition process under RFCTLARR Act, 2013 is in progress. The R&R plan for Project Affected Families (PAFs) is prepared in line with RFCTLARR Act, 2013 and is approved by the Govt. of Uttarakhand. District Administration, Govt.UK is collecting the details of PAFs for R&R entitlements.

Social Impact Evaluation (SIA): The Social Impact Evaluation (SIA) studies of R&R implementation of NJHPS was carried out by the Agriculture Economic Research Centre (AERC) of HPU Shimla. Similarly, SIA studies have been carried out in RHPS by RITES. The reports reveal that R&R implementation in the project affected areas has substantially enhanced the socio-economic standard of the local population on various development parameters like economy, health, education etc.

The World Bank Mission has monitored the R&R activities carried out in NJHPS and RHPS. For NJHPS they have appreciated the R&R implementation as under:

‘The success of the resettlement activity undertaken in this project is quite rare for India, and can be considered as one of the best examples of resettlement implementation in bank assisted projects in India. It should be considered as an example for other project.''

13. RESEARCH AND DEVELOPMENT

SJVN has been continuously striving for excellence in its core area of power generation by showing commitment towards research and development, innovation, technology up-gradation, and product development.

Specific areas in which R&D/Innovations have been carried out during FY 2022-23 are:

1. To reduce the downtime of Annual Machine Maintenance from 100 days to 20 days, R&D works of Bottom Removal of Kaplan Turbine & its components is being carried out at LHEP-1 Project.

2. Collaboration with CPRI under R&D Scheme of MoP on “Development of IoT enabled Online Health Monitoring and Maintenance System at Rampur Hydro Power Station.”

3. Pilot project for producing 20 NM3/hr Green Hydrogen and 25 kW of Green Power at NJHPS, Jhakri.

4. To find out optimum lift height for pre-cooling condition, a study for the optimum height of lift for mass concreting in concrete dam structures is being carried out in collaboration with IIT Mandi.

5. SJVN has established partnerships with several academic institutions for the fiscal year 2022-23, as detailed below: -

a. MOA signed with IIT Madras on 28.07.2022 for conducting Studies on using of Alternative material other

than tungsten carbide/HVOF in Hard Coating for the development of improved Silt and Cavitation Erosion Resistance Coatings for Hydro Turbine components.

b. MOU signed with NIT Hamirpur on 05.11.2022 for establishing SJVN Chair Professorship for the period of 6 years on research and development, teaching and training in the areas of Hydro, Pumped Storage Hydro (PSH), Solar, Wind, Hydrogen and Battery Energy Storage System (BESS) development in the country.

c. MOU signed with IIT Delhi in December, 2022 Conducting R&D studies on High performance concrete for high sluice spillways of Dams and Barrage.

d. MOA signed with IIT Roorkee on 21.03.2023 for Development of Prototype Hydrokinetic Turbine based on lab scaled model.

Apart from above R&D, 23 no. innovative/ technological upgradation measures were also taken at Project sites & Corporate Headquarter of SJVN to enhance the operational efficiency of the company. The total expenditure by SJVN for R&D/ innovations initiatives works for the FY 2022-23 was INR 14.80 Cr. (including taxes).

14. HUMAN RESOURCES

The total Manpower on the rolls of SJVN (Direct Recruits/Absorbed Employees and Fixed Term Appointees) as on 31.03.2023 was 1526 and the strength of HPSEB/HP Govt. Employees on deputation on the above date was 41.

(i) Representation of Women employees:

Group

Total

Employees as on 31.03.2023

Number of Women employees

Percentage of overall staff strength

SJVN Direct / Absorbed /FTAs

1526

167

10.94

Deputationist from HPSEB/GOHP

41

3

7.31

Total

1567

170

10.84

(ii) Representation of Physically Challenged Employees:

Group

Total

Employees as on 31.03.2023

Physically

Challenged

Employees

Percentage of Physically challenged employees

VH

HH

OH

Total

SJVN(DR Absorbed FTAs)

1526

6

9

20

35

2.29

(iii) Representation of SC/ST & OBC employees:

Group

Total

Employees as on 31.03.2023

Representation

SC

SC%

ST

ST%

OBC

OBC%

SJVN(DR

Absorbed

FTAs)

1526

331

21.7

100

6.6

237

15.53

Organization gives utmost importance to the enrichment of employee skills and knowledge and is committed to continuous growth and development. During the financial year 2022-23, 07 Online programs, 86 In house programs and 100 External programs were conducted.

The trainings were imparted through organizations of national repute like IIMs, IITs, NPTIs, NAHRD, ESCI, ASCI, CBIP, and Tunneling Association of India, India Energy Storage Alliance (IESA), The Institute of Company Secretaries of India (ICSI), Directorate of Energy, H.P, Institute of Non- Destructive Testing, Kolkata, National Institute of Hydrology, etc.

The training programs were conducted on topics like Ultrasonic Testing, Policy & Procedures on GFR Rules, GeM & E-Procurement, Latest Investigation, Repair & Rehabilitation Technology for Dams, Importance of Water Quality Assessment for Durability of Concrete Structures, Emotional intelligence for Performance Management, Tunnelling with Tunnel Boring Machines, Preventive Vigilance, Solar, Wind, Thermal Power Plant Operation & Maintenance, Corporate Social Responsibility, Corporate Governance, AutoCAD, HV-Gas Insulated Switchgear, Power System Protection and Coordination, Training Program on Contract Management with Particular reference to Dispute Resolution Mechanism Pump Storage Technology & Safety by Design, Operations & Maintenance of Thermal Power Plant, Primavera P6, Workshop on Corporate Governance & Resilient Leadership for SJVN Management & Sr. Officers, ARC GIS, Linking Spirituality with Management, 5S & Kaizen and Gender Sensitivity, Power Trading & Transmission for SJVN, Power Plant Digitalization, Application of Geophysical Methods for Water Resource Projects, Training on Hydrologic Hydrodynamic Flow Analysis using HEC-HMS& HECRAC etc. to mention a few.

1. To effectively percolate the Shared Vision and motivate employees, a series of training programs namely ‘Drishti- Sharing the New Shared Vision'' were organized for all SJVN Executives.

2. Motivational Talk(s)- 03 No. programs were organized through renowned Motivational Speaker(s) namely, Mr. Pawan Girdhari Aggarwal, Mr. Shiv Khera and Mr. Chetan Bhagat, which were also relayed through Facebook live for employees posted at various SJVN''s Projects/offices located Pan India and abroad.

3. Training program(s) on occasion of International Women''s Day 2023 were organised at two locations viz Shimla and Rampur (i.e. on 7th March, 2023), which were attended by SJVN''s Women employees posted at various projects/offices located across.

15. INDUSTRIAL RELATIONS

Regular Meetings are held with the representatives of the various Associations / Unions to sort out the local issues as well as policy related matters. Recreational, Cultural and Sports functions on different occasions were also held, thus, resulting in better employee-employer relations and cordial industrial relations were maintained during the year.

16. STATUTORY AND OTHER INFORMATIONS

The information required to be furnished as per the Companies Act 2013, SEBI (Listing Obligations & Disclosure Requirements) Regulations, 2015, Government Guidelines, and Code of Corporate Governance of your Company, on the following matters is placed at respective annexures and form integral part of Directors Report: -

a. Management Discussion and Analysis - Annexure - I

b. Report on Corporate Governance - Annexure - II

c. Certificate from Practicing Company Secretary on Corporate Governance- Annexure - III

d. Information on Conservation of Energy, Technology Absorption and Foreign Exchange earnings and out go - Annexure - IV

e. Annual Report on Corporate Social Responsibility & Sustainability - Annexure - V

f. Business Responsibility and Sustainability Report -Annexure- VI

g. Certificate regarding Non-Disqualification of Directors -Annexure - VII

h. Secretarial Audit Report - Annexure - VIII

17. DIRECTORS’ RESPONSIBILITY STATEMENT

The Directors'' state that:

• in the preparation of the annual accounts for the year ended March 31, 2023, the applicable Accounting Standards read with requirements set out under Schedule III to the Act, have been followed along with proper explanation relating to material departures, if any;

• the Directors have selected such accounting policies and applied them consistently except as disclosed in the Notes on Accounts and made judgment and estimates that are reasonable and prudent so as to give a true and fair view of the state of affairs of the Company as at March 31,2023 and of the profit of the Company for the year ended on that date;

• the Directors have taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities;

• the Directors have prepared the annual accounts on a ‘going concern'' basis;

• the Directors have laid down internal financial controls to be followed by the company and that such internal financial controls are adequate and are operating effectively; and

• the Directors have devised proper systems to ensure compliance with the provisions of all applicable laws and that such systems are adequate and operating effectively.

18. DECLARATION OF INDEPENDENCE BY INDEPENDENT DIRECTORS

Your Company has received declarations from all the Independent Directors confirming that they meet the criteria of independence as provided under Section 149(6) of the Companies Act, 2013 and under Regulation 25 (8) of Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015.

19. SECRETARIAL STANDARDS

The Company has complied with the applicable Secretarial Standards during the Financial Year ended 31.03.2023.

20. SEXUAL HARASSMENT PREVENTION

SJVN has implemented the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013 in its entirety.

Internal Complaints'' Committees as per the provisions of the act have been constituted at Corporate Office and Projects sites of SJVN.

Summary of Sexual harassment issues raised, attended and dispensed during the year 2022-23 has been disclosed in Report on Corporate Governance.

21. RISK MANAGEMENT FRAMEWORK

SJVN has implemented Risk Management Framework as per ISO 31000:2018 consisting of the following: -

1. Risk Identification and Assessment: SJVN conducts thorough risk identification and assessment processes across its projects, and departments. This includes evaluating both internal factors (such as operational risks, financial risks, and compliance risks) and external factors (such as market risks, regulatory risks, and environmental risks).

2. Risk Mitigation Plan: Once risks are identified, SJVN develops risk mitigation plan for each risk. These plans involve implementing preventive measures, establishing control mechanisms, and implementing best practices to minimize the likelihood and impact of risks. For opportunities, SJVN devises action plans to maximize their potential benefits and value.

3. Regular Risk Review and Reporting: SJVN conducts periodic reviews of risks and opportunities to ensure their relevance and effectiveness. Frequency of Project level Risk steering committee meeting is quarterly basis and for corporate level Risk steering committee meeting is half yearly basis. The Risk Management committee of SJVN board convenes on biannual basis.

4. Preventive Actions and Continuous Improvement: SJVN emphasizes the implementation of preventive actions to address potential risks proactively. This involves conducting risk assessments, identifying control gaps, and implementing measures to strengthen controls and reduce the likelihood of risks occurring. The organization also fosters a culture of continuous improvement, regularly evaluating and enhancing risk management practices.

5. Training and Awareness: SJVN provides training and awareness programs to its employees to enhance risk management capabilities. This ensures that employees across the organization understand their roles and responsibilities in managing risks and capitalizing on opportunities.

22. SECRETARIAL AUDIT

The Board appointed Shri Santosh Kumar Pradhan, Practicing Company Secretary, to conduct Secretarial Audit for the Financial Year 2022-23. The Report of the Secretarial Auditors for the year ended 31.03.2023 is placed at Annexure-VIII. Reply of Board to observations of Secretarial Auditor is placed at Annexure-IX.

23. STATUTORY AUDIT

M/s APT & Co. LLP, Chartered Accountants, were appointed by Comptroller & Auditor General as Statutory Auditors of the Company for the financial year 2022-23.

The Report of the Statutory Auditors to the Members on the Standalone and Consolidated Accounts for the year ended 31.03.2023 is placed at Annexure-X and Annexure-XI respectively. Reply of Board to observations of Statutory Auditor on Internal Financial Control on the Standalone and Consolidated Accounts are placed at Annexure-XII and Annexure-XIII respectively. Observations/ Comments of the Comptroller and Auditor General (C&AG) of India on the Standalone and Consolidated Accounts for the year ended 31.03.2023 are placed at Annexure-XIV and Annexure-XV respectively. Comments of C&AG being NIL the reply by the Board thereto is not applicable.

24. ANNUAL RETURN

The Draft Annual Return in Form MGT-7 as required under Section

92(3) of the Companies Act, 2013 can be accessed at Investor Relation Section on SJVN website www.sjvn.nic.in.

25. COST RECORDS AND AUDIT

Pursuant to the Central Government directions to audit Cost Accounting Records as maintained by the Company, your Company appointed M/s A.J.S. & Associates, Cost Accountants, as Cost Auditor for the financial year 2022-23. The Cost Audit Report for the year ended 31st March 2022 was filed with MCA on 26.09.2022.

26. INTERNAL FINANCIAL CONTROL SYSTEM

Internal controls are the mechanisms, rules, and procedures implemented by a company to ensure the integrity of financial and accounting information, promote accountability and prevent fraud. Financial controls are processes, policies, and procedures that are implemented to manage finances.

The company has adequate internal control system and the transactions/processes are guided by delegation of powers, policies, rules, guidelines and manuals framed in compliance with relevant laws and regulations. The organizational structure is well defined in terms of structured authority/responsibility involved at each particular hierarchy/level.

The company has sufficient internal control over financial reporting to ensure assurance regarding the reliability of financial reporting and in the preparation of financial statements for external purposes in accordance with generally accepted accounting principles.

In order to ensure adequacy of internal control system, internal audit is conducted by the independent Chartered Accountants firms in close co-ordination with company''s own internal Audit Department. The internal Audit process includes review and evaluation of effectiveness of existing processes, controls and compliances. It also ensures adherence to rules, procedures, policies and systems and mitigation of the operational risks perceived for each area under audit.

It is also informed that significant Audit observations and Action Taken reports are placed before the Audit Committee headed by Independent Directors. The recommendation and directions of the Audit Committee are carried out and complied with.

27. RELATED PARTY TRANSACTIONS & POLICY

In compliance with the provisions of Regulation 23 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 and Section 188 of Companies Act 2013, the company has formulated a Policy on Materiality of Related Party Transactions and dealing with Related Party Transaction, duly approved by the Board of Directors and the same has come into force with effect from 1st October 2014.

All contracts/ arrangements/ transactions entered by the company during the financial year with related parties were in the ordinary course of business and on arm''s length basis. During the year, the company had not entered into any contract/ arrangement/ transaction with related parties, which could be considered material in accordance with the policy of the company on materiality of related party transactions or provisions of SEBI (LODR) Regulations, 2015. Your attention is drawn to the Financial Statements, which sets out the Related Party Disclosures under Note no. 2.46.

The Policy on Materiality of Related Party Transactions and dealing with Related Party Transaction has been disclosed on website of the Company and may be accessed at https://sjvnindia.com/ UploadFiles/Page/1215774526 PageDocument 845666099 PageDocument Policv%20on%20Materialitv%20of%20and%20 Dealing%20with%20Related%20Party%20Transactions.pdf.

28. CONSOLIDATED FINANCIAL STATEMENTS

In accordance with the Indian Accounting Standard (Ind AS)-110 on Consolidated Financial Statements read with Ind AS-111 on Joint Agreements and Ind AS-112 on Disclosure of Interest in other entities, the Audited Consolidated Financial Statements are provided in the Annual Report. Directors Report / Financial Statements in respect of following Subsidiary Companies are also included in this Annual Report: -

a) SJVN Thermal Private Limited.

b) SJVN Arun-3 Power Development Company Private Limited, Nepal.

c) SJVN Green Energy Limited.

Statement containing salient features of the financial statements of Subsidiaries/ Joint Ventures of SJVN Ltd. pursuant to first proviso to sub-section (3) of Section 129 read with Rule 5 of Companies (Accounts) Rules, 2014, in form AOC-I forms part of the Consolidate Financial Statements.

29. DETAILS OF DIRECTORS OR KMP APPOINTED/ RESIGNED

During the FY 2022-23, the following changes took place in the composition of the Board of Directors or KMP of the Company: -

a. Shri Raghuraj Madhav Rajendran, Joint Secy., Ministry of Power, Government of India (GoI) ceased as Part Time Official Director (GoI Nominee) on withdrawal of Nomination by appointing authority w.e.f. 30th November 2022.

b. Shri Ajay Tewari, Additional Secretary, Ministry of Power, Government of India (GoI) was appointed as Part Time Official Director (GoI Nominee) w.e.f. 01st December 2022.

c. Shri Ram Dass Dhiman, Additional Chief Secretary (Power) ceased as Part-Time Official Director (GoHP Nominee) on withdrawal of Nomination by appointing authority w.e.f. 31st December 2022.

d. Shri Rajeev Sharma, Secretary (MPP & Power) was appointed as Part Time Official Director (GoHP Nominee) w.e.f. 21st February 2023.

e. Dr. Shashikant Jagannath Wani was appointed as Independent Director w.e.f. 13th March 2023.

The following changes took place during the current financial year 2023-24 till the date of the Director''s Report:

Shri S.P. Bansal, Director (Civil), who was suspended by Ministry of Power, Government of india Order No. C-13011/52/2022-V&S dated 28 July, 2022 ceased as Director (Civil) consequent to attaining the age of superannuation on 31st July, 2023.

None of the Directors are inter-se related to each other.

The Board Meetings held during the Financial Year 2022-23 and the attendance of the Directors therein is mentioned in the Report on Corporate Governance.

30. BOARD LEVEL COMMITTEES

The composition of the Statutory Committees required to be constituted as per the Companies Act 2013 and the SEBI Listing Regulations and the meetings held therein are mentioned in the Corporate Governance Report.

31. KEY MANAGERIAL PERSONNEL

In compliance with Section 203 of the Companies Act, 2013, following have been designated as Key Managerial Personnel: -

1. Shri Nand Lal Sharma, Chairman & Managing Director

2. Shri Akhileshwar Singh, Director (Finance) & Chief Financial Officer

3. Shri Soumendra Das, Company Secretary

32. IMPLEMENTATION OF OFFICIAL LANGUAGE

In order to ensure the implementation of the Official Language Policy of the Govt. of India, all possible efforts have been made by the company to achieve the targets as specified by the Department of Official Language.

Under section 3.3(i) of Official Language Act cent percent documents were issued bilingually & all the letters received in Hindi were replied to in Hindi. Company''s website is already in bilingual form and it is updated from time to time.

To encourage executives and non-executives to do their entire work in Hindi, number of incentive schemes are under implementation namely Payment of increment of three months during the year, for doing his/ her whole office work in Hindi and during the year and under this scheme a total 207 Employees/ Officers were awarded cash prizes amounting to '' 13,84,140/- (Approx.).

15 Hindi workshops / seminars have been organized and 326 no. of executives and non-executives have been trained. Organising of Hindi quiz competitions on national / important occasions and other competitions (i.e. Nibhand (Essay writing), Kahani, Notingdrafting, Shabdarth gyan, Sulekh, Hindi Vyakaran Rajbhasha Niti & Shodhpatra competition) is a regular feature and besides this number of competitions were also organised during “Hindi fortnight”. In these competitions 286 no. of employees were awarded cash prizes amounting to '' 3,22,800/-.

To popularise Hindi in a big way a ‘Akhil Bhartiya Kavi Sammelan'' was organised on 22.09.2022 at Shimla, 26.09.2022 at NJHPS &

27.09.2022 at RHPS.

Half yearly meetings of the Town Official Language Implementation Committee, Shimla (Office-2) constituted for the CPSUs & Banks etc. were held on 15.07.2022 & 29.12.2022. Similarly, Rajbhasha Seminar has been organised on 23.09.2022 for TOLIC, Shimla (Office-2) employees and the awards of TOLIC Rajbhasha Shield were given to the members of TOLIC, Shimla (Office-2) on

29.12.2022 for the best performance in Official Language Hindi.

To give impetus to the multi-facet talent of employees an in-house bi-annual Hindi magazine “Himshakti” was published and circulated. Out of total expenditure on purchase of books, 89.47% of amount was spent on purchase of Hindi books.

33. AWARDS & ACHIEVEMENTS

1. 8th April 2022- SJVN conferred with 13th CIDC Vishwakarma Awards 2022 in the categories of ‘Corona Warriors Award'' and ‘Partners in Progress.''

2. 8th May 2022- SJVN conferred with ‘Most Efficient & Profitable Mini Ratna of the Year'' Award.

3. 12th May 2022- SJVN awarded NTPC Rajbhasha Shield Third Prize for best implementation of Official Language Policy during 2018-19 & 2019-20.

4. 10th June 2022- Sh. Nand Lal Sharma, Chairman & Managing Director, SJVN honoured with ‘PSU Award of the Year'' 2021.

5. 27th June 2022- SJVN bagged first position in ‘Swachhta Pakhwada Award 2022'' conferred by MOP.

6. 25th August 2022- SJVN conferred with ‘Greentech Award for outstanding achievements in Environment Protection''.

7. 28th August 2022- SJVN won Two ‘Gold Awards'' in 12th Exceed Environment, HR & CSR Awards 2022.

8. 18th January 2023- Sh. Nand Lal Sharma, Chairman and Managing Director, SJVN conferred with prestigious ‘Leading Director Award'' during 2nd Annual Greentech Awards 2023.

9. 19th January 2023- SJVN awarded ‘Greentech International Environment, Health & Safety (EHS) Best Practices Award'' 2023.

10. 20th February 2023- Sh. Nand Lal Sharma, Chairman and Managing Director, SJVN Limited honoured with ‘Individual Award for outstanding contribution for development of the Water, Power & RE Sector'' by CBIP.

34. OTHER MAJOR DEVELOPMENTS

1. 11th April 2022- DPR for 669 MW Lowe Arun HEP approved by IBN, Nepal

2. 16th May 2022- MoU for 490 MW Arun-4 Hydro Electric Project in Nepal signed in benign presence of Prime Minister of India and Nepal.

3. 24th June 2022- Corporate Head Quarters ‘Shakti Sadan'' rated Four Star by ‘GRIHA'' Council.

4. 5th August 2022- SJVN secured 200 MW Solar Power Project through e-reverse auction by MSEDCL.

5. 24th August 2022- SJVN signed MoU with Govt. of Rajasthan for developing 10 GW renewable energy projects/parks in the state.

6. 15th September 2022- Sh. Nand Lal Sharma, Chairman & Managing Director, presented with Token of Appreciation in recognition of his valuable contribution for the development of energy sector in Nepal.

7. 18th October 2022- MoU signed between SGEL and Assam Power Distribution Company Limited for developing 1000 MW Floating Solar Power Projects in Assam.

8. 19th October 2022- SJVN obtained 105 MW Floating Solar Project through e-reverse auction held by MAHAGENCO.

9. 24th November 2022- Successful commissioning of 75 MW Parasan Solar Power Project, Uttar Pradesh.

10. 25th November 2022- SJVN is now ISO 31000:2018 Company with successful implementation of Risk Management System.

11. 1st December 2022- SJVN signed MOU for 3000 MW Hydro & Solar Power Projects in Odisha.

12. 3rd December 2022- SJVN secured 200 MW Solar Power Project in Maharashtra.

13. 23rd December 2022- SJVN won 100 MW Wind Power Project @ '' 2.90 per unit on build own and operate basis through e- reverse auction by SECI.

14. 3rd January 2023- Hon''ble President of India, Smt. Droupadi Murmu, laid the foundation stone of SJVN''s 1000 MW Bikaner Solar Power Project at Jaipur, Rajasthan.

15. 4th January 2023- CCEA approved the investment of '' 2614 crore for 382 MW Sunni Dam Hydro Electric Project in Himachal Pradesh.

16. 25th February 2023- SJVN bagged ‘CBIP Award for Best Performing Utility in Hydro Power Sector''.

17. 15th March 2023- SJVN entered into an MoU with IOCL for formation of Joint Venture for developing of renewable energy projects & energy storage systems.

35. PARTICULARS OF LOANS GIVEN, INVESTMENTS MADE GUARANTEES GIVEN AND SECURITIES PROVIDED UNDER SECTION 186 OF COMPANIES ACT, 2013

Particulars of loans given, investments made, guarantees given and securities provided along with the purpose for which the loan or guarantee or security is proposed to be utilized by the recipient are as under: -

Particulars

Details

Loans given

Refer Note 2.6 and 2.14 to standalone financial statements

Investments made

Refer Note 2.5 to standalone financial statements

Guarantees given

Refer Note 2.50

Securities provided

Nil

36. DETAILS OF NON-CONVERTIBLE SECURITIES ISSUED

In the previous year (FY 2021-22) Company has raised the fund of '' 1000 Cr. through private placement of Non-Convertible, Redeemable Debenture at a coupon rate of 6.10% p.a having maturity at 5-year tenor. No new NCD raised in the FY 2022-23.

37. DETAILS OF EXTERNAL COMMERCIAL BORROWINGS (ECB)

SJVN has tied up the USD 500 Million from PNB Dubai in FY 202122 out of which USD 300 Million has been disbursed and utilized towards capital expenditure in ongoing projects. Further, during FY 2022-23, Company has decided not to avail the balance amount of USD 200 million. The total outstanding borrowings of PNB, Dubai was '' 2431.64 Cr. as on 31.03.2023 (Previous Year 2230.28Cr.)

In addition to above during the FY 2022-23, SJVN has also tied-up the ECB amounting to JPY 15 Billion at an interest rate of TORF Plus 1.10 Bps p.a. and upfront processing fee of 0.80% of total commitment. The entire ECB will be utilized to meet out the Capital expenditure of 100 MW Raganesda Solar Power Power Project in the state of Gujarat and 90 MW Omkareshwar Floating Solar Power Project in the state of Madhya Pradesh. The loan amount is yet to be disbursed.

The outstanding foreign currency loan from World Bank for Financing RHPS was ''1423.92 Cr. as on 31.03.2023 (Previous Year '' 1534.40 Cr.)

38. GENERAL

Directors of your Company state that no disclosure or reporting is required in respect of the following items as there were no transactions/ events on these items/ matters during the year under review:

1. The Company has not accepted any deposits during the year under review.

2. Issue of equity shares with differential rights as to dividend, voting or otherwise.

3. Neither the Managing Director nor the Whole-time Directors of the Company receive any remuneration or commission from any of its subsidiaries.

4. No significant or material orders were passed by the Regulators or Courts or Tribunals which impact the going concern status and Company''s operations in future.

5. There have been no Material Changes and Commitments affecting the financial position of the company which have occurred between the end of the financial year 2022-23 and the date of this report.

6. The company has not made any buyback of shares during the year under review.

7. There have been no changes in the nature of business of the company during the year.

8. No application was made or any proceeding was pending against SJVN Limited under the Insolvency and Bankruptcy Code, 2016 during the financial year 2022-23.

39. ACKNOWLEDGEMENT

The Board of Directors acknowledge with deep appreciation, the co-operation and guidance extended by various Ministries/ Departments of the Government of India, particularly, Ministry of Power, Ministry of Finance, Ministry of External Affairs, Ministry of Environment & Forest, Central Electricity Authority, Central Water Commission, Geological Survey of India, the Government of Nepal, the Government of Himachal Pradesh, State Governments of Bihar, Uttarakhand, Gujarat, Uttar Pradesh, Maharashtra, Assam, Arunachal Pradesh, Jharkhand, Rajasthan, Punjab and Madhya Pradesh the State Electricity Boards and the World Bank.

Your Directors also convey their gratitude to the shareholders, various international and Indian banks and financial institutions for the confidence reposed by them in the Company. The Board also acknowledges and appreciates the contribution made by Contractors, Vendors, Consultants and others for achieving the planned goals of the Company.

The Board also places on record its deep appreciation of valued cooperation extended by the Office of the Comptroller and Auditor General of India and the Auditors. Last but not least, the Board commends the hard work and dedicated efforts put in by the employees of the Corporation including the employees on deputation at all levels.

For and on behalf of Board of Directors

mj),

Date: 9th August, 2023 (Nand Lal Sharma)

Place: New Delhi Chairman and Managing Director

DIN:03495554


Mar 31, 2022

Your Directors are pleased to present the Thirty Fourth Directors’ Report of the Company for the year ended March 31,2022 along with the Audited Statement of Accounts, Report of Auditors and Comments of the Comptroller and Auditor General of India.

The following financial highlights for the year ended 31st March 2022 briefly encapsulate the performance of your company: -

1. FINANCIAL HIGHLIGHTS ('' in Lakh)

PARTICULARS

STANDALONE

CONSOLIDATED

2021-22

2020-21

2021-22

2020-21

INCOME

Revenue from Operations

242196

249083

241700

248539

Other Income

20358

72224

21778

73745

Total Income

262554

321307

263478

322284

EXPENSES

Employees’ Benefits Expense

28941

32055

29062

31722

Finance Cost

16134

(285)

16134

(285)

Depreciation and Amortization Expenses

40429

39327

40429

39327

Other Expenses

40380

36882

39994

36929

Total Expenses

125884

107979

125619

107693

Profit/ (Loss) before exceptional items and tax

136670

213328

137859

214591

Exceptional items

2326

29344

2326

29344

Profit before Share in net profit of Joint venture/ Associates, net movement in regulatory deferral account balance and tax

135533

185247

Share in Profit of JVs & Associates

-

-

449

394

Profit before net movement in regulatory deferral account balance and tax

134344

183984

135982

185641

Tax Expenses:

Current Tax

22909

31627

23286

32012

Adjustments relating to earlier years

33

4

Deferred Tax

9301

16191

9301

16191

Profit before regulatory deferral account balances

102134

136166

103362

137434

Net movement in regulatory deferral account balances (Net of tax)

(4382)

27138

(4382)

27138

Profit for the Year

97752

163304

98980

164572

Other comprehensive Income

Items that will not be reclassified subsequently to profit or loss

- Remeasurement of the net defined benefit liability/ asset

(197)

(255)

(197)

(255)

- Income tax on above item

34

89

34

89

Total

(163)

(166)

(163)

(166)

Total Comprehensive Income for the period

97589

163138

98817

164406

2. GENERATION

Gross Energy Generation from various operational plants of the Company during FY 2021-22 is as under: - (Million Units (MU)

Plant

Design Energy

2021-22

2020-21

NJHPS

6612

7067.373

7098.925

RHPS

1878.08

1981.193

1995.335

KWPS

85.65

47.230

48.261

CSPS

7.68

8.595

7.219

(Million Units (MU)

Plant

Design Energy

2021-22

2020-21

SWPP

120.05

102.677

73.750

Wadhal Solar

1.5

1.404

-

Total

8705.41

9208.472

9223.490

Generation Records & Milestones achieved during FY 2021-22

include:-

• SJVN achieved the Highest Ever Monthly Generation of 1580.426 MU in July, 2021 from all plants.

• NJHPS achieved the Highest Ever Monthly Generation of 1216.565 MU in July, 2021.

• NJHPS achieved Highest Ever Daily Generation of 39.493 MU on 16.08.2021.

• RHPS achived Highest Ever Monthly Generation of 335.695 MU in July, 2021.

• Highest Ever Quarterly (Q2) Generation of 4404 MU achieved in 2nd quarter FY 2021-22 surpassing the previous best of 4392 MU in the corresponding period of Last Year.

• Highest Ever Quarterly (Q3) Generation of 1480 MU achieved in 3rd quarter of FY 2021-22 surpassing the previous record of 1344 MU of FY 2019-20.

3. REVENUE AND PROFITS

The standalone revenue from operation decreased by ''68.87 crore to ''2421.96 crore during the financial year 2021-22 compared to ''2490.83 crore during the previous year. The standalone Profit After Tax (PAT) decreased by ''655.52 crore to ''977.52 crore against ''1633.04 crore for the previous year.

The Subsidiary and Joint Venture companies are under Survey & Investigation/ Construction except CPTC, which is in operation. Consolidated accounts with the subsidiary & joint venture companies have resulted in increase in profit of consolidated group by ''12.13 crore mainly due to inclusion of profit of SJVN Arun-3 Power Development Company Pvt. Ltd. and proportionate share of profit of CPTC.

4. TRANSFER TO RESERVES

During the year no amount was transferred to Reserves of the Company.

5. DIVIDEND

During the year, an interim dividend of ''1.15 per share has been paid in the month of February 2022. In addition, your Board has recommended a final dividend of ''0.55/- per Share. Thus, subject to your approval, a total dividend of ''1.70 per share (''668.07 crore) is proposed to be paid for FY 2021-22 against ''2.20 per share (''864.55 crore) paid during the previous year.

6. PROGRESS OF PROJECTS (HYDRO & THERMAL)

I. Projects under Construction: -

i) Arun-3 HEP (900 MW):

Arun-3 Hydro Electric Project (900 MW) is located on Arun River in Sankhuwasabha District of Eastern Nepal. The Project is run-of-the-river scheme with 4 hours peaking and is designed to generate 3924 MU energy annually. SJVN bagged the Project through International Competitive Bidding. Memorandum of Understanding for the execution of this Project was signed with Government of Nepal (GoN) on 02.03.2008. The Project was allotted to SJVN on BOOT basis, to be operated by SJVN for 25 years after the commissioning and thereafter it will be handed over to the Government of Nepal. SJVN Arun-3 Power Development Company Pvt. Ltd (SAPDC) was registered on 25.04.2013 under Nepalese Companies Act, 2063 with an aim

to plan, promote and execute the Project.

Techno-Economic approval of the Project was accorded by CEA, Government of India (GoI) on 09.06.2014. Project Development Agreement (PDA) was signed with Investment Board of Nepal (IBN), GoN on 25.11.2014. As per the PDA, Project is scheduled to be completed within 5 years reckoned from the financial closure. Financial Closure was achieved on

06.02.2020 for ^6,333.48 Crores through consortium of five Indian and two Nepalese banks.

Environment Impact Assessment report of the Project was approved by Ministry of Science, Technology & Environment, GoN on 12.08.2015. Private land required for the Project has been registered in the name of SAPDC. Lease agreement for diversion of 96.97 ha forest land was signed on 23.08.2017 and for balance 26.25 ha land lease agreement was signed on

06.02.2018.

Government of India has accorded investment approval for the Generation component of the Project at an estimated cost of ^5,723.72 Crores at May 2015 price level. Government of Nepal has issued Generation license and Transmission license on

04.05.2018 and 12.02.2019 respectively.

Hon’ble Prime Ministers of India and Nepal jointly laid the foundation stone of this Project on 11.05.2018. Main works are divided into four packages namely- Dam Works and 3.1 km HRT (C-1 Package); 8.76 km HRT, Surge Shaft, Power House, TRT (C-2 Package); Hydro Mechanical Works (C-3 Package) and Electro Mechanical Works (C-4 Package).

Civil Package-1 comprising of Civil Works in Dam complex area and 3.1 km Head Race Tunnel (HRT) was awarded to M/s Jaiprakash Associates Ltd. on 22.09.2017. Work is in progress at all the fronts. Diversion of River was completed on

01.02.2021. Dam excavation in left bank, right bank and Dam pit is in progress and 96% has been completed. Intake tunnels have been completed and construction of Intake structure is in progress. HRT heading in this package has been completed and 50% benching has also been completed. Overt lining is also in progress with 25% being already completed.

Civil Package-2 comprising of Civil Works in Power House and 8.6 km Head Race Tunnel (HRT) was awarded on 19.03.2018 to M/s Patel Engineering Ltd. and Contract agreement was signed on 29.03.2018. All access adits to HRT, Power House, Pressure Shafts, Machine Hall, Transformer Hall and Butterfly Valve House have been completed. Excavation of Transformer Hall, Butterfly Valve House and Collection Gallery have been completed. Progress at all other fronts is in advance stage. 99% excavation of Machine Hall and 31% excavation of Surge Shaft has been completed. Pressure Shafts and TRT is being excavated. Excavation and lining of HRT is in progress; 54% heading, 11% benching and 3% overt lining has been completed. Overall in both C-1 and C-2 packages 66% heading and benching excavation of HRT have been completed.

HM Package and EM Package were awarded on 11.04.2018 and 30.04.2018 respectively. Procurement/ fabrication of different components is in advance stage. Supply of HM and EM components is in progress.

Construction Power: Construction of 33 kV Transmission Line (46 km) for Construction Power has been completed. Line has been charged upto 30 km and charging of balance line is in progress.

Power Evacuation System of Arun-3 HEP: Power Evacuation system consists of 310 km long 400 kV DC Transmission Line from Diding (Project area) in Nepal through Dhalkebar to Muzzafarpur, India. However, the Substation within India is changed to Sitamarhi. Nepal portion of 217 km from Arun-3 Power House (Diding) to Bathnaha (Nepal Border) is being

constructed by SAPDC. Government of India accorded investment approval amounting to ^1,236.13 Crores at June, 2017 price level on 08.03.2019 for the Nepal portion of Transmission Line to be constructed by SAPDC.

MoU has been signed with PGCIL for Project Management consultancy for execution of Transmission Line stretch in Nepal. Construction work is being carried out through five packages. All packages i.e. two Tower packages, one Substation package and two Conductor packages have been awarded and the work is in progress. 33% Tower foundations & 22% erection of Towers have been completed and balance work is in progress.

ii) Naitwar Mori HEP (60 MW):

Naitwar Mori Hydro Electric Project (60 MW) is located on Tons River, a major tributary of Yamuna in Uttarkashi district of Uttarakhand. It is designed as run-of-the-river Project and has a potential to generate 213 MU energy in a 90% dependable year.

Memorandum of Understanding for execution of Naitwar Mori HEP was signed with the Government of Uttarakhand (GoUK) on 21.11.2005. Techno-economic approval of the Project was accorded by CEA, GoI on 02.03.2010. Environment clearance was accorded on 16.06.2016 and Forest clearance Stage-II on

05.08.2016. For diversion of Forest land required for the Project, lease agreement was signed on 01.12.2017. Investment approval for an estimated cost of ?648.33 Crores was accorded by GoI on 16.10.2017 at December, 2016 price level and Project is to be completed in 48 months from date of award of Major Civil works.

Hon’ble Union Minister of State for Power (Independent Charge) and Hon’ble Chief Minister of Uttarakhand laid the foundation stone of the Project at Mori on 30.03.2018. Main works are divided into three packages namely - Civil works (Package-1) i.e. Barrage, Desilting Tank, Intake and Power Channel, 4.33 km HRT, Surge Shaft, Power House, TRT; Hydro Mechanical works (Package-2) and Electro Mechanical works (Package-3).

Main Civil Works at various fronts are in full swing. Excavation work of all major components has been completed. 99% Barrage concreting, 94% Desilting tank concreting, 83% HRT overt lining and 8% HRT invert lining has been completed. Excavation of Pressure Shaft completed and erection of Steel liner is in progress. Concrete lining of Surge Shaft is in progress and 14% has been completed. In Machine Hall, pit free of both the Units achieved and EM works are under progress. 11% lining of both Draft Tubes and excavation of both shafts for DT gates and Bus duct in Transformer Hall completed.

Hydro-Mechanical works package was awarded on

18.04.2018 to M/s GMW Private Ltd. Approval of design and drawings have been accorded. Major HM components have been received at site and supply of remaining components is in progress. Erection of Radial Gate in bay-1 and bay-2 completed and is under progress in bay-3. Erection of Steel liner in Pressure Shaft is in progress.

Electro-Mechanical works package was awarded on

11.06.2018 to M/s Voith Hydro Private Ltd. Major EM components have been received at site and supply for remaining components is in progress. EOT Crane was erected on 04.01.2022 and is functional. Pit free for both the Units has been achieved and erection of EM components is in progress.

Power Evacuation System of NMHEP: LoA for construction of 220 kV Transmission line from NMHEP Switchyard to HPPTCL network at Snail was issued to M/s KEC International Ltd. on

30.04.2021 with completion period of 12 months. Detailed survey of final route (approx. 37 km), tree enumeration work completed and connectivity granted by HPPTCL. Forest Clearance Stage-1 & 2 for Himachal Pradesh region and

Uttarakhand region FC Stage-1 have been accorded.

iii) Buxar Thermal Power Project (1320 MW):

MOU was signed between SJVN, Bihar State Power Holding Company Limited and Bihar Power Infrastructure Company for the development of 1320 MW Thermal Power Project at village Chausa in District Buxar of Bihar on 17.01.2013. SJVN acquired the Project executing Company Buxar Bijlee Company Private Limited on 04.07.2013. The name of Buxar Bijlee Company Private Limited was changed to SJVN Thermal Private Limited (STPL), a wholly owned subsidiary company of SJVN Limited on 17.10.2013.

Investment approval for carrying out pre-construction activities of the Project amounting to ?436.68 Crores was accorded by GoI on 26.05.2015. MoEF&CC accorded Environment Clearance on 28.02.2017. 1058.33 acre private land for Project components was transferred in the name of STPL on

12.12.2017. Consent to Establish (NOC) was granted by Bihar State Pollution Control Board on 03.09.2019.

CCEA accorded investment approval of Main Plant works on

08.03.2019, amounting to Rs.10,439.09 Crores. Foundation stone for the Project was laid by Hon’ble Prime Minister of India on 09.03.2019.

Main Plant works: Single EPC package was awarded to M/s L&T on 22.06.2019 and construction activities are in progress. Area grading work in Main Plant area is in progress, 81% excavation and 54% filling has been completed. 82% piles for various components, 28% structure erection for Boiler-I and 7% structure erection for Boiler-II has been completed. Structure erection work of Boiler-I & II, ESP-I & II, STG I & II, DM plant and CHP system is in progress. Chimney work is in progress and 32% has been completed.

Rail Infrastructure: The DPR for Rail infrastructure was approved by East Central Railway (ECR), Hazipur on

05.09.2019. For Coal linkage, Amrapali and Magadh coal blocks have been identified as source by Central Coalfields Ltd. (CCL) and Fuel supply agreement was signed with Central Coalfields Ltd on 27.07.2021. Work is divided into seven packages out of which 4 packages (Package- 1 to 4) have been awarded and tendering work for remaining packages is in process. Supply of Rails (Package-1) and PSC Sleepers (Package-2) has been completed. Railway siding work inside plant & railway land (Package-3) and Civil works for outside plant area & Private land (Package-4) are also in progress. Power Evacuation system: Power Purchase Agreement (PPA) for the Project was signed with Bihar State Electricity Board (later Bihar State Power Holding Company Limited, BSPHCL) for 85% share of Power at bus bar rate. PPA (supplementary agreement) signed with BSPHCL on

09.04.2021 for construction of Transmission Lines for Power evacuation. Grant of Connectivity for Power Transmission from Buxar TPP was accorded by Bihar State Power Transmission Company Ltd. (BSPTCL) on 11.03.2022. Power evacuation system is divided into 4 Transmission line packages. LoA for all four lines has been issued by BSPTCL. Tower foundation and erection work is in progress.

Work for construction power i.e. construction of 33 kV line & 33 kV/11 kV sub-station has been completed and line is charged.

iv) Kholongchhu HEP (600 MW):

Kholongchhu Hydro Electric Project is located on river Kholongchhu in Bhutan. SJVN and Druk Green Power Corporation (DGPC), Bhutan is implementing this project in JV mode. A company “Kholongchhu Hydro Energy Ltd (KHEL)” was registered in Bhutan on 12.06.2015 with equal equity contribution. The project will generate 2568 MU of energy annually.

Inter-Governmental Agreement between Royal Government of Bhutan (RGoB) and Government of India (GoI) for implementation of project was signed on 22.04.2014.

Hon’ble Prime Minister of India laid the foundation stone of project on 16.06.2014. Concession agreement was signed between KHEL and RGoB on 29.06.2020.

Infrastructure works i.e. Bridges, Approach roads, Transmission Line & substation for construction power and site offices have been completed.

Main Civil works were awarded in three packages (KC-1, KC-2, KC-3) on 04.03.2021 as under:

1. KC-1: Construction of River diversion works, Dam, Intake, Desilting Arrangement and HRT from RD 0.00 m to RD 2303.00 m including construction of Adit-1 awarded to M/s Jaiprakash Associates Limited.

2. KC-2: Construction of Head Race Tunnel from RD 2303.00 m to RD 14091.07 m including construction of Adits II, III, IV & V and Chaplangchhu Diversion Works awarded to M/s Valecha-Rigsar Joint Venture (Valecha-Rigsar JV).

3. KC-3: Construction of Head Race Tunnel from RD 14091.07 m to RD 15762.80 m including construction of Adit VI, Surge Shaft, Butterfly Valve Chamber, Pressure Shafts, Power House Complex and Tail Race Tunnel awarded to M/s Jaiprakash Associates Limited.

For debt funding of project, MoU has been signed between KHEL and consortium of PFC Ltd. & REC Ltd., India on

09.03.2021. Negotiation on terms & conditions with Consortium is in process.

v) Luhri HEP STAGE-1 (210 MW):

Luhri Hydro Electric Project Stage-1 is a Run-of-the-River (RoR) scheme with installed capacity of 210 MW, located on river Satluj, near village Nirath spread over Shimla and Kullu Districts of Himachal Pradesh. The project will generate 758 MU of electric energy in a 90% dependable year.

Investment approval amounting to Rs. 1810.56 Cr for main works accorded on 20.11.2020 with completion period of 62 months from date of investment approval. Foundation stone laid by Hon’ble Prime Minister on 27.12.2021. Financial closure of the project has been achieved on 28.02.2022 and agreement signed with State Bank of India.

EPC package for main Civil & HM works awarded on

24.11.2020 to M/s Luhri Hydro Power Consortium (A consortium of Patel Engineering Ltd and HES Infra Pvt. Ltd) and works at various fronts are in full swing. Bailey bridge for river crossing has been completed. Diversion tunnel (617 m) has been completed and river has been successfully diverted on

25.06.2022. Stripping of right bank for Dam, Power house and TRC up to EL. 820m is in progress and 46% work completed. Infrastructure works i.e. bailey bridge and approach roads completed. Construction of permanent steel truss bridge (84m) for river crossing is in progress.

For EM package, work awarded to M/s Voith Hydro on

16.07.2021 and contract agreement signed on 12.08.2021. Layout plan of power house, model test procedure and EOT deign memo of Power House and GIS have been approved. Construction of store at site is in progress.

Diversion of NH-5 (1.36 km) is required for project construction which is being carried out through HPPWD and other related activities i.e. Trace cutting, bench development and stabilization are in progress.

