It gives me immense pleasure to present on behalf of the Board of
Directors, the 23rd Annual Report on the performance of your Company
during the financial year ending March 31, 2012 together with Audited
Statement of Accounts, Auditors'' Report and Review of the Accounts by
the Comptroller and Auditor General of India for the review period.
Your Company has once again surpassed its performance targets set forth
under Memorandum of Understanding (MoU) with Ministry of Power (MoP),
Government of India. Based on overall performance, your Company is
poised to achieve ''Excellent'' rating for FY 2011-12 too.
Your Company, in a brief span of 20 years, has grown by leaps and
bounds and has carved a niche for itself amongst the largest
transmission utilities in the world. The Company has been contributing
significantly towards development of power sector in India through
continuous innovations in technical & managerial fields and by
undertaking coordinated development of power transmission network along
with effective and transparent operation of Regional Grids and National
In order to keep pace with changing business environment, your Company
set its ''Vision'' to be the World Class, Integrated, Global
Transmission Company with Dominant Leadership in Emerging Power Markets
Ensuring Reliability, Safety and Economy and aligned its mission and
objectives as a vanguard of foresight.
Out of many challenges met by your Company, the performance of your
Company has been specifically commended in (i) execution of last leg of
Transmission System in Creek area of Gujarat for evacuation of power
from the Country''s first Ultra Mega Power Project (UMPP) at Mundra
before stipulated time, and (ii) restoration of Kishenpur-Wagoora 400kV
Double circuit (D/c) transmission line in snow bound area of Kashmir
valley about 5000 ft. above sea level within 48 hours under extreme
hostile weather conditions.
Your Company has heralded creditable accomplishments in all its areas
of operations. The major achievements during the year are as under:
Rs. Investment of Rs. 17,814 Crore, an increase of about 48% over last
- Added about 10,600 circuit kilometre (ckm) of Extra High Voltage
(EHV) transmission lines, 15 new EHV sub-stations and transformation
capacity of more than 30,000 Mega Volt Ampere (MVA).
- Record commissioning of Assets worth Rs. 14,021 Crore.
- Investment approval accorded for 43 new transmission projects worth
about Rs. 39,225 Crore.
- Transmission system availability attained - 99.94%, highest so far
in the history of the Company.
- With the addition of Inter-Regional power transfer capacity of 5,600
MegaWatt (MW), total inter-regional capacity of National Grid enhanced
to 28,000 MW.
(Figures in Rs. Crore, except per share data)
Description 2011-12 2010-11 Y-o-Y Growth
Transmission Charges 9,544 7,903 20.76%
Consultancy 290 299 (3.0%)
Telecom 201 187 7.5%
Other Income 750 710 5.6%
Total Income 10,785 9,099 18.5%
Profit After Tax (PAT) 3,255 2,697 20.7%
Earnings per Share (Rs.) 7.03 6.19 13.6%
Book Value per Share (Rs.) 50.73 46.12 10.0%
Gross Fixed Assets 63,387 50,343 25.9%
Long term borrowings * 51,752 39,433 31.2%
Net Worth 23,488 21,351 10.0%
Debt Equity Ratio 69:31 65:35 -
Commissioning 14,021 7,313 91.7%
- including current maturities of long term borrowings.
As on April 1, 2012, transmission assets of about 92,981 ckm of EHV
transmission lines, 150 EHV sub-stations and transformation capacity of
124,525 MVA, spread over the length and breadth of the Country are
under operation. Your Company continues to wheel about 50% of total
power generated in the Country through its transmission network.
Your Company consistently maintains high availability of its
transmission network by implementing technologically advanced
operational techniques such as Hot Line Maintenance, Washing of
Insulators hotline with the use of helicopters, Equipment Condition
Monitoring techniques including Dynamic Testing of relays,
Thermo-vision Scanning, Frequency Response Analysis (FRA) for
transformers and reactors, large scale automation of sub-stations,
etc.. Presently, 32 sub-stations of your Company are being operated
remotely and many new sub-stations are being designed for remote
operation. For further improvement in operational efficiency, a
National Transmission Asset Management Centre is being established to
facilitate centralised operation, monitoring & control of sub-stations
remotely. This will help in optimal utilisation of manpower & other
resources of a group of substations by creating Maintenance Service
Hub facilities, and reduce the response time in case of faults &
Replacement of conventional insulators with polymer insulators at
polluted stretches in NCR area has contributed significantly in
achieving safe, secure & reliable operation of Grid during foggy
Average availability of transmission systems during the year 2011-12
was maintained at 99.94%, highest ever in the history of the Company.
Number of trippings per line was also abated at 0.59.
To meet eventualities like earthquake, fire, cyclone, landslides,
sabotage, etc., your Company has kept state-of-the-art Emergency
Restoration Systems (ERS) at strategic locations for restoration of
collapsed transmission line towers in shortest possible time. Further,
to mitigate the above eventualities in case of substation, a mobile
400/220kV ERS substation is being procured, which will facilitate quick
deployment & restoration of sub-station in only 1-2 weeks, which
otherwise may take several months.
Some potent options are also being explored like use of robotic
technology for condition monitoring of conductor, earthwire & hardwares
besides aerial patrolling of transmission lines using helicopters.
Your Company puts its best efforts to implement transmission projects
within stipulated time frame to derive maximum economic benefits.
Further, your Company takes a variety of measures such as advanced and
cost effective Integrated Project Management and Control System (IPMCS)
for total project review and monitoring, Standardisation of Designs,
Project Review Meetings (PRMs) at regular intervals through video
conferencing, pre-emptive measures and advance actions on various
project linked activities such as land acquisition, survey and soil
investigations, tender activities, funding tie-up, etc. in parallel
with project investment approval process.
All these dynamic facets led to excellent performance on project
implementation front during FY 2011-12 and not a single MW power is
bottled-up for want of our transmission. Transmission projects worth
about Rs. 14,021 Crore were commissioned during the year, thereby adding
about 10,600 ckm, 15 sub-stations and transformation capacity of more
than 30,000 MVA in the transmission system. Major 400kV transmission
lines commissioned during the year include Korba STPS-Raipur D/c,
Wardha-Parli D/c(Quad), Baripada-Mendhasal D/c,
Mundra-Bachau-Ranchorpura D/c (triple snowbird), Maithon RB-Ranchi D/c,
Uri-II - Wagoora single circuit (S/c), Mauda-Wardha D/c(Quad) &
Biharshariff-Sasaram D/c(Quad) lines. Major 765kV transmission lines
commissioned during the year include Gaya-Balia, Balia-Lucknow,
Seoni-Wardha, Bina-Indore, Sasaram-Fatehpur (Circuit-1), Gaya-Sasaram
Notably, timely commissioning of 400kV D/C Mundra-Ranchorpura in
September''11 and 400kV D/C Mundra-Limbdi D/c (triple snowbird) lines in
February''12 associated with the 1st UMPP Project of the Country
enhanced the image of confidence in power sector. In spite of severe
Right-of-Way (RoW) problems, readiness of these systems had been
ensured by your Company on its commitment.
