Ladies & Gentlemen,
It gives me immense pleasure to present on behalf of the Board of
directors, the 25th Annual Report on the performance of your Company
during the financial year ending March 31, 2014 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.
It is a matter of pride that this Navratna Company, having been
formed in 1989, is presently in its Silver Jubilee year. It is
another happy coincidence that with the commissioning of
Raichur-Solapur 765kV Single Circuit line, the work of synchronously
connecting the nation, with One Nation, One Grid, One Frequency was
also successfully completed in this year. This has led to the emergence
of one of the largest electrical grids operating at a single frequency
in the world. during these years of electrical unification, the Company
displayed its proficiency in all its areas of operation and this has
led to a continuous, holistic and inclusive growth of inter-State
transmission System. The addition in transmission system, together with
efficient operation of such a large network, has indeed contributed
phenomenally in development of infrastructure in the country.
Your Company''s sustained performance, reflected through continuous
asset creation, increasing revenues, and resultant profits, has also
led to creation of value for its shareholders and speaks volumes of its
growth journey and operational excellence. Your Company''s strategic
importance in development of the country''s power sector has further
enhanced its reputation not only within the country but also globally.
The confidence of the international investor community, enjoyed by your
Company, was evident through their overwhelming response to its second
Follow-on Public offer which witnessed a huge interest from the
Your Company once again demonstrated consistency in exceeding most of
the performance targets agreed under the Memorandum of Understanding
signed with Ministry of Power (MoP), Government of India for FY 2013-14
and is poised to be rated ''Excellent'' in MoU parameters thus
consistently maintaining the record of Excellence year after year since
its first MoU signed in 1993-94.
Based on overall performance, your Company stood at top amongst the
assessed Companies in the Power Generation and Transmission Syndicate
for the FY 2012-13.
Major achievements by your Company during FY 2013-14 on various fronts
are mentioned below:
- Capital investment of Rs. 23,158 Crore
- Commissioned new transmission assets comprising about 6,604 circuit
kilometre (Ckm) of Extra High Voltage (EHV) transmission lines,
17 new sub-stations and 41,160 Mega Volt Ampere (MVA) transformation
- Capitalisation of transmission assets worth Rs. 15,904 Crore
- Investment approval accorded for 19 new transmission projects worth
about Rs.8,548 Crore.
- Maintained transmission system availability at 99.92% with number of
trippings per line limited at 0.56.
- An important landmark, i.e. synchronous interconnection of all-India
National Grid, has been achieved through successful commissioning of
Raichur (Karnataka) - Solapur (Maharashtra) 765kV Single Circuit line
on december 31, 2013.
- Total inter-regional power transfer capacity of 6,300Mw was added
during the year thereby enhancing the cumulative inter-regional power
transfer capacity of National Grid to about 37,950 Mw at the end of
- International interconnection has been established between India and
Bangladesh with the commissioning of Bheramara (Bangladesh)
- Baharampur (India) 400kV d/c line, along with 500Mw High Voltage
direct Current (HVdC) back-to-back terminals at Bheramara. The
interconnection was inaugurated jointly by Hon''ble Prime Ministers of
India and Bangladesh.
Your Company recorded an impressive financial performance during FY
2013-14 as detailed below, achieving a turnover of Rs. 15,721 Crore and
Net Profit of Rs. 4,497 Crore as compared to Rs. 13,329 Crore and Rs. 4,235
Crore during FY 2012-13, registering an increase of 17.9% and 6.2%,
Your Company continues to show improved performance in all its business
areas including Telecom and Consultancy, enhancing the value for the
(Fig. in Crore except EPS & Book value)
Description 2013-14 2012-13 Y-o-Y Growth
Transmission Charges 14,250 12,163 17.2%
Consultancy - Sale
of Service 333 229 45.4%
Consultancy – Sale
of Product 294 86 241.9%
Telecom 276 231 19.5%
other operating Income 77 49 57.1%
other Income 491 571 -14%
Total Income 15,721 13,329 17.9%
Profit After Tax (PAT) 4,497 4,235 6.2%
Earnings per Share (Rs.) 9.36 9.15 2.3%
Book Value per Share(Rs.)65.78 56.62 16.2%
Gross Fixed Assets 96,504 80,600 19.7%
Long term borrowing* 80,470 66,188 21.6%
Net Worth 34,413 26,213 31.3%
Debt Equity Ratio 70:30 72:28
Investment 23,158 20,037 15.58%
Capital Investment and Fund Mobilization
During the year under review, your Company made an investment of Rs.
23,158 Crore (15.58% higher than previous year) for implementation of
its projects in line with its capex-programme under XII Plan. For this,
funds of about Rs.15,528 Crore were mobilised through private placement
of bonds, and proceeds of ongoing Supplier''s credit, SBI Line of
credit, and loans from multilateral funding agencies like The world
Bank, Asian development Bank. In addition, the accrued internal
resources and FPo proceeds amounting to about Rs. 7,630 Crore were
utilized for funding equity component of the investment.
Your Company''s second Follow-on Public offer of equity shares
comprising fresh issue of 13% of existing paid-up equity capital and
disinvestment of 4% by Govt. of India was successfully concluded. The
issue price was finalized at the upper band of Rs.90 and was
oversubscribed 6.74 times overall. while your Company received Rs. 5,321
crore from the proceeds, the Govt. of India received Rs. 1,637 Crore.
At the beginning of the year 2013-14, your Company''s International
Credit Rating by both Standard & Poor''s (S&P) and Fitch Ratings Ltd.
(Fitch) was BBB- (outlook Negative) which was consistent with India''s
sovereign rating. In June, 2013, Fitch Ratings revised the outlook on
sovereign rating to ''Stable'' from ''Negative'' and accordingly your
Company''s rating by Fitch was raised to BBB- (outlook Stable). The
Company continues to have its rating as ''AAA/ stable'' (triple A with
stable outlook) by CRISIL, ICRA and CARE ratings domestically.
Your Company has been regularly paying dividend @30% of PAT as
prescribed under dPE guidelines. For FY 2013-14, your Company has
proposed a final dividend of Rs.1.31 per share in addition to Rs. 1.27 per
share of interim dividend paid in March, 2014. The final dividend shall
be paid after your approval at the Annual General Meeting. Thus, the
total dividend payout for the year amounts to Rs. 1,350 Crore (including
an interim dividend of Rs. 665 Crore) as against Rs. 1,273 Crore paid
during the previous year. The total dividend payout including dividend
tax accounts for 35% of Profit after Tax of the Company.