Private land for construction of project is being purchased directly from land owners and some patches of land are being acquired as per LARR Act. Out of 13.90 ha private land being

purchased directly, 12.64 ha purchased. Private land being acquired through Act for which R&R award and land acquisition award u/s-31 of LARR for Kullu district has been issued and for Shimla district R&R plans have been approved by Deputy Commissioner.

For Power evacuation, tender for construction of transmission line from switchyard to common pooling station (ISTS network) at Nanj is in progress.

vi) DHAULASIDH HEP (66 MW)

Dhaulasidh Hydro Electric Project with installed capacity of 66 MW is located on river Beas, in Hamirpur and Kangra districts of Himachal Pradesh. The Project is a run-of-the-river scheme and will generate 304 MUs of electric energy in a 90% dependable year. MOU was signed with Govt. of Himachal Pradesh on 25.09.2019.

Investment approval amounting to Rs. 687.97 Cr for main works accorded on 01.10.2020 with completion period of 54 months from date of commencement of construction works. Foundation stone laid by Hon’ble Prime Minister on 27.12.2021. Financial closure of the project was achieved on 18.04.2022 and agreement signed with H.P. State Cooperative bank. Construction of approach road to Dam site (3.125 km) and other approach roads to work fronts have been completed. Construction power as required is available at site. Construction of office building at site has been completed and construction of non-family accommodation is in progress.

EPC package for main Civil & HM works has been awarded to M/s Rithwik Projects Pvt Ltd., Hyderabad on 06.05.2021. Excavation of diversion Tunnel completed on 23.12.2021 and river diverted on 15.02.2022. Excavation of u/s coffer dam completed on 13.04.2022 and concreting is in progress. Stripping of banks for construction of dam in progress, cumulative 63% stripping work completed. Excavation of Powerhouse is in progress and 50% excavation work is completed.

For EM package, work awarded to M/s Voith Hydro on

19.01.2022 and contract agreement signed on 11.02.2022. Kick-off meeting held on 20.04.2022.

Essential Private land (3530 kanal) as required for project has been directly purchased from land owners and 2301 kanal of Govt. land will be taken on lease basis which is under process of approval with GoHP.

For Power evacuation, work for construction of transmission line from switchyard to switching station at Sujanpur awarded on 14.06.2022 to M/s KEC International Ltd.

II. PROJECTS UNDER PRE- CONSTRUCTION, SURVEY & INVESTIGATION STAGES: -

i) Sunni Dam HEP (382 MW):

Sunni Dam HEP is a run-of-the-river of river type scheme situated on river Satluj near Khaira village in Shimla and Mandi districts of Himachal Pradesh. The Project will generate 1382 MU of energy in a 90% dependable year. Govt. of H.P. reallotted the project on "Stand Alone Basis" to SJVN on

29.08.2017. Investment approval for carrying out preconstruction activities amounting to Rs 85.09 crore accorded by GoI on 18.04.2018. MOU was signed with Govt. of Himachal Pradesh on 25.09.2019. Ground breaking ceremony of project was presided over by Hon’ble Prime Minister on 27.12.2021.

DPR of project has been concurred by CEA on 11.02.2021. Forest Clearance Stage-1 (FC-1 ) and Environmental Clearance accorded by MoEF&cC on 22.12.2021 and

04.02.2022 respectively. For FC-2, compliance report of FC-1 has been submitted to MoEF&CC on 11.02.2022 and is under process of approval.

For acquisition of private land, notification under section -11 of LARR Act has been issued by GoHP on 19.01.2021. Land compensation cost has been deposited and objection hearings under section-15 for both districts completed. R&R plans are under formulation/ approval with State Administration.

For evacuation of power from project, location of common pooling station has been finalized by CEA at village Nanj. Identification of land required for transmission line up to common pooling station has been completed.

For investment approval of main works, proposal amounting to Rs. 2614.51 Cr. at March, 22 price level recommended by PIB on 27.01.2022. CCEA approval is under process with GoI.

Works for construction of exploratory drifts along Diversion Tunnel (DT) and Powerhouse complex have been completed. Works for construction of Office building and Bachelor accommodation have been awarded on 30.06.2021 and are in progress. Work for construction of steel truss bridge has also been awarded on 19.01.2022.

For main Civil and HM works, Award of work on EPC mode is under approval.

ii) Luhri HEP Stage-2 (172 MW):

Luhri Hydro Electric Project Stage-2 is a run-of-the-river type scheme proposed on river Satluj near village Nanj, in Shimla, Kullu and Mandi districts of Himachal Pradesh. The Project will generate 632 MU of energy in a 90% dependable year. Govt. of H.P. re-allotted the project on "Stand Alone Basis" to SJVN on

29.08.2017. Investment approval for carrying out preconstruction activities amounting to Rs. 72.478 Cr. has been approved by GoI on 16.03.2018. MOU was signed with Govt. of Himachal Pradesh on 25.09.2019.

The project is in pre-DPR stage. Five out of nine pre-DPR chapters i.e. Hydrology, International aspects, Storage vs RoR, Power potential and Inter-state aspects have been cleared by CEA and balance four chapters are under examination. After initial investigation, it was found that geology at existing location of project is not favourable. Accordingly, now an alternative scheme in tandem with u/s Luhri HEP stage-1 has been identified for which commercial viability is being established.

Process for statutory clearances i.e. Environmental Clearance, acquisition of private land, diversion of forest land etc are being initiated, however, same will be finalized only after finalization of DPR as per new scheme.

iii) Devsari HEP (194 MW):

Project is a Run-of-the-River (RoR) scheme located on river Pinder, a major tributary of river Alaknanda in district Chamoli of Uttarakhand. DPR of project with 252 MW installed capacity was concurred by CEA on 07.08.2012.

MoJS, GoI notified revised e-flows on 09.10.2018 for projects on River Ganga and tributaries. In order to comply the same, the capacity of the project has been reworked from 252 MW to 194 MW and DPR is being revised accordingly. 9 pre-DPR chapters were submitted to CEA on 26.12.2019, out of which five have been cleared. Balance four chapters will be cleared after finalization of general layout and geotechnical investigations. Subsequently, in compliance to Ministry of Power letter dated

06.07.2021, all S&I activities which are required for revision of DPR are on hold till further order of Hon’ble Supreme Court of India. Matter is being followed up with MoP/ MoJS to consider the project for development.

Forest clearance stage-1 was accorded by MOEF&CC on

26.02.2018 with conditions and compliance report of FC Stage-1 was submitted to MoEF&CC on 28.11.2018. Observations raised are being followed up with GoUk. Environmental Clearance was recommended by EAC in its meeting held on

27.03.2018 subject to certain conditions applicable for FC stage-1.

For acquisition of private land, award has been issued by DM, Chamoli on 10.07.2019. Compensation amount has already been deposited with Distt. Administration for disbursement.

For investment approval of pre-construction activities, consolidated proposal amounting to Rs. 299.29 Cr. including the cost of acquisition of Debal SHEP (5 MW) was submitted to MoP on 15.04.2021. CEA has vetted the cost on 17.01.2022 and same is under approval with MoP.

Tariff of project is on higher side and matter is being taken up with GoUk for granting concessions in line with concessions granted by GoHP to make the project commercially viable. Detailed proposal has been submitted to GoUk on 23.03.2022.

iv) Jakhol Sankri HEP (44 MW):

Jakhol Sankri HEP with proposed installed capacity of 44 MW is located on River Supin, a tributary of River Tons in Uttarkashi District of Uttarakhand. The project is designed as run-of-the-river project and will generate 166 MU of energy in a 90% dependable year. Investment approval for carrying out preconstruction activities of project has been accorded by GoI at an estimated cost of Rs 84.50 Cr. on 15.09.2017.

TEA of DPR issued by GoUk on 03.06.2019. Environmental clearance was recommended by EAC, MoEF on 26.12.2019. Forest Clearance Stage-1 has been recommended by REC, MoEF&CC and case submitted to MoEF&CC for approval on

19.01.2022. Proposal is under process of approval.

For private land acquisition, R&R plan approved by Commissioner, Garhwal on 15.06.2021 and land compensation is under finalization.

Tariff of project is on higher side and matter was taken up with GoUk on 23.03.2022 for granting concessions in line with concessions granted by GoHP to make the project commercially viable.

v) Jangi Thopan Powari HEP (804 MW):

Jangi Thopan Powari HEP is located on river Satluj in Distt. Kinnaur of Himachal Pradesh. GoHP has allotted this project with installed capacity of 780 MW on 24.11.2018 and MoU was signed on 25.09.2019. Investment approval for carrying out preconstruction activities of project has been accorded by GoI at an estimated cost of Rs 93.24 Cr. on 20.05.2021.

Project is under S&I stage. Six preliminary chapters were submitted to CEA on 04.10.2019 and three chapters i.e. Hydrology, RoR Vs Storage and Power Potential studies have been cleared. Preliminary layout of the project has been finalized with GSI and capacity of project has been enhanced to 804 MW.

Drilling and drifting works were awarded on 26.02.2021 and

17.03.2021 respectively and work of detailed Topographical survey awarded on 04.01.2021. Sensitization meetings in presence of Distt. Administration are being conducted to create awareness on direct and indirect project benefits for ensuring work continuity.

EIA/ EMP report for EC is under preparation. For diversion of forest land, proposal has been submitted to MoEF&CC on

14.04.2021. Various NOCs as required are being obtained for Distt. Administration. Application for Wildlife Clearance has been submitted to MoEF&CC on 27.04.2021 and recommended by State Board for Wildlife to National Board for Wildlife for final approval on 22.03.2022.

vi) Reoli-Dugli HEP (456 MW):

GoHP allotted this project with capacity of 430 MW in Chenab basin on 23.10.2019. Template MoU signed with GoHP on

06.11.2019. DPR of project has been prepared and submitted to CEA on 28.12.2021. After investigation, capacity of project has been revised to 456 MW against allotted capacity of 430 MW. Drilling work has been awarded on 20.07.2021 and is in progress.

ToR approval received from MoEF&CC on 18.03.2021. Consultant for Environmental Clearance has been hired and preparation of EIA/EMP report in progress. For diversion of Forest land, case submitted to MoEF&CC on 31.03.2022. CAT plan is under preparation.

Proposal for investment approval for pre-construction activities has been vetted by CEA and is under approval in MoP.

vii) Purthi HEP (232 MW):

GoHP allotted this project with capacity of 210 MW in Chenab basin on 09.08.2019. Template MoU was signed with GoHP on

25.09.2019. Project is in pre-DPR stage and six preliminary chapters submitted to CEA on 02.09.2020. 1st consultation meeting held on 20.10.2020. After investigation, capacity of project revised to 232 MW against allotted capacity of 210 MW. Drilling and drift works are under progress. Pre-DPR chapters are being prepared.

ToR approval accorded by MoEF&CC on 26.03.2021. Consultant for EC has been hired and preparation of EIA/EMP report in progress. CAT plan is under preparation.

Proposal for investment approval for pre-construction activities has been vetted by CEA and is under approval in MoP.

viii) Bardang HEP (175 MW):

GoHP allotted this project with capacity of 138 MW in Chenab basin on 09.08.2019. Template MoU was signed with GoHP on

25.09.2019. Project is in Pre-DPR stage and six preliminary chapters submitted to CEA on 30.09.2020. 1st consultation meeting held with CEA on 06.11.2020. After investigation, capacity of project revised to 175 MW against allotted capacity of 138 MW. Pre-DPR chapters are being prepared. Drilling and drift works for geotechnical investigations are in progress.

ToR approval accorded by MoEF&CC on 26.03.2021. Consultant for EC has been hired and preparation of EIA/EMP report in progress. CAT plan is also under preparation.

ix) Sach Khas HEP (287 MW):

GoHP allotted this project with capacity of 267 MW in Chenab basin on 05.01.2021. Project is in pre-DPR stage and six preliminary chapters submitted to CEA on 21.09.2021. 1st consultation meeting held on 06.01.2022. After investigation, capacity of project revised to 287 MW against allotted capacity of 267 MW.

ToR accorded by MoEF&CC on 04.03.2022. Consultant for EC has been hired and preparation of EIA/EMP report is in progress.

x) Tandi - Rashil HEP (268 MW)

Tandi HEP and Rashil HEP were allotted by GoHP with capacity of 104 MW and 130 MW respectively in Chenab basin on

05.01.2021. After preliminary studies, a single scheme of 268 MW Tandi - Rashil HEP was found to be more techno-economic feasible and was approved as such by GoHP on 02.07.2022.

xi) Lower Arun HEP (669 MW), NEPAL

Lower Arun HEP was allotted by Govt. of Nepal with capacity 679 MW on 04.02.2021. The project is situated in the Sankhuwasabha and Bhojpur districts of Eastern Nepal on river Arun, downstream of existing Arun-3 HEP (900 MW) which is under construction by SAPDC (wholly owned subsidiary of SJVN). The project is envisaged to be constructed in Tandem with Arun-3 HEP.

DPR of the project was submitted to Investment Board of Nepal,

GoN on 31.10.2021 and approval was accorded on 31.03.2022. DPR also submitted to Cea on 19.11.2021 and is under examination.

Investment approval for pre-construction activities has been accorded by MoP, GoI on 02.03.2022.

xii) Hydro Power Projects in Arunachal Pradesh

MoP, GoI has identified 5 Hydro Power Projects i.e. Etalin HEP (3097 MW), Attunli HEP (680 MW), Emini (500 MW), Amulin (420 MW) and Mihumdon (400 MW) totalling 5097 MW in Dibang basin of Arunachal Pradesh for allocation to SJVN. Meeting with Hon’ble Chief Minister of Arunachal Pradesh was held on 29.12.2021. Discussions with Govt. of Arunachal Pradesh for finalization of terms & conditions for allotment are in progress. Consultant has been hired to carry out due diligence process for Etalin & Attunli HEPs.

xiii) Arun-4HEP (490 MW)

Arun-4 Hydro Electric Project is a run of the river type scheme proposed to harness the hydel potential of river Arun. For the development of Arun-4 HEP in a Joint Venture, a Memorandum of Understanding was signed between SJVN and Nepal Electricity Authority (NEA), in the esteemed presence of Honorable Prime Ministers of India & Nepal at Lumbini, Kapilavastu, Nepal on 16.05.2022.

Project registered with CEA on 08.07.2022. Draft PIB for Investment approval of pre-construction activities submitted to MoP on 22.07.2022 is under process. Draft JV Agreement submitted to NEA on 11.07.2022 is under finalization.

7. PROGRESS OF PROJECTS (RENEWABLE ENERGY)

SJVN is fast expanding its foot prints in the field of Renewables and aims for adding 1 to 1.5 GW Capacity on annual basis. In order to give a thrust to its renewable endeavours, SJVN has registered a Wholly owned Subsidiary namely “SJVN Green Energy Limited” on 30.03.2022.

The Renewable portfolio at present stands at 3.74 GW which includes Operational (103.2 MW), Construction (1270 MW), Pre-Construction (850 MW), S&I (1489 MW) & Pre-Award (33 MW).

I. PROJECTS UNDER OPERATION (103.2 MW)

i. Charanka Solar Power Station

SJVN’s 5.6 MW Charanka Solar Power Station has been commissioned on 31.03.2017. The project is located at Charanka Solar Park in Gujarat in an area of about 25.95 Acres. The project has been conceived under REC Mechanism and the PPA for brown power has been signed with GUVNL on

03.03.2017. Total 12998 RECs (Renewable Energy Certificates) have been traded in FY 2021-22 and on cumulative basis 33305 RECs. The project has generated 8.595 MUs in the FY 2021-22.

ii. Khirwire Wind Power Station

SJVN has set up its first Wind Power Project of 47.6 MW capacity at Khirwire / Kombhalne villages of Ahmednagar district of state of Maharashtra. The Project comprises 56 Wind Energy Generators (WEGs) each of capacity 0.85 MW. The project started generation w.e.f. 20th January 2014, with the commissioning of 1st lot of 25 WEGs and attained full generation capacity by commissioning the last 56th WEG on 20.05.2014. The project has been registered with IREDA for availing Generation Based Incentive @?0.50 / kWh with a cap of ?1 Crore per MW. Total Gross Generation from the plant for FY 2021-22 was 47.230 MU.

iii. Sadla Wind Power Project

SJVN has successfully commissioned its second Wind Power Project of 50 MW capacity, comprising 25 WEGs each of

capacity 2 MW at village Sadla, Distt. Surendranagar, Gujarat. PPA was signed with Gujarat Urja Vikas Nigam Limited for 38 MW on 30.01.2018 and for balance 12 MW on 30.03.2019. The project has been fully commissioned on 18.04.2019. Total 102.677 MU had been generated in FY 2021-22.

II. PROJECTS UNDER CONSTRUCTION (1270 MW)

Presently, SJVN Ltd has Five solar power projects under construction with total capacity of 1270 MW in Uttar Pradesh, Rajasthan and Gujarat respectively (listed below).

i. Parasan Solar Park Project

Parasan Solar Park Project of 75 MW of capacity was bagged through Open Competitive Bidding conducted by Uttar Pradesh New & Renewable Energy Development Agency (UPNEDA) on

17.05.2021 and PPA was signed with UPNEDA at a tariff of INR 2.68 per unit. The EPC work was awarded to M/s Solar World Energy Solution Pvt Limited. The project is in advance stage of construction and is likely to be commissioned by September 2022.

ii. Bagodra Solar Power Project

Bagodra Solar Park Project of 70 MW of capacity was bagged through Open Competitive Bidding conducted by Gujarat Urja Vikas Nigam Limited on 26.03.2021. PPA was signed with GUVNL at tariff of INR 2.21 per unit. The EPC was awarded to M/s Refex Energy Limited. The project is in construction stage and is likely to be commissioned by December 2022.

iii. 1000 MW Solar Project under CPSU Scheme

SJVN during the month of September 2021 bagged 1000 MW Solar Project at a tariff of INR 2.45/Unit and a Viability Gap Funding (VGF) of 44.72 Lakh/MW through competitive bidding under the CPSU Scheme. The EPC was awarded to M/s TATA Power Solar System Limited. The project is in construction stage and is likely to be commissioned by January 2024.

iv. 75 MW Gurhah Solar Power Project

SJVN through competitive bidding conducted by Uttar Pradesh New & Renewable Energy Development Agency (UPNEDA) bagged 75 MW Solar Power Projects. PPA has been signed with UPNEDA at a tariff of INR 2.98/Unit. The EPC work was awarded to M/s Solar World Energy Solution Pvt Limited. The project is in construction stage and is likely to be commissioned by May 2023.

v. 75 MW Gujrai Solar Power Project

SJVN through competitive bidding conducted by Uttar Pradesh New & Renewable Energy Development Agency (UPNEDA) bagged 50 MW Solar Power Projects. PPA has been signed with UPNEDA at a tariff of INR 2.98/Unit. The EPC work was awarded to M/s Solar World Energy Solution Pvt. Limited. The project is in construction stage and is likely to be commissioned by May 2023.

III. PROJECTS UNDER PRE-CONSTRUCTION (850 MW)

i. 200 MW BREDA Solar Project

SJVN through open competitive bidding conducted by Bihar Renewable Energy Development Agency (BREDA) bagged 200 MW Solar Power Project in Bihar. Project has been bagged at a tariff of INR 3.11/Unit. The project is under tendering stage for award of EPC works.

ii. 100 MW Raghanesda Solar Project

SJVN through Open Competitive Bidding conducted by Gujarat Urja Vikas Nigam Limited (GUVNL) bagged 100 MW Solar Power Project to be developed in Raghanesda Solar Park in Gujarat. PPA has been signed with GUVNL at a tariff of INR 2.64/Unit. The L-1 bidder has been discovered after e-RA.

iii. 100 MW GUVNL Phase -XIII Solar Project

SJVN through Open Competitive Bidding conducted by Gujarat Urja Vikas Nigam Limited (GUVNL) bagged 100 MW Solar Power Project in Gujarat. PPA has been signed with GUVNL at a tariff of INR 2.29/Unit. The project is under tendering stage for award of EPC works.

iv. 90 MW Omkareshwar Floating Solar Project

SJVN through Open Competitive Bidding conducted by Rewa Ultra Mega Solar ltd. (RUMSL) bagged 90 MW Floating Solar Project at Indira Dam, Omkareshwar, Madhya Pradesh. PPA will be signed with MPSPTCL at a tariff of INR 3.26/Unit. The project is under tendering stage for award of EPC works.

v. 100 MW PSPCL Solar Project

SJVN through Open Competitive Bidding conducted by Punjab State Power Corporation Limited (PSPCL) bagged 100 MW Floating Solar Project in Punjab. PPA has been signed with PSPCL at a tariff of INR 2.65/Unit. The project is under tendering stage for award of EPC works.

vi. 260 MW G UVN L Phase -XIV Solar Project

SJVN through Open Competitive Bidding conducted by Gujarat Urja Vikas Nigam Limited (GUVNL) bagged 260 MW Solar Power Project in Gujarat. PPA will be signed with GUVNL at a tariff of INR 2.3031/Unit. The project is under tendering stage for award of EPC works.

IV. PROJECTS UNDER SURVEY & INVESTIGATION (1489 MW)

i. 880 MW Kaza Solar Park

Ministry of New & Renewable Energy (MNRE) has designated SJVN as the Solar Power Park Developer (SPPD) of 880 MW Kaza Solar Park in Himachal Pradesh. Detailed Project Report (DPR) of the project has been submitted to MNRE in May 2022.The project is likely to be commissioned by end December 2025.

ii. 400 MW Kinnaur Solar Park

Ministry of New & Renewable Energy (MNRE) in the month of February 2022 has designated SJVN as the SPPD of 400 MW Kinnaur Solar Park in Himachal Pradesh. The project is under initial stage of Survey and Investigation.

iii. 209 MW Solar Projects (5 Nos.) in Himachal Pradesh

5 nos. of Solar projects are in survey & investigation stage of development in the state of Himachal Pradesh.

V. PROJECTS UNDER PRE-AWARD STAGE (33 MW)

SJVN through Open Competitive Bidding Process has emerged as L-1 bidder in the following solar projects.

a) BBMB 15 MW (Floating Solar)

b) BBMB 18 MW

Letter of Awards for these projects are likely to be issued shortly.

VI. FUTURE ENDEAVORS

Hon’ble Prime Minister of India has set an ambitious renewable energy target i.e., 175 GW by 2022 and 500 GW by 2030. Aligned with the same, SJVN also aims to become a 5000 MW company by 2023, 25000 MW by 2030 and 50000 MW by 2040 wherein the renewable portfolio shall be increased manifolds.

SJVN has been continuously looking for opportunities for setting up Solar, Wind, Hybrid, Floating Solar, Ocean Hybrid Platforms Pan India. These opportunities are generally in the form of Competitive Bidding processes. SJVN is looking forward for participation in various other upcoming competitive Bidding processes for Solar, Wind and Hybrid (Solar Wind) to add projects at rate of 1-1.5 GW per year. In addition, SJVN is also looking forward for direct allocation of Projects from Government Agencies.

8. SUBSIDIARIES AND JOINT VENTURE COMPANIES

A) SUBSIDIARY COMPANIES:

Company has three wholly owned subsidiary companies as on

31.03.2022. The details of the subsidiaries are as under:

1. SJVN Thermal Pvt. Ltd.

SJVN Thermal Pvt. Ltd (STPL) (Earlier, Buxar Bijlee Company Private Limited) has been acquired as 100% subsidiary company of SJVN Ltd on 04.07.2013. The Company has taken up the development of 1320 MW Coal based Thermal Power Project located near village Chausa in District Buxar of Bihar. The cumulative expenditure incurred up to 31.03.2022 is Rs. 4865.32 Cr. The paid-up share capital as on 31.03.2022 is Rs 2511.68 Cr. (previous year: Rs 1896.68 Cr).

2. SJVN Arun-3 Power Development Company Pvt. Ltd. SJVN Arun-3 Power Development Company Pvt. Ltd. (SAPDC) was incorporated in Nepal as a wholly owned subsidiary company of SJVN Ltd on 25.04.2013. The company has been formed to execute the 900 MW Arun-3 Hydro Electric Project in Nepal. This project is situated on river Arun in Sankhuwasabha District of Nepal. The cumulative expenditure incurred up to

31.03.2022 is Rs. 2703.06 Cr. The paid-up share capital as on

31.03.2022 is Rs 2105.41 Cr (previous year: Rs 1360.67 Cr).

3. SJVN Green Energy Limited (SGEL)

SJVN Green Energy Limited (SGEL) has been incorporated as a wholly owned subsidiary company of SJVN Ltd on 30.03.2022 with its registered office at Shimla, Himachal Pradesh. SGEL shall work in the verticals of power generation from renewable sources such as Solar Parks, Wind & Hybrid Projects, Battery Energy Storage system, Biomass, small Hydro and Green Hydrogen based business ventures.

B) JOINT VENTURES:

SJVN has two joint ventures as on 31.03.2022. The details of the Joint Ventures are as under:

1. Kholongchhu Hydro Energy Limited:

Kholongchhu Hydro Energy Limited (KHEL) was incorporated in Bhutan on 12.06.2015 as joint venture Company of Druk Green Power Corporation Ltd, Bhutan (DGPC) and SJVN Ltd. having 50% shareholding each. The Company is formed for the construction of 600 MW Kholongchhu Hydro Electric Project on river Kholongchhu. SJVN has invested cumulative amount of Rs. 240.43 Cr. as on 31.03.2022 (Previous Year Rs 190.43 Cr.).

2. Cross Border Power Transmission Company Limited:

Cross Border Power Transmission Company Limited (CPTC) is a joint venture of SJVN Ltd. with IL&FS Energy Development Company Ltd. (IEDCL), Power Grid Corporation of India Ltd. (PGCIL) and Nepal Electricity Authority (NEA) for implementation of Indian portion of the transmission line from Nepal. Equity contributions by SJVN, PGCIL, and IEDCL & NEA are 26%, 26%, 38% & 10% respectively in the Joint Venture Company. SJVN has invested Rs. 12.61 Cr. as on 31.03.2022 in the joint venture. Transmission line is under operation since February 2016.

9. ENVIRONMENT

SJVN is aware of its obligation to conserve and protect the environment. SJVN strictly adheres to all policies and guidelines of the Ministry of Environment, Forest and Climate Change (MoEF&CC), Govt. of India (GoI) concerning identification and mitigation of environmental impacts of projects. To achieve sustainable development, studies like Environmental Impact Assessment (EIA) and Environment Management Plan (EMP), which are a part of the Comprehensive Environmental Impact Assessment Study, are carried out through highly reputed organizations/NABET

accredited-consultants. All environmental aspects are suitably addressed in the Environment Impact Assessment. Accordingly, an Environment Management Plan is prepared and suitable measures are adopted to negate any adverse impact on the environment and ecology during construction and operation stages. Every care is taken to implement and abide by the laws of the land in respect of the environment and ecological safeguards.

SJVN has two hydro power stations, viz Nathpa Jhakri Hydro Power Station (NJHPS) (1500 MW) and Rampur Hydro Power Station (RHPS) (412 MW) in Himachal Pradesh which are under operation wherein management measures such as Catchment Area Treatment (CAT), Compensatory Afforestation (CA), Muck Management, Restoration of muck disposal sites, quarry sites and construction areas, Green belt development, Biodiversity Management, Fisheries Management, etc. were successfully undertaken. Regular environmental monitoring is done at SJVN projects and six-monthly compliance reports of Environment Clearance are sent to MoEF&CC and other concerned authorities.

SJVN has two projects in construction stage in Himachal Pradesh - Luhri Stage-I HEP (210 MW) and Dhaulasidh HEP (66 MW). At Luhri Stage-I HEP, Environment Management Plan amounting to Rs. 148.60 crore is being implemented. Further, a Corporate Environment Responsibility (CER) plan amounting to Rs. 8.6 crore is also being implemented to address concerns of local population. At Dhaulasidh HEP, Environment Management Plan amounting to Rs. 34.14 crore is being implemented.

Further, SJVN has one project in Uttarkashi District, Uttarakhand which is in advanced-stage of construction namely, Naitwar Mori Hydro Electric Project (NMHEP) (60 MW) located on Tons River, wherein Rs. 42.55 crores have been spent so far against a financial provision of Rs. 32.48 crores on implementation of various environmental management measures, which were appreciated by Government officials during the last Multi-Disciplinary Committee (MDC) meeting. The same have been briefly brought out below:

• For the implementation of the CAT plan, Rs. 12.96 Crores have been deposited against the CAMPA fund. An amount of about Rs. 140.68 lakh have been utilized by Uttarakhand Forest Department against implementation of CAT Plan till date.

• As part of the diversion of forestland, CA over 80.00 ha of civil soyam and forest land has been carried out for which Rs. 1.84 crores have been deposited by SJVN with the CAMPA fund. An amount of Rs. 67.74 lakh have been spent so far against CA works by the Uttarakhand Forest Department.

• Biodiversity Conservation and Management Plan has been prepared by the State Forest Department, against which an amount of Rs. 43 lakhs have been deposited by SJVN with the Uttarakhand Forest Department. An amount of about Rs. 22.38 lakh have been spent so far against Biodiversity Conservation and Management Plan by the Uttarakhand Forest Department.

• Under the Fisheries Management Plan, a fish pass, for migratory fish species in the river, is proposed. SJVN has engaged Central Inland Fisheries Research Institute (CIFRI), Barrakpore, West Bengal who has vetted the design parameters for an effective and sustainable fish pass.

• Muck management is being implemented as per the provisions in the EIA / EMP Report and in line with MOEF&CC guidelines.

• To avoid landslides and soil erosion, Reservoir Rim

Treatment is being implemented, and currently retaining walls are being constructed.

• Noise levels, ambient air quality and water quality of the project area are being regularly monitored by Pollution Control Research Institute, BHEL at Haridwar. The monitored data shows reportable values below the permissible limits defined by regulatory bodies. Further, all high noise generating equipment have been provided with mufflers as per the manufacturers’ specifications.

• Rain water harvesting system along with a 60 KLD sewage water treatment has been setup at project colony.

• Bio composter & Plastic waste bailing machine have been procured for treatment of solid waste from project affected villages and project colony.

• Towards sustainable development, AAC bricks (having fly ash content about 68%) is being used in the construction of township & office building.

• To avoid indiscriminate felling of trees, canteen facility is being provided by contractor to the labour force engaged in construction activity of the project.

• For energy conservation, energy efficient BEE 5 Star rating electrical appliances have been procured.

• Environment Management System/ISO 14001 is being implemented.

In addition to the above, SJVN has put up a Grid-connected, 1 MW Solar Power Plant at Nathpa Jhakri Hydro Power Station near Wadhal, Shimla District. 120 kWp On-Grid Solar Power Plant has already been installed and successfully operating at Corporate Headquarters (CHQ), Shimla. Further, Water Solar Heating System of 5000 Ltr. Capacity has also been installed and hot water is being used in the building through this system only. SJVN Corporate Headquarters (CHQ) is designed and constructed with state-of-the-art technology with green building concept equipped with Sewage treatment plant of 90 KLD per day capacity for waste water recycling, rain water harvesting system with capacity of 50 KL, Natural lighting with provision of Sky light Glasses, fully centralized HVAC system, intelligent/automatic sensor-controlled illumination system for conservation of electricity. Further, a Bio-Diversity Park, under CSR initiative is also being developed in association with Municipal Corporation to create mass awareness and sensitivity for the environment.

Energy Audit of SJVN CHQ building has been conducted on FY 2021-22 and recommendation of Energy Audit like improvement of power, use of LED lights in automation system etc. are being implemented. The audit will be conducted after every three years.

Every year, SJVN celebrates World Environment Day on 5th of June across its projects and offices with much zeal and fervor. This time celebrations were organized following social-distancing norms and Government guidelines in respect of COVID-19.

Pledge for environment protection/conservation and talks on environmental aspects were also delivered by heads of projects / power stations to spread awareness and sensitivity about environmental issues. In addition to above, slogan-writing, drawing, photography competitions, awareness programmes, etc. were undertaken and environmental awareness films were also screened for employees. Large scale plantation programs were undertaken across various locations in and around project areas.

10. CSR AND SUSTAINABILITY

An annual report of Corporate Social Responsibility, highlighting the Company’s CSR Policy, details of expenditure

on CSR and overview of projects/ programs/ activities undertaken by the Company during FY 2021-22 in format prescribed under Companies (CSR Policy) Rules 2014 is annexed as Annexure-V and forms an integral part of this Directors’ Report.

11. REHABILITATION AND RESETTLEMENT

SJVN, being conscious of its responsibilities towards society, is committed to execute and operate power projects in a socially responsible manner by adopting generous Resettlement & Rehabilitation measures for the benefits of project affected families (PAFs) and by investing in the socio-economic development of communities to continually minimize potential negative impacts as well as to establish the sustainable positive impact of projects on them.

Well before any project is taken up for execution, Social Impact Assessment (SIA) study is carried out to ensure that the potential socio-economic benefits accrued from the project outweigh the likely social costs and adverse social impact. Public consultation meetings with the stakeholders are held by the project authorities to make the local communities aware of developmental facilities to be created in the fields of health, education, sanitation, drinking water, approach roads and other community assets of the project and their benefits to the society. Subsequently, the R&R plan is devised based on conclusive findings derived from the socio-economic survey carried out by an independent expert agency. The R&R plan thus devised and approved essentially prescribes mitigation measures for reconstruction and regeneration of economies of the PAFs. During the implementation stage of the R&R plan, regular monitoring of R&R activities is conducted through an external independent agency to ensure the timely extension of R&R benefits to the PAFs. Subsequently on completion and implementation of the R&R plan, social impact evaluation is carried out by an independent external agency to assess various tangible and intangible benefits accrued in the area of socio-economic development. To have constant interaction with local people, a Project Information Centre is set up at project level.

Nathpa Jhakri Hydro Power Station (NJHPS) and Rampur Hydro Power Station (RHPS): The R&R plans have been successfully implemented in 1500 MW Nathpa Jhakri Hydro Power Station (NJHPS) and 412 MW Rampur Hydro Power Station (RHPS) both located in Himachal Pradesh. Several R&R benefits like employment subject to availability of employment and suitability of the candidates or financial assistance in place of employment to start a tailor-made selfbusiness, land for land, constructed house in rehabilitation colony or house plot with construction assistance or cash package with shifting allowance and shifting house rent, shop plot for shop in market complex, shop in project township, cattle shed grant etc. as per the eligibility have been provided to the PAFs. Land based employment opportunity is encouraged through farm training and non-land based employment opportunity is encouraged through skill development training and financial assistance for self-business. To support the weaker sections of the society financial assistance to vulnerable group families is being provided. To promote indirect employment, vehicles required for Project works are hired from PAFs/Locals on preference basis and petty contracts are offered to PAFs/ local contractors on a preference basis. In addition to these benefits, with a view to develop the area infrastructure and community development facilities are provided to the local communities. The infrastructure development work includes construction of Village paths,

Roads, Rain shelters, Bus stand, Panchayat bhawan, Community centers, Mahila Mandal Bhawans, Crematorium etc. The community development works includes health, education, safe drinking water & sanitation etc. The health facility is provided through mobile health van, project hospitals and health awareness campaign. Promotion of education is being done through school infrastructure, technical education Scheme to the local youth, scholarship schemes, promotion of sport infrastructure for the students etc. Drinking water facility is being provided through renovation of natural water sources, financial assistance to local health department for laying of water supply schemes (WSS) and laying of sewerage system etc.

The local farmers around RHPS have been adequately compensated for the reduction in crop yield as per the crop compensation policy of the government of HP. The PAFs are being provided 100 units of free electricity benefit per month for ten years as per the Ministry of Power guidelines. Besides this, funds of Rs.55.26 Crores have been spent for carrying out various infrastructural development works under the Local Area Development Fund (LADF) policy of GOHP.

Naitwar Mori Hydro Electric Project (NMHEP): The R&R plan is in the execution stage in 60 MW Naitwar Mori Hydro Electric Project (NMHEP), Uttarakhand. Various provisions of R&R Plan i.e. rehabilitation grant, subsistence allowance, widow pension, scholarship to the wards of PAFs, technical education scheme to the local youth, grant on birth of girl child, grant on marriage of daughter etc. are being implemented through R&R Administrator-cum- ADM Uttarkashi. The Project R&R Grievance Redressal Committee has been constituted under the Chairmanship of R&R Administrator Uttarkashi. As per the recommendations of the Committee, various infrastructural and community development works like construction of community/marriage halls, construction of toilets, installation of solar street lights & solar fencing, infra aids /furniture to the schools, modern agriculture/horticultural equipment to the farmers etc. are being carried out in the project affected villages of NMHEP and simultaneously, for the concurrent monitoring of implementation of aforesaid provision of R&R Plan of NMHEP, the External Monitoring Committee i.e. M/s DAV PG College Dehradun has been hired/appointed by the Administrator-cum-ADM Uttarkashi on 30.12.2021.

Luhri Hydro Electric Project Stage-I (LHEP Stage- I): The

land acquisition process by direct negotiations as well as under Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013 is under process in LHEP Stage-I 210 MW (HP) falling under district Shimla and district Kullu. The R&R plan for affected families of Distt. Kullu approved by Divisional commissioner Mandi, has been notified whereas the R&R Plan for affected families of District Shimla is under process of finalization and approval of Govt. of HP.

Luhri Hydro Electric Project Stage-II (LHEP Stage-II):

Acquisition of land for construction of 172 MW LHEP Stage -II under Section 8(2) of RFCTLARR Act-2013 has been initiated. Award for SIA study is under process.

Sunni Dam Hydro Electric Project (SDHEP): Land Acquisition process under Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013 has been initiated for Sunni Dam Hydro Electric Project (382 MW) and after approval and publication of SIA Study, the notification under section 11(1) for acquisition of private land has been published in H.P Gazette on 19.02.2021 by Govt. of Himachal Pradesh. Accordingly, the R&R plan is under progress to be finalized by Govt. of HP.

Dhaulasidh Hydro Electric Project (DSHEP): The R&R plan

of 66 MW Dhaulasidh Hydro Electric Project, HP has been approved by GOHP. A committee consisting of members from HPPWD & Revenue Deptt. of GOHP is evaluating the R&R benefit to be disbursed.

Buxar Thermal Power Project (BTPP): In 1320 MW Buxar Thermal Power Project (BTPP) in Bihar, the acquisition of private land has been completed and compensation of land has been paid as per the provision under RFCTLARR Act, 2013. Rehabilitation and Resettlement policy formulated by Indian Institute of Social Welfare Business Management (IISWBM), Kolkata has been approved by Govt. of Bihar.

Jakhol Sankri Hydro Electric Project (JSHEP): In 44 MW Jakhol Sankri Hydro Electric Project (jSHEP) Uttarakhand, the Land acquisition as per RFCTLARR Act, 2013 is under process. The R&R plan for Project Affected Families (PAFs) has been prepared in line with RFCTLARR Act, 2013 and approved by Govt of Uttarakhand.

Devsari Hydro Electric Project (DHEP): In Devsari Hydro Electric Project (DHEP) 194 MW, Uttarakhand, the land acquisition process under RFCTLARR Act, 2013 is in progress. The R&R plan for Project Affected Families (PAFs) was prepared in line with RFCTLARR Act, 2013 and recommendations of Environmental Expert Appraisal Committee (EAC) of Ministry of Environment, Forest and Climate Change, Government of India. The Govt. of Uttarakhand has approved the R&R Plan and declared the Award for 27.462 hectares Private land. District Administration is collecting the details of individual beneficiaries like Adhaar Card, Bank Account details etc. for disbursement of land compensation amount amongst landowners.

Social Impact Evaluation (SIA): The Social Impact Evaluation (SIA) studies of R&R implementation of NJHPS and RHPS was carried out by the Agriculture Economic Research Centre (AERC) of Himachal Pradesh University. The reports reveal that R&R implementation in the project affected areas has substantially enhanced the socio-economic standard of the local population on various development parameters like economy, health, education etc.

The World Bank Mission has monitored the R&R activities carried out in NJHPS from time to time and has appreciated the efforts made for rehabilitation of the PAFs as under:

‘The success of the resettlement activity undertaken in this project is quite rare for India, and can be considered as one of the best examples of resettlement implementation in bank assisted projects in India. It should be considered as an example for other project.’

12. RESEARCH AND DEVELOPMENT

SJVN in its commitment towards Research and Development, I n n o v a t i o n , Te c h n o l o g y u p - g r a d a t i o n , a n d P r o d u c t Development in its core area of Power Generation has been consistently striving for excellence.

Specific areas in which R&D/Innovations have been carried out during FY 2021-22 are:

MOU signed with IIT Mandi:

MOU has been signed with IIT Mandi on 19.06.2020 for the establishment of SJVN Chair for a period of six years for R&D in the field of Hydro Power.

Further, following topic has been finalised by SJVN for R&D with IIT Mandi:

‘Study for the optimum height of lift for mass concreting in concrete dam structure’

A total 28 no. R&D/innovative measures were taken at Project sites & Corporate Headquarter of SJVN to enhance the operational efficiency of the company. The total expenditure by

SJVN for R&D/ innovations initiatives works for the FY 2021-22 was INR 30.12 Cr. (including taxes). The major innovative initiatives are as below:

• Excavation of exploratory drift for Diversion Tunnel, Main Access Tunnel, Pressure Shaft, Transformer Hall and Tail Race tunnel of Sunni Dam HEP.

• 3D Scanning, modelling & engineering for reclamation of blade segment of Francis runner of NJHPS.

• Reclamation of the Francis runners of NJHPS through in-situ machining, drilling, tapping of holes.

• Application of Epoxy based polymer coating over M80 Grade Concrete to prevent the damage of invert portion of flip bucket of dam spillway.

• Establishment of HP-HVOF ceramic coating facility for silt mitigation at NJHPS.

• Design & implementation of early warning system in Satluj river basin.

• Development of Nitrogen filled LV Bushings for Generator Transformers of RHPS.

• Upgradation of luminaries to flame proof & explosion proof in the sensitive locations to mitigate any possibility of explosions due to presence of combustible gas leakage inside power plant (RHPS).

13. HUMAN RESOURCES

The total manpower on the rolls of SJVN (Direct Recruits and Absorbed employees) as on 31.03.2022 was 1412 and the strength of HPSEB / HP Government employees on deputation on the above date was 49.

Representation of Women Employees is as under:

Group

Total

Employees as on 31.03.2022

Number of Women employees

Percentage of overall staff strength

SJVN (DR absorbed)

1363

147

10.78%

SJVN (Deputationists)

49

3

6.12%

Total

1412

150

10.62%

Representation of Persons with Disabilities (PWDs) is as under:

Group

Total

Employees as on 31.03.2022

Physically Challenged Employees (DR absorbed)

Percentage of Physically challenged employees

VH

HH

OH

Total

Total

1412

07

07

16

30

2.20

Representation of SCs/STs/OBCs/Minorities Employees is as under:

Group

Total

Employees as on 31.03.2022

Representation (DR absorbed)

SCs

SC%

STs

ST%

OBC

OBC%

Total

1412

286

21%

97

7.12%

193

14.17%

Organization is committed to continuous growth and development, and gives utmost importance to the enrichment of employee skills and knowledge.

Under the training imparted to its employees during the financial year 2021-22, 54 Online programs, 57 In house programs and 46 External programs were conducted for which 2471 nominations were made. The trainings were imparted through organizations of national repute like IIMs, IITs, NAHRD, DNV GL ASCI, CBIP, and Tunneling Association of India, NEPTEL, India Energy Storage Alliance (IESA), The Institute of Company Secretaries of India (ICSI), Directorate of Energy, H.P. Rock Science South Asia. The programs were conducted on topics

like Preventive Vigilance, Solar, Wind, Floating Solar, Battery Storage Systems, Thermal Power Plant Operation & Maintenance, Energy Meter Communication Control Protocol, Corporate Social Responsibility, Advance Management Development Programs, Companies Act 2013 and Corporate Governance, Conflict Management, Enterprise Risk Management, Advance O&M practice in Super Critical Thermal Power Plant, AutoCAD, Risk Management and its mitigation plans as per Risk Management Policy of SJVN, HV-Gas Insulated Switchgear, Power System Protection and Coordination, Environment Management and Sustainability, Pumps-Design, Operations & Maintenance, Technical Issues of Hydro Power, TlC/TCS/ SCADA for Power Plant Operations, Primavera P6, Contract Labour and New Labour Codes, Effective Communication and Presentation, Netiquettes, 5S & Kaizen and Gender Sensitivity, Capacity Building program for Estate Officers of SJVN, Power Plant Digitalization, etc. to mention a few.

To effectively percolate the Shared Vision and motivate its employees, various In-house/Online/External training programs were organized in all disciplines and at all the levels in SJVN.

Residential workshop was organized for SJVN Management on the Topic “Teaming Leadership-For Top Leaders” at Shirdi, (Maharashtra), from 17th March, 2022 to 21st March, 2022.

Motivational Talk was organized through renowned Motivational Speaker Mr. Sonu Sharma at SJVN, CHQ, Shimla, which was also relayed online for employees posted at various SJVN’s Projects/offices located across in India/Nepal/Bhutan. Besides two more Motivational Talks were organized through Ms. Mary Kom and Ms. Anju Bobby George on the occasion of International Women’s Day 2022 (i.e. on 8th March, 2022), which were attended by SJVN’s Women employees posted at various projects/offices.

14. INDUSTRIAL RELATIONS

Regular Meetings are held with the representatives of the various Associations / Unions to sort out the local issues as well as policy related matters. Recreational, Cultural and Sports functions on different occasions were also held, thus, resulting in better employee-employer relations and cordial industrial relations were maintained during the year.

