STATEMENT OF UNAUDITED STANDALONE & CONSOLIDATED FINANCIAL RESULTS FOR THE QUARTER AND SIX MONTHS ENDED 30 SEPTEMBER 2020

STATEMENT OF UNAUDITED STANDALONE FINANCIAL RESULTS FOR THE QUARTER AND SIX MONTHS ENDED 30 SEPTEMBER 2020

(Crore)

Sl. No.	Particulars		Quarter ended 30.09.2020 (Unaudited)	Quarter ended 30.06.2020 (Unaudited)	Quarter ended 30.09.2019 (Unaudited)	Six months ended 30.09.2020 (Unaudited)	Six months ended 30.09.2019 (Unaudited)	Year ended 31.03.2020 (Audited)
1	2		3	4	5	6	7	8
1	Income
	(a) Revenue from operations		24677.14	23453.46	22764.57	48130.60	46957.16	97700.39
	(b) Other income		1346.19	567.54	893.66	1913.73	1219.88	2778.02
	Total income (a+b)		26023.33	24021.00	23658.23	50044.33	48177.04	100478.41
2	Expenses
	(a)Fuel cost		13038.53	11508.18	12912.21	24546.71	26786.54	54241.82
	(b) Electricity purchased for trading		689.90	860.74	568.85	1550.64	1353.33	2776.44
	(c) Employee benefits expense		1346.46	1287.77	1137.15	2634.23	2332.96	4925.60
	(d) Finance costs		1772.81	2082.52	1618.99	3855.33	3184.25	6781.97
	(e)Depreciation and amortisation expense		2529.42	2529.74	2123.14	5059.16	4174.09	8622.85
	(f)Other expenses		2418.85	2051.69	1800.17	4470.54	3685.76	8663.81
	Total expenses (a+b+c+d+e+f)		21795.97	20320.64	20160.51	42116.61	41516.93	86012.49
3	Profit before exceptional items, tax and regulatory deferral account balances (1-2)		4227.36	3700.36	3497.72	7927.72	6660.11	14465.92
4	Exceptional items-(income) / expense (Refer Note 8)		560.43	802.57	-	1363.00	-	-
5	Profit before tax and regulatory deferral account balances (3-4)		3666.93	2897.79	3497.72	6564.72	6660.11	14465.92
6	Tax expense:
	(a) Current tax		678.03	522.72	498.21	1200.75	1194.61	5153.46
	(b) Deferred tax		(169.02)	707.45	604.82	538.43	978.63	4028.49
	Total tax expense (a+b)		509.01	1230.17	1103.03	1739.18	2173.24	9181.95
7	Profit before regulatory deferral account balances (5-6)		3157.92	1667.62	2394.69	4825.54	4486.87	5283.97
8	Net movement in regulatory deferral account balances (net of tax)		346.88	802.54	867.75	1149.42	1378.36	4828.84
9	Profit for the period (7+8)		3504.80	2470.16	3262.44	5974.96	5865.23	10112.81
10	Other comprehensive income
	Items that will not be reclassified to profit or loss
	(a)	Net acturial gains/(losses) on defined benefit plans	(59.16)	(59.20)	(64.71)	(118.36)	(128.71)	(346.04)
	(b)	Net gains/(losses) on fair value of equity instruments	(1.14)	11.70	(13.08)	10.56	(20.58)	(41.64)
	Income tax on items that will not be reclassified to profit or loss
	(a)	Net acturial gains/(losses) on defined benefit plans	10.34	10.34	8.70	20.68	22.49	60.46
	Other comprehensive income for the period (net of tax)		(49.96)	(37.16)	(69.09)	(87.12)	(126.80)	(327.22)
11	Total comprehensive income for the period (9+10)		3454.84	2433.00	3193.35	5887.84	5738.43	9785.59
12	Paid-up equity share capital (Face value of share10/- each)		9894.56	9894.56	9894.56	9894.56	9894.56	9894.56
13	Paid-up debt capital$					158685.95	137640.75	152693.62
14	Other equity excluding revaluation reserve as per balance sheet					106917.17	100294.97	103674.88
15	Net worth*					116246.75	109529.71	112980.96
16	Debenture redemption reserve					6953.93	7469.93	7011.43
17	Earnings per share (of10/- each) - (not annualised) (including net movement in regulatory deferral account balances): Basic and Diluted (in)		3.54	2.50	3.30	6.04	5.93	10.22
18	Earnings per share (of10/- each) - (not annualised) (excluding net movement in regulatory deferral account balances): Basic and Diluted (in)		3.19	1.69	2.42	4.88	4.53	5.34
19	Debt equity ratio					1.37	1.26	1.35
20	Debt service coverage ratio (DSCR)					1.80	2.06	2.07
21	Interest service coverage ratio (ISCR)					4.37	4.43	4.45

$ Comprises long term debts
* Excluding Fly ash utilization reserve
See accompanying notes to the standalone financial results.