During the year, 43 new projects with an estimated cost of about Rs.
39225 Crore involving about 16900 Ckt km of transmission lines, 22 new
sub-stations and transformation capacity of about 56000 MVA, HVDC
terminal capacity of 3000 MW and 16200 km of OPGW fibre optic cable
were approved and taken up for implementation.
Your Company has recorded an impressive financial performance during FY
2011-12, achieving a turnover of Rs. 10,785 Crore and Net Profit of Rs.
3,255 Crore as compared to Rs. 9,099 Crore and Rs. 2,697 Crore respectively
during FY 2010-11. The gross asset base of the Company has been
enhanced to Rs. 63,387 Crore from Rs. 50,343 Crore in 2010-11, an increase
of about 25.9%.
Your Company, through its improved performance in Telecom and
Consultancy businesses, also enhanced value for the shareholders.
Capital Investment and Fund Mobilization
The Company undertook capital investment of Rs. 17,814 Crore during the
financial year 2011-12, which is about 48% higher than last year. Rs.
9,698 Crore were mobilised from domestic market through private
placement of bonds with attractive coupon rates and proceeds of ongoing
loans from multilateral funding agencies, viz. The World Bank (WB) and
Asian Development Bank (ADB) were utilised, besides accrued internal
During the year, your Company has also tied up a line of credit of Rs.
5000 Crore from State Bank of India, of which Rs. 1000 Crore has been
drawn in FY 2011-12 and balance is to be drawn in the subsequent years
for part financing of the capital expenditure of POWERGRID projects.
Domestic credit rating agencies namely, CRISIL, CARE and ICRA have
assigned credit ratings of AAA/Stable (triple AAA with stable outlook),
AAA and LAAA respectively for our bonds issue. These credit rating
agencies have also assigned AAA (Highest Safety) and LAAA ratings for
In addition to above, process of mobilization of additional loans from
The World Bank (WB) and ADB was also taken up during the year for
implementation of various transmission projects during XII Plan.
Towards this, two loan agreements with ADB for a loan amount totalling
to USD 576 million with sovereign guarantee, and also for the first
time, a Non-Sovereign loan of USD 250 million on commercial principle
basis was signed in March, 2012.
For FY 2011-12, your Company has proposed a final dividend of Rs. 1.31
per share in addition to Rs. 0.80 per share of interim dividend paid in
Feb. 2012. The final dividend shall be paid after your approval at the
Annual General Meeting. Thus, total dividend pay out for the year
amounts to Rs. 976.89 Crore (including an interim dividend of Rs. 370.39
Crore) as against Rs. 810.23 Crore paid during the previous year. The
total dividend pay out including dividend tax accounts for 34.8% of
Profit after Tax of the Company.
Your Company is driven by its persistent zeal to build relationships
and create wealth for its stakeholders through deploying cutting edge
technology, adopting global best practices, optimum utilization of
resources and sustainable development.
DIRECTORS'' RESPONSIBILITY STATEMENT
As required u/s 217 (2AA) of the Companies Act, 1956, your Directors
i) In the preparation of the Annual Accounts, the applicable accounting
standards have been followed;
ii) The Directors have selected such accounting policies and applied
them consistently and made judgments and estimates that are reasonable
and prudent so as to give a true and fair view of the state of affairs
of the Company at the end of the financial year and of the profit of
the Company for that period;
iii) The Directors have taken proper and sufficient care for the
maintenance of adequate records in accordance with the provisions of
the Act for safeguarding the assets of the Company and for preventing
and detecting fraud and other irregularities;
iv) The Directors have prepared the annual accounts on a going concern
Point of Connection (PoC) Charges tariff sharing mechanism through
Central Electricity Regulatory Commission Regulations 2010, for Sharing
of Transmission Charges and Losses has been implemented in the
transmission sector w.e.f. July 1, 2011. POWERGRID as Central
Transmission Utility (CTU) of the Country has been assigned the
responsibility to carry out activities like raising of transmission
charge bills on behalf of all the ISTS Licensees, collecting the amount
and disbursing the same to them. In order to implement the Billing,
Collection and Disbursement (BCD), a Portal has been developed by your
Company during the year through which bills of transmission charges are
prepared, raised and uploaded on the website for about 61 Designated
ISTS Customers (DICs) including payment details by the customers.
Through petitions and follow up with Central Electricity Regulatory
Commission (CERC), Regulatory Approvals have been secured by your
Company for transmission projects worth total estimated cost of about Rs.
26,170 Crore during the year so as to take up these projects for
investment approval and execution.
DEVELOPMENT OF NATIONAL GRID
In line with the Plan for enhancement of inter-regional power transfer
capacity of the National Grid, Rourkela–Raigarh 400kV D/c,
Sasaram–Fatehpur 765kV S/c & Gaya–Balia 765kV S/c inter-regional links
with aggregate capacity of 5,600 MW have been commissioned. With this,
the cumulative inter-regional power transfer capacity of National Grid
has been enhanced to about 28,000 MW. Commissioning of these
inter-regional links has strengthened the inter-regional grid capacity
of Eastern Region with Western Region and Northern Region. This would
go a long way in promoting economic energy exchange by facilitating
transfer of power across the Country.
Four major regional power grids of the country, namely Northern,
Eastern, North-Eastern & Western continued to operate at same frequency
in synchronous mode as one of the largest synchronous grid in the world
with total installed capacity of about 148,000 MW. Southern Regional
grid, which is presently connected through various High Voltage Direct
Current (HVDC) links with rest of the grid is planned to be connected
synchronously by early 2014 through high capacity Raichur–Sholapur
765kV (2xS/c) lines.
To further strengthen the National Grid, various high capacity HVDC and
EHV Alternating Current (EHVAC) inter-regional links with total
capacity of 38,400 MW have been planned to take care of inter-regional
power transfer requirement of various planned generation projects
including Independent Power Producers (IPPs) scheduled for
commissioning in XII Plan. The Inter-regional power transfer capacity
of National Grid thus envisaged to be enhanced to about 66,400 MW by
end of XII Plan.
