Power Grid Corporation of India Chairman's Speech > Engineering - Heavy > Chairman's Speech from Power Grid Corporation of India - BSE: 532898, NSE: POWERGRID
Power Grid Corporation of India
BSE: 532898|NSE: POWERGRID|ISIN: INE752E01010|SECTOR: Power - Generation & Distribution
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Chairman's Speech (Power Grid Corporation of India) Year : Mar '14
Dear Shareholders,
 It gives me immense pleasure to share with you the performance of your
 Company during its Silver Jubilee year 2013-14.
 Friends, India''s GdP growth improved marginally in FY 2014 to 4.7%
 compared to 4.5% in the previous year. This is the second year in a row
 during which the economy''s growth remained below 5%. Your Company
 continued to maintain its growth momentum with 17.9% increase in
 Turnover in FY 2013-14, despite the prevailing difficult economic
 environment, mounting challenges in Construction, operation &
 Maintenance of transmission system and Grid Management.
 Friends, Fiscal 2014 has been another eventful year for POWERGRID. I am
 delighted to share with you that your Company has achieved another
 landmark in its Silver Jubilee year interconnecting Southern grid
 synchronously with rest of the National Power Grid in december, 2013
 through the commissioning of 765kV Raichur–Solapur Single Circuit line.
 with this ''One Nation'' – ''One Grid'' – ''One Frequency'' has become a
 reality.  This has facilitated not only in augmentation of transmission
 capacity by 2100 Mw but also relieve the congestion being experienced
 in the transmission corridor. This would be a boost for further
 economic growth of the country. The cumulative inter-regional power
 transfer capacity of National Grid stood at about 37,950 Mw at the end
 of March, 2014 which is envisaged to be enhanced to about 72,250 Mw by
 the end of the Twelfth Five Year Plan.
 Your Company has achieved another milestone through establishment of
 international interconnection viz. ''Bharat-Bangladesh Vidyut Sanchalan''
 between India and Bangladesh during the year, with the commissioning of
 Bheramara (Bangladesh) - Baharampur (India) 400kV d/c line along with
 500 Mw High Voltage direct Current (HVdC) back-to-back terminals at
 Bheramara. This enables power flow of the order of 500 Mw from India to
 Your Company has received lot of laurels from Ministry of Power, GoI
 and various stakeholders while assisting delhi Transco Limited during
 their difficult times recently and the active support extended in
 commissioning of Raichur-Solapur 2nd 765kV single circuit line,
 implemented under private sector.
 Your Company''s second Follow-on-Public-offer (FPo) in december, 2013
 comprising fresh issue of 13% and Government of India (GoI)
 disinvestment of 4% of the paid up equity capital, garnered
 overwhelming response from the investor community. overall, the Issue
 was oversubscribed by 6.74 times and category wise: QIBs- 9.09 times;
 Non Institutional Investors- 9.80 times; Retail Investors- 2.12 times;
 and Eligible Employees- 1.31 times. Presently, the holding of GoI is
 57.90%. Your Company''s performance has been widely recognized which has
 been amply reflected in your Company''s stock price hitting 52 week high
 of Rs.146.95 per share recently.
 In Fiscal 2014, your Company displayed an impressive financial
 performance. Turnover of the Company increased to Rs.15,721Crore and
 Profit after Tax increased to Rs.4,497Crore, which are 17.9% and 6.2%
 higher respectively, compared to the previous Fiscal 2013.  our Gross
 Fixed Assets as on 31st March, 2014 stands at Rs.96,504Crore as against
 Rs.80,600Crore in last fiscal.
 On the project Implementation front, your Company capitalized assets
 worth Rs.15,904 Crore during the year, adding about 6,604 Ckm of
 transmission lines, 17 sub-stations and about 41,160 MVA transformation
 capacity into the transmission system. Further, 19 new projects with an
 estimated cost of investment approval of Rs.8,548 Crore were also
 approved during the year and taken up for implementation.
 On the operational front, your Company maintained high transmission
 system availability of 99.92% with number of trippings per line limited
 at 0.56. As on 31st March, 2014, your Company owns and operates a
 transmission network of about 1,06,804 Ckm of inter-State transmission
 lines, 184 nos. of EHVAC & HVdC substations with about 2,05,923 MVA
 transformation capacity and continues to wheel about 50% of total power
 generated in the country.
 Under RGGVY, during FY 2013-14, your Company has created infrastructure
 for electrification in 2,388 villages out of which 125 were
 un-electrified villages. Service connections were provided to about
 85,460 BPL households. Cumulatively, till March, 2014, infrastructure
 has been created for electrification of 71,042 villages out of which
 32,588 were un-electrified villages and service connections to about
 36.22 Lac BPL households were provided.
 Your Company continues to make significant progress in all its business
 areas including Telecom and Consultancy, enhancing the value for the
 Friends, Electricity is big catalyst for economic growth, for creating
 infrastructure, for improving the quality of life and generating
 employment opportunities for youth. The Twelfth Five Year Plan has laid
 special emphasis on infrastructure development including power as
 quality infrastructure is important not only for sustaining high
 growth, but also for ensuring that the growth is inclusive.  Your
 Company has made an ambitious plan to invest more than Rs.100,000 Crore
 during the XII plan, matching with the envisaged generation capacity
 addition, out of which Capital expenditure of Rs.43,195 Crore has already
 been made in the first two years of the XII plan period (Rs. 23,158 crore
 in FY 2013-14 and Rs. 20,037 in FY 2012-13). Current year''s budgeted
 outlay of Rs.20,000 Crore is progressing as per the plan.