STANDALONE STATEMENT OF ASSETS AND LIABILITIES

(Crore)

STANDALONE SEGMENT-WISE REVENUE, RESULTS, ASSETS AND LIABILITIES FOR THE QUARTER AND SIX MONTHS ENDED 30 SEPTEMBER 2020

(Crore)

The operations of the Company are mainly carried out within the country and therefore, there is no reportable geographical segment.

STANDALONE STATEMENT OF CASH FLOWS

(Crore)

Notes to Standalone Financial Results:

1. The above standalone financial results have been reviewed by the Audit Committee of the Board of Directors in their meeting held on 31 October 2020 and approved by the Board of Directors in their meeting held on 2 November 2020.
2. The Joint Statutory Auditors of the Company have carried out the limited review of these standalone financial results as required under Regulation 33 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended.
3. 1. 1. The CERC notified the Central Electricity Regulatory Commission (Terms and Conditions of Tariff) Regulations, 2019 vide Order dated 7 March 2019 (Regulations, 2019) for determination of tariff for the tariff period 2019-2024. Pending issue of provisional/final tariff orders with effect from 1 April 2019, capacity charges are billed to beneficiaries in accordance with the tariff approved and applicable as on 31 March 2019, as provided in Regulations, 2019. In case of new projects, which got commercialised from 1 April 2019 and projects where tariff approved and applicable as on 31 March 2019 is pending from CERC, billing is done based on capacity charges as filed with CERC in tariff petition. Energy charges are billed as per the operational norms specified in the Regulations 2019. The amount provisionally billed for the quarter and six months ended 30 September 2020 is23,260.17 crore and44,878.28 crore respectively (previous quarter and six months21,809.57 crore and44,934.10 crore).
      2. Sales for the quarter and six months ended 30 September 2020 have been provisionally recognized at23,540.27 crore and45,128.46 crore respectively (previous quarter and six months21,860.88 crore and44,886.54 crore) on the said basis.
   2. Sales for the quarter and six months ended 30 September 2020 include41.49 crore and581.73 crore respectively (previous quarter and six months68.07 crore and56.43 crore) pertaining to earlier years on account of revision of energy charges due to grade slippages and other adjustments.
   3. Sales for the quarter and six months ended 30 September 2020 also include21.85 crore and42.24 crore respectively (previous quarter and six months12.39 crore and35.26 crore) on account of deferred tax materialized which is recoverable from beneficiaries as per Regulations, 2019.
   4. Revenue from operations for the quarter and six months ended 30 September 2020 include704.76 crore and1,585.73 crore respectively (previous quarter and six months601.18 crore and1,425.91 crore) on account of sale of energy through trading.
4. The environmental clearance (“clearance”) granted by the Ministry of Environment and Forest, Government of India (MoEF) for one of the Company's project consisting of three units of 800 MW each, was challenged before the National Green Tribunal (NGT). The NGT disposed off the appeal, inter alia, directing that the order of clearance be remanded to the MoEF to pass an order granting or declining clearance to the project proponent afresh in accordance with the law and the judgement of the NGT and for referring the matter to the Expert Appraisal Committee ("Committee") for its re-scrutiny, which shall complete the process within six months from the date of NGT order. NGT also directed that the environmental clearance shall be kept in abeyance and the Company shall maintain status quo in relation to the project during the period of review by the Committee or till fresh order is passed by the MoEF, whichever is earlier. The Company filed an appeal challenging the NGT order before the Hon’ble Supreme Court of India which stayed the order of the NGT and the matter is sub-judice. All the units of the project have been declared commercial in the earlier years. The carrying cost of the project as at 30 September 2020 is15,301.66 crore (31 March 2020:15,662.28 crore). Management is confident that the approval for the project shall be granted, hence no provision is considered necessary.
5. The Company is executing a hydro power project in the state of Uttrakhand, where all the clearances were accorded. A case was filed in Hon’ble Supreme Court of India after the natural disaster in Uttrakhand in June 2013 to review whether the various existing and ongoing hydro projects have contributed to environmental degradation. Hon’ble Supreme Court of India on 7 May 2014, ordered that no further construction shall be undertaken in the projects under consideration until further orders, which included the said hydro project of the Company. In the proceedings, Hon’ble Supreme Court is examining to allow few projects which have all clearances which includes the project of the Company where the work has been stopped. Aggregate cost incurred on the project up to 30 September 2020 is163.59 crore (31 March 2020:163.40 crore). Management is confident that the approval for proceeding with the project shall be granted, hence no provision is considered necessary.
6. An amount of754.89 crore (31 March 2020:749.01 crore) has been incurred upto 30 September 2020 in respect of one of the hydro power projects of the Company, the construction of which has been discontinued on the advice of the Ministry of Power (MOP), Government of India (GOI), which includes444.74 crore (31 March 2020:439.57 crore) in respect of arbitration awards challenged by the Company before the Hon'ble High Court of Delhi. In the event the Hon'ble High Court grants relief to the Company, the amount would be adjusted against provisions made in this regard. Management expects that the total cost incurred, anticipated expenditure on the safety and stabilisation measures, other recurring site expenses and interest costs as well as claims of contractors/vendors for various packages for this project will be compensated in full by the GOI. Hence, no provision is considered necessary.
