Aceptación y Clasificación

i) The efforts made towards technology absorption:

A. SUGen And UnOSUGen:

• Installation of nitrogen generating plant to discontinue usage of cylinders.

• Change in measurement methodology of condenser level from ultrasonic to differential-pressure type. • Installation of degassed conductivity analyzer for main steam circuit.

• Increased specific conductivity of feed water to discontinue usage of salt reagent in dissolved oxygen meter.

• Installation of new designed HCB to avoid repetitive hotspots and failure of the HCB in 220 kV switchyard. • Replacement of LP evaporator bends with superior material.

B. dGen:

• Installation of nitrogen generating plant for preservation of systems while Units are under reserve shutdown. • Portable degassed conductivity analyzer in main steam circuit. • Portable oil purification units (FAM 5 and FAM 25) for steam turbine hydraulic oil and lube oil systems. C. AMGen: • Replacement of existing 145 kV breakers with new breakers at D, E and F station. • Replacement of vulnerable ash disposal pipe lines by new cast basalt pipes. • S+ up-gradation in DCS. • Up-gradation of PLC in ash slurry system. d. AHMedABAd And SURAT dISTRIBUTIOn AReAS:

• Replacement of porcelain insulators by polymeric insulators in 220 kV transmission network. • Installation of TRAFO connector at LT bushing of distribution transformers. • Installation of fault passage indicators in 11 kV and 33 kV network. • Up-gradation of conventional sub-station to SCADA controlled sub-station. • Replacement of open bus bar (tail race) of distribution transformer by fuse section pillars. • Expansion of 220 kV ‘F’ receiving station at Surat using GIS Technology.

• Usage of nitrogen based fire protection system in power transformers.

• Replacement of mineral oil filled distribution transformers by dry type transformers in densely populated and congested area.

• Replacement of blue silica gel (non-biodegradable) by environment friendly orange silica gel (biodegradable).

• Usage of ester oil in place of mineral oil in distribution transformer. ii) The benefits derived:

A. GeneRATIOn: • Cost reduction. • Better availability, reliability and safety. • Improved efficiency. B. dISTRIBUTIOn: • Better availability, safety and reliability. • Enhancement of sub-station capacity. • Enhanced customer satisfaction.

iii) In case of imported technology (imported during the last three years reckoned from the beginning of the financial year):

I. the details of technology imported;

II. the year of import;

III. whether the technology been fully absorbed;

IV. if not fully absorbed, areas where absorption has not taken place, and the reasons thereof; and Not Applicable

iv) The expenditure incurred on Research and development: No expenditure has been incurred on R&D.

C. FOReIGn exCHAnGe eARnInGS And OUTGO -

description ` in Crore

Foreign exchange earned (Actual Inflow)

Miscellaneous Income 34.58

Sale of CER -

Refund of Hermes Premium 15.91

Foreign exchange Used (Actual Outflow)

Import of Capital Goods 266.69

Import of Fuel, Components, Stores and Spare Parts 244.30

For and on behalf of the Board of Directors

Ahmedabad Sudhir Mehta

18th _{May, 2016 Chairman}

1. eCOnOMY

Indian economy performed comparatively better in FY 2015-16 due to robust growth witnessed in the trying circumstances including uncertain external environment and truant monsoon. The much needed macro-economic stability was progressively attained due to low inflation, reduced current account and fiscal deficits and interest rate fall. Gross Domestic Product (GDP) growth rate increased from 7.2% in FY 2014-15 to 7.6% in FY 2015-16. Achievement of increased growth along with reduced inflation was indeed remarkable given the fact that there generally remains a conflict between inflation and growth. The effective monetary policy, weakening global commodity prices particularly oil prices as well as astute food supply management helped in maintaining the moderate inflation. With the inflation rate staying benign, RBI cut its policy rates to more than 5 year low which ensured enough liquidity in the market. While inflation concerns have eased, worries remain on whether growth in the economy has stabilized.

India’s trade deficit touched a 5 year low in March 2016 on account of lower net oil imports led by fall in price as well as a sharp decline in gold imports. Further, India’s exports continued to deteriorate due to weak demand from its key global markets. Contracted trade deficit together with highest ever FDI inflows reduced the current account deficit. The fiscal deficit was also contained at targeted 3.9% of GDP in FY 2015-16 due to significant increase in revenue receipts led by buoyant indirect tax collections, lower level of subsidies on petroleum products due to slump in prices despite a higher level of planned capital expenditure.

While consolidating the gains, two negative facets have been - the underinvestment cycle in the economy due to stressed corporate & bank balance sheets and the low level of capacity utilisation across industry. This sluggishness resulted into low electricity demand growth during FY 2015-16. Further, on account of planned energy efficiency targets and power saving devices, Power Ministry has lowered the estimated electricity demand for 2017-22 by 20% at 239 GW. For India’s improved economic outlook, stable macro-economic conditions and key sectoral reforms are fundamental. 2. InFRASTRUCTURe

The overall growth in the eight core industries registered a cumulative growth of just 2.7% in FY 2015-16 mainly due to increase in refinery products and fertilizers. This was much lower than 4.5% in FY 2014-15 owing to reduced growth in electricity and steel. The rise in stressed assets, led to increasing NPAs with several developers announcing exits from individual infrastructure projects to repay creditors.

With its continued focus, the Government has fast tracked approvals for stalled projects, allocated `2.21 trillion for the sector for FY 2016-17, approved the National Investment and Infrastructure Fund and allowed issue of tax free bonds for rail, roads and irrigation programmes.

Though, all such measures have resulted in greater investor confidence, timely implementation of these reforms will be the key for the revival of infrastructure sector.

3. POWeR SeCTOR

Indian power system ranks third in electricity production globally. However, its per capita power consumption at ~1,000 units is way below world’s average of ~3,000 units. One-fourth of the households in the country still have no access to electricity. The Government has realised the need to fight this energy poverty and thus FY 2015-16 saw a series of reforms including the Ujwal DISCOM Assurance Yojana (UDAY), private participation in coal mining, incentives / relaxations for the gas sector, programmes to expand share of renewable energy and comprehensive amendments to the National Tariff Policy. Though the efforts are in the right direction, realisation of gains is dependent upon speed and efficiency of action.