NTPC: National Thermal Power Corporation
NTPC Limited is an Indian statutory corporation which is also known as National Thermal Power Corporation Limited. NTPC limited is incorporated under the company's act of 1956, and it is engaged in the generation of electricity and allied activities. NTPC limited is under the jurisdiction control of the Ministry of Power, Government of India, and headquarter of this body is located in New Delhi (Capital City).
The core function of NTPC limited is the generation as well as distribution of the electricity to all the State electricity boards of India. This is not the only function of this body, and it also undertakes turnkey and consultancy project contracts. But there is a catch there, and that is NTPC limit only take those turnkey and consultancy projects, which includes project management, operation and management of power plants, engineering and construction management.
A brief structure of NTPC limited
Here, in this section, we are providing you with a table that includes basic and brief details about NTPC limited.
In this section, we will discuss the NTPC limited corporation and its highlighted points. We will also discuss the about section of NTPC limited as following:
NTPC limited: History
The history of NTPC limited is very long and vast, and we cannot study it in a single-phase manner as many changes have been seen in past decades. Therefore, we are going to study the history of NTPC limited in various phases in this section.We will discuss the history of NTPC limited in the following three parts in this section:
We will discuss each phase included in the history of NTPC limited and see what major changes have come in each of the three phases, as we have mentioned above.
Phase 1: Early beginning of NTPC limited (from 1975 to 1994):
NTPC limited was founded as National Thermal Power Corporation Private Limited on November 7th of 1975, and it became operational in 1976 by starting work on its first thermal power project at Shakti Nagar of Uttar Pradesh (UP) in the year 1976. The first thermal power project of NTPC limited was named National Thermal Power Corporation Private Limited Singrauli. Also, in the year 1976, the name of NTPC limited was changed from "National Thermal Power Corporation Private Limited" to National Thermal Power Corporation Limited. In the Fiscal Year (FY) 1982-83, when NTPC limited began its commercial operations of selling power (exact in the year 1983), it earned a total profit of INR 4.5 crores.
Following more changes have been seen in the early beginning phase of the NTPC limited:
These were the major changes that have been seen in the NTPC limited corporation in its early beginning phase from 1975 to 1994.
Phase 2: New Changes in NTPC limited (from 1995 to 2004)
At the beginning of the year 1995, NTPC limited took over the majority equity stake in Talcher Thermal Power Station, which was from the Orissa state electricity board. NTPC limited was conferred with the status of "Navratna" by the government of India in the year 1997, and also in the same year, it was able to achieve the milestone of generating a total of 100 billion electricity in a single calendar year. In the year 1998, NTPC limited commissioned its first Naptha-based power plant having a total generating capacity of 350 MW at the Kayamkulam.
The power plant of NTPC limited located at Dadri was certified with ISO-14001 in the year 1999, and the same power plant of NTPC limited had the highest PLF (Plant load factor) in India.
Other than the overview as mentioned above of history phase 2 of NTPC limited, the following more changes have been seen in the same phase history:
Phase 3: Current Scenario in the NTPC (from 2005 to Present)
In this part, we are going to look at the third phase of the history of NTPC, where we will look from 2005 to the present and see what changes have come in the corporation since then.
It was the October of the year 2005 when the name of the company was changed from National Thermal Power Corporation Limited to NTPC limited, and since then, it is officially known as NTPC limited only. Now, the one question that will surely come to our mind at this point is that why the name of the corporation was changed all of a sudden. The primary or main reason behind changing the name of the corporation to NTPC limited is that at the time company's foray into nuclear as well hydropower plant-based power generation along with the backward integration by the coal mining set up by it.
It was the year 2006 when NTPC limited first set up its power plant unit outside the Indian boundaries. NTPC limited made an agreement with the Sri Lankan government in the year 2006 to set up two units of its power plants (each having capacity of 250 MW), each in the Trincomalee city of Sri Lanka.
During the period of 2008 to 2011, NTPC limited entered into various joint ventures with the following organisations:
NTPC limited entered into joint ventures with all the organisations or government corporations to expand its business of power plants and power generation to another level.
Other than the overview of history phase 3 of NTPC limited as we have mentioned above, the following more changes have been seen in the same phase history:
These were the present current scenario major changes that we have been seen in the NTPC limited corporation in the current phase from 2005 to the present.
Subsidiaries of NTPC limited and their purposes
NTPC limited introduced its three subsidiaries for some specific reasons, which we are going to specify in this part of the history section only. Following we are the subsidiary name of NTPC limited with the purpose of introducing it:
Operations: NTPC limited
In this section, we are going to discuss the headquarters of NTPC limited as well the operation locations. As we have read earlier in the introduction part that NTPC limited is only operating in India but from other countries too, and these other countries are Bangladesh and Sri Lanka. If we go by the figures in the data, then we will figure out that NTPC limited operates from 70 different locations inside India as well as from two locations in Bangladesh and one location in Sri Lanka.
Headquarters of NTPC limited: As we have discussed the total operating locations of NTPC limited, we will now know about NTPC limited's headquarters (all the headquarters of NTPC limited is situated in India only). We will here provide you with a list of all the eight regional headquarters of NTPC limited with the state name in which the regional headquarters is situated.
Following is the list of all the regional headquarters of NTPC limited situated in India:
These are the eight operational headquarters of NTPC limited in India, and as we can see in the table that one of the headquarter is established by NTPC limited in New Delhi, India is only for hydropower plants of it. And, all the matter and disputes related to any hydropower plant of the company is solver here only by the respective authorities of NTPC limited. Other than this, we can also observe from the table that the headquarters of the NTPC limited is distributed according to the zonal parts of India, i.e., Eastern, Southern, Western and Northern.