7. The Company had entered into an agreement for movement of coal through inland waterways for one of its stations. As per the agreement, the operator was to design, finance, build, operate and maintain the unloading and material handling infrastructure for 7 years, after which it was to be transferred to the Company at1/-. After commencement of the operations, the operator had raised several disputes, invoked arbitration and raised substantial claims on the Company. Based on the interim arbitral award and subsequent directions of the Hon’ble Supreme Court of India, an amount of356.31 crore was paid upto 31 March 2019.
   Further, the Arbitral Tribunal had awarded a claim of1,891.09 crore plus applicable interest in favour of the operator, during the financial year 2018-19. The Company aggrieved by the arbitral award and considering legal opinion obtained, had filed an appeal before the Hon'ble High Court of Delhi (Hon'ble High Court) against the said arbitral award in its entirety.
   In the previous year, against the appeal of the Company, Hon'ble High Court vide its order dated 23 September 2019 held that subject to deposit of500.00 crore by the Company with the Registrar General of the Court within six weeks, execution of the impugned award shall remain stayed till the next date of hearing and upon handing over the entire infrastructure in terms of the contract by the operator to the Company, the Registrar General shall release the amount to the operator against a bank guarantee. The said amount was deposited with the Hon'ble High Court on 5 November 2019. Hon'ble High Court vide its order dated 8 January 2020 directed the parties to commence formal handing over of the infrastructure in the presence of appointed Local Commissioner and also directed release of500.00 crore to the operator by the Registrar General subject to the outcome of this application of the Company for formal handing over of the infrastructure. On 17 January 2020, unconditional bank guarantee was submitted by the operator to Registrar General and500.00 crore was released to operator by the Hon’ble High Court. As per orders of Hon'ble High Court, formal handing over of the infrastructure started on 20 January 2020 at the project site. However, due to certain local administrative issues initially and further due to COVID-19 pandemic, Local Commissioner’s visit has been deferred. The handing over of the infrastructure facility has not yet completed.
   Pending final disposal of the appeal by the Hon’ble High Court, considering the provisions of Ind AS 37 ‘Provisions, Contingent Liabilities and Contingent Assets’ and Significant Accounting Policies of the Company, provision has been updated by interest to38.01 crore as at 30 September 2020 (31 March 2020:37.92 crore) and the balance amount of2,084.40 crore (31 March 2020:2,014.84 crore) has been considered as contingent liability.
8. The Company is in the business of generation and sale of electricity which is an essential service as emphasized by the Ministry of Power, Government of India. During the outbreak of COVID-19, the Company has ensured the availability of its power plants to generate power and has continued to supply power during the period of lockdown. In line with the directions of MOP dated 15 & 16 May 2020, issued in accordance with the announcement of GOI under the Atmanirbhar Bharat Special Economic and Comprehensive package, to allow a rebate of between 20%-25% on the capacity charges during the lock down period subject to approval of the Board, an amount of1,363.00 crore has been approved by the Board, to be allowed during the year 2020-21. The entire amount has since been accounted for and disclosed as exceptional item.
   Further, Central Electricity Regulation Commission issued an order dated 3 April 2020 whereby it was directed that Late Payment Surcharge (LPSC) shall apply at a reduced rate of 12% p.a. instead of the normal rate of 18% p.a. on the payments becoming overdue during the period from 24 March 2020 to 30 June 2020 to contain the impact of COVID-19. Further, under the Atmanirbhar Bharat package, the Company has deferred the capacity charges to DISCOMS for the lockdown period for the power not scheduled to be payable without interest after the lock down period in three equal monthly installments. The impact on profit for the quarter and six months ended 30 September 2020 due to the reduction in LPSC rate and deferment of capacity charges, is not material.
   The Company has considered possible impact of COVID-19 in the preparation of financial results. The Management does not anticipate any material medium to long-term impact on the financial position of the Company. The Company will continue to closely monitor any material changes to the future economic conditions.
9. During the six months ended 30 September 2020, one thermal unit of 660 MW at Khargone has been declared commercial w.e.f. 4 April 2020.
10. During the quarter, the Company has paid final dividend of2.65 per share (face value of10/- each) for the financial year 2019-20.
11. The Board of Directors of the Company at its meeting held on 2 November 2020, has approved a proposal to buy-back upto 19,78,91,146 equity shares of the Company for an aggregate amount not exceeding2,275.75 crore being 2% of the total paid up equity share capital at115.00 per equity share from all equity shareholders of the Company as on the record date ,on proportionate basis, through a Tender Offer. The buy back of shares is expected to be completed by January 2021.
12. Formula used for computation of coverage ratios DSCR = Earning before Interest, Depreciation, Tax and Exceptional items /(Interest net of transfer to expenditure during construction + Scheduled principal repayments of the long term borrowings) and ISCR = Earning before Interest, Depreciation, Tax and Exceptional items/(Interest net of transfer to expenditure during construction).
13. Company has maintained required asset cover as per the terms of offer document/ Information Memorandum and/or Debenture Trust Deed, including compliance with all the covenants, in respect of the listed non-convertible debt securities.
14. Previous periods figures have been reclassified wherever considered necessary.