15. STATUTORY AND OTHER INFORMATIONS

The information required to be furnished as per the Companies Act 2013, SEBI (Listing Obligations & Disclosure Requirements) Regulations, 2015 and Government Guidelines, on the following matters is placed at respective annexures and form integral part of Directors Report: -

a. Management Discussion and Analysis - Annexure - I

b. Report on Corporate Governance - Annexure - II

c. Certificate from Practicing Company Secretary on Corporate Governance Compliance- Annexure - III

d. Information on Conservation of Energy, Technology Absorption and Foreign Exchange earnings and out go -Annexure - IV

e. Annual Report on Corporate Social Responsibility & Sustainability - Annexure - V

f. Business Responsibility Report - Annexure - VI

g. ESG Report- Annexure - VII

h. Certificate regarding Non-Disqualification of Directors -Annexure - VIII

i. Secretarial Audit Report - Annexure - IX

j. Form No. AOC-2 - Annexure - XVII

16. DIRECTORS’ RESPONSIBILITY STATEMENT

The Directors’ state that:

• in the preparation of the annual accounts for the year ended March 31, 2022, the applicable Accounting Standards read with requirements set out under Schedule III to the Act, have been followed along with proper explanation relating to material departures, if any;

• the Directors have selected such accounting policies and applied them consistently except as disclosed in the Notes on Accounts and made judgment and estimates that are reasonable and prudent so as to give a true and fair view of the state of affairs of the Company as at March 31,2022 and of the profit of the Company for the year ended on that date;

• the Directors have taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities;

• the Directors have prepared the annual accounts on a ‘going concern’ basis;

• the Directors have laid down internal financial controls to be followed by the company and that such internal financial controls are adequate and are operating effectively; and

• the Directors have devised proper systems to ensure compliance with the provisions of all applicable laws and that such systems are adequate and operating effectively.

17. DECLARATION OF INDEPENDENCE BY INDEPENDENT DIRECTORS

Your Company has received declarations from all the Independent Directors confirming that they meet the criteria of independence as provided under Section 149(6) of the Companies Act, 2013 and under Regulation 25 (8) of Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015.

18. SECRETARIAL STANDARDS

The Company has complied with the applicable Secretarial Standards during the Financial Year ending 31.03.2022.

19. SEXUAL HARASSMENT PREVENTION

SJVN has implemented the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013 in its entirety.

Internal Complaints’ Committees as per the provisions of the Act have been constituted at Corporate Office and Projects sites of SJVN.

Summary of Sexual harassment issues raised, attended and dispensed during the year 2021-22 has been disclosed in Report on Corporate Governance.

20. RISK MANAGEMENT FRAMEWORK

The risk management framework entails formulation of a Risk Matrix to assign the likelihood of occurrence to the assigned risks along with definition of nature of risk viz. controllable, Uncontrollable & partly controllable, suggesting a mitigation mechanism and lead responsibility centre. The risk management policy has a defined Risk Organization Structure with Chief Risk Officer at the helm supported by Risk Controller along with Risk Managers and Risk Officers performing the line functions.

The Risk Management Strategy includes assessment of risk to designate as falling under Avoidance, Transfer, Reduction or Retention with associated action plan.

The Risk Management Policy has been disclosed on the website of the company and may be accessed at Investor Relation Section on SJVN website www.sjvn.nic.in.

21. SECRETARIAL AUDIT

The Board appointed Shri Santosh Kumar Pradhan, Practicing Company Secretary, to conduct Secretarial Audit for the Financial Year 2021-22. The Report of the Secretarial Auditors for the year ended 31.03.2022 is placed at Annexure-IX. Reply of Board to observations of Secretarial Auditor is placed at Annexure-X.

22. STATUTORY AUDIT

M/s APT & Co. LLP, Chartered Accountants, were appointed by Comptroller & Auditor General of India, as Statutory Auditors of the Company for the financial year 2021-22.

The Revised Report of the Statutory Auditors to the Members on the Standalone and Consolidated Accounts for the year ended

31.03.2022 is placed at Annexure-XI and Annexure-XIII respectively. Reply of Board to observations of Statutory Auditor on Internal Financial Control on the Standalone and Consolidated Accounts are placed at Annexure-XII and Annexure-XIV respectively. Observations/ Comments of the Comptroller and Auditor General (C&AG) of India on the Standalone and Consolidated Accounts for the year ended

31.03.2022 are placed at Annexure-XV and Annexure-XVI respectively. Comments of C&AG being NIL the reply by the Board thereto is not applicable.

23. ANNUAL RETURN

The Annual Return in Form MGT-7 as required under Section 92(3) of the Companies Act, 2013 can be accessed at Investor Relation Section on SJVN website www.sjvn.nic.in.

24. COST RECORDS AND AUDIT

Pursuant to the Central Government directions to audit Cost Accounting Records as maintained by the Company, your Company appointed M/s Balwinder & Associates, Cost Accountants, as Cost Auditor for the year 2021-22. The Cost Audit Report for the year ended 31st March 2021 was filed with MCA on 01.09.2021.

25. INTERNAL FINANCIAL CONTROL SYSTEM

Internal controls are the mechanisms, rules and procedures implemented by a company to ensure the integrity of financial and accounting information, promote accountability and prevent fraud. Financial controls are processes, policies and procedures that are implemented to manage finances.

The company has adequate internal control system and the transactions/processes are guided by delegation of powers, policies, rules, guidelines and manuals framed in compliance with relevant laws and regulations. The organizational structure is well defined in terms of structured authority/responsibility involved at each particular hierarchy/level.

The company has sufficient internal control over financial reporting to ensure assurance regarding the reliability of financial reporting and in the preparation of financial statements for external purposes in accordance with generally accepted accounting principles.

In order to ensure adequacy of internal control system, internal audit is conducted by the independent Chartered Accountants firms in close co-ordination with company’s own internal Audit Department. The internal Audit process includes review and evaluation of effectiveness of existing processes, controls and compliances. It also ensures adherence to rules, procedures, policies and systems and mitigation of the operational risks perceived for each area under audit.

It is also informed that significant Audit observations and Action Taken reports are placed before the Audit Committee headed by Independent Directors. The recommendation and directions of the Audit Committee are carried out and complied with.

26. RELATED PARTY TRANSACTIONS & POLICY

In compliance with the provisions of Regulation 23 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, the company has formulated a Policy on Materiality of Related Party Transactions and dealing with Related Party Transaction, duly approved by the Board of Directors and the same has come into force with effect from 1st October 2015.

All contracts/ arrangements/ transactions entered by the company during the financial year with related parties were in the ordinary course of business and on arm’s length basis. During the year, the company had not entered into any contract/ arrangement/ transaction with related parties, which could be considered material in accordance with the policy of the company on materiality of related party transactions or provisions of SEBI (LODR) Regulations, 2015. Your attention is drawn to the Financial Statements, which sets out the Related Party Disclosures under Note no. 2.46.

The Policy on Materiality of Related Party Transactions and dealing with Related Party Transaction has been disclosed on website of the Company and may be accessed at Investor Relation Section on SJVN website www.sjvn.nic.in.

27. CONSOLIDATED FINANCIAL STATEMENTS

In accordance with the Indian Accounting Standard (Ind AS)-110 on Consolidated Financial Statements read with Ind AS-111 on Joint Agreements and Ind AS-112 on Disclosure of Interest in other entities, the Audited Consolidated Financial Statements are provided in the Annual Report. Directors Report / Financial Statements in respect of following Subsidiary Companies are also included in this Annual Report: -

a) SJVN Thermal Private Limited.

b) SJVN Arun-3 Power Development Company Private Limited, Nepal.

c) SJVN Green Energy Limited.

28. DETAILS OF DIRECTORS OR KMP APPOINTED/ RESIGNED

During the FY 2021-22, the following changes took place in the composition of the Board of Directors or KMP of the Company: -

a. Shri Ram Subhag Singh, Additional Chief Secretary (MPP & Power), ceased as Part-Time Official Director (GoHP Nominee) on withdrawal of Nomination by appointing authority w.e.f. 02nd June 2021.

b. Shri Ram Dass Dhiman, Additional Chief Secretary (Power) was appointed as Part-Time Official Director (GoHP Nominee) w.e.f. 22nd June 2021.

c. Shri Tanmay Kumar, Joint Secy., Ministry of Power, Government of India (GoI) ceased as Part Time Official Director (GoI Nominee) on withdrawal of Nomination by appointing authority w.e.f. 31st August 2021.

d. Shri Raghuraj Rajendran, Joint Secy., Ministry of Power, Government of India (GoI) appointed as Part Time Official Director (GoI Nominee) w.e.f. 13th September 2021.

e. Dr. Udeeta Tyagi and Shri Saroj Ranjan Sinha were appointed as Part Time Non-Official Independent Director w.e.f. 08th November, 2021.

f. Dr. Danveer Singh Yadav was appointed as Part Time Non-Official Independent Director w.e.f. 09th November, 2021.

g. Shri Subhash Chander Negi and Dr. Rajnish Pande ceased to be Part Time Non-Official Independent Director on 25th March, 2022 on completion of their tenure.

The following changes took place during the current financial year 2022-23 till the date of the Director’s Report:

a. Shri Surinder Pal Bansal who was holding the post of Director (Civil) since 01st April, 2019 has been placed under suspension by Ministry of Power, Government of India Order No.C-13011/52/2022-V&S dated 28th July, 2022.

None of the Directors are inter-se related to each other.

The Board Meetings held during the Financial Year 2021-22 and the attendance of the Directors therein is mentioned in the Report on Corporate Governance.

29. BOARD LEVEL COMMITTEES

The composition of the Statutory Committees required to be constituted as per the Companies Act 2013 and the SEBI Listing Regulations and the meetings held therein are mentioned in the Corporate Governance Report.

30. KEY MANAGERIAL PERSONNEL

In compliance with Section 203 of the Companies Act, 2013, following have been designated as Key Managerial Personnel: -

1. Shri Nand Lal Sharma, Chairman & Managing Director.

2. Shri Akhileshwar Singh, Director (Finance) & Chief Financial Officer.

3. Shri Soumendra Das, Company Secretary.

31. IMPLEMENTATION OF OFFICIAL LANGUAGE

In order to ensure the implementation of the Official Language Policy of the Govt. of India, all possible efforts have been made by the company to achieve the targets as specified by the Department of Official Language.

Under section 3.3 (i) of Official Language Act cent percent documents were issued bilingually & all the letters received in Hindi were replied to in Hindi. Company’s website is already in bilingual form and it is updated from time to time.

To encourage executives and non-executives to do their entire work in Hindi, number of incentive schemes are under implementation namely Payment of increment of three months during the year, for doing his/her whole office work in Hindi during the year and under this scheme a total 186 Employees/Officers were awarded cash prizes amounting to ''9,80,110/-(Approx.).

15 Hindi workshops/seminars have been organised and 261 no. of executives and non-executives have been trained. Organising of Hindi quiz competitions on national/important occasions and other competitions (i.e. Nibhand (Essay writing), Kahani, Noting-drafting, Shabdarth gyan, Sulekh, Hindi Vyakaran Rajbhasha Niti & Shodhpatra competition) is a regular feature and besides this number of competitions were also organised during “Rajbhasha Pakhwada”. In these competitions 201 no. of employees were awarded cash prizes amounting to ''2,89,900/-.

To popularise Hindi amongst the students of Schools/ Colleges/ Institutions/Universities situated in the vicinity of projects as well

as Corporate Office, Shimla various Hindi competitions were organised during the year under review and 63 no. students were awarded cash prizes amounting to ''37,000/-.

To popularise Hindi in a big way a ’Akhil Bhartiya Kavi Sammelan’ was organised on 24.09.2021 at Shimla.

The Officials from Ministry of Power inspected the progress of use of Hindi at CHQ, Shimla during the year under review and expressed its satisfaction about the progress made in this regard.

Half yearly meetings of the Town Official Language Implementation Committee, Shimla (Office-2) constituted for the CPSUs & Banks etc. were held on 26.07.2021 & 29.12.2021.

To give impetus to the multi-facet talent of employees an inhouse bi-annual Hindi magazine "Himshakti” was published and circulated. Out of total expenditure on purchase of books, 85.71% of amount was spent on purchase of Hindi books.

32. AWARDS & ACHIEVEMENTS

1. 25 March, 2022: SJVN conferred with prestigious Global CSR Excellence and Leadership Award by World CSR Congress in Mumbai for the Best Covid -19 Solution for Community Care.

2. 19 December, 2021: Shri Nand Lal Sharma, Chairman & Managing Director, SJVN, has been conferred with HIM RATTAN Award by Promoters of Social & Cultural Heritage of Himachal Pradesh at, Shimla.

3. 15 December, 2021: SJVN has been awarded the SHRM India HR Excellence Award 2021 for future focused excellence in the field of People Management & Excellence in Community Impact.

4. 05 December, 2021: Shri Nand Lal Sharma, Chairman & Managing Director, SJVN Conferred Award under Owner under whose Guidance the Best Built Infrastructure Project was Built.

5. 03 September, 2021: SJVN has been conferred with prestigious Dun & Bradstreet - Corporate Award 2021 in the category of Best Growth Performance-Power.

6. 17 August, 2021: Shri Nand Lal Sharma, CMD SJVN, Conferred with ’LIFETIME ACHIEVEMENT AWARD -TROPHY’ for the year 2020 by INDIAN CONCRETE INSTITUTE, Shimla.

7. 04 June, 2021: Sh. Nand Lal Sharma, Chairman & Managing Director, SJVN conferred with PSU Award of the Year 2020 by Dalal Street Investment Journal (DSIJ).

33. OTHER MAJOR DEVELOPMENTS

1. 31 March, 2022: SJVN has incorporated a fully owned Subsidiary Company ‘SJVN Green Energy Limited’ (SGEL).

2. 17 March, 2022: SJVN secured 100 MW Grid Connected Solar Power Project in Gujarat through Tariff Based Competitive Bidding conducted by Gujarat Urja Vikas Nigam Limited (GUVNL).

3. 26 February, 2022: SJVN bagged its first ever 15 MW Grid Connected Floating Solar PV Power Project at Nangal pond, near village Neilla, District Bilaspur, Himachal Pradesh.

4. 11 January, 2022: SJVN bagged two grid connected solar power projects of 125 MW capacity through tariff based Competitive Bidding Process conducted by Uttar Pradesh New & Renewable Energy Development Agency.

5. 11 January, 2022: SJVN granted Power Trading License for interstate trading of electricity by CERC.

6. 29 December, 2021: SJVN allotted 05 Hydro Electric Projects having total capacity of 5097 MW by Govt. of Arunachal Pradesh.

7. 27 December, 2021: Prime Minister Shri Narendra Modi virtually laid the Foundation Stones of SJVN’s 210 MW Luhri Stage-1 Hydro Electric Project located in Shimla & Kullu districts of Himachal Pradesh and 66 MW Dhaulasidh Hydro Electric Project situated in Hamirpur & Kangra districts of Himachal Pradesh.

8. 03 November, 2021: SJVN bagged 100 MW Grid connected Solar PV Power Project from Punjab State Power Corporation Ltd.

9. 14 August, 2021: SJVN bagged 200 MW Grid connected Solar PV Power Project in Bihar.

10. 11 July, 2021: Memorandum of Understanding signed for the development of 679 MW Lower Arun HEP between SJVN & Investment Board of Nepal in Kathmandu Nepal.

34. PARTICULARS OF LOANS GIVEN, INVESTMENTS MADE GUARANTEES GIVEN AND SECURITIES PROVIDED UNDER SECTION 186 OF COMPANIES ACT, 2013

Particulars of loans given, investments made, guarantees given and securities provided along with the purpose for which the loan or guarantee or security is proposed to be utilized by the recipient are as under:-

Particulars

Details

Loans given

Refer Note 2.6 and 2.14 to standalone financial statements

Investments made

Refer Note 2.5 to standalone financial statements

Guarantees given

Refer Note 2.50

Securities provided

Nil

35. DETAILS OF NON-CONVERTIBLE SECURITIES ISSUED

During the year, the company has issued Non-Convertible, Redeemable Debenture of Rs.1000.00 Crore through private placement at a coupon rate of 6.10% p.a for 5 years tenor. List of Investors are as under: -

Sr.

No.

Issue size (including ISIN No)

Name(s) of Debenture Holder

Date of Allotment

Date of Maturity

1

Rs. 500 Crore ISIN: INE002L08010

S B I Capital Markets Limited

29.09.2021

29.09.2026

2

Rs. 465 Crore ISIN: INE002L08010

Axis Bank Limited

3

Rs. 25 Crore ISIN: INE002L08010

Trust Investment Advisors Pvt Ltd.

4

Rs. 10 Crore ISIN: INE002L08010

Mahindra Manulife Dynamic Bond Yojana

36. DETAILS OF EXTERNAL COMMERCIAL BORROWINGS (ECB)

During the year, the company has issued ECB from PNB, Dubai amounting to USD 500 million at an interest rate of 6M LIBOR plus spread of 130 basis point and upfront processing charges 1.50% p.a. for 5 years tenor.

37. GENERAL

Directors of your Company state that no disclosure or reporting is required in respect of the following items as there were no transactions/ events on these items/ matters during the year under review:

1. The Company has not accepted any deposits during the year under review.

2. Issue of equity shares with differential rights as to dividend, voting or otherwise.

3. Neither the Managing Director nor the Whole-time Directors of the Company receive any remuneration or commission from any of its subsidiaries.

4. No significant or material orders were passed by the Regulators or Courts or Tribunals which impact the going concern status and Company’s operations in future.

5. There have been no Material Changes and Commitments affecting the financial position of the company which have occurred between the end of the financial year 2021-22 and the date of this report.

6. The company has not made any buyback of shares during the year under review.

7. There have been no changes in the nature of business of the company during the year.

8. No application was made or any proceeding was pending against SJVN Limited under the Insolvency and Bankruptcy Code, 2016 during the financial year 2021-22.

38. ACKNOWLEDGEMENT

The Board of Directors acknowledge with deep appreciation, the co-operation and guidance extended by various Ministries/Departments of the Government of India, particularly, Ministry of Power, Ministry of Finance, Ministry of External Affairs, Ministry of Environment & Forest, Central Electricity Authority, Central Water Commission, Geological Survey of India, the Government of Nepal, the Government of Bhutan, the Government of Himachal Pradesh, particularly, the Departments of Power, Finance and Forests, the Pollution Control Board, State Governments of Bihar, Uttarakhand, Gujarat, Uttar Pradesh and Maharashtra, the State Electricity Boards and the World Bank.

Your Directors also convey their gratitude to the shareholders, various international and Indian banks and financial institutions for the confidence reposed by them in the Company. The Board also acknowledges and appreciates the contribution made by Contractors, Vendors, Consultants and others for achieving the planned goals of the Company.

The Board also places on record its deep appreciation of valued cooperation extended by the Office of the Comptroller and Auditor General of India and the Auditors. Last but not least, the Board commends the hard work and dedicated efforts put in by the employees of the Corporation including the employees on deputation at all levels.

For and on behalf of Board of Directors(Nand Lal Sharma) Chairman and Managing Director DIN: 03495554Date: 12th August, 2022Place: Shimla


Mar 31, 2018

Dear Members,

The Directors are pleased to present the Thirtieth Directors’Report of the Company for the year ended March 31, 2018 along with the Audited Statement of Accounts, Report of Auditors and Comments of the Comptroller and Auditor General of India.

The following financial highlights for the year ending 31st March 2018 briefly encapsulate the performance of your company:-

1. FINANCIAL HIGHLIGHTS (Rs.in Crore)

PARTICULARS

STANDALONE

CONSOLIDATED

2017-18

2016-17

2017-18

2016-17

REVENUE

Revenue from Operations

2229.97

2679.31

2228.50

2679.14

Other Income

357.10

440.59

355.45

438.25

Total Revenue

2587.07

3119.90

2583.95

3117.39

EXPENSES

Employees’Benefits Expense

265.22

253.39

265.37

253.56

Finance Cost

83.82

45.70

83.82

45.70

Depreciation and Amortization Expenses

364.51

679.98

364.51

679.98

Other Expenses

276.25

235.68

276.29

235.96

Total Expenses

989.90

1214.75

989.99

1215.20

Profit before non-controlling interests / Share in Net-profit of Joint Venture / Associate and net movement in regulatory deferral account balance and tax

1597.27

1905.15

1593.96

1902.19

Share in Profit of Joint Venture / Associate

-

-

3.04

4.10

Profit before Net Movement in regulatory deferral account balance and tax

1597.27

1905.15

1597.00

1906.29

Net Movement in regulatory deferral account balance

51.10

(31.22)

51.10

(31.22)

Profit Before Tax

1648.37

1873.93

1648.10

1875.07

Tax Expenses:

- Current Tax

351.43

399.94

351.43

399.94

- Deferred Tax

72.06

(70.15)

72.06

(70.15)

Profit for the year

1224.88

1544.14

1224.61

1545.28

Other Comprehensive Income (Net of Tax)

(11.94)

(3.96)

(11.94)

(3.96)

Total Comprehensive Income

1212.94

1540.18

1212.67

1541.32

2. GENERATION

Gross Energy Generation from various operational plants of the Company during FY 2017-18 is as under:-

(Million Units (MU))

Plant

2017-18

2016-17

NJHPS

7207.666

7050.622

RHPS

2014.925

1960.367

KWPS

51.096

33.939

CSPS

6.566

-

Total

9280.253

9044.928

3. REVENUE AND PROFITS

The standalone revenue from operation decreased by Rs.449.34 crore to Rs.2229.97 crore during the financial year 2017-18 compared to Rs.2679.31 crore during the previous year. The standalone Profit After Tax (PAT) decreased by Rs.319.26 crore to Rs.1224.88 crore against Rs.1544.14 crore for the previous year.

The subsidiary and Joint Venture companies are under Survey & Investigation/Construction except CPTC, which is in operation. Consolidated accounts with the subsidiary & joint venture companies has resulted in decrease in profit of consolidated group by Rs.(0.27) crore (PY Rs.1.14 crore) mainly due to elimination of intra group transactions as compared to SJVN Limited and reduction of proportionate share of profit by Rs.1.06 crore to Rs.3.04 crore in current year (previous year Rs.4.10 crore) from CPTC.

4. TRANSFER TO RESERVES

During the year no amount was transferred to Reserves of the Company.

5. DIVIDEND

During the year an interim dividend of Rs.1.90 per share has been paid in the month of February 2018. In addition, your Board has recommended a final dividend of Rs.0.20 per share. Thus, subject to your approval, a total dividend of Rs.2.10 per share (Rs.864.56 crore) is proposed to be paid for FY 2017-18 against Rs.2.75 per share (Rs.1137.57 crore) paid during the previous year.

6. BUYBACK OF SHARES

Your Company had bought back its 20,68,31,325 fully paid up equity sharesof Rs.10/- each (representing 5% of the total number of equity shares in the paid-up share capital of the Company) at a price of Rs.38.75 per equity share, payable in cash for an aggregate consideration not exceeding Rs.801,47,13,843.75 which was not exceeding 10% of the aggregate of the fully paid-up equity share capital and free reserves as per the audited accounts of the Company for the financial year ended March 31, 2017 from the equity shareholders of the Company. The buyback was approved by the Board of Directors of your company in its 260th Meeting held on 8th January 2018.

The Buyback offer opened on Wednesday, 14th February 2018 and closed on Wednesday, 28th February 2018. The payment was made to the shareholders on 12th March 2018 who tendered their shares in the Buyback Offer and the Committee of Directors for Buyback (constituted by the Board in its 260th meeting) passed a resolution on 13th March 2018 for extinguishment of 20,68,31,325 equity shares. Accordingly, CDSL extinguished 20,68,31,325 equity shares through a corporate action on 14th March 2018. The paid up capital of Rs.4,136.26 Crore comprising 4,13,66,26,500 equity shares of Rs.10/- each before Buy-back thus got reduced to Rs.3,929.79 Crore comprising 3,92,97,95,175 equity shares of Rs.10/- each after the Buy-back.

7. PROJECTS UNDER PROGRESS

7.1 HIMACHAL PRADESH PROJECTS:

a) LUHRI HEP (Stage I : 210 MW, Stage II: 163 MW, Sunni Dam: 373 MU)

Luhri Hydro Electric Project is located on river Satluj in Shimla/ Kullu/Mandi districts of Himachal Pradesh. Government of Himachal Pradesh (GoHP) in March 2015 advised SJVN to review/explore the possibility of executing the LHEP as multistage project instead of single stage on account of social and environmental/ ecological concerns. Accordingly three stages / projects (i.e. Luhri HEP Stage-I - 210 MW, Luhri HEP Stage-II - 163MW and Sunni Dam HEP - 373 MW) envisaged by SJVN to harness the Hydel potential of Satluj river between Rampur and Kol Dam Hydro Electric Projects. Govt. of H.P. reallocated all three projects on “Stand Alone Basis” to SJVN on 29.08.2017.

LUHRI HEP STAGE-I (210 MW):

It is a Run off River (RoR) scheme with capacity of 210 MW is located on river Satluj, near Nirath village, in Shimla and Kullu Districts of Himachal Pradesh. The project has potential of generating 758.20 MU of electric energy in a 90% dependable year. Investment approval for pre-construction activities for Rs.86.53 Crore was accorded by GoI on 08.02.2018.

DPR was submitted to CEA on 30.12.2016. CEA in final consultation meeting held on 16.01.2018 has concurred the project for an estimated project cost of Rs.1912.59 Crore at July 2017 level.

After conducting public hearing, final EIA/EMP report along with application for Environment Clearance submitted to MOEF on 20.02.18, was considered in EAC meeting held on 27.03.2018. Observations of EAC are being attended by the company.

Online application for diversion of forest land was submitted to Nodal Officer on 19.12.2017. Forest land diversion case file is under process by State Forest Department for forwarding to MOEF&CC through Nodal Officer. NOCs under FRA-2006 have been obtained. CAT Plan has been approved and forwarded to ADG (Forest), MOEF&CC by GOHP on 19.02.2018.

For the acquisition of private land, work for carrying out SIA study was awarded by GoHP on 29.01.2018 and the consultant has submitted the report to SIA Unit, GoHP on 21.05.2018. LUHRI HEP STAGE-II (163 MW):

It is a run off river type development proposed on Satluj River near Nanj village, in Shimla, Kullu & Mandi districts of Himachal Pradesh. Investment approval for pre-construction activities of Rs.72.478 Crore was approved by GOI on 16.03.2018. Pre-DPR chapters are under preparation and five out of six chapters have been submitted to CEA for holding 1st consultation meeting. TOR of EIA / EMP studies has been approved by MOEF on 27.03.2018. Tendering Process for award of work for EIA/EMP studies and drilling & drifting work is in progress.

SUNNI DAM HEP (373 MW):

It is a run off river type scheme situated on Satluj river near Khaira village in Shimla and Mandi districts of Himachal Pradesh. The Project has potential to generate 1369 MU of electric energy in a 90% dependable year.

1st consultation meeting for preparation of DPR was held in CEA on 17.08.2017. Pre-DPR chapters are under preparation and being submitted to CEA progressively. Four out of nine Pre-DPR chapters have been cleared by CEA. Drilling and drifting works, awarded on 14.11.2017 and 08.01.2018 are under progress.

For preparation of EIA/EMP studies contract was awarded on 30.10.2017 and collection of field data is in progress by the consultant.

Online application for diversion of forest land was submitted on 27.12.17. The officials of Revenue & Forest department have conducted joint inspection. NoCs from Wildlife & HPPWD have also been received.

For acquisition of private land received for the project, process for appointment of consultant for SIA studies initiated by the State Government for which EOI issued on 08.05.2018.

b) DHAULASIDH HEP (66 MW):

The Dhaulasidh Hydro-electric Project with proposed installed capacity of 66 MW is located on River Beas in Hamirpur and Kangra Districts of Himachal Pradesh. The Project is designed as run off river project. The project holds potential of generating 247.25 million units of electric energy in a 90% dependable year.

GoHP accorded TEC of the Project on 25.06.2011. Stage-1 Forest Clearance was accorded by MoEF, Govt. of India on 06.03.2012 and further extended up to 01.11.2018. Environment Clearance was accorded by GoI on 21.02.2013. Process of acquisition of private land as per LARR Act 2013 has been started by State Govt. Application for carrying out SIA study was submitted to GoHP. As desired by GoHP, fresh revenue papers for all 40 villages have been prepared and submitted to GoHP on 04.04.2018 for further processing.

7.2 UTTARAKHAND PROJECTS

a) DEVSARI HEP (252 MW)

A Run off River (RoR) scheme with proposed installed capacity of 252 MW is located on River Pinder, a major tributary of river Alaknanda in Chamoli District of Uttarakhand State. The project will generate 936.9 MU of energy in a 90% dependable year. The scheme was cleared by Govt. of Uttarakhand in October 2007 and by Standing Technical Committee in April 2012. DPR of the project was concurred by CEA in August 2012.

Stage-I Forest Clearance (FC-I) was accorded by MOEF on 26.02.2018. Further, EAC in its meeting held on 27.03.2018 recommended the project for Environment Clearance subject to submission of technical feasibility report related to construction of protection wall around Debal Power House (5MW). As per condition of FC-1, approved technical feasibility report for construction of protection wall to avoid submergence of Debal SHEP (5 MW) to be submitted to MoEF& CC prior to Stage-II Forest Clearance. To review the technical feasibility report of construction of protection wall, consultancy work was awarded to IIT, Roorkee who have submitted their report on 27.04.2018. The report was submitted to Director (IA), MoEF&CC on 30.05.2018 for accord of EC.

For private land required for the project, payment has been made to State Government and issuance of notification under section 11 is in advance stage.

b) NAITWAR MORI HEP (60 MW)

The Naitwar Mori HEP having proposed installed capacity of 60 MW is located on River Tons, a major tributary of River Yamuna in Uttarkashi District of Uttarakhand. The project is designed as run off the river project and has the potential to generate 265.5 MU of energy in a 90% dependable year. Private Land required for the project acquired on 23.05.2017. For diversion of Forest land required for project, lease agreement was signed on 01.12.2017. Mining clearance was issued on 22.02.2018 and signing of lease agreement is in process.

Investment approval for an estimated cost of Rs.648.33 Crore by GoI accorded on 16.10.2017 at December, 2016 Price Level as per which project is to be completed in 48 months from commencement i.e. from 05.12.2017.

Construction of project access roads and bridges joining Project components already completed.

Contracts for construction of Project offices and residential accommodation was awarded in March & April 2018.

Main Civil Works of Project were awarded on 05.12.2017 to M/s Jaiprakash Associates Ltd. and work at various fronts is in progress.

Hydro-Mechanical works Package was awarded on 18.04.2018 and Electro-Mechanical Package on 12.06.2018.

Hon’ble Union Minister of State (Independent Charge) for Power and Hon’ble Chief Minister of Uttarakhand laid the foundation stone of Project at Mori on 30.03.2018.

The project is scheduled for commissioning by 04.12.2021.

c) JAKHOL SANKRI HEP (44 MW)

Jakhol Sankri HEP with proposed installed capacity of 44 MW is located on River Supin, a tributary of River Tons in Uttarkashi District of Uttarakhand. The project is designed as run off river project and will generate 166.19 MU of energy in a 90% dependable year.

GoI accorded investment approval for pre-construction activities of project at an estimated cost of Rs.84.50 Crores on 15.09.2017.

Considering revised e-flows, DPR of 44 MW was prepared and submitted to GoUK on 19.08.2016 and approval of DPR is awaited from GoUK.

Work for the preparation of EIA/EMP report was awarded to M/s WAPCOS on 18.11.2016. EIA/EMP report submitted to Uttarakhand Environment Protection and Pollution Control Board (UEPPCB) for public hearing on 23.04.2018. Presentation on EIA/EMP to Member Secretary (SPCB) given by SJVN on 24.05.2018. Public hearing for the Project scheduled on 12.06.2018 could not be held successfully. NBWL accorded NOC on 23.08.2016. Online application for diversion of Forest Land was submitted on 05.12.2016. Duly filled up Form-2 forwarded by DFO to Deputy Director (Wildlife) on 22.06.2018 and further to conservator forest on 25.06.2018 for processing of case. For obtaining NOCs under FRA-2006, matter being taken up with District Administration. For private land acquisition, work for SIA studies was awarded on 20.03.2018 to H.N.B.G University and field data collection was done in April 2018 and draft report submitted on DM on 15.05.2018.

7.3 NEPAL PROJECT

a) ARUN-3 HEP (900 MW):

SJVN Arun-3 Power Development Company Pvt. Ltd (SAPDC) was established & registered on 25.04.2013 under the Nepalese Companies Act 2063 with an aim to implement Arun-3 Hydroelectric Project. The registered office of SAPDC is located at Kathmandu, Nepal. The project is a run-off-river scheme located on Arun River in Sankhuwasabha District of Nepal, which is 657 km from Kathmandu via Biratnagar. The project is a run off the river scheme with 4 hours peaking and will generate 3924 MU. Project was techno-economically appraised by CEA on 09.06.2014. Project Development Agreement (PDA) was signed with IBN, Government of Nepal (GoN) on 25.11.2014. As per PDA, the project is scheduled to be completed in 5 years reckoned from financial close and financial close is scheduled to be achieved by 28.09.2018. EIA report of the project was approved by MoSTE, GoN on 12.08.2015. Private land required for the project has been registered in the name of SAPDC. Lease agreement for diversion of 96.97 ha forest land was signed on 23.08.2017 and for balance 26.25 ha lease agreement was signed on 06.02.2018. Tree cutting is in progress. Government of India has accorded investment approval for generation component of the project at an estimated cost of Rs.5723.72 Crores at May 2015 Price level.

The works for construction of access roads and bridges through Department of Roads, GoN is in progress. Construction of temporary 10 single room sets accommodation at Dam site and office and residential complex at Tumlingtar completed.

Main Civil Package for Dam Area Civil works was awarded on 22.09.2017 to M/s JP Associates Limited. Construction of labour camps/ colony by contractor is in progress. After custom clearance for induction of equipment commenced on 31.01.2018. Work of approach road to Diversion Tunnel has been taken up by the contractor and is in progress. Construction of Adit 1 to HRT is in progress.

Civil package - 2 i.e. Power House civil works package was awarded on 19.03.2018 to M/s Patel Engineering Limited. Contractor is in the process of obtaining various approvals from GoN.

HM Package and EM Packages were awarded on 11.04.2018 and 30.04.2018 respectively.

Power Evacuation System: Power Evacuation system consists of 217 km long 400 kv DC Transmission line from Diding (project area) in Nepal to Dhalkebar (Nepal border). Updated DPR for Arun -3 Transmission Line upto Nepal border amounting to Rs.1236.13 crores has been approved by CEA on 07.02.2018 at PL of June 2017. PIB Memo for investment approval was submitted to MoP on 22.02.2018; after responding to various queries of the same, the draft PIB memo for circulation has been submitted on 02.05.2018.

Field Survey for R&R Plan and collection of land ownership details are under progress. Collection of land ownership details of all 7 districts has been completed. Powergrid has consented to be consultant for the work for which draft agreement is in the process of approval.

Indian portion of transmission line will be constructed by POWERGRID under Regulated Tariff Mechanism (RTM).

7.4 PROJECTS IN BHUTAN

a) KHOLONGCHHU HEP (600MW):

Kholongchhu Hydro Electric Project (600 MW) is located on river Kholongchhu in Bhutan will generate 2568 MU of energy annually.

Inter-Governmental Agreement between Royal Government of Bhutan (RGoB) and Government of India (GoI) for implementation of Kholongchhu HEP was signed on 22.04.2014. Hon’ble Prime Minister of India laid the foundation stone for the project on 16.06.2014. National Environment Commission (NEC) of RGoB accorded Environment Clearance for the Project on 21.07.2014.

The project is being implemented jointly by SJVN and Druk Green Power Corporation (DGPC) Bhutan. Joint Venture Company was registered as “Kholongchhu Hydro Energy Ltd” in Bhutan on 12.06.2015 with equal equity contribution. Concession Agreement is under approval of RGoB. Infrastructure work of project is in progress. 2 Bailey bridges required for Project has been completed. Construction of approach roads (30.5 km) to various work fronts have been completed.

Work for providing construction power i.e. laying of 132 KV D/C LILO transmission line is in progress, overall 95% work has been completed. Construction of 132 KV / 33 KV substation is also in progress and 78% work of substation has been completed.

Construction of site office at Powerhouse site (Korlung) is in progress. Layout plan of residential & non-residential buildings for township at Duksum has been approved by Royal Govt. of Bhutan and demarcation of land has been completed.

Award of main civil works in 3 packages is under tendering process.

7.5 THERMAL PROJECT

a) BUXAR THERMAL PROJECT (1320 MW)

A MOU had been signed between SJVN, Bihar State Power Holding Company Limited and Bihar Power Infrastructure Company for the development of 1320 MW Thermal Power Project as per Supercritical Technology at village Chausa in District Buxar of Bihar on 17.01.2013. Power Purchase Agreement (PPA) for the project had already been signed with Bihar State Electricity Board which constituted into Bihar State Power Holding Company Limited (BSPHCL) for 85% share of power generation on bus bar rate. This has been now assigned to Bihar’s State Distribution companies.

SJVN acquired the Project Executing Company i.e. Buxar Bijlee Company Private Limited on 04.07.2013. The name of Buxar Bijlee Company Private Limited was changed to SJVN Thermal Private Limited (STPL) on 17.10.2013, which is a wholly owned subsidiary company of SJVN Limited.

Investment approval for carrying out pre-construction activities of the project for Rs.436.68 Crore was accorded by GoI on 26.05.2015. DPR of the project has been updated on 29.08.2016 and site specific studies completed. MoEF has accorded Environment Clearance on 28.02.2017. Mutation of 1058.335 acre private land for project components was completed on 12.12.2017 and land has been transferred in the name of STPL. Barbed wire fencing of project land has been completed.

Consultancy work for preparation of DPR for setting up of Rail Infrastructure for the project was awarded to M/s RITES Ltd. on 16.03.2016. DPR prepared and submitted to East Central Railway (ECR), Hazipur for approval on 12.04.2017. Observations have been raised by Railways on rail route finalised in FSR. Further, long-term domestic linkage from Coal India Limited (CIL) for BTPP has been granted by Ministry of Coal on 21.08.2017. Matter was taken up with CIL for finalising the source of coal so that new route for coal transportation can be finalised with Railways. CIL has identified Central Coalfields Limited for supplying coal and the matter has been taken up with CCL for the exact coalfield source and for the letter of Assurance.

Work for the construction of 33kV line for construction power has been completed except the underground portion at railway crossing which shall be done by 31.07.2018. Payment for laying under ground cable at railway crossing has been released to SBPDCL. Construction of 33 / 11 KV substation in project area is in progress.

Work for the construction of boundary wall was awarded on 31.07.2017 and is in progress. Preparation of bid documents for main plant works is in progress.

A MoU has also been signed with MMTC Ltd on 24.02.2016 for supply of imported coal.

Revised PIB Memo for main plant works has been submitted to MOP on 20.02.2018. The draft PIB Memo for circulation has been submitted on 04.05.2018.

7.6 SOLAR PROJECTS

a) CHARANKA SOLAR POWER STATION (5 MW), GUJARAT:

SJVN’s 5 MW Charanka Solar Power Station has been commissioned on 31.03.2017. The project is located at Charanka Solar Park in Gujarat in an area of about 25.95 acres. The project has been conceived under REC Mechanism and the PPA for brown power has been signed with GUVNL on 03.03.2017. The project has generated 6.57 MU in the FY 2017-18.

7.7 WIND POWER PROJECTS

a) KHIRVIRE WIND POWER STATION (47.6 MW), AHMEDNAGAR, MAHARASHTRA

SJVN has set up its first Wind Power Project of 47.6 MW capacity at Khirvire / Kombhalne villages of Ahmednagar district of state of Maharashtra. The Project comprises 56 Wind Energy Generators (WEGs) each of capacity 0.85 MW. The project started generation w.e.f. 20th January 2014, with the commissioning of 1st lot of 25 WEGs and attained full generation capacity by commissioning the last 56th WEG on 20.05.2014.

b) SADLA WIND POWER PROJECT (50 MW), SURENDERNAGAR, GUJARAT:

Your Company is setting up its second Wind Power Project of 50 MW capacity, comprising 25 WEGs each of capacity 2 MW at village Sadla, Distt. Surendranagar, Gujrat. The EPC Contract of the Project with its comprehensive O&M has been awarded to M/s Inox Wind Limited. PPA has been signed with Gujarat Urja Vikas Nigam Limited (GUVNL) for 38 MW on 30.01.2018. The construction of work is in progress & project is likely to be commissioned in FY 2018-19. Out of 25 WEGs, tower foundations of 17 WEGs and erection of 16 WEGs has been done. GEDA commissioning of thirteen WEGs has been completed.

7.8 TRANSMISSION PROJECTS

Cross-Border Inter State Transmission 400 kV, D/C Link for trade of Power between Nepal & India has been developed by two Joint Venture Companies namely CPTC and PTCN. CPTC has executed the Indian portion (86 km) of the said link between Muzaffarpur & Sursand wherein SJVN has 26% equity share along with IL&FS Energy Development Company Ltd. (38%), POWERGRID (26%) and Nepal Electricity Authority (NEA) (10%). The other portion of the link on the Nepal side (39 Km) between Sursand & Dhalkebar has been executed by PTCN registered in Nepal having partners IL&FS Energy Development Company Ltd. (26%), POWERGRID (26%) and Nepal Electricity Authority (NEA) (48%).

The Power Transmission line was declared under commercial operation from 00:00 Hrs of 19.02.2016 and was dedicated to the Nation jointly by the Prime Ministers of India and Nepal on 20.02.2016. Presently, around 145 MW of power is flowing between India & Nepal through the 220/132 kV, 2X100 MVA transformers. The completed/Audited cost of Project (CPTC) is Rs.242.55 Crore.

8. ENVIRONMENT

Your Company is sensitive towards protection of environment through sustainable use of natural resources.

In response to your commitment and concern towards green planet and sustainable development, your company had adopted an Environment Policy in 2006.

Owing to the ever-evolving environmental scenario and diversification of the organization, your company has revised the Environment Policy in September 2016, with the intent to address mainstream environmental concerns in all its activities. Accordingly, due diligence is done by SJVN to execute all its projects in an environment friendly manner. Projects in SJVN are being regularly reviewed and monitored for stipulated environmental parameters through internal and external monitoring mechanisms. It is ensured that the projects are in compliance to various conditions stipulated by Ministry of Environment and Forests & Climate Change (MoEF&CC), Government of India in Environment and Forest Clearances.

Your Company’s Corporate Objectives also promote conservation and protection of environment and ‘Striving clean and green project environment with minimal ecological and social disturbances’. Towards this end, your company has formulated project specific Environment Management Plans (EMPs) to minimize or offset any adverse impact on the environment during project construction or operation phase for sustenance of resources over a long term.

Your Company has successfully undertaken various measures for Environment Management at Nathpa Jhakri and Rampur Hydro Power Stations including Catchment Area Treatment (CAT) Plan, Compensatory Afforestation, Soil Stabilization, Avenue Plantation & Landscaping, Restoration of Muck Dumping Sites & Quarry Areas and Sustenance and Enhancement of Fisheries etc.

Restoration work of Muck Dumping Sites in Rampur HPS was largely one using state of the art Geo-Green Erosion control Blanket technique which was designed and evolved to provide an integrated solution for slope stabilization. The success achieved here has prompted your company to work towards improving this technique further and replicating the technique in other projects.

True to its commitment for self-regulation and environment protection, your company has also established an Environment Laboratory at Jhakri on the guidelines laid down by the MoEF & CC, Government of India. The laboratory is the first of its kind in the area and has facility for conducting Water and Wastewater analysis, Microbiological testing, Ambient Air Quality monitoring, Noise monitoring, Meteorological monitoring, Soil/ Sludge/Sediment, Solid Waste Testing and Metal analysis.

9. CSR AND SUSTAINABILITY

An annual report of Corporate Social Responsibility, highlighting the Company’s CSR Policy, details of expenditure on CSR and overview of projects/ programs/ activities undertaken by the Company during FY 2017-18 in format prescribed under Companies (CSR Policy) Rules 2014 is annexed as Annexure-V and forms an integral part of this Directors’Report.

10. REHABILITATION AND RESETTLEMENT

SJVN, being conscious of its responsibilities towards society, is committed to execute and operate power projects in a socially responsible manner by adopting generous Resettlement & Rehabilitation measures for the benefit of project affected families (PAFs) and by investing in socioeconomic development of communities so as to continually minimize potential negative impacts as well as to establish sustainable positive impact of projects on them.

Well before any project is taken up for execution, social impact assessment (SIA) study is carried out to ensure that the potential socio-economic benefits accrued from the project outweigh the social costs and adverse social impact. Public consultation meetings with the stakeholders are held by the project authorities to make the local communities aware of developmental facilities to be created in the field of health, education, sanitation, drinking water, approach roads and other community assets of the project and their benefits to the society. Subsequently, the R&R plan is devised based on conclusive findings derived from socio economic survey carried out by an independent expert agency. The R&R plan thus devised and approved, essentially prescribes mitigation measures for reconstruction and regeneration of economies of the PAFs.

During implementation stage of the R&R plan, regular monitoring of R&R activities is conducted through an external independent agency to ensure timely extension of R&R benefits to the PAFs. Similarly, after completion and R&R implementation of plan, social impact evaluation is carried out by independent external agency to assess various tangible and intangible benefits accrued in the area of socio economic development. The R&R plans have been successfully implemented in 1500 MW Nathpa Jhakri Hydro Power Station (NJHPS) and 412 MW Rampur Hydro Power Station (RHPS) both located in Himachal Pradesh, whereas R&R plan is in the initial stage of implementation in 60 MW Naitwar Mori Hydro Electric Project (Uttrakhand). Several benefits under R&R Plan, like providing alternate agricultural land, allotment of constructed houses in rehabilitation colonies or grant of construction cost to houseless PAFs, suitable employment to eligible landless PAFs or financial assistance in lieu of employment, subsistence allowance have been provided to PAFs. In addition to these benefits, other capital assets have been created which include infrastructure and community development facilities like village paths, roads, panchayat bhawans, school infrastructure, playgrounds, drinking water, health & hygiene etc. The local farmers around RHPS have been adequately compensated for reduction in crop yield as per the crop compensation policy of the Government of HP. Besides this, funds of Rs.55.26 Crores have been spent under Local Area Development Fund (LADF) for carrying out various infrastructural development works. The Social Impact Assessment Study of 210 MW LHEP stage-I (H.P) is being carried out by GoHP empanelled agency

The social impact evaluation of R&R plan implemented in NJHPS and RHPS was carried out by Agriculture Economic Research Centre (AERC) of Himachal Pradesh University. The report submitted by AERC revealed that R&R implementation in the project-affected areas have substantially enhanced socio-economic standard of the local population on various development parameters.

