CHAIRMAN’S STATEMENT ON THE EVE OF 21ST  ANNUAL GENERAL MEETING

Dear Members,

I have a great pleasure in welcoming you all to the 21st Annual General Meeting scheduled today, the Friday,  10th September, 2009 in the Queen of Hills.  The Annual Audited Accounts along with the Report of the Auditors and Directors for the year 2008-09 are already with you and with your permission, I would take them as read.   

The year 2008-09 faced unprecedented global economic crisis leading to fall in the stock markets, liquidity crunch, negative industrial growth and fall in the employment.  Although the origination to the crisis began in Wealthiest Nations, it left enormous adverse effects on the developing Nations like India.  In our Country too,  we had witnessed fall in the stock market, loss of employment, reverse flow of investments etc. Thanks to the  timely fiscal and monetary initiatives of Government of India and Reserve Bank of India and also adequate foreign exchange reserves the negative effect of the crisis had not survived for long.    

HIGHLIGHTS OF THE YEAR

Inspite of the above crisis, the operations of your company remained sound and cordial.  The year’s generation has set a new record.  During the year, 6608.691 MUs of power was generated as compared to the previous year’s generation of 6448.977 MUs.   

As regards Financial performance, your company earned Net profit after tax  of Rs.1015.32 crore as against Rs.764.51 crore during  the previous year and your Board recommended dividend of Rs.320 crore as against Rs.244 crore for the previous year. The rising income, profits and return on investments year after year since year 2004,when the NJHPS started commercial operation is, indeed,  witness to the promised growth.  

Considering the current year’s profits too, a sum of Rs.80 crore has been  paid as interim dividend for the year 2009-10.

FUTURE PLANS

In my last year’s address, I had  mentioned about the new projects allotted and their status of implementation.  Further to that, I am happy to inform you that the  Ministry of Power  allotted two  projects in Bhutan, namely,  Kholongchu HEP (486 MW) and Wangchu HEP   (900 MW) initially for survey and investigation. I propose to place “big thanks” to the Ministry of Power  for this opportunity.  We have taken up the work in all sincerity.   and hope that the MOP will consider SJVN for execution also after the survey work is completed.  I would also like to add that Ministry of Power also considered SJVN as a Partner in Tipaimukh HEP, a 1500 MW HEP in the State of Manipur.  The Project will be executed by an SPV in which your company will hold equity of 26%;  NHPC 69%; and Govt. of Manipur 5%. 

The progress of  Civil works at  Rampur Project,  412 MW, which is presently under  construction  is not keeping pace with the schedule, particularly in HRT Package.    This is mainly due to adverse rock conditions in Adits/HRT and this aspect was discussed in detail with Technical Experts and World Bank Experts. Keeping in view their advise,     accelerated measures by changing the construction methodology are undergoing and I hope the rate of progress will increase in the next few months.   

With the opportunities and efforts being put in , I have no doubt to say that your  Company shall not only prosper but also bring prosperity to the Country and her people.

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 and the Employees, Financial Institutions, Contractors and Suppliers.

Thanking you,