DEVELOPMENT

PROJECTS
BUSINESS

Vadodara-Bharuch Tollway Limited

The Development Projects business segment

comprises:
L&T INFRASTRUTURE
DEVELOPMENT PROJECTS
a) Infrastructure projects executed through its
joint venture company, L&T Infrastructure
LIMITED (L&T IDPL)
Development Projects Limited and its
subsidiaries and associates (the L&T IDPL Overview:
Group)
L&T Infrastructure Development Projects Limited
b) The Hyderabad Metro Rail project, executed (L&T IDPL) is a pioneer of the Public-Private
through its subsidiary, L&T Metro Rail Partnership (PPP) model of development in India,
Hyderabad Limited which involves the development of infrastructure
projects by private-sector players in partnership
with the Central and State Governments. Since
c) Power development projects executed
its inception in 2001, the entity has completed
through its subsidiary L&T Power
landmark infrastructure projects across key sectors
Development Limited and its subsidiaries (the
like roads, bridges, transmission lines, ports,
L&T PDL Group)
airports, water supply, renewable energy and
urban infrastructure. It is one of India’s largest
The operations of the Development Projects
road developers, as measured by lane kilometres
business segment primarily involve the
under concession agreements signed with Union
development, operation and maintenance
and State Government authorities. Currently,
of basic infrastructure projects in the Public-
L&T IDPL has 10 operational road assets and the
Private Partnership (PPP) format, toll collection
Kudgi Transmission Project in its portfolio. It also
including annuity-based road projects, power
manages 5 operational road assets transferred to
development, power transmission and providing
Indinfravit Trust, an InvIT that the entity sponsored
related advisory services.

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 MANAGEMENT DISCUSSION AND ANALYSIS DEVELOPMENT PROJECTS BUSINESS ANNUAL REPORT 2019-20

Interstate Road Corridor Limited

and launched in May 2018 as the first privately Business Environment

placed InvIT in India, with 77% holding from an
international pension fund and insurance investors. Transportation sector
Considering that the private sector has moved away from
Two decades of extensive experience of working Build Operate Transfer and the response to Hybrid Annuity
with governments, multi-lateral agencies, Model projects has also been dwindling, NHAI has focussed
international and domestic financial institutions on the Toll Operate Transfer (TOT) model. During the year,
and corporate entities has helped the business the entity associated itself with the National Infrastructure
to develop proven competencies in Viability & Investment Fund (NIIF) and the CPPIB for their consortium
Assessment, Financial Closure, Project Management, bid for TOT Bundle 3.
Operations & Maintenance and Portfolio
Management of Infrastructure Assets across various In order to drive the Digital India vision of Electronic
sectors. Toll Collection (ETC), the Ministry of Road Transport &
Highways (MoRTH), with effect from December 2019,
The Canada Pension Plan Investment Board (CPPIB) made the Fastag mandatory for all commercial and private
made substantial financial investments in L&T IDPL vehicles plying on NHAI roads. The entity successfully led
in two investment tranches, in December 2014 and the Fastag implementation on some of the busiest stretches
December 2015 respectively. This is the first direct in the country. ETC collections, as a proportion of total toll
private investment by the largest Canadian pension collections, went up from 27% in March 2019 to 72%
fund into an Indian Infrastructure Development in March 2020. This has increased user convenience and
company. During the year, on conversion of reduced cash-handling issues.
Compulsorily Convertible Preference Shares, the
CPPIB became a 49% equity holder and L&T’s stake
in L&T Infrastructure Development Projects Ltd (L&T
Transmission Lines
IDPL) has been diluted to 51%. During the year, the entity resumed bidding activities
and participated in five bids under the TBCB (Tariff-Based
Competitive Bid) framework.