11. RESEARCH AND DEVELOPMENT

SJVN has laid special attention on Research and Development for Process Improvement, Product Development etc. in its area of operation.

SJVN has undertaken following activities during FY 2017-18 under R&D and innovative work category.

a) Comparative Study and finalization of best-suited seals for MIV seals of different material viz. PTFE, Ultra High Molecular Weight Polyethylene seal and Poly Urethane Elastomer self-lubrication casting seals by NJHPS.

b) Surface hardening of four repaired runners by RHPS.

c) ”GNLU-SJVN Fellowship” in the area of Hydro Power Development and Environment Laws and R&R Laws - MoU signed for a period of three years.

All the R&D activities and targets have been successfully completed for financial year 2017-18 under the guidance of eminent professionals from various Engineering fields and in collaboration with renowned Research Institutes.

12. HUMAN RESOURCES

The total manpower on the rolls of SJVN (Direct Recruits and Absorbed employees) was 1442 as on 31.03.2018. The strength of HPSEB / HP Govt. employees on deputation on the above date was 160. Representation of Women Employees is as under:-

Total Employees as

Number of Women

Percentage of overall

on 31.03.2018

employees

staff strength

1442

147

10.19

Representation of Physically Challenged Employees is as under:-

Total Employees as on 31.03.2018

Physically Challenged Employees

Percentage of Physically challenged employees

VH

HH

OH

Total

1442

16

06

06

28

1.94

Representation of SC/ST/OBC Employees is as under:-

Total Employees (as on

Representation

31.03.2018)

SCs

SC%

STs

ST%

OBC

OBC%

1442

308

21.36

92

6.38

174

12.07

Your Company gives utmost importance for the enrichment of employees skills. Accordingly in-house and external training programmes are organized in all disciplines and at all levels. During the financial year 2017-18, 91% employees were imparted essential two mandays training thereby achieving 5920 training mandays have been achieved. The trainings were imparted through organizations of national repute like ASCI, ESCI, IITs, IIMs, IMI, MDI, Tunnelling Association of India. The programs were conducted on topics like Companies Act, 2013 and Corporate Governance, Dams and Underground Structures, Rainfall Runoff Modelling with GIS, Power Trading, Power Exchanges & Merchant Power Plants Design, Construction and risk management in Underground construction, Large Power Transformers - Modern Trends in Application Installation O&M, Service & Repairs of Industrial Tools, Effective Noting & Drafting, Health & Stress Management, Leadership Development Programs, 5S & Kaizen and Gender Sensitivity etc. to mention a few.

13. INDUSTRIAL RELATIONS

Regular Meetings are held with the representatives of the various Associations/ Unions to sort out the local issues as well as policy related matters. Recreational, Cultural and Sports functions on different occasions were also held, thus, resulting in better employee-employer relations and cordial industrial relations were maintained during the year.

14. STATUTORY AND OTHER INFORMATIONS

The information required to be furnished as per the Companies Act 2013, SEBI (Listing Obligations and Disclosure Requirements) Rules, 2015, Government Guidelines, and Code of Corporate Governance of your Company, on the following matters is placed at respective annexures and form integral part of Directors Report:-

a. Management Discussion and Analysis - Annexure - I

b. Report on Corporate Governance - Annexure - II

c. Certificate from Practicing Company Secretary on Corporate Governance Compliances - Annexure - III

d. Information on Conservation of Energy, Technology Absorption and Foreign Exchange earnings and out go - Annexure - IV

e. Annual Report on Corporate Social Responsibility & Sustainability -Annexure - V

f. Business Responsibility Report - Annexure - VI

g. MGT-9 - Extract of Annual Return - Annexure - VII

h. Secretarial Audit Report - Annexure - VIII

i. Management’s Replies to the observations of Secretarial Auditor -Annexure -IX.

15. DIRECTORS’RESPONSIBILITY STATEMENT

The Directors’ state that :

- in the preparation of the annual accounts for the year ended March 31, 2018, the applicable Accounting Standards read with requirements set out under Schedule III to the Act, have been followed along with proper explanation relating to material departures, if any;

- the Directors have selected such accounting policies and applied them consistently except as disclosed in the Notes on Accounts and made judgment and estimates that are reasonable and prudent so as to give a true and fair view of the state of affairs of the Company as at March 31, 2018 and of the profit of the Company for the year ended on that date;

- the Directors have taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities;

- the Directors have prepared the annual accounts on a ‘going concern’basis;

- the Directors have laid down internal financial controls to be followed by the company and that such internal financial controls are adequate and are operating effectively; and

- the Directors have devised proper systems to ensure compliance with the provisions of all applicable laws and that such systems are adequate and operating effectively.

16. DECLARATION OF INDEPENDENCE

Your Company has received declarations from all the Independent Directors confirming that they meet the criteria of independence as provided under Section 149(6) of the Companies Act, 2013 and Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015.

17. SEXUAL HARASSMENT PREVENTION

SJVN has implemented the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013 in its entirety.

Internal Complaints’ Committees as per the provisions of the act have been constituted at Corporate Office and Projects sites of SJVN.

Summary of Sexual harassment issues raised, attended and dispensed during the year 2017-18:-

No. of complaints received in 2017-18

Nil

No. of complaints disposed off

Nil

No. of cases pending for more than 90 days

Nil

No. of workshops or awareness programme against sexual harassment carried out

02

Nature of action taken by the employer or District Officer

Nil

18. SECRETARIAL AUDIT

The Board appointed M/s Agarwal S. & Associates, PCS to conduct Secretarial Audit for the Financial Year 2017-18. The Secretarial Audit Report for FY ended March 31, 2018. The Report of the Secretarial Auditors for the year ended 31.03.2018 is placed at Annexure-VIII. Reply of Management to observations of Secretarial Auditor are placed at Annexure-IX.

The company has complied with the applicable Secretarial Standards as issued by The Institute of Company Secretaries of India.

19. STATUTORY AUDIT

M/s APRA & Co., Chartered Accountants, Solan, were appointed by Comptroller & Auditor General as Statutory Auditors of the Company for the financial year 2017-18.

The Report of the Statutory Auditors to the Members on the Standalone and Consolidated Accounts for the year ended 31.03.2018 is placed at Annexure-X and Annexure-XII respectively. Reply of Management to observations of Statutory Auditor on Internal Financial Control on the Standalone and Consolidated Accounts are placed at Annexure-XI and Annexure-XIII respectively. Observations/ Comments of the Comptroller and Auditor General (C&AG) of India on the Standalone and Consolidated Accounts for the year ended 31.03.2018 are placed at Annexure-XIV and Annexure-XV respectively. Comments of C&AG being “NIL”, the reply by the Management thereto is not applicable.

20. COST AUDIT

Pursuant to the Central Government directions to audit Cost Accounting Records as maintained by the Company, your Company appointed M/s Chandra Wadhwa & Co, Cost Accountants, as Cost Auditor for the year 2017-18. The Cost Audit Report for the year ended 31st March 2017 was filed with MCA on 28.09.2017.

21. INTERNAL FINANCIAL CONTROLS

The Company has adequate control systems and the transactions / processes are guided by delegation of powers, documented policies, guidelines and manuals in compliance with relevant laws and regulations. The organizational structure is well defined in terms of the structured authority / responsibility involved at each particular hierarchy / level.

22. CONSOLIDATED FINANCIAL STATEMENTS

In accordance with the Indian Accounting Standard (Ind AS)-110 on Consolidated Financial Statements read with Ind AS-111 on Joint Agreements and Ind AS-112 on Disclosure of Interest in other entities, the Audited Consolidated Financial Statements are provided in the Annual Report. Directors Report / Financial Statements in respect of following Subsidiary Companies are also included in this Annual Report:-

a) SJVN Thermal Private Limited

b) SJVN Arun-3 Power Development Company, Nepal

23. BOARD OF DIRECTORS

During the FY 2017-18 and FY 2018-19 (upto date of this report), the following changes took place in the composition of the Board of Directors of the Company:-

a. Shri Ramesh Narain Misra, ceased to be the Chairman & Managing Director of the Company on 30th November 2017 on reaching age of superannuation. Pursuant to the orders of Ministry of Power, Shri Nand Lal Sharma was appointed as Chairman & Managing Director with effect from 1st December 2017.

b. Shri Tarun Shridhar, ACS (MPP & Power), GoHP, ceased as Part-Time Official Director (GoHP Nominee) on withdrawal of Nomination by appointing authority w.e.f. 31st December 2017.

c. Shri Ram Dass Dhiman, Principal Secretary (MPP & Power), GoHP, was appointed as Part-Time Director (GoHP Nominee) w.e.f. 25th January 2018. He has ceased as Part-Time Official Director (GoHP Nominee) on withdrawal of Nomination by appointing authority w.e.f. 12th May 2018.

d. Shri Tarun Kapoor, ACS (MPP & Power), was appointed as Part-Time Official Director (GoHP Nominee) w.e.f. 21st June 2018.

e. Shri Aniruddha Kumar, Joint Secretary (Hydro), Ministry of Power has been appointed as Part-Time Official Director (GoI Nominee) in place of Smt. Archana Agrawal w.e.f. 30th July 2018.

The Board welcomes the appointments and wishes to place on record its highest appreciation for the valuable contributions made by the outgoing Directors during their association with SJVN.

None of the Directors are inter se related to each other.

The Board Meetings held during the Financial Year 2017-18 and the attendance of the Directors therein is mentioned in the Corporate Governance Report.

24. BOARD LEVEL COMMITTEES

The composition of the Statutory Committees required to be constituted as per the Companies Act 2013 and the SEBI Listing Regulations and the meetings held therein are mentioned in the Corporate Governance Report.

25. KEY MANAGERIAL PERSONNEL

In compliance with Section 203 of the Companies Act, 2013, following have been designated as Key Managerial Personnel:-

1. Shri Nand Lal Sharma, Chairman & Managing Director

2. Shri Amarjit Singh Bindra, Chief Financial Officer

3. Shri Soumendra Das, Company Secretary

26. IMPLEMENTATION OF OFFICIAL LANGUAGE

In order to ensure the implementation of the Official Language Policy of the Govt. of India, all possible efforts have been made by the company to achieve the targets as specified by the Department of Official Language. Company has received awards in recognition for these efforts. Under section 3.3(i) of Official Language Act cent percent documents were issued bilingually & all the letters received in Hindi were replied to in Hindi. Company’s website is already in bilingual form and it is updated from time to time.

To encourage executives and non-executives to do their entire work in Hindi, number of incentive schemes are under implementation namely 1) Payment of increment amount scheme i.e. equivalent to increment of three months during the year, for doing his/her whole office work in Hindi. Under these schemes 172 executives/non-executives received prizes amounting to Rs.2,70,000/-. Other implemented schemes are as under: 1) Under the “Rajbhasha Samman” Scheme each Rs.25,000/- are paid to the concerned employee doing his/her best work in Hindi in different Projects including Corporate Office and “Rajbhasha Uttkrishthta Samman” of Rs.30,000/- to the employee doing his/her best work in Hindi at Corporate Level, 2) Honorarium for writing technical papers in Hindi, 3) Cash prize on passing Hindi typing examination and 4) Cash prize for Best write-up published in in-house Hindi journal “Himshakti”.

Imparting training to the executives and non-executives to do their day-to-day work in Hindi by organizing Hindi workshops/seminars is a continuous process in the company. Seven Hindi workshops/seminars have been organized and 157 no. of executives and non-executives have been trained. Organizing of Hindi quiz competitions on national/ important occasions and other competition (i.e. Shudh Hindi Shabd Lekhan, Nara Lekhan, Shabdarthgyan, Vichar Abhivyakti, Essay writing competition) is a regular feature and besides this number of competitions were also organized during “Hindi fortnight”. In these competitions 237 no. of employees were awarded cash prizes amounting to Rs.2,67,500/-. To popularize Hindi amongst the students of Schools/Colleges/ Institutions/Universities situated in the vicinity of projects as well as Corporate Office, Shimla various Hindi competitions were organized during the year under review and 312 no. students were awarded cash prizes amounting to Rs.3,31,500/-.

Half-yearly meetings of the Town Official Language Implementation Committee, Shimla (Office-2) constituted for the CPSUs & Banks etc. were held on 21.12.2017 under the Chairmanship of CMD, SJVN Ltd., Shimla

The Officials from Ministry of Power, Govt. of India inspected the progress of use of Hindi at Expediting Office, New Delhi, Corporate Office, Shimla, Nathpa Jhakri Power Station, Jhakri & Rampur Hydro Power Station, Bayal during the year under review and expressed its satisfaction about the progress made in this regard.

To give impetus to the multi-facet talent of employees, an in-house biannual Hindi magazine “Himshakti” was published and circulated. Out of total expenditure on purchase of books, 75.65% of amount was spent on purchase of Hindi books.

27. AWARDS & ACHIEVEMENTS

During the Financial year 2017-18, your Company & Directors received commendation for work in form of various Awards and Accolades as under:-

i. SJVN was awarded with ‘Achievement Award 2018’and ‘Partners in Progress Trophy’for Social Development & Impact during 10th CIDC Viswakarma Award 2018. The award was presented by Construction Industry Development Council.

ii. SJVN was conferred with Global CSR Excellence & Leadership Award in the category of Concern for Health by World CSR Congress, Mumbai.

iii. SJVN was felicitated with ‘Eminent Award’for Best Corporate Social Responsibility practices in health sector by the EK Nam Desh Ke Nam, New Delhi.

iv. SJVN was honoured with ‘Silver Plate Award’by HelpAge India, New Delhi for its outstanding contribution in the field of healthcare as one of its many CSR initiatives.

v. SJVN was awarded with Winner Trophy for ‘Best Hydro Power Generator’by Independent Power Producers Association of India (IPPAI). The prestigious award was conferred to SJVN for its outstanding performance in the area of Operation & Maintenance of Hydro Power Stations.

28. PARTICULARS OF LOANS GIVEN, INVESTMENTS MADE GUARANTEES GIVEN AND SECURITIES PROVIDED

Particulars of loans given, investments made, guarantees given and securities provided along with the purpose for which the loan or guarantee or security is proposed to be utilized by the recipient are as under:-

Particulars

Details

Loans given

Refer Note 2.7 and 2.17 to standalone financial statements

Investments made

Refer Note 2.5 to standalone financial statements

Guarantees given

Nil

Securities provided

Nil

29. GENERAL

Your Directors state that no disclosure or reporting is required in respect of the following items as there were no transactions on these items during the year under review:

1. The Company has not accepted any deposits during the year under review.

2. Issue of equity shares with differential rights as to dividend, voting or otherwise.

3. Neither the Managing Director nor the Whole-time Directors of the Company receive any remuneration or commission from any of its subsidiaries.

4. No significant or material orders were passed by the Regulators or Courts or Tribunals which impact the going concern status and Company’s operations in future.

5. There have been no Material Changes and Commitments subsequent to the Balance sheet.

6. There are no Companies that have become or ceased as subsidiaries, joint ventures or associate Companies during the Year.

30. ACKNOWLEDGEMENT

The Board of Directors acknowledge with deep appreciation, the cooperation and guidance extended by various Ministries/Departments of the Government of India, particularly, Ministry of Power, Ministry of Finance, Ministry of External Affairs, Ministry of Environment & Forest, Central Electricity Authority, Central Water Commission, Geological Survey of India, the Government of Nepal, the Government of Bhutan, the Government of Himachal Pradesh, particularly, the Departments of Power, Finance and Forests, the Pollution Control Board, State Governments of Bihar, Uttarakhand, Arunachal Pradesh, Gujarat and Maharashtra, the State Electricity Boards and the World Bank.

Your Directors also convey their gratitude to the shareholders, various international and Indian banks and financial institutions for the confidence reposed by them in the Company. The Board also acknowledges and appreciates the contribution made by Contractors, Vendors, Consultants and others for achieving the planned goals of the Company.

The Board also places on record its deep appreciation of valued cooperation extended by the Office of the Comptroller and Auditor General of India and the Auditors. Last but not least, the Board commends the hard work and dedicated efforts put in by the employees of the Corporation including the employees on deputation at all levels.

For and on behalf of Board of Directors

(Nand Lal Sharma)

Date: 3rd August, 2018 Chairman and Managing Director

Place: New Delhi DIN: 03495554


Mar 31, 2017

Your Directors are pleased to present the Twenty Ninth Annual Report of the Company for the year ended March 31,2017 along with the Audited Statement of Accounts, Report of Auditors and Comments of the Comptroller and Auditor General of India.

The following financial highlights for the year ending 31st March, 2017 briefly encapsulate the performance of your company:-

1. FINANCIALHIGHLIGHTS

( Rs. in crore)

PARTICULARS

STANDALONE

CONSOLIDATED

2016-17

2015-16

2016-17

2015-16

REVENUE

Revenue from Operations

2468.66

2493.96

2468.66

2493.96

Other Income

651.24

409.86

651.31

410.01

Total Revenue

3119.90

2903.82

3119.97

2903.97

EXPENSES

Employees'' Benefits Expense

253.39

215.38

253.56

215.53

Finance Cost

45.70

208.96

45.70

208.96

Depreciation and Amortization Expenses

679.98

677.16

679.98

677.16

Other Expenses

235.68

225.72

235.96

225.98

Total Expenses

1214.75

1327.22

1215.20

1327.63

Profit before non-controlling interests/Share in Net-profit of Joint Venture/ Associate and net movement in Regulatory Deferral Account Balance and Tax

1905.15

1576.60

1904.77

1576.34

Share in Profit of Joint Venture / Associate

0

0

4.59

4.67

Profit before Net Movement

in Regulatory Deferral Account Balance and Tax

1905.15

1576.60

1909.36

1581.01

Net Movement in Regulatory Deferral Account Balance

(31.22)

127.61

(31.22)

127.61

Profit Before Tax

1873.93

1704.21

1878.14

1708.62

Tax Expenses: - Current Tax

399.94

364.13

401.11

365.09

- Deferred Tax

(70.15)

(67.26)

(70.15)

(67.26)

Profit for the year

1544.14

1407.34

1547.18

1410.79

Other Comprehensive Income (Net of Tax)

(3.96)

(0.87)

(3.96)

(0.87)

Total Comprehensive Income

1540.18

1406.47

1543.22

1409.92

2. GENERATION

Gross Energy Generation from various operational plants of the Company during FY 2016-17 is as under:-

(Million Units (MU))

Plant

2016-17

2015-16

NJHPS

7050.622

7313.78

RHPS

1960.367

1983.40

KWPS

33.939

48.95

Total

9044.928

9346.13

The Net Annual Plant Availability Factor (NAPAF) of company''s Hydro PowerStation as under:-

Plant

2016-17

2015-16

NJHPS

104.963%

104.679%

RHPS

102.317%

99.592%

3. REVENUEANDPROFITS

The standalone revenue from operation decreased by Rs. 25.3 Crore to Rs. 2468.66 Crore during the financial year 2016-17 compared to Rs. 2493.96 Crore during the previous year. The standalone Profit After Tax (PAT) increased by Rs. 136.80 Crore to Rs. 1544.14 Crore against Rs. 1407.34 Crore for the previous year.

The subsidiary and Joint Venture companies are under Survey & Investigation/Construction except CPTC which is in operation. Consolidated accounts with the subsidiary & joint venture companies has resulted in increase in profit of consolidated group by Rs. 3.04 Crore (PY Rs. 3.45 Crore) as compared to SJVN Limited mainly due to proportionate share of profit of Rs. 3.42 Crore (PY Rs. 3.72 Crore) from CPTC.

4. TRANSFERTORESERVES

During the year, no amount was transferred to Reserves of the Company.

5. DIVIDEND

During the year an interim dividend of Rs. 2.25 per share has been paid in the month of February 2017. In addition, your Board has recommended a final dividend of Rs. 0.50 per share. Thus, subject to your approval, a total dividend of Rs. 2.75 per share (Rs. 1137.57 Crore) is proposed to be paid for FY 2016-17 against Rs. 1.10 per share (Rs. 455.03 Crore) paid during the previous year.

6. PROJECTS UNDERSURVEYAND INVESTIGATION

6.1 HIMACHALPRADESHPROJECTS:

a) LUHRI HEP (Stage 1: 210 MW, Stage II: 143 MWand Stage III: 355 MW):

Luhri Hydro Electric Project is located on river Satluj in Shimla/Kullu/Mandi districts of Himachal Pradesh.

Govt. of H.P. during March, 2015 advised SJVN to review/explore the possibility of executing the LHEP as multistage project instead of single stage on account of social and environmental/ ecological concerns. Accordingly, three stages with Dam to Power House are being explored to harness the Hydel potential of Satlujriver between Rampur and Kol Dam Hydro Electric Projects.

LHEP Stage-I: LHEP stage-I is a run of river type development proposed on Satlujriver near Nirath Village, in Shimla and Kullu districts of Himachal Pradesh.

DPR (210 MW) submitted to CEA in December 2016 has been accepted by CEA for examination. DPR is under examination in CEA. EIA/EMP studies is under progress. CAT plan is under approval of State Forest Deptt.

Online application for diversion of forest land was submitted to State Forest Department in June 2016. After joint inspection of forest land of Distt. Shimla & Kullu, receipt of reports the application has been submitted to respective DC''s for issuance of certificate.

LHEPStage-II (143 MW): Finalization of project site is under process. Inception report has been accepted by CEA.

Sunni Dam Project (Earlier named as LHEP Stage-III) (355 MW): GoHP vide letter dated 23.01.2017 reallocated Sunni Dam Project to SJVN. Sunni Dam Project is a run of river type development and a part on multistage development of Luhri HEP. The Project is situated on SatlujRiver near Khaira village in Shimla and Mandi districts of Himachal Pradesh. 7 pre DPR chapters submitted to CEA are under examination. MOEF & CC has issued TOR for EIA&EMP studies.

b) DHAULASIDH HEP (66 MW):

The Dhaulasidh Hydro-electric Project with proposed installed capacity of 66 MW is located on River Beas, in Hamirpur and Kangra Districts of Himachal Pradesh. The Project is designed as run of river project with a small live storage that would be utilized for peaking power during the lean season. The Project holds potential of generating 247.25 Million Units of electric energy. The estimated cost of Project is Rs. 1256.28 Crore at September, 2016 Price level.

TEC of the Project was accorded by Govt of Himachal Pradesh in June 2011. The Environment Clearance & Stage-1 Forest Clearance accorded by MoEF, Govt. of India was valid upto

05.03.2017 and MoEF has been requested for extension by 2 years beyond 05.03.2017

Issue of land acquisition is also under discussion/ settlement with GoHP. Application for fresh SIA studies has been submitted to GoHP.

6.2 UTTARAKHANDPROJECTS

a) DEVSARI HEP (252 MW)

A Run of River (RoR) scheme with proposed installed capacity of 252 MW is located on River Pinder, a major tributary of river Alaknanda in Chamoli District of Uttarakhand State. The project will generate 936.9 MU of energy. The scheme was cleared by Govt. of Uttarakhand in October, 2007 and by Standing Technical Committee in April, 2012. DPR of the project was concurred by CEA in August, 2012. The estimated cost of the Project is Rs. 2271.71 Crore at February, 2017 price level.

The project was recommended for Environment Clearance by the Expert Advisory Committee (EAC) of MoEF during December, 2011 subject to Stage-I Forest Clearance. Forest Advisory Committee (FAC) considered the project in the meeting held on 28.02.2017 wherein FAC recommended the diversion of forest land subject to certain conditions which are being complied with.

Payment for acquisition of private land, released to State Government on 31.03.2017.

b) NAITWAR MORI HEP (60 MW)

The Naitwar Mori HEP having proposed installed capacity of 60 MW is located on River Tons, a major tributary of River Yamuna in Uttarkashi District of Uttarakhand. The project is designed as run of river project and has the potential to generate 265.5 MU of energy in a 90% dependable year. The estimated cost of the Project is Rs. 648.33 Crore at October,

2016 price level.

The DPR of the project was approved by Govt of Uttarakhand in March, 2010. Stage - 2 Forest Clearance has been accorded in August 2016 and tree felling has already been completed. Environment Clearance has been accorded by MoEF, GoI in June 2016. The CAT Plan of the project has been approved by Government of Uttarakhand (GoUK). Possession of private land has been taken and mutation of land has also been done. Award of Main Civil Works is under tendering process. Investment sanction forthe Project is under process.

c) JAKHOLSANKRI HEP(44MW)

The Jakhol Sankri HEP with proposed installed capacity of 44 MW is located on River Supin, a tributary of River Tons in Uttarkashi District of Uttarakhand. The project is designed as run of river project and has the potential to generate 166.19 MU of energy. The estimated cost of the Project is Rs. 513.51 Crore at February, 2017 price level.

DPR of 44 MW considering revised e-flows has been prepared and along with addendum forwarded to Principal Secretary, GoUK in August 2016, which is under examination. Work for carrying out EIA/EMP studies awarded to M/s WAPCOS in November 2016 is under progress.

NBWL provided NOC in August 2016. Online application for diversion of Forest Land has already been submitted to MoEF &CC and under examination with MoEF&CC.

6.3 ARUNACHAL PRADESH PROJECTS

a) DOIMUKH HEP (52 MW)

The Doimukh HEP is located on River Dikrang in Papum Pare District of Arunachal Pradesh. MOA between SJVN and Govt. of Arunachal Pradesh was signed on 12.08.2014. Considering revised e-flows, installed capacity of the project revised from 80 MW to 52 MW. The project cost is Rs. 1508.35 Crore, at October 2016 price level.

DPR as submitted to Government of Arunachal Pradesh is under examination.

6.4 NEPALPROJECT

a) ARUN-3 HEP (900 MW):

SJVN Arun-3 Power Development Company Pvt. Ltd (SAPDC) was established & registered on 25.04.2013 under the Nepalese Companies Act 2063 with an aim to implement Arun-3 Hydro-electric Project. The Registered office of the SAPDC is located at Kathmandu, Nepal.

The project is a run-of-river scheme located on Arun River in Sankhuwasabha District of Nepal, which is 657 Kms from Kathmandu via Biratnagar.

Project Development Agreement (PDA) was signed with Government of Nepal (GoN) on 25.11.2014. EIA report of the project was approved by GoN in August 2015.

Private land required for the project has been registered in the name of SAPDC. Proposal for lease of forest land (124.69 ha.) is under process with Govt. of Nepal.

Department of Roads, GoN has been entrusted the works for construction of access roads & bridges. About 50% Trace cutting of access roads completed and further work is in progress.

Government of India has accorded investment approval for project at an estimated cost of Rs. 5723.72 Crore at May, 2015 Price Level.

Construction of Offices and residential accommodations at Tumlingtar and Phaksinda (Near Dam site) are in progress. Main Civil Works in two packages are in the process of tendering and award.

Power Evacuation System: R&R study report is under preparation. Updated DPR of 400KV transmission line has been submitted to CEA in May 2017 and is under appraisal. Completion period of the project shall be 60 months from date of Financial Closure, which is planned for September, 2017.

6.5 PROJECTS IN BHUTAN

a) KHOLONGCHHU HEP (600 MW):

Kholongchhu HEP with the proposed installed capacity of 600MW on the river Kholongchu in Bhutan will annually generate 2568.88 MU of energy. The project is being implemented jointly by SJVN and Druk Green Power Corporation (DGPC) Bhutan.

Inter-Governmental Agreement between Royal Government of Bhutan (RGoB) and Government of India (GoI) for implementation of four hydropower projects including Kholongchhu through Indian PSU and DGPC was signed on 22.04.2014 in Thimpu. The foundation stone for Kholongchhu Project was laid by Hon''ble Prime Minister of India on 16.06.2014. Environment clearance was accorded by National Environment Commission (NEC) of RGoBon 21.07.2014.

Joint Venture Company was registered as "Kholongchhu Hydro Energy Ltd" (JV of SJVN & DGPC) in Bhutan on 12th June, 2015. Concession Agreement is under approval of RGoB. Overall 94% work of Project roads has been completed and construction of two bridges is under progress. Award of Main civil works in three packages is under tendering process.

6.6 THERMAL PROJECT

a) BUXARTHERMALPROJECT(1320MW)

SJVN had signed an MOU for setting up a Green Field 1320 MW (2x660 MW) Supercritical Technology Thermal Power Project at village Chausa in District Buxar of Bihar in January, 2013 for which Power Purchase Agreement (PPA) had been signed with Bihar State Power Holding Company Limited (BSPHCL) for 85% share of power generation on bus bar rate. SJVN acquired the Project Executing Company i.e. Buxar Bijlee Company Private Limited on 04.07.2013. The name of Buxar Bijlee Company Private Limited was changed to SJVN Thermal Private Limited on 17.10.2013, a wholly owned subsidiary company of SJVN Limited.

Investment approval for carrying out Pre-construction activities of project for Rs. 436.68 Crore was accorded by GoI on 26.05.2015.

Work of updating of DPR along with carrying out Site specific studies was awarded to M/s NTPC on 13.01.2014 and accordingly DPR has been updated in August 2016.

The land compensation (96.4%) to land owners has been disbursed and possession of land is nearly complete.

Erection of Boundary Pillars and barbed wire fencing has been completed. Consultancy services for Preparation of DPR for setting up of Rail Infrastructure were awarded to M/s RITES Ltd. in March 2016. DPR has been submitted to Railway Authority for approval in April 2017. Preparation of documents for land acquisition for rail infrastructure is under process.

MoU had been signed with MMTC Ltd. on 24.02.2016 for supply of imported coal. Environment Clearance was accorded by MoEF on 28.02.2017. Work of erection, testing & commissioning of 33kV line is in progress and 174 poles have been erected.

Tendering process for development/ leveling of project land is under process.

Application for allocation of new Coal block for BTPP has been submitted to Ministry of Coal which is under scrutiny in Ministry of Coal.

6.7 SOLARPROJECTS

SJVN Limited has given a commitment to Government for development of 1000 MW Solar PV Power project(s) during a period of 5 Yrs. i.e. Yr. 2015-2019 in RE-INVEST Summit held on 15-17th February, 2015 in New Delhi.

a) CHARANKASOLARPOWERPROJECT:

SJVN''s 5 MW Charanka Solar Power Project has been commissioned on 31.03.2017. The project is located at Charanka Solar Park in Gujarat in an area of about 25.95 acres. The project has been conceived under REC Mechanism and the PPA for brown power has been signed with GUVNL on 03.03.2017.

b) MOUWITHSECIFOR500MWGRIDCONNECTEDPROJECT:

SJVN has signed an MOU with Solar Energy Corporation of India (SECI) on 19.06.2015 in New Delhi to set up 500 MWgrid connected solar power projects. SECI shall facilitate for the development of Solar PV Power Project and will arrange land, PPA and Project Management Consultancy.

6.8 WIND POWER PROJECTS

SJVN has set up its first Wind Power Project of 47.6 MW capacity at Khirvire / Kombhalne villages of Ahmednagar district of state of Maharashtra. The Project comprises 56 Wind Energy Generators (WEGs) each of capacity 0.85 MW. The project started generation w.e.f. 20th January 2014, with the commissioning of 1st lot of 25 WEGs and attained full generation capacity by commissioning the last 56th WEG on 20 May 2014. Thereafter, Company is setting up its second Wind Power Project of 50 MW capacity comprising 25 WEGs each of capacity 2 MW at Sadla, Distt. Surendernagar, in Gujarat. The EPC Contract of the Project with its comprehensive O&M has been awarded to M/s Inox Wind Limited. The construction work is in progress. Project is scheduled to be commissioned by September 2017.

6.9 TRANSMISSION PROJECTS

Cross-Border Inter State Transmission 400 kV, D/C Link for trade of Power between Nepal & India has been developed by two Joint Venture Companies namely CPTC and PTCN. CPTC has executed the Indian portion (87 km) of the said link between Muzaffarpur & Sursand wherein SJVN has 26% equity share along with IL&FS Energy Development Company Ltd. (38%), POWERGRID (26%) and Nepal Electricity Authority (NEA) (10%). The other portion of the link on the Nepal side (39 Km) between Sursand & Dhalkebar has been executed by PTCN registered in Nepal having partners IL&FS Energy Development Company Ltd. (26%), POWERGRID (26%) and Nepal Electricity Authority (NEA) (48%).

The Power Transmission line was declared under commercial operation from 00:00 Hrs of 19.02.2016 and was dedicated to the Nation jointly by the Prime Ministers of India and Nepal on 20.02.2016. Presently, around 140 MW of power is flowing from India to Nepal through the 220/132 kV, 2X100 MVA transformer installed as a contingent arrangement. The completed/Audited cost of Project (CPTC) is Rs. 242.54 Crore.

7. ENVIRONMENT

Your Company is sensitive towards protection of environment policy through sustainable use of natural resources.

In response to your commitment and concern towards green planet and sustainable development, your company had adopted an Environment Policy in 2006.

Owing to the ever evolving environmental scenario and diversification of the organization, your company has revised the Environment Policy in September, 2016, with the intent to mainstream environmental concerns in all its activities. Accordingly, due diligence is given by SJVN to execute all its projects in an environment friendly manner. Projects in SJVN are being regularly reviewed and monitored against stipulated environmental parameters through internal and external monitoring mechanisms. It is ensured that the projects are in compliance to all conditions stipulated by Ministry of Environment and Forests & Climate Change (MoEF&CC), Government of India while granting Environment and Forest Clearances.

Your Company''s Corporate Objectives also promote conservation and protection of environment as ''Striving clean and green project environment with minimal ecological and social disturbances''. Towards this end, your company has formulated project specific Environment Management Plans (EMPs) to minimize or offset any adverse impact on the environment during project construction or operation phase for sustenance of resources over a long-term.

Your Company has successfully undertaken various measures for Environment Management at Nathpa Jhakri and Rampur Hydro Power Stations including Catchment Area Treatment (CAT) Plan, Compensatory A forestation, Soil Stabilization, Avenue Plantation & Landscaping, Restoration of Muck Dumping Sites & Quarry Areas and Sustenance and Enhancement of Fisheries etc.

The Restoration work of Muck Dumping Sites in Rampur HPS was largely done using state of the art Geo-Green Erosion Control Blanket technique which was designed and evolved to provide an integrated solution for slope stabilization. The success achieved here has prompted your company to work towards improving this technique further and replicating the technique in other projects.

True to its commitment for self-regulation and environment protection, your company has also established an Environment Laboratory at Jhakri on the guidelines laid down by the Ministry of Environment, Forest & Climate Change, Government of India. The laboratory is the first of its kind in the area and has facility for conducting Water and Wastewater analysis, Microbiological testing, Ambient Air Quality monitoring, Noise monitoring, Meteorological monitoring, Soil /Sludge/ Sediment, Solid Waste Testing and Metal analysis.

8. CSR AND SUSTAINABILITY

An annual report of Corporate Social Responsibility, highlighting the Company''s CSR Policy, details of expenditure on CSR and overview of projects/ programs/ activities undertaken by the Company during FY 2016-17 in format prescribed under Companies (CSR Policy) Rules 2014 is annexed as Annexure-V and forms an integral part of this Directors'' Report.

9. REHABILITATIONANDRESETTLEMENT

SJVN is committed for the upliftment of the host population affected due to construction of its projects and is making continuous efforts to improve the socio-economic condition of the Project Affected Families (PAFs). So as to fulfill its social responsibilities, SJVN is implementing its R&R Policy and undertaking activities for the sustainable development of areas in and around the projects.

SJVN identifies R&R activities on the basis of the requirements of the affected community with a motive to increase the standard of living. A Socio Economic Survey is carried out by an expert agency by consulting various stakeholders like PAFs and local administration to formulate the baseline data about the socio-economic status of the community. After this, Rehabilitation and Resettlement Plan (R&R Plan) is formulated on the basis of the baseline data and in consultation with the state government.

After implementation of R&R Plan, a Social Impact Evaluation (SIE) is carried out by an expert third agency to assess the success of the plan on various parameters like education, health, housing, income, etc. The R&R Plans have been successfully implemented in 1500MW Nathpa Jhakri Hydro Power Station (NJHPS) and 412 MW Rampur Hydro Power Station (RHPS). Several benefits under R&R Plan, like providing alternate agricultural land, constructed houses in rehabilitation colonies or house construction grant to houseless PAFs, employment to eligible landless PAFs or monetary compensation in lieu of employment have been provided to Project Affected Persons (PAPs). In addition to these benefits to PAPs, other community development initiatives like construction of village paths, roads, panchayat bhawans, school infrastructure, playgrounds, drinking water facilities, facilities for health & hygiene, etc., have been undertaken. Under the Crop Compensation Policy of the State Government, adequate compensation to farmers in affected areas of RHPS has been disbursed. Rs. 55.26 Croreshave been provided under Local Area Development Fund (LADF) for carrying out various infrastructural development works around Rampur Hydro Power Station.

ASocial Impact Evaluation of R&R plan implementation in NJHPS and RHPS was carried out by Agriculture Economic Research Centre (AERC). The report revealed that R&R activities have notably increased the socio-economic standard of the host population on various developmental parameters in both the projects.

R&R Plan for execution of Naitwar Mori Hydro Electric Project (NMHEP) in Uttarakhand has been formulated covering various R&R obligations and community development initiatives in the fields of Education, Infrastructure, Drinking water facilities, Health & Hygiene, etc. An amount of Rs. 14.16 Crore has been approved for R&R plan of NMHEP. Various R&R benefits being provided are Rehabilitation Grant to landless PAFs, Monetary assistance to displaced artisans, small traders and self-employed persons to start their own business, monthly subsistence to displaced PAFs, lifelong pension to vulnerable groups, etc.

10. RESEARCHANDDEVELOPMENT

SJVN has laid special attention on Research and Development for Process Improvement, Product Development etc. in its area of operation.

SJVN has undertaken following activities during FY 2016-17 under R&D and innovative work category.

a) Initial study of slide material of intake structure at NMHEP for use as aggregate.

b) Preparation of quality control and Material Testing manual for Infra Works of SJVN.

c) Preliminary mix designs for different grade of concrete for LHEP using the material from identified sources.

d) Hard coating of runner at site. (One unit of NJHPS)

e) Indigenization of guide vanes supply for NJHPS.

All the R&D activates have been successfully completed under the guidance of eminent professionals from various Engineering fields and in collaboration with renowned Research Institutes.

11. HUMAN RESOURCES

The total manpower on the rolls of SJVN (Direct Recruits and Absorbed employees) was 1492 as on 31.03.2017. The strength of HPSEB / HP Govt. employees on deputation on the above date was 194.

Representation of Women Employees is as under:-

Total Employees as on 31.03.2017

Number of Women employees

Percentage of overall staff strength

1492

154

10.32%

Representation of Physically Challenged Employees is as under:-

Total Employees as on 31.03.2017

Physically Challenged

Employees

Percentage of Physically challenged employees

VH

HH

OH

Total

1492

16

06

06

28

1.88%

Representation of SC/ST/OBC Employees is as under:-

Total Employees

Representation

(as on 31.03.2017)

SCs

SC%

STs

ST%

OBC

OBC%

1492

315

21.11

97

6.50

175

11.73

Your Company gives utmost importance for the enrichment of skills & in-house and external training programmes are organized in all disciplines and at all levels. During the financial year 2016-17, 92% employees were imparted essential two mandays training thereby achieving 6529 man days through organizations /institutes of national repute like ASCI, ESCI, IIMs, IITs, MDI, IMI, Tunnelling Association of India. The programs were conducted on topics like Companies Act, 2013 and Corporate Governance, Dams and Underground Structures, Rainfall Runoff Modeling with GIS, Power Trading, Merchant Power Plants, Design, Construction and risk management in Underground construction, Large Power Transformers - Modern Trends in Application Installation O&M, Service & Repairs of Industrial Tools, Effective Noting & Drafting, Health & Stress Management, Leadership Development Programs, 5S&GenderSensitivityetc.

12. INDUSTRIALRELATIONS

Regular Meetings are held with the representatives of the various Associations/ Unions to sort out the local issues as well as policy related matters. Recreational, Cultural and Sports functions on different occasions were also held, thus, resulting in better employee-employer relations and cordial industrial relations were maintained during the year.

13. STATUTORYANDOTHER INFORMATIONS

The information required to be furnished as per the Companies Act

2013, Listing Agreements, Government Guidelines, and Code of Corporate Governance of your Company, on the following matters is placed at respective annexure and form integral part of Directors Report:-

a. Management Discussion and Analysis-Annexure- I

b. Report on Corporate Governance-Annexure-II

c. Certificate from Practicing Corporate Governance Compliance Certificate- Annexure-III

d. Information on Conservation of Energy, Technology Absorption and Foreign Exchange earnings and outgo- Annexure-IV

e. Annual Report on Corporate Social Responsibility & Sustainability

- Annexure-V

f. Business Responsibility Report- Annexure-VI

g. MGT-9- Extract of Annual Return-Annexure-VII

h. Secretarial Audit Report-Annexure-VIII

i. Management''s Replies to the observations of Secretarial Auditor -Annexure -IX.

14. DIRECTORS'' RESPONSIBILITYSTATEMENT The Directors'' state that:

- in the preparation of the annual accounts for the year ended March 31, 2017, the applicable Accounting Standards read with requirements set out under Schedule III to the Act, have been followed along with proper explanation relating to material departures, if any;

- the Directors have selected such accounting policies and applied them consistently except as disclosed in the Notes on Accounts and made judgment and estimates that are reasonable and prudent so as to give a true and fair view of the state of affairs of the Company as at March 31, 2017 and of the profit of the Company for the year ended on that date;

- the Directors have taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities;

- the Directors have prepared the annual accounts on a ''going concern'' basis;

- the Directors have laid down internal financial controls to be followed by the company and that such internal financial controls are adequate and are operating effectively; and

- the Directors have devised proper systems to ensure compliance with the provisions of all applicable laws and that such systems are adequate and operating effectively.

15. DECLARATIONOFINDEPENDENCE

Your Company has received declarations from all the Independent Directors confirming that they meet the criteria of independence as provided under Section 149(6) of the Companies Act, 2013, and Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015.

16. SEXUALHARASSMENTPREVENTION

SJVN has implemented the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013 in its entirety.

Internal Complaints'' Committees as per the provisions of the act have been constituted at Corporate Office and Projects sites of SJVN. Summary of Sexual harassment issues raised, attended and dispensed during the year 2016-17:-

No. of complaints received in 2016-17

Nil

No. of complaints disposed off

-Nil-

No. of cases pending for more than 90 days

-Nil-

No. of workshops or awareness programme against sexual harassment carried out

-Nil-

Nature of action taken by the employer or District Officer

-Nil-

17. SECRETARIALAUDIT

The Board appointed M/s Agarwal S. & Associates, Company Secretaries, to conduct Secretarial Audit for the Financial Year 2016-

17. The Report of the Secretarial Auditors for the year ended

31.03.2017 is placed at Annexure-VIII. Reply of Management to observations of Secretarial Auditor are placed at Annexure-IX.

18. STATUTORYAUDIT

M/s Soni Gulati & Co., Chartered Accountants, Shimla, were appointed by Comptroller & Auditor General as Statutory Auditors of the Company for the Financial Year 2016-17.

The Report of the Statutory Auditors to the Members on the Standalone and Consolidated Accounts for the year ended

31.03.2017 is placed at Annexure-X and Annexure-XII respectively. Reply of Management to observations of Statutory Auditor on the Standalone and Consolidated Accounts are placed at Annexure-XI and Annexure-XIII respectively. Observations/ Comments of the Comptroller and Auditor General (C&AG) of India on the Statutory and Consolidated Accounts for the year ended 31.03.2017 are placed at Annexure-XIV and Annexure-XV respectively. Comments of C&AG being "NIL" the reply by the Management thereto is not applicable.

19. COSTAUDIT

Pursuant to the Central Government directions to audit Cost Accounting Records as maintained by the Company, your Company appointed M/s Chandra Wadhwa & Co., Cost Accountants, as Cost Auditor for the year 2016-17. The Cost Audit Report for the year 2016-17 was filed with MCA on 23.09.2016.

20. INTERNALFINANCIALCONTROLS

The Company has adequate control systems and the transactions / processes are guided by delegation of powers, documented policies, guidelines and manuals in compliance with relevant laws and regulations. The organizational structure is well defined in terms of the structured authority / responsibility involved at each particular hierarchy / level.

21. CONSOLIDATED FINANCIALSTATEMENTS

In accordance with the Indian Accounting Standard (Ind AS)-110 on Consolidated Financial Statements read with Ind AS-111 on Joint Agreements and Ind AS-112 on Disclosure of Interest in other entities, the Audited Consolidated Financial Statements are provided in the Annual Report. Directors Report / Financial Statements in respect of following Subsidiary Companies are also included in this Annual Report:-

a) SJVN Thermal Private Limited

b) SJVN Arun-3 Power Development Company, Nepal

22. BOARDOFDIRECTORS

Vide MoP Letter No. 23/10/2010-H-II dated 22nd August, 2016, the tenure of Shri Nand Lal Sharma as Director (Personnel), DIN : 03495554 was extended for a period of five years w.e.f. 22nd March, 2016, or till the date of superannuation, or until further orders, whichever is the earliest.

No other changes occurred in the Board of the company during FY 2016-17.

23. KEYMANAGERIALPERSONNEL

In compliance with Section 203 of the Companies Act, 2013, following have been designated as Key Managerial Personnel:-

1. Shri Ramesh Narain Misra, Chairman & Managing Director

2. Shri AmarjitSingh Bindra, Chief Financial Officer

3. Shri Soumendra Das, Company Secretary

24. IMPLEMENTATIONOFOFFICIALLANGUAGE

In order to ensure the implementation of the Official Language Policy of the Govt. of India, all possible efforts have been made by the company to achieve the targets as specified by the Department of Official Language. Company has received awards in recognition for these efforts. Under section 3.3(i) of Official Language Act cent percent documents were issued bilingually. All the letters received in Hindi were replied to in Hindi. Company''s website is already in bilingual form and it is updated from time to time.