GRID MANAGEMENT AND OPEN ACCESS
Grid Management function is continued to be looked after by Power
System Operation Corporation Limited (POSOCO), a 100% subsidiary
company of POWERGRID. Unified Load Despatch & Communication (ULDC)
schemes have continued to bring quality and economy in operation of
power system besides improving data availability, visibility and
With the ever expanding transmission network in the Country,
complexities of grid operation are also escalating. Keeping this in
mind, the facilities at all the five Regional Load Despatch Centers
(RLDCs) and National Load Despatch Centre (NLDC) are being upgraded
continuously through deployment of latest technology. Indian Power Grid
had not experienced any major grid disturbance during the past nine
years. However, the electricity grid experienced two major disturbances
consecutively on 30th July & 31st July, 2012. While the first
disturbance affected only Northern Region, the second one affected
Northern, Eastern and North Eastern Regions. However, the essential
loads were restored at the fastest pace within few hours of the
incidents and power supply was restored progressively and normalised
completely on the same day of the incident(s). Further, to avoid such
recurrence in future, various actions have been/are being taken by your
Our strong transmission network and modernised RLDCs have facilitated
about 58 Billion Units (BUs) of inter-regional energy transfer across
the Country, as compared to previous year (about 56 BUs). Growth of
inter-regional power exchange helped in meeting more demand in energy
deficit regions besides achieving overall economy.
During FY 2011-12, 24,109 transactions involving about 67 BUs of energy
were approved under short term open access (STOA) compared to 19,883
transactions and about 55 BUs of energy during 2010-11.
Your Company, as CTU is the nodal agency for grant of Long Term Access
(LTA), Medium Term Open Access (MTOA) and Connectivity. LTA has been
granted for about 82,000 MW to 133 nos. of IPP projects, MTOA has been
granted for about 2400 MW to 33 nos. of applicants and connectivity has
been granted to 67 nos. of eligible applicants for about 59,710 MW.
Your Company is continuously striving to provide cost effective &
quality services to its valued customers thereby deriving high customer
satisfaction. To achieve this, your Company is implementing appropriate
quality measures at every stage from conceptualisation of project till
commissioning and subsequently during operational phase. Quality
improvement techniques are being adopted to identify the areas of
improvement and develop action Plan for continuous quality improvement
in all of its activities.
During the year, Integrated Management System of your Company was
reviewed and based on evaluation of implementation of the latest
systems and procedures, the revised certification was acclaimed. Your
Company stands certified for Integrated Management System as per
Publicly Available Specification, PAS 99:2006 integrating requirements
of ISO 9001:2008 (Quality Management System), ISO 14001:2004
(Environment Management System) and OHSAS 18001:2007 (Occupational
Health & Safety Management System). Establishments of your Company have
been audited for its Social accountability systems & certification of
entire Corporation for Social Accountability Standard, SA 8000:2008 is
re-confirmed. Your Company is following standard manufacturing quality
Plan both at national & international level during inspection at
various manufacturing stages and adhered to standard O&M manuals for
operation & maintenance of its transmission system.
For capacity building, specially considering vast geographical spread
of our operations, vendor development has been taken-up on priority to
meet project requirements in execution as well as in supply of 765kV
transformers, reactors & other critical equipment.
With a target to move towards zero product inspection, around 50
manufacturing units spread all over the Country/overseas were taken-up
for process audits at their works.
Quality audits at sites have also been taken up during the year.
Appropriate corrective actions were also ensured based on Quality Audit
feedback. Quality Audit on implementation of Field Quality Plans was
also carried out for assurance of quality during transportation,
storage, erection and commissioning activities during implementation of
Your Company has undertaken several technological advancements aimed at
conserving RoW, minimizing impact on natural resources & human habitat
and cost effectiveness in evacuation of power by upgrading & uprating
of existing transmission lines, use of High Temperature endurance
Conductors, Series Compensation including Thyristor Control, Flexible
AC Transmission System (FACTS), use of Multi Circuits, Compact & Tall
Towers, Gas Insulated Sub-stations (GIS), High Surge Impedance Loading
(HSIL) Lines, Large Scale Automation of Sub-stations, unmanned
Power transmission at higher voltage levels not only offer increased
power transfer capability, it also helps in reduction of transmission
losses and reduction of Right of Way requirement. Experienced with
implementation and operation of ±500kV HVDC & 765kV EHVAC transmission
systems, your Company is now working on higher transmission voltages of
800kV HVDC & 1200kV Ultra High Voltage AC (UHVAC).
800kV multi-terminal HVDC System
Implementation of ±800kV, 6000 MW multi-terminal HVDC system of around
2000 km from North Eastern Region (Biswanath Chariali in Assam and
Alipurduar of West Bengal) to Northern Region (Agra in Uttar Pradesh)
is under construction. It shall be amongst world''s largest ±800kV
multi-terminal HVDC system.
1200kV UHVAC Transmission System
To meet the long-term bulk power transfer requirement an overlaying
super grid with 1200kV UHVAC system has been envisaged. The 1200kV
UHVAC technology, the highest voltage level in the world, is being
developed by your Company in collaboration with 35 Indian
manufacturers. This is one of the unique R&D projects in public-private
The pilot 1200kV S/c line was successfully test charged and 1200 kV D/c
line erected at 1200kV UHVAC National Test Station at Bina, Madhya
Pradesh in February, 2012 by your Company. The 1200 kV UHVAC technology
current under field testing.
This endeavour shall benefit Indian power sector to enter into new era
of 1200kV level with 1200kV class equipment from the manufacturers
Technological initiatives such as Pollution & Lightning mapping of
transmission system, Process bus technology & Superconducting (Zero
Resistance) Technology are being taken up/ explored for their viability
in Indian Power System to ensure more efficient, safe, secure &
reliable operation of Grid.
SMART GRID TECHNOLOGY
Smart Grid is confluence of Information, Communications & Electrical/
Digital technologies. Smart Grid, apart from facilitating real time
monitoring and control of power system will help in reduction of AT&C
losses, peak load management/ demand response, integration of renewable
energy, power quality management, outage management etc.. Smart Grid
will act as a backbone infrastructure to enable new business models
like smart city, electric vehicles, smart communities apart from more
resilient and efficient energy system and tariff structures.
Your Company is taking leadership initiative for implementation of
Smart Grid Technology in the Country and has already installed 8 Nos.
of Phasor Measurement Units (PMUs) as part of Wide Area Measurement
Systems (WAMS) as a pilot in Northern Region Grid.
Unified Real Time Dynamic State Measurement (URTDSM) project for
installation of PMUs, Phasor Data Concentrators (PDCs) etc. has been
formulated. First test lab for PMU and PDC testing in India is being
established by your Company at Bhiwadi in Northern Region.