STATEMENT OF UNAUDITED CONSOLIDATED FINANCIAL RESULTS FOR THE QUARTER AND SIX MONTHS ENDED 30 SEPTEMBER 2020

(Crore)

Sl. No.	Particulars				Quarter ended 30.09.2020 (Unaudited)	Quarter ended 30.06.2020 (Unaudited)	Quarter ended 30.09.2019 (Unaudited)	Six months ended 30.09.2020 (Unaudited)	Six months ended 30.09.2019 (Unaudited)	Year ended 31.03.2020 (Audited)
1	2				3	4	5	6	7	8
1	Income
	(a) Revenue from operations				27707.76	26194.76	25708.98	53902.52	52595.20	109464.04
	(b) Other income				969.88	599.92	859.64	1569.80	1326.78	2908.54
	Total income (a+b)				28677.64	26794.68	26568.62	55472.32	53921.98	112372.58
2	Expenses
	(a)Fuel cost				13748.33	12101.92	13532.26	25850.25	28122.75	57185.62
	(b) Electricity purchased for trading				1180.00	1371.00	1221.06	2551.00	2664.10	5185.95
	(c) Employee benefits expense				1611.87	1536.68	1393.57	3148.55	2805.99	5830.48
	(d) Finance costs				2219.37	2465.25	1911.71	4684.62	3769.21	8116.85
	(e)Depreciation and amortisation expense				3014.83	2936.64	2531.22	5951.47	4960.52	10356.16
	(f)Other expenses				2655.28	2237.55	1990.38	4892.83	4071.95	9725.41
	Total expenses (a+b+c+d+e+f)				24429.68	22649.04	22580.20	47078.72	46394.52	96400.47
3	Profit before exceptional items, tax, Regulatory deferral account balances and Share of net profit of joint ventures accounted for using equity method (1-2)				4247.96	4145.64	3988.42	8393.60	7527.46	15972.11
4	Share of net profits of joint ventures accounted for using equity method				151.42	134.05	123.93	285.47	271.05	405.40
5	Profit before exceptional items, tax and regulatory deferral account balances (3+4)				4399.38	4279.69	4112.35	8679.07	7798.51	16377.51
6	Exceptional items-(income) / expense (Refer Note 9)				670.20	836.76	-	1506.96	-	-
7	Profit before tax and regulatory deferral account balances (5-6)				3729.18	3442.93	4112.35	7172.11	7798.51	16377.51
8	Tax expense
	(a) Current tax				761.14	583.29	603.99	1344.43	1372.26	5526.53
	(b) Deferred tax				(120.58)	803.29	642.41	682.71	990.39	3821.01
	Total tax expense (a+b)				640.56	1386.58	1246.40	2027.14	2362.65	9347.54
9	Profit before regulatory deferral account balances (7-8)				3088.62	2056.35	2865.95	5144.97	5435.86	7029.97
10	Net movement in regulatory deferral account balances (net of tax)				405.99	892.59	922.16	1298.58	1484.98	4872.01
11	Profit for the period (9+10)				3494.61	2948.94	3788.11	6443.55	6920.84	11901.98
12	Other comprehensive income
	(a)		Items that will not be reclassified to profit or loss
			(i)	Net actuarial gains/(losses) on defined benefit plans	(63.05)	(61.36)	(70.40)	(124.41)	(134.34)	(372.10)