The Ministry of Power, GoI, Central Electricity Authority

(CEA) and Solar Energy Corporation of India have

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Kudgi Transmission Limited

collectively decided to construct a Green Energy Corridor the Transmission Service Agreement of the project, the key
across the country to make India grid-ready for upcoming aspect is its availability. In FY 2019-20, Kudgi Transmission
power generation through renewable energy sources. Line (KTL) achieved an availability of 99.99% and thereby
CEA has approved 24 projects worth R 32,000 crore for earned incentives. The maintenance cost of KTL was also
bidding under TBCB. However, the timelines for bidding are reduced substantially as compared to the previous year.
uncertain due to COVID-19.
Significant Initiatives
Major Achievements During FY 2019-20, remarkable advancements were made
MoRTH has instituted the ‘National Highways Excellence towards digitalisation. Ahead of Fastag being called in
Awards’ to recognize the country’s best-performing road mandatorily, the business proactively envisaged the strong
assets and toll plazas, both concessionaire-managed and need to push IT infrastructure to facilitate an enhanced user
NHAI-managed. For the year 2019-20, Krishnagiri Thoppur experience and efficient operations. This resulted in the
Tollways Ltd (KTTL) managed by IDPL won the Silver award, development of the completely automated and centrally
while several others owned/managed by IDPL figured in monitored Fastag control system. This system enables the
various categories as Champions. These road assets are automatic generation of all related transactional reports
highlighted in the annual calendar and dossier of MoRTH, and expeditious notification of class discrepancy evidence
which are widely distributed across the country. to the acquiring bank, arresting revenue leakages.

In a road subsidiary for a project terminated in 2015, The various other Digital Initiatives across the functions
there was a favourable arbitration award for termination include:
payments. Another road subsidiary received a favourable
arbitration award for a construction claim. • End-to-End Integrated new age SAP S4 Hana
replacing existing ERP
The entity actively supported Indian Highways Management During the year, the project for implementing SAP S4
Company Limited (IHMCL), the agency responsible to carry Hana 1909 along with various other bolt-on products/
out Electronic Tolling, at various policy level discussions, applications, such as SAP Ariba, Vendor Portal, Business
SOPs and operational experiences to enhance the on Maps, Mobile Application for route operations and
applicability and efficacy of Fastag across the nation. In O&M teams, etc., were initiated. All these applications,

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 MANAGEMENT DISCUSSION AND ANALYSIS DEVELOPMENT PROJECTS BUSINESS ANNUAL REPORT 2019-20

Sambalpur Rourkela Tollway Limited

once implemented, will be integrated with SAP, and will conserving the environment. EHS is one of the essential
enhance the speed of reporting and response. pillars of a good and robust corporate governance
structure.
This initiative also includes the implementation of 17+
SAP modules, some of which are first of their kind in To facilitate the implementation of the EHS policy,
India to be implemented in an integrated way. Go-Live is various Standard Operating Procedures (SOPs) have
planned by August 2020. been formulated defining individual responsibilities and
• Human Resources procedures relating to Environmental, Health and Safety
matters.
In the current financial year, the entire spectrum of HR
operations has moved to a sophisticated application
A system called Route Operations Management System
called EmployWise, which covers the entire employee
(ROMS) has been implemented, which enables immediate
life cycle from ‘Hire to Retire’. It is on the cloud (SAAS -
reporting of any incident to the project head and functional
Software as a service).
head concerned in the form of a Preliminary Accident
• Security-related Implementation Information Report (PAIR) and Final Accident Information
Report (FAIR).
Numerous measures have been taken to tighten security,
and various tools and components have been introduced
Kudgi Transmission Line (KTL) has successfully achieved a
and implemented. Network segregation has been done
full safe year for all its manpower.
at all toll plazas as well. People were enabled to work
from home in a secure way via secured VPN, end-point
With the onset of the COVID-19 pandemic, the entity
security, etc.
enhanced its preparedness early on. A range of preventive
• Kudgi Transmission Ltd (KTL) has gone completely digital measures were undertaken in line with the guidelines under
in its Operations and Maintenance Government advisories/regulations. The entity has also
been an early mover in rolling-out a detailed Operations
Environment, Health and Safety SOPs for not only dealing with the contagion but also
The business is committed to providing a safe and healthy ensuring business continuity, including establishing a
workplace for their employees and stakeholders and to concrete Disaster Recovery Plan.

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Sambalpur Rourkela Tollway Limited

