This article aims to study the relationship between high employee engagement and employee retention. The study was conducted in October 2018, on NTPC Ltd. which is the largest power plant in India. Annual Report of NTPC Ltd. in the year 2016-17 reflected the total employee strength of the Company (including JVs/subsidiaries) was 22,124 as of 31.3.2017 against 23,133 as of 31.3.2016. NTPC Ltd. has the lowest attrition rate in the industry, the attrition rate of the NTPC executives was 1.05%. and 0.93% in the year 2016-17, 2015-16 respectively as reported in the annual reports for the years 2015-16 and 2016-17, and employee engagement was as high as 59.52%. NTPC is a leader not only in the power industry, but also in the market due to its robust human resource practices. Extrinsic motivational techniques were taken into consideration in assessing employee engagement of middle-level executives at NTPC Ltd. Employees were found to be highly engaged at NTPC Ltd. with the lowest attrition rate.