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 in accordance
with the provisions of the Act for safeguarding the assets of the
Company and for preventing and detecting fraud and other
iv. the directors have prepared the annual accounts on a going concern
As per Central Electricity Regulatory Commission (Sharing of
inter-State Transmission Charges and Losses) Regulations, 2010, your
Company, as the Central Transmission Utility (CTU) of the country, has
been assigned the responsibility for carrying out activities such as
raising of transmission charge bills on behalf of all the Inter-State
Transmission System (ISTS) Licensees, 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
designated ISTS Customers (dICs), including the payment details by the
It is a matter of pride that the Company achieved about 99% realisation
of transmission tariff during FY 2013-14.
As on April 01, 2014, the transmission assets owned and operated by
your Company stand at about 106,804 Ckm of Extra High Voltage (EHV)
transmission lines and 184 Nos. EHVAC & High Voltage Direct Current
(HVDC) sub-stations with about 205,923 MVA transforma tion capacity.
Your Company continues to wheel about 50% of the total power generated
in the country.
Maintaining such a large and highly complex transmission network has
been an extremely difficult and challenging task. This has been
achieved through deployment of state-of-the-art operation and
maintenance techniques, which are at par with international standards.
Maintenance activities are planned well in advance and an Annual
Maintenance Plan is chalked out for every asset such that ''Preventive
maintenance'' takes precedence over ''breakdown maintenance''.
Your Company introduced aerial patrolling of transmission lines using
helicopter for the first time in India. Transmission line defects are
identified by deploying helicopter equipped with Gimbal mounted LIdAR
(Light Ranging and detection), Thermo-vision Camera, High resolution
digital Video cameras. while Hotline maintenance of 400kV transmission
line is already in vogue, your Company is also planning to introduce
Hotline maintenance of transmission lines of 765 kV voltage level using
Helicopter. To intercept major failures and prevent them, your Company
has adopted state-of-the-art condition monitoring techniques, such as
''Frequency Response Analysis'' for Transformers and Reactors, ''dynamic
Contact Resistance Measurement'' for Circuit Breakers, ''Third Harmonic
Resistive Current measurement'' for Surge Arrestors, ''Thermo-vision
scanning'' etc. The Company has also started online monitoring of 765kV
equipment (transformers and reactors) for measurement of critical
Your Company deploys State-of-the-Art ''Emergency Restoration System''
for immediate restoration of collapsed transmission lines due to
natural calamities before permanent restoration work is taken up. Your
Company has also taken initiative for development of Emergency
Restoration System (ERS) for sub-stations of 400kV level using mobile
substations mounted on trailer to restore power during emergency and
extremely critical situation, wherein whole/ major part of substation
With a view to optimize its operation and maintenance manpower and
efficiently deploying them, your Company is establishing National
Transmission Asset Management Centre (NTAMC) at Manesar, Haryana for
centralised remote monitoring, operation & control of sub- stations.
At the end of 2013-14, fifty-one (51) substations are being operated
through remote operation and twelve (12) substations are unmanned.
Maintenance Service Hub facility has also been established where
specialised group of experts are available for immediate deployment in
the event of requirement.
The result of consistent efforts and round the clock monitoring is
demonstrated through your Company''s high operational performance during
the year in terms of transmission system availability (99.92%) and the
number of tripping per line (0.56).
International Benchmarking of O&M practices
with an aim of continual improvement, o&M practices of your Company are
being benchmarked internationally through International Transmission
operation and Maintenance Study (IToMS) carried out by UMS, USA. In
IToMS studies/ benchmarking, twenty-eight (28) power transmission
utilities across the globe participated and their performances are
evaluated and benchmarked. As per the studies, your Company''s overall
performance stood in the best quadrant (i.e. low cost and high
performance). In addition, performance benchmarking of all nine (9)
Regions amongst each other and the region(s) with external member
Utilities of IToMS, was also carried out to identify areas of
Your Company continues to put in its best efforts to complete its
transmission projects within scheduled timelines, thereby extracting
the maximum commercial benefit. The Company achieves this through its
Integrated Project Management and Control System (IPMCS), timely review
meetings, intensive monitoring by top management through video
conferencing/ regular site visits and undertaking various pre-emptive
As a result of above steps and with the dedicated efforts of the
employees, assets worth about Rs. 15,904 Crore were capitalized by your
Company during the year 2013-14, adding about 6,604 ckm transmission
lines, 17 sub-stations and about 41,160 MVA transformation capacity in
the transmission system. Some of the major transmission assets
commissioned during the year include 765kV transmission lines such as
Sasaram-Fatehpur (S/c), Raichur-Solapur (S/c), Ranchi-wR Pooling
Station (S/c), Fatehpur – Agra (S/c), Jabalpur Pooling Station – Bina
(d/c), Raigarh (Kotra) – Raipur (d/c). The projects were completed in
spite of severe constraints faced during its implementation including
challenging terrains, severe Right-of-way (Row) problems. The
implementation of High Capacity Power Transmission Corridors is
underway and some elements under the same have already been
During the year, investment approval was accorded for 19 new projects
with an estimated cost of about Rs. 8,548 Crore, which involves about
5,530 ckt km of transmission lines, 4 new sub-stations and
transformation capacity of about 12,730 MVA were taken up for
DEVELOPMENT OF NATIONAL GRID
In its ''Silver Jubilee'' year, your Company achieved one of the major
objective of its formation. Nationwide synchronous power grid is
established upon successful commissioning of 765kV S/c Raichur –
Sholapur line on 31st december, 2013. with this, ''One Nation - One Grid
– One Frequency'' has become a reality. Your Company has also
commissioned 765kV S/c Sasaram – Fatephur and 765 kV S/c Ranchi-wR
Pooling Station inter-regional lines, having 2100 Mw power transfer
capacity each. Thus, in this F Y, your Company has added a total
inter-regional power transfer capacity of 6,300 Mw, thereby adding
total capacity of 8,300 Mw during the first two years of the XII plan
period. At the end of 2013-14, the inter-regional power transfer
capacity of 37,950 Mw has been established.
By the end of XII Five Year Plan, inter-regional power transfer
capacity is envisaged to be 72,250 Mw.
PERFORMANCE AGAINST COMPETITION
Your Company continued to display impressive performance under Tariff
Based Competitive Bidding (TBCB) by excelling over its competitors.
during the year 2013-14, your Company acquired two Special Purpose
Vehicles (SPVs), namely ''Vizag Transmission Limited'' and ''Unchahar
Transmission Limited'' for the projects Transmission System for System
Strengthening in Southern Region for Import of Power from Eastern
Region and Transmission System for ATS of unchahar TPS, respectively.
