Power Grid Corporation of India Directors Report, Power Grid Corp Reports by Directors
Power Grid Corporation of India
BSE: 532898|NSE: POWERGRID|ISIN: INE752E01010|SECTOR: Power - Generation/Distribution
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Download Annual Report PDF Format 2013 | 2012 | 2011 | 2010
Directors Report Year End : Mar '13    « Mar 12
To, Dear Shareholders,
 Ladies & Gentlemen,
 The am delighted to present, on behalf of the Board of Directors, the
 24th Annual Report on the performance of your Company during the
 financial year ending March 31, 2013 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 earned the reputation as one of the largest and best
 managed transmission utilities in the world with its remarkable growth
 in the last two decades and carries about half of the country''s total
 generated power. Your Company continues to play a critical role in
 development ofthe Country''s power sector with its various
 techno-managerial initiatives in inter-State power transmission system
 along with transparent and effective grid operation in the Country.
 Your Company has been selected for ''MoU Excellence Award'' for FY
 2010-11 by Department of Public Enterprises (DPE), Ministry of Heavy
 Industries & Public Enterprises for being the top performer in the
 Energy Syndicate. Further, based on overall performance, the Company
 has been rated ''Excellent'' by DPE for the FY 2011-12. Based on the
 approved score, POWERGRID stand top among the assessed Companies in the
 Power Generation and Transmission syndicate for the FY 2011-12 and
 expected to receive the MoU Excellence Award again.
 Your Company has put on a remarkable performance in FY 2012-13 with
 achievements exceeding most of the targets under Memorandum of
 Understanding (MoU) signed with Ministry of Power (MoP), Government of
 India and poised to get ''Excellent'' rating for FY 2012-13; continuously
 since signing of its first MoU in FY 1993-94.
 Performance highlights of the Company during FY 2012-13 are briefly
 mentioned here to give an overview of accomplishments in all fronts:
 - Made an investment of Rs.20,037 Crore, an increase of about 13%
 over last year.
 - Added about 7,156 circuit kilometre (Ckm) of Extra High
 Voltage(EHV) transmission lines, 17 new sub-stations and transformation
 capacity of more than 40,230 Mega Volt Ampere (MVA).
 - Assets commercialisation of about Rs.17,213 Crore.
 - Investment approval accorded for 24 new transmission projects worth
 about Rs.12,579 Crore.
 - 1200kV Ultra High Voltage (UHV) AC National Test Station at Bina,
 Madhya Pradesh was test charged and then dedicated to the Nation by
 Hon''ble Union Minister of State (l/C)for Power.
 - Attained 99.90% Transmission system availability with number of
 trippings per line limited at 0.58.
 - Inter-regional power transfer capacity of National Grid has been
 enhanced by 2,000 MW in the year and cumulative capacity stood at about
 29,750 MW by end of March, 2013. Further, in the month of May 2013, the
 inter-regional power transfer capacity has been increased by 2,100 MW
 to 31,850 MW.
 FINANCIAL PERFORMANCE   (Figures in Rs. crore, except per share data)
 Description                       2012-13    2011-12    Y-o-Y Growth
 Transmission Charges               12,163      9,544         27.4%
 Consultancy                           315*       290          8.6%
 Telecom                               231        201         14.9%
 Other Operating Income                 49        129        (62.0%)
 Other Income                          571        621         (8.1%)
 Total Income                       13,329     10,785         23.6%
 Profit After Tax (PAT)              4,235      3,255         30.1%
 Earnings per Share (Rs.)             9.15       7.03         30.2%
 Book Value per Share (Rs.)          56.62      50.73         11.6%
 Gross Fixed Assets                 80,600     63,387         27.2%
 Long term borrowing **             66,188     51,752         27.9%
 Net Worth                          26,213     23,488         11.6%
 Debt Equity Ratio                   72:28      69:31
 Commercialisation of Assets        17,213     13,045        31.95%
 *including consultancy income from sale of products **including
 current maturities of long term borrowings
 Transmission assets owned and operated by your Company as on April 1,
 2013 has crossed the benchmarking values of 1,00,000 Ckm & 1,50,000 MVA
 and stands at about 1,00,200 Ckm of Extra High Voltage (EHV)
 transmission lines, 167 EHVAC & High Voltage Direct Current (HVDC)
 sub-stations and 1,64,763 MVA transformation capacity which spread over
 the length and breadth of the country. Using this vast transmission
 network your Company wheels about 50% of the total power generated in
 the country.
 During the year 2012-13, the average availability of these transmission
 systems was maintained at 99.90% by your Company with the number of
 trippings per line limited at 0.58. This high availability of
 transmission network is consistently maintained by your Company through
 deployment of technologically advanced operational techniques such as
 Hot Line Maintenance, Hotline Washing of Insulators 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, 43 sub-stations of your Company are being
 operated remotely and many new sub-stations are being designed for
 remote operation.
 The establishment of the National Transmission Asset Management Centre
 (NTAMC) for centralised remote monitoring, operation & control of
 sub-stations is nearing completion which will further improve the
 efficiency and transparency in the operation of the transmission system
 in the Country.
 Your Company has developed for implementing a Maintenance Service Hub
 concept in which specialist manpower is pooled into a hub for
 undertaking the maintenance of number of sub-stations within a close
 range. This innovative concept shall enable your Company to enrich your
 manpower with the multifarious knowledge of its huge network of
 transmission lines & substations with various types of equipments in
 terms of makes, technology and ratings.
 These technological interventions shall also facilitate rationalization
 of manpower in the field of O&M and this year your Company has achieved
 more than 1% manpower rationalization on this account.
 Your Company has taken a proactive step to restrain the trippings of
 transmission lines caused due to fog and pollution in various parts of
 the country by replacing the conventional insulators with polymer
 insulators. Replacement of insulators in the critical lines / stretches
 in Northern Region has been completed and replacement of insulators in
 other parts ofthe country is in progress. This has significantly
 reduced pollution related trippings in the country. Further, to
 facilitate optimum selection of insulators for new transmission lines,
 your Company is conducting pollution mapping in Northern Region and
 these pollution measurements are being carried out at more than 150
 locations ofthe Company and 108 locations ofState Transmission
 Utilities (STUs). These corrective measures will further minimize the
 probability of occurrence of flashover in lines passing through
 pollution affected areas besides optimization of transmission line
 cost. Pollution mapping of Southern and Eastern Regions are also being
 taken up by your Company. In addition, advance actions are being taken
 like cleaning of conventional insulators as a part ofwinter
 preparedness in less polluted stretches to avoid pollution related
 Your Company has placed state-of-the-art Emergency Restoration Systems
 (ERS) for transmission lines at strategic locations to enable
 restoration within shortest possible time of collapsed transmission
 line towers caused by the eventualities of natural calamities such as
 earthquake, cyclone, landslide, & sabotage, etc. Additionally, to
 alleviate the similar eventualities in case of substations, your
 Company is in the process of procuring a mobile 400/220 kV ERS for
 substation for quick deployment & restoration of 400kV substation in2to
 4 weeks time which otherwise takes several months.
