It gives me immense pleasure to communicate with you on the occasion of
the Twenty Second Annual general Meeting, scheduled on 19th September,
2011. Friends, during the year the Indian economy has posted a further
recovery improving the Country''s gross Domestic Product (gDP) to 8.5
per cent in 2010-11 from 8 per cent during last fiscal. To ensure the
envisaged gDP growth, Power Sector needs to grow at a rate higher than
that of gDP. Therefore, continued focus on investments on Power sector
You are aware that the Follow-on-Public offer (FPo) of divestment of
10% of govt. equity (420,884,123 shares) and issue of 10% fresh capital
(420,884,123 shares) in November, 2010 of your Company received huge
response from both domestic & Foreign Institutional Investors. The
Issue was oversubscribed nearly 15 times. Post FPo, the holding of
government of India is 69.42%.
I am happy to inform that your company has achieved an impressive
performance in fiscal 2010-11 on various fronts. on the financial
front, your Company''s gross Turnover recorded Rs.9099.80 crore, an
increase of 21.27% compared to the previous Fiscal 2009-10. Similarly,
Profit after Tax during the year increased to Rs.2696.89 Crore from Rs.
2040.94 Crore in Fiscal 2009-10, registering a growth of 32.14%. our
gross Fixed Assets as on 31st March, 2011 are valued at Rs. 50,351.78
Crore as against Rs. 43,202.28 crore in last fiscal. In fact your
Company''s gross Fixed Asset have grown about 74% during last five
years. Further, Board of Directors of your company accorded investment
approval for 25 new transmission projects at a total estimated cost of
about Rs. 21,150 Crore during financial year 2010-11.
on the operational front, as on 31st March, 2011, your company owns and
operates a transmission network of about 82,355 ckt kms of inter-State
transmission lines, 135 nos. of EHv & HvDC substations with
transformation capacity of about 93,050 MvA and wheels about 50% of
total power generated in the Country. Transmission system availability
of 99.80%, best ever so far, was achieved in the history of the Company
and projects worth about Rs.7,313 Crore were commissioned during the
Under RggvY, during this fiscal, your Company created infrastructure
for electrification of 4710 un-electrified villages against a target of
3500 villages, an achievement of 135%. Service connections to about
10.60 Lakh BPL households were also provided as against a target of 7
Lakh, an achievement of about 150%.
The Inter–regional transmission capacity of your Company has been
enhanced to 23,800 Mw with the commissioning of Rourkela-Raigarh 400kv
D/c transmission line in July 2011.
The business development opportunities continued to receive focussed
attention both in the domestic and international market. During
2010-11, your Company earned revenue of Rs.299.35 Crore towards
consultancy fee from its various ongoing assignments as compared to Rs.
269.17 Crore in last fiscal. The telecom segment also registered a
revenue of Rs.187.20 crore as compared to Rs.157.72 Crore in last fiscal.
on the subsidiary company set up by your Company for Independent system
operation viz. Power System operation Corporation Ltd (PoSoCo),
POWERGRID has transferred the movable assets and liabilities to PoSoCo
w.e.f. 1st october, 2010. PoSoCo is now fully functional and has
started billing the constituents for fees and charges from 1st october,
2010 in terms of CERC Regulations on Fees and Charges of Regional Load
Friends, POWERGRID, the Central Transmission Utility (CTU) of the
Country is playing a pivotal role in Inter-State Transmission network
planning and development both at regional and national level as well as
its implementation. A number of inter-state grid strengthening schemes
as well as inter-regional strengthening scheme have been identified by
CTU for implementation. As CTU, your Company is also mandated to
provide Short / Medium-term open Access (SToA/ MToA) and Long-term
As you are aware, Non-discriminatory open Access is the key for
development of a successful Competitive Electricity Market. Short-Term
open Access in inter-State transmission has been successfully
implemented. During the year, more than 19,900 transactions were
approved under open access, involving about 55,000 MUs of energy.
Towards sustainable development, as CTU, your Company has focused for
integration of emerging technologies like 1200kv UHvAC, ±800kv HvDC,
FACTS, Smart grid etc. into transmission sector development, which are
first of its kind in the Country.
As part of Corporate Social Responsibility (CSR), your Company is
making contributions to the society at large, wherein activities for
Socio-Economic development of weaker sections have been taken up. 1% of
PAT of the company of the preceding year is now earmarked as non
lapsable budget for CSR activities. During FY 2010-11, Rs. 15.58 crore
was spent on the development of infrastructure in nearby villages like
constructing class room, library, computer room for schools, primary
health centre, drinking & sanitation facility, check dam, drainage,
roads, community centre, etc. These facilities were created with the
objective of long lasting value and have multiplier effect on improving
the standard and quality of life of people.
Your Company has been ranked as 8th Fastest-growing Asian Companies and
18th Fastest-growing global Companies in the Platts Top 250 global
Energy Company rankings for the year 2010. Company has also featured in
the Forbes global 2000 list.
A major development in the transmission sector is that tariff based
competitive bidding has been effective for transmission projects w.e.f.
06th January, 2011. Competitive bidding, however, is not applicable for
transmission projects requiring upgradation/strengthening of existing
transmission lines and associated sub-stations and also not for
projects for which Bulk Power Transmission Agreement/Transmission
Service Agreement (BPTA/TSA) have been signed upto 05.01.2011. I wish
to share with you that POWERGRID had already signed BPTAs for nine nos.
of High Capacity Power Transmission Corridors which have a tentative
cost estimate of about ^58000 crore, to be executed progressively
through XII Plan and for a no. of other projects.
Exemptions have also been extended by Ministry of Power in July, 2011
from competitive bidding route for first two experimental works for
1200 kv UHvAC line; works to cater an urgent situation or any
requirement in compressed time schedule by CTU/State transmission
Utility (STU), as decided by Central govt. on a case to case basis; for
intra-state transmission projects by STUs for further 2 years beyond
6th Jan, 2011.
Lastly, I wish to share with you that I shall be demitting the office
on 31st August, 2011 upon attaining superannuation. Shri R. N. Nayak,
Director (operations) of your Company at present, shall be taking over
charge as Chairman and Managing Director from 1st September, 2011 in
terms of govt. order, to take the Company forward.
I am confident that with the support of dedicated and committed
workforce and continued support of esteemed shareholders, POWERGRID
will continue to excel and discharge its responsibilities, enhancing
value to stakeholders.
with best wishes,
(S. K. Chaturvedi)
Chairman & Managing Director
Place: New Delhi