As on March 31, 2014, the Company has secured 5 projects under TBCB,
and has won about 40% of the projects floated under TBCB since January,
GRID MANAGEMENT AND OPEN ACCESS
Power System operation Corporation Limited (POSOCO), a wholly owned
subsidiary of your Company, continues to look after the grid management
of the country. POSOCO with its state-of-the-art Unified Load despatch
& Communication (ULdC) facilities in place, carries out the function
efficiently and transparently. Further, National and Regional Load
despatch Centres (NLdC & RLdCs) are upgraded and modernised
continuously to establish an effective grid management infrastructure
in the country.
During 2013-14, to meet the demands in the country, about 78.38 Billion
units (Bus) of inter-regional energy transfer was facilitated, across
the nation using pan-India inter-regional transmission links and RLdCs.
Under Short Term open Access (STOA), your Company has approved about
33,917 transactions, 10,290 nos. bilateral transactions and 23,627 nos.
collective transactions, involving 87 BUs of energy transfer in FY
2013-14 as against 32,139 transactions and about 73 BUs of energy
transferred during FY 2012-13.
Your Company, as Central Transmission Utility (CTU), is the nodal
agency for processing & grant of Connectivity, Medium Term open Access
(MToA) and Long Term Access (LTA) of various applicants. Till March 31,
2014, the Company granted LTA to 148 nos. of applications for 80,000 Mw
capacity, out of 223 applications received in all. Further,
connectivity was granted for 79 nos. of eligible applications for
70,000 Mw capacity out of 190 applications received for about 195,000
Mw capacity in all. Till 31st March 2014, 127 applications were
received for MToA and MToA was granted to 48 nos. of applications in
all for about 4,500 Mw capacity.
Your Company has put in lot of effort in identifying and implementing
various quality improvement measures during the year 2013-14. By way of
carrying out continuous process/ surveillance audits, your Company
created win-win partnership with suppliers to get superior quality
product including reduction in cost.
with the increased area of work & value of supply of equipment/
materials, capacity building remains one of the major challenges for
the Company. Inclusion of new vendors upon assessment and developing
new sub-vendors especially for 765 kV transformers, reactors,
transmission towers were undertaken on priority to meet project
Process audits are continued to be carried out in the manufacturing
units of various vendors, sub-vendors & even further below in supply
chain, which are spread all over the country, to achieve the target of
zero product inspection. Quality audits at sites were also undertaken
during the year for instant feedback and to take appropriate corrective
Your Company undertook various activities to ensure that the
equipment/material conform to the technical specifications and are
supplied in time to meet the completion targets of the projects, such
as defining proper processes, quick approval of Quality plans,
intelligent inspection of materials (in process & before acceptance).
during the year, continuous follow up with manufacturers for timely
manufacturing, testing of various critical items and issue of requisite
clearances were expedited.
Your Company continues to develop and maintain systems & procedures
aligned with Integrated Management System comprising ISo 9001: 2008 for
Quality Management System, ISo 14001: 2004 for Environmental Management
System and oHSAS 18001: 2007 for occupational Health and Safety
Management System. The certification has been maintained after rigorous
audits by BSI Management Systems. Your Company also completed
implementation of PAS 99 in ER-I and SR-II during FY 2013-14.
Your Company has been at the forefront in adoption of state-of-the art
technologies for improving the efficiency in power transmission and for
overcoming the challenges associated with establishment of high
capacity power transmission corridors and the National Grid.
One of the key focus areas is the adoption of transmission of power at
higher voltage level. Implementation of ±800kV HVdC & development of
1200kV Ultra-High-Voltage AC (UHVAC) system are important milestones in
800kV Multi-Terminal HVDC System
HVDC system facilitates bulk power transmission over long distances
with power controllability, reduced Row and transmission losses.
Implementation of ±800 kV, 6,000 Mw multi-terminal HVdC system of
around 2,000 kms. 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. during the year, 7 Converter
transformers were transported from Haldia port in west Bengal to
Biswanath Ghat in Assam over Brahmaputra River on Barges and delivered
at site. Upon completion, it shall be one of the largest multi-terminal
HVdC systems in the world at this voltage level.
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 under Public Private Partnership (PPP) and 1200kV
UHVAC National Test Station at Bina, Madhya Pradesh has been
established for the same. The 1200kV Single Circuit (S/c) and double
Circuit (d/c) test lines were successfully test charged along with one
1200kV bay and field tests are undergoing. Installation and charging of
2nd 1200kV single phase Circuit Breaker in the first bay of 1200kV
National Test Station, Bina was completed in december, 2013. Further,
erection of 2 units of transformer for single phase units of the
transformer bank in the second bay of the 1200kV test was also
Besides above, during the year, your Company also conducted feasibility
study on ''Superconducting Fault Current Limiter (SFCL)'' and formulated
a pilot project on Energy Storage in terms of technology, capacity,
Envisioning setting up of a world class laboratory for carrying out
research and development in power transmission area, your Company is
establishing POWERGRID Advanced Research and Technology Centre (PART)
at Manesar, Gurgaon, with state-of-the-art laboratories for power
system analysis, advanced equipment diagnostics, smart grid in
transmission and distribution, energy efficiency, power system control
and automation, material science and engineering design. Further, your
Company is also establishing a transmission line research lab to carry
out validation of transmission line design and subsequent optimization.
Your Company, in the quest to achieve fully digitized substations, is
in the process of introducing Process Bus technology for substations.
Your Company is also in the process of mapping pollution intensity of
various regions of the Country on a geographical map. This activity
shall enable efficient and effective transmission line designs,
particularly in high pollution and fog affected areas.
SMART GRID TECHNOLOGY
Your Company continues to take pioneering steps in bringing Smart Grid
technology in entire value chain of electricity in the country. In
order to promote smart grid technologies, your Company has developed
Smart Grid pilot project in the country through open collaboration, at
Puducherry. Almost all the attributes of Smart Grid viz Advance
Metering Infrastructure (AMI), outage Management System (oMS), demand
Response, Power Quality Management (PQM), Renewable Integration through
net-metering, Smart Home Energy Management System, Electric Vehicles,
Street Light Automation System etc. have been successfully integrated
at Smart Grid control centre at Puducherry through latest communication
technologies to showcase technology efficacy in a holistic manner.
Further, your Company has also prepared project reports for smart grid
solutions for Indiranagar (Bangalore), Paradeep Port Trust and Goa.
Recognizing experience and expertise in the field of smart grid
development, eight (8) utilities have appointed your Company as
Advisor-cum- Consultant for implementation of smart grid project at an
estimated cost of about Rs. 200 Crore during FY 2013-14.