 Your Company''s vast nationwide spread transmission network passes
 through various geographical areas including tough terrains such as
 snow bound area, deep forest. In these terrains to monitor the
 condition of transmission lines, a faster and efficient patrolling
 system was necessitated. Taking this into consideration, your Company
 has taken up aerial patrolling of transmission lines using helicopters
 for identifying visual and thermal defects in transmission lines caused
 due to environmental stresses and thereby to minimize the breakdown
 nature of maintenance work. To start with this, award for aerial
 patrolling through helicopters of about 15,000 route kms of
 transmission lines has already been placed. Further, your Company is
 also exploring more contemporary techniques such as Robotic Technology
 for condition monitoring of conductor, earthwire & hardware, etc.
 Best efforts are being put in by your Company for implementing its
 transmission projects within stipulated time frame to derive commercial
 benefits. Your Company has developed the Integrated Project Management
 and Control System (IPMCS) for effective planning, implementation,
 monitoring and management of the transmission projects. Further, to
 optimise the implementation time schedule of the projects, various
 actions have been undertaken including total project review and
 monitoring using IPMCS and Project Review Meetings at regular intervals
 through video conferencing. Pre-emptive measures and advance actions on
 various project linked activities such as land acquisition,
 state-of-the-art survey techniques and soil investigations, tender
 activities, funding tie-up, etc., were also undertaken in parallel with
 project investment approval process.
 These well developed system of implementation process has once again
 resulted in exceptional output and projects worth about Rs.17,213 Crore
 were commercialised during the year, adding about 7,156 Ckm, 17
 sub-stations and transformation capacity of more than 40,230 MVA in the
 transmission system. Your Company also timely commissioned notable
 major 765kV and 400kV transmission lines such as 765kV
 Sasan-Satna-Bina, 765kV Fatehpur-Agra, 765kV Moga-Bhiwani,
 765kVJhatikalan-Bhiwani, 400kV D/C Maithon-Koderma, 400kV D/C
 Mundra-Jetpur, 400kV D/C Chamera Pooling Station-Jallandhar, 400kV D/C
 Raipur-Wardha inspite of severe constraints faced including
 challengingterrains, severe Right-of-Way(RoW) problems.
 Implementation of High Capacity Power Transmission Corridors (HCPTCs)
 is progressing as per schedule with completion in a phased manner
 matching with generation projects. In fact, some of the elements under
 HCPTCs of Chhaffisgarh and Odisha have already been commissioned in FY
 2012-13 and balance elements of HCPTC''s are expected to be completed
 progressively by FY 2015-16.
 During the year, 24 new projects with an estimated cost of about Rs.
 12,579 Crore involving about 5,530 Ckt km of transmission lines, 4 new
 sub-stations and transformation capacity of about 12,730 MVAand supply
 & installation of 5,207 km of OPGW fibre optic cable were approved and
 taken up for implementation.
 The Financial performance of your Company in FY 2012-13 has been
 impeccable, achieving a turnover of Rs.13,329 Crore and Net Profit of
 Rs.4,235 Crore as compared to Rs.10,785 Crore and Rs. 3,255 Crore
 respectively during FY 2011-12, growth of about 24% in turnover and 30%
 in Net Profit. The gross asset base of the Company has been enhanced to
 Rs.80,600 Crore from Rs. 63,387 Crore in 2011-12, an increase ofabout
 Your Company continues to show improved performance in all its business
 areas including Telecom and Consultancy businesses, enhancing the value
 for the shareholders.
 Capital Investment and Fund Mobilization
 Your Company continues to explore new opportunities for raising long
 tenure debt from both domestic and international debt investors, for
 meeting its capex-programme in XII Plan, in addition to debt funding
 from multilateral funding agencies like The World Bank and ADB.
 In this direction, during the year, your Company signed loan agreements
 with International Finance Corporation (IFC) and Infrastructure Crisis
 Facility Debt Pool Limited Liability Partnership (ICF Debt Pool LLP) in
 July, 2012 for a total amount of US0 million for funding various
 transmission projects. Further, your Company made its maiden foray into
 foreign currency markets in January, 2013 and raised US0 million
 through issuance of 10 year Foreign Currency Bonds (FCB) at an
 attractive coupon rate of 3.875% p.a. This maiden issue from your
 Company received an overwhelming response from the investing community
 and was over-subscribed nearly 19 times. The Bonds are currently listed
 in Singapore stock exchange.
 In line with its targeted XII Plan capex-programme, your Company during
 the financial year 2012-13, made a capital investment of Rs. 20,037
 Crore which was about 13% higher than last year. AboutRs. 15,700 Crore
 of the capital investment was mobilised through private placement of
 bonds in domestic market with attractive coupon rates, Supplier''s
 credit, proceeds of ongoing SBI Line of Credit, foreign currency bonds
 and loans from IFC, ICF Debt Pool LLP, multilateral funding agencies
 like The World Bank, Asian Development Bank etc. In addition, the
 accrued internal resources and FPO proceeds amounting to about Rs.4300
 Crore were utilized for funding equity component of the Company.
 During the FY 2012-13, your Company was rated by International credit
 rating agencies, Standard & Poor''s Rating Services (S&P) and Fitch
 Ratings, for the first time. Both the agencies have rated your Company
 at BBB - (outlook negative), consistent with Gol Sovereign Rating.
 Consequent upon revision of Sovereign rating to ''Stable'' from
 ''Negative'' recently by ''Fitch Ratings'', the rating of your Company now
 stands as BBB- (outlook Stable). The Company continues to have its
 rating as AAA/stable (triple AAA with stable outlook) by CRISIL, ICRA
 and CARE ratings domestically.
 Dividend Payout
 For FY 2012-13, your Company has proposed a final dividend ofRs. 1.14
 per share in addition toRs. 1.61 per share of interim dividend paid in
 February, 2013.  The final dividend shall be paid after your approval
 at the Annual General Meeting. Thus total dividend payout for the year
 amounts to Rs. 1,273.18 Crore (including an interim dividend of Rs.
 745.39 Crore) as against Rs. 976.89 Crore paid during the previous
 year. The total dividend payout including dividend tax accounts for
 34.99% of Profit after Tax of the Company.
 Your Company values its shareholders and hence determined to pursue its
 dedication to build and maintain relationships with them by creating
 wealth for its stakeholders through deploying cutting edge technology,
 adopting global best practices, optimum utilization of resources and
 sustainable development.
 As required u/s 217 (AA) ofthe Companies Act, 1956, your Directors
 confirm that:
 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 ofthe state of affairs
 ofthe Company at the end ofthe financial year and of the profit of the
 Company for that period;
 iii. The Directors have taken proper and sufficient care in accordance
 with the provisions ofthe Act for safeguarding the assets ofthe Company
 and for preventing and detecting fraud and other irregularities;
 iv.  The Directors have prepared the annual accounts on a going concern
 With effective from July 1, 2011, Point of Connection (PoC) Charges
 tariff sharing mechanism has been implemented in the transmission
 sector for Sharing of Transmission Charges and Losses through Central
 Electricity Regulatory Commission Regulations, 2010. As the Central
 Transmission Utility (CTU) ofthe Country, your Company has also been
 assigned the responsibility of carrying out activities like raising of
 transmission charge bills on behalf of all the Inter-State Transmission
 System (ISTS) Licensees (presently 13 nos.), collecting the amount and
 disbursing the same to them. In this regard bills of transmission
 charges are prepared, raised and uploaded on the website portal for
 about 71 Designated ISTS Customers (DICs) including payment details by
 the customers.
