NUCLEAR POWER CORPORATION OF INDIA LIMITED A Government

NUCLEAR POWER CORPORATION OF INDIA LIMITED (A Government of India Enterprise) PERFORMANCE LINKED INCENTIVE SCHEME (PLIS) FOR EXECUTIVES

Atomic Energy Commission (AEC) - Guidelines : Ø (Clause 3. 4, Page-35 of AEC Guidelines) The Schemes will be formulated based on achievement of milestones/performance by the individual projects/stations or on a common basis based on the overall achievement of MOU targets/ profit generation, or as a combination of two, as may be considered necessary, keeping in view the broad objective of sustaining motivational levels of employees across the Company and/or to aid greater mobility of personnel within the Company across locations The performance linked incentives granted together with perquisites, if any, should be within 50% of Basic Pay or within a maximum of 5% of the distributable profits of the Company. However, the Board of Directors may change this ceilings based on needs and justifications, from time to time.

NPCIL Performance Linked Incentive Scheme Incentive Parameters Incentive linked to MOU ratings Incentive (%) 20% (max. ) of basic pay NPCIL Annual Capacity Factor 15% (max. ) (NACF) Incentive of basic pay (70% - 90% Capacity Factor)(3% - 15% Incentive) Individual Performance 3% to 12% Related (IPR) Incentive (max. ) of basic pay Mode of payment Monthly, Quarterly Annual (NACF) Monthly Maximum incentive payable upto CMD level = 47%

With regard to IPR Incentive, the incentive depends on residency period of an Executive in the current and promotion to the next grade. Promoted within Minimum Eligibility Period (MEP) 12% Promoted within MEP + 1 year Promoted within MEP + 2 year Promoted within MEP + 3 year 9% 6% 3%

Financial Results: YEAR 2008 -09 2009 -10 2010 -11 2011 -12 PROFIT BEFORE TAX (` in lakhs) 48077. 24 47405. 73 168764. 98 238165. 06 PROFIT AFTER TAX (` in lakhs) 44128. 40 41641. 33 137632. 57 190615. 42

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Governing Rules : § If an Executive after meeting prescribed norms is deferred / dropped in the Selection Interview, then two increments will be reduced from his entitlement as per the above table. § An Executive whose grading in the Performance Appraisal Report or CR is not less than `A 3/Good’ will be eligible for a minimum incentive of 3% if his MEP is beyond MEP+3, irrespective of his promotion.

PERFORMANCE LINKED INCENTIVE SCHEME IN NPCIL Introduction of Incentive Schemes in NPCIL : (a) Common Production Incentive Scheme for employees of Operating Stations; (b) Construction Incentive Scheme for employees of Construction Projects; and (c) Incentive Scheme for Headquarters employees.

NPCIL PERFORMANCE LINKED INCENTIVE SCHEME § Objective : To enhance organizational performance through improved team work and individual contribution thereby achieving higher levels of production and productivity. § Applicability : To NPCIL Executives of Operating Stations, Construction Projects and Headquarters. § Validity : 01. 2009 to 31. 03. 2015