Secretariat of the prestigious India Smart Grid Task Force (ISGTF)
forum, is being operated by your Company and providing technical
support in evaluation of proposals. Model Request for Proposals (RfP)
has been prepared for Smart Grid Pilot project in distribution sector.
Further, your Company is also providing technical support for Ministry
of Power in evaluation of proposals received from Utilities for
establishing Pilot Project in Distribution Sector.
Your Company has formed specialised Smart Grid department to take up
implementation of Smart Grid / Smart City Projects. Detailed Project
Report (DPR) for a number of cities like Amritsar, Raipur (Satara),
Puducherry, Agartala, and Panipat for pilot smart grid projects have
been submitted under India Smart Grid Task Force. Further, project
reports for implementation of Smart grid/ cities for Firozabad and
Katra have been submitted and for Bidhuna, Shikohabad, Jammu
(Gandhinagar Division), Baghat, Gulmarg, Pahalgam, Charar-i-Sharief,
Chitradurga (Karnataka), District/cities of Tripura, Chhatisgarh,
Haryana, Punjab, Bihar etc. are under preparation.
The pilot Smart grid/ Smart city project in Puducherry has been taken
up for which an MOU has been signed with Electricity Dept., Govt. of
Puducherry in March 2012. In all, 63 organizations have joined hands
with your Company for implementation this pilot project.
Your Company has evolved a comprehensive scheme for Green Energy
Corridor associated with renewable energy sources integration into the
Grid. Also, it has identified other measures to facilitate smooth
integration of large scale renewable generation capacity addition.
PERFORMANCE IN TELECOM
Your Company with its brand name ''POWERTEL'' in Telecom business is the
only utility in the Country having overhead optic fibre network using
OPGW (Optical Ground Wire) on power transmission lines. POWERGRID has
an all India Broad Band Telecom Network of about 25000 Kms.
It is a matter of pride that your Company is one of the few telecom
players with a marked presence in remote areas of NER, J&K etc.. It has
acquired National Long Distance (NLD) and Internet Service Provider
(ISP-A) and Infrastructure Provider Category-I (IP-I) licences to
provide a variety of services.
During the year, few more cities viz. Kottayam, Nadia, Puruliya,
Jalpaigudi, Bhagalpur, Saifai & Kurukshetra have been added to our
telecom network, taking the tally to 206 cities.
During the year, your Company added 11 new customers on its network,
further increasing its already illustrious list of Customers, which
include prime telecom companies, prestigious Government organizations,
International Operators and various Government Offices. In addition,
the Company is also planning to attract customers from entertainment
and broadcasting industry.
Total Order Book of Telecom rose to Rs. 1,050 Crore from Rs. 650 Crore in
previous year (i.e. up by 62%) despite a general slowdown experienced
by Telecom industry due to intense price wars. Telecom Backbone system
availability during the fiscal was maintained at 99.97%.
National Knowledge Network (NKN) project
Your Company is one of the implementing agencies for the prestigious
National Knowledge Network (NKN) project through which Government plans
to connect all knowledge centres across the Country such as IITs, IISc,
etc. on high speed connectivity. Revenue realised under this project
during FY 2011-12 is Rs. 45.02 Crore.
National Optical Fiber Network (NOFN) project
Your Company is a member of Advisory Body and Core Committee of
National Optical Fiber Network (NOFN) project through which Government
of India plans to connect 250,000 Gram Panchayats on Optical Fiber
network at an estimated cost of Rs. 20,000 Crore with completion schedule
of 24 months, utilising existing facilities of BSNL, POWERGRID and
RAILTEL. POWERGRID share in the project is expected to be 20% involving
50,000 Gram Panchayats. A Pilot Project has been taken up in Vizag
Multi Protocol Lable Switching (MPLS)
Your Company has taken up implementation of MPLS through Virtual
Private Network which will provide highly Secure & Reliable Network
connectivity (any-to-any) on Internet Protocol (Routing). Apart from
being cost effective, MPLS offers advantages like maximum Bandwidth
Utilization, Scalable & Simpler Customer Connectivity (Radial
Connectivity), easy Provisioning & Maintenance etc..
BUSINESS DEVELOPMENT & CONSULTANCY
Your Company has established itself as one of the leading consultants
in the field of Power Transmission, Sub-transmission, Distribution,
Load Despatch & Communication and Telecom sectors and is utilising this
expertise to offer consultancy services world wide.
On the domestic front, during FY 2011-12, your Company has bagged 41
new assignments having project cost of Rs. 1002 Crore. Further, your
Company has been appointed as Design cum Implementation Supervision
Consultant for strengthening of Transmission & Distribution System of 6
States of NER having Project cost of around Rs. 8400 Crore.
In international arena, the Company is working in 11 countries viz.
Nepal, Bhutan, Bangladesh, Afghanistan, Sri Lanka, Myanmar, UAE,
Nigeria, Ethiopia, Kenya & Tajikistan.
During the year, your Company signed Memorandum of Understanding (MoU)
with Kenya Electricity Transmission Co. Ltd. (KETRACO) and Ethiopian
Electric Power Corporation (EEPCo) for providing assistance for
development of Power Transmission network in their countries. In
addition, a General Cooperation Agreement was signed with Gulf
Cooperation Council Interconnection Authority (GCCIA) for providing
technical services in areas of Operation and Maintenance of HVDC,
Telecom, Grid Operations, Technical services, system planning and
operation etc.. Further, an MoU was signed with International Finance
Corporation (IFC), an extended arm of the World Bank, for extending
co-operation between POWERGRID and IFC to identify and evaluate
transmission projects for development and/or Own/Co-own transmission
projects in Asian and African Continents by providing financial and
technical services to Project''s client.
POWERGRID has emerged as a strong player in South Asia and is playing
an active role in formation of a strong SAARC grid for effective
utilization of resources for mutual benefits. Presently, various
electrical interconnections exist between India & Bhutan and India &
Nepal and these are being further strengthened for substantial exchange
of power across the borders. An asynchronous interconnection between
India & Bangladesh is under implementation. Also, feasibility study for
an under-sea interconnection between India and Sri Lanka is under
finalization and 500MW Amritsar (India) - Lahore (Pakistan) HVDC link
between India and Pakistan is under discussion.
Your Company intends to enter into manufacturing of transmission line
towers/ conductors/ equipment by forming Joint Venture Companies (JVCs)
with the manufacturers of basic raw material. In this direction, your
Company has signed MoUs with National Aluminium Company Limited (NALCO)
and Rashtriya Ispat Nigam Limited (RINL) to explore the opportunity of
manufacturing conductors and transmission line towers respectively,
including research and development.