			(ii)	Net gains/(losses) on fair value of equity instruments	(1.14)	11.70	(13.08)	10.56	(20.58)	(41.64)
			(iii)	Share of other comprehensive income of joint ventures accounted for under the equity method	(0.06)	(0.06)	(0.58)	(0.12)	(0.90)	(0.50)
			Income tax on items that will not be reclassfied to profit or loss
			(i)	Net acturial gains/(losses) on defined benefit plans	11.14	10.69	10.23	21.83	23.55	66.52
	(b)		Items that will be reclassified to profit or loss
			(i)	Exchange differences on translation of foreign operations	(13.43)	(4.84)	7.91	(18.27)	5.49	40.00
	Other comprehensive income for the period (net of tax) (a+b)				(66.54)	(43.87)	(65.92)	(110.41)	(126.78)	(307.72)
13	Total comprehensive income for the period (11+12)				3428.07	2905.07	3722.19	6333.14	6794.06	11594.26
14	Profit attributable to owners of the parent company				3435.99	2890.39	3714.59	6326.38	6801.46	11600.23
15	Profit attributable to non-controlling interest				58.62	58.55	73.52	117.17	119.38	301.75
16	Other comprehensive income attributable to owners of the parent company				(66.17)	(43.61)	(65.68)	(109.78)	(126.30)	(303.43)
17	Other comprehensive income attributable to non controlling interest				(0.37)	(0.26)	(0.24)	(0.63)	(0.48)	(4.29)
18	Paid-up equity share capital (Face value of share10/- each)				9894.56	9894.56	9894.56	9894.56	9894.56	9894.56
19	Paid-up debt capital$							190902.03	168089.58	184073.44
20	Other equity excluding revaluation reserve as per balance sheet							112562.80	105172.00	108944.60
21	Net worth*							121872.68	114400.61	118237.09
22	Debenture redemption reserve							7657.97	8165.47	7700.97
23	Earnings per share (of10/- each) - (not annualised) (including net movement in regulatory deferral account balances): Basic and Diluted (in)				3.47	2.92	3.75	6.39	6.87	11.72
24	Earnings per share (of10/- each) - (not annualised) (excluding net movement in regulatory deferral account balances): Basic and Diluted (in)				3.06	2.02	2.82	5.08	5.37	6.80
25	Debt equity ratio							1.57	1.47	1.56
26	Debt service coverage ratio (DSCR)							1.65	1.90	1.97
27	Interest service coverage ratio (ISCR)							4.12	4.39	4.34

$ Comprises long term debts
* Excluding Fly ash utilization reserve and Corporate social responsibility reserve
See accompanying notes to the consolidated financial results

CONSOLIDATED STATEMENT OF ASSETS AND LIABILITIES

(Crore)

CONSOLIDATED SEGMENT-WISE REVENUE, RESULTS, ASSETS AND LIABILITIES FOR THE QUARTER AND SIX MONTHS ENDED 30 SEPTEMBER 2020

(Crore)

The operations of the Group are mainly carried out within the country and therefore, there is no reportable geographical segment.