Generation of power and schedule dispatching: Generation of power from all the power stations as well as scheduling and dispatching of all the power generating stations which are owned by National Thermal Power Corporation Limited is done by respective regional load dispatch scheduling centres. These respective regional load scheduling and dispatch centres are apex bodies that have to ensure integrated operations of the power generation and grid system in all the respective regions. All these respective regional load scheduling and dispatch centres come under POSOCO (Power System Operation Corporation Limited).
Future goals of NTPC limited
We have discussed the history of NTPC limited in the previous section of this article. In this section, we will be talking about the present scenario and future goals of NTPC limited and how it is planning to move forward and about its development in the upcoming years.
NTPC limited is a big and growing company, and so its future plans are. NTPC limited have developed a long-term plan to grow more and become a power generation company with a total capacity of 128000 MW by the year 2032. This public sector company is also aiming or have a long-term plan to reduce its dependency on fossil fuel capacity mix power generation to 56% by the year 2032. It is already on an expansion spree for big developments to meet the power requirements of the country. NTPC Limited has already achieved the target of adding 14,058 MW power generation capacity power plants from Fiscal year 13 to Fiscal year 17 (12th 5-year plan). In this target, it has achieved the milestone of adding:
NTPC limited have also planned to go global and make its presence in the global market too.
These are some of the future as well as ongoing plans of the NTPC limited. We have mentioned here all the long-term as well short-term plans and future goals of NTPC limited by benchmarking the year 2015.
Employees in NTPC limited
In this section of the article, we are going to discuss the employees of the company, i.e., total employees present in the company, and we will talk about them on the basis of the data available to us. As per the latest data for the year 2021, NTPC limited approximately 20 thousand employees (a total of 19,918) as of 31st March 2021.
The attrition rate, according to the company's officials, is less than 1% for the fiscal year 2021, i.e., 2020-21, as they are trying to main attrition rate less than 1% every year. According to the data available for the fiscal year 2015 (from 2014 to 2015), the attrition rate for NTPC limited was 1.35% which included employees working for joint ventures power plants as well as subsidiaries power plant and trainee employees. As per the data, the Ratio of Man MW of this public sector company has been fallen over the past few years, i.e., It was 0.77 in the fiscal year 2011, and it had fallen to 0.61 in the fiscal year 2015.
Criticism faced by NTPC limited
In the past, there have many cases when NTPC limited have faced major criticism by the media as well as the local people. These criticisms that were faced by this public sector company has been increased over the year, and we will look at some of the cases where NTPC limited have faced huge criticism (both by the local people of the area as well as by the media) in this section of the article.
Following were some of the highlighted instances where NTPC limited have faced huge criticism in the past:
Acquisition of Land in Tribal Areas: NTPC limited (as well as other PSUs in India) have been allotted land in the tribal and rural area across the country by the central government as well as various state government to set up power generation plants and its related or required infrastructure in that allocated area. Many times the land which is allocated by the state or central government to this public sector company and other PSUs as well have been allotted through the various Land acquisition acts passed by the governments (Central as well as state government). When the land acquisition act for the land allocated is enacted by the government, then it also places a liability on the respective government and PSUs as well to take proper actions for a well-settled rehabilitation of the dispatched residents of that rural or tribal area. If the liability of proper rehabilitation of dispatched residents of the allocated area is not fulfilled, then the Government, as well as the PSUs to which land is allocated, are criticized by the people as well as media. Also, in many tribal or rural areas, local residents have opposed the forcible acquisition of their land where the land acquisition act has been passed or even proposed through the laws by the respective government, as they were not sure or satisfied with the rehabilitation planned for them by the government.
Controversies with the projects of NTPC limited: There are many projects of NTPC limited where controversies have been seen between this public sector company and the government due to many reasons, and because of this, it has faced a lot of criticism in the past. Following are the projects of NTPC limited in which controversies have been clearly seen between this public sector company and the government:
Because of all the examples mentioned above and many other cases, we can clearly see why NTPC limited has been criticized so much in the past and why many people raised voices against it and its plans on many occasions. So, here we have seen the occasions as well as the reasons that why NTPC limited have been criticised so many times in the past.
Listing and equity shareholdings of NTPC limited:
NTPC limited had first listed on BSE and NSE in the year 2004, and currently, the equity shares of this public sector company are listed on the National Stock Exchange of India, where it is a constituent of the S&P CNX Nifty and the Bombay Stock Exchange (BSE) where it is a constituent of the BSE SENSEX Index.
Below we are providing you with a table in which we have listed who is holding how many equity shares in the NTPC limited. Look at the following table to understand the equity shares distribution in the NTPC limited:
By looking at the above table, we can clearly understand the distribution of equity shares of NTPC limited among different Shareholders, and we can conclude that different financial institutions are the second-highest shareholders of the company and FIIs are the third-highest shareholders of the company after the government of India. Other than this, we can also conclude that only 2% approximately of the equity shares of NTPC limited are held by the common people.
In this article, we have read about NTPC Limited, which is a public sector company and previously known as National Thermal Power Corporation Limited of India. We had a look at the detailed history of NTPC limited in a phased manner and how it is developed so much over the years. Then, we looked at the future goals of the company and operations of the company in different parts of India as well as in other countries too. Then, we looked at the subsidiaries of the NTPC limited and how much stake NTPC limited holding in them. After that, we looked at the instances where criticism faced by the company in the past and what were the reasons behind it. In last, we have concluded the article with understanding the distribution and listing of shareholdings of NTPC limited over the years and how it is distributed among different shareholders.