 It is a matter of pride that in FY 2012-13, Your Company had achieved a
 100% realisation of transmission tariff with highest ever monthly
 realization of transmission tariff achieved in the month of March,
 Recognizing the need for development of National Grid, thrust was given
 to enhance the capacity of National Grid in a phased manner. In this
 direction, your Company had established/ planned various inter-regional
 links as a part of different generation projects/grid strengthening
 schemes. The Inter-regional power transfer capacity ofthe National grid
 has been planned to increase to about 65,550 MW at the end of XII Plan,
 by adding about 38,000 MW during XII Plan matching with generation
 capacity addition programme and power transfer requirement across the
 regions. In line with this, your Company has added 2,000 MW of
 inter-regional power transfer capacity in FY 2012-13 through
 upgradation of both 765 kV Gwalior-Agra single circuit transmission
 lines to 765 kV voltage level from 400 kV voltage level. The cumulative
 inter-regional powertransfer capacity at the end of first year ofthe
 XII plan stood at about 29,750 MW.
 All India synchronous grid is envisaged for facilitating bulk transfer
 of power across regional boundaries and to achieve optimal utilization
 of the resources in the Country. Towards this, presently regional grids
 of Northern, Eastern, Western and North-Eastern Regions (NEW grid) are
 already connected through synchronous interconnections and Southern
 Region (SR) is connected to this NEW grid through over4,000 MW capacity
 HVDC links. Synchronous interconnection of SR with NEW grid is
 envisaged through high capacity 765 kV S/c Raichur - Sholapur lines (2
 Nos.). One of the above lines is under implementation by private sector
 and the other line is being implemented by POWERGRID.  Both the lines
 are envisaged to be completed by 2014.
 Your Company has been instrumental in providing an efficient, reliable,
 smooth and transparent grid operation and management in the Country.
 The grid management function in the Country is continued to be looked
 after by Power System Operation Corporation Limited (POSOCO), a fully
 owned subsidiary of your Company, with its state-of-the-art Unified
 Load Despatch & Communication facilities. These facilities are being
 updated continuously to further improve quality and economy in
 operation of power systems besides improving data availability,
 visibility and transparency.
 Your Company''s strong transmission network and modernised RLDCs have
 facilitated about 66 billion units (BUs) of inter-regional energy
 transfer across the Country during FY 2012-13, as compared to previous
 year''s energy transfer of about 59 BUs, meeting more demand in energy
 deficit regions.
 During the year, 32,139 transactions involving about 73 BUs of energy
 were approved under Short Term Open Access (STOA) compared to 24,111
 transactions and about 67 BUs of energy during FY 2011-12.
 Your Company, as CTU, is the nodal agency for processing & grant of
 Connectivity, Long Term Open Access/ Long Term Access (LTOA/LTA) and
 Medium Term Open Access (MTOA) of various applicants. Towards this, as
 on March 31st, 2013, the Company had granted LTOA/LTA to 151 nos. of
 applicants with 83,060 MW LTA capacity out of 214 applications with
 LTOA/LTA sought for about 1,29,408 MW. Some of the LTOA/ LTA
 applications were withdrawn/closed due to non-satisfactory progress
 ofthe IPP generation projects. Further, POWERGRID received 180
 Connectivity applications for about 1,74,450 MW, out of which
 connectivity has been granted to 80 nos. of applications for 69,074 MW.
 The MTOA was granted to 44 nos. of applications for 4,267MW. 27 nos. of
 MTOA applications were withdrawn/closed as the complete Available
 Transfer Capability (ATC) was already allocated and some applications
 are under process.
 Unfortunately, there were two major grid disturbances on 30th and 31st
 July, 2012, which resulted in failure of Northern Regional Grid in
 first day and that of Northern, Eastern and North-Eastern regional
 grids by the disturbance occurred on the following day. Restoration
 ofthe affected areas was taken up immediately on both the days and
 majority system was normalized in about six to eight hours on
 respective days itself. An Enquiry Committee headed by Chairperson, CEA
 was constituted by Gol for investigation of causes for these two grid
 disturbances in July, 2012. Government of India is monitoring the
 implementation ofthe Enquiry Committee''s recommendations. Various
 measures are being taken by POWERGRID, POSOCO and Government of India
 for secure grid operation such as third party protection audit,
 advising State utilities to maintain grid discipline & draw power from
 grid within the schedule, formulation of Islanding schemes in different
 States, review of Unscheduled Interchange (Ul) mechanism, preparation
 of comprehensive defence plan covering under-frequency, rate of change
 of frequency under voltage, system protection schemes to cover large
 generation and transmission line outages, advise to utilities to
 prepare outage plans for generating units and transmission lines in
 consultation with Regional Power Committees and review of transmission
 planning criteria, etc. Further, petitions have also been filed in
 Central Electricity Regulatory Commission (CERC) by various Regional
 Load Despatch Centres including the National Load Despatch Centre on
 various issues inter-alia, modification in congestion charge procedure,
 modification in Ul charges and related matters, further tightening the
 frequency band, primary response from generators etc. In addition,
 Government of India is contemplating necessary amendments in
 Electricity Act, 2003 for mitigating the issues in Grid Operation.
 Your Company with an aspiration to achieve absolute customer
 satisfaction is continuously endeavouring to provide cost effective &
 quality services to its valued customers. To achieve this, the Company
 is taking necessary steps to implement requisite quality measures in
 each and every step of its chain of operation right from
 conceptualization of project to commissioning and subsequently during
 operational phase. Your Company is following Standard Manufacturing
 Quality Plan at both national & international level while inspection at
 various manufacturing stages and also adheres to standard Operation and
 Maintenance (O&M) manuals for operation & maintenance of its
 transmission system. Further, to improve quality, various techniques
 are being adopted to identify the areas of improvement and develop
 action plan for continuous quality improvement in all of its
 During the year 2012-13, the certification on Integrated Management
 System was reviewed and revised certification was acclaimed based on
 the evaluation of implementation of latest systems and procedures. Your
 Company is presently 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). Your Company has re-confirmed its
 certification of the entire Corporation for Social Accountability
 Standard (SA 8000:2008) after auditing of its establishments for social
 accountability systems.
 Capacity building, being one ofthe major challenge specially in
 multi-tasking environment under wide area operation, vendor development
 have been taken-up on priority to meet project requirements both, in
 execution and supply of 765/400kV equipment.
 With zero product inspection as the ultimate goal, your Company has
 taken up process audits at a number of manufacturing units spread all
 over the country & also at overseas, at their works. Appropriate
 corrective actions are also being taken up based on Quality Audit
 feedback. Further, for asserting quality during transportation,
 storage, erection and commissioning activities during implementation of
 projects, Quality Audit on implementation of Field Quality Plans was
 also carried out.