CONSOLIDATED STATEMENT OF CASH FLOWS

(Crore)

Notes to Consolidated Financial Results:

1. The above consolidated financial results have been reviewed by the Audit Committee of the Board of Directors in their meeting held on 31 October 2020 and approved by the Board of Directors in their meeting held on 2 November 2020.
2. The Joint Statutory Auditors of the Company have carried out the limited review of these consolidated financial results as required under Regulation 33 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended.
3. The subsidiary and joint venture companies considered in the consolidated financial results are as follows:

   a)	Subsidiary Companies	Ownership (%)
   1	NTPC Electric Supply Company Ltd.	100.00
   2	NTPC Vidyut Vyapar Nigam Ltd.	100.00
   3	Kanti Bijlee Utpadan Nigam Ltd.	100.00
   4	Nabinagar Power Generating Company Ltd.	100.00
   5	Bhartiya Rail Bijlee Company Ltd.	74.00
   6	Patratu Vidyut Utpadan Nigam Ltd.	74.00
   7	North Eastern Electric Power Corporation Ltd. (NEEPCO)	100.00
   8	THDC India Limited (THDCIL)	74.496
   9	NTPC Mining Ltd.	100.00
   b)	Joint Venture Companies
   1	Utility Powertech Ltd.	50.00
   2	NTPC GE Power Services Private Ltd.	50.00
   3	NTPC SAIL Power Company Ltd.	50.00
   4	NTPC Tamilnadu Energy Company Ltd.	50.00
   5	Ratnagiri Gas and Power Private Ltd.	25.51
   6	Aravali Power Company Private Ltd.	50.00
   7	Meja Urja Nigam Private Ltd.	50.00
   8	NTPC BHEL Power Projects Private Ltd.	50.00
   9	National High Power Test Laboratory Private Ltd.	20.00
   10	Transformers and Electricals Kerala Ltd.	44.60
   11	Energy Efficiency Services Ltd.	47.15
   12	CIL NTPC Urja Private Ltd.	50.00
   13	Anushakti Vidhyut Nigam Ltd.	49.00
   14	Hindustan Urvarak and Rasayan Ltd.	29.67
   15	Konkan LNG Private Ltd.	14.82
   16	Trincomalee Power Company Ltd.	50.00
   17	Bangladesh-India Friendship Power Company Private Ltd.	50.00

   All the above Companies are incorporated in India except Companies at Sl. No.16 and 17 which are incorporated in Srilanka and Bangladesh respectively.
   During the six months ended 30 September 2020, the Company has incorporated a subsidiary company 'NTPC EDMC Waste Solutions Pvt. Ltd.', a joint venture with East Delhi Municipal Corporation (EDMC) on 1 June 2020, with equity participation of 74:26 respectively to develop and operate state of the art / modern integrated waste management & energy generation facility. There was no financial transaction in the subsidiary company till 30 September 2020.