Your Company has undertaken full scale implementation of real time
smart transmission projects applying State-of-the-Art wide area
measurement system (wAMS) using advance synchrophasor technology in the
grid. This Unified Real Time dynamic State Measurement (URTdSM) project
involves placement of Phasor Measurement Units (PMUs) at all 400 kV and
above substations, generation switchyards of 220 kV and above, HVdC
terminals and Phasor data Concentrator (PdC) at SLdC, RLdC & NLdC
control centres along with backbone communication infrastructure, which
has enhanced the efficiency of the overall grid management.
With the growing need of energy storage to facilitate integration of
renewables, your Company is implementing Battery energy storage pilot
project at Puducherry to evaluate different technologies for proof of
concept, application(s), policy advocacy etc. in Indian context. Your
Company has also taken lead initiative to establish base line data
repository on power quality parameters through field measurement at
various voltage level on pan India basis. It also involves
identification of mitigating measures/ devices like active harmonic
filter, automatic power factor controller etc.
Your Company has been indigenously developing smart products like smart
meter, data concentrator unit, home energy management system, micro
grid controller, smart cap utilizing solar energy, active filter etc.
for varied applications.
INTEGRATION OF RENEWABLES
Your Company has developed comprehensive master plan for grid
integration of envisaged renewable generation capacity addition during
the XII Five Year Plan through Green Energy Corridors across India. The
plan covers intra-state & inter-state transmission systems and
mitigating measures for grid interconnection of variable & intermittent
renewable energy. It also includes other control infrastructure like
forecasting tool for renewable generation, establishment of renewable
energy management centers, provisions for flexible generation, energy
storage, smart grid applications like demand side management & demand
response etc. Under this, your Company has been assigned the
implementation of inter- State Transmission System portion of the
scheme, setting up of Renewable Energy Management Centres and control
infrastructure to be included in the Kfw/GIZ, Germany proposal by
Ministry of Power, GoI. Your Company has been taking various actions
under this and implementation is expected to commence shortly.
The country has huge renewable energy potential through solar and wind,
of the order of about 300Gw, at desert/ cold desert waste land in
Kutch, Thar, Lahaul & Spiti and Ladakh. To harness the same, your
Company has also evolved an integrated development plan for
establishment and grid integration of 300Gw capacity addition by 2050
at an estimated cost of Rs. 43.75 lakh Crore, through hybrid transmission
corridors utilizing High Voltage direct Current (HVdC) (including VSC
based) as well as 1200kV UHV AC/ High temperature superconductor
technologies, etc.. A report on the plan, dESERT PowER INdIA – 2050,
has been submitted to Ministry of Non-Renewable Energy (MNRE), Ministry
of Power (MoP), Ministry of Finance, Planning Commission, Central
Electricity Authority (CEA) and Central Electricity Regulatory
Your Company has developed plan for installation of rooftop solar Photo
Voltaic (SPV) for residential consumers, commercial building, metro
stations & tracks and solar street lights for delhi towards
sustainability. It covers generation of about 2300 Mwp. A comprehensive
report, GREEN dELHI, was prepared and submitted by your Company to
Govt. of delhi, MNRE, MoP, Planning Commission, CEA and CERC.
India is one of the world''s emerging economic giants, with
ever-increasing energy demand. It is facing formidable challenges in
meeting its energy needs and sustainable development. Energy
conservation through energy efficiency measures shall play an important
part to address these challenges to a large extent. Considering
potential in this field, your Company has initiated activities in
carrying out energy audits of various establishments such as steel
industries, cable industries, structural industries, Port Trusts,
Airports, Institutions, etc and providing recommendations/ smart
solutions for energy efficiency improvement.
In a short time span, your Company has set a benchmark for itself as an
Energy Efficiency solution provider. The Company is known as a major
Energy Auditing firm in the country with more than fifty (50) Bureau of
Energy Efficiency (BEE) Certified Energy Auditors/ Managers. Your
Company has also obtained certification under BEE Grade-I Energy
Service Company (ESCo) for undertaking implementation of energy
efficiency projects on shared saving basis.
Your Company has indigenously designed and developed waste heat
recovery system executed projects and the same are operating
successfully, enabling huge fuel/ energy savings.
Towards energy conservation, your Company has also undertaken project
on demand Side Management in Karnataka for replacement of old
agricultural pumps with energy efficient pumps.
Another milestone was achieved during the year when the Corporate
office at Gurgaon and two Regional offices at Jammu & Hyderabad were
awarded ISo 50001 certification for its efficient and effective Energy
''POWERTEL'' - TELECOM SERVICES ON TRANSMISSION INFRASTuCTuRE
Your Company diversified into Telecom business under the brand name
''POWERTEL'' to expand its revenue stream by installing overhead optic
fibre network using oPGw (optical Ground wire), leveraging its existing
countrywide transmission infrastructure. Your Company has an all India
Broad Band Telecom Network of about 29,640 km, providing connectivity
to all metros, major cities, towns, State capitals including remote
areas of North-Eastern Region, Jammu & Kashmir etc. and covering about
317 Points of Presence (PoPs) across the country from where services
are being rendered. Your Company possesses, Infrastructure Provider
Category-I (IP-I), Internet Service Provider ''A'' (ISP ''A'') and National
Long distance (NLd) Service License to provide a variety of Telecom
services. during the year 2013-14, the availability of Telecom
Backbone system was maintained at 99.94%. Your Company added 32 new
customers, increasing its customer base to 150. The income from Telecom
increased to about Rs. 276 Crore in FY 2013-14 from Rs. 231 Crore in FY
National Knowledge Network (NKN)
National Knowledge Network (NKN) is a multi-gigabit network, devised by
the Govt. of India with the purpose to provide a unified high speed
network backbone for educational institutions in India such as Indian
Institutes of Technology (IITs), Indian Institute of Science (IISc)
etc. on high speed connectivity. Your Company was one of the
implementing partners of this prestigious project and the scheme has
been operational. An amount of about Rs. 700 Crore has been received
against advance from National Informatics Centre (NIC) against NKN
order till March 31, 2014.
National Optical Fiber Network (NOFN)
The Government of India envisaged the setting up of National optical
Fiber Network (NoFN) for providing connectivity to all the 250,000 Gram
Panchayats (GPs) in the country. Your Company is a member of Advisory
Body and Core Committee of the ambitious NoFN project, which utilizes
existing optical fiber facilities of Bharat Sanchar Nigam Limited
(BSNL), POWERGRID and RailTel Corporation of India Limited to connect
the Gram Panchayats.