Human Resources Getting these potential future leaders to understand the

The business has well-laid practices in terms of recruitment importance of communication for influence, business
of talent and retention. Employees are kept engaged by thinking and developing managerial acumen are integral
providing access to learning opportunities, Development parts of this learning journey.
Centres, challenging business assignments, and individual
need-based specific development interventions. The Risks and Concerns
Development Centre is a systematic and objective method Traffic & Tariff are key factors in the Toll business. In the
to measure competence to provide insights into the aftermath of COVID-19, the nature of recovery across
strengths and development areas of individuals. various sectors, such as automobiles, mining, construction,
exports, etc., will play a pivotal role in determining the
The business has in place a Rewards & Recognition (R&R) traffic growth characteristics across the portfolio. Further,
programme to drive performance and boost the morale in some of the projects, the annual toll tariff revisions
of the employees spanning across the categories. ‘An are based on the wholesale price index (WPI). Lower
engaged workforce will be a very productive workforce’ is WPI coupled with lower traffic could lead to lower toll
the principle based on which the R&R programme has been collections. The impact of the pandemic on toll collections
devised. is being addressed by the business by resorting to
provisions under the Concession Agreements under force
With the aim of building future leaders, the business majeure.
has devised a 9-month long learning programme, called
‘Capability Capitalization’, for a select few potential future The mandatory implementation of Fastag has led to
leaders. This journey aims to mould an employee into a various challenges, such as plaza-level cyber security,
well-rounded leader. The sessions comprise psychometric data management and timely discrepancy reporting to
tools to enhance self-awareness, awareness of the acquiring banks. However, the entity proactively recognised
ecosystem, etc. Tools are administered to further enhance the associated risks and reinforced the IT infrastructure
the Emotional Intelligence quotient. Change orientation, requirements and SOPs. This resulted in the seamless shift
mastering the change curve, team behaviour using tools towards Fastag implementation across the SPVs. Currently,
such as Belbin and Business Simulations are also covered. the entity hosts a completely digitalised and centrally
monitored in-house data management and monitoring

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 MANAGEMENT DISCUSSION AND ANALYSIS DEVELOPMENT PROJECTS BUSINESS ANNUAL REPORT 2019-20

Hyderabad Metro Rail - Hitec City line

framework for Fastag transactions, which is thoroughly The Ministry of Finance (Department of Expenditure),
secured. Government of India has also issued a circular to provide
extension of concession period between 3 to 6 months.
Outlook Expeditious approval in the Change of Scope in contracts,
extension of Concession Period, and provision of Revenue
The Government of India intends to provide a strong thrust
Shortfall Loans are some of the immediate relief measures
to the Infrastructure sector via the National Infrastructure
mentioned in the memorandum published by MoRTH. In
Pipeline (NIP). Out of the total project capital expenditure
addition, certain SPVs of the entity have availed of the debt
of NIP, 19% ~ R 20 lakh crore would be spent on the
repayment moratorium announced by the RBI to take care
Transportation sector.
of immediate cashflow requirements.
Prior to COVID-19, toll revenue was expected to increase
The business has initiated necessary action and believes
to the tune of 6%. However, in the near term, the toll
that the impact will be substantially mitigated.
revenues are expected to contract as compared to the
previous year due to lower traffic growth and lower WPI.
COVID-19 has presented an unprecedented challenge, L&T METRO RAIL (HYDERABAD)
resulting in a nationwide lockdown and hence a sharp
decline in traffic across the country. This event has been LIMITED (L&TMRHL)
categorised as a force majeure event under the concession
agreement, the cashflow for the year will be stressed, and Overview:
hence cash conservation will be the key.
L&T Metro Rail (Hyderabad) Limited (L&TMRHL) is
The MoRTH has issued a memorandum providing relief a Special Purpose Vehicle (SPV) incorporated on
to contractors / developers of the road sector under the 24th August, 2010 to undertake the business to
‘Atmanirbhar Bharat’ Scheme and directing NHAI to construct, operate and maintain the Metro Rail
provide force majeure relief to concessionaires impacted System including the Transit Oriented Development
by COVID-19. A separate committee is being set up (TOD), in Hyderabad under the Public Private
under the chairmanship of Director General (RD) & Partnership model on Design, Build, Finance,
Special Secretary to suggest further steps in this regard. Operate and Transfer (DBFOT) basis. L&TMRHL

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Hyderabad Metro Rail on the Viaduct