CONTRIBUTION IN DISTRIBUTION REFORMS
To enable end consumers to derive benefit of additions in generation &
transmission, Govt. of India''s Rajiv Gandhi Grameen Vidhyutikaran
Yojana (RGGVY) Scheme aims at providing electricity in all villages &
habitations and provides access to electricity to all rural below
poverty line (BPL) households.
Under RGGVY, your Company has been assigned the job for execution of
rural electrification works in 65 districts in the Country. Upto end
of XI plan, your Company has created infrastructure for electrification
of 64,803 villages out of which 32,318 were un- electrified villages
and provided 33.57 lac Service Connections to BPL households.
During FY 2011-12, infrastructure for electrification in 9358 villages,
including 1688 un-electrified villages, was created and Service
connections were provided to about 6.783 Lakh BPL households.
By end of FY 2011-12 cumulatively 30,178 Villages have been charged
including 11,229 during the year.
XI PLAN ACHIEVEMENTS
Your Company surpassed its planned capital investment of Rs. 55,000 Crore
during XI Plan and made an investment of more than Rs. 55,300 Crore for
development of inter-State transmission system.
Achievements in XI Plan provide ample testimony to the untiring efforts
put in by your Company. To propel the growth of your Company to the
next orbit, Govt. of India has accorded the prestigious Navratna Status
in May 2008, thereby providing greater autonomy & powers.
Accelerated growth path of your Company during XI Plan can be seen from
the following table, which shows a phenomenal built up of about 50%
capacity of Company''s present network in XI Plan only w.r.t. the
capacity as built in last many years.
Parameter At the
end of X At the
end of XI Addition
during XI Growth in
Plan Plan Plan
network (ckm) 59,461 92,981 33,520 56.37%
(nos.) 104 150 46 44.23%
Capacity (MVA) 59,415 124,525 65,110 109.59%
Capacity (MW) 14,100 28,000 13,900 98.58%
(Rs. Crore) 29,015 63,387 34,372 118.46%
During XI Plan, your Company has operationalised 765kV EHVAC level by
charging Sipat-Seoni transmission line at its rated voltage in October,
2007. Additionally, during the plan, seven (7) number of 765 kV
sub-station and above 3500 ckm. of 765 kV transmission lines have been
added. Further, the highest voltage level in the world, 1200kV UHVAC
Test Station has been test charged.
National Load Despatch Centre (NLDC), the apex body to ensure
integrated operation of the national power system at national level,
commissioned in Feb., 2009. Power System Operation Corporation Limited
(POSOCO), a 100% subsidiary of your Company, set up to look after Grid
Management function in line with GoI directive, started commercial
operation from 1st October, 2010.
As part of prestigious international consultancy assignments, the
construction of 220kV Transmission line from Pul-e-Khumri to Kabul in
Afghanistan completed in Jan., 2009 and 400kV GIS substation in Dubai
(UAE) successfully commissioned in 2010.
GoI has made Tariff Based Competitive Bidding (TBCB) mandatory for
inter-State Transmission System from January 5, 2011. Leveraging its
competitive edge, your Company has secured both the transmission
projects invited under TBCB since then.
XII PLAN INVESTMENT PROGRAMME
Considering the generation capacity addition of 75,7851 MW envisaged
during XII Plan, total fund requirement for transmission sector is
estimated at about Rs. 180,000 Crore. In this, major portion of the
investment i.e. about Rs. 100,000 Crore is planned by the Company during
XII Plan for further development of inter-State transmission systems
which includes development of High Capacity Power Transmission
Corridors (HCPTCs) apart from inter-regional links for enhancement of
National Grid capacity & various system strengthening schemes.
Your Company is placed in a comfortable position in terms of resource
mobilisation owing to its excellent credit rating. Loan requirement is
planned to be met through borrowings from multilateral funding agencies
(The World Bank and Asian Development Bank), Supplier''s credit, ECB
loan and from domestic sources on the basis of requirement.
ERP & IT
Your Company has made remarkable strides in the area of Information
Technology (IT) and systematically developed, through in-house efforts,
software applications for most of the functional areas for deploying IT
for efficient and effective discharge of its objectives. Laptops and
datacards have been provided to employees to enable them to discharge
their functions efficiently.
Main package of ERP Project has been awarded. The project includes
deployment of Data Centre, Disaster Recovery Centre and augmentation of
Initiative towards implementation of Information Security Management
System (ISMS) leading to ISO:27001 certification across the
organization have been undertaken.
Transmission projects are environmentally clean and involve neither any
disposal of solid waste, effluents and hazardous substances in land,
air and water nor large scale excavation which may result in soil
erosion. Transmission line projects rather help in reducing
environmental impacts of power projects, especially thermal power
projects. Generation Projects could be located far away from inhabited
areas to have minimum transportation of coal and for bulk power
transfer, high capacity transmission lines are set-up to dispatch power
to load centre located distance apart.
Your Company has proactively followed the Environmental and Social
Policy & Procedures (ESPP) for the conservation of forests, flora &
fauna, resettlement & rehabilitation. POWERGRID believes that its
guiding principles of Reliability, Security and Economy have to match
up to the rising expectations of a cleaner, safer, healthier
environment for people, both affected and benefited by its activities.
After adoption of ESPP, forest involvement on our transmission lines
have been reduced to 1.35% from the level of 6% in 1998.
POWERGRID was the first Company in power sector to come out with
''Sustainability Report'' and 2nd such report shall be coming out
shortly, providing all stakeholders a clear picture of our
contributions to sustainable development through its activities.
POWERGRID has undertaken Rain Water Harvesting systems in 6
Sub-stations with total expenditure of Rs. 25.75 lakhs as part of the
Company''s Sustainable Development initiative to contribute to the
endurance of our ground water reserves.
Transfer of huge quantum of power across the regions poses massive
challenges like RoW, clearing of forest, etc.. Therefore, your Company
is focusing on more number of high capacity 800kV HVDC systems and
765kV D/c lines to minimise RoW and environmental problems. In
addition, as mentioned your Company is developing 1200kV AC technology,
highest AC voltage level in the world, as next higher AC voltage in the
Country. The 1200kV AC voltage line would enable transfer of 7000-8000
MW power over single corridor which will help in utilizing the
right-of-way in an optimal manner and minimizing of loss of forest,
flora & fauna and scarce natural resource like land etc..
Besides, your Company has successfully demonstrated up-gradation of
existing lower voltage lines to higher voltage operation to enhance the
power transmission capacity within the same corridor without felling
Optimization of RoW and its associated environmental and social impact
in extra high voltage transmission line are far reaching and
implementation of this voltage/ technology will go a long way in
minimizing environmental and social impact of high voltage transmission
For overall sustainable development of the sector, your company''s major
thrust is on inclusive development of the sector. Towards this, your
company besides undertaking capacity building program for various State
power utilities, is in the process of forming Joint Venture Companies
with State power utilities to take up intra-State transmission System &
management contract for distribution circles etc.