Under this, your Company has been allotted work for development &
maintenance of NoFN network in four States viz. Andhra Pradesh,
Himachal Pradesh, Jharkhand & odisha by Bharat Broadband Network Ltd
(BBNL), covering about 36,000 GPs. The work is to be carried out in
about 89 districts covering 1,769 blocks across these four States. The
estimated cost of the project for these states would be about Rs. 2,700
Crore. Under Phase-1 of this, your Company received Sanction Letter
from BBNL in october 2013 and has submitted to them Phase-1 plan
consisting of 37 districts, 670 Blocks and 14,000 Gram Panchayats.
BUSINESS DEVELOPMENT - CONSULTANCY
During the year under review, the Company secured thirty seven (37) new
consultancy assignments. These include the project of national
importance for construction of 220kV Transmission System from Alusteng
(Srinagar) to Leh and 66kV interconnection system for drass, Kargil,
Khalsti & Leh substations in J&K entrusted by the Govt of India. Your
Company also signed agreements with six States of North Eastern region
(NER) (Assam, Meghalaya, Mizoram, Manipur, Nagaland and Tripura) to act
as ''Project design cum Implementation Supervision Consultant'' for
implementation of ''NER Power System Improvement Project'' with The world
Your Company continues to assist the State Utilities in development of
their Transmission & distribution (T&d) infrastructure. one such major
assignment includes construction of 765 kV Transmission System
associated with Lalitpur Thermal Power Plant (2000Mw) on behalf of the
transmission utility of Uttar Pradesh (UPPTCL). In addition, towards
Capacity Building assignments during the FY 2013-14, Training was
imparted to the employees of transmission utilities in Maharashtra
(MSETCL), Madhya Pradesh (MPPTCL), Bhakra Beas Management Board (BBMB)
and damodar Valley Corporation (dVC).
In order to broaden the consultancy avenues, exploratory initiatives
have been undertaken into oil sector & Railways, which are expected to
fructify into business assignments in near future.
In the international arena, during the year, your Company secured seven
(7) new assignments having total project cost of about Rs. 140 Crore. The
Company made inroads in four new countries and provided Consulting
Services in 15 countries, viz. Nepal, Bhutan, Bangladesh, Afghanistan,
Sri Lanka, Myanmar, UAE, Nigeria, Ethiopia, Kenya, Tajikistan, Congo,
Senegal, Kyrgyz Republic, and Pakistan.
During the year under review, among other notable achievements, was the
commencement of Management Consultant Project in Ethiopia for a period
of 2 years for Establishment & Management of new Ethiopian Electric
Power Company, leading to successful formation of a new Utility viz.
Ethiopian Electric Utility (EEU) at Ethiopia with its first CEo from
your Company. This year also marked completion of prestigious
inter-country 400kV asynchronous interconnection link between India and
Bangladesh in September, 2013 wherein your Company provided Consulting
Services from pre-award to final commissioning stage to Power Grid of
Bangladesh for their portion of linked Transmission System in
Bangladesh. Your Company has successfully fulfilled its consulting
service obligations for export of goods amounting to about US$ 64
million for 230kV transmission lines and substations associated with
the Thahtay Chaung Hydro Power Project in Myanmar. Your Company has
been appointed as Consultant through International Competitive Bidding
for 1000Mw HVdC Interconnection between Tajikistan, Kyrgyz Republic,
Afghanistan and Pakistan.
During the year, your Company has earned revenue of Rs. 627 Crore
(including about Rs.294 Crore from sale of products) from domestic and
Once fully developed, South Asian Association for Regional Cooperation
(SAARC) Grid shall go a long way in harnessing capacities and resources
of SAARC Nations to address the growing energy needs in the region.
Your Company continues to strive for preparing a roadmap for the same.
Presently, a number of interconnections exist between India & Nepal and
India & Bhutan, which are being strengthened for mutual exchange of
A milestone has been achieved in this direction with the commissioning
of an asynchronous interconnection between countries India &
Bangladesh, through 500 Mw High Voltage direct Current (HVdC)
back-to-back terminal along with Bheramara (Bangladesh) - Baharampur
(India) 400kV d/c line in September, 2013, enabling power flow of the
order of 500Mw from India to Bangladesh.
Also, for evacuation of power from various upcoming hydro electric
power projects (HEPs) in Bhutan, Punatsangchu-I HEP (Bhutan) –
Alipurduar (India) 400kV double Circuit (d/c) line between countries
Bhutan & India, is under implementation and expected to be completed by
2015. Also, for transfer of bulk power, interconnection between India
and Nepal through 400 kV dhalkebar (Nepal) - Muzaffarpur (India) d/c
transmission line is under implementation. Feasibility study for
interconnection between India and Sri Lanka through an under-sea HVdC
bipole line is under finalization. Further, discussions for
interconnection between India and Pakistan through Amritsar (India) -
Lahore (Pakistan) line are being held at Government level.
CONTRIBUTION IN DISTRIBUTION REFORMS
Under Rajiv Gandhi Grameen Vidyutikaran Yojana (RGGVY) scheme for
rural electricity infrastructure and household electrification, your
Company has been assigned about one-third of the total works for
execution of rural electrification covered in sixty-five (65) districts
of nine (9) States in the country at a base cost of about Rs.7,230 Crore.
Most of the schemes have already been completed/ nearing completion.
During FY 2013-14, infrastructure was created for electrification in
2,388 villages out of which 2263 were partially electrified and 125
were un-electrified villages. Also, 5,315 villages were energised
including 632 un-electrified villages. Service connections were
provided to about 85,460 BPL households. Cumulatively, till March,
2014, infrastructure has been created for electrification of 71,042
villages including 32,588 un- electrified villages. Further, service
connections were provided to about 36.22 Lakh BPL households.
In addition, RGGVY works in four (4) districts of Uttar Pradesh, namely
deoria, Siddhartnagar, Pratapgarh, Kushinagar have been assigned to
XII PLAN DEVELOPMENT PROGRAMME
Your Company has made an ambitious plan to invest more than Rs. 100,000
Crore during the XII plan, matching with the envisaged generation
capacity addition. This investment is mainly towards development of
transmission infrastructure 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 above capex-plan, your Company
has already made a capital expenditure of Rs. 43,195 Crore in the first
two years of the plan period. The funding for capital expenditure are
planned to be met through loans from multilateral institutions such as
The world Bank, Asian development Bank, Supplier Credit, External
Commercial Borrowings through bonds / notes, besides loans from
domestic market through private placement of bonds. Based on the
ratings by both domestic and international credit agencies, your
Company do not foresee any difficulty in resource mobilisation.
