GOOD EVENING LADIES AND GENTLEMEN

On behalf of my Colleagues on the Board and the Management, it gives me immense pleasure in welcoming you all to the 23rd Annual General Meeting scheduled today, the Friday, 26th August 2011. Before I address on the agenda, I express my gratitude to the Govt. of India for bestowing confidence in me and entrusting me with the Charge of Chairman & Managing Director of the Company with effect 01st March 2011 in addition to the charge of Director (Electrical).

The Annual Audited Accounts along with the Report of the Auditors and Directors for the year 2010-11 are already with you and with your permission, I would take them as read.

HIGHLIGHTS OF THE YEAR 2010-11

The overall generation in the Country during the year 2010-11 was 811.143 BUs as compared to 771.551 BUs for the previous year 2009-10, thus, recording 5.13% overall growth in which hydro sector has improved by 9.97%. In this growth, your Company's contribution is also worth mentioning from the fact that during the year 2010-11, the generation was 7140.205 MUs as against 7018.81 MUs for the previous year. Still higher generation could have been possible, but for the fact that NJHPS was shut down for 22 days approx during the monsoon season due to high silt in the river Satluj. Despite this, the Plant Availability Factor was close to 98%. The Design energy of NJHPS is 6612 MUs and Normative Capacity Index is 82%. Against these two targets, our performance, was far above and resulted in incentive payment of Rs.216 crore during the year 2010-11. The Annual Plant Maintenance Time was brought down to 8.43 days during 2010-11 as against 10 days for previous year.

As regards Financial performance, your company earned Net profit after tax of Rs.912.13 crore as against Rs.972.74 crore during the previous year and your Board recommended dividend of Rs.330.93 crore as against Rs.328.20 crore for 2009-10.

 HIGHLIGHTS OF THE YEAR 2011-12

 The Physical and Financial Results for the First Quarter ending 30th June 2011 were declared on 14th July 2011. The Generation for the First Quarter was 2650.53 MUs as against 2424.57MUs for the corresponding period of the previous year. The Generation till 15th August, 2011 was 4296 MUs as against 3509 MUs for the corresponding period of previous year. Financially, the net profit after tax was Rs.348.21 crore as against Rs.290.76 crore for the first quarter ending June 2010. Thus, we are endeavoring to ensure better generation and better revenues year after year.

 FUTURE PLANS

The Status of Projects on-going has been amply covered in the Directors' Report 2011 and, as such, I shall like to mention that all steps have been taken to commission the Rampur Project (412 MW) in September 2013. As regards other projects, namely, Luhri (775 MW); Dhaulasidh (66 MW); both projects in Himachal Pradesh, Devsari (252 MW); Naitwar Mori (60 MW); Jakhol Sankri (51 MW), all the three projects in Uttarakhand, Arun-III (900 MW) in Nepal, and consultancy projects in Bhutan i.e. Kholongchu HEP 600 MW and Wangchu HEP 600 MW are all in different stages of completion and is brought out in the Directors Report in more detail.

BUSINESS OUTLOOK

As per the Programme approved by Planning Commission during the 11th Plan period (2007-12), a capacity addition of 78,700 MW was envisaged out of which 15,627 MW is expected from Hydro Sector. Due to certain reasons there are some slippages in achieving full capacity addition as envisaged. To meet the all India peak demand and energy requirement at the end of 12th plan, a capacity addition of more than 90,000 MW has been assessed during 12th Plan (2012-17), which includes 30,000 MW of Hydro electric power. In the 12th Plan capacity addition, Projects of your Company, namely, Rampur, Devsari, Jakhol Sankri, Naitwar Mori, and Dhaulasidh are also involved and it is our endeavour to commission these projects as expected of us and contribute to the betterment of the Nation.

 ACKNOWLEDGEMENT

At the end, I would like to place on record my gratitude for the assistance, guidance and co-operation received from all the Members of the Board, Government of India, Government of Nepal, Government of Bhutan, Government of Himachal Pradesh, Government of Uttarakhand, and all the other governmental and non-governmental agencies, Investors, Employees, Financial Institutions, Contractors and Suppliers.

Thanking you,

Yours Sincerely,

 Shimla
26th August 2011