entered into a Concession Agreement with the During the year, the construction of 1.28 million sq.
erstwhile Government of Andhra Pradesh on 4th ft. of Transit Oriented Development (TOD) consisting
September, 2010. of 4 malls and an office block has been completed
and has commenced commercial operations.
The Concession Agreement includes construction of Construction work of 0.5 million sq. ft. of office
71.16 km of elevated metro rail corridor and rights space at Raidurg site is currently under way. The
for real estate development of 18.5 million sq. ft., entity is chalking out plans for phased development
with strategically located land parcels interspersed of the balance TOD.
in prime city locations adjoining metro stations
and metro corridors. The concession period of
the project is 35 years, from the appointed date
Business Environment
of 5th July, 2012 including the initial construction The Hyderabad Metro Rail is the world’s largest metro
period of 5 years. This is extendable for a further project in public-private partnership mode. It brings
period of 25 years, subject to fulfilment of certain together ‘best in class’ resources and technology in every
conditions by the SPV as set out in the Concession aspect of the project – stations, rolling stock, track work,
Agreement. depots, AFC, power supply, traction and SCADA system,
signalling and train control systems and telecom systems.
As per the Concession Agreement (CA), the
scheduled Commercial Operation date (COD) for Metros are an environment-friendly, safe and punctual
the project was 5th July, 2017. However, due to mode of transport. They ease commuting in densely
delays in providing required RoW and confirming populated cities and towns. Given the population density of
alignment changes by the Government, extension Hyderabad, L&TMRHL has been working on various value-
of the COD to 30th June, 2020 was approved. added initiatives to minimize the commuters’ pain points,
L&TMRHL completed execution of the project such as last-mile connectivity, digital ticketing, mobile apps,
well ahead of the extended time granted. etc., which ensure higher ridership of the metro system.
L&TMRHL completed commissioning of the entire Establishing successful last-mile connectivity is a challenge,
stretch progressively, with the last stage getting and discussions with the Government are in progress to
commissioned in February 2020. The entire project intensify steps to this end.
is now operational.

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 MANAGEMENT DISCUSSION AND ANALYSIS DEVELOPMENT PROJECTS BUSINESS ANNUAL REPORT 2019-20

Hyderabad Metro Rail Uppal Depot and Nagole Station

However, with the onset of the COVID-19 pandemic, the Revenue Reconciliation between Automatic Fare Collection
environment has been impacted in the short term. The System Reports Vs Payment Channel Reports Vs Bank
entity is looking at various innovative business models to Reports. To make the metro travel easy and trouble-free,
overcome this challenge. it is coming up with the EMV-based Open Loop Ticketing
(Euro Master Visa (EMV) card) solution for metro
Significant Initiatives commuters.
• Robust and affordable last mile connectivity initiatives to
enhance the ridership L&TMRHL has started using Business Intelligence IT
tools like Alteryx and Tableau for both business and
• Launched corporate shuttle services from metro stations
passenger data analysis/interpretation, which will improve
to corporate offices
Management decisions.
• All metro stations have a bike-rental facility
L&TMRHL has put in place a process for automation of
• Exploring non-fare revenue generating options, viz. refunds to customers by developing an auto verification
royalty amount from QR ticketing partners, consultancy process of the refund data using software tools. This
services for other metros, cross-selling of products to software tool verifies items of refund reported by the
commuters Automatic Fare Collection System (AFC) with the smart card
• Tied up with ticketing partners like Goibibo, MakeMyTrip, history data base. The tool helps minimising the process
Phonepe, Paytm, etc. and launched Mobile Ticketing (QR time and facilitates timely refunds to customers.
Code generation) solution for the convenience of metro
commuters Awards and Recognition
• Provision of skywalks from the Metro stations to the Prestigious awards received by L&TMRHL during FY
adjoining TOD malls to enhance convenience and 2019-20 include:
business potential
1. DCD National Awards 2019 – Hybrid IT Project of the
Digitalisation Year Award
Easing the pressure of reconciling huge, heterogeneous 2. Institute of Economic Studies – Enhancing the Image of
data on fare collection, L&TMRHL has automated Fare Metro Rails in India - Globally