Your Company has planned to add transmission network comprising about
40,000 ckm of transmission lines and about 100,000 MVA of
transformation capacity during the XII Plan. out of this, the Company
has already commissioned about 13,760 ckm of EHV transmission lines and
about 81,390 MVA of transformation capacity in the first two years of
the XII Plan.
ERP IMPLEMENTATION & IT
The implementation of Enterprise Resource Planning (ERP) system for
efficient, effective and organized business process is in advanced
stage and is expected to ''Go Live'' in 2014-15. during the year, various
landmarks have been achieved by the ERP team such as finalization of
Business Blue Print for the key processes related to the Company,
mapping of the business processes on SAP ERP system, implementation of
ERP data Centre at Manesar and imparting training to around 450 power
On IT front, your Company continues to espouse latest technologies for
the betterment of its business processes. Secure wi-Fi connectivity has
been provided in offices and other premises for seamless connectivity
and efficient working environment. Your Company continues to carry out
recruitment process through online application portal, which is
designed, developed and maintained by in-house talent. The same service
was also provided to few other organizations to carry out their
recruitment drive online. Further, various applications like Inspection
Management System, Vigilance Inspection System, and Attendance
Management System etc. are developed, run and maintained in-house for
assisting the business operations.
The Company has also taken up major technology upgradation of IT
infrastructure and has planned to enter cloud enabled computing
environment by next year. Apart from Consultant appointed for Cloud
Computing, your Company has also appointed a consultant for the
implementation of Information Security Management System (ISMS) and for
accrediting ISo:27001 Certification.
SUSTAINABLE DEVELOPMENT AND CORPORATE SOCIAL RESPONSIBILITY
Realising its obligation and commitment towards Sustainable
development, your Company has taken many initiatives such as
construction of National Transmission & Asset Management Centre (NTAMC)
Building at Manesar as per Green Rating for Integrated Habitat
Assessment (GRIHA) norms, along with 50kw solar plant, and installation
of waste Paper Recycling Plant, etc. Your Company is on the way to
progressively phase out the use of conventional paper and its
procurement in Corporate office as the Company''s letterheads, visiting
cards,envelopes, writing pads etc. are being prepared with recycled
paper produced in-house. These initiatives are not only testimony of
Company''s commitment towards Sustainable development but a firm step in
conserving precious ecological resources and reduction of carbon
Your Company feels the social pulse of the milieu in which it operates.
It believes in inclusive growth and undertakes various social
initiatives emphasizing on socio-economic and integral development of
areas / communities primarily in and around its areas of operations.
with this approach, the Company 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 etc..
During the year under review, the Company trained sixty-two (62) youths
under the ''Skill development Programme on Transmission line Tower
Erection'' in the backward district of Kokrajhar, Assam. other skill
development / livelihood training programs imparted to unemployed youth
are in the field of tailoring, cutting/ stitching, embroidery,
automobile repairing, handloom weaving, food & fruit processing,
repairing of household appliances, etc. to secure employment or to be
self-employed. The Company also installed hand pumps and improved
drainage facilities in Banka (Bihar). The Company also provided 1109
mandays training to employees/ other stakeholders on CSR/
sustainability/ environment conservation. Besides above, energy
conservation techniques were installed in five (5) substations
establishments under CSR. The Company also published Annual CSR &
Sustainability Performance Report for 2012-13 and Annual Target Booklet
for 2013-14. Your Company also initiated a project on restoration of
village ponds in Chhattisgarh. during the FY 2013-14, the Company made
an expenditure of Rs. 21.66 Crore on CSR activities, 0.51% of PAT of the
Under its Corporate Social Responsibility initiative, your Company has
entered into an agreement with AIIMS, New delhi in March, 2014 for the
construction of a 10 storey, 325 beds dharamshala named as (POWERGRID
Vishraam Sadan) inside the premises of Jai Prakash Narayan Apex Trauma
Centre (JPNATC), New delhi.
Memorandums of Understanding (MoUs) were also signed with International
Crop Research Institute for Semi-Arid Tropics (ICRISAT) for water shed
management projects in one village each in Andhra Pradesh and
Your Company extended a financial assistance to ''Chief Minister''s
Relief Fund'' for mitigating the sufferings of the victims of cyclone
''Phailin'' in odisha. Employees of your Company have also contributed
their one day salary to the ''Prime Minister''s Relief Fund'' for
assisting flood victims of the State of Uttarakhand.
PEOPLE, OUR CORE STRENGTH
Attracting Talent, Nurturing & Development of Human Capital
Employees are the pillars of your organization. during FY 2013-14, your
Company inducted two hundred sixty-nine (269) personnel at various
levels viz. Executives, Supervisors, workmen. while executives were
recruited through open advertisement on all India basis/ campus
selection from reputed engineering and management institutes,
recruitment of non-executives were carried out through employment
exchanges and local advertisement at regional level.
Your Company''s Human Resource development is primarily aimed at
learning new competencies, reinforcing good work practices & workplace
behaviour, as per organizational needs. The Company encourages
innovation, meritocracy and the pursuit of excellence. Employees are
synchronously updated and upgraded with changes in technology, strategy
and growing competitive business environment, in terms of their
knowledge, skill and outlook.
Your Company continue to assess the developmental needs of the
employees using online ''Training Need Assessment'' process and link the
same with the organisational/ business necessities to enrich its
employees with requisite proficiencies. Further, trainings on latest
technology and certification courses such as certified Project
Management & Risk Management programmes, Latest survey techniques & PLS
CAdd, Networking Skills, Hands on training on Transformer & Reactor are
promoted to enable employees to be in line with the best in class.
during the year, an average 5.96 training mandays / employee was
achieved towards training in areas of management development,
technological development, behavioural development, etc.
To establish new business area of Energy Auditing, your Company trained
additional group of executives for National Certification Examination
for Energy Auditors and subsequent accreditation by Bureau of Energy
Also, for enabling senior executives in their career advancement,
Transformational Leadership Programme (TLP) and Transformation
Management Programmes (TMP) were conducted at reputed institutions.
Apart from focussed functional and behavioural development of its
employees, your Company also conducted Programmes on women Empowerment
and Empowerment of employees by self-growth (for reserve category
employees) and special programme for differently abled employees.
As a part of your Company''s Competency Assessment and Skill Gap
Analysis, Corporate HRd, along with external consultant, has updated
the Competency directory (both functional and behavioural) for various
functions in the Company keeping in view the existing/ emerging
business of your Company. Based on this analysis, updated directory
assessment centre of one hundred thirty-three (133) nos. executives of
deputy General Managers (dGMs) level across the Company has been
Further, for overall skill development in the country, particularly in
the area of Power Transmission Line Construction, Capacity Building
Programmes are being conducted with the help of Transmission Line (TL)
construction contractors under Public Private Partnership (PPP) mode.