 Your Company gives priority to research and development activities with
 potential for social, environmental & national benefits by
 incorporating advance technology solutions to gear up for future
 The major areas of concern in development of transmission network in
 the Country are conserving the precious Right of Way (RoW), minimizing
 impact on natural resources, coordinated development of cost effective
 transmission corridor and flexibility in upgradation of transfer
 capacity of lines. In order to address these issues, your Company is
 deploying technologies such as Multi Circuits, Compact & Tall Towers,
 High Surge Impedance Loading Lines, Fixed & Thyristor controlled Series
 Compensation, High Temperature Low Sag (HTLS) Conductors, etc.
 Experienced with construction of 765kV Extra-High-Voltage AC (EHVAC) &
 ±500kV HVDC transmission system, Your Company is now implementing next
 higher transmission voltages of ±800kV HVDC &working on 1200 kV
 Ultra-High-Voltage AC (UHVAC) system to achieve efficient utilization
 of RoW and increased power transfer capability for transfer of bulk
 power over long distances.
  800kV Multi-Terminal HVDC System
 Implementation of ±800kV, 6,000 MW multi-terminal HVDC system of
 around 2,000 km from North Eastern Region (NER) (Biswanath Chariali in
 Assam and Alipurduar of West Bengal) to Northern Region (NR) (Agra in
 Uttar Pradesh) is progressing well and commissioning shall be in
 2015-16. Upon completion, it shall be one of the largest multi-terminal
 HVDC systems in the world at this voltage level. HVDC system at 800kV
 level is particularly used for bulk power transmission over long
 distance with reduced RoW and losses.
 1200kV UHVAC Transmission System
 The 1200kV UHVAC technology, the highest voltage level in the world, is
 being developed indigenously by your Company in collaboration with 35
 Indian manufacturers. This is one ofthe unique R&D projects in
 Public-Private Partnership model. In this, a 1200kV National Test
 Station is being established by the Company to facilitate indigenous
 development of UHVAC technology. The 1200kV Single Circuit (S/c) and
 Double Circuit (D/c) test lines were successfully test charged along
 with one 1200kV Bay at 1200kV UHVAC National Test Station at Bina,
 Madhya Pradesh and field tests are currently undergoing. Hon''ble Union
 Minister of State (l/C) for Power has dedicated the 1200kV Ultra High
 Voltage (UHV) AC National Test Station at Bina, Madhya Pradesh to the
 Nation in December, 2012.
 Other technological initiatives such as Pollution & Lightning mapping,
 Emergency Restoration Systems for 400kV substation (Mobile substation),
 Process bus architecture for Substation Automation System, Transmission
 Line Arrestors, Mobile Test Van, 33kV Mobile Capacitor Bank & High
 Temperature Superconductor Technology for bulk power transmission,
 fault current limitation (Superconducting Fault Current Limiter) and
 energy storage (Superconducting Magnetic Energy Storage) applications
 are being taken up/ explored by your Company for their viability in
 Indian PowerSystem to ensure more efficient, safe, secure & reliable
 operation of Grid.
 Your Company continues to take pioneering steps in bringing Smart Grid
 technology in all facets of power supply value chain in the country.
 First Smart Grid Control Center in the Country has been established at
 Puducherry by your Company through open collaboration with more than 70
 organizations & academic institutions. Under this, important Smart Grid
 attribute i.e. Advanced Metering Infrastructure (AMI) has been
 implemented and other functionalities like Outage Management System,
 Demand Response, Microgrid, etc. are being taken up in a progressive
 manner. This Smart Grid pilot project would be very helpful to
 demonstrate technology efficacy, evolution of commercial mechanism and
 suitable regulation, formulation of interoperability framework,
 indigenization of technology and renewable integration, etc.  which can
 be scalable and replicable at other places in the Country for overall
 benefits to both consumers and utilities.
 In addition, efficient street light management system has been
 implemented at Puducherry which has resulted in reduction of energy
 consumption for street lighting by about 15%. Further, development of
 Smart Home Energy Management System is being carried out in association
 with IIT, Kharagpur to facilitate consumers in energy management
 process through remote operation. Towards green energy initiatives,
 installation of 50kWp roof-top solar PV plant at NTAMC building,
 Manesar is under progress.
 In addition to preparing Project Report for Smart Grid implementation
 by various distribution utilities/cities, your Company has prepared the
 feasibility report for upcoming green field project at Dholera SIR,
 coming under Delhi- Mumbai Industrial Corridor (DMIC).
 Your Company has taken leadership initiative for implementation of
 Smart Grid Technology in transmission also. Towards this, the Company
 has executed Wide Area Measurement System (WAMS) pilot project in four
 (4) regions and is under progress in the Eastern Region. Under this
 initiative, presently about 40 nos. Phasor Measurement Units (PMUs) are
 in operation, facilitating dynamic real time measurements and better
 visualization of power system which are useful in monitoring safety &
 security of the grid along with enhanced situational awareness and
 taking control/corrective actions.
 For full scale implementation of WAMS technology on pan India basis,
 your Company has proposed Unified Real Time Dynamic State Measurement
 System (URTDSM) scheme integrating State and Central grids, i.e. PMU
 placement at all HVDC, 400kV and above substations / generating
 stations including 220 kV level and PDC (Phasor Data Concentrator) at
 strategic locations. The Scheme shall enhance the efficiency in overall
 grid management in electricity open market regime. Total estimated cost
 of the URTDSM project is aboutRs. 655 Crore.  
 Integration of Renewable Energy Resources with grid is the top priority
 worldwide for energy security and also for carbon emission reduction.
 Government of India is taking various initiatives in the area of
 renewable energy capacity addition and about 42 GW of generation is
 envisaged in XII plan. Your Company has taken a lead initiative and
 developed a comprehensive master plan, Green Energy Corridors, which
 has been released by Ministry of Power and Ministry of New & Renewable
 Energy (MNRE) for integration of renewables coming up country- wide in
 XII plan.
 This covers identification of transmission requirement at inter-State
 and intra-State level for grid integration of envisaged renewable
 capacity addition. Further, to address the intermittency and
 variability characteristics of renewable generation, other control
 infrastructure like forecasting of renewable generation and demand,
 Real time measurement/monitoring through Synchrophasor technology,
 flexible generation, ancillary reserves, Demand-side & demand response
 management and energy storage, establishment of Renewable Energy
 Management Centers (REMC) etc. is also identified.