4. 1. 1. The CERC notified the Central Electricity Regulatory Commission (Terms and Conditions of Tariff) Regulations, 2019 vide Order dated 7 March 2019 (Regulations, 2019) for determination of tariff for the tariff period 2019-2024. Pending issue of provisional/final tariff orders with effect from 1 April 2019, capacity charges are billed to beneficiaries in accordance with the tariff approved and applicable as on 31 March 2019, as provided in Regulations, 2019. In case of new projects, which got commercialised from 1 April 2019 and projects where tariff approved and applicable as on 31 March 2019 is pending from CERC, billing is done based on capacity charges as filed with CERC in tariff petition. Energy charges are billed as per the operational norms specified in the Regulations 2019. The amount provisionally billed for the quarter and six months ended 30 September 2020 is25,391.74 crore and48,765.72 crore respectively (previous quarter and six months23,501.33 crore and48,029.07 crore).
      2. Sales for the quarter and six months ended 30 September 2020 have been provisionally recognized at25,633.69 crore and49,020.97 crore respectively (previous quarter and six months23,711.90 crore and48,197.34 crore) on the said basis.
   2. Sales for the quarter and six months ended 30 September 2020 include (-)11.40 crore and578.45 crore respectively (previous quarter and six months89.72 crore and80.42 crore) pertaining to earlier years on account of revision of energy charges due to grade slippages and other adjustments.
   3. Sales for the quarter and six months ended 30 September 2020 also include28.53 crore and48.92 crore respectively (previous quarter and six months19.12 crore and41.99 crore) on account of deferred tax materialized which is recoverable from beneficiaries as per Regulations, 2019.
   4. Revenue from operations for the quarter and six months ended 30 September 2020 include1,664.52 crore and3,548.99 crore respectively (previous quarter and six months1,687.81 crore and3,736.42 crore) on account of sale of energy through trading.
5. The environmental clearance (“clearance”) granted by the Ministry of Environment and Forest, Government of India (MoEF) for one of the Company's project consisting of three units of 800 MW each, was challenged before the National Green Tribunal (NGT). The NGT disposed off the appeal, inter alia, directing that the order of clearance be remanded to the MoEF to pass an order granting or declining clearance to the project proponent afresh in accordance with the law and the judgement of the NGT and for referring the matter to the Expert Appraisal Committee ("Committee") for its re-scrutiny, which shall complete the process within six months from the date of NGT order. NGT also directed that the environmental clearance shall be kept in abeyance and the Company shall maintain status quo in relation to the project during the period of review by the Committee or till fresh order is passed by the MoEF, whichever is earlier. The Company filed an appeal challenging the NGT order before the Hon’ble Supreme Court of India which stayed the order of the NGT and the matter is sub-judice. All the units of the project have been declared commercial in the earlier years. The carrying cost of the project as at 30 September 2020 is15,301.66 crore (31 March 2020:15,662.28 crore). Management is confident that the approval for the project shall be granted, hence no provision is considered necessary.
6. The Company is executing a hydro power project in the state of Uttrakhand, where all the clearances were accorded. A case was filed in Hon’ble Supreme Court of India after the natural disaster in Uttrakhand in June 2013 to review whether the various existing and ongoing hydro projects have contributed to environmental degradation. Hon’ble Supreme Court of India on 7 May 2014, ordered that no further construction shall be undertaken in the projects under consideration until further orders, which included the said hydro project of the Company. In the proceedings, Hon’ble Supreme Court is examining to allow few projects which have all clearances which includes the project of the Company where the work has been stopped. Aggregate cost incurred on the project up to 30 September 2020 is163.59 crore (31 March 2020:163.40 crore). Management is confident that the approval for proceeding with the project shall be granted, hence no provision is considered necessary.
7. An amount of754.89 crore (31 March 2020:749.01 crore) has been incurred upto 30 September 2020 in respect of one of the hydro power projects of the Company, the construction of which has been discontinued on the advice of the Ministry of Power (MOP), Government of India (GOI), which includes444.74 crore (31 March 2020:439.57 crore) in respect of arbitration awards challenged by the Company before the Hon'ble High Court of Delhi. In the event the Hon'ble High Court grants relief to the Company, the amount would be adjusted against provisions made in this regard. Management expects that the total cost incurred, anticipated expenditure on the safety and stabilisation measures, other recurring site expenses and interest costs as well as claims of contractors/vendors for various packages for this project will be compensated in full by the GOI. Hence, no provision is considered necessary.
8. The Company had entered into an agreement for movement of coal through inland waterways for one of its stations. As per the agreement, the operator was to design, finance, build, operate and maintain the unloading and material handling infrastructure for 7 years, after which it was to be transferred to the Company at1/-. After commencement of the operations, the operator had raised several disputes, invoked arbitration and raised substantial claims on the Company. Based on the interim arbitral award and subsequent directions of the Hon’ble Supreme Court of India, an amount of356.31 crore was paid upto 31 March 2019.
   Further, the Arbitral Tribunal had awarded a claim of1,891.09 crore plus applicable interest in favour of the operator, during the financial year 2018-19. The Company aggrieved by the arbitral award and considering legal opinion obtained, had filed an appeal before the Hon'ble High Court of Delhi (Hon'ble High Court) against the said arbitral award in its entirety.