To leverage capabilities and resources with other institutions in the
area of training, your Company, during FY 2013-14, signed MoUs with
IIT, Roorkee, ASCI, Hyderabad, Fore School of Management, New delhi,
Asia Pacific Institute of Management, New delhi, Jaipuria Institute of
Management, Noida and ITM University, Gurgaon. POWERGRID Academy of
Leadership (PAL) being established by your Company at Manesar, near
Gurgaon is in advanced stage of completion and expected to reap the
As a part of HRd consulting, your Company trained power professionals
from both domestic and overseas utilities, including SAARC nations.
Your Company regards its employees as its core strength and, thus,
undertakes requisite changes in various policies from time to time for
A focused initiative to build employee health and well-being is also in
place. The program creates awareness on prevention of lifestyle
diseases, encourages employees to make positive health choices and
builds a healthy workplace. Similarly, several welfare initiatives such
as yoga, counselling, recreational and developmental programmes are
available to the employees and their families to promote work-life
balance. Eleven (11) Nos. of medical and health check-up camp were
organized for employees by your Company.
Your Company has a very effective Grievance Redressal System through
which almost all the grievances of the employees are settled, leading
to employee satisfaction. These consistent efforts in all directions
have resulted in very low attrition rate of less than 1% during the
year under review.
During the year, your Company formed ''Internal complaints committees''
as per Sexual Harassment of women at workplace (Prevention, Prohibition
and Redressal) Act, 2013, reflecting its commitment to provide a safe
and caring environment to female employees.
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, four (4) meetings with the employees''
representatives were held and the Industrial Relations scenario in the
Company has been cordial, leading to no man day loss.
Quality food is served to the employees in the ISo 22000:2005
accredited 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 Independence day, Republic day, diwali
get-together, Holi Milan, New Year, Raising day, etc. in all
establishments of the Company.
The Company also conducts 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. and participates
regularly in Inter-PSU Sports meet also.
Citizen''s Charter has been formulated for the Company providing a
visible front of its vision, mission, objectives, commitments, terms of
service and its obligation to various stakeholders. In this,
information is available about Company''s schemes, policies, project
plans of the corporation and issues of general interest to
Implementation of Official Language
In compliance with the official Language Act, 1963, official Language
Rules, 1976 and orders issued by the Government of India from time to
time, efforts were made to increase use of Hindi in official work
during the year. In all offices of the Corporation, Rajbhasha
Committees are functioning for overseeing implementation of official
Language effectively and to review the progress of implementation
including adherence to policies and the Annual Programme as circulated
by the deptt. of official Language, Govt. of India. Your Company is
continuously making efforts for the propagation and successful
implementation of the official Language Policy. The official Language
Implementation Committees both at Corporate and Regional levels held
their quarterly meetings regularly to monitor and review the progress
made in this direction.
Various forums such as Parliamentary Committees on official Language,
Advisory Committee on official Language and Town official language
Implementation Committee (ToLIC) have applauded the efforts taken by
your Company for implementing Rajbhasha. Your Company also received
many accolades on Rajbhasha implementation.
Corporate Image through Communication Management
Communication Management is essential for establishing a strong
Corporate Brand Identity and for strengthening the relationship with
With the ever increasing competition amongst the corporate majors
across the globe, Globalisation has manifested its trait making it
obligatory for the corporate giants to establish and maintain a strong
mutual understanding between the organisation and its stakeholders
through well planned and persistent communication interventions
dedicated with the aim to acquire and retain good reputation for the
Company. Bearing in mind the need for sustained, timely and bona fide
communication interventions, your Company has adopted various
communication strategies to appropriately highlight itself as an
infrastructure major contributing substantially towards development of
a sturdy national economy.
Your Company has been issuing various press communiqué for highlighting
achievements, growth, recent developments, thereby maintaining a
regular interaction with the masses. The Company also organises
Quarterly Press & Analysts'' Meet to facilitate face to face interaction
of the management with the eminent journalists, analysts and
stakeholders. This has helped in winning the trust of the masses and
During the execution of the Company''s second Follow-on Public offer,
the focal strengths and expertise of the Company were presented to the
investors in various campaigns comprising print and electronic media,
outdoor hoardings including investor road shows on pan India basis.
Your Company also participated in the India International Trade Fair
(IITF) 2013 exhibition by displaying a stall based on the theme of
inclusive growth. Your Company also participated in business oriented
exhibitions in Mumbai and delhi and in the country of Tanzania during
the year to reach out to focal clients and the common masses.
with a view to disseminate information regarding Company''s mission,
goals, strategies, achievements & events and viewpoints of management,
your Company deploys various internal communication tools such as
monthly newsletters, house journals, wall magazines, lounge and regular
Your Company successfully organised the GRIdTECH 2013, the 4th
International Exhibition and Conference on Transmission, distribution,
Smart Grid, Renewable Energy and Load dispatch in which a large number
of exhibitors showcased their state-of-the-art products in the field of
transmission, distribution, grid management, and smart grid. one of the
distinct features of the exhibition was ''Student Innovation Centre''
wherein students from a number of engineering colleges displayed their
projects mainly in the areas of Smart-Grid, Robotics, etc.
RIGHT TO INFORMATION
In order to promote transparency and accountability, an appropriate
mechanism has been set up across your Company in line with ''Right to
Information Act, 2005''. Your Company has nominated CPIo/ Appellate
Authorities at its Corporate office and Regional offices across the
country to provide required information to the citizens under the
provisions of Act.
RENEWED COMMITMENT TO TRANSPARENCY & VIGILANCE FuNCTION
Good governance plays a very significant role in building the trust of
the Stakeholders and eventually in making an organization successful
and sustainable. with this goal, your Company strives to focus mainly
on preventive Vigilance and achieve good governance by emphasising
transparency, integrity, accountability, fairness, equity and adherence
to rules, regulations and the laws of the land.