 A Joint Declaration of intent is also signed between Govt, of India &
 Govt, of Germany for cooperation in the field of integration of
 renewable energy sources in the form of providing financial assistance
 through soft loan of about 1 billion euro by Germany to develop
 prioritized Inter- State & Intra-State transmission systems i.e. Green
 Energy Corridors as well as sharing oftechnical expertise in the above
 Your Company is leveraging its countrywide transmission infrastructure
 diversified into Telecom business under the brand name ''POWERTEL'' to
 expand its revenue base. Your Company has an all India Broad Band
 Telecom Network of about 29,300 km with connectivity provided to all
 metros, major cities, towns, State capitals including remote areas of
 North-Eastern Region, Jammu & Kashmir etc. covering about 290 Points of
 Presence (PoPs) across the country from where services are being
 rendered. Your Company is the only utility in the Country providing
 Telecom Services on overhead optic fibre network using Optical Ground
 Wire (OPGW) on power transmission lines and possess Infrastructure
 Provider Category-1 (IP-1), Internet Service Provider ''A'' (ISP ''A'') and
 National Long Distance Service License (NLD) to provide a variety of
 Telecom services.
 Availability of Telecom Backbone system was maintained at 99.92% during
 FY 2012-13. The income from Telecom in FY 2012-13 has increased to
 about Rs.231 Crore from Rs.201Crore in FY 2011-12. The revenue from our
 telecommunication business is mainly on account of leasing of bandwidth
 on our fibre-optic links to various customer segments viz, Telecom
 Service Providers, Government Departments, Multi National Companies
 (MNCs), media etc.
 National Knowledge Network (NKN)
 Your Company is one of the implementing agencies of the prestigious
 National Knowledge Network (NKN) project devised by Govt, of India
 which plans to connect all knowledge centres across the Country such as
 Indian Institutes of Technology (IITs), Indian Institute of Science
 (lISc) etc., on high speed connectivity. Total expected revenue to the
 Company under this project over a period of 10 years is aboutRs. 900
 Crore. Total advance amount received from National Informatics Centre
 (NIC) against NKN order is Rs. 640.85 Crore till March 31, 2013.
 National Optical Fiber Network (NOFN)
 Your Company is a member of Advisory Body and Core Committee of the
 ambitious National Optical Fiber Network Project through which
 Government of India plans to connect 2,50,000 Gram Panchayats (GPs) on
 Optical Fiber network utilizing existing facilities of Bharat Sanchar
 Nigam Limited (BSNL), POWERGRID and RailTel Corporation of India
 Limited at an estimated cost of Rs. 20,000 Crore with completion period
 of 24 months. As a part of this, your Company has completed a pilot
 project at Parawada Block, Viskhapatnam District (Andhra Pradesh) in
 October 15, 2012 utilizing existing fibers of BSNL & POWERGRID and
 laying incremental fiber wherever required.
 Under this, your Company has received an allotment letter from Bharat
 Broadband Network Ltd (BBNL) for development & maintenance of NOFN
 network in four States viz. Andhra Pradesh, Himachal Pradesh, Jharkhand
 & Odisha covering about 36,000 GPs. The work is to be carried out in
 about 89 districts covering 1,769 blocks across these fourStates. The
 estimate cost of the project for these four States would be about Rs.
 2,700 Crore. As a part of this, your Company has signed a MoU with BBNL
 for developing NOFN network in 4 States on Build, Operate and Maintain
 basis, on December 04, 2012. Presently, survey activities are under
 Your Company continues to showcase its leadership in its core areas
 such as Power Transmission, Sub-transmission, Distribution and Telecom
 utilising the techno-commercial proficiency to offer consultancy
 services worldwide.
 On the domestic front, during FY 2012-13, the Company has bagged 26 new
 assignments aggregating to a project cost ofRs.715 Crore, with
 continued & unbounded trust in your Company by Public & Private
 utilities alike. To enhance customers'' base, business promotion
 activities have been undertaken by your Company with various Central
 Public Sector Undertakings like SAIL, RINL, DMIC, DFCC, Railways, etc.
 & succeeded in bagging contract with SAIL for providing technical
 services to four plants of SAIL. In addition, being the front runner in
 Smart Grid implementation in the Country, our initiatives to provide
 technical services for Smart Grid / Smart City applications are
 expected to bear fruit and bring number of consultancy assignments in
 near future.
 Further, your Company has undertaken an international Joint Venture
 (JV) with Nepal. As a result of this, Cross border Power Transmission
 Company Ltd., (CPTC) became operational this year, which has 10% equity
 participation from Nepal Electricity Authority. This Company shall
 implement Indian portion of Indo-Nepal link (Muzaffapur, India to
 Dhalkebar, Nepal). For Nepalese portion of this international link,
 your Company shall be participating 26% equity in another international
 JV Company i.e., Power Transmission Company Nepal Ltd., (PTCN).
 In international arena, during the year, your Company had bagged 9
 (nine) new assignments having project cost of Rs. 332 Crore. At the end
 of the FY 2012-13,17 assignments were under execution with footprint in
 11 countries viz. Nepal, Bhutan, Bangladesh, Afghanistan, Sri Lanka,
 Myanmar, UAE, Nigeria, Ethiopia, Kenya &Tajikistan.
 During the year, your Company has earned revenue ofRs. 315 Crore from
 consultancy business including consultancy income from sale of
 products, surpassing previous year''s revenue ofRs. 290 Crore.
 Your Company continues to play an active role in preparing a roadmap
 for developing South Asian Association for Regional Cooperation (SAARC)
 market for electricity to develop a cross country power-grid,
 harnessing each other''s capacities and resources to address the growing
 energy need in the region. Presently, various interconnections exist
 between India & Nepal and India & Bhutan and these are being
 strengthened for mutual exchange of power. For evacuation of power from
 various upcoming Hydro Electric Power (HEPs) in Bhutan, Punatsangchu-I
 HEP (in Bhutan) - Alipurduar (in India) 400 kV Double Circuit (D/c)
 line between Bhutan & India is under implementation and expected to be
 completed by 2015. Further, an asynchronous interconnection between
 India & Bangladesh through 500 MW High Voltage Direct Current (HVDC)
 back-to-back terminal along with Bheramara (Bangladesh) - Baharampur
 (India) 400kV D/c line is under implementation and expected to be
 completed by 2013. For transfer of bulk power, interconnection between
 India and Nepal through 400 kV Dhalkebar (in Nepal) - Muzaffarpur (in
 India) D/C transmission line is under implementation. For
 interconnection between India and Sri Lanka, feasibility study for a
 ±400kV, 500/1000MW under-sea HVDC bipole line is under finalization.
 Further, discussions at Government level are being held for
 interconnection between India and Pakistan through Amritsar (India) -
 Lahore (Pakistan) line.
 Your Company continues to pursue its exploration towards backward
 integration and is forming Joint Venture Companies with the prime
 producers of raw material for manufacturing of major transmission
 equipment. In this direction, your Company has signed MoU with SAIL for
 manufacturing of transmission line towers and its parts including
 Research & Development facilities in addition to the MoUs signed
 earlier with National Aluminium Company Limited (for Conductors) and
 Rashtriya Ispat Nigam Limited (for transmission line towers). These
 facilities are envisaged to cater to domestic/ international market.
 Further, with a view to spur the development of sub-transmission system
 in the Country by providing support to States, your Company has formed
 Joint Venture Companies (JVCs) namely Bihar Grid Company Limited with
 Bihar State Power (Holding) Company Limited and Kalinga Bidyut Prasaran
 Nigam Private Limited with Odisha Power Transmission Corporation
 Limited, on 50:50 equity participation basis for development of
 Intra-State Transmission System in the State of Bihar & Odisha,
 respectively. Various regulatory / statutory approvals in respect of
 the above are under process. Further, discussions are under process for
 forming a similar Joint Venture Company with other State(s).