To encourage executives and non-executives to do their entire work in Hindi, a number of incentive schemes are under implementation namely, 1) Payment of amount equivalent to one increment per month for employees doing whole office work in Hindi, 2) Under the "Rajbhasha Samman" Scheme Rs. 25,000/- are paid to the concerned employee(s) for doing his/her work in Hindi at different Projects including Corporate Office and "Rajbhasha Uttkrishthta Samman" of Rs,30,000/- to the employees doing his/her best work in Hindi at Corporate Level. (3) Honorarium for writing technical papers in Hindi, 4) Cash prize on passing Hindi typing examination and 5) Cash prize for Best write-up published in in-house Hindi journal "Himshakti". Under these schemes 169 executives and non-executives have received prizes amounting to Rs. 2,50,000/- approximately.

Imparting training to the executives and non-executives to do their day-to-day work in Hindi by organizing Hindi workshops/seminars is a continuous process in the company. Nine Hindi workshops/seminars have been organized and 176 no. of executives and non-executives have been trained. Organizing of Hindi quiz competitions on national/important occasions and other competitions (i.e. Shudh Hindi Shabad Lekhan, Nara Lekhan, Shabdarthgyan, Vichar Abhivyakti, Essay Writing competition) is a regular feature and besides this a number of competitions were also organised during "Hindi fortnight". In these competitions 365 no. of employees were awarded cash prizes amounting to Rs. 2,16,280/-.

To popularize Hindi amongst the students of School/Colleges/ Institution/Universities situated in the vicinity of projects as well as Corporate Office, various Hindi competitions were organized during this year and 294 nos students were awarded cash prizes amounting to Rs. 5,08,630/-. To popularize Hindi in a big way a ''Akhil Bhartiya Kavi Sammelan'' was also organized on 24.05.2016 at Corporate Office, Shimla. To give impetus to the multi-facet talent of employees an in-house bi-annual Hindi magazine "Himshakti" was published and circulated. Out of total expenditure on purchase of books, 61.94% of amount was spent on purchase of Hindi books.

Government of India, Ministry of Power has awarded ''NTPC Rajbhasha Shield'' Second Prize to SJVN for its outstanding performance in implementation of Official Language during the year 2015-16. Parliamentary Committee on Official Language inspected the progress of use of Hindi at the Expediting Office, New Delhi on 19th September 2016 and expressed its satisfaction over the progress made in this regard. Half yearly meeting of the Town Official Language Implementation Committee, Shimla (Office-2) constituted for the CPSUs & Banks etc. were held under the Chairmanship of SJVN Ltd. Shimla.

25. AWARDS & ACHIEVEMENTS

During the Financial year 2016-17, your Company & Directors received commendation for work in form of various Awards and Accoladesas under:-

i. SJVN was felicitated with "Gold Trophy and Citation of SCOPE Excellence Awards" under Institutional category (Mini Ratna) by Hon''ble President of India, Shri Pranab Mukherjee. The awards were presented in a function held at Vigyan Bhawan, New Delhi to mark the Public Sector Day.

ii. Shri Ramesh Narain Misra CMD, SJVN Ltd. was conferred with

"Pride of India Award" and SJVN was conferred with "Gold Medal". These awards were presented by Institute of Economic Studies (IES) during a seminar on Economic Development.

iii. Shri Ramesh Narain Misra, CMD SJVN was honored with "Award for CEO with HR Orientation" by TIMES Ascent World HRD Congress. These awards recognize and appreciate the talented individuals in the industry.

iv. Shri Ramesh Narain Misra, CMD, SJVN was conferred with "CEO of the Year Award" duringthe9''hIndiaPowerAwards,2016

v. Shri Ramesh Narain Misra, Chairman & Managing Director, SJVN Limited was conferred with "PSU Leadership Award" at the Elets 3rd PSU Summit at New Delhi. The event was also marked by 3rd PSU Summit 2017 where Shri Misra was a key speaker.

vi. SJVN was conferred with "CSR Leadership Award" in the category of Best Corporate Social Responsibility Practices while Shri Nand Lal Sharma, Director (Personnel), SJVN was honored with "Most Impactful CSR Leader"&"Life Time Achievement Award" in individual category during World CSR Congress.

vii. Shri Nand Lal Sharma, Director (Personnel) was honored with "HR Leadership Award" which was presented during Global HR Excellence Awards ceremony. TIMES Ascent World HRD Congress presented these awards to recognize and appreciate the talented individuals in the industry.

viii. SJVN Limited was awarded the "10th ENERTIA Award- India & South Asia" for its Flagship 1500 MW Nathpa Jhakri Hydro Power Station. Shri Ramesh Narain Misra was also awarded in the category of "Power Persona & Individual Excellence" for his valuable contribution to Power Sector.

ix. SJVN was conferred with the prestigious "P.L. Roy Award" instituted by Help Age India for its outstanding contribution in providing free & quality medical care to the communities as one of its many CSR initiatives.

x. SJVN was awarded the First Runners up trophy in the category of "Best Hydro Power Generator" by Independent Power Producers Association of India (IPPAI). The award has been conferred upon SJVN for its outstanding performance in the area of Operation & Maintenance of Hydro PowerStation’s.

xi. SJVN Limited was honored with the "CBIP award of Best Performing Hydro Power Utility".

xii. SJVN was awarded "NTPC Rajbhasha Shield" - second prize, for the year 2015-16.

xiii. SJVN was awarded 17th Annual "Genentech Environment Excellence PLATINUM Award 2017" in Hydro Power Sector for outstanding achievement in Environment Management.

26. PARTICULARS OF LOANS GIVEN, INVESTMENTS MADE GUARANTEESGIVENANDSECURITIESPROVIDED Particulars of loans given, investments made, guarantees given and securities provided along with the purpose for which the loan or guarantee or security is proposed to be utilized by the recipient are as under:-

Particulars

Details

Loans given

Refer Note 2.6 and 2.15 to standalone financial statements

Investments made

Refer Note 2.5 to standalone financial statements

Guarantees given

Nil

Securities provided

Nil

27. GENERAL

Your Directors state that no disclosure or reporting is required in respect of the following items as there were no transactions on these items during the year under review:

1. The Company has not accepted any deposits during the year under review.

2. Issue of equity shares with differential rights as to dividend, voting or otherwise.

3. Neither the Managing Director nor the Whole-time Directors of the Company receive any remuneration or commission from any of its subsidiaries.

4. No significant or material orders were passed by the Regulators or Courts or Tribunals which impact the going concern status and Company''s operations in future.

5. There have been no Material Changes and Commitments subsequent to the Balance sheet.

6. There are no Companies which have become or ceased as subsidiaries, joint ventures or associate Companies during the Year.

7. The company has not made any buy back of shares during the year under review.

28. ACKNOWLEDGMENT

The Board of Directors acknowledge with deep appreciation, the cooperation and guidance extended by various Ministries/ Departments of the Government of India, particularly, Ministry of Power, Ministry of Finance, Ministry of External Affairs, Ministry of Environment & Forest, Central Electricity Authority, Central Water Commission, Geological Survey of India, the Government of Nepal, the Government of Bhutan, the Government of Himachal Pradesh, particularly, the Departments of Power, Finance and Forests, the Pollution Control Board, State Governments of Bihar, Uttarakhand, Arunachal Pradesh, Gujarat and Maharashtra, the State Electricity Boards and the World Bank.

Your Directors also convey their gratitude to the shareholders, various international and Indian banks and financial institutions for the confidence reposed by them in the Company. The Board also acknowledges and appreciates the contribution made by Contractors, Vendors, Consultants and others for achieving the planned goals of the Company.

The Board also places on record its deep appreciation of valued cooperation extended by the Office of the Comptroller and Auditor General of India and the Auditors. Last but not least, the Board commends the hard work and dedicated efforts put in by the employees of the Corporation including the employees on deputation at all levels.

For and on behalf of Board of Directors

(Ramesh Narain Misra)

Chairman and Managing Director

DIN: 03109225

Place: NewDelhi

Date: 27thJuly, 2017


Mar 31, 2015

Dear Members,

The Directors are pleased to present the Twenty Seventh Annual Report of the Company for the year ended March 31, 2015 along with the Audited Statement of Accounts, Report of Auditors and Comments of the Comptroller and Auditor General of India.

The following financial highlights for the year ending 31st March, 2015 briefly encapsulate the performance of your company:-

1. FINANCIAL HIGHLIGHTS Rs. In crore)

PARTICULARS STANDALONE CONSOLIDATED

2014-15 2013-14 2014-15 2013-14

REVENUE

Revenue from Operations 2817.53 1873.58 2817.44 1873.52

Other Income 443.57 237.14 443.59 237.18

Total Revenue 3261.10 2110.72 3261.03 2110.70

EXPENSES

Employees'' 199.57 123.75 199.57 123.75

Benefits Expense

Finance Costs 64.56 28.88 64.56 28.88

Depreciation and

Amortization Expenses 641.00 474.52 641.00 474.52

Other Expenses 176.44 145.38 176.46 145.49

Total Expenses 1081.57 772.53 1081.59 772.64

Profit before exceptional 2179.53 1338.19 2179.44 1338.06 items and Tax

Exceptional Items 132.28 - 132.28 -

Profit Before Tax 2047.25 1338.19 2047.16 1338.06 Tax Expenses:

- Current Tax 429.11 280.50 429.12 280.51

- Deferred Tax (58.61) (56.94) (58.61) (56.94)

Profit for the Year 1676.75 1114.63 1676.65 1114.49

2. GENERATION

Gross Energy Generation of NJHPS during the year was 6838.125 MUs achieved as against MoU target of 6900 MUs for excellent rating and 7192.553 MUs during the previous year. The Plant Availability Factor (PAF) during the year was 105.504% against the MoU target of 92.5% and 105.75% during the previous year.

Gross Energy Generation of RHPS during the year was 1257.520 MUs as against MoU target of 950 MUs for excellent rating.

Gross Energy Generation of Wind Power Project at Khirvire during the year was 40.488 MUs as against target of 70 MUs for excellent Rating.

3. REVENUE AND PROFITS

The standalone revenue from operation increased by Rs. 943.95 crore to Rs. 2817.53 crore during the financial year 2014-15 compared to Rs. 1873.58 crore during the previous year. Similarly standalone Profit After Tax (PAT) increased by Rs. 562.12 crore to Rs. 1676.75 crore against Rs. 1114.63 crore for the previous year. The increase in revenues and profits was mainly on account of sale of energy generated by newly commenced Rampur Hydro Power Station and Khirvire Wind Power Projec, and arrear billing for previous years, after tarrif approval by CERC.

Consolidated accounts with the subsidiary & joint venture companies showed a decrease in profit of consolidated group by Rs. 0.10 crore as compared to standalone results of SJVN Limited on account of loss/ elimination of intra-group transactions in CPTC.

4. TRANSFER TO RESERVES

During the year, no amount was transferred to Reserves of the Company.

5. DIVIDEND

During the year an interim dividend of Rs. 0.63 per share has been paid in the month of February 2015. In addition your Board has recommended a final dividend of Rs. 0.42 per share. Thus, subject to your approval, a total dividend of Rs. 1.05 per share (Rs. 434.35 crore) is proposed to be paid for FY 2014-15 against Rs. 0.98 per share (Rs. 405.39 crore) paid during the previous year.

6. PROJECTS UNDER EXECUTION

6.1 RAMPUR HYDRO ELECTRIC PROJECT (412 MW)

The Rampur project with a generation potential of 412 MW has been built on river Satluj, situated in Shimla and Kullu districts of Himachal Pradesh in North India. The project is designed and operated as cascade tandem operating plant to Nathpa Jhakri Power Plant. Project is designed to generate 1878 million units of electricity each year.

Major works of project began in February, 2007. After completion of HRT, Surge Shaft, Valve House, Power House, TRT and other associated works, water filling of Water Conductor System was successfully completed in March, 2014 without any leakage. The synchronization/commissioning of first three units of project i.e. unit no. 1, 2 and 5 was achieved in FY 2013-14 with commercial operation beginning on 13.05.2014 and the remaining three units i.e. Unit no. 4, 3 and 6 were synchronized / commissioned in FY 2014-15 and are under commercial operation since 18.06.2014, 08.08.2014 and 16.12.2014 respectively.

Power generated from Rampur HPS is distributed to Northern Regional States i.e. Himachal Pradesh, Haryana, J&K, Punjab, Rajasthan, UP, Uttarakhand as per their percentage allocation by Ministry of Power.

7. PROJECTS UNDER SURVEY AND INVESTIGATION

7.1 ARUN-3 PROJECT (900 MW)

SJVN Arun-3 Power Development Company Pvt. Ltd (SAPDC) was incorporated & registered on 25.04.2013 as a single shareholder Private Limited company under the Nepalese Companies Act 2063, with SJVN Limited as its sole shareholder and principal objective to plan, promote, organize & execute the Arun-3 Hydro-electric Project. The Corporate office of the SAPDC is located at Biratnagar , Nepal and the project office is located at Khandbari, District Sankhuwasabha, Nepal. The project is a run-of-river scheme located on Arun river in Sankhuwasabha District of Nepal, which is 657 km from Kathmandu via Biratnagar. Letter of intent was issued on 23.05.2010 by GoN to SJVN to carry out infrastructure work at Dam & Power House site.

The survey & investigation works were completed in January, 2011. The Project has been techno-economically appraised by CEA on 30.04.2014. Project Development Agreement (PDA) was signed with IBN, GoN on 25.11.2014. EIA report was submitted to the Investment Board of Nepal on 20.03.2015 and Ministry of Science, Technology & Environment, GoN on 27.03.2015 which is under approval. Detailed Project Report for "300 Km long 400 kV D/C Didin (in Nepal)- Dhalkebar (in Nepal)- Muzaffarpur (in India) Transmission Line" has been appraised by CEA. Investment decision for a total cost of Rs. 7096.76 Crore at Sept, 2014 Price Level that includes Generation (Rs. 5947.95 Crore) & Transmission line (Rs. 1148.81 Crore) projects is under the consideration of Ministry of Power, Government of India.

SAPDC is geared up to take up the Infrastructure works of the Project as soon as the statutory clearances and investment decision to incur expenditure are available.

7.2 LUHRI PROJECT (601 MW)

Luhri Hydro Electric Project is located on river Satluj in Shimla/ Kullu/ Mandi districts of Himachal Pradesh. The project envisaged an HRT of 38 km length and 86 m high Dam to generate 2203 MUs of energy with installed capacity of 577 MW along with a Toe Power House with an installed capacity of 24 MW, generating 132 MUs of energy.

The Environment Clearance and Stage-I Forest Clearance had been accorded to the project by Ministry of Environment & Forests (MoEF) while acquisition of private land was under process.

The Detailed Project Report of the proposed scheme was under appraisal by CEA. During detailed scrutiny/examination, after the results of model studies to assess feasibility of surge tunnels, it was found that it would be difficult to construct 45m diameter dome over Surge Shaft in fractured/jointed rock mass and therefore layout of entire power house complex needed review. Also based on public apprehensions regarding reduction of flow in the river Satluj significantly in its respective reach because of 38 km long Head Race Tunnel envisaged for the scheme causing damage to the riverine ecology, GoHP during March, 2015 considering social and environmental/ecological reasons, advised SJVN to review the scheme and instead consider a multi stage development of the project. Accordingly a 3 stage development with a total installed capacity of 701 MW and taking up Stage-I initially is under consideration of SJVN.

7.3 DHAULASIDH PROJECT (66 MW)

The Dhaulasidh Hydro-electric Project with installed capacity of 66 MW is located on River Beas, in Hamirpur and Kangra Districts of Himachal Pradesh. The Project is designed as run-of-river project with a small live storage that would be utilized for peaking power during the lean season. The Project holds potential of generating 247.25 million units of electric energy in a 90% dependable year. The estimated cost of Project is Rs 1002.10 crore at Dec, 2014 Price level.

TEC of the Project was accorded on 25.06.2011 by Directorate of Energy, Govt of Himachal Pradesh. The Environment Clearance & Stage-1 Forest Clearance has been accorded by MoEF, Govt. of India. The Proposal for investment decision is under consideration of the Ministry of Power, Government of India. The process of acquisition of the private land measuring 252.23 Hectare shall be initiated in accordance with the provisions of Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation & Resettlement Act, 2013.

The possibility of generating solar power through floating panels in the reservoir area is also being taken up with the help of M/s BHEL for establishing its feasibility.

7.4 DEVSARI HEP (252 MW)

A run-of-river (RoR) scheme with installed capacity of 252 MW is located on River Pinder, in Chamoli District of Uttarakhand State. The project will generate 936.9 MU of energy in a 90% dependable year. The scheme was cleared by Govt. of Uttarakhand in October, 2007 and by Standing Technical Committee in April, 2012. DPR of the project was concurred by CEA in August, 2012. The estimated cost of the Project is Rs. 2299.85 crore at December, 2014 price level.

The project was recommended for Environment Clearance by the Expert Advisory Committee (EAC) of MoEF in its meeting held in December, 2012. However, Environment clearance was subject to Stage-I Forest Clearance which is pending. Forest Advisory Committee (FAC) meeting was held on 28.01.2015, wherein some observations were raised by FAC, and is being replied.

For acquisition of private land, Central Govt. as well as State Govt. are yet to notify the rules for carrying out provisions of New Land Acquisition Act, 2013. The CAT Plan of the project has been approved by Government of Uttarakhand (GoU). Other activities required for start of construction of project like mining and explosive clearance etc. are in process. Finalization of bidding documents for award of major civil works are in process. Subsequent to floods in 2013, the Hon''ble Supreme Court imposed stay on environment and forest clearance and final verdict of Hon''ble Supreme Court is still awaited.

7.5 NAITWAR MORI HEP (60 MW)

The Naitwar Mori HEP having proposed installed capacity of 60 MW is located on River Tons, a major tributary of River Yamuna in Uttarkashi District of Uttarakhand. The project is designed as run-of-river project and has the potential to generate 265.5 MU of energy in a 90% dependable year. The estimated cost of the Project is Rs. 696.80 crore at December, 2014 price level.

The DPR of the project was approved by Govt. of Uttarakhand in March, 2010. The project was recommended for Environment Clearance by the Expert Advisory Committee of MoEF in its meeting held in December, 2012. However, Environment clearance was subject to Stage-I Forest Clearance which is pending. The CAT Plan of the project has been approved by Government of Uttarakhand (GoU). Regarding Forest Clearance, R.O, Dehradun forwarded the case to MoEF, GoI, New Delhi on 22.12.2014 for further necessary action.

Possession of private land has been taken and mutation of land also done. Subsequent to floods in 2013, the Hon''ble Supreme Court imposed stay on environment and forest clearance and final verdict of Hon''ble Supreme Court is still awaited.

7.6 JAKHOL SANKRI HEP (51 MW)

The Jakhol Sankri HEP with proposed installed capacity of 51 MW is located on River Supin, a tributary of River Tons in Uttarkashi District of Uttarakhand. The project is designed as run-of-river project and has the potential to generate 216.26 MU of energy in a 90% dependable year. The estimated cost of the Project is Rs. 411.85 crore at March, 2012 price level.

DPR is under approval by Govt of Uttarakhand. Submission of revised Application of TOR for EIA/EMP report is in process. NBWL meeting was held on August 12/13, 2014. The committee deferred the proposal stating that this matter was pending before Hon''ble Supreme Court. Ministry of Environment, Forest and Climate change, Government of India has issued new guideline of accepting proposals of Diversion of Forest land online only. Accordingly, formalities are being carried out for submission of case online as per the check list provided by Government of Uttarakhand (GoU). Subsequent to floods in 2013, the Hon''ble Supreme Court imposed stay on environment and forest clearance and final verdict of Hon''ble Supreme Court is still awaited.

7.7 DOIMUKH HYDRO ELECTRIC PROJECT (80 MW)

The Doimukh HEP with installed capacity of 80 MW is located on River Dikrang in Papum Pare District of Arunachal Pradesh. MOA between SJVN and Govt. of Arunachal Pradesh was signed on 12.08.2014 in the presence of Hon''ble CM of Arunachal Pradesh. The project is designed to generate 294.54 MU of energy in a 90% dependable year. The estimated cost of the Project is Rs. 739.58 crore at May, 2012 price level.

The survey and investigation works of the project including topographic survey, drilling, drifting, construction material survey etc. are in the process of tendering and award while the process of clearances from various departments of the State Govt. have been initiated. The terms of reference for taking up Environment Impact Assessment and Environmental Mitigation Plan are in the process of approval by MoEF.

7.8 PROJECTS IN BHUTAN

7.8.1 KHOLONGCHHU H.E. PROJECT (600MW)

Kholongchhu HEP with the installed capacity of 600MW on the river Kholongchhu in Bhutan will annually generate 2568.88MU of energy. The DPR of the project has already been appraised by CEA as well as Royal Government of Bhutan(RGoB).The estimated cost of the Project is Rs. 3859.77 crore at June,2013 Price Level. The tariff of the project is Rs. 3.47 (1st Year).

The project is to be implemented by the Joint Venture Company of SJVN Limited and Druk Green Power Corporation (DGPC) Bhutan. Inter-Governmental Agreement between Royal Government of Bhutan (RGoB) and Government of India (GoI) was signed on 22.04.2014 in Thimpu. The foundation stone was laid by Hon''ble Prime Minister of India on 16.06.2014. Environment clearance was accorded by National Environment Commission (NEC) of RGoB on 21.07.2014. The Shareholders Agreement for development of 600MW KHEP between DGPC and SJVN was signed on 30.09.2014 at Thimpu.

7.8.2 WANGCHHU H.E. PROJECT (570 MW)

Wangchhu HEP is a run-of-river scheme with the installed capacity of 570MW on the river Wangchhu in Bhutan which will annually generate 2478.93 MU of energy.

The DPR vetted by CEA on 28.03.2014.DPR was submitted to RGoB on 13.05.2014. The revised DPR after incorporating comments submitted to RGoB for approval on 27.10.2014, is under approval. The estimated cost of the project is Rs. 4240.76 crore at Oct, 2014 price Level. The tariff of the project is Rs. 4.41 (1st Year).

The project is to be implemented by the JV Company of SJVN and Druk Green Power Corporation (DGPC), Bhutan. Inter- Governmental Agreement between Royal Government of Bhutan (RGoB) and Government of India (GoI) was signed on 22.04.2014 in Thimpu. Public consultation meetings have already been conducted. Final EIA/EMP report after incorporating the comments was submitted to NEC, RGoB for approval on 27.10.2014 and the same is under review in NEC of RGoB. Forest clearance for project components except roads and mining area have been obtained on 24.09.2014.

8. FURTHER DIVERSIFICATION

SJVN Limited envisions to develop itself into a "Fully Diversified Transnational Power Sector Company" in all types of conventional and non-conventional forms of energy and in this direction has ventured into Thermal, Solar and Wind Generation and Transmission Businesses. The status of progress of Thermal, Solar and Wind Generation and Transmission ventures during FY 2014-15 is as under:-

8.1 THERMAL PROJECTS

8.1.1 BUXAR THERMAL PROJECT (1320 MW)

SJVN had signed an MOU for setting up Green Field 1320 MW (2x660 MW) Supercritical Technology Thermal Power Project at Chausa village in Buxar district, Bihar in January,2013 for which Power Purchase Agreement (PPA) has been signed with Bihar State Power Holding Company Limited (BSPHCL) for 85% share of power generation on bus bar rate.

SJVN acquired the Project Executing Company i.e. Buxar Bijlee Company Private Limited on 04.07.2013 and paid all the liabilities due upto date. The name of Buxar Bijlee Company Private Limited was changed to SJVN Thermal Private Limited on 17.10.2013 which is now a wholly owned subsidiary company of SJVN Limited.

The JV Agreement, MoA, AOA, Term Sheet for JV formation have been signed on 07.01.2015 with six partner states for Deocha Pachami coal block (2102 MT). The Registration of the JV company is expected by August, 2015 with RoC, Kolkata. Investment approval for Pre-construction activities for an amount of Rs. 436.68 Cr. has been accorded by Ministry of Power, Gol.

The process of Land acquisition of 1067 acres is at an advanced stage of possession. Pre-Feasibility Report (PFR) for Rail Infrastructure has been completed by RITES. Appointment of Consultant for Pre-award activities is under process and expected to be finalized by the end of this year. Action for Tie-up of Fly Ash Utilisation and import of Coal is under process.

8.2 SOLAR PROJECTS

SJVN Limited has given a commitment to Government for development of 1000 MW Solar PV Power project (s) during a period of 5 Yrs. i.e. Yr. 2015-2019 in RE-INVEST Summit held on 15-17th February, 2015 in New Delhi.

8.2.1 CHARNKA SOLAR ENERGY PROJECT

SJVN has acquired 25 Acre of land in Charnka Solar Park for development of 5 MW Solar PV Power Project which will generate approx. 8 MUs annually. Commissioning of project is planned by March, 2016.

8.2.2 SAMBHAR ULTRA MEGA SOLAR POWER PROJECT

SJVN had entered into MOU with 5 other PSUs i.e. BHEL, SECI, Power Grid, HSL & REIL for development of Phase I of 1000 MW PV power project at Sambhar Ultra Mega Solar Power project. Due to certain legal and environment issues further progress on the development of project is kept under hold. Further, SJVN has signed a MOU with M/S Hindustan Salt Limited for development of Ultra Mega Hybrid Renewable (Solar & Wind) Energy Park at Kharaghoda and is also exploring the possibility of development of around 100 MW at Sambhar, Rajasthan jointly with M/s. HSL for which land identification with M/s HSL is under progress.

8.2.3 MOU FOR 500MW GRID CONNECTED PROJECT

SJVN has also signed an MOU with Solar Energy Corporation of India (SECI) on 19.06.2015 in New Delhi to set up 500 MW grid connected solar power projects. SECI shall facilitate for the development of Solar PV Power Project and will arrange land, PPA and Project management Consultancy assuring at least 12% ROE.

8.2.4 MISCELLANEOUS DEVELOPMENTS

SJVN has taken up exploration of possibilities for setting up Solar PV Power project on the land bank of Indian Railway and National Seed Corporation (NSC) at U.P., Maharashtra, M.P. and Rajasthan as well as in Solar Parks through competitive Bidding under National Solar Mission (JNNSM).

8.3 WIND PROJECTS

8.3.1 KHIRVIRE WIND POWER PROJECT IN MAHARASHTRA (47.6 MW)

Company has set up a 47.6 MW capacity Wind Power Project at Khirvire/Kombhalne villages of Ahmednagar district of State of Maharashtra. The project comprises 56nos. Wind Energy Generators (WEGs), each of capacity 0.85 MW. The Project started generation w.e.f. 20th January-2014 with commissioning of first lot of 25 WEGs and attained full generation capacity by commissioning the last 56th WEG on 20th May,2014.

8.4 TRANSMISSION PROJECTS

CROSS-BORDER POWER TRANSMISSION COMPANY LTD.

Cross- Border Inter Stale Transmission Link for trade of Power between Nepal & India is being developed by a Joint Venture Company (CPTC), wherein SJVN has 26% equity portion along with IL&FS Energy Development Company Ltd. (38%), POWERGRID (26%) and Nepal Electricity Authority (NEA) (10%). The above transmission link is of 400kV, D/C line (initially to be charged at 220kV) between Muzaffarpur & Dhalkebar. CPTC (JV Company) is executing the portion between Muzaffarpur & Sursand (87 km) at a project cost of Rs. 210.70 crore with 80:20, debt: equity ratio and debt portion amounting to Rs. 175.19 crore has been financed by PFC. Transmission link on the Nepal side of the line between Sursand & Dhalkebar (39 km) is being executed by another JV Company (PTCN) registered in Nepal having partners IL&FS Energy Development Company Ltd.(26%), POWERGRID (26%) and Nepal Electricity Authority (NEA) (48%) .

The award for execution of 87 km Power Transmission line (Muzaffarpur-Sursand) has been given to KEC International as EPC Contract and progress of work is in full swing. It involves 233 towers of 400 kV out of which 201 towers have been erected and 213 tower foundation work is completed, 58 kms, stringing have been completed and balance 29 kms. Stringing is in progress. Supply of material/equipment in respect of Towers, Earthing Material, Conductors, Equipment pipe structures, Circuit Breakers, Isolators, CT, PT, Surge Arresters and OPGW (first lot) have been completed. Pile Foundation at Budhi Gandak River and Baghmati River (3 locations each) have been completed.

9. CURRENT PERFORMANCE

For the quarter ending 30th June 2015, the power generated was 3340 MUs (previous year: 2160.788 MUs). The total income from sale of power recorded was Rs. 776.29 crore as against Rs. 674.71 crore for the corresponding quarter of the previous year.

10. ENVIRONMENT

Your company has adopted an Environment Policy in 2006, in response to its commitment and concern for sustainable development. In support of this policy, all projects are being regularly reviewed from legal stipulation angle as well as internal procedure and have shown complete compliance to all conditions stipulated by the Government of India while granting Environment and Forest Clearances.

Your Company''s Corporate Objectives also promote conservation and protection of environment as in ''striving clean and green project environment with minimal ecological and social disturbances''. Towards this end, your company has formulated a comprehensive Environment Management Plan to ameliorate any potential environmental impact for sustenance of resources over a long term.

The Environment Management Plan (EMP) for Nathpa Jhakri Hydro Power Station had been formulated for Rs. 35.38 crore. Activities such as compensatory afforestation, muck disposal plan, fisheries sustenance, green belt development, etc. have been completed while Catchment Area Treatment(CAT) plan works are under implementation by H.P. State Forest Department.

The EMP for Rampur Hydro Electric Project had been approved for Rs. 45.52 crore and mitigation measures at site are in completion stage. Restoration of muck dumping sites and other muck utilization areas in project has been largely done using state of the art Geo-Green Erosion Control Blanket technique which have been designed and evolved to provide an integrated solution for slope stabilization. Blanket is made up of bio-degradable coconut fibres and reinforced with high density polyethylene threads ,which not only retains water for longer period but gradually biodegrade naturally to fully blend with the soil conditions. The success achieved in Rampur Hydro Electric Project has prompted us to work towards improving this technique further while implementing it in other projects.

True to its commitment for self-regulation and environment protection, your company has also established an Environment Laboratory at Jhakri on the guidelines laid down by Ministry of Environment, Forest & Climate Change, Government of India. The laboratory is first of its kind in the area and has the facility for conducting Water and Wastewater analysis, Microbiological testing, Ambient Air Quality monitoring, Noise monitoring, Meteorological monitoring, Soil/Sludge/Sediment, Solid waste testing and Metal analysis.

11. CSR AND SUSTAINABILITY

An annual report of Corporate Social Responsibility, highlighting the Company''s CSR Policy, details of expenditure on CSR and overview of projects/ programs/ activities undertaken by the Company during FY 2014-15 in format prescribed under Companies (CSR Policy) Rules 2014 is annexed as Annexure-V and forms an integral part of this Directors Report.

12. REHABILITATION AND RESETTLEMENT

SJVN has implemented R&R Plan in NJHPS and RHEP incurring cumulative expenditure of Rs. 13.65 Cr. and Rs. 29.67 Cr. respectively. SJVN engaged the services of Agriculture Economic Research Centre, Himachal Pradesh University for Social Impact Evaluation of R&R implementation in the both projects. The SIE Reports reveals that the R&R implementation has notably raised the socio economic standard of the project affected families in all facets of their lives.

In NJHPS, whereas 130 landless families were already provided land for land , 5 more PAF cases are under process for providing agricultural land. SJVN had agreed with Local Representatives and Local Government for providing re-determined amount of land compensation to the left out land owners under NJHPS who could neither approach the Hon''ble Court nor the Land Acquisition Officer under Land Acquisition Act. In compliance, in first phase re- determined compensation of Rs. 1,47,50,137/- to 190 eligible land owners have been paid.

Under Local Area Development Fund (LADF) notification of GOHP, SJVN has so far made cumulative expenditure of Rs. 30.71 Cr. on various Infrastructural & Community Development works in Project areas under District Kullu and District Shimla of Rampur, HEP. During the financial year 2014-15, funds of Rs. 1.53 Cr. have been released to Deputy Commissioner, Kullu for various infrastructural and community development works and funds of Rs. 2.06 Cr. have released to Deputy Commissioner, Shimla for construction of Government Senior Secondary School, Rampur whereas funds of Rs. 3.00 Cr. were already released on this account.

13. RESEARCH AND DEVELOPMENT

In line with the DPE guidelines, SJVN has laid special attention on Research and Development for Process Improvement, Product Development etc. in its area of operation. Specific area in which R&D has been carried out during 2014-15 in line with MoU signed with MoP are:

a) Residual life assessment (RLA) study of Francis type runner of NJHPS.

b) Development of methodology of hard coating of Francis type runner of NJHPS.

c) Assessment of Residual service life of existing structures and suggestions for increasing the life of Nathpa Dam of NJHPS.

d) Development of Cheek Plate.

e) Study of abrasion resistance of different grades of concrete using normal & low strength coarse aggregate for use in wearing surfaces of NMHEP.

In addition to the R&D schemes chosen in the MOU, your company has also undertaken following additional R&D studies for overall development and system improvement:-

a) Continuation of studies on economical mix design for high strength concrete in continuation to MOU 2012-13.

b) Studies on optimum use of stone dust/crushed sand in M-10 and M-15 concrete.

c) Study for substitution of non-shrink ready mix concrete (Shrinkompetc.)

d) Use of synthetic fibre in concrete for its cohesion and imperviousness etc.

e) Study for improvement and standardization of Tunnel Grouting procedure and checking the effectiveness of grouting (other than water pressure test) under various tunneling condition.

All the projects have been successfully implemented under the guidance of eminent professionals from various Engineering fields and in collaboration with renowned institutions like IITs, NITs, NCCBM and NTTTI etc.

14. HUMAN RESOURCES

Human Resource is valued as "Greatest Asset" of an organization. Today the term "Human Capital" has been coined by Nobel Prize winning Economist Gary S.Becker to reflect their true worth. The present day economy has been titled as "Knowledge Economy" and so talent occupies the centre stage in Indian work place. In view of this, managing and retaining talent figures on the critical path en-route to organizational sustainability and success. Powered by about 1800 brain heads, we have immense faith in the capabilities of our human resource and believe in unleashing their potential in all possible ways. We take pride in the fact that the attrition rate for financial year 2014-15 was only 0.45%.

SJVN today practices a multi-pronged strategy to meet the aspirations of the ageing work force and "Gen Ys" who have stormed the work place. Leadership development, building competencies, multi-tasking and skill up gradation are meriting attention of the management. In the year ending March 2015, SJVN successfully accomplished the ambitious target of 2 days essential training to more than 90% of employees.

Our endeavor to achieve a performance driven culture is evidenced by the introduction of ''Robust Performance Management System'', to ensure holistic development of employees in addition to its inherent role as an assessment tool. Employee''s performance, so assessed, is duly recognized by payment of variable pay. For the year 2014-15, while the total expenditure on salary and wages was ''259.78 Crore, including Variable Pay amounting to ''22.89 Crore. Multi rater feedback or 360 degrees feedback has also been put in place to identify competency gaps and draw development plans accordingly.

World over reward and recognition are today recognized as an effective tool to reinforce performance driven culture. Rewards like Employee of the year Award, CMD Award, Best Suggestion Award and Special Recognition/Incentive for Shram Awardees have been introduced to recognize good performance of the employees. Our company''s efforts towards human resource development have been appreciated in the form of many awards like ''Organization with Innovative HR Practices'', ''7th CIDC Vishwakarma Award 2015'', ''Gold Plate CSR Award'', ''Legend PSU Shinning Award'' and ''Gold & Silver Shields'' to RHPS etc.

At SJVN Employee Welfare initiatives focus on inclusive welfare of employees and addresses concerns like House Building, Children Higher Education, Health Care, Insurance and Routine Health Check up etc. We are committed to take care of our valuable ''Human Capital'' not only while in service but also after the separation and have introduced many ambitious policies viz Scheme for Rehabilitation of Family of Deceased Employee and Benevolent Fund Scheme, Medical Benefits and pension, etc.

The total manpower (excluding deputationist) on the rolls of SJVN was 1561 as on 31st March, 2015 as against 1579 as on 31st March, 2014. The strength of HPSEB/HP Govt. employees on deputation on the above date was 258 as against 290 on 31st March, 2014. As of 31st March, 2015 the employees from SC,ST and OBC was 327, 101 and 178 respectively as against 332, 99 and 175 respectively during the previous year.

Your Company gives utmost importance for the enrichment of skills & in-house and external training programmes are organized in all disciplines and at all levels. As a result, during the financial year 2014-15, 1663 employees were trained for 5851 man days.

15. INDUSTRIAL RELATIONS

Regular Meetings are held with the representatives of the various Associations/ Unions to sort out the local issues as well as policy related matters. Recreational, Cultural and Sports functions on different occasions were also held, thus, resulting better employee-employer relations and cordial industrial relations were maintained during the year.

16. STATUTORY AND OTHER INFORMATIONS

The information required to be furnished as per the Companies Act 1956/ 2013, Listing Agreements, Government Guidelines, and Code of Corporate Governance of your Company, on the following matters is placed at respective annexures and form integral part of Directors Report:-

a. Management Discussion and Analysis - Annexure - I

b. Report on Corporate Governance - Annexure - II

c. Certificate from Practising Company Secretary regarding compliance of conditions of Corporate Governance - Annexure - III

d. Information on Conservation of Energy, Technology Absorption and Foreign Exchange earnings and out go - Annexure - IV

e. Annual Report on CSR Activities - Annexure - V

f. MGT-9 - Extract of Annual Return - Annexure-VI

17. DIRECTORS'' RESPONSIBILITY STATEMENT

The Directors'' state that :

* in the preparation of the annual accounts for the year ended March 31, 2015, the applicable accounting standards read with requirements set out under Schedule III to the Act, have been followed along with proper explanation relating to material departures, if any;

* the Directors have selected such accounting policies and applied them consistently except as disclosed in the Notes on Accounts and made judgment and estimates that are reasonable and prudent so as to give a true and fair view of the state of affairs of the Company as at March 31, 2015 and of the profit of the Company for the year ended on that date;

* the Directors have taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities;

* the Directors have prepared the annual accounts on a ''going concern'' basis;

* the Directors have laid down internal financial controls to be followed by the company and that such internal financial controls are adequate and are operating effectively;

* the Directors have devised proper systems to ensure compliance with the provisions of all applicable laws and that such systems are adequate and operating effectively.

18. DECLARATION OF INDEPENDENCE

Your Company has received declarations from all the Independent Directors confirming that they meet the criteria of independence as prescribed under the provisions of Companies Act, 2013 read with the Schedules and Rules issued thereunder as well as Clause-49 of the Listing Agreement.

19. SEXUAL HARASSMENT PREVENTION

SJVN has implemented the Sexual Harassment of Women at Workplace (prevention, prohibition and redressal) Act, 2013 in its entirety.

Internal Complaints'' Committees as per the provisions of the act have been constituted at Corporate Office and Projects sites of SJVN.

Summary of Sexual harassment issues raised, attended and dispensed during the year 2014-15:-

No. of complaints received in 2014-15 -Nil-

No. of complaints disposed off -Nil-

No. of cases pending for more than 90 days -Nil-

No. of workshops or awareness programme against sexual harassment carried out Four

Nature of action taken by the employer or District Officer -Nil-

20. SECRETARIAL AUDIT

The Board appointed M/s SGS Associates, PCS to conduct Secretarial Audit for the Financial Year 2014-15.The Secretarial Audit Report for FY ended March 31, 2015. The Report of the Secretarial Auditors for the year ended 31.03.2015 is placed at Annexure-VII. Reply of Management to observations of Secretarial Auditor are placed at Annexure-VIII.

21. STATUTORY AUDIT

M/s Soni Gulati & Co., Chartered Accountants, Shimla, were appointed by Comptroller & Auditor General as Statutory Auditors of the Company for the financial year 2014-15.

The Report of the Statutory Auditors to the Members on the Standalone and Consolidated Accounts for the year ended 31.03.2015 is placed at Annexure-IX and Annexure-XI respectively. Comments of the Comptroller and Auditor General (C&AG) of India on the Standalone and Consolidated Accounts for the year ended 31.03.2015 are placed at Annexure-X and Annexure-XII respectively. Comments of Statutory Auditors and C&AG being "NIL", hence the reply by the Management thereto is not applicable.

22. COST AUDIT

Pursuant to the Central Government directions to audit Cost Accounting Records as maintained by the Company, your Company appointed M/s Balwinder & Associates, Cost Accountants, as Cost Auditor for the year 2014-15 with the approval of Ministry of Corporate Affairs for the audit. The Cost Audit Report for the year 2013-14 was filed with MCA on 20th September 2014.

23. INTERNAL FINANCIAL CONTROLS

The Company has in place adequate internal financial controls with reference to financial statements. During the year, such controls were tested and no reportable material weakness in the design or operation were observed.

24. CONSOLIDATED FINANCIAL STATEMENTS

In accordance with the Accounting Standard (AS)-21 on Consolidated Financial Statements read with AS-23 on Accounting for Investments in Associates and AS-27 on Financial Reporting of Interest in Joint Ventures, the Audited Consolidated Financial Statements are provided in the Annual Report. Directors Report / Financial Statements in respect of following Subsidiary Companies are also included in this Annual Report:-

1. SJVN Thermal Private Limited

ii. SJVN Arun-3 Power Development Company, Nepal

25. BOARD OF DIRECTORS

The Directors Report for the year 2015 contained changes in the Board level positions on account of appointments and cessations up to 31st March 2015. Subsequently, the following changes in the Board have occurred:-

Consequent to completion of their tenure of appointment, Smt. Asha Swarup, Sh. S.M. Lodha, Sh. K.S. Gill and Sh. Arun Mahajan ceased as Part-Time Non Official Directors on 13th September, 2014 and Sh. D.V. Dharmik ceased as Part-Time Non Official Directors on 13th December, 2014.

Sh. Mukesh Jain, Joint Secretary (Hydel), Ministry of Power, ceased as Part-Time Official Director (GoI Nominee) on 10th November, 2014 and Sh. Arun Kumar Verma, was appointed as Part-Time Official Director in place of Sh. Mukesh Jain with effect from 2nd December 2014.

Sh. R.P Singh, ceased as Chairman & Managing Director of the Company on 31st December 2014 on reaching age of superannuation. Sh. R.N. Misra, Director (Civil) held additional charge of CMD w.e.f. 6th January, 2015. Subsequently, pursuant to the orders of Ministry of Power Shri R.N. Misra was appointed as Chairman & Managing Director with effect from 26th February, 2015. Consequent to his assumption of charge as CMD, Shri R.N. Misra relinquished the post of Director (Civil), of the Company w.e.f. 26th February, 2015.

The Board welcomes the appointments and wishes to place on record its highest appreciation for the valuable contributions made by the outgoing Directors during their association with SJVN.

26. KEY MANAGERIAL PERSONNEL

During the year, in compliance with Section 203 of the Companies Act, 2013, following were designated as Key Managerial Personnel w.e.f. 28th July 2014:-

1. Sh. R.P. Singh, Chairman & Managing Director

2. Sh. A.S. Bindra, Chief Financial Officer

3. Sh. Soumendra Das, Company Secretary

Subsequently, on superannuation of Sh. R.P. Singh, Shri R.N. Misra was appointed as Key Managerial Personnel in his place w.e.f. 6th January, 2015.

27. IMPLEMENTATION OF OFFICIAL LANGUAGE

In order to ensure the implementation of the Official Language Policy of the Govt. of India, all possible efforts have been made by the company to achieve the targets as specified by the Department of Official Language. Company has received awards in recognition for these efforts. Under Section 3.3(i) of Official Language Act cent percent documents were issued bilingually. All the letters received in Hindi were replied to in Hindi. Company''s website is already in bilingual form and it is updated from time to time.

To encourage executives and non-executives to do their entire work in Hindi a number of incentive schemes are under implementation namely 1) Payment of amount equivalent to one increment every month for doing whole office work in Hindi, 2) Honorarium for writing technical papers in Hindi, 3) Cash prize on passing Hindi typing examination and 4) Cash prize for Best write-up published in in-house Hindi journal "Himshakti". Under these schemes 367 executives and non-executives have received prizes amounting to Rs. 6,17,890/- approximately.

Under the new "Rajbhasha Samman" Scheme Rs. 25,000/- are paid to each employee doing best work in Hindi in different Projects including Corporate Office and "Rajbhasha Uttkrishtta Samman" of ''30,000/- to the employee doing best work in Hindi at Corporate Level. This year twelve employees were awarded cash prizes of Rs. 3,05,000/- under the scheme.

To impart training to the executives and non-executives to do their day-to-day work in Hindi by organizing Hindi workshops/seminars is a continuous process in the company, 07 Hindi workshops/seminars have been organized and 159 nos. of executives and non-executive have been trained. Organising of Hindi quiz competitions on national/important occasions is a regular feature and besides this a number of competitions were also organized during "Hindi Fortnight" in which 346 nos. of employees and 250 nos. of students were awarded cash prizes amounting to Rs. 8,15,800/-.

Govt. of India, Ministry of Home Affairs, Department of Official Language has awarded prestigious Indira Gandhi Rajabhasha Shield Third Prize for its outstanding performance in implementation of Official Language during the year 2013-14. SJVN has been awarded NTPC Rajbhasha Shield (IInd Prize) for better performance in the field of implementation of Official Language. Rajbhasha Vaijanti Shield (Ist Prize) was also awarded to Corporation by Town Official Language Implementation Committee, Shimla for excellent performance in Hindi during year 2013-14.

Deptt. of Official Language, Ministry of Home Affairs, Govt. of India has constituted a separate Town Official language Implementation Committee, Shimla for CPSU & Banks under the Chairmanship of SJVN''s CMD.

To give impetus to the multi-facet talent of employees an in-house bi-annual Hindi magazine "Himshakti" was published and circulated. Out of total expenditure on purchase of books, 70.19% of amount was spent on purchase of Hindi books.