Your Company uses technology in the form of e-payments, e-billing,
e-procurement and reverse auction, e-auction, uploading of contract
documents as well as award details, vendor registration, online
tracking of bill status, online inspection Management system, etc. for
preventive action. Vendor meets have also been conducted as a step
towards confidence building of stakeholders. As part of Preventive
Vigilance, various inspections, in the form of surprise and process
online were conducted, apart from CTE type inspections. Adequate cost
compensations were effected on cases not conforming to technical
specifications or conditions of contract. A number of complaints,
received from internal as well as outside agencies, were taken up for
verification, earnestly. on the basis of investigations conducted into
these complaints, disciplinary actions, wherever appropriate, were also
initiated. The Vigilance department has, on its part, also introduced a
number of measures to inculcate good governance within the
organization. while, process on line inspection are being conducted at
the regions of works which are at a critical stage of execution, bulk
SMS are being sent to all employees regularly in order to acquaint them
with Conduct, discipline and Appeal Rules. online complaint handling
system and continuous improvement in systems and procedures are also
steps taken in the same direction. during the year FY 2013-14, the
Company continued its focus on the following spheres of functioning,
like communication of assessment to the concerned bidders,
incorporation of provision relating to conflict of interest,
installation of surveillance cameras to increase security, putting
contract evaluation rooms under IT enabled surveillance, storage of
materials at construction sites, etc.
Pursuant to vigilance observations, system improvement has been taken
up in areas such as classification for foundations of tower,
identification of safety measures to be exercised during the erection
in transmission lines, adherence to specifications & field quantity
norms and adoption of common approach for preparation of cost
estimates. Further, as a part of capacity building, your Company
conducted various workshops on Preventive Vigilance, Ethics and on the
RTI Act, both at Corporate Centre and in the Regions.
Your Company organized ''Vigilance Awareness Week 2013'', under the theme
Promoting Good Governance – Positive Contribution of Vigilance,
during which various competitions were organized for the employees as
well as for their family members. In addition, talk on ethics & values
and on anti-corruption topics were delivered by eminent personalities.
ACCOLADES & AWARDS
The excellent performance of your Company has been recognised and
appreciated by the Govt. of India and other prestigious organisations &
institutions in form of various awards/ accolades in various categories
from time to time.
Your Company has been rated ''Excellent'' for its performance as per MoU
2012-13 signed with the Ministry of Power.
Your Company also received four (4) Gold Shields and one (1) Silver
Shield under ''Comprehensive Award Scheme for recognizing meritorious
performance in Power Sector'' for Transmission System Availability and
Early Completion of Transmission Projects for the year 2011-12 and
2012-13 from Ministry of Power.
Your Company was also conferred Award for Corporate HR Excellence in
Power Sector by 7th ENERTIA Awards 2013, for being India''s best place
to work for Power Professionals and Power Engineers and e-India PSE
2013 Award for its online Human Resource development Management
Your Company was conferred the Power Line Award 2013 for being the
''Best Performing Transmission Company''.
Your Company was bestowed with Top Infrastructure Company under the
category ''Power Transmission'' by dun & Bradstreet.
during the year 2013, your Chairman & Managing director was ranked in
''2013-All Asia executive Team – Best CEos'' by ''Institutional
Investors'', a highly rated North American magazine on international
financial market matters.
Your CMd has also been conferred with the Eminent Electrical Engineer
Award by the Institution of Engineers (India), the largest
professional body of Engineers in India.
Your Company has won the runners-up trophy of National Championship of
Business Management Simulations - 2013 conducted by All India
Management Association (AIMA) and represented India in the Asian
MANAGEMENT DISCuSSION AND ANALYSIS
In addition to the issues in the directors'' Report, some issues have
been brought out in report on Management discussion and Analysis placed
at Annexure-I of this Report.
BUSINESS RESPONSIBILITY REPORT
The Business Responsibility Report as stipulated under Clause 55 of the
Listing Agreement with the Stock Exchanges is given in Annexure-II and
forms part of the Annual Report.
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-III 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 conversation of energy, technology absorption
and foreign exchange earnings and outgo, information is given in
Annexure-IV to this Report.
COMPTROLLER AND AUDITOR GENERAL''S COMMENTS
Company has received ''NIL'' comments on the accounts for the year ended
March 31, 2014 by the Comptroller and Auditor General of India under
Section 619(4) of the Companies Act, 1956. Copy of the same 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, 2014 from M/s Chandrasekaran &
Associates, Practising Company Secretary. Their Report forms part of
this Annual Report (Annexure-VIII).
STATEMENT PURSUANT TO SECTION 212 OF THE COMPANIES ACT, 1956.
The statement pursuant to Section 212 of the Companies Act, 1956
relating to Subsidiary Companies forming part of this Report is given
STATUTORY AUDITORS OF THE COMPANY
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 2013-14.
COST AUDITORS OF THE COMPANY
Your Company appointed M/s. K. G. Goyal & Associates and M/s. S. C.
Mohanty & Associates 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
2013-14 with the Cost Audit Branch, Ministry of Company Affairs is
September 30, 2014 and the same will be filed within the stipulated
Your Company''s composition of Board of directors underwent some changes
during the year 2013-14. Shri Rakesh Jain, JS&FA, MoP, and Smt. Rita
Acharya ceased to be directors on the Board of the Company w.e.f. July
08, 2013 and February 28, 2014, respectively. The Board wishes to place
on record its deep appreciation and gratitude for the significant
contribution and support to the Company extended by Shri Rakesh Jain
and Smt. Rita Acharya during their tenure as director of the Company.
Dr. Pradeep Kumar, Joint Secretary & Financial Advisor (JS&FA),
Ministry of Power (MoP) was appointed on the Board w.e.f. September 10,
2013 and Smt. Jyoti Arora Joint Secretary (Transmission) was appointed
on the Board w.e.f. March 20, 2014.
In accordance with the provisions of Section 152 of the Companies Act,
2013 read with Article 31 (iii) of the Articles of Association of the
Company, Shri R.T. Agarwal, director (Finance) and Shri I.S. Jha,
director (Projects) 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 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 con cerned 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 of the Corporation
during the year under review would not have been possible.
Board''s special appreciation and thanks are to our valued customers,
State Governments and State power utilities and other clients, who have
awarded various consulting 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 national/ international
financial institutions/ multilateral Financial Institutions (The world
Bank & Asian development Bank)/ Banks/ national (ICRA & CRISIL) &
international (Standard & Poor and Fitch) credit rating agencies for
their assist ance, continued trust and confidence reposed by them on
On behalf of Board of directors, I would like to place on record our
deep appreciation of the dedicated efforts and valuable services
rendered by the members of the POWERGRID Family in the Company''s
achievements during the year 2013-14. I would also like to thank the
Executive team for their strong leadership, the employee unions for
their support and all our employees for their commitment and enthusiasm
to achieve our aim to be the world''s premier transmission utility.
For and on behalf of the Board of directors
(R. N. Nayak)
Chairman & Managing Director
Place: New Delhi
Date : 04.08.2014