 Govt, of India''s Rajiv Gandhi Grameen Vidyutikaran Yojana(RGGVY)
 scheme for Rural Electricity Infrastructure and Household
 Electrification was launched for the attainment of the National Common
 Minimum Programme of providing access to electricity to all Rural
 Household.  Your Company has taken a lead role in implementation of
 RGGVY works and has been assigned one-third of the total works for
 execution of rural electrification covered in 68 districts of nine
 States in the Country of a base cost of about Rs. 7,230 Crore. Most of
 the schemes have already been completed. During FY 2012-13,
 infrastructure was created for electrification in 3,852 villages out of
 which 146 were un-electrified villages and 8,053 villages were
 energised out of which 1,115 villages were in un-electrified category.
 Service connections were provided to about 1.82 Lakh BPL households.
 Cumulatively, till March, 2013, infrastructure has been created for
 electrification of 68,654 villages out of which 32,463 were
 un-electrified villages and service connection to about 35.37Lakh BPL
 households were provided.
 In XII Plan, your Company had planned to make an investment of Rs.
 1,00,000 Crore matching with the envisaged generation capacity
 addition.  This investment is mainly for implementation of various
 inter-state transmission systems including High Capacity Power
 Transmission Corridors (HCPTCs), inter-regional links for grid
 strengthening, system strengthening schemes, etc. Out of the planned
 Rs.1,00,000 Crore, your Company has already made a Capital expenditure
 of Rs.20,037 Crore in the first year of the Plan i.e. FY 2012-13.
 During the XII plan, transmission network addition of about 40,000 ckm
 of transmission lines and about 1,00,000 MVA of transformation capacity
 has been envisaged in which your Company has already commissioned 7,156
 Ckm of EHV transmission lines and transformation capacity of more than
 40,230 MVA in FY 2012-13.
 To meet the CAPEX of Rs.1,00,000 crore, your Company has to raise a
 Debt of about Rs.70,000 Crore of which about Rs.38,800 crore, i.e. 54%,
 has already been tied up through funding from various mechanisms.
 Further, your Company has excellent credit rating by both domestic and
 international credit agencies and thereby do not foresee any difficulty
 for resource mobilisation. The Loan requirements are planned to meet
 through Loans from multilateral institutions like The World Bank, Asian
 Development Bank, Supplier Credit, External Commercial Borrowings
 through bonds / notes besides loans from domestic market through
 private placement of bonds.
 Your Company is establishing the Enterprise Resource Planning (ERP)
 system in its organization to manage the massive information flows in
 the system. The main package of ERP Project has been awarded to M/s
 Tata Consultancy Services (TCS) which includes development of Data
 Centre, Disaster Recovery Centre and augmentation of communication
 network. The pilot project ofthe same is expected to be operational
 during FY 2013-14. The pilot project will cover the Company''s Corporate
 Centre in Gurgaon and one of its regional headquarters.
 During the year, your Company had provided Laptops and data-cards to
 the employees for efficient accomplishment of their functions with
 swifter & easier storage, usage, transfer and retrieval of data.
 Further, utilising the skills & in-house expertise, the Company has
 systematically developed various software applications to smoothening
 its functional areas. The Company has also renewed its website in a
 contemporary fashion to make it more user friendly. Being located in
 pan India basis, advanced communication system has became essential and
 to actualize that the Company had installed High Definition
 Multi-conference Unit (MCU) at Corporate Office, Gurgaon including
 Video Wall System. Your Company has taken the necessary steps for
 is0:27001 certification and for implementation of the necessitated
 Information Security Management System (ISMS) across the organization
 tendering is in process.
 Major concern that globe is facing now is the environmental degradation
 and increasing threat of climate change. The transmission projects
 being implemented by your Company are environmentally clean and involve
 neither disposal of solid waste, effluents or hazardous substances in
 land, air or water nor large scale excavation which may result in soil
 However, your Company has proactively formulated and followed the
 Environmental and Social Policy & Procedures (ESPP) for the
 conservation of forests, flora & fauna, resettlement & rehabilitation.
 Following the principle of Avoidance, Minimization and Mitigation, your
 Company ensured to evade Great Indian Bustard Sanctuary in Madhya
 Pradesh and Achanakmar-Amarkantak Biosphere Reserve in Chhaffisgarh
 during construction of765 kV Indore-Dahod and 765 kV
 Dharamjaigarh-Jabalpur lines respectively.
 Your Company was the first Company in power sector to come out with the
 ''Sustainability Report'' in March, 2010 and second such report has been
 published in March, 2013, providing all stakeholders a clear picture of
 our contribution to sustainable development through its activities. The
 report is based on GRI-G3 guidelines. International Standards like
 Accountability, UK Standard AA1000:2008 APS and AA1000:2011 SES have
 been followed to make the process more inclusive.
 The Company has taken various initiatives towards sustainable
 development and in the direction of reducing its carbon footprint.
 Towards this, the Company has adopted Rain Water Harvesting facility in
 its establishments. Every substation being constructed now is provided
 with rain water harvesting systems. In addition, energy efficient Light
 Emiffing Diode (LED) bulbs and Solar lights are being provided in new
 substations to reduce in-house consumption of energy. A waste paper
 recycling plant has been installed at Gurgaon substation and with the
 produced recycled papers letter heads and business cards are being
 printed. New buildings are being constructed as per Green Building
 norms. Your Company with an initiation to reduce the energy consumption
 has undertaken Energy audit at 12 of its sub-stations during FY 2012-13
 and based on its reports necessary actions undertaken for improvement.
 Your Company is focusing on more number of high capacity transmission
 systems which will help in utilizing the right-of-way in an optimal
 manner and minimizing the loss of forest, flora & fauna and natural
 resource like land, etc.
 Your Company, emphasizing on socio-economic and integral development of
 areas/ communities primarily in and around its areas of operations,
 carries 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
 During the FY 2012-13, the Company made an expenditure of Rs. 21.75
 Crore [0.67% of Profit After Tax (PAT) of the preceding year] for
 carrying out about 440 CSR projects including 19 in education sector,
 152 in the area of infrastructure, 140 in healthcare and 131 for
 livelihood. During this period, about 1.09 lakh tree saplings were also
 planted by your Company in different parts of the Country.
 Towards various skill development programmes, the Company has given
 more emphasis on training youths in the area of Transmission Line
 Tower erection which is being conducted in association with leading
 EPC Contractors. During the year, 258 candidates were trained under
 this program and most of them were gainfully employed in the
 transmission industry. Other skill development / livelihood training
 programs imparted to unemployed youth are in the field of tailoring,
 cuffing/ stitching, embroidery, automobile repairing, handloom weaving,
 food & fruit processing, repairing of household appliances, etc. to
 secure employment or be self-employed.