As a step further a specalised dedicated Smart Grid, Distribution
Management, Energy Efficiency and Carbon Emmission reduction Cells have
been created to take up these activities not only for POWERGRID
establishment but for other utilities as well. Certification of our
employees as Energy Auditor is being taken up in big way. During the
year, Energy audit was completed at 12 sub-stations and reports have
CORPORATE SOCIAL RESPONSIBILITY
Your Company emphasises on the overall development of areas and
communities around its establishments. It undertakes various community
development schemes through provision of facilities like health,
education, drinking water besides infrastructure like roads, community
During FY 2011-12, CSR expenditure of Rs. 24.93 Crore [0.92% of Profit
after tax (PAT) of the preceding year] was made on carrying out more
than 400 CSR projects, including 166 in the area of Infrastructure, 82
in Health, 57 in Education, 33 in Environment and 40 in Livelihood.
These projects were carried out in consultation with the local
stakeholders in the vicinity of the establishments, and therefore, have
played a pivotal role in identifying the most pressing needs, and
subsequently, improving the socio-economic conditions of the
marginalized sections. During this period, more than 1.55 lakh tree
saplings were also planted. There is an ambitious plan of planting over
one million trees in the coming years.
Your Company has also collaborated with number of specialized agencies
to roll out its CSR initiatives. Some of the significant interventions
were in the field of Capacity building training to youths in
Transmission Line Tower erection which are being conducted in
association with leading manufacturers. During this year, 213 unskilled
workers have been trained through Capacity Building Programme and
gainfully employed in the transmission industry. Livelihood training
programmes were also imparted to unemployed rural youth in tailoring,
cutting/ stitching, embroidery, automobile repairing, handloom weaving,
food & fruit processing, repairing of household appliances, etc. to
secure employment or be self employed. Your Company has adopted
Government ITIs at Buxar&Marhoura in Bihar, Bargi-Jabalpur in M.P. and
Bhadravati in Maharashtra for upgradation under Public Private
Partnership mode of Adopt an ITI scheme of GOI. Total about 500
students have passed out from these institutions in various trade such
as moulding, welding, plumbing, electrical, mechanical etc. Further
your company is in the process of setting up of two (2) new ITIs each
in the States of J & K and Odisha for enhancing the capacity building
of the sector as well as employablity of the youth of our country.
Some of the other noteworthy CSR initiatives include reclamation of
Reserve Forest in Assam wherein tree saplings were planted in 100
hectares of land, providing mid-day meals to primary students in
Haryana, providing Maternal & Child Health care services to around
45,000 villagers in backward areas of Mewat, Jhajjar & Gurgaon and
providing broadband connectivity to few remote village panchayats in
Maharashtra, Odisha & Assam.
PEOPLE, OUR CORE STRENGTH
Attracting Talent, Nurturing & Development of Human Capital Our
employees & their continuous development are the most valuable asset &
investment of the Company. Your Company encourage innovation,
meritocracy and the pursuit of excellence through continuous
development. In this direction, your company is setting up a
state-of-the-art HRD centre at Manesar named POWERGRID Academy of
Leadership (PAL) at an estimated cost of over Rs. 55 crore for
development of the employees of POWEGRID as well as that of State
During FY 2011-12, POWERGRID has inducted 394 personnel at various
levels viz., Executives, Supervisors, Workmen through open
advertisement on all India basis and campus selection from reputed
engineering and management institutes for executives, and for
non-executives through employment exchanges and local advertisement at
For overall competency enhancement of employees in synchronization with
business needs, environment and individual development Plan, your
Company has boosted up its training efforts and an average 6.15
training mandays per employee has been achieved.
A centre for training on maintenance of live high voltage lines of up
to 400kV has been established at Hyderabad 400kV sub-station. The
state-of-the-art facility has been recognised as Category-I training
centre in power sector by Central Electricity Authority for imparting
training in Hot Line Maintenance on the live power transmission lines.
MoUs have been signed with Foundation of Innovation and Technology
Transfer of IIT, Delhi (FITT, IIT Delhi) for conducting certification
programmes for operation & maintenance of transmission system and
Corporate Yellow Pages of your Company have been collated to cope with
the competitive regime. In fact, with the arrival of Knowledge economy,
your Company is rising up to manage the knowledge assets, share, use,
re-use, capitalize them and remain ahead of the competition.
Project management is the value driver that helps the organization gets
most out of its performance. In view of the organisational need, 46
executives got the Certification in Project Management from
Keeping in pace with changing needs and welfare of employees, various
policies and rules are being revised/ amended from time to time.
Various hospitals adjacent to our establishments have been empanelled
both at Corporate Centre as well as in other establishments for benefit
of Employees and their dependents. The Cafeteria in the Corporate
Office and Food Lounge of Multi Purpose hall of your Company is
conferred with ISO 22000: 2005 where quality food is served to
Cultural programmes are conducted periodically for promoting healthy
community living and celebrating various occasions like Diwali
get-together, Holi Milan, New Year, Raising Day, etc..
The Company has also been organizing Intra & Inter-Regional Sports
Competitions for Kabaddi, Cricket, Volleyball, Chess, Badminton etc.
and regularly participating in the Inter-PSU Sports Meet. POWERGRID
players in Kabaddi, Table tennis and Lawn- Tennis have stood
meritorious and bagged awards in the Inter-PSU tournaments. Your
Company''s team has emerged as National Champions in prestigious
National Management Games-2012, organised by All India Management
Association and qualified to represent India in Asian Management Games
POWERGRID National & Regional Bipartite Committees provides a platform
for addressing issues related to workmen. During the year, the
Industrial Relations have been maintained cordial and no manday was
The Company formulated its Citizen''s Charter providing a visible front
of its mission & objectives, commitments, terms of service and its
obligation to various stakeholders. In the Citizen''s Charter
information is available about Company''s schemes, policies, project
plans of the Corporation and issues of general interest to
Implementation of Official Language
Your Company has proven its commitment for implementation of Rajbhasha
Policy of Govt. of India and is sensitive towards our heritage, social
and cultural concerns.
All out efforts have been made to ensure use of Hindi in all aspects of
management at all levels in the Corporation. For increased use of
Official language, various activities were undertaken such as
organizing workshops to impart training in translation, enhancing
working knowledge through organizing computer trainings and Hindi
classes, etc.. Akhil Bhartiya Rajbhasha Sammelan, Kavi Sammelan (poetry
sessions), Kavita Pratiyogita, Drama, Publication of Hindi Magazines/
papers, competitions and meetings, etc. are regularly organized. To
provide further inspiration to work in Hindi, employees are nominated
for external Hindi training programmes. The efforts made in
implementation of Rajbasha have been applauded in many forums and the
Company has received many accolades.