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Sharp bend of the Viaduct

3. DCD Global Awards 2019 – Hybrid IT Project of the Risks and Concerns
Year Award With the Metro fully commissioned, the risks related to
construction phase are averted, except for the financial risks
4. CSO 100 Awards 2019 – the Information Security of close out of pending claims. While the operational risks
Project has added significant benefit to the now kick in viz. safety of passengers and assets, bus mode
organization, its employees, associates and vendors of transport being preferred, considering the connectivity
and a drop in commuters in the feeder industry, especially
Environment, Health and Safety IT.
A mass transit system helps move large numbers of
commuters away from private vehicles, helping reduce The business has a robust risk mitigation process and
the carbon footprint of the city. It helps reduce the air several initiatives have been taken to avert / minimise the
pollution, since it operates on electricity and hence there impact of various risks, including:
is no emission of greenhouse gases. It also helps reduce
sound pollution due to the efficiency of the coaches and • The appointment of Keolis, a reputed O&M operator
the advanced engineering that has been used for building from France, with experience of providing safety
the track, viaduct as well as metro coaches. Further, the solutions
smart-card option reduces paper consumption.
• Discussions with local bus transport authorities,
impressing upon them the need to work complementarily
The Automatic Train Protection (ATP) System implemented
continuously monitors safe train operations. Automatic • Thrust on developing additional revenue sources
Train Supervision (ATS) pre-empts unscheduled interruptions
of train services. Station equipment such as Computer- However, the COVID-19 pandemic in the end of the
based Interlocking (CBI), wayside ATP, etc., are vital financial year is expected to have an impact on the
signalling equipment and ensure safe and uninterrupted commuters, additional costs and real estate monetisation.
train operations. Passenger Emergency Stop Plungers are The business is working on ways to facilitate contactless
provided on each platform and in the Station Control Room travel, increase focus on sanitisation of the metro system,
(SCR) to stop a train immediately in case of an emergency. etc.

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 MANAGEMENT DISCUSSION AND ANALYSIS DEVELOPMENT PROJECTS BUSINESS ANNUAL REPORT 2019-20

Rajpura project at the cusp of completion in December 2013

Outlook Strategy alignment through innovative business models to

With the entity getting into first full year of operation of retain the competitive advantage in TOD and station retail
the metro, things had started looking up, aided by the developments is a focus area.
planned partial monetisation of the real estate. However,
the pandemic has brought in the challenges of: L&T POWER DEVELOPMENT
• Commuters preference for avoidance of mass transit GROUP
• ITES commuters’ preference to continue to Work from
Home Overview:
L&T Power Development Limited, a wholly-owned
• Drop in advertisement income due to curtailment of subsidiary of L&T, is engaged in developing,
expenses by various corporates operating and maintaining power generation
• Drop in oil prices, making alternative modes of transport assets. The portfolio comprises projects in thermal
more attractive and hydel power generation projects aggregating
to 1499 MW. In the hydel sector, L&T Uttaranchal
• TOD revenues impacted by overall business sluggishness Hydropower Limited is executing a hydel power
project of capacity 99 MW in the state of
• Major investments in realty sector may be on hold in the Uttarakhand, which is at an advanced stage of
short to medium term construction and is expected to be commissioned
All efforts are being taken to make Hyderabad Metro the in FY 2020-21. The hydel projects in L&T Himachal
safest and cleanest transportation mode keeping in mind Hydropower and L&T Arunachal Hydropower
have been shelved. In the thermal sector, Nabha
the current pandemic situation. This gives L&TMRHL the
Power Limited owns and operates a 2 X 700 MW
opportunity to shift the new customer segment to Metro
supercritical thermal power plant at Rajpura, Punjab.
rail from other transportation modes like bus, auto, etc.
Also, contactless travel system integrated with other
transport modes focus on making travel safe.

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Rajpura 2x700 MW Supercritical Technology based Thermal Power Plant

Nabha Power Limited (NPL) NPL is the lowest cost thermal power producer within
Punjab, with benchmark-setting operational efficiency.
Business Profile
NPL is operating a 2 X 700 MW supercritical thermal
Business Environment
power plant at Rajpura, Punjab. 100% of the power
generated from this plant is tied-up to Punjab State Power India’s Installed Capacity rose to 3,70,106 MW in FY 2019-
Corporation Limited (PSPCL) for a period of twenty-five 20, a marginal increase of 1.41% over the previous year,
years upto 2039 under a Power Purchase Agreement of which the Installed Capacity of thermal power plants
(PPA). The plant is the first indigenously manufactured is 55%. Dependence on the thermal generation is clearly
supercritical power plant, built using technology sourced reflective, as it fulfils 71% of the total power requirement
from Mitsubishi, Japan. in the country.

The plant sources its fuel from South Eastern Coalfields The Average Power Demand in Punjab was 6486 MW in FY
Ltd. (SECL), a subsidiary of Coal India Limited, under a 2019-20 and NPL contributed to 14% of the demand. The
20-year Fuel Supply Agreement (FSA). NPL has also secured Average Power Purchase rate was R 3.60 per KWh in FY20
approvals to arrange coal from alternative sources to make vs R 3.48 per KWh in FY19.
up for any shortage in supply of coal under the FSA. The
Bhakra-Nangal distributary is the perennial source of water Third Party Sampling and testing through CIMFR (Central
for the plant under an allocation by the State Government. Institute of Mining and Fuel Research) has been operating
The plant is operated by an in-house team of experienced quite well to mitigate the grade variation issues in linkage
operations and maintenance professionals. coal.