 An extensive programme on Maternal & Child Healthcare was organised in
 15 villages of Gurgaon, Mewat & Jhajjar districts of Haryana.  A total
 of 72 health camps in different villages of these 3 districts were
 conducted under this program during FY 2012-13.
 Further, your Company is in the process of establishing 4 nos.
 Industrial Training Institutes (ITIs) with 2 nos. each in the States of
 J&K and Odisha. Consequently upon establishment of these ITIs, the same
 shall be handed over to the concerned State Government for operation
 and maintenance.
 Attracting Talent, Nurturing & Development of Human Capital Our
 employees are the most important asset and their incessant growth is
 the most treasured investment. Your Company encourages and initiates
 various programmes for bolstering and enriching the continuous
 development of the knowledge horizon ofthe employees.
 In order to align the human resource development strategy with the
 business objectives, the Company conducted Organization Need Assessment
 (ONA) capturing the organizational requirement for competency
 enhancement of employees and then conducted online Training Need
 Assessment (TNA) for individual employees.  Through the online TNA
 process, your Company has been able to link the development plans of
 employees with Performance Management System which helps the
 organization to keep updating the competencies of employees to meet
 current and future requirement.
 Apart from focussed functional and behavioural development of its
 employees, the Company conducted series of certified Learning &
 Development Programs on Regulatory Framework in Power Sector and
 certified workshop on Earned Value Management System for top and senior
 level executives as part of their strategic development. During the
 year, an average 5.95 training mandays per employee has been achieved
 to equip employees for leadership development, technological
 enhancement and future challenges.
 During FY 2012-13, POWERGRID has inducted 117 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
 regional level.
 New initiative of Mentorship Development has been taken under which
 young executives are guided by the mentors who nurture, guide and
 direct them to integrate with the system and values of the organization
 and counsel them on regular basis. Seffing the tone for new business
 areas in Energy Auditing, the Company has trained group of executives
 for undergoing through the process of National Certification
 Examination for Energy Auditors and subsequent accreditation by Bureau
 of Energy Efficiency (BEE).
 To create a vibrant workforce rising to opportunities and challenges in
 Company''s future business context, POWERGRID Climate Survey 2012- 2013
 was conducted amongst executive and supervisor level employees with a
 view to capture the key factors of employee satisfaction, employee
 engagement and the existing organisational cultural capabilities and
 the future cultural capabilities.
 Your Company has started running its own Hot Line Training Centre at
 Hyderabad duly accredited by Central Electricity Authority (CEA). This
 centre is the only accredited Hotline Training Centre in India and has
 been set up to provide in-depth approach and training for technical and
 practical know-how of live line maintenance.
 During the FY 2012-13, your Company has signed Memorandum of
 Understanding (MoUs) with IIM, Lucknow, IIM, Bangalore, CPRI,
 Bangalore, IIT, Chennai and IIFT, New Delhi which will enable the
 organization to leverage each other''s capability and resources in areas
 of pedagogy, training, research and innovation in systems, process,
 Employee Welfare
 Your Company undertakes requisite changes in various policies from time
 to time in line with the needs and welfare of employees. The Company
 had empanelled various hospitals nearby to its establishments including
 Corporate Centre for the healthcare of employees and their dependents.
 Your Company successfully continues to address the issues related to
 workmen through the National and Regional Bipartite Committee
 (PNBC/PRBC), a joint consultative forum comprising management and
 workmen representatives. During the year, the Industrial Relations
 scenario in the Corporation has been cordial and no man days were lost.
 An effective work culture has been established in the organization
 through empowerment, transparency, decentralization, and practice of
 participative management.
 Quality food is served to the employees in the ISO 22000:2005 conferred
 Cafeteria in the Corporate Office and Food Lounge of Multi Purpose hall
 of your Company. Healthy community living is spread through
 periodically conducted cultural programmes for celebrating various
 occasions like Diwali get-together, Holi Milan, New Year, Raising Day,
 etc. in all establishments of the Company.
 The Company also conducted various sports competitions, for boosting
 the interest of employees in sports and games, at intra and inter-
 regional level for Kabaddi, Cricket, Volleyball, Badminton etc. Your
 Company also participates regularly in Inter-PSU Sports meet also. Your
 Company players in Cricket, Table Tennis, and Carom have stood
 meritorious and bagged awards in the Inter-PSU tournaments.
 Citizen''s Charter
 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 ofthe Corporation and issues ofgeneral interest to stakeholders.
 Implementation of Official Language
 Your Company, being sensitive towards our heritage, social and cultural
 concerns, continues to prove its commitment for implementation of
 Rajbhasha Policy of Govt, of India.
 Your Company is enforcing and puffing all efforts for usage of Hindi in
 all aspects of management in all levels ofthe corporation. Further, the
 Company is organizing various events such as workshops to impart
 training in translation, enhancing working knowledge through organizing
 computer trainings and Hindi classes, etc. for increased use of
 Official language. Events like 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, employees are nominated for
 external Hindi training programmes which are encouraging them to work
 in Hindi.
 Various forums such as Parliamentary Committees on Official Language,
 Advisory Committee on Official Language and Town Official Language
 Implementation Committee (TOLIC) had applauded the efforts taken by
 your Company for implementing Rajbhasha besides receiving many
 Corporate Image through Communication Management
 In the current global competitive scenario, it is crucial that
 Companies carve out a unique niche for itself in terms of building
 strong relationship with its stakeholders and establishing brand
 identity for themselves through various innovative communications
 management initiatives.
 In order to facilitate interaction with the stakeholders in respect of
 achievements, growth, recent developments on operational and financial
 front, regular press communique 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.
 Your Company through its efficient communication management handled the
 most challenging communication crisis by disseminating prompt
 information amongst the press and journalists regarding restoration of
 the National Grid in July/ August, 2012. The management was regularly
 updating the press and the media by releasing hourly updation reports
 and interviews thereby maintaining a transparent communication with the
 Your Company successfully participated in the India International Trade
 Fair (IITF) 2012 exhibition by creating a theme stall based on Smart
 Grid Technology and 1200 kV HVDC transmission line, focusing on its
 ongoing activities, core competencies and current assignments. The
 Company also participated in many business oriented exhibitions,
 technical, social seminars and workshops to reach out to its principal
 clients and the public.
 With a view to integrate the employees'' outlook towards the Company''s
 mission, goals and strategies numerous internal communications tools
 are deployed such as monthly newsletters in digital form, wall
 magazines, lounge for regular event updates to apprise the
 developments, achievements & viewpoints of organisation. Besides this,
 we also provide a stage to our employees for direct interaction with
 management by organizing Open House session time to time where CMD
 and Directors interact with all the employees either directly or
 through video conferencing. These internal communications has been
 instrumental in boosting employee morale, enthusiasm and in turn giving
 a fillip to revenue per employee.
 Your Company with the support of Ministry of Power and in association
 with CBIP and IEEMA has organised its 4th International Exhibition and
 Conference GRIDTECH 2013 on new technologies in transmission,
 distribution, smart grid/city, load dispatch & communication. Being an
 excellent global networking opportunity for exhibitors, visitors and
 delegates, GRIDTECH 2013 provided an opportunity for all Companies to
 showcase their Transmission, Distribution, Smart Grid, Load Dispatch
 and Communication expertise and know-how and to identify business
 opportunities in the electricity market in India and abroad.