   In the previous year, against the appeal of the Company, Hon'ble High Court vide its order dated 23 September 2019 held that subject to deposit of500.00 crore by the Company with the Registrar General of the Court within six weeks, execution of the impugned award shall remain stayed till the next date of hearing and upon handing over the entire infrastructure in terms of the contract by the operator to the Company, the Registrar General shall release the amount to the operator against a bank guarantee. The said amount was deposited with the Hon'ble High Court on 5 November 2019. Hon'ble High Court vide its order dated 8 January 2020 directed the parties to commence formal handing over of the infrastructure in the presence of appointed Local Commissioner and also directed release of500.00 crore to the operator by the Registrar General subject to the outcome of this application of the Company for formal handing over of the infrastructure. On 17 January 2020, unconditional bank guarantee was submitted by the operator to Registrar General and500.00 crore was released to operator by the Hon’ble High Court. As per orders of Hon'ble High Court, formal handing over of the infrastructure started on 20 January 2020 at the project site. However, due to certain local administrative issues initially and further due to COVID-19 pandemic, Local Commissioner’s visit has been deferred. The handing over of the infrastructure facility has not yet completed.
   Pending final disposal of the appeal by the Hon’ble High Court, considering the provisions of Ind AS 37 ‘Provisions, Contingent Liabilities and Contingent Assets’ and Significant Accounting Policies of the Company, provision has been updated by interest to38.01 crore as at 30 September 2020 (31 March 2020:37.92 crore) and the balance amount of2,084.40 crore (31 March 2020:2,014.84 crore) has been considered as contingent liability.
9. The Group is mainly in the business of generation and sale of electricity which is an essential service as emphasized by the Ministry of Power, Government of India. During the outbreak of COVID-19, the group companies in the business of generation and sale of electricity have ensured the availability of its power plants to generate power and have continued to supply power during the period of lockdown. In line with the directions of MOP dated 15 & 16 May 2020, issued in accordance with the announcement of GOI under the Atmanirbhar Bharat Special Economic and Comprehensive package, to allow a rebate of between 20%-25% on the capacity charges during the lock down period subject to approval of respective Boards, to be allowed during the year 2020-21. The entire amount has since been accounted for and disclosed as exceptional item.
   Further, Central Electricity Regulation Commission issued an order dated 3 April 2020 whereby it was directed that Late Payment Surcharge (LPSC) shall apply at a reduced rate of 12% p.a. instead of the normal rate of 18% p.a. on the payments becoming overdue during the period from 24 March 2020 to 30 June 2020 to contain the impact of COVID-19. Further, under the Atmanirbhar Bharat package, the group companies in the business of generation and sale of electricity have deferred the capacity charges to DISCOMS for the lockdown period for the power not scheduled to be payable to be payable without interest after the lock down period in three equal monthly installments. The impact on profit for the quarter and six months ended 30 September 2020 due to the reduction in LPSC rate and deferment of capacity charges, is not material.
   The Group has considered possible impact of COVID-19 in the preparation of financial results. The Group does not anticipate any material medium to long-term impact on the financial position of the Group. The Group will continue to closely monitor any material changes to the future economic conditions.
10. During the half-year, one thermal unit of 660 MW at Khargone of the Company have been declared commercial w.e.f. 4 April 2020. Further, two units of 150 MW each at Kameng Hydro Electric Project of a Subsidiary have been declared commercial w.e.f. 17 June 2020 and 1 July 2020 respectively.
11. During the quarter, the Company has paid final dividend of2.65 per share (face value of10/- each) for the financial year 2019-20.
12. The Board of Directors of the Company at its meeting held on 2 November 2020, has approved a proposal to buy-back upto 19,78,91,146 equity shares of the Company for an aggregate amount not exceeding2,275.75 crore being 2% of the total paid up equity share capital at115.00 per equity share from all equity shareholders of the Company as on the record date ,on proportionate basis, through a Tender Offer. The buy back of shares is expected to be completed by January 2021.
13. Formula used for computation of coverage ratios DSCR = Earning before Interest, Depreciation, Tax and Exceptional items /(Interest net of transfer to expenditure during construction + Scheduled principal repayments of the long term borrowings) and ISCR = Earning before Interest, Depreciation, Tax and Exceptional items/(Interest net of transfer to expenditure during construction).
14. Company has maintained required asset cover as per the terms of offer document/ Information Memorandum and/or Debenture Trust Deed, including compliance with all the covenants, in respect of the listed non-convertible debt securities.
15. The figures for the quarter and half year ended 30 September 2019 have been restated consequent to acquisition of 74.496% and 100% of paid up equity share capital, held by Government of India, in THDCIL and NEEPCO respectively w.e.f. 27 March 2020 and accounted as a common control acquisition considering Appendix C of Ind AS 103- Business Combinations in the previous financial year.
16. Previous periods figures have been reclassified wherever considered necessary.

For and on behalf of the Board of Directors NTPC Limited (A.K.Gautam)
DIRECTOR (FINANCE)
DIN:08293632Place: New Delhi
Date: 2 November 2020