The power plant has been running successfully for over Unit 1 was under a planned shutdown since Feb. 1,
six years with an availability of over 85 % during FY20. 2020 for 77 days for the first major capital overhaul in
NPL has been the most reliable source of power for the which 1004 personnel were involved. The task involved
state of Punjab and has supported its requirements with rectification and replacement of various equipment under
uninterrupted supply during the peak season also. turbine, boiler, electrostatic precipitator.

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 MANAGEMENT DISCUSSION AND ANALYSIS DEVELOPMENT PROJECTS BUSINESS ANNUAL REPORT 2019-20

Aerial view of cooling towers, Rajpura Thermal Power Plant

During the year, in order to comply with the emission • During the year, NPL was awarded the following awards:
compliance norms the construction work of Flue Gas
Desulphurisation has been awarded to L&T Power, who • National Energy Leader Award, CII
emerged as a successful bidder in the competitive bidding • Excellent Energy Efficient Unit Award, CII
process.
• Winner - Water Management and Ash Handling,
During the COVID-19 lockdown, NPL, being classified Mission Energy Foundation
as delivering an essential service, maintained business
• Finalist, Global Platts Energy Excellence Award S&P
continuity, while ensuring the health and safety of all
USA
its employees and contract staff. Various steps were
undertaken, including social distancing and following best • Gold Award, Grow Care India CSR Award 2019
safety practices with robust Standard Operating Procedure
(SOP). • Best Operating Thermal Power Generator, IPPAI Third
Consecutive Year
Major Achievements • National Best Employer Brands 2019
• Best Operational Performance: - Annual Plant Load Factor
(PLF): 71%, (All India Thermal Average: 56%) Significant Initiatives
• Reduction in costs through alternate sourcing, reverse
• Received a Favourable Order from Supreme Court on the engineering
washing charges petition and received partial payment
from PSPCL • Digital Initiatives
• Partial Favourable Order received from PSERC in imported • Implementation of Energy Management System
coal matter, clearing partial dues
• Management Dashboard upgradation
• Ensured Fuel Adequacy, as no lapsing despite flooding
of mines in Korba Coalfields of South Eastern Coalfields
Limited (SECL) and approval for imported coal

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Environment, Health and Safety The risk management policy of NPL provides for a
NPL is committed to generating reliable and environment- robust risk management framework which involves
friendly power under safe working conditions. A policy risk identification, assessment & evaluation, strategy &
on Quality, Environment, Health and Safety has been put mitigation, and monitoring and review mechanisms. NPL
in place. Emphasis is laid on continual improvement of has implemented multiple measures in each of the risk
processes and practices to achieve improved environmental, areas to ensure a proactive approach and timely mitigation.
health and safety performance. Training on HSE for
employees and stakeholders is undertaken on a regular Outlook
basis to foster a culture of health and safety. Due to the lockdown to contain spread of COVID-19,
power demand by industrial units and farmers in Punjab
Human Resources has dropped substantially since March 2020. PSPCL may
NPL has a team of 296 personnel including professionals prefer to optimize its power purchase costs by purchasing
experienced in the field of operations and maintenance power from the cheaper sources as the power exchange
of power plants and other support staff. NPL focusses prices have dropped substantially.
on leadership development and communication skills.
Emphasis is laid on participation in various training and NPL is likely to remain the lowest cost thermal power
development programmes organized internally and producer amongst the Independent Power Producers (IPPs)
externally. in the state with an expected plant load factor of 73% in
FY21.
Risks and Concerns On the fuel side, coal supply continues to be challenging.
As a private developer, NPL faces the following major risks: The GoI and GoP are pushing for reduction in coal imports
to reduce the cost of power. Non-approval of imported coal
• Delay in plant scheduling – increase in yard loss may have adverse implications. Higher usage of RoM coal
may lead to higher maintenance and auxiliary consumption
• Delay in receipt of payment from DISCOM for monthly
and lower boiler efficiency.
bills
• Dispute for force majeure with DISCOM NPL is geared to address the challenging times and
has been taking proactive steps like deferring capex/
• Coal quality from different mines modifications/non-routine purchases, negotiating better
• Flue Gas Desulphurisation environmental compliances credit from suppliers of coal, etc.

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