 Recognising the importance in development of Smart Grid/City for
 sustainable development, special considerations and showcasing were
 done for exhibiting real life working of Smart Grid/City covering
 various functionalities by the exhibitors including the demonstration
 of the functioning of Smart Home Energy Management System.
 Your Company focuses more on Preventive and Pro-active Vigilance, apart
 from Detective, Predictive and Punitive Vigilance. Aiming at better
 transparency in working of the Organisation and to inculcate a sense of
 Ethics, Integrity and sound Corporate Governance several steps are
 being taken for improving the system and vigilance administration
 through various technologies such as Online Complaint Handling System,
 Vigilance Information Network System (VINS), Online Property Returns,
 e-bidding, e-payments, e-auction, e-procurement, e-billing, etc. in the
 Organisation as a whole. Various workshops on Preventive Vigilance,
 Ethics and the RTI Act are also conducted both at the Corporate Centre
 as well as in the Regions.
 Your Company, as a part of Preventive Vigilance, inspections in the
 form of surprise and process online were conducted, apart from CTE type
 inspections. Based on the inspections conducted, adequate cost
 compensation was effected on points not conforming to technical
 specifications or conditions of Contract, etc. On the basis of surprise
 inspections conducted, some cases were also registered for
 investigation and necessary disciplinary proceedings were initiated in
 some cases. A number of complaints were also received both internally
 as well as from outside agencies. The Company has adopted zero
 tolerance towards corruption. The complaints received are therefore,
 taken up for verification, earnestly. On the basis of investigations
 conducted into these complaints, disciplinary action, wherever
 appropriate, was also initiated against some employees. The Vigilance
 Department continues its drive to spread awareness amongst employees by
 sending bulk SMS and e-mails regarding the provisions of the Conduct,
 Discipline and Appeal Rules. Continuous improvement in systems and
 procedures has always remained one of the hallmarks of your Company.
 The Company have, like in previous years, continued its focus on
 spheres of functioning, like, communication of assessment to the
 concerned bidders, incorporation of provision relating to conflict of
 interest, restriction relating to purchase of mementoes to visiting
 dignitaries, installation of surveillance cameras to increase security,
 storage of materials at construction sites, etc. Vendors'' meet were
 also organized during the year in various Regions to bolster more
 interaction with the stakeholders.
 During Vigilance Awareness Week, your Company organized a number of
 programmes both at Corporate Centre and regions like essay, debate,
 quiz, slogan and painting competitions both for employees as well as
 for their family members. Panel discussions and lectures by eminent
 personalities and academicians were also organized. The Vigilance
 Commissioners, Shri R. Srikumar and Shri J.M. Garg, addressed the
 employees at Corporate Centre and at the Regions (through Video
 Conferencing) during this week. The in-house journal ofthe Vigilance
 Department, ''Candour'' was also inaugurated during this period and
 distributed widely amongst the employees.
 Govt, of India and other prestigious organisations & institutes has
 bestowed your Company with various awards/ accolades in various
 Your Company has been selected for ''MoU excellence award'' for FY
 2010-11 by Department of Public Enterprises (DPE), Ministry of Heavy
 Industries & Public Enterprises for being the top performer in the
 Energy Syndicate.
 Your Company had been conferred with the 3rd Rajeev Gandhi Excellence
 Award 2011 under the ''Best Power Company of the Year'' Category by an
 NGO Pehchan, to commemorate Late Prime Minister Shri Rajiv Gandhi''s
 birthday, in a function held on August 20, 2012 at New Delhi.
 Your Company has also been conferred with the 4th DSIJ PSU Awards 2012
 for Fastest Growing Navratna in non-manufacturing category by Dalai
 Street Investment Journal in a function held in New Delhi on March 23,
 Further, your Company''s team had won the National Championship of
 National Competition for Business Management Simulations -2012 and
 represented India in Asian Championship.
 In addition to the issues in the Directors'' Reports, some issues have
 been brought out in Report on Management Discussion and Analysis placed
 at Annexure-I.
 The Business Responsibility Report as stipulated under Clause 55 ofthe
 Listing Agreement with the Stock Exchanges is given in Annexure-ll and
 forms part of the Annual Report.
 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-lll to this Report.
 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 conversation of energy, technology absorption
 and foreign exchange earnings and outgo is given in Annexure-IV to this
 Company has achieved ''NIL'' comments on the accounts for the year ended
 March 31, 2013 by the Comptroller and Auditor General of India under
 Section 619(4) ofthe Companies Act, 1956. Copy is attached in
 Annexure-V to this Report.
 A Report on the Corporate Governance (Annexure-VI), forming part of
 this Report, together with the Certificate thereon is given in
 Annexure-VII to this report.
 Your Company has got its Secretarial Compliance Audit conducted for the
 financial year ended March 31, 2013 from M/s Sanjay Grover &
 Associates, Practising Company Secretary. Their Report forms part of
 this Annual Report (Annexure-VIII).
 The Statutory Auditors of your Company are appointed by the Comptroller
 & Auditors 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 2012-13.
 Your Company had appointed the Cost Auditors Shri Jugal Kishore Puri
 and M/s. K. G. Goyal and Associates for the Financial Year 2012-13.
 Further, M/s. K. G. Goyal and Associates and M/s. S. C. Mohanty &
 Associates have been appointed as Cost Auditors for the Financial Year
 2013-14 under Section 233B of the Companies Act, 1956.
 The due date for filing Cost Audit Reports for the financial year
 2012-13 with the Cost Audit Branch, Ministry of Company Affairs is
 September 27, 2013 and the same will be filed with the Cost Audit
 Branch within the stipulated time.
 During the year under report, some changes took place in the
 Directorate. Shri Ravi P. Singh assumed the charge of Director
 (Personnel) with effect from (w.e.f) April 1, 2012 and Shri R. P.
 Sasmal, took over the charge of Director (Operations) with effect from
 August 1, 2012.  Five non-official part time directors viz. Shri R. K.
 Gupta, Dr. K. Ramalingam, Shri R. Krishnamoorthy, Shri Ajay Kumar
 Mittal and Shri Mahesh Shah were appointed with effect from January 16,
 Further, Shri Rakesh Jain, JS&FA, MoP, ceased to be Director on the
 Board of the Company w.e.f. July 08, 2013 (Afternoon). The Board wishes
 to place on record its deep appreciation and gratitude for the
 invaluable contribution and unstinted support to the Company extended
 by Shri Rakesh Jain during his tenure as Director ofthe Company.
 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, Smt. Rita Sinha, Shri Santosh Saraf,
 Independent Directors shall retire by rotation at the Annual General
 Meeting of your Company and being eligible, offer themselves for
 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 ofStatisticsand
 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 BSE 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-Ill for the
 co-operation 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
 themon POWERGRID.
 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 ouraim 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: 06.08.2013                Chairman & Managing Director
Source : Dion Global Solutions Limited
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