28. AWARDS & ACHIEVEMENTS

During the year, your Company received commendation for its work in form of various Awards and Achievements as under:-

* The Unit-5 & Unit-2 of Company''s Rampur Hydro Electric Project of SJVN Limited were selected for the ''Gold Shield'' and ''Silver Shield'' respectively for the year 2013-14 by the Ministry of Power, Govt. of India in the category of "Early Completion of Hydro Power Projects".

* SJVN Limited has been honored with the "CBIP award of Best Performing Hydro Power Utility". SJVN has received this award for outstanding contribution to the Nation by setting New Bench Mark in Generation and Maintenance, excellence in engineering and use of latest State of Art Technologies and smart solutions for tackling major silt erosion problems.

* HelpAge India has awarded "Gold Plate Award" to SJVN Limited for its contribution in providing free medical care to the unprivileged sections of the society.

* Sh. R.N. Misra Chairman & Managing Director, SJVN Limited has been conferred with "Legend PSU Shining Award" for the year 2014.

29. PARTICULARS OF LOANS GIVEN, INVESTMENTS MADE GUARANTEES GIVEN AND SECURITIES PROVIDED

Particulars of loans given, investments made, guarantees given and securities provided along with the purpose for which the loan or guarantee or security is proposed to be utilized by the recipient are as under:-

Particulars Details

Loans given Refer Note 2.14 and 2.19 to standalone

financial statements

Investments made Refer Note 2.12 to standalone financial

statements

Guarantees given Nil

Securities provided Nil

30. GENERAL

Your Directors state that no disclosure or reporting is required in respect of the following items as there were no transactions on these items during the year under review:

1. The Company has not accepted any deposits during the year under review.

2. Issue of equity shares with differential rights as to dividend, voting or otherwise.

3. Neither the Managing Director nor the Whole-time Directors of the Company receive any remuneration or commission from any of its subsidiaries.

4. No significant or material orders were passed by the Regulators or Courts or Tribunals which impact the going concern status and Company''s operations in future.

5. There have been no Material Changes and Commitments subsequent to the Balance sheet.

6. There are no Companies which have become or ceased as subsidiaries, joint ventures or associate Companies during the Year.

7. The company has not made any buy back of shares during the year under review.

31. ACKNOWLEDGEMENT

The Board of Directors acknowledge with deep appreciation, the co-operation and guidance extended by various Ministries/Departments of the Government of India, particularly, Ministry of Power, Ministry of Finance, Ministry of External Affairs, Ministry of Environment & Forest, Central Electricity Authority, Central Water Commission, Geological Survey of India, the Government of Nepal, the Government of Bhutan, the Government of Himachal Pradesh, particularly, the Departments of Power, Finance and Forests, the Pollution Control Board, State Governments of Bihar, Uttarakhand, Arunachal Pradesh, Gujarat and Maharashtra, the State Electricity Boards and the World Bank. Your Directors also convey their gratitude to the shareholders, various international and Indian banks and financial institutions for the confidence reposed by them in the Company. The Board also acknowledges and appreciates the contribution made by Contractors, Vendors, Consultants and others for achieving the planned goals of the Company.

The Board also places on record its deep appreciation of valued cooperation extended by the Office of the Comptroller and Auditor General of India and the Auditors. Last but not least, the Board commends the hard work and dedicated efforts put in by the employees of the Corporation including the employees on deputation at all levels.

For and on behalf of Board of Directors

(Ramesh Narain Misra) Chairman and Managing Director DIN:03109225

Date: 30th July 2015 Place: New Delhi


Mar 31, 2014

Dear Members,

The Directors are pleased to present the Twenty Sixth Annual Report of the Company for the year ended March 31, 2014 along with the Audited Statement of Accounts, Report of Auditors and Comments of the Comptroller and Auditor General of India. The following financial highlights for the year ending 31st March 2014 briefly encapsulate the performance of your company.

1. FINANCIAL HIGHLIGHTS (Rs. In crore)

PARTICULARS 2013-14 2012-13

REVENUE

Revenue from Operations 1873.58 1682.10

Other Income 237.14 245.26

Total Revenue 2110.72 1927.36

EXPENSES

Employees'' Benefits Expense 123.75 109.54

Finance Costs 28.88 54.06

Depreciation and Amortization Expenses 474.52 446.67

Other Expenses 145.38 132.51

Total Expenses 772.53 742.78

Profit before exceptional items and Tax 1338.19 1184.58

Exceptional Items

Profit Before Tax 1338.19 1184.58

Tax Expenses:

- Current Tax 280.50 237.01

- Adjustment relating to earlier years --- (56.72) - Deferred Tax (56.94) (48.05)

Profit for the Year 1114.63 1052.34

2. GENERATION

Gross Energy Generation of NJHPS during the year was 7192.553 MUs achieved as against MoU target of 6825 MUs for excellent rating and 6777.777 MUs during the previous year. The Plant Availability Factor (NAPAF) during the year zoomed to an all-time high 105.75% against the MoU target of 92.0% and 104.262% in the previous year. The design energy for the NJHPS is 6612 MUs as approved by CEA.

Company''s maiden Wind Project - Khirvire Wind Energy Project, was also commissioned during the year and 3.32 MUs were generated from the Project up to 31.03.2014. Three units each of 68.67MW of Rampur HE Project have also been commissioned up to 31.03.2014.

3. DIVIDEND

The Company earned a net profit after tax of Rs. 1114.63 crore during the year as compared to Rs.1052.34 crore in the previous year. Your Directors have recommended a dividend of Rs.405.39 crore as against dividend of Rs.397.12 crore for the previous year. The dividend shall be paid after your approval. The declared dividend per equity share comes to Rs.0.98 (9.8%) as against Rs.0.96(9.6%) during the previous year.

4. PROJECTS UNDER EXECUTION

4.1 RAMPUR HYDRO ELECTRIC PROJECT (412 MW)

The Rampur project with a generation potential of 412 MW has been built on river Satluj, situated in Shimla and Kullu districts of

Himachal Pradesh in North India. The project is designed as a cascade tandem operating plant to Nathpa Jhakri Power Plant. The Annual Design Energy approved for Rampur HEP is 1878MU.

Major civil construction activities of Project are complete. The biggest challenge faced by Project in 2013 was restoration of collection gallery and heavy rock slide on TRT outfall exit channel. These two challenges were successfully met by completing collection gallery in Oct., 2013 and TRT outfall exit channel in March, 2014. The last activity of adit plugging of Head race Tunnel was completed on 22.02.2014 and tunnel filling was achieved on 14.03.2014.

The synchronization of first three units of Rampur H.E. Project viz Unit 1, 2 and 5 was achieved by 30.03.2014. The COD of these three units was declared on 13th May, 2014. The COD of fourth unit i.e. unit no. 4 has also been declared on 18th June 2014. The remaining two units are expected to be synchronized by end of August, 2014. Till 07.07.2014 the gross energy generated is 283.766 MU, which excludes 32.563 MU of infirm energy generated till then.

5. PROJECTS UNDER SURVEY AND INVESTIGATION

5.1 ARUN-3 PROJECT (900 MW)

SJVN Arun-3 Power Development Company Pvt, Ltd (SAPDC) has been established and registered on 25.04.2013 as a private limited company under the Nepalese Companies Act 2063 duly floated by single shareholder company SJVN Ltd with an aim to plan, promote, organize and execute the Arun-3 Hydroelectric Project. The corporate office of the SAPDC is located at Biratnagar-5. Morang, Nepal and project office is located at Khandbari, District Sankhuwasabha Nepal.

Memorandum of Understanding (MOU) was signed with the Govt. of Nepal (GoN) for the execution of 900 MW Arun - III Hydro-electric Project on 02.03.2008. This project is a run-of- river scheme located on Arun River in Sankhuwasabha District of Nepal, which is 657 km from Kathmandu via Biratnagar. Letter of intent issued on 23.05.2010 by GoN to SJVN to carry out infrastructure work at Dam & Power House site.

The survey and investigation works were completed in January 2011. The Project has been techno-economically appraised by CEA on 30.04.2014. The estimated cost of the projects at July2013 price level is Rs. 5668Crores.

The Survey license for DPR was issued by Government of Nepal. The application for Electricity Generation License has been filed to GoN on 14.07.2013.The draft EIA/EMP and draft R&R report has been submitted to IBN, GoN on 01.06.2014 for its approval. Project Development Agreement (PDA) is in advance stage of negotiation with Investment Board, GoN.

5.2 LUHRI PROJECT (601 MW)

The Luhri Hydro Electric Project (LHEP) with a generation potential of 601 MW (577 MW 24 MW Dam Toe P/H) is located on River Satluj, in Shimla/Kullu/Mandi districts of Himachal Pradesh. The project is designed as run of the river project. The project has the potential to generate 2203 132 million units of energy in a 90% dependable year. The estimated cost of the project at January, 2013 price level is Rs. 7137.02 Crore.

GOI accorded Stage-I approval on 27/02/2013 under Forest (Conservation) Act, 1980 for diversion of Forest land (271.15.77 ha). Acquisition of private land has been initiated. However, the same is to be dealt in accordance with the provision of the Right to Fair Compensation in Land Acquisition, Rehabilitation & Resettlement Act, 2013. The rules/procedures for the same are being framed by Govt. of Himachal Pradesh.

On recommendations of Expert Appraisal Committee (EAC), MoEF, Govt. of India had accorded Environment clearance to LHEP.

5.3 DHAULASIDH PROJECT (66 MW)

The Dhaulasidh Project with installed capacity of 66 MW is located on River Beas, in Hamirpur and Kangra districts of Himachal Pradesh. The Project is designed as a run of river project with a small live storage that would be utilized for peaking power during the lean season. The Dhaulasidh project holds potential of generating 247.25 million units of electric energy in a 90% dependable year. The estimated cost of Project is Rs. 613 Crore at April 2013 price level.

Techno-economic clearance for the project was accorded by Directorate of Energy, Govt. of HP for 66 MW. The environment clearance as well as Stage-I forest clearance has been accorded by MOEF, Govt. of India. The proposal for investment decision has been submitted to the Ministry, Govt. of India.

Acquisition of private land has been initiated. However, the same is to be dealt in accordance with the provisions of the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation & Resettlement Act, 2013. The rules/procedure for the same are being framed by Govt. of Himachal Pradesh.

5.4 UTTARAKHAND PROJECTS

Devasari HEP (252 MW)- A Run of River (RoR) scheme with installed capacity of 252 MW is located on River Pinder, in Chamoli District of Uttrakhand State. The project will generate 936.9 MU of energy in a 90% dependable year. The RoR scheme was cleared by Govt. of Uttrakhand in October, 2007 and by the Standing Technical Committee in April, 2012. DPR of the project has been concurred by the CEA in May, 2012. The estimated cost of the Project is Rs. 1790 crore at June 2012 price level.

The project has also been recommended for accord of environment clearance by the Expert Advisory Committee (EAC) of MoEF in its meeting held in December 2012. Proposal for diversion of forest land has been recommended by the State Government for approval by the MoEF whereas for private land, Notification under Section-IX of LA-Act, 1894 was issued and the process of record verification etc., completed. Further, action will be taken in accordance with provisions of Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation & Resettlement Act, 2013. The rules/procedures required for the same are being framed by Govt. of Uttrakhand. Other activities required for start of construction of the project like mining and explosive clearance etc., are in the advance stage. The tendering process for major civil works has been initiated and the process of pre-qualification of bidders has been completed. Subsequent to floods in Uttrakhand, the Supreme Court has imposed stay on environment and forest clearance.

Naitwar Mori HEP (60 MW) – The Naitwar Mori Project having proposed installed capacity of 60MW is located on River Tons, a major tributary of River Yamuna in Uttrakashi District of Uttrakhand. The project is designed as a run-of-river project and has the potential to generate 265.5million units of electricity in 90% dependable year. The estimated cost of the project at September 2012 price level is Rs.664.6 Crore and the estimated construction period is 4 years.

The DPR of the project has been approved for 60MW by Govt. of Uttrakhand. EAC has recommended the Project for Environment Clearance in its meeting held on 27.12.2011. Regarding forest land diversion, State Advisory Group (SAG) in its meeting held on 15.05.2013 has recommended the case for forest clearance. The CAT Plan of the project has been approved by GoUK. The Payment of Compensation to the owners of private land has been done in December, 2013. Subsequent to floods in Uttrakhand, the Supreme Court has imposed stay on environment and forest clearance.

Jakhol Sankri HEP (51 MW) – The Jakhol Sankri Project with proposed installed capacity of 51MW is located on River Supin, a tributary of River Tons in Uttrakashi District of Uttrakhand. The project is designed as a run-of-river project and has the potential to generate 216.26million units of electricity each year. The estimated cost of the project at March 2012 price level is Rs. 411.85 Crore and the estimated construction period is 4 years.

For assessment of geological features, drilling of 1115m has been done. Drift of 78m at Power House Site and 183.40m at Barrage site have also been completed. DPR has been submitted and is under examination with Government of Uttrakhand. State Board of Wild Life, Uttrakhand has recommended the proposal for Wild Life Clearance and the same has been forwarded by State Government to National Board of Wild Life, MoEF, Government of India in July, 2013 for further necessary action. Subsequent to floods in Uttrakhand, the Supreme Court has imposed stay on environment and forest clearance.

5.5 ARUNACHAL PRADESH HYDRO PROJECTS

Doimukh Hydro Electric Project (80 MW)

The draft MOA is submitted to Ministry of Power for obtaining NOC on 01/05/2013. The estimate for carrying out topographical survey of Doimukh HEP was sanctioned on 08/05/2014.

Ranga Nadi Stage -II HEP(60MW)

Matter regarding interference of FRL of Ranganadi Stage-II is being pursued with GoAP so as to allow SJVN to carry out the project upto a level of 327m along with other alternatives.

New Projects in Arunachal Pradesh

An expression of interest has been published by SJVN on 09/04/2014 for short listing of agencies for implementation of hydro power projects with installed capacity of 50MW and above in JV mode with SJVN in Arunachal Pradesh.

6. CONSULTANCY

6.1 PROJECTS IN BHUTAN

Kholangchu H.E. Project (600MW) - Kholangchu HEP with the installed capacity of 600 MW on the river Kholanghcu in Bhutan will annually generate 2568.88 MU of energy. The DPR of the project has already been appraised by CEA as well as Royal Govt. of

Bhutan (RGoB). The estimated cost of the Project is Rs.3860 Crore at June 2013 Price Level.

The project is to be implemented by the Joint Venture Company of SJVN and Druk Green Power Corporation (DGPC), Bhutan. Intergovernmental agreement has been signed between Govt. of India and Royal Govt. of Bhutan concerning development of Joint Venture Hydro Power Projects on 22/04/2014. The EIA/EMP reports as well as forest clearance proposals have already been submitted to Royal Government of Bhutan.

Wangchu H.E. Project (570 MW)- Wangchu HEP a run of river scheme with the installed capacity of 570 MW on the river Wangchu in Bhutan will annually generate 1968.55 MU of energy. After the appraisal of DPR of the project by CEA, the DPR has already been submitted to Royal Government of Bhutan (RGoB). The estimated cost of the Project is Rs. 4060 Crore at July 2013 Price level.

The project is to be implemented by the JV Company of SJVN and Druk Green Power Corporation (DGPC), Bhutan. Intergovernmental agreement has been signed between Govt. of India and Royal Govt. of Bhutan concerning development of Joint Venture Hydro Power Projects on 22/04/2014 for Wangchu HEP. The process for investment decision by Govt. of India for which the process has already been initiated. The EIA/EMP reports have already been submitted to RGoB. Public consultation meetings have been conducted. Forest Clearance proposal has also been submitted to Royal Government of Bhutan.

7. PROJECTS UNDER JOINT VENTURE

7.1 400KV D/C INDO-NEPAL CROSS-BORDER POWER TRANSMISSION COMPANY LTD.

Letter of award for construction of Transmission Line from Dhalkebar to Muzaffarpur @ Rs. 127.13 Crore was issued to M/s KEC International Ltd. by JV Company on 4th March, 2014.

SJVN has been appointed as consultant by CPTC to provide liaison and co-ordination services for obtaining various clearances/permits for an amount of Rs. 1.0941 Crore.

8. FURTHER DIVERSIFICATION

SJVN Limited envisions to develop itself into a "Fully Diversified Transnational Power Sector Company" in all types of conventional and non-conventional forms of energy and in this direction has ventured into Thermal, Solar and Wind Generation and Transmission Businesses.

8.1 THERMAL PROJECTS

Buxar Thermal Project (1320 MW)

SJVN has signed an MOU for setting up Green Field 1320 MW (2 x 660 MW) Supercritical Technology Thermal Power Project at Chausa village in Buxar district, Bihar in Jan.,2013.

Power Purchase Agreement (PPA) has already been signed between Bihar State Power Holding Company Limited (BSPHCL) and Project Executing Company i.e. Buxar Bijlee Company Private Limited for 85% share of power generation on bus bar rate.

SJVN has taken over the Project Executing Company i.e. Buxar Bijlee Company Private Limited on 04.07.2013 and paid all the liabilities due upto date. The name of Buxar Bijlee Company Private Limited has been changed to SJVN Thermal Private Limited on 17.10.2013.

Ministry of Coal, Govt. of India vide letter dated 6th September, 2013 has allocated Deocha Pachami coal block (2102 MT) located in Birbhum district of West Bengal to SJVN for Buxar Thermal Power Plant along with Six State Power Utilities. JV Agreement, MoA, AOA for JV formation have been prepared by WBPDCL and circulated to all allocatees for their comments.

The process of Land acquisition of 1067 acres is at advanced stage of possession as disbursement of payment is in progress.

Preliminary Stage of Pre-construction Activities viz. Updation of DPR of 1320 MW Buxar thermal Power Project & Pre-feasibility Report for Rail Infrastructure are in progress.

8.2 WIND PROJECTS

Khirvire Wind Power Project in Maharashtra (47.6 MW)

SJVN commenced Generation of energy from wind resource w.e.f. 20.01.2014 from its Khirvire Wind Power Project (56 units of 850kW each) in Ahmednagar district of Maharashtra. 56th unit of the Project was commissioned on 20.05.2014. With the commissioning of all 56 WEGs, the whole Project stands commissioned on 20.05.2014.

8.3 SOLAR PROJECTS

Charnaka Solar Energy Project

Approval for setting up a 5 MW Solar power project at Charnaka, Gujarat has been obtained from SJVN Board. Land has been allotted for the said project by M/s GPCL. Project is expected to be commissioned during FY 2014-15.

Sambhar Ultra Mega Solar Power Project

SJVN as a Joint Venture Partner with 16% equity sharing along with 6 other PSUs i.e. BHEL (Equity : 26%), SECI (Equity : 23%), Power Grid (Equity : 16%), HSL (Equity : 16%)& REIL (Equity : 3%) in the Joint Venture Company being formed for setting up of 4000 MW Ultra Mega Solar Power Projects at Sambhar, Rajasthan. The MoU for formation of the Joint Venture Company has been signed on 29.01.2014.

The first phase of 1000 MW will be executed through viability gap funding from National Clean Energy Fund (NCEF) and power will be sold @5.50 per kWh.

Project will be completed within 3 years. SJVN will carry out Designing of Layout, Civil Structures, Project Management Consultancy, Monitoring and Owner''s Engineering Supervision of Erection and Commissioning for the project

9. CURRENT PERFORMANCE

For the quarter ending 30thJune 2014, the power generated was 2160.788 MUs (previous year: 2329.757 MUs). The total Income from sale of power recorded was Rs.674.71 crore as against Rs.537.68 crore for the corresponding quarter of the previous year.

10. ENVIRONMENT

Your company has adopted an Environment Policy in 2006, in response to its commitment and concern for sustainable development. In support to this policy, all projects are being regularly reviewed from legal stipulation angle as well as internal procedure and have shown complete compliance to all conditions stipulated by the Government of India while granting Environment and Forest Clearances.

Your company''s Corporate Objectives also promote conservation and protection of environment as in ''striving clean and green project environment with minimal ecological and social disturbances''. Towards this end, your company has formulated a comprehensive Environment Management Plan to ameliorate any potential environmental impacts for sustenance of resources over a long term.

The Environment Management Plan (EMP) for NathpaJhakri Hydro Electric Project had been formulated for Rs. 35.85 Crores. Activities such as compensatory afforestation, muck disposal plan, fisheries sustenance, green belt development, etc. have been completed while CAT plan works are under implementation by State Forest Department, Govt. of H.P.

The Environment Management Plan (EMP) for Rampur Hydro Electric Project had been approved for Rs.45.52 Crores and mitigation measures at site are in various stages of implementation. Restoration of muck dumping sites and other muck utilisation areas in Rampur HE Project has been largely done using state of the art Geo-green erosion control blanket system which have been designed and evolved to provide an integrated solution for slope stabilization. Made from biodegradable coconut fibers and reinforced with high-density polyethylene threads, these blankets not only retain water for longer periods but gradually biodegrade naturally to fully blend with the soil conditions. The success achieved in Rampur Hydro Electric Project has prompted us to work toward improving this technique further while implementing it in other projects.

True to its commitment for self regulation and environment protection, your company has also established an Environment Laboratory at Jhakri on the standards laid down by Ministry of Environment & Forests, Govt. of India. The lab is first of its kind in the area and has the facility for conducting Water and Wastewater analysis, microbiological testing, ambient air quality monitoring, noise monitoring, oil and grease analysis, meteorological monitoring, soil/sludge/sediment, solid waste testing and metal analysis.

11. CSR AND SUSTAINABILITY

The CSR and Sustainability Plan for the financial year 2013-14 was implemented with a budget of Rs.13.68 Crore i.e 1.3 % of profit after tax (PAT) of the previous financial year 2012-13 .Following major CSR and sustainability works were carried out in the surrounding areas of SJVN''s Projects situated in the states of Himachal Pradesh, Uttrakhand, Bihar and Arunachal Pradesh:- 1. 30 specialised health camps were organized which included 10 camps in District Chamoli which is a backward district in Uttrakhand. 7,144 patients were benefited.

2. Free health services under the banner of Satluj Sanjeevani Sewa through additional 06 Mobile Medical Units(MMUs) including 02 MMUs for the backward District Chamoli, in Uttrakhand were started by engaging a specialised agency Help Age India. 42,712 treatments were provided to the local communities.

3. 529 local youth were imparted skill development training including 132 local youth of backward district, Chamoli.

4. 42 community assets were created including 05 in backward district Chamoli.

5. 5 children parks have been constructed in Shimla in association with Municipal Corporation, Shimla.

6. As a part of Sustainability measure, the work of laying "Sewerage Treatment System" for AwadiDeh area of village Jhakri under NJHPS has been awarded.

7. 150 meritorious students were awarded SJVN Silver Jubilee Scholarship consisting of HP- 85, UK - 25, Bihar - 25 and AP- 15.

8. Financial support of Rs. 2 Crore was provided to IAMD, to provide curative and therapeutic help to the patients of muscular dystrophy by constructing therapy centre in Solan (HP).

9. Financial support of Rs.4 Crore was provided to ABV Engineering college, Pragatinagar, H.P. for setting up of the institute.

10. 3 economically poor students were sponsored to Abhyanad Super 30, New Delhi for coaching for IIT/NIT Entrance examinations.

With a view to assess the impact and expected outcomes of CSR and Sustainability schemes, SJVN deployed an independent committee of experts. The committee report reveals that the CSR and Sustainability schemes have been successfully implemented in true spirits and in conformity to the annual targets.

The Construction Industry Development Council, New Delhi has adjudged the contribution of SJVN in CSR and Sustainability as excellent and has conferred "CIDC Vishwakarma Award–Achievement Award for Social Development and Impact".

12. REHABILITATION AND RESETTLEMENT

SJVN has implemented R&R Plans in NJHPS and RHEP incurring cumulative expenditure of Rs.13.60 Crore and Rs.26.80 Crore respectively. SJVN has also agreed to pay re-determined amount of land compensation to those left out interest holders under NJHPS who could neither approach the Hon''ble court for enhancement of compensation nor filed any application for re- determination. In compliance to the said commitment, the applications received from the left out interest holders are being examined. In RHEP crop compensation to the tune of Rs.2.84 Crore has been distributed among the local farmers making the cumulative compensation amount of Rs.7.03 Crore. Similarly blast damage compensation to the tune of Rs.1.27 Crore has been distributed among the local house dwellers making the cumulative compensation amount of Rs.5.11 Crore. Under the Local Area Development Authority ( LADA) works, SJVN has approved revised cost estimate of Rs.5.54 Crore for construction of Kunni Bridge near Rampur, out of which Rs. 64 Lakh have already been provided to HP PWD for acquiring land for construction of the bridge. Similarly SJVN has approved revised cost of Rs. 5.06 Crore for construction of Govt. Sr. Secondary School, Rampur. Rs.1.0 Crore was released to GOHP during the year making cumulative released amount of Rs. 3.0 Crore.

In Naitwar Mori Hydro Electric Project (Uttrakhand), 7.156 ha of private land falling in 3 villages comprising 104 land owners have been acquired at a compensation amount of Rs. 11.04 Crore.

13. RESEARCH AND DEVELOPMENT

In line with the DPE guidelines, SJVN has laid special attention on Research and Development for Process Improvement, Product

Development etc in its area of operation. Specific areas in which R&D has been carried out during 2013-14 in line with MoU signed with MoP are:

a) Study of Wind Power Potential and appropriate technology for setting up of Wind Power Project in SJVN project location through MNRE designated Institutes.

b) Analysis of bubble formation phenomenon in outfall structure of NJHPS for causes of occurrence, type of gas and its effect on the structure.

c) Study of erosion of non-removable components of turbine and its in-situ machining.

d) Study of installation of suitable monitoring/inspection equipment inside lined water conducting system to monitor the performance of lining without dewatering.

e) Study of performance of steel fibre reinforced shotcrete in desilting chamber of NJHPS.

f) Identification, testing and subsequent Field trial for Tungsten Carbide powders for HVOF hard coating.

g) Monitoring of Glacial lakes and Water Bodies in Satluj Catchment.

h) Continuation of study on High Strength and Self Compacting Concrete.

I) Study of efficacy of expansion system type accumulators to counter pulsations in secondary cooling water system of generating units in NJHPS.

All the projects have been successfully completed under the guidance of eminent professionals from various engineering fields and in collaboration with renowned Research Institutes like CWET, NCCBM etc.

Total expenditure on R&D projects completed during the FY 2013-14 was Rs.6.48 Crore.

14. HUMAN RESOURCES

Human Resource is valued as "Greatest Asset" of an organization. Today the term "Human Capital" has been coined by Nobel Prize winning Economist Gary S. Becker to reflect their true worth. The present day economy has been titled as "Knowledge Economy" and so talent occupies the centre stage in Indian work place. In view of this, managing and retaining talent figures on the critical path en-route to organizational sustainability and success. Powered by about 1800 brain heads, we have immense faith in the capabilities of our human resource and believe in unleashing their potential in all possible ways. We take pride in the fact that the attrition rate for financial year 2013-14 was 0.37%.

SJVN today practices a multi-pronged strategy to meet the aspirations of the ageing work force and "Gen Ys" who have stormed the work place. Leadership development, building competencies, multi-tasking and skill up gradation are meriting attention of the management. In the year ending March 2014, SJVN successfully accomplished the ambitious target of 2 days essential training to more than 90% of employees.

Our endeavor to achieve a performance driven culture is evidenced by the introduction of ''Robust Performance Management System'', to ensure holistic development of employees in addition to its inherent role as an assessment tool. Employee''s performance, so assessed, is duly recognized by payment of variable pay. For the year 2013-14, while the total expenditure on salary and wages was Rs.235.42 Crores, the amount paid as Variable Pay stood at Rs.13.32 Crores. Multi rater feedback or 360 degree feedback has also been put in place to identify competency gaps and draw development plans accordingly.

World over reward and recognition are today recognized as an effective tool to reinforce performance driven culture. Rewards like Employee of the year Award, CMD Award, Best Suggestion Award and Special Recognition /Incentive for Shram Awardees have been introduced to recognize good performance of the employees. Our company''s efforts towards human resource development have been appreciated in the form of many awards like ''14th Annual Greentech Environment Award'', ''IPE HR Leadership Award'', ''IPE CEO with HR Orientation'' ''6th Vishwakarma Awards'', and ''PSE Excellence Award'' etc.

We are committed to provide a safe, hygienic and humane workplace. Applauding our efforts in this direction, Rampur Hydro Electric Project has been awarded with Vishwakarma Award in the category of "Achievement Award for Construction, Health Safety & Environment".

At SJVN Employee Welfare initiatives focus on inclusive welfare of employees and addresses concerns like House Building, Children Higher Education, Health Care, Insurance and Routine Health Checkup etc. We are committed to take care of our valuable ''Human Capital'' not only while in service but also after the separation and have introduced many ambitious policies viz. Scheme for Rehabilitation of Family of Deceased Employee and Benevolent Fund Scheme, Medical Benefits and pension etc.

The total manpower (excluding deputationist) on the rolls of SJVN was 1579 as on 31st March, 2014 as against 1479 as on 31st March, 2013. The strength of HPSEB/HP Govt. employees on deputation on the above date was 290 as against 313 on 31st March 2013. As of 31st March, 2014 the employees from SC, ST and OBC was 332, 99 and 175 respectively as against 324, 92 and 143 respectively during the previous year.

Your company gives utmost importance for the enrichment of skills & towards this in-house and external training programmes are organized in all disciplines and at all levels. As a result, during the financial year 2013-14, 1737 employees were trained for 6284 man days.

15. INDUSTRIAL RELATIONS

Regular Meetings are held with the representatives of the various Associations/Unions to sort out the local issues as well as policy related matters. Recreational, Cultural and Sports functions on different occasions were also held, thus, resulting better employee- employer relations and cordial industrial relations during the year.

16. STATUTORY AND OTHER INFORMATIONS

The information required to be furnished as per the Companies Act 1956, Listing Agreements, Government Guidelines, and Code of Corporate Governance of your Company, on the following matters is placed at Annexure "A"

a) Management Discussion and Analysis.

b) Report on Corporate Governance.

c) Information on Conservation of Energy, Technology Absorption and Foreign Exchange earnings and out go.

d) Information as per Companies (Particulars of Employees) Rules 1975.

17. DIRECTORS RESPONSIBILITIES STATEMENT

Pursuant to the requirement under section 217(2AA) of the Companies (Amendment) Act, 2000 with respect to Directors Responsibility statement, the Directors confirm that in the preparation of the annual accounts for the year ended March 31, 2014:

- the applicable accounting standards had been followed along with proper explanation relating to material departures, if any;

- that the directors had selected such accounting policies and applied them consistently except as disclosed in the Notes on Accounts and made judgment and estimates that 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;

- that the directors had taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions of the Companies Act for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities; and

- that the directors had prepared the annual accounts on a going concern basis.

18. AUDITORS REPORT

M/s Soni Gulati & Co., Chartered Accountants, Shimla, were appointed by Comptroller & Auditor General as Statutory Auditors of the Company for the financial year 2013-14.

The Report of the Statutory Auditors to the Members on the Accounts for the year ended 31.03.2014 is placed at Annexure "B". Comments of the C&AG of India on the Accounts for the year ended 31.03.2014 are placed at Annexure "C".Comments of Statutory Auditors and C&AG being "NIL", the reply by the Management thereto is not applicable.

18.1 COST AUDIT

Pursuant to the Central Government directions to audit Cost Accounting Records as maintained by the Company, your Company appointed M/s Balwinder & Associates, Cost Accountants, as Cost Auditor for the year 2013-14 with the approval of Ministry of Corporate Affairs for the audit. The Cost Audit Report for the year 2012-13 was filed with MCA on 14th August 2013.

19. BOARD OF DIRECTORS

The Directors Report for the year 2013 contained changes in the Board level positions on account of appointments and cessations up to31st March 2013. Subsequently, the following changes in the Board have occurred:- Pursuant to the orders of Ministry of Power, Shri Mukesh Jain was appointed as Government of India Nominee Director in place of Shri G. Sai Prasad, with effect from 5th November 2013.

The Board welcomes the appointments and wishes to place on record its highest appreciation for the valuable contributions made by the outgoing Directors during their association with SJVN.

20. IMPLEMENTATION OF OFFICIAL LANGUAGE

In order to ensure the implementation of the Official Language Policy of the Govt. of India, all possible efforts have been made by the company to achieve the targets as specified by the Department of Official Language. Company has received awards in recognition for these efforts.

Under section 3.3(I) of Official Language Act cent percent documents were issued bilingually. All the letters received in Hindi were replied to in Hindi.

Company''s website is already in bilingual form and time to time it is updated.

To encourage executives and non-executives to do their entire work in Hindi a number of incentive schemes are under implementation namely 1) Payment of amount equivalent to one increment every month for doing whole office work in Hindi, 2) Honorarium for writing technical papers in Hindi, 3) Cash prize on passing Hindi typing examination and 4) Cash prize for Best write- up published in in-house Hindi journal "Himshakti". Under these schemes 367 executives and non-executives have received prizes amounting to Rs.4,43,460/- approximately.

Under the "Rajbhash Samman" Scheme of reward of Rs.25,000/- to each employee doing best work in Hindi in different Projects including Corporate Office and "Rajbhasha Uttkrishtta Samman" scheme of reward of Rs.30,000/- to the employee doing best work in Hindi at Corporate Level eleven employees were awarded this year.

To impart training to the executives and non-executives to do their day-to-day work in Hindi by organizing Hindi workshops/seminars is a continuous process in the company. 20 Hindi workshops/seminars have been organized and 300 no. of executives and non-executive have been trained. Similarly in regularly organized programmes like inter school poetry/debate/GK competitions, Shudh Hindi Shabd Lekhan, Shabdarth Gyan pratiyogita on important occasions like National days and various competitions organized during Hindi fortnight 266 participants were given cash prizes worth approx. Rs.2,24,400/-.

The Corporation has been awarded with "TOLIC RAJBHASHA SHIELD" (Second Prize) by Town Official Language Committee, Shimla for the year 2011-12 and "NTPC RAJBHASHA SHIELD" (Second Prize) by Ministry of Power, Govt. of India for the year 2012- 13, for its constructive efforts in the field of Official Language implementation.

To encourage effective implementation of Official Language Hindi amongst the Central Govt. Offices/PSU''s/Banks/Institutions situated at Shimla, SJVN had initiated "SJVN Rajbhasha Shield". During the year National Sample Survery Office, Ministry of Statistics & Programme Implementation, Field Operations Division & Ministry of Labour & Employment were given 1st & 2nd prizes respectively.

To give impetus to the multi-facet talent of employees an in-house bi-annual Hindi magazine "Himshakti" was published and circulated. Out of total expenditure on purchase of books, 86.89% of amount was spent on purchase of Hindi books.

To propagate Hindi amongst the students various Hindi competitions were organised at different schools/colleges located in the vicinity of Projects/Offices.

20. AWARDS & ACHIVEMENTS

During the year, your Company received numerous commendations for its work in form of various Awards and Achievements as under:- - The Nathpa Jhakri Hydro Power Station (6 x 250 MW) was evaluated for the ''Silver Shield'' for the year 2012-13 and the ''Bronze Shield'' for the year 2011-12 by the Central Electricity Authority in the category of "Performance of Hydro Power Stations".

- Your Company was also awarded the prestigious "PSE Excellence Award – 2013" in the category of CSR and Sustainability 16th December, 2013. Contribution of SJVN in the field of CSR has been distinguished and recognized for the major activities in the areas of health, education, skill development, community infrastructure and organising cultural programme and sports.

- The Company bagged the Construction Industry Development Council (CIDC) - Vishwakarma Achievement Award for "Social Development and Impact"

- Rampur Hydro Electric Project bagged Construction Industry Development Council (CIDC) - Vishwakarma Achievement Awards for Construction, Health, Safety and Environment

- The Company was awarded ISO 9001:2008 certification further for next three years. SJVN has been awarded this certification initially in the year 2005 for maintaining stringent Quality Requirements of Det Norkes Veritas.

- Chairman and Managing Director, SJVN Limited Mr. RP Singh was awarded News Ink Legend PSU for Best Environment Friendly and Director (Personnel) SJVN, Mr. N.L. Sharma was given Best Director (Personnel) award News Ink Legend PSU Shining awards, 2013 in Delhi on 31st January 2013.

The News Ink Legend PSU Shining awards aim to honour achievers playing vital role in Indian Economy and maintaining pace of Economic Growth of India. These awards are instituted by M/s. News Ink Media & Production (P) Limited to recognise and promote the excellence in the field of administration of Public Sector Undertakings.

21. ACKNOWLEDGEMENT

The Board of Directors acknowledges with deep appreciation, the co-operation and guidance extended by various Ministries/ Departments of the Government of India, particularly, Ministry of Power, Ministry of Finance, Ministry of External Affairs, Ministry of Environment & Forests, Central Electricity Authority, Central Water Commission, Geological Survey of India, the Government of Nepal, the Government of Bhutan, the Government of Himachal Pradesh, particularly, the Departments of Power, Finance and Forests, the Pollution Control Board, State Governments of Bihar, Uttarakhand, Arunachal Pradesh, Gujarat and Maharashtra, the State Electricity Boards and the World Bank.

Your Directors also convey their gratitude to the shareholders, various international and Indian banks and financial institutions for the confidence reposed by them in the Company. The Board also acknowledges and appreciates the contribution made by Contractors, Vendors, Consultants and others for achieving the planned goals of the Company.

The Board also places on record its deep appreciation of valued cooperation extended by the Office of the Comptroller and Auditor General of India and the Auditors. Last but not least, the Board commends the hard work and dedicated efforts put in by the employees of the Corporation including the employees on deputation at all levels.

For and on behalf of Board of Directors

(R.P. Singh) Chairman & Managing Director DIN: 01894041

Place : New Delhi Date : 28.07. 2014


Mar 31, 2013

Dear Members,

The Directors are pleased to present the Twenty Fifth Annual Report of the Company for the year ended March 31, 2013 along with the Audited Statement of Accounts, Report of Auditors and Comments of the Comptroller and Auditor General of India.

The following financial highlights for the year ending 31st March 2013 briefly encapsulates the performance of your company.

1. FINANCIAL HIGHLIGHTS (Rs.In crore)

PARTICULARS 2012-13 2011-12

REVENUE

Revenue from Operations 1682.10 1927.50

Other Income 234.52 209.29

Total Revenue 1916.62 2136.79

EXPENSES

Employees'' Benefits Expense 109.54 111.15

Finance Costs 54.06 83.65

Depreciation and Amortization Expenses 446.67 446.00

Other Expenses 121.77 137.37

Total Expenses 732.04 778.17

Profit before exceptional items and Tax 1184.58 1358.62

Exceptional Items - 12.73

Profit Before Tax 1184.58 1345.89

Tax Expenses :

- Current Tax 180.29 329.28

- Deferred Tax (48.05) (52.07)

Profit for the Year 1052.34 1068.68

Appropriations

Proposed Final Dividend 397.12 388.84

Tax on Final Dividend 67.49 63.08

Total Dividend Including Tax 464.61 451.92

2. GENERATION

Gross generation during the year was 6777.777 MUs achieved as against 7610.257 MUs during the previous year. The Normative Plant Availability Factor (NAPAF) during the year also peaked at 105.15% against the normative average of 82%,and 104.262% in previous year.. The design energy for the NJHPS is 6612 MUs as approved by CEA. The MOU target assigned by the Ministry of Power, Govt. of India for the Very Good Rating was 6800 MUs.

3. DIVIDEND

The Company earned a net profit after tax of 1052.34 crore during the year as compared to Rs. 1068.68 crore in the previous year. Your Directors have recommended a dividend of Rs. 397.12 crore as against dividend of 388.84 crore for the previous year. The dividend shall be paid after your approval. The declared dividend per equity share comes to Rs. 0.96 as against Rs. 0.94 during the previous year.

4. PROJECTS UNDER EXECUTION

4.1 RAMPUR HYDRO ELECTRIC PROJECT (412 MW)

The Rampur project with a generation potential of 412 MW is located on River Satluj, a major tributary of Indus basin, in Shimla and Kullu district of Himachal Pradesh in North India.The project is designed as a cascade tandem operating plant to NathpaJhakri plant. The Design Energy approved for Rampur HEP is 1770 million units of electricity per year.

The construction of Rampur HEP is nearing completion. Despite a few geological surprises encountered during construction, the HRT of 15177m has been fully excavated whereas its Overt Lining completion is 13809m (90%) and inverts Lining completion is 7713m (51%). Surge shaft Lining already stands completed since 31st August 2012. The erection of underground Pen Stock of 648m length is complete and out of 576m, surface Pen Stock Erection is 414m complete i.e. 71%. Structures of Butterfly Valve House, Power House and GIS Building are complete and erection of various Electro-Mechanical components viz. Generator Transformers, Pot Head Yard components, MIV''s, Bus-duct, cabling etc. is in progress. Out of six units, 4 Nos. units have already been boxed up and the remaining 2 nos. alongwith auxiliaries are in progress.

5. PROJECTS UNDER SURVEY AND INVESTIGATION

5.1 ARUN-III PROJECT (900 MW) WITH ASSOCIATED TRANSMISSION LINE

The project is a run-of-the-river scheme located on Arun River in Sankhuwasabha District of Nepal. The Survey and Investigation works were completed in January 2011 and the final DPR was submitted to CEA in March 2011.

Surveys, Geological Investigation and Soil investigation of the Project and associated Transmission Line Route have been completed. Further, Detailed Project Reports (DPRs) for both Generation Project and Transmission Line have been submitted to CEA and are in advanced stage of clearance.

Various parallel activities like Environmental Clearance, Forest Clearance / Licenses / Statutory requirements in Nepal are in progress. A wholly owned subsidiary company of SJVN namely "SJVn Arun-3 Power Development Company Pvt. Ltd." has been incorporated in Nepal on 25th April 2013 for implementation of the Project,.

Project Development Agreement (PDA) is in advanced stage of negotiation with Investment Board, Govt. of Nepal and is expected to be signed shortly. Project infrastructure activities will begin with the signing of PDA, followed by commencement of actual construction.

5.2 LUHRI PROJECT (588 MW)

The Luhri Project with a generation potential of 588 MW is located on River Satluj, a major tributary of Indus basin, in Shimla/Kullu/Mandi district of Himachal Pradesh in North India. The project is designed as a standalone run of the river project. The Luhri project has the potential to generate 2244 million units in a 90% dependable year. The estimated cost of the project at January, 2013 price level is 7137.02 crores.

DPR for the Project was submitted to CEA on 22nd March 2011. In the meantime Environmental Appraisal Committee has recommended increased amount of ecological flow. As such the Project capacity has been revised to 588 MW with a Power House of 24 MW in the toe of dam. The revised DPR for 588 MW capacity has been submitted to CEA on 14 th March 2013 and is under examination in CEA. 1st stage Forest clearance has been accorded to the Project. Environmental Appraisal Committee has recommended the Project for accord of Environmental Clearance. Formal Environmental clearance from MOEF is awaited.

5.3 DHAULASIDH PROJECT (66 MW)

The Dhaulasidh Project with a generation potential of 66 MW is located on River Beas, part of the Indus basin, in Hamirpur district of Himachal Pradesh in North India. The project is designed as a run of the river project with a small live storage that would be utilized for peaking power during the lean season. The Dhaulasidh project design holds potential of generating 247.25 million units of electric energy in a 90% dependable year. The estimated cost of the project at June, 2012 price levels is 774.19 crores including IDC. Construction period of the project is 54 months.

Techno-economic clearance has been accorded by Directorate of Energy, GOHP for 66 MW. Investment proposal has been submitted to MoP, Govt. of India for approval. Environment clearance has been accorded by MOEF but the matter was referred back to rectify the discrepancies in the clearance. Stage-II of Forest clearance shall be processed after obtaining revised environment clearance.

The case for fixation of rate for acquisition of private land in Distt. Hamirpur under consideration of GoHP. As regards acquisition of private land in Distt. Kangra, notification under section 6&7 has been issued by GoHP and the process of demarcation u/s 8 and "claim notice service" u/s 9 of LA Act 1894 is going on in these villages.

5.4 UTTARAKHAND PROJECTS

Devasari HEP (252 MW) - A standalone Run-of-River (RoR) scheme with a generation potential of 252 MW is located on River Pinder, in Chamoli district of Uttarakhand state in North India. The Devasari project has the potential to generate 936.90 million units of electricity each year and the estimated cost of the project at June, 2012 price levels is Rs. 1790.09 crore. The execution period of project is 5 years.

The TEC of the Devasari HEP for 252 MW was accorded by CEA during August, 2012. The Environment Appraisal Committee of MOEF had recommended the Environmental Clearance for the Project in December, 2011 and formal letter from MOEF, Govt. of India is awaited. Forest clearance of the Project is yet to be accorded by Govt. of India. The process for acquisition of private land is complete. Mining and Explosive clearance of the Project are in advance stage of approval. The process of pre-qualification of bidders for major civil works has been completed and the tendering process for infrastructure works is in progress.

Naitwar Mori HEP (60 MW) - The Naitwar Mori Project with a generation potential of 60 MW is located on River Tons, a major tributary of River Yamuna in Uttarkashi district of Uttarakhand state in North India. The project is designed as a standalone run of the river project and has the potential to generate 265.5 million units of electricity each year. The estimated cost of the project at September 2012 price levels is Rs. 664.6 Crore and estimated construction period is 4 years.

The DPR of the project has been approved for 60 MW by Govt. of Uttarakhand. EAC has recommended the Project for Environment Clearance in its meeting held on 27.12.2011. Regarding forest land diversion, State Advisory Group (SAG) in its meeting held on 15.03.2013 has recommended the case for forest clearance. The CAT Plan of the project has been approved by GoUK on 10.12.2012. For acquisition of private land, the cost of private land has been paid by SJVN to GoUK and payment to some of the land owners has also been made by LAO. Jakhol Sankri HEP (51 MW) -The Jakhol Sankri Project with a generation potential of 51 MW is located on River Supin, a tributary of River Tons in Uttarkashi district of Uttarakhand state in North India. The project is designed as a standalone run-of- river project and has the potential to generate 216.26 million units of electricity each year. The estimated cost of the project at March 2012 price levels is 411.85 Crore and the estimated construction period is 4 years.