Corporate Image through Communication Management
Building Communication Capital is as important as Human Capital to
build relation between organisation and its stakeholders. Your Company
has adopted a number of communication interventions to present itself
as an infrastructure major contributing to nation building.
In order to facilitate dissemination of information and interaction
with all stakeholders with regard to our achievements, growth, recent
developments on operational and financial front besides updation of
website, regular press communiqué have been issued by your Company and
face to face interaction of the management arranged with the analysts
and stakeholders at the Quarterly Analyst Meet and Press Meet. This has
enhanced brand exposure with existing and potential clients, investors
and other stakeholders. Information and latest updates & announcements
regarding the Company are posted on Company''s website including
Financial results, approval to projects granted by the Board etc..
Your Company successfully participated in the India International Trade
Fair (IITF) 2011 exhibition by creating a theme stall based on 1200kV
UHVAC transmission line. The Company also participated in other
business oriented regional exhibitions in Jharkhand, Mumbai and other
places to reach out to local clients and the common masses.
Internal communications play a key role in enabling employees across
the Company in understanding and embracing the Company''s mission, goals
and strategies. Towards this objective, your Company has continuously
deployed communication tools such as monthly newsletters, CMD''s
communique, house journals, wall magazines, lounge and regular media
updates to apprise the employees of the developments, achievements &
events, viewpoints of the management and also provide a platform to
employees to participate and take pride in being associated with
POWERGRID. Open house sessions are also regularly organised where CMD
and Directors of your Company interact with all the employees, either
directly or through video conferencing.
EXHIBITION AND CONFERENCE ON NEW TECHNOLOGIES - GRIDTECH 2011
With the support of Ministry of Power, Govt. of India, GRIDTECH 2011,
an International exhibition and conference on new technologies in
transmission & distribution and synergic areas like load despatch,
telecommunications, application software etc. was organised. GRIDTECH
2011 provided a unique opportunity for the power utilities,
manufacturers, research institutions, policy makers, academicians,
consultants etc. to gain exposure to state-of-the-art products and
technologies like 1200kV UHVAC, 800kV HVDC, FACTS, GIS,
Superconductors, Smart Grid, substation automation, compact lines,
power system protection system, modern distribution management,
renewable energy sources, integrated communication system etc..
RENEWED COMMITMENT TO TRANSPARENCY & VIGILANCE FUNCTION
Several initiatives have been taken to strengthen internal systems to
enhance efficiency and effectiveness of the Vigilance function. The
Vigilance Department lays emphasis in the awareness process. In line
with this, training has been imparted on ethics and vigilance matters
through various preventive vigilance workshops. Apart from these,
vigilance executives were also sent on training to various
organizations like Central Bureau of Investigation (CBI) and the
National Institute of Criminology and Forensic Science, besides
participating in training programmes organized for capacity enrichment
of the vigilance executives. The Vigilance Executives at the regions
also undertook regular knowledge enhancement sessions while on tour or
inspections, which gave a feedback on the practical issues being faced
by personnel at the execution level. Besides these, Vigilance Audit of
some of the Departments has also been conducted, which is aimed at
examining the primary objectives of a Unit/ Department and impact
assessment in terms of achievement of these primary objectives. It
brings out the extent of risk, irregularities, mistakes & omissions
under various provisions of the rules, and also examines whether there
are any lacunae in the system/ rules and its application leading to the
said defects. On assessment of these, remedial measures have been
As part of pro-active vigilance, process online inspections have also
been conducted in which critical works are inspected at the initial
stage of execution by the vigilance executive for shortcomings and for
advising corrective measures at the initial time, if any. As a result
of Vigilance audit, large number of system improvements were
implemented which include standard Field Quality Plan, safety norms,
Project Insurance Policy, maintaining proper storage, construction
related records, Qualifying Requirements on procurement, HR Policies
etc.. A large number of inspections have been conducted both by
Vigilance executives as well as by the CTE''s Organisation. Based on
these inspections, adequate cost compensation was effected on the
points for not conforming to technical specifications etc.. To
facilitate report generation & compliance on inspection reports
generated through the Vigilance Inspection System (VINS), a system has
been devised for furnishing online replies on the internet. On the
punitive side, a number of complaints were received and taken up for
investigation. Necessary disciplinary action wherever appropriate was
also initiated against some employees.
While e-payments, document tracking, uploading of contractual
documents, web based complaint handling system has already been
implemented in the Organisation from 2007 onwards, lately,
e-procurement has been successfully implemented in the Organisation
with the signing of Contract Agreement with two leading Application
Service Providers (ASP), viz. M/s Telecommunications Consultants India
Limited (TCIL) & M/s m junction services Limited (mjunction). Further,
provision of e-Reverse auction has also been included in the
To spread awareness amongst employees and to prevent violation of the
Conduct, Discipline & Appeal (CDA) Rules, bulk SMS on the CDA Rules are
being sent to all the employees regularly. Vigilance Department also
uploaded CDA Rules Quiz, the Public Interest Disclosure and Protection
of Informers (PIDPI) Resolution of CVC, Case studies and closed
inspection reports on the intranet website. During the Vigilance
Awareness Week from 31st October to 4th November, 2011 the theme of the
year Participative Vigilance as decided by Central Vigilance
Commission was celebrated in befitting manner by administering the
pledge to all employees as well as through several competitions and
programmes which included painting and debate competitions for the
employees, their children and outside schools children. Lectures by
eminent personalities on topics related to corruption, ethics and
values were organized at different installations of the Corporation.
The in-house journal of the Vigilance Department – Candour was
released during the valedictory function of the Vigilance Awareness
Week by the Chief Guest, Shri Anil Kumar Sinha, IPS, Addl. Secretary,
Central Vigilance Commission. He also gave away prizes to the prize
winners on the occasion.
ACCOLADES & AWARDS
Your Company has been bestowed with numerous awards in various
categories by Govt. of India and other prestigious organisations &
Six projects of POWERGRID bagged the prestigious National Awards for
Meritorious Performance in Power Sector instituted by the Government of
India for the year 2009-10 & 2010-11. POWERGRID received three Gold
Shields and two Silver Shields for Transmission System Availability and
one Silver Shield for Early Completion of Transmission Project.
In recognition of its continued efforts to provide secure & reliable
transmission system, POWERGRID was conferred with ''Power Line Awards
2012'' in the category Best Performing Transmission Company.