 Friends, integration of Renewable Energy Resources with grid is the top
 priority worldwide for energy security and also for carbon emission
 reduction. Recognising the importance of this, your Company has taken
 lead initiative and developed comprehensive master plan for grid
 integration of renewable generation capacity addition of about 33Gw
 envisaged during the Twelfth Five Year Plan through Green Energy
 Corridors across India. Under this, your Company has been assigned the
 implementation of inter-State
 Transmission System portion of the scheme, setting up of Renewable
 Energy Management centres and control infrastructure to be included in
 Kfw/GIZ, Germany proposal by Ministry of Power, GoI. Your Company has
 been taking various actions under this and implementation is expected
 to commence shortly.
 Your Company has also evolved an integrated plan for desert Power
 development namely, dESERT PowER INdIA - 2050, for harnessing the huge
 renewable energy potential of about 300Gw, primarily solar and wind at
 desert/ cold desert waste land in Kutch, Thar, Lahaul & Spiti and
 Ladakh areas in the time horizon of 2050. The plan includes
 establishment and grid integration of renewables at an estimated cost
 of Rs.43.75 lakh Crore through hybrid transmission corridors utilizing
 High Voltage direct Current (HVdC) (including VSC based) as well as
 1200kV UHV AC/ High temperature superconductor technologies, etc. A
 report on the plan has already been submitted to Ministry of
 Non-Renewable Energy, Ministry of Power, Ministry of Finance, Planning
 Commission, Central Electricity Authority and Central Electricity
 Regulatory Commission.
 Your Company continues to take pioneering steps in bringing Smart Grid
 technology in entire value chain of electricity in the country. Your
 Company has developed Smart Grid pilot project in the country through
 open collaboration at Puducherry. Almost all the attributes of Smart
 Grid viz. Advance Metering Infrastructure, outage Management System,
 demand Response, Power Quality Management, etc. have been successfully
 integrated at Smart Grid control centre at Puducherry through latest
 communication technologies. Your Company has been appointed as
 Advisor-cum-Consultant for implementation of Smart Grid project by
 eight utilities, at an estimated cost of about Rs.200 Crore during the
 year. In addition, your Company has been indigenously developing smart
 products like smart meter, data concentrator unit, home energy
 management system, micro grid controller, smart cap utilizing solar
 energy, active filter etc. for varied applications.
 Friends, realizing its obligations and commitment towards Sustainable
 development, your Company has taken many initiatives such as
 construction of National Transmission & Asset Management Centre
 Building at Manesar as per Green Rating for Integrated Habitat
 Assessment (GRIHA) norms, along with 50kw solar plant, and installation
 of waste Paper Recycling Plant. These efforts will go a long way in
 reducing carbon footprint and conserving the precious natural
 As a part of Corporate Social Responsibility, your Company is making
 contribution to the society at large with emphasis on socio-economic
 and integral development of areas / communities primarily in and around
 its areas of operations and has carried out various community
 development activities such as Skill development & Capacity Building,
 livelihood generation, healthcare, education, plantation, sanitation,
 drinking water, besides infrastructure developments like classrooms,
 roads, community centres etc. during the FY 2013-14, your Company made
 an expenditure of Rs.21.66 Crore on various CSR activities. In March,
 2014, your Company has signed an agreement with AIIMS, New delhi for
 the construction of a 10 storey, 325 beds dharamshala named as
 NmRj-s fifWT ^RT in the premises of Jai Prakash Narayan Apex Trauma
 Centre ), New delhi. In addition, MoUs have also been signed with
 International Crop Research Institute for Semi-Arid Tropics (ICRISAT)
 for water shed management projects in one village each in Andhra
 Pradesh and Karnataka.
 Your Company continues to excel over its competitors under Tariff Based
 Competitive Bidding (TBCB). As on 31st March, 2014, your Company has
 secured 5 transmission projects, about 40% of the projects floated
 under TBCB since January, 2011.
 Your Company''s contribution has been widely acknowledged and it has
 received numerous awards at various platforms during the year which
 includes 4 Gold Shield and 1 Silver Shield under ''Comprehensive Award
 Scheme for recognizing meritorious performance in Power Sector'' for
 Transmission System Availability and Early Completion of Transmission
 Projects for the year 2011-12 and 2012- 13 from Ministry of Power;
 Award for Corporate HR Excellence in Power Sector by 7th ENERTIA
 Awards 2013, for being India''s best place to work for Power
 Professionals and Power Engineers; e-India PSE 2013 Award for online
 Human Resource development Management System; and Power Line Award
 2013 for being the ''Best Performing Transmission Company''. Your Company
 has also been bestowed with Top Infrastructure Company under the
 category ''Power Transmission'' by dun & Bradstreet. Recently, your
 Company has been conferred Training Excellence in HR- Gold Award for
 its outstanding achievements in ''Training'' at 4th Annual Green Tech HR
 Award 2014 by Green Tech Foundation.
 On behalf of the Company, I thank each shareholder for their continued
 support and faith reposed in the Company and its management. I would
 like to thank each of our employees whose dedicated efforts made Fiscal
 2014 yet another successful year for the Company. while the economy
 remains challenging, I am confident that with dedicated employees and
 with valuable support of our esteemed shareholders, the Company will
 continue to deliver results and meet your expectations.
 with best wishes,
 Yours sincerely,
 (R. N. Nayak)
 Chairman & Managing director
 Place: New delhi
 date : 06.08.2014
Source : Dion Global Solutions Limited
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