Drilling of 1115m has been done. Drift of 78m at Power House Site and 183.40m at Barrage site have also been completed. DPR has been submitted to Uttarakhand Govt. on 29.12.2011 for TEC and is being examined by Urja Cell of Govt. of Uttarakhand. State Board for life in its meeting held on 16.03.2013 has recommended the project for clearance by NBWL.

5.5 ARUNACHAL PRADESH HYDRO PROJECTS

Doimukh Hydro Electric Project (80 MW) - SJVN has carried out Survey & Investigation work for preparation of Pre-Feasibility Report 80 MW Doimukh HEP in the state of Arunachal Pradesh and submitted to CEA, Government of India. Govt. of Arunachal Pradesh has accorded its in principle approval for allotment of 80 MW Doimukh HE Project to SJVN for execution on BOOT basis, for which Memorandum of Agreement shall be signed shortly.

In addition, SJVN has identified two Hydro-Electric Power Projects in Sei basin namely 70 MW Lebri Laigi HEP & 30 MW Rumte HEP and has submitted their PFRs to Govt. of Arunachal Pradesh during Feb, 2013.

6. CONSULTANCY

6.1 PROJECTS IN BHUTAN

Kholangchu H.E. Project (600MW) - Kholongchu HEP with the installed capacity of 600 MW on the river Kholongchu in Bhutan will annually generate 2568.88 MU of energy.

The DPR was submitted to CEA for vetting in March 2011, which has been approved in principle by CEA on 05.11.2012. Royal Govt. of Bhutan (RGoB) approved DPR on 23.05.2013.

As regards Forest Clearance, Joint public meeting was held on 25th October 2012 with affected communities / villagers and their consent has been obtained. Chief Forest Officer, Trashigang issued NOC on 13.11.2012 and forest Deptt. is in process of issuing Forest Clearance.

It is expected that this project will be implemented by a joint venture company comprising of SJVn and DGPC, Bhutan.

Wangchu H.E. Project (570 MW) - Wangchu HEP with the revised installed capacity of 570 MW as a run of river scheme on the river Wangchu in Bhutan will annually generate 1968.55 MU of energy.

DPR was submitted to CEA/MOE (RGoB) on dated 30.12.2011 and the same is under examination in CEA. The EIA/ EMP report has been submitted to RGoB on 29.06.2012. Public consultation Meeting was conducted on 31.10.2012.Application for Forest Clearance has been submitted to Chief Forest Officer, Gedu on 17.01.2013.

It is expected that this project will be implemented by a Joint Venture company comprising of SJVN and DGPC, Bhutan.

7. PROJECTS UNDER JOINT VENTURE

7.1 TIPAIMUKH H.E. PROJECT (1500 MW), MANIPUR

SJVN''s Equity portion in the project has been taken over by NEEPCO.

7.2 400KV D/C INDO-NEPAL CROSS-BORDER POWER TRANSMISSION COMPANY LTD.

SJVN has been awarded work for Consultancy services to provide liaison and co-ordination services for an amount of 110 lacs from M/s CPTC.

Equity of 492 lacs has been injected in Cross Border Power Transmission Company Limited (CPTC). Bids have been invited for execution of Power Transmission line during March, 2013 and are under evaluation. Loan arrangement (20:80) has been tied-up from PFC.

8. FURTHER DIVERSIFICATION

SJVN Limited envisions to develop itself into a "Fully Diversified Transnational Power Sector Company" in all types of conventional and non-conventional forms of energy and in this direction has ventured into Thermal, Solar and Wind Generation and Transmission Businesses. Following projects have been added to our portfolio during the previous year:-

8.1 THERMAL PROJECTS

Buxar Thermal Project (1320 MW)

The Shareholders of the Company approved the alteration of Object Clause of the Memorandum of Association by removal of the word "except thermal" from Clause 1(a) of the Main Objects clause through postal ballot dated 28th November 2012 thus removing the restriction on the Company to enter into thermal power generation.

In accordance with the mandate from the Shareholders the CMD signed a MOU with Bihar Government on 17th January 2013 for setting up Green Field 1320 MW (2 x 660 MW) Super critical Technology Thermal Power Project at Chausa village in Buxardistrict. As per the MOU, the project is to be acquired by acquisition of SPV Company - Buxar Bijlee Company Private Limited (BBCPl) and accordingly, the SPV Company was taken over by SJVN on 04 th July, 2013 .

Power Purchase Agreement (PPA) has already been signed with Bihar State Power Holding Company Limited (BSPHCL) which is holding company of BBCPL, for 85% share of power generation on bus bar rate. Vide Ministry of Coal communication dated 3rd July 2013, SJVN has been allocated 486 MT of Coal reserves in the 2102 MT Deocha- Pachami Coal Block located in West Bengal for the Buxar Thermal Project. In addition the possibility of sourcing of coal through import is also being explored. Cabinet approval for diversion of 11.27 acres of Govt. land has been obtained from Govt. of Bihar. Land acquisition for 1070 acres of Private land is under process.

8.2 WIND PROJECTS

Khirvire Wind Power Project in Maharashtra (47.6 MW)

SJVN has ventured into wind energy power generation, and is setting up a 47.6 MW (56 No. X 850 KVA) Khirvire Wind Power Project at Khirvire & Kombhalne villages in Ahmednagar district of Maharashtra. The project will have an Annual Energy Generation of 85.85 MU at a present Feed in Tarrif of Rs. 5.81 per KWh.

Letter of Award (LoA) for the Khirvire Wind Power Project was issued to M/sGamesha Wind Turbines Pvt. Limited, Chennai on 19.10.2012. The Contract Agreement for the project has been signed on 14.12.2012.

The project will also have a 132KV Transmission Line from Akole Grid Sub-station to Wind Farm Pooling station. The Grid/Infrastructure approval in respect of power evacuation from Maharashtra State Electricity Transmission Corporation Limited (MSETCL) has been obtained and approval of drawings and estimates for construction of Transmission line network, for evacuation of power for the KWPP is being obtained from MSETCL.

The erection activities of Wind energy generation (WEG) is at its peak and project will be commissioned during the year 2013 and will annually generate around 85 MU.

8.3 SOLAR PROJECTS

SJVN is also venturing into Solar Energy and intends to establish a 5 MW Solar Photovoltaic Plant in Gujarat. The land allocation for the project at Charanka Solar Park in Gujarat has been done.

The 5 MW solar power project is expected to annually generate around 8 MU and the project will be registered under Renewable Energy Certificate (REC) mode.

9. CURRENT PERFORMANCE 2013-14

For the quarter ending 30thJune 2013, the power generated was 2329.757MUs (previous year: 2091.515 MUs). The total Income from sale of power recorded was Rs. 537.68 crore as against Rs. 504.10 crore for the corresponding quarter of the previous year.

10. ENVIRONMENT

Your company has adopted an Environment Policy in 2006, in response to its commitment and concern for sustainable development. In support to this policy, all projects are being regularly reviewed from legal stipulation angle as well as internal procedure and have shown complete compliance to all conditions stipulated by the Government of India while granting Environment and Forest Clearances.

Company''s Corporate Objective also promotes conservation and protection of environment as in ''striving clean and green project environment with minimal ecological and social disturbances''. Towards this end, your company has formulated a comprehensive Environment Management Plan to ameliorate any potential environmental impacts for sustenance of resources over a long term. The Environment Management Plan (EMP) for NJHEP had been formulated for Rs. 35.85 Crore out of which Rs. 29.34 Crore has been spent so far. Activities such as compensatory afforestation, muck disposal plan, fisheries sustenance, green belt development, environment monitoring etc. have been completed while CAT plan works are under implementation by State Forest Department.

The Environment Management Plan (EMP) for RHEP has been approved for Rs. 45.52 Crore out of which Rs. 30.62 Crore have been spent on various ongoing measures such as compensatory afforestation, fisheries development, CAT plan, public awareness programmes, environmental monitoring, establishing emergency communication systems, etc and another Rs. 17.76 Crore has been spent on protection of muck dumping sites. These dumping sites are being restored by using state of the art Geo-green erosion control blanket system which have been designed and evolved to provide an integrated solution for slope stabilization. Made from bio-degradable coconut fibers and reinforced with high-density polyethylene threads, these blankets not only retain water for longer periods but gradually biodegrade naturally to fully blend with the soil conditions. The success achieved in RHEP has prompted us to replicate this technique in all our other projects.

True to its commitment for self-regulation and environment protection, your company has also established an Environment Laboratory at Jhakri on the standards laid down by Ministry of Environment & Forests, Govt. of India. The lab is first of its kind in the area and has the facility for conducting Water and Wastewater analysis, microbiological testing, ambient air quality monitoring, noise monitoring, oil and grease analysis, meteorological monitoring, soil/sludge/sediment, solid waste testing and metal analysis.

11. SUSTAINABLE DEVELOPMENT

SJVN developed the Sustainable Development (SD) Policy in line with Department of Public Enterprises (DPE) guidelines with a purpose to ensure that the three pillars of Sustainable Development, viz, Social, Economic and Environment are adequately taken care of while developing a project.

In the year 2012-13, SJVN earmarked 583.43 Lakhs for SD activities. SJVN formulated a Board level designated Sub Committee namely CSR, SD & R&D Committee with an Independent Director as the Chairman of the Committee to monitor performance of CSR, SD & R&D activities. During FY 2012-13 three meeting were held to monitor the performance of CSR & SD activities and it was decided that as SD has been integrated into CSR function in revised guidelines on CSR and Sustainability, as such SD activities and SD budget will be merged with CSR activities and CSR budget respectively from 2013-14 onwards.

In FY 2012-13, SJVN has carried out the following Sustainable Development activities:-

1. Sewerage Treatment Plants

2. Rain Water Harvesting

3. Land Rehabilitation at RHEP

4. Training in CDM / SD

5. Energy Efficiency- installation of solar lights in SJVN''s guest houses.

6. Drinking water supply schemes / restoration of dried- up water sources

7. Afforestation / Plantation / Horticulture / Agriculture Development etc.

12. REHABILITATION AND RESETTLEMENT

SJVN has implemented R&R Plans in NJHPS, RHEP incurring cumulative expenditure of Rs. 13.60 Crore and Rs. 26.80 Crore respectively. SJVN has adequately compensated all the 2596 land owners under the provisions of Land Acquisition Act whose land was acquired for execution of NJHPS. Due to the intervention of Government of Himachal Pradesh to settle the land compensation cases under Section 28-A of Land Acquisition Act pending with Land Acquisition Collector, NJHPS Jhakri, an out of Court settlement dated 26.04.2007 was entered into among Government of Himachal Pradesh, SJVN and the interest holders and the re-determined compensation in respect of 245 cases amounting to 12 crore approximately was deposited with LAC NJHPS Jhakri for onward disbursement to the concerned interest holders. Not only this, SJVN has also agreed to pay re-determined amount of compensation even to those interest holders who could neither approach the Hon''ble court for enhancement of compensation nor filed any application for re-determination.In compliance to the said commitment by SJVN, a requisite notification to invite applications from such category of left out interest holders has already been published and after due verification and process required for the purpose, the case for payment of compensation is under consideration. In RHEP 37 landless families were already provided rehabilitation package ranging from Rs. 45,000/- to Rs. 65,000/- depending upon the quantum of land acquired. In addition to these 20 landless families have been identified this year who have also been provided rehabilitation package as per their entitlement.

13. CORPORATE SOCIAL RESPONSIBILITY

The Corporate Social Responsibility Plan for the financial year 2012-13 was implemented with an outlay of Rs. 16.03 Cr. which is 1.5 percent of profit after tax (PAT) of the previous financial year 2011-12. The annual CSR programs were evolved on the basis of baseline survey conducted by an independent external agency, Agro Economic Research Centre, HP University (HP) and are governed through SJVN Foundation. In this financial year, SJVn has launched its flagship CSR programme " SJVN Silver Jubilee Merit Scholarship Scheme" under which 147 meritorious students of 12th standard from Himachal Pradesh and Uttrakhand states were awarded Rs. 2,000 pm each for pursuing higher studies.

As a drive towards skill development of local youth, the Foundation sponsored 60 candidates from Project Affected Areas for various vocational courses in Govt. ITIs. Latest farming techniques to 550 farmers were imparted through various specialized agencies. Under the ITI Adoption Scheme of Govt. of India, the Foundation extended financial assistance of Rs. 1 Cr. each to ITI Berthin and ITI Bangana in H.P. As a support to upgrade technical education in the State, the Foundation contributed 5 Cr. to ABV Govt. Engineering College, Pragatinagar. In the field of health care, the Foundation catered to the prime requirement of people inflicted with muscular dystrophy by providing nine powered wheel chairs. Free medical care to 11,500 local population through mobile health vans (MHV) was extended. An innovative programme of "Silver Jubilee Women and Child Development Scheme" was launched under which financial assistance of Rs. 10,000/- each to 10 BPL women was provided for pre and post natal care.

As a measure towards clean environment, garbage disposal containers were installed in 9 villages of NJHPS and RHEP. Giving thrust to participatory approach, Village Development Advisory Committees (VDACs) have been constituted and MOUs executed for construction of community assets in the local villages. 25 community assets like construction of school rooms, play grounds, fencing of play grounds, water fountain in Community Park, shopping complex near Panchayat Bhavan, steel benches at public places etc. have been created in the local area in collaboration with VDACs. The infrastructural works carried out through participatory approach have created employment of 21,500 man days for local people.

As a part of beautification of Shimla, SJVN has signed MOU with Municipal Corporation, Shimla for construction of 6 parks and street scaping of 2 sites at an estimated cost of Rs. 3.35 Cr. spread over three years.

The CSR implementation of SJVN for the FY 2012-13 has been evaluated by "External Committee of Experts" as per which the Annual CSR Plan has been implemented in conformity with the targets set under MOU 2012-13.

The contribution of SJVN Foundation in CSR area has been adjudged outstanding by civic bodies and forums which are evident from the accolades conferred on SJVN like Achievement Award for Social Development and Impact - 2013 by Construction Industry Development Council (CIDC), Institute of Public Enterprises (IPE) Subir Raha CSR award 2012, Most Caring Companies Award by World CSR Congress, Greentech CSR Appreciation Certificate - 2012, Africa CSR Award.

14. RESEARCH AND DEVELOPMENT

In line with the DPE Guidelines your company has laid special attention in Research and Development for Process Improvement, Product Development etc in its area of operation. Specific areas in which R&D has been carried out during 2012-13 in line with MoU signed with MoP are:-

a) Study and implementation of energy efficiency conformance measures for Power House (NJHPS) underground complex

b) Development of high strength concrete with reference to SJVN''s projects.

c) Performance of different types of rock bolts in different kinds of rock strata for standardization.

d) Study of self compacting concrete

e) Use of synthetic fibres in shotcrete

f) Study to improve quality of survey & investigation for DPR preparation.

All the projects have been successfully completed under the guidance of eminent professionals from various engineering fields and in collaboration with renowned Institutes like IIT.

Total expenditure on R&D projects completed during the FY 2012-13 was Rs. 5. 94 Crore.

15. HUMAN RESOURCES

Human Resource is valued as "Greatest Assets" of an organization. Today the term "Human Capital" has been coined by Nobel Prize winning Economist Gary S. Becker to reflect their true worth. The present day economy has been titled as "Knowledge Economy" and so talent occupies the center stage in Indian work place. In view of this, managing and retaining talent figures on the critical path en-route to organizational sustainability and success. Powered by about 1800 brain heads, we have immense faith in the capabilities of our human resources and believe in unleashing their potential in all possible ways. We take pride in the fact that the attrition rate for financial year 2012- 13 was 0.39%.

SJVN today practices a multi-pronged strategy to meet the aspirations of the ageing work force and "Gen Ys" who have stormed the work place. Leadership development, building competencies, multi-tasking and skill up gradation are meriting attention of the management. In the year ending March 2013, SJVN successfully accomplished the ambitious target of 2 days training to more than 90% of employees.

Our endeavor to achieve a performance driven culture is evidenced by the introduction of ''Robust Performance Management System'', to ensure hostile development of employees in addition to its inherent role as an assessment tool. Employees performance, so assessed, is duly recognized by payment of variable pay. For the year 2012-13, while the total expenditure on salary and wages was Rs. 220.23 Crore, the amount paid as Variable Pay stood at 22.44 Crore. Multi rater feedback or 360 degree feedback has also been put to identify competency gaps and draw development plans accordingly.

World over reward and recognition are today recognized as an effective tool to reinforce performance driven culture. Rewards like Employee of the year Award, CMD Award, Best Suggestion Award and Special Recognition/Incentive for Shram Awardees have been introduced to recognize good performance of the employees. Our company''s efforts towards human resource development have been appreciated in the form of many awards like ''Gold Shield for meritorious performance by Ministry of Power'', ''IPEHR Leadership Award'' and ''Indian Human Capital Award'' etc.

We are committed to provide a safe, hygienic and humane workplace. Applauding our efforts in this direction, Rampur Hydro Electric Project has been awarded with Vishwakarma Award in the category of "Achievement Award for Construction, Health Safety & Environment".

At SJVN Employee Welfare initiative focus on inclusive welfare of employees and addresses concerns like House Building, Children Higher Education, Health Care Insurance and Routine Health Check-up etc.. We are committed to take care of our valuable ''Human Capital'' not only while in service but also after the separation and have introduced many ambitious policies viz Scheme for Rehabilitation of Family of Deceased Employee and Benevolent Fund Scheme, Medical Benefits and pension etc.

The total manpower (excluding deputationists) on the rolls of SJVN was 1479 as on 31st March 2013 as against 1184 as on 31st March 2012. The strength of HPSEB/HP Govt. employees on deputation on the above date was 313 as against 638 on 31st March 2012. As of 31st March 2013 the employees from SC, ST and OBC was 324, 92 and 143 respectively as against 253,70 and 134 during the previous year.

Your company gives utmost importance for the enrichment of skills and towards this in-house and external training programmes are organized in all disciplines and all levels. As a result, during the financial year 2012-13, 1688 employees were trained for 5922 man days.

15.1 INDUSTRIAL RELATIONS

Regular Meetings are held with the representatives of the various Associations/Unions to sort out the local issues as well as policy related matters. Recreational, Cultural and Sports functions on different occasions were also held, thus, resulting better employee-employer relations and cordial industrial relations during the year.

16. STATUTORY AND OTHER INFORMATION

The information required to be furnished as per the Companies Act 1956, Listing Agreements, Government Guidelines, and, Code of Corporate Governance of your Company, on the following matters is placed at Annexure "A"

a) Management Discussion and Analysis.

b) Report on Corporate Governance.

c) Information on Conservation of Energy, technology Absorption and Foreign Exchange earnings and out go.

d) Information as per Companies (Particulars of Employees) Rules 1975.

17. DIRECTORS'' RESPONSIBILITIES STATEMENT

The Directors'' confirm that in the preparation of the annual accounts for the year ended March 31, 2013:

- the applicable accounting standards had been followed along with proper explanation relating to material departures, if any;

- that the directors had selected such accounting policies and applied them consistently except as disclosed in the Notes on Accounts and made judgment and estimates that 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;

- that the directors had taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions of the Companies Act for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities; and

- that the directors had prepared the annual accounts on a going concern basis.

18. AUDITORS REPORT

M/s Hingorani M & Co., Chartered Accountants, New Delhi, was appointed by Comptroller & Auditor General as Statutory Auditors of the Company for the financial year 2012-13.

The Report of the Statutory Auditors to the Members on the Accounts for the year ended 31.03.2013 is placed at Annexure "B". Comments of the C&Ag of India on the Accounts for the year ended 31.03.2013 are placed at Annexure "C". Comments of Statutory Auditors and C&AG being "NIL", the reply by the Management thereto is not applicable.

18.1 COST AUDIT

Pursuant to the Central Government directions to audit Cost Accounting Records as maintained by the Company, your Company appointed M/s Balwinder & Associates, Cost Accountants, as Cost Auditor for the year 2012-13 with the approval of Ministry of Corporate Affairs for the audit. The Cost Audit Report for the year 2011-12 was filed with MCA on 21st December 2012.

19. BOARD OF DIRECTORS

The Directors Report for the year 2013 contained changes in the Board level positions on account of appointments and cessations up to July 2013. Subsequently, the following changes in the Board have occurred:-

Pursuant to the orders of Ministry of Power, Shri R.K. Bansal, was appointed as Director (Electrical) w.e.f. 30th October, 2012.

Pursuant to the orders of Ministry of Power, Shri S.K.B.S. Negi was appointed as Government of H.P. Nominee Director in place of Shri Deepak Sanan, with effect from 24thJanuary 2013.

Ms. Bharti Prasad and Sh. Ravi Dhingra ceased as Independent Directors from the Board of SJVN with effect from 28th March 2013.

The Board welcomes the appointments and wishes to place on record its highest appreciation for the valuable contributions made by the outgoing Directors during their association with SJVN.

20. IMPLEMENTATION OF OFFICIAL LANGUAGE

In order to ensure the implementation of the Official Language Policy of the Govt. of India, all possible efforts have been made by the company to achieve the targets as specified by the Department of Official Language. Company has received awards in recognition for these efforts.

Under section 3.3(i) of Official Language Act cent percent documents were issued bilingually. All the letters received in Hindi were replied to in Hindi.

Company''s website is already in bilingual form and time to time it is updated. Out of total expenditure on purchase of books, 64.4% of amount was spent on purchase of Hindi books.

The Corporation has been awarded with "Tolic Rajbhasha Shield" (Second Prize) by Town Official Language Committee, Shimla for the year 2011-12 and "NTPC Rajbhasha Shield" (Second Prize) by Ministry of Power, Govt. of India for the year 2012-13, for the best performance in the field of Official Language implementation.

To encourage executives and non-executives to do their entire work in Hindi a number of incentive schemes are under implementation. Under these schemes 455 executives and non-executives have received prizes amounting to Rs. 8,15,700/- approximately.

To impart training to the executives and non-executives to do their day-to-day work in Hindi by organising Hindi workshops/seminars is a continuous process in the company. 10 Hindi workshops/seminars have been organised and 245 no. of executives and non-executive have been trained. Organising of Hindi quiz competitions on national/important occasions is a regular feature and besides this a number of competitions were also organised during "Hindi fortnight" in which 593 no. of executives and non-executives were awarded cash prizes amounting to Rs. 4,89,500/-.

To encourage effective implementation of Official Language Hindi amongst the Central Govt. Offices/PSU''s/Banks/Institutions situated at Shimla, SJVN had initiated "SJVN Rajbhasha Shield".

21. AWARDS & ACHIVEMENTS

Your Company won the Commendation Certificate of "SCOPE Award for Excellence and Outstanding Contribution to the Public Sector Management - Institutional Category-II (Miniratna-I & II PSEs)" 2010-11.

For its Meritorious CSR activities, your company was awarded the prestigious ''Vishwakarma Awards'' by Construction Industry Development Council (CIDC), a body established by the Planning Commission (Govt. of India) and Construction Industry. The Company also bagged the award for Social Development & Impact while its Rampur Hydro Electric Project bagged achievement award for Construction Health, Safety and Environment.

22. ACKNOWLEDGEMENT

The Board of Directors acknowledges with deep appreciation, the co- operation and guidance extended by various Ministries/Departments of the Government of India, particularly, Ministry of Power, Ministry of Finance, Ministry of External Affairs, MOEF, Central Electricity Authority, Central Water Commission, Geological Survey of India, the Government of Nepal, the Government of Bhutan, the Government of Himachal Pradesh, particularly, the Departments of Power, Finance and Forests, the Pollution Control Board, State Governments of Bihar, Uttarakhand, Arunachal Pradesh and Maharashtra, the State Electricity Boards and the World Bank.

Your Directors also convey their gratitude to the shareholders, various international and Indian banks and financial institutions for the confidence reposed by them in the Company. The Board also acknowledges and appreciates the contribution made by Contractors, Vendors, Consultants and others for achieving the planned goals of the Company.

The Board also places on record its deep appreciation of valued cooperation extended by the Office of the Comptroller and Auditor General of India and the Auditors. Last but not least, the Board commends the hard work and dedicated efforts put in by the employees of the Corporation including the employees on deputation at all levels.

For and on behalf of Board of Directors

(R.P.Singh)

CHAIRMAN AND MANAGING DIRECTOR

Place: New Delhi

Date: 30th July, 2013


Mar 31, 2012

The Directors are pleased to present the Twenty- Fourth Annual Report of the Company for the year ended March 31, 2013 along with the Audited Statement of Accounts, Report of Auditors and Comments of the Comptroller and Auditor General of India. The fallowing financial highlights for the year ending 31st March 2012 briefly capitulates the performance of your company.

1. FINANCIAL HIGHLIGHTS

(Rs. in Crore)

PARTICULARS 2011-12 2010-11

REVENUE Revenue from Operations 1927.50 1829.74

Other Income 209.29 149.42

Total Revenue 2136.79 1979.16

EXPENSES

Employees' Benefits Expense 111.15 84.72

Finance Costs 83.65 132.82

Depreciation and Amortization Expenses 446.00 450.56

Other Expenses 137.37 154.87

Total Expenses 778.17 622.97

Profit before exceptional items and Tax 1358.62 1156.19

Exceptional items 12.73 -

Profit Before Tax 1345.89 1156.19 Tax Expenses

- Current Tax 329.28 294.09

- Deferred Tax (52.07) (50.03)

Profit for the Year 1068.68 912.13 Appropriations

Proposed Final Dividend 388.84 330.93

Tax on Final Dividend 63.08 53.69

Total Dividend Including Tax 451.92 384.62

2. GENERATION

During the year ending 31st March 2013, 7610.26 MUs of power was generated as compared to the previous year's generation of 7140.205 MUs, The design energy for the NJHPS is 6612 MUs as approved by CEA. Normative Plant Availability Factor (NAPAF) was 82% as approved by CERC and actual Plant availability factor was 104.262% against 98.319% in previous year. Annual machine maintenance time has been brought dawn to 6.74 days against 8.43 days of previous year. By efficient planning, operation and maintenance, company earned an incentive of Rs. 295.87 crore against Rs. 216.02 crore of previous year.

3. DIVIDEND

The Company earned a net profit after tax of Rs. 1068-68 crore during the year as compared to Rs. 912.13 crore in the previous year, Your Directors have recommended a dividend of Rs. 388.84 crore as against dividend of Rs. 330.93 crore for the previous year. The dividend snail be paid after your approval. The declared dividend per equity share comes to 70.94 as-against Rs. 0.8O during the previous year.

4. PROJECTS UNDER EXECUTION

4.1 RAMPUR HYDRO ELECTRIC PROJECT (412 MW) The construction of Rampur HEP is in full swing since we lost reported. Out of total HRT of 15,177m, 15,027m of heading i.e. 99%, 11,921m of benching i.e. 79%, 8.365 m of Lining i.e. 55% have been completed. The boring of HRT from Kasholi D/s and Goshai U/s faces is in progress with a balance of length 85m, Excavation of Surge Shaft upto depth 162.5m and its lining have been completed. Fabrication of Penstock has been completed. Penstock erection is 94% and 13% complete for its underground and surface portions respectively. The civil works of BVH, GIS and Pot Head Yard ore progressing well; erection activities of EM works ore in progress, the spiral case erection of the 4th unit is nearing completion and that of the remaining 2 units will commence soon, As of March 2012. the cumulative expenditure on Rampur HEP was Rs. 1878.71crore.

5 PROJECTS UNDER SURVEY AND INVESTIGATION

5.1 ARUN -III PROJECT 1900 MW)

The project is a run-off the river scheme located on Arun River in Sonkhuwasabha District of Nepal. The Survey and Investigation works were completed in January 2011 and the final DPR was submitted to CEA in March 2011.

The DPR's for both the Generation Project and Transmission Project have been submitted to CEA and are in on advanced stage of discussions for clearance. Various parallel activities like Environmental Clearance, Forest Clearance/Licenses/Statutory requirements in Nepal are in progress.

Surveys, Geological Investigation and Soil investigation for bath Hydro Electric Project and Transmission Line Route have been completed,

5.2 LUHRI PROJECT 1775 MWI

The DPR submitted to CEA on 22.03.2011. is under examination of TEC of the CEA. Topographical and Geographical surveys and Rock Mechanic Test for quarry sites hove been completed. The total Drilling work of 7893m including 2360m for Dam site. 765m for HRT and 2765m for Power House has been completed. Similarly. Drifting work of 953m including 100m for Dam site and 528m for Power House site has been completed.

The proposals for forest and environment clearances have been submitted to MoEF, Government of India for their examination and accord of clearances.

5.3 DHAULASIDH PROJECT (66 MW)

Since our last report, the Stage-I clearance for the diversion of forest land has been accorded by MoEF on 06th March 2012. The proposal for environment clearance is under examination in MoEF, Govt. of India The acquisition of private land and Govt, land is in process Bidding document for the award of the Major Civil Works has been issued to pre-qualified bidders on 30th April 2012. Major Civil Works will be awarded after receiving the necessary Forest and Environment clearances.

5.4 UTTARAKHAND PROJECTS

Devsari HEP is Run of River (RoR) scheme with installed capacity of 252 MW. The project will generate 913.43 MU of energy in a 90% dependable year. The execution period of project is 5 years. DPR of the project has been examined by appraising authorities and CEA's concurrence is expected shortly. The project has also been recommended for accord of environment clearance by the Environment Appraisal Committee (EAC) of MoEF in its meeting held in December 2011. Proposal for diversion of forest land has been recommended by the State Government for approval by the MOEF. Notification under Section-!X of LA-Act has been issued for acquisition of private land Other activities required for start of construction of the project like mining and explosive clearance etc.. are in advance stage of their approval, The tendering processes for development of infrastructure works as well as for pre-qualification of bidders for major civil works have been initiated.

Naitwar Mori HEP(60 MW) - The DPR of the Project has been approved for 60MW by Govt, of Uttarakhand, The estimated cost of Project is Rs. 449.78 crore at February 2009 price level. Major geological investigation work for the project like Control Survey, Topographical Survey, Drilling works, Hock Mechanics test, UCS test, Plate Load test, Hydro-fracture test etc, have since been completed. The project has been recommended by the EAC of MoEF for Environment Clearance in its meeting held in December 2012. The forest proposal is under process at State Government level. The Works will be awarded after appropriate for forest and environment clearances are received. The completion period for the project is 48 months.

Jakhal Sankri HEP (51 MW) - The revised EIA/ EMP report is in final stage of preparation by the Consultant (WAPCOS). Drilling work at the Barrage and Power House sites have been completed, Drift work of 78.00m at Power House site and 178.3m at Barrage site have also been completed. The revised DPR has been submitted to the Government of Uttrakhand for TEC and process of land acquisition of Private and Forest Lands has been initiated.

5.5 ARUNACHAL PRADESH HYDRO PROJECTS

The Government of Arunachal Pradesh in January 2012 assigned to SJVN the task of carrying out survey and investigation and prepare the Pre-Feasibility Reports (PFR) for three projects namely Ranganadi Stage-II, Kameng-I. Doirnukh Projects and Si Basin in the month of Jan. 2012.

SJVN has completed the preparation of Pre-Feasibility Reports (PFRs) for 60 MW Ranganadi Stage-ll. 378 MW Kameng-I and 80 MW Doirnukh Projects in a record time of six months and submitted the PFRs to the Government of Arunachal Pradesh.

6. PROJECTS UNDER CONSULTANCY

6.1 PROJECTS IN BHUTAN

KHOLANGCHU H.E. PROJECT (600MW) & WANGCHU H.E. PROJECT (572MW)

Ministry of Power. Government of India entrusted the work of preparation of DPR of Kholangchu Hydroelectric Project and Wangchu Hydroelectric Project to your company.

Your company completed the required survey and investigation works of both these projects and prepared the DPR of Kholangchu Project for an installed capacity of 600 MW and that of Wangchu Project for an installed capacity of 570MW within deadlines set therefor. Both DPRs have been submitted to CEA for their techno economic appraisal. These projects are being proposed for their implementation by a joint venture company comprising your company and Druk Green Power of Bhutan, The Joint Venture agreement is under discussion between the prospective joint venture partners.

7. PROJECTS UNDER JOINT VENTURE

7.1 TIPAIMUKH H.E. PROJECT (1500 MW).MANIPUR

A Joint Venture Agreement was signed among all stakeholders (i.e. NHPC, SJVN and GoM) on 28th April 2010 for implementation of Tipainnukh H,E, Project (1500 mw) in Manipur, Thereafter, the Promoters Agreement was signed among ail stakeholders on 22nd October 2011. The draft Memorandum of Association and Article of Association are under discussion amongst the JV partners,

7.2 400KV D/c INDO-NEPAL CROSS-BORDER TRANSMISSION COMPANY LTD.

Your company has signed the Shareholder's Agreement (SHA) to execute 400KV D/C Transmission Line from Muzaffarpur- Nepal Connection Point for transfer of power between Nepal and India as a JV partner in Cross Border Transmission Company Ltd. along with other JV partners namely PGCIL, Nepal Electricity Authority and IL&FS on 9th July, 2012 at Kothmondu.

8. ALTERNATIVE ENERGY

After achieving success in hydro power development, your Company now intends to diversify into various alternative energy projects, namely Wind Power and Solar Energy, SJVN is venturing into the wind energy field with targeted initial capacity addition of 50 MW by June 2013 to promote and develop renewable sources of energy in the country. Tenders for establishing first Wind Power Plant of 50MW have already been invited and are under finalization.

9. CURRENT PERFORMANCE 2012-13

For the Quarter ending 30th June 2012, the power generated was 2091.515 MUs (previous year: 2650.527 MUs). The total Income recorded was Rs. 504.10 crore as against Rs. 553.57 crore for the corresponding quarter of the previous year.

10. ENVIRONMENT

Your company launched a comprehensive environment management plan of Rs. 35.85 crore and Rs. 45.52 crore in NJHPS and RHEP respectively. A sum of Rs. 28.49 crore and Rs. 41.33 crore have been spent so far in NJHPS & RHEP respectively.

True to its commitment for self regulation and environment protection, your company has established an Environment Laboratory on the standards laid down by Ministry of Environment & Forests, Govt, of India. The lab is first of its kind in the area and has the facility for conducting water and wastewater analysis, microbiological testing, ambient air quality monitoring, noise monitoring, oil and grease analysis, meteorological monitoring, soil/sludge/sediment and solid waste testing and metal analysis.

11. REHABILITATION AND RESETTLEMENT

The R&R plans of SJVN ore in consonance with National R&R Policy, 2007. SJVN has implemented R&R plans in NJHPS and RHEP incurring an expenditure of? 12.85 crore and Rs. 26.62 crore respectively. In NJHPS,

all the 480 affected families have been duly compensated under Land Acquisition Act. Besides, 112 landless PAFs have been provided land for land. 61 PAFs have been provided employment, 55 PAFs have been provided alternative package m lieu of employment ranging from Rs. 2 to 3 Lac. 25 house less PAFS hove been provided built-up houses, 44 PAFs have been provided cash assistance in lieu of constructed house, 75 displaced shopkeepers have been provided shop plots, Further, with a view to meet continual societal needs of local communities, an Annual Recurring Community Development Plan of Rs. 5 crore has been implemented in the project affected areas covering 12 project affected panchayats which include 22 villages.

In Rampur HEP. all 142 PAFs have been duly compensated under the Land Acquisition Act, Besides. 37 PAFs have been provided R&R benefits like resettlement grant ranging from Rs. 45.000/- to Rs. 65,000/-, constructed houses to 15 house less PAFs, cash assistance of Rs. 9.98 Lac in lieu of constructed house to each 3 house less PAFs, construction grant of Rs. 1.8 Lac for enlargement of houses to each 10 families whose houses were acquired and left with second house, financial support of Rs. 18,000/- to 51 vulnerable families, As per guidelines on "Local Area Development Committee" issued by GOHP, SJVN is to provide fund of Rs. 30.75 crore which is 1.5% of project cast to GOHP for carrying out various infrastructural development works in project affected areas of Rampur HEP. SJVN has so for spent Rs. 24.08 crore on Local Area Development Works.

12. CORPORATE SOCIAL RESPONSIBILITY

Your company has formulated and adopted its Corporate Social Responsibility- Community Development Policy in November, 2011 in consonance with the CSR guidelines issued by DPE, Ministry of Heavy Industries. The works under CSR Policy are being governed through a Trust registered as "SJVN Foundation" and with a Board of Trustees. SJVN spent Rs. 784 lac on various CSR works in the year 2011-12 which is 0.86% of previous year's PAT. The major activities carried out under the company's CSR plan during the year 2011-12 are extending financial support of Rs. 600 Lac, to the Atal Bihari Vajpayee Engineering College, Pragatinagar, District Shimla providing educational and infrastructural aid to 67 schools in project effected areas for Rs. 33.01 Lac. organising 13 health check-up camps for children in schools, extending free consultancy and medicines to local people through 175 visits of mobile health vans, financial support to National CSR Hub TISS, Mumbai, financial support to Bharat Olympic Shimla for promotion of sport and sponsorship of 25 local students for vocational training in ITIs of HP. During the current financial year, a mobile health van has been put in place in Luhri HEP for providing free medical services to the local people and such services are already in operation in NJHPS and RHEP. In this year 2012-13 your company plans to spend about Rs. 16.00 crore on various CSR schemes and activities. The major CSR schemes and activities include "SJVN Silver Jubilee Merit Scholarship Scheme" under which 140 mentorious students of 12th standard From schools affiliated to HP and Uttrakhand Education Boards, CBSE and ICSE will be provided scholarship for pursuing next higher education, adoption of villages under Model village Scheme in project area, women and child care programme, farm support for higher yield, installation of garbage disposal system in villages, creation of community assets etc. This year which marks the Silver Jubilee of SJVN's existence, the Foundation has launched "Scheme to Reward the Meritorious Students Studying in Schools Situated in Project Affected Areas of SJVN". Under the scheme. 150 students excelling in classes 5th, 8th, 10th and 12th in schools situated in NJHPS and RHEP area will be rewarded.

13. HUMAN RESOURCES

The total manpower (excluding deputationists) on the rolls of SJVN was 1184 as on 31st March 2012 as against 1203 as on 31st March 2011, The strength of HPSEB/HP Govt, employees on deputation on the above date was 638 as against 677 on 31st March 2011. As of 31st March 2012 the employees from SC, ST and OBC was 253,70 and 134 respectively as against 258,67 and 134 during the previous year. Your company gives utmost importance for the enrichment of skills and towards this in-house and external training programmes are organised in all disciplines and all levels. As a result, during the financial year 1013 employees were trained for 2865 man days.

13.1 INDUSTRIAL RELATIONS

Regular Meetings are held with the representatives of the various Associations/Unions to sort out the local issues as well as policy related matters. Recreational, Cultural and Sports functions on different occasions were also held, thus, resulting better employee-employer relations and cordial industrial relations during the year.

14. STATUTORY AND OTHER INFORMATIONS

The information required to be furnished as per the Companies Act 1956. Listing Agreements. Government Guidelines and Code of Corporate Governance of your Company, on the following matters is placed at Annexure "A"

o) Management Discussion and Analysis

b) Report on Corporate Governance

c) Information on Conservation of Energy, technology Absorption and Foreign exchange earnings and out go and

d) information as per Companies (Particulars of Employees) Rules 1975

15. DIRECTORS' RESPONSIBILITIES STATEMENT

The Directors' confirm that in the preparation of the annual accounts for the year ended March 31,2012:

- the applicable accounting standards hod been followed along with proper explanation relating to material departures, if any;

- that the directors had selected such accounting policies and applied them consistently except as disclosed in the Notes on Accounts and made judgment and estimates that 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;

- that the directors hod taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions of the Companies Act for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities; and

- that the directors had prepared the annual accounts on a going concern basis.

16. AUDITORS REPORT

M/s Hmgorani M & Co.. Chartered Accountants, New Delhi, were appointed by Comptroller & Auditor General as Statutory Auditors of the Company for the financial year 2011-12.

The Report of the Statutory Auditors to the Members on the Accounts for the year ended 31.03.2012 along with reply to Qualification is placed at Annexure 'B'. Comments of the C&AG of India on the Accounts for the year ended 31.03.2012 are placed at Annexure "C. Comments of C&AG being "NIL", the reply by the Management is not applicable.

161 COST AUDIT

Pursuant to the Central Government directions to audit Cost Accounting Records as maintained by the Company, your Company appointed Shri K.S. Berk, as Cost Auditor for the year 2011-12 with the approval of Ministry of Corporate Affairs. The Cost Audit Report for the year 2010-11 was filed with MCA on 14th September 2011.

17, BOARD OF DIRECTORS

The Directors Report for the year 2011 contained changes in the Board level positions on account of appointments and cessations up to July 2011. Subsequently, the following changes in the Board have occurred.

Pursuant to the orders of Ministry of Power, Shri R,P. Singh, Director (Electrical), was appointed as Whole time Chairman and Managing Director w.e.f. 31st January 2012.

Pursuant to the orders of Ministry of Power. Shri G. Sai Prasad was appointed as Central Government Nominee Director in place of

Shri Sudhir Kumar, with effect from 16th December 2011.

Shri K.S. Gill. Sh. S.M, Lodha. Smt, Asha Swarup, Shri Arun Mahajan and

Shri D.V. Dharmik took up their appointment as Independent Directors on the Board of SJVN.

The Board welcomes the appointments and wishes to place on record

its highest appreciation for the valuable contributions made by the outgoing Directors during their association with SJVN,

18. IMPLEMENTATION OF OFFICIAL LANGUAGE

In order to ensure the implementation of the Official language policy of the Govt, of India, all possible efforts have been made by the company to achieve the targets as specified by the Department of Official Language. Company has received awards in recognition for these efforts.

To encourage executives and non-executives to do their entire work in Hindi a number of incentive schemes are under implementation Under these schemes 328 executives and non-executives have received prizes amounting to Rs. 3.98.952/- approximately Under the new "Rajbhasha Sammon" Scheme an employee doing best work in Hindi in different Projects including Corporate Office and under the "Rajbhasho Uttknshtta Samman" an employee doing best work in Hindi at Corporate Level will be awarded Rs.25,000 and Rs. 35,000 respectively, This year seven employees were awarded cash prizes under the scheme.

11 Hindi workshops/seminars were organized wherein 184 executives and non-executives were trained. Organising of Hindi quiz competitions on national/important occasions is a regular feature in which 506 executives and non-executives received cash prizes aggregating to Rs. 5,34,900/- Out of total expenditure on purchase of books. 92% of amount was spent in purchase of Hindi books. Town official language Implementation Committee. Shimla awarded the Company with the Third Prize for its efforts towards implementing the Official language policy.

19. AWARDS & ACHIEVEMENTS

The Ministry of Power instituted in the year 2004-05. a Comprehensive Award Scheme for recognizing meritorious performance in Power Sector. The NJHPS of your company was selected for the "Gold Shield" under the Scheme, by the CEA in the category of "Performance of Hydro Power Station" for the year 2010-11. The prestigious award was presented by Hon'ble Minister of Power, Shri Sushil Kumar Shinde, to Shri R.P. Singh, CMD, SJVN Limited at a function at Vigyan Bhavan. New Delhi on 22nd March, 2012.

20. ACKNOWLEDGMENT

The Board of Directors acknowledges with deep appreciation, the co- operation and guidance extended by various Ministries/Deportments of the Government of India, particularly, Ministry of Power, Ministry of Finance, Ministry of External Affairs, MOEF. Central Electricity Authority. Central Water Commission, Geological Survey of India, the Government of Nepal, the Government of Bhutan, the Government of Himachal Pradesh, particularly, the Deportments of Power. Finance and Forests, the Pollution Control Board, Government of Uttarakhand. the State Electricity Boards and the World Bank. Your Directors also convey their gratitude to the shareholders, various international and Indian banks and financial institutions for the confidence reposed by them in the Company. The Board also acknowledges and appreciates the contribution made by Contractors, Vendors, Consultants and others for achieving the planned goals of the Company,

The Board also places on record its deep appreciation of valued cooperation extended by the Office of the Comptroller and Auditor General of India and the Auditors. Last but not least, the Board commends the hard work and dedicated efforts put in by the employees of the Corporation including the employees on deputation at all levels.

For and on behalf of Board of Directors

(R.P. Singh) CHAIRMAN AND MANAGING DIRECTOR

Place: New Delhi Date: 23rd July, 2012


Mar 31, 2011

Dear Members,

The Directors are pleased to present the Twenty-Third Annual Report of the Company for the year ended March 31, 2011 along with the Audited Statement of Accounts, Report of Auditors and Comments of the Comptroller and Auditor General of India.

The following financial highlights for the year ending 31 st March 2011 witnesses the performance of your company.

1. FINANCIAL HIGHLIGHTS

(Rs. in crore)

2010-11 2009-10 INCOME

Net Sales after adjustments 1812.67 1769.74

Other Income 143.15 138.99

Total Income 1955.82 1908.73

EXPENDITURE

Generation, Admn., & Other Exp 201.83 178.10

Depreciation 444.21 433.28

Provisions & write back (0.21) (1.29)

Interest and Finance charges 158.37 172.93

Expenditure before prior period 804.20 783.02

Prior Period Adjustment (4.58) 108.24

Total Expenditure 799.62 891.26

Profit Before Tax 1156.20 1017.47

Provision for Tax 244.07 44.73

Profit After Tax 912.13 972.74

Appropriations

Interim dividend paid nil 80.00

Proposed Dividend 330.93 248.20

Tax on dividend 53.69 54.82

Total Dividend incl Tax 384.62 383.02

2. GENERATION

During the year ending 31st March 2011, 7140.205 MUs of power was generated as compared to the previous year's generation of 7018.81 MUs. The designenergy for the NJHPS is 6612 MUs. Plant availability factor was 97.996% which has since been revised by NRPC against representation of your Company to 98.318% in June 2011. The normative Capacity index was 82%. As a result of efficient planning, systematic operation and maintenance management, the company earned an incentive of Rs.216.02 crore. The annual machines maintenance time has been brought down to 8.43 days against 10 days last year.