''Environmental Excellence & Sustainable Development award-2011'' by the
Indian Chamber of Commerce and ''4th India Power Awards 2011'' under the
''Largest CPU in Transmission Sector'' and ''Overall Utility Performance-
Transmission'' Categories were conferred on your Company for its
In Telecom Business, as a testimony of the excellent work being done by
your Company, it has been bestowed with Excellence in Innovation in
Tower Management Award by INFOCOM CMAI National Telecom Awards 2011.
MANAGEMENT DISCUSSION AND ANALYSIS
In addition to the issues in the Directors reports, some issues have
been brought out in report on Management Discussion and Analysis placed
PARTICULARS OF EMPLOYEES
The particulars of employees of the Corporation who were in receipt of
remuneration in excess of the limit prescribed under Section 217 (2A)
of the Companies Act, 1956 is given in Annexure-II to this Report.
CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE
EARNINGS AND OUTGO
As per requirements of disclosures under Section 217(1) (e) of
Companies Act,1956 read with Rule 2 of the Companies (Disclosures of
Particulars in the Report of Board of Directors) Rules, 1988
information relating to conservation of energy, technology absorption
and foreign exchange earnings and outgo, information is given in
Annexure-III to this Report.
COMPTROLLER AND AUDITOR GENERAL''S COMMENTS
Company has received ''NIL'' comments on the accounts for the year ended
31st March, 2012 by the Comptroller and Auditor General of India under
Section 619(4) of the Companies Act, 1956. Copy is attached in
Annexure-IV to this report.
A report on the Corporate Governance (Annexure V), forming part of this
report, together with the Certificate thereon is given in Annexure-VI
to this report.
Your Company has got its Secretarial Compliance Audit conducted for the
financial year ended 31st March, 2012 from M/s Sanjay Grover &
Associates, Practising Company Secretaries. Their Report forms part of
this Report. (Annexure-VII)
STATUTORY AUDITORS OF THE COMPANY
The Statutory Auditors of your Company are appointed by the Comptroller
& Auditor General of India. M/s S. K. Mehta & Co., M/s Chatterjee &
Co., and M/s Sagar & Associates were appointed as Joint Statutory
Auditors for the financial year 2011-12.
COST AUDITORS OF THE COMPANY
POWERGRID had appointed the Cost Auditors Sh. Jugal Kishore Puri, M/s.
Chandra Wadhwa & Co, M/s. S. C. Mohanty & Associates and M/s. K. G.
Goyal and Associates under Section 233B of the Companies Act, 1956 for
the Financial Year 2011-12.
The due date for filing Cost Audit Reports for the financial year
2011-12 with the Cost Audit Branch, Ministry of Company Affairs is
September 30, 2012 and the same will be filed with the Cost Audit
Branch within the stipulated time.
During the year, Shri R. N. Nayak who was our Director (Operations)
took over the charge of Chairman & Managing Director with effect from
1st September, 2011.
Shri R. T. Agarwal assumed the charge of Director (Finance) with effect
from July 29, 2011. Smt. Rita Acharya, Jt. Secy, MoP joined the Board
of the company w.e.f. August 26, 2011 in place of Dr. M. Ravi Kanth Jt.
Secy. (Trans.), MoP, who ceased to be Director on Board of the company
w.e.f. August 16, 2011. Further, Shri Santosh Saraf and Smt. Rita Sinha
joined the Board as non-official part time directors w.e.f. December
Shri S. K. Chaturvedi demitted the office as Chairman & Managing
Director on 31st August, 2011 upon attaining superannuation. Shri V.
M. Kaul, Director (Personnel) superannuated on March 31, 2012 and
ceased to be Director on the Board of POWERGRID. The tenure of - two
non-official part-time Directors - Shri Ashok Khanna and Shri S.C.
Tripathi came to an end on April 24, 2011; four non-official Part-time
Directors - Dr. P. K. Shetty, Prof. A. S. Narag, Shri Anil K. Agarwal
and Shri F. A. Vandrevala came to an end on July 9, 2011 and that of
Mrs. Sarita Prasad, non-official part time Director came to an end on
August 3, 2011 and they ceased to be Director.
The Board wishes to place on record its deep appreciation and gratitude
for the invaluable contribution and unstinted support to the Company
extended by these directors.
Shri Ravi P. Singh assumed the Charge of Director (Personnel) with
effect from April 1, 2012. Shri R. P. Sasmal has been appointed as
Director (Operations) with effect from August 1, 2012.
In accordance with the provisions of Section 255 and 256 of the
Companies Act, 1956 read with Article 31 (iii) of the Articles of
Association of the Company, Shri I. S. Jha, Director (Projects), Shri
R. T. Agarwal, Director (Finance) and Smt. Rita Acharya, Director shall
retire by rotation at the Annual General Meeting of your Company and
being eligible, offer themselves for re-appointment.
The Board of Directors, with deep sense of appreciation, acknowledges
the guidance and co-operation received from Govt. of India,
particularly Ministry of Power, Ministry of Finance, Ministry of Home
Affairs, Ministry of External Affairs, Ministry of Statistics and
Programme Implementation, Ministry of Environment & Forests, Central
Electricity Regulatory Commission, Appellate Tribunal for Electricity,
Central Electricity Authority, Planning Commission, Department of
Public Enterprises, Regional Power Committees, and other concerned
Govt. departments/agencies at the Central and State level as well as
from Securities and Exchange Board of India, National Stock Exchange of
India Ltd., and Bombay Stock Exchange Ltd., Mumbai without whose active
support, the achievements by the Corporation during the year under
review would not have been possible.
Board''s special appreciation and thanks are due to our valued
customers, various State power utilities and other clients, who have
awarded various consultancy works and reposed faith in Company''s
capability to handle them. The Board also appreciates the contribution
of contractors, vendors and consultants for successful implementation
of various projects by the Company.
The Directors take this opportunity to thank the Principal Director of
Commercial Audit and Ex-Officio Member Audit Board-III for the
cooperation during the year. Directors also acknowledge the valuable
suggestions and guidance received from the statutory auditors during
the audit of accounts of the Company for the year under review. The
Board also conveys its sincere thanks to various national/international
financial institutions/ banks/ credit rating agencies for their timely
assistance, continued trust and confidence reposed by them on
We have achieved a great deal this year and none of it would have been
possible without the skills and dedication of each member of POWERGRID
family at all levels. I would like to thank the Executive team for its
strong leadership, the various employee unions to ensure that the
company continues to achieve greater heights year after year and all
our employees for their commitment and enthusiasm to achieve our aim to
be the world''s premier transmission network utility. ~
For and on behalf of the Board of Directors
Place: New Delhi (R. N. Nayak)
Date : 09.08.2012 Chairman & Managing Director