3. DIVIDEND

The Company earned a net profit after tax of Rs.912.13 crore during the year ascomparedto profit after tax of previousyearofRs.972.74crore. Your Directors had recommended a dividend of Rs.330.93 crore as against dividend of Rs.328.20 crore for the previous year. The dividend shall be paid after your approval. The declared dividend per equity share comes to Rs.0.80 as against Rs.0.79 during previous year.

4. PROJECTS UNDER EXECUTION

4.1 RAMPUR PROJECT (412 MW)

The Project has taken a major leap in terms of progress in all fronts since our last Report. Breakthrough blast between HRT Kajo Upstream and HRT Spill Tunnel Downstream has daylighted 7831 m of HRT in a continuous stretch. As of now, total Heading of 13668 m (90%), Benching of 7438 m (49%) and Lining of 4111 m (27%) has been done. The excavation in critical reach between Goshai upstream and Kasholi downstream, is progressing well. The HRT in all respects including plugging of adits shall be completed by April 2013. The construction activities are now mainly focused in Power House and its appurtenant structures and these activities are as per schedule. The Surge Shaft excavation is complete and lining is in progress with 31% completion as on date. The excavation of Pressure Shafts (03 nos) is complete and fabrication and erection of liner is in progress. Erection activity of all the 06 nos. generating units has been taken up with 50% completion of Unit I & 6. About 35% supplies of various electro- mechanical components have been received at site. The cumulative expenditure till March 2011 was Rs.1127.52 crores.

5. PROJECTS UNDERSURVEY AND INVESTIGATION

5.1 ARUN-IH PROJECT(900MW)

The project is a run-off the river scheme located on Arun River in Sankhuwasabha Distt. of Eastern Nepal. Survey and Investigation work was completed in January 2011. Final DPR was submitted to CEA in March 2011. As regards Environmental clearance from the Ministry of Environment, Govt, of Nepal, SJVN has submitted Scoping document and Terms of Reference to the Govt, of Nepal. Action is being taken on the observations of Govt, of Nepal. Detailed Agreement for Implementation of the project is under negotiation with the Govt, of Nepal. The award of major civil works is expected in June 2012 with a construction period of 5 years.

For evacuating power from the project, detailed survey for laying 400 KV D/C transmission line from Diding (Power House) to Dhalkebar in Nepal and upto Muzzaffarpur in India using modern techniques is in progress.

5.2 LUHRI PROJECT (775 MW)

DPR was submitted to CEA in March 2011 which is under examination by CEA for accord of TEC. EIA/EMP studies concluded in February 2011. Action in respect of Environmental clearance, Forest clearance, Acquisition of land for the project etc. has been initiated.

5.3 DHAULASIDH PROJECT (66 MW)

The DPR for 66 MW was submitted to the Government of Himachal Pradesh and the Government accorded TEC on 25th June 2011. The estimated cost of Project is Rs.497.70 crores approx at November 2010 price level. On commissioning, the project shall generate 247 million units in a 90% dependable year. EIA/EMP studies for the project have been submitted to State Pollution Control Board for conducting public hearing. Action for diversion of forest land and acquisition of land for development of infrastructural facilities is in process. The construction period of the project will be 54 months.

5.4 UTTARAKHAND PROJECTS

Devsari HEP is Run of River (RoR) scheme with installed capacity of 252 MW. The RoR scheme was cleared by Govt, of Uttarakhand in Oct., 2007. The project will generate 913.43 MU of energy in a 90% dependable year. Final DPR has been submitted to CEA in June 2010. Final EIA/EMP report has been submitted to MoEF in March, 2011 and project was considered by Expert Advisory Committee (EAC) of MoEF in April, 2011 for accord of environment clearance. Notification under Section-IV of LA-Act has been issued for acquisition of private land. At present, the TEC, private land acquisition, forest land diversion, environment clearance, mining clearance etc., are in advance stage of their approval. The major civil works are likely to be awarded by Oct., 2012 with execution period of 5 years.

Naitwar Mori HEP, capacity at the time of allocation was 33 MW. After detailed survey and investigation, the project installed capacity has been revised to 60 MW with annual energy generation of 261.08 MU in a 90% dependable year. TEC for 60 MW has been accorded by Govt. of Uttarakhand in March, 2010. The estimated cost of Project is Rs.449.78 crores at Feb 2009 price level. The project has been accorded wild life clearance by NBWL in April, 2011. The ToR for the revised capacity of the project were approved by the MoEF in July, 2010 and after public hearing, final EIA/EMP report has been submitted to MoEF in June, 2011 for accord of environment clearance. Notification under Section-VI & IX of LA-Act has been issued for acquisition of private land. At present, the process of land acquisition, environment clearance, forest land diversion and mining clearance are at advance stage of approval. Major Civil works are likely to be awarded by Jan./Feb., 2012 with 48 months completion period of the project. Jakhol Sankri HEP, capacity at the time of allocation was 33 MW which, after detailed survey and investigation, has been revised to 51 MW with generation capacity of 219.99 MU in a 90% dependable year. The DPR has been submitted to Govt, of Uttarakhand in Dec, 2010 for TEC. The ToR for EIA/EMP studies for the revised capacity of the project have been approved by MoEF in Jan., 2011. At present, the process of EIA/EMP studies, private land acquisition, forest land diversion, wild life clearance from NBWL, mining clearance etc., are in progress. The TEC for the DPR is under consideration by the Govt. of Uttarakhand.

6. PROJECTS UNDER CONSULTANCY

6.1 PROJECTS1N BHUTAN

The Ministry of Power, Govt, of India, entrusted the work of preparation of DPR of Kholongchhu Hydro Electric Project (486 MW) and work of updation of Wangchhu Hydropower project (900 MW) to your Company.

Survey and Investigation for DPR in respect of Kholongchu HEP was completed in February 2011 and Final DPR with revised installed capacity of 600 MW was submitted to CEA and Royal Government of Bhutan on 30th June 2011. EIA&EMP Studies are in progress.

As regards Wangchhu project, the scheme was revised from 900 MW storage scheme to 600 MW ROR and the revised proposal was agreed by CEA. Survey and Investigation for the revised scheme is in progress.

7. PROJECTS UNDER JOINT VENTURE

7.1 T1PAIMUKH H.E.PROJECT (1500MW),MANIPUR

Govt, of Manipur (GOM), SJVN and NHPC limited have signed a MoU on 28.4.2010 to implement the multipurpose project, namely, the "Tipaimukh Hydro Electric (Multipurpose) Project" having an installed capacity of 1500 Megawatts to be located at Manipur-Mizoram border, downstream of the confluence of the river Barak with Tuivai, in Churachandpur District of Manipur through a Joint Venture Company among the GoM, SJVN and NHPC. The NHPC shall have the share of 69%, SJVN shal I have a share of 26% and GoM shall have a share of 5% of the total share holding in the JVC. Implementation of the MoU will be monitored by a committee comprising of a representative each from Ministry of Power, Govt, of India, GoM, SJVN and NHPC.

8. CURRENT PERFORMANCE 2011-12

For the quarter ending 30th June 2011, the power generated was 2650.53 MUs (previous year: 2424.57 MU) as against the target of 2287 MUs. The total Income recorded was Rs.553.57 crore as against Rs.524.98 crore for the corresponding quarter of the previous year.

9. ENVIRONMENT

Towards this end, your company launched a comprehensive environment management plan of Rs.35.85 crore and Rs.45.52 crore in NJHEP and RHEP respectively. Asum of Rs.27.96 crore and about Rs.37.67 crore in NJHEP&RHEP were spent so far.

In recognition of the efforts on environmental activities, your company was in receipt of Awards for the year 2009-10 from Greentech Foundation, New Delhi.

10. Resettlement and Rehabilitation

SJVN, being conscious of its responsibilities towards society, is committed to execute and operate Hydro Electrical Projects in a socially responsible manner through laid down Resettlement and Rehabilitation measures for the project affected people. To ensure sustainable development, your company recognizes the fundamental rights and corporate social responsibilities that its business has towards the sustainable existence of the communities within which it operates. To fulfil these responsibilities, apart from various R&R works as per its policy, SJVN is implementing various infrastructural and community development works in NJHPS and RHEP with recurring annual budget plans of Rs.1.5 crore and Rs. 2.5 crore respectively. Following the spirit of R&R policy and Corporate Social Responsibility SJVN spent Rs.5.098 crore in NJHPS and RHEP during FY 2010-11. Your R&R, Area Development and CSR works in NJHPS and RHEP since beginning to as on date becomes Rs. 105.56 crore.

In addition to the above, an amount of Rs. 0.094 crore was released for State Institute of Engineering & Technology in Pragatinagar, Gumma, Distt. Shimla against the proposed amount of Rs. 15 crore during FY 2010-11. This year, your company approved financial assistance of Rs.2.0 crore for adoption of two ITIs in HP. The fund is proposed to be released during FY 2011-12. The company also extended financial assistance of Rs. 0.5 crore to Uttarakhand government for rehabilitation of affected people due to natural calamities like heavy rains and floods etc. during FY 2010-11.

11. HUMAN RESOURCES

The total manpower (excluding deputationists) on the rolls of SJVN was 1203 as on 31st March 2011 as against 1088 as on 31st March 2010. The strength of HPSEB/HP Govt, on deputation on the above date was 677 as against 699 on 31st March 2010. The strength of SC, ST and OBC employees as on the above date was respectively 258,67 and 134 as against 231,60 and 116duringthe previous year. Your company gives utmost importance for the enrichment of skills and towards this in-house and external training programmes are organized in all disciplines and all levels. As a result, during the financial year 1060 employees were trained for 4030 man days. 11.1 INDUSTRIAL RELATIONS

Regular Meetings are held with the representatives of the various Associations/Unions to sort out the local issues as well as policy related matters. Recreational, Cultural and Sports functions on different occasions were also held, thus, resulting better employee-employer relations and cordial industrial relations during the year.

12. STATUTORY AND OTHER INFORMATIONS

The information required to be furnished as per the Companies Act 1956, Listing Agreements, Government Guidelines, and, Code of Corporate Governance of your Company, on the following matters is placed at Annexure'A"

a) Management Discussion and Analysis

b) Report on Corporate Governance

c) Information on Conservation of Energy, technology Absorption and Foregin exchange earnings and out go

d) Information as per Companies (Particulars of Employees) Rules 1975

13. DIRECTORS' RESPONSIBILITIES STATEMENT

The Directors'confirm that in the preparation of the annual accounts for the year ended March 31,2011:

- the applicable accounting standards had been followed along with proper explanation relating to material departures, if any;

- that the directors had selected such accounting policies and app I ied them con s istentl y except as d isc losed i n the Notes on Accou nts and made judgment and estimates that 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;

- that the directors had taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions of the Companies Act for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities; and

- that the directors had prepared the annual accounts on a going concern basis.

14. AUDITORS' REPORT

M/s Hingorani M & Co., Chartered Accountants, New Delhi, were appointed by C&AG as Statutory Auditors of the Company for the financial year 2010-11.

The Report of the Statutory Auditors to the Members on the Accounts for the year ended 31.03.2011 along with reply to Qualification is placed at Annexure 'B'. Comments of the C&AG of India on the Accountsfortheyearended31.03.2011 are placed at Annexure *C Comments of C&AG being 'nil', the reply by the Management is not applicable.

14.1 COST AUDIT

Pursuant to the Central Government directions to audit Cost Accounting Records as maintained by the Company, your Company appoi nted ShriK.S.Berk, Cost Accou ntant, as Cost Au d itor for the year 2010-11 with the approval of Ministry of Corporate Affairs for the audit.

The Cost Audit Report for the year 2009-10 was filed with MCA on 22nd September 2010 as against 15th October 2010 being due date for filing.

15. BOARD OF DIRECTORS

The Directors Report for the year 2010 contained changes in the Board level positions on account of appointments and cessations up to September 2010. Subsequently, the following changes in the Board have occurred.

Pursuant to the orders of Ministry of Power, Shri R.P.Singh, Director (Electrical), has assumed the current charge of Chairman and Managing Director in addition to his duties with effect from 01 st March 2011, Shri A.S.Bindra, joined as whole time Director (Finance) with effect from 09th December 2010 and Shri Nand Lai Sharma joined as whole time Director (Personnel) with effect from 22nd March 2011. Pursuant to the orders of Ministry of Power, Shri H.K.Sharma, ceased as Chairman &Mg. Director with effect from 25th Feb 2011 on account of completion of given tenure. Also on attaining the age of superannuation, Shri R.S.Katoch ceased as Director (Personnel) with effect from 28th Feb 2011.

As regards part-time Independent Directors, on account of completion of tenure, Shri K.S.Sarma, Shri K.S.Gill and Shri S.M.Lodha ceased as Directors of the Company.

The Board welcomes the appointments and noted the contributions made by the outgoing Directors during their tenure and placed on record its highest appreciation for their services.

16. IMPLEMENTATION OF OFFICIAL LANGUAGE Celebration of Hindi Fortnight, quiz competitions, workshops, publication of house journal i.e. "Himshakti" and translation of manuals into Hindi from time to time are regular feature. During the year 242 employees were imparted training in usage of Hindi in day to day work. 741 employees were given prizes for winning various competitions organized on national/important occasions. Sub-Committee of Parliamentary Committee on Official Language Inspected the progress of use of Hindi at the Corporate Office, Shimla on 01 st November 2010 and expressed its satisfaction over the progress made in this regard.

In recognition of its efforts, your Company was awarded with TOLIC Rajbhasha Shield (Second Prize) by Town Official Language Committee, Shimla, for the year 2009-10 and NTPC Rajbhasha Shield (Third Prize) by Ministry of Power for the year 2008-09 for the best performance in the field of Official Language implementation.

17. ACKNOWLEDGEMENT

The Board of Directors acknowledge with thanks the guidance and help extended by various Ministries/Departments of the Government of India, particularly, Ministry of Power, Ministry of Finance, Ministry of External Affairs, MoEF, Central Electricity Authority, Central Water Commission, Geological Survey of India, the Government of Nepal, the Government of Bhutan, the Government of Himachal Pradesh, particularly, Deptt of Power, DeptL of Finance, Deptt of Forests, Pollution Control Board, Government of Uttarakhand, State Electricity Boards, World Bank.

Your Directors also convey their gratitude to the shareholders, various international and Indian banks and financial institutions for the confidence reposed by them in the Company.

The Board also records its deep appreciation of valued cooperation extended by the Office of the Comptroller and Auditor General of India and the Auditors. Last but not least, the Board commends the hard work and dedicated efforts put in by the employees of the Corporation including the employeesondeputation atall levels. Thanking you

For and on behalf of Board of Directors

(R.P.Singh)

CHAIRMAN AND MANAGING DIRECTOR

Place: New Delhi

Date: 14th July 2011


Mar 31, 2010

The Directors are pleased to present the Twenty-Second Annual Report of the Company for the year ended March 31, 2010 along with the Audited Statement of Accounts, Report of Auditors and Comments of the Comptroller and Auditor General of India.

Before presenting the Financial Highlights of the year, the Board places its sincere appreciation to all the stakeholders who supported and subscribed to the Equity on account of the Disinvestment in the Company by the Government of India. As you are all aware the issue of 41.50 crore equity shares consisting of 10.03% of the paid up capital of the Company was over-subscribed by 6.64 times and the Board hopes the same spirit and support in the times to come.

The following financial highlights for the year ending 31st March 2010 is witness to the performance of your company.

1. FINANCIAL HIGHLIGHTS

(Rs. In crore)

2009-10 2008-09

INCOME

Net Sales after adjustments 1769.74 1759.59

Other Income 138.99 269.65

Total Income 1908.73 2029.24

EXPENDITURE

Generation, Admn.& Other Exp. 178.10 171.35

Depreciation 433.28 233.25

Provisions & write back (1.29) 8.23

Interest and Finance charges 172.93 332.49

Prior Period Adjustment 108.24 (1.98)

Total Expenditure 891.26 743.34

Profit Before Tax 1017.47 1285.90

Provision for Tax 44.73 270.58

Profit After Tax 972.74 1015.32

Appropriations

Interim dividend paid 80.00 110.00

Proposed Dividend 248.20 210.00

Total Dividend 328.20 320.00

2. GENERATION

During the year, 7018.81 MUs of power was generated as compared to the previous years generation of 6608.691 MUs. The design energy for the NJHPS is 6612 MUs. Plant availability factor was 98.55% against normative capacity index of 82%. As a result, the company earned an incentive of Rs.132 crore. The maintenance time has been brought down to 10 days against 15 days last year.

3. SHARE CAPITAL

During the financial year 2009-10, the Govt, of Himachal Pradesh paid an Application money of Rs. 16.70 crores towards subscription for additional equity as agreed to in the Agreement for Rampur Project executed on 20th October 2004. Pursuant to the approval of the Govt, of India, approving the allotment of additional equity to the Govt, of Himachal Pradesh and the GOHP having paid the balance money amounting to Rs. 24.24 crore on 08th April 2010, the Company allotted 2,78,12,500 equity shares of Rs.10 each at Rs. 14.72 on 13th April 2010.

4. DIVIDEND

The Company earned a net profit after tax of Rs. 972.74 crore during the year as compared to profit after tax of previous year of Rs. 1015.32 crore. Your Directors had recommended a dividend of Rs. 328.20 crore (including interim dividend of Rs. 80 crore already paid) as against dividend of Rs. 320 crore for the previous year. The dividend shall be paid after your approval.

5. STATUS OF PROJECTS UNDER EXECUTION

5.1 RAMPUR PROJECT (412 MW)

The progress of the Civil Works in HRT, as stated in our last report, i continues to be on critical path due to very poor geology between Goshai upstream and Kasholi downstream. Although, the accelerated measures deployed at Goshai u/s proved to be good with achieving progress rate of 50 m per month as against earlier 28 m per month, the works in Kasholi d/s face could not progress due to presence of 20 m long cavity. A by pass adit has been constructed to by pass the cavity and the cavity is being treated. The progress of other reaches of HRT, Surge Shaft, Power house complex etc. and Electro-Mechanical works are as per targets. As of now, with the accelerated measures, 65% HRT heading, 30% benching, 11% concrete lining in HRT, 94% excavation of surge-shaft, 98% power house excavation are complete. Civil fronts for electro-mechanical works in power house area has been made available. The model test of turbine has been done successfully. The project is now likely to be commissioned in September 2013 in place of March 2012. Your Directors assure that all out efforts are being made to achieve better progress.

5.2 ARUN-III PROJECT (900 MW)

The project is the first venture of your Company on foreign land, on BOOT basis, therefore all out efforts are being put in to achieve the milestones at all levels. The project is a run-off the river scheme located on Arun River in Sankhuwasabha Distt. of Eastern Nepal. Topographic survey for all the project components has been completed. Control points have been established at various sites of the project components. FSR for the project with revised installed capacity of 900 MW has been prepared and the commercial viability of the project with 900 MW has been accorded by CEA on 23.02.2010. The FSR has been submitted to Govt, of Nepal in April 2010. Preparation of DPR is in progress. For EIA / EMP and R&R studies, collection of data for first & second season has been carried out. Activities connected with securing the possession of land for project works had also begun. Survey work for the construction of road to Power House and Dam site has been completed and estimate finalized. Detailed Agreement for Implementation of the project is under negotiation with the Govt, of Nepal.

For evacuating power from the project, SJVN was issued survey license for conducting survey of Transmission Line for Arun-3 Project on May 22, 2009. Work for conducting detailed survey for laying 400 KV D/C transmission line from Diding (Power House) to Dhalkebar in Nepal and upto Muzzaffarpur in India using modern techniques was awarded on 24.12.2009.

5.3 PROJECTS IN BHUTAN

The Ministry of Power, Govt, of India, entrusted the work of preparation of DPR of Kholongchhu Hydro Electric Project (486 MW) and work of updation of Wangchhu Hydropower project (900 MW) to your Company. The Agreement towards preparation of DPR of Kholongchhu HEP by SJVN has been signed between the Corporation and Royal Govt, of Bhutan on 22.12.2009. SJVN has prepared the FSR for both the projects. TORsfor EIA and EMP studies for both the projects have been cleared by Royal Govt, of Bhutan. In FSR of Kholongchhu Project, the installed capacity of the project has been established as 650 MW. The FSR has been submitted to CEA for obtaining financial viability of the project. Preparation of DPR is in progress taking into consideration the views of CEA. The Wangchhu Project as per previously prepared DPR was conceptualized as storage scheme. On preparation of FSR, SJVN found the project unviable with storage scheme and proposed a revised scheme for the project to be now as RoR scheme with installed capacity of 600 MW. The FSR for RoR scheme was submitted to CEA/CWC for establishing the Commercial viability on 13.11.2009 and obtained the same by8.2.2010.

5.4 LUHRI PROJECT (775 MW)

An MOU for the project between Govt, of Himachal Pradesh and SJVN was signed on 27th October 2008. DPR of the project was submitted to CEA in August 2007 and copy of MoU in November 2008 and the observations of the CEA on hydrology and geology have been attended to. The EIA/EMP report is being finalized and will be sent to Pollution Control Board for Public Hearing. Drift at power house site as per advice of CEA is in progress.

CAT Plan and diversion of forest land case has been submitted to Govt, of Himachal Pradesh for onward submission to Ministry of Environment and Forests, Govt, of India. Acquisition of land required for the project is in process.

5.5 DHAULASIDH PROJECT (66 MW)

An MoU with Government of Himachal Pradesh was signed on 27th October 2008. Prior permission for pre-construction activities for setting up of 40 MW Project was accorded by HP Govt, in October 2009. Subsequently, FSR for this project was prepared and the capacity was enhanced to 66 MW after carrying out detailed survey and investigation at project. The DPR is likely to be submitted to Govt, of H.P. by September 2010. Action for diversion of forest land and acquisition of land for development of infrastructural facilities is in process. The major civil works of the project are planned to be awarded by November 2011 and the project is likely to be commissioned by May 2016.

5.6 UTTARAKHAND PROJECTS

The Govt, of Uttarakhand accorded clearance for implementation of Devsari stage-l (252 MW) as a run of the river scheme. TOR for EIA/EMP studies has been approved by MOEF in April 2008. Preliminary survey works have been completed. DPR was submitted to CEAin January 2009 for TEC. Based on the comments from CEA, additional site investigations and essential drift works at dam site have been completed and final DPR submitted to CEA in June 2010 for TEC. Land acquisition, Environment and Forest clearance are under progress. The major civil works are likely to be awarded by October 2012 with execution period of five years.

In respect of Naitwar Mori HEP, its capacity at the time of assignment was 33.5 MW. After detailed survey and investigation SJVN has raised its capacity to 60 MW. Application for diversion of forest land has been submitted to State Forest Department. Acquisition of private land is in progress. Major civil works are likely to be awarded by January 2012 with 48 months completion period of the project.

As regards Jakhol Sankri HEP (51 MW), as per the advice of the Expert Appraisal Committee for Project Environment Clearance, NOC from Chief Wild Life warden has been obtained and clearance for TOR for EIA/EMP studies has also been approved. DPR is under preparation. Meanwhile, land identification etc. are also in progress.

5.7 TIPAIMUKH H.E. PROJECT (1500MW),MANIPUR

Govt. ofManipur(GOM), SJVN and NHPC limited have signed a MoU on 28.4.2010 to implement the multipurpose project, namely, the "Tipaimukh Hydro Electric (Multipurpose) Project" having an installed capacity of 1500 Megawatts to be located at Manipur-Mizoram border, downstream of the confluence of the river Barak with Tuivai, in Churachandpur District of Manipur through a Joint Venture Company among the GoM, SJVN and NHPC. The NHPC shall have the share of 69%, SJVN shall have a share of 26% and GoM shall have a share of 5% of the total share holding in the JVC. Implementation of the MOU will be monitored by a committee comprising of a representative each from Ministry of Power, Govt, of India, GoM, SJVN and NHPC.

5.8 CROSS BORDER POWER TRANSMISSION CO. PVT. LIMITED

A Memorandum of Agreement (MoA) was signed between SJVN and IL&FS EDC on 25th June 2009 following SJVNs in principle decision for equity participation of 26% in Cross Border Power Transmission Company Private Limited (CPTC) incorporated for implementation of Indian side portion (about 86 km) of 400 KV Dhalkebar - Muzaffarpur, Indo - Nepal Transmission Line Interconnection by IL&FS EDC. The present share holding pattern of CPTC comprises of 48% by IL&FS EDC, 26% each by PGCIL and SJVN.

6. CURRENT PERFORMANCE 2010-11

For the quarter ending 30th June 2010, the power generated was 2424.57 MU as against the target of 2233.618 MUs and the total income recorded was Rs.524.98 crore as against Rs.489.32 crore for the corresponding quarter of the previous year. The net profit for the quarter ending June 2010 was Rs. 290.76 crore as against Rs.285.30 crore for the corresponding quarter of the previous year.

7. ENVIRONMENT

Your company has adopted a Corporate Environmental Mission Statement and environmental policies. The companys mission statement which, interalia, states developing and supplying to the Nation, State and Local communities, an efficient economic environmentally sustainable and socially responsible hydro power, stresses the need to develop adequate long-term capacity to manage environmental issues in all projects.

Towards this end, your company launched a comprehensive environment management plan of Rs. 35.85 crore and Rs. 45.52 crore in NJHEP and RHEP respectively. Asum of Rs. 27.96 crore and about Rs. 32.45 crore in NJHEP &RHEP was spent so far.

8. REHABILITATION AND RESETTLEMENT

Resettlement of Displaced Project Affected Persons is one of the primary duties of your company. During the year, your Company prepared Corporate R & R Policy based on the guidelines of National R & R Policy 2007. The provisions made under the R & R Policy are superior to those of National R&R Policy 2007. The main features of the Policy are sustainable economic development, better housing facility, strengthening of social institutions, grievance redressal mechanism. The laid down policies on Rehabilitation and Resettlement are followed in letter and spirit. During the year, a sum of Rs.11.61 crores was spent towards various activities under R&R and Corporate Social Responsibility Schemes. The cumulative expenditure on account of R&R and CSR amounts to Rs. 93.11 crores in respect of Nathpa Jhakri and Rampur Hydro Projects. In respect of other projects, namely Naitwar Mori and Luhri, specific R&R Plans are under preparation.

Further to the above, during the financial year 2009-10, your company approved funding of State Institute of Engineering & Technology at Pragati Nagar, Gumma, Distt. Shimla, Himachal Pradesh at an estimated cost of Rs.75.00 crores. It is proposed to release Rs.15.00 crores during the year 2010-11 to meet the initial setting up costs, so that engineering courses can be conducted from 2011-12 session and onwards. The Govt, of Himachal Pradesh is giving 150 bighas of land free of cost to the Institution. The Institution shall be managed by a Trust/Society to be formed.

9. HUMAN RESOURCES

The total manpower on the rolls of SJVN was 1088 as on 31 st March 2010 as against 1018 as on 31 st March 2009. The strength of HPSEB/HP Govt. on deputation on the above date was 699 as against 726 on the above date of the previous year. The strength of SC, ST and OBC employees as on the above date was respectively 231, 60 and 116 asagainst 215,56 and 95 during the previous year.

Your company gives utmost importance for the enrichment of skills and towards this in-house and external training programmes are organized in all disciplines and all levels. As a result, during the financial year 1142 employees were trained for 4814 man days.

9.1 INDUSTRIAL RELATIONS

Regular Meetings are held with the representatives of the various Associations/Unions to sort out the local issues as well as policy related matters. Recreational, Cultural and Sports functions on different occasions were also held, thus, resulting better employee-employer relations and cordial industrial relations during the year.

10. STATUTORY AND OTHER INFORMATION

The information required to be furnished as per the Companies Act 1956, Listing Agreements, Government Guidelines, and, Code of Corporate Governance of your Company, on the following matters is placed at Annexure "A"

a) Management Discussion and Analysis

b) Report on Corporate Governance

c) Information on Conservation of Energy, Technology Absorption and Foreign exchange earnings and out go

d) Information as per Companies (Particulars of Employees) Rules 1975

11. DIRECTORSRESPONSIBILITIES STATEMENT

The Directors confirm that in the preparation of the annual accounts for the year ended March 31,2010:

- The applicable accounting standards had been followed along with proper explanation relating to material departures, if any;

- That the directors had selected such accounting policies and applied them consistently except as disclosed in the Notes on Accounts and made judgment and estimates that 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;

- That the directors had taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions of the Companies Act for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities; and

- That the directors had prepared the annual accounts on a going concern basis.

12. AUDITORS REPORT

M/s Hingorani & Co., Chartered Accountants, New Delhi, were appointed by C&AG as Statutory Auditors of the Company for the financial year 2009-10.

The Report of the Statutory Auditors to the Members on the Accounts for the year ended 31.03.2010 and Comments of the C&AG of India on the Accounts for the year ended 31.03.2010 are placed at Annexures B and "C.

There being no Qualifications of the Statutory Auditors and Comments of C&AG being nil, the Management Replies are not applicable.

12.1 COST AUDIT

Pursuant to the Central Government directions to audit Cost Accounting Records as maintained by the Company, your Company appointed Shri K.S. Berk, Cost Accountant, as Cost Auditor for the year 2009-10 with the approval of Ministry of Corporate Affairs for the audit.

13. BOARD OF DIRECTORS

The Directors Report for the year 2009 contained the details of appointments and cessations in respect of Directors up to September 2009. Thereafter Shri R.N. Misra, whole time Director (civil) was appointed by the Ministry of Power with effect from 21st May 2010. As regards cessation of whole time Director, Shri K.K.Garg, Director (Finance) ceased as Director with effect from 3rd Nov 2009 on account of his new posting.

As regards appointment of part-time Directors, the Ministry of Power, appointed Shri Sudhir Kumar, Jt. Secretary (Hydel), MOP, Shri Ajay Tyagi, Pr. Secretary (Finance), Shri Deepak Sanan, Pr. Secretary (Power), GOHP, as Part-time Official Directors with effect from 29th September 2009, 6th October 2009, 8th April 2010. In addition, Shri Ravi Dhingra, and Ms Bharti Prasad were appointed as Independent Directors with effect from 29th March 2010.

As regards cessation of part-time Directors, Shri J.S. Kawale, Jt. Secretary, MOP, Shri Arvind Mehta, Pr. Secy. (Finance), Shri Gurdial Singh, Shri Ajay Tyagi ceased to be the part-time Directors with effect from 29th September 2009,22nd September 2009,24th Dec 2009 and 8th April 2010 respectively. The Ministry of Power further appointed Shri Gurdial Singh and Shri Ajay Tyagi as Permanent Invitee on the Board. The Board welcomes the appointments and noted the contributions made by the outgoing Directors during their tenure and placed on record its highest appreciation for their services.

14. IMPLEMENTATION OF OFFICIAL LANGUAGE

Celebration of Hindi Fortnight, quiz competitions, workshops, publication of house journal i.e. "Himshakti" and translation of manuals in to Hindi from time to time are regular features. During the year 216 employees were imparted training in usage of Hindi in day to day work. 451 employees were given prizes for winning various competitions organized on national/important occasions. Sub-Committee of Parliamentary Committee on Official Language inspected the progress of use of Hindi at the Corporate Office, Shimla on 31st October 2009 and expressed its satisfaction overthe progress made in this regard.

15. ACKNOWLEDGEMENT

The Board of Directors acknowledge with thanks the guidance and help extended by various Ministries/Departments of the Government of India, particularly, Ministry of Power, Ministry of Finance, Ministry of External Affairs, MOEF, Central Electricity Authority, Central Water Commission, Geological Survey of India, the Government of Nepal, the Government of Bhutan, the Government of Himachal Pradesh, particularly, Deptt. of Power, Deptt. of Finance, Deptt. of Forests, Pollution Control Board, Government of Uttarakhand, State Electricity Boards, World Bank.

Your Directors also convey their gratitude to the shareholders, various international and Indian banks and financial institutions for the confidence reposed by them in the Company.

The Board also records its deep appreciation of valued cooperation extended by the Office of the Comptroller and Auditor General of India and the Auditors. Last but not least, the Board commends the hard work and dedicated efforts put in by the employees of the Corporation including the employees on deputation at all levels.

Thanking you

For and on behalf of Board of Directors

(H.K. SHARMA) CHAIRMAN AND MANAGING DIRECTOR Place: New Delhi

Date : 30th July 2010


Mar 31, 2009

The Directors are pleased to present the Twenty-first Annual Report of the Company for the year ended March 31, 2009 along with the Audited Statement of Accounts, Report of Auditors and Comments of the Comptroller and Auditor General of India. As you are all aware, we have completed five successful years since the beginning of the commercial operations of the first unit on 30th March 2004 of NJHPS. As in the past, the year 2008-09 also proved to be an impressive year which could be evidenced from the following financial results:.

1 FINANCIAL HIGHLIGHTS

(Rs. in crore) :

INCOME 2008-09 2007-08

Net Sales after adjustments 1759.59 1250.34

Other Income 269.65 331.87

Total Income 2029.24 1582.21

EXPENDITURE

Generation, Admn.,& Other Exp. 171.35 106.43

Depreciation 233.25 259.81

Depreciation prov. of earlier yrs written back Nil (506.93)

Provisions & write back 8.23 0.15

Interest and Finance charges 332.49 288.18

Prior Period Adjustment (1.98) 550.34

Total Expenditure 743.34 697.98

Profit before Tax 1285.90 884.23

Provision of Tax 270.58 119.72

Profit after Tax 1015.32 764.51 Appropriations

Interim dividend paid 110.00 136.00

Proposed Dividend 210.00 108.00

Total Dividend 320.00 244.00

Amount transferred to Reserves 640.94 479.05

2. GENERATION

During the year, 6608.691 MUs of power was generated as compared to the previous years generation of 6448.977 MUs. Keeping in view the important factors, such as, ensuring minimum flow of 15% discharge in the river for environm-ental considerations, shutdown of the plant during flushing of Reservoir and silt level exceeding the permissible limits, your company proposed revised design energy at 6255 MUs in a 90% dependable year as against 6951 MUs approved earlier and submitted a proposal to CEA. CEA re-considered these factors and approved revised design energy as 6612 MUs.

3.SALES

The final tariff order for the period 2004-05 to 2008-09 was received during the year. Based on revised rates as per the said order, the company has billed for the differential in tariff. The gross turnover from sale of energy for the year including differential in tariff as above stood at Rs. 1886.60 crore. The net sale of energy after provision on account of advance against depreciation and tariff adjustment of Rs. 127.01 crore stoodat Rs. 1759.59 crore.

4. DIVIDEND

The Company earned a net profit after tax of Rs. 1015.32 crore during the year and as such your Directors had recommended a dividend of Rs.320 crore (including interim dividend of Rs.110 crore already paid) as against dividend of Rs.244 crore for the previous year. The dividend shall be paid after your approval.

5. STATUS OF NEW PROJECTS

5.1 RAMPUR PROJECT (412 MW)

The Major Civil Works consisting of HRT, Surge Shaft, Power house complex etc., awarded on 1st February 2007 in two packages could not keep the current pace of progress due to unaccountable class and quantity of bad rock encountered. Presently, Kasholi adit and Goshai HRT downstream and upstream are in the critical path. The earlier measures of adding one more adit did not yield the desired results. More accelerated measures such as re- alignment of HRT, switching over to advance technology of lattice girder encased shotcrete support, deployment of Twin cutter etc. are under trial and once the results being positive, the construction methodology shall be suitably modified for containing the delay as much as possible. As of now, with these accelerated measures, the delay in project commissioning is about 8 months. Your Directors assure that all out efforts are being made to achieve better progress and ensure early commissioning. The Electro- Mechanical Package, which was re-tendered due to non- clearance by the World Bank, was awarded in September 2008 to be completed in 42 months as against 52.5 months decided earlier.

When completed, the project design energy would be 1770 MUs in a 90% dependable year. The project is originally scheduled to be completed by Feb. 2012 i.e. within the 11th plan.

5.2 ARUN-III PROJECT (402 MW)

Contract for preparation of Feasibility Report, Detailed project report, bid documents, drawings, EIA/EMP studies including investigation works for the project was awarded in the first week of August 2009. All the works shall be completed by December 2010. Meanwhile, gauge, discharge sites and silt observatories have been made functional. Identification of land, acquisition process, estimates for access roads are under preparation.

This being the first venture of your company on foreign land, on BOOT basis, all out efforts are being put in to achieve the milestones at all levels.

5.3 PROJECTS IN BHUTAN

The Ministry of Power, Government of India, entrusted survey and investigation of Kholongchu HEP (486 MW) and Wangchu HEP (900 MW) in July 2008 to your Company. Terms of reference for EIA and EMP studies for Kholongchu project are under approval by Govt, of Bhutan. Meanwhile, bids for Consultants for preparation of FSR and DPR already opened in June 2009 are under evaluation. In respect of Wangchu project, the TOR were already approved by the Government and tendering action for appointment of consultant for preparation of FSR and DPR is being initiated.

5.4 LUHRI PROJECT (775 MW)

An MoU for the project between Govt, of Himachal Pradesh and SJVN was signed on 27th October 2008. DPR of the project was submitted to CEA in August 2007 and copy of MoU in November 2008 and the observations of the CEA on hydrology and geology are being attended to. The observations of the World Bank on EIA, EMP and CAT Plans are also being attended to. The target for award of major civil works is November 2010 with tentative execution period of 7 years. The present on-going drifting is proposed to be completed in September 2009. Action on Land acquisition and diversion of forest land has also been initiated.

5.5 DHAULASIDH PROJECT

An MoU with Government of Himachal Pradesh was signed on 27th October 2008. Application for PEC was submitted in November 2008. Contract for preparation of FSR, DPR, Bid documents etc. was awarded in August 2009 to be completed by August 2010. The project is planned for commissioning by December 2014.

5.6 UTTARAKHAND PROJECTS

The Govt, of Uttarakhand accorded clearance for implementation of stage-l Devasari HEP (252 MW) on 4th October 2007 as a run of the river scheme. PEC was accorded in April 2008. Preliminary survey works were completed. DPR was submitted to CEA in January 2009 for TEC and drift excavation as suggested is in progress. Land acquisition and Forest clearance are under progress. The target for award of major civil works is January 2011 with execution period of five years.

In respect of Naitwar Mori, detailed topographical survey of the project was completed and PEC was accorded by MOEF in July 2007. The DPR was submitted to Govt, of Uttarakhand in July 2008. TEC is yet to be received. Application for diversion of forest land was submitted to State Forest Department in April 2008 and acquisition of private land is in progress. The target for award of major civil works has been kept in February 2010 with completion period of the project in 42 months.

As regards Jakhol Sankri, as per the advice of the Expert Appraisal Committee for Project Envinronment Clearance, NOC from Chief Wild Life Sanctuary area was obtained in April 2009 and PEC from MOEF was also received. Draft FSR was received in May 2009 and DPR work will be taken up shortly. Meanwhile, land identification etc has also been taken up.

6. CURRENT PERFORMANCE 2009-10

For the quarter ending 30th June 2009, the power generated was 2155.21 MUs as against the target of 2208.59 MUs and the total Income recorded was Rs.446.29 crore (Rs.416.62 crore during corresponding quarter of the previous year) and estimated net profit was Rs. 156.38 crore (Rs. 165.61 crore during corresponding quarter of the previous year).

6.1 INTERIM DIVIDEND 2009-10

Considering the current financial performance, your Directors approved payment of interim dividend of Rs.80 crore for the year 2009-10 to be paid to both the share holders in accordance with the equity ratio in the company as on 31st March 2009.

7. ENVIRONMENT

Your company has adopted a Corporate Environmental Mission Statement and environmental policies. The companys mission statement which, interalia, stated that developing and supplying to the Nation, State and Local communities, an efficient economic environmentally sustainable and socially responsible hydro power stresses the need to develop adequate long-term capacity to manage environmental issues in all projects.

Towards this end, your company launched a comprehensive environment management plan of Rs.35.85 crore and Rs.45.52 crore in NJHEP and RHEP respectively. A sum of Rs.21.50 crore and about Rs.20.00 crore in NJHEP a RHEP were spent so far.

In recognition of the efforts on Environmental activities, your Company was in receipt of Awards in the year 2008-09 from Greentech Foundation, New Delhi.

8. REHABILITATION AND RESETTLEMENT

Resettlement of Displaced Project Affected Persons is one of the primary duties of your company. The laid down policies on Rehabilitation and Resettlement are followed in letter and spirit. During the year, as in the past, your company spent a sum of Rs.5.01 crores. Out of this, Rs.1.49 crore towards Infrastructure works of NJHPS and Rs.3.5 crore towards local area development of RHEP. Apart from the above, 35 students from project area of RHEP were sponsored with tuition fee and scholarship for pursuing vocational/ ITI courses in Himachal Pradesh for the current academic session

9. HUMAN RESOURCES

The total manpower on the rolls of SJVN was 1018 as on 31 st March 2009 as against 956 as on 31st March 2008. The strength of HPSEB/HP Govt, on deputation on the above date was 726 as against 772 on the above date of the previous year. The strength of SC, ST and OBC employees as on the above date was respectively 215, 56 and 95 as against 171, 52 and 84 during the previous year.

Your company gives utmost importance for the enrichment of skills and towards this in-house and external training programmes are organized in all disciplines and all levels. As a result, during the year, 1221 employees were trained for 4036 man days.

9.1 INDUSTRIAL RELATIONS

Regular Meetings are held with the representatives of the various Associations/Unions to sort out the local issues as well as policy related matters. Recreational, Cultural and Sports functions on different occasions were also held, thus, resulting better employee-employer relations and cordial industrial relations during the year.

10. STATUTORY AND OTHER INFORMATIONS

The information required to be furnished as per the Companies Act 1956, Government Guidelines, and, Code of Corporate Governance of your Company, on the following matters is placed at Annexure A"

a) Management Discussion and Analysis

b) Report on Corporate Governance

c) Information on Conservation of Energy, technology Absorption and Foregin exchange earnings and out go

d) Information as per Companies (Particulars of Employees) Rules 1975

11 .DIRECTORS RESPONSIBILITIES STATEMENT

The Directors confirm that in the preparation of the annual accounts for the year ended March 31,2009:

- the applicable accounting standards had been followed along with proper explanation relating to material departures, if any;

- that the directors had selected such accounting policies and applied them consistently except as disclosed in the Notes on Accounts and made judgment and estimates that 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;

- that the directors had taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions of the Companies Act for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities; and

- that the directors had prepared the annual accounts on a going concern basis.

12. AUDITORS REPORT

M/s R. Bansal & Co., Chartered Accountants, Chandigarh, were appointed by C&AG as Statutory Auditors of the Company for the financial year 2008-09.

The report of the Statutory Auditors to the Members on the Accounts for the year ended 31.3.2009 and replies of the Management on the qualifications of Statutory Auditors are placed at Annexures "Band "C.

The C&AG of India vide letter no. RAP/NHPC/SJVNL/2- 2/08-09/562, dated 27th August 2009 communicated "NIL" comments under section 619(4) of the Companies Act 1956 on the Accounts for the year ended 31.3.2009. A copy of communication is placed at Annexure D

12.1 COST AUDIT

Pursuant to the Central Government directions to audit Cost Accounting Records as maintained by the Company, your Company appointed Shri K. S. Berk, Cost Accountant, as Cost Auditor for the year 2008-09 with the approval of Ministry of Corporate Affairs for the audit.

13. CHANGES IN NAME, OBJECTS AND ARTICLES OF ASSOCIATION

Pursuant to your companys expansion activities from Himachal to other States in India and abroad, venturing into new activities such as wind power etc., and with a view to convert in to public limited company for adopting Corporate Govemanace norms, your company proposes change in the Name, Objects and relevant Articles of Memorandum and Articles of Association. Your company also proposes increase in Authorised Share Capital from Rs.4500 crore to Rs.7000 crore and sub-division of face value of share from Rs. 1000 each to Rs.10 each. The above changes shall be implemented after your approval.

14. BOARD OF DIRECTORS

Since the last Report, Shri J.K.Sharma, whole time Director (civil) ceased with effect from 9th April 2009 on his being appointed as Director in NHPC. As regards part-time Directors, Shri Rajesh Verma and Shri Ajay Mittal ceased to be the part-time Directors with effect from 26th March 2009 and 19th May 2009 respectively on account of their new postings. The Board noted the contributions made by the above Directors during their tenure and placed on record its highest appreciation for their services.

15. IMPLEMENTATION OF OFFICIAL LANGUAGE Celebration of Hindi Fortnight, quiz competitions, workshops, publication of house journal i.e. "Himshakti" and translation of manuals into Hindi from time to time are regular features. During the year, 292 employees were imparted training in usage of Hindi in day to day work. Three employees were also trained in Hindi typing. In recognition of efforts for the year 2007-08, in implementation of official language, your company was awarded TOLIC Rajbhasha Shield (First Prize) by Town Official Language Committee, Shimla, and NTPC Rajbhasha Shield (Third Prize) by Ministry of Power for best performance.

16.ACKNOWLEDGEMENT

The Board of Directors acknowledge with thanks the guidance and help extended by various Ministries/ Departments of the Government of India, particularly, Ministry of Power, Ministry of Finance, Ministry of External Affairs, MOEF, Central Electricity Authority, Central Water Commission, Geological Survey of India, the Government of Nepal, the Government of Bhutan, the Government of Himachal Pradesh, particularly, Deptt. of Power, Deptt. of Finance, Deptt. of Forests, Pollution Control Board, Government of Uttarakhand, State Electricity Boards, World Bank, Financial Institutions and Banks etc.

The Board also records its deep appreciation of valued cooperation extended by the Office of the Comptroller and Auditor General of India and the Auditors. Last, but not the least, the Board commends the hard work and dedicated efforts put in by the employees of the Corporation including the employees on deputation at all levels.

Thanking you,

For and on behalf of Board of Directors

Place: Shimla (H.. K. SHARMA)

Date: 10th September, 2009 CHAIRMAN AND MANAGING DIRECTOR

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