To, Dear Shareholders,
Ladies & Gentlemen,
The am delighted to present on behalf of the Board of Directors, the
26th Annual Report on the performance of your Company during the
financial year ending March 31, 2015 together with Audited Financial
Statement, Auditors'' Report and Review of the Accounts by the
Comptroller and Auditor General of India for the review period.
Financial year 2014-15 marked the completion of 25 glorious years of
your Company. In this ''Silver Jubilee'' year, it maintained its growth
momentum and saw a number of splendid achievements on all fronts.
In the area of project execution, your Company recorded a
capitalization of Rs. 21,760 Crore, which is the highest ever in a
single financial year of its history. The Company''s meritorious
performance and continuous thrust on commissioning of transmission
assets has resulted in higher revenue & earnings, thereby added value
for its stakeholders. The successful addition of transmission assets
has facilitated seamless power transfer in the Country. A strong and
highly integrated inter-State transmission system has enabled
development of the vibrant power market and provided momentum to growth
of the power sector.
Your Company commenced implementation of Green Energy Corridors across
the Country, giving boost to renewable generation by facilitating its
integration with the National Grid, displaying the Company''s efforts
towards realization of sustainable and inclusive growth. In the area of
operational excellence, ''National Transmission Asset Management Centre
(NTAMC)'' and ''Enterprise Resource Planning (ERP)'' have been
operationalized. These state-of-the-art technological advances have
enabled increased transparency & efficiency in asset management and
facilitated remote visibility & operation of POWERGRID''s transmission
system established across the Country.
Your Company has been given ''Navratna'' status by Govt. of India and it
continued to display Excellent performance by exceeding most of the
targets under the ''Memorandum of Understanding (MoU) signed with
Ministry of Power (MoP), Government of India for FY 2014-15''. Based on
its performance against the MoU targets, the Company is poised to be
rated ''Excellent'' for the year 2014-15, thereby maintaining the record
of the getting ''Excellent'' rating year after year over two decades
since signing of its first Moll.
Major achievements by your Company on various fronts are mentioned
- Capital investment of Rs. 22,456 Crore
- Assets capitalization of about Rs. 21,760 Crore.
- Commissioned new transmission assets comprising about 8,830 circuit
kilometre (ckm) of Extra High Voltage (EHV) transmission lines, 8 new
sub-stations and 25,786 Mega Volt Ampere (MVA) transformation capacity.
- Investment approval accorded for 33 new transmission projects worth
more than Rs. 25,500 Crore.
- Maintained transmission system availability at 99.87% with number of
trippings per line limited at 0.53 for the year.
- During the year, a number of large projects were commissioned
including important elements, viz. 765 kV D/C Wardha-Aurangabad lines 1
& 2, 765 kV D/C Raipur-Wardha & 765kV Champa-Raipur lines for
evacuation of power from IPP Projects in Chhattisgarh, 765 kV D/C
Nellore-Kurnool, 765kV D/C Kurnool-Thiruvalam for Southern Region Grid
Strengthening, 765kV 2xS/C Angul-Jharsuguda 765kV D/C Jharsuguda-
Dharamjaygarh and 765kV S/C Satna-Gwalior-II lines.
- During the year, inter-regional power transfer capacity of 4,200 MW
has been added by the Company. The cumulative inter-regional power
transfer capacity of the National Grid stood at about 46,450 MW at the
end of March, 2015.
(Figures in Rs. Crore, except per share data)
Description 2014-15 2013-14 Y-o-Y Growth
Transmission Charges 16,521 14,327 15.3%
Consultancy-Sale of Services 381 333 14.4%
Consultancy-Sale of Products 0 294 -
Telecom 275 276 -0.4%
Other Income 603 491 22.8%
Total Income 17,780 15,721 13.1%
EBIDTA 15,354 13,427 14.4%
Profit After Tax (PAT) 4,979 4,497 10.7%
Earnings per Share (Rs.) 9.52 9.36 1.7%
Book Value per Share (Rs.) 72.71 65.78 10.5%
Gross Fixed Assets 118,264 96,504 22.5%
Long term borrowing* 93,845 80,470 16.6%
Net Worth 38,037 34,413 10.5%
Debt Equity Ratio 71:29 70:30 -
- including current maturities of long term borrowings
As on April 1, 2015, the transmission assets owned and operated by your
Company stand 115,637 ckm. of Extra High Voltage (EHV) transmission
lines and 192 nos. EHVAC & High Voltage Direct Current (HVDC)
sub-stations with 231,709 MVA transformation capacity.
Managing such widely spread assets across the Country has been an
extraordinary task involving meticulous planning and observing
stringent procedures. Maintenance activities are planned well in
advance and an Annual Maintenance Plan is chalked out for every asset
through live line or shutdown maintenance, as per technical
feasibility. In the event of tower damage due to natural calamities or
otherwise, Emergency Restoration System (ERS) is being used for
restoration of damaged transmission towers in shortest possible time.
Further, POWERGRID has taken initiative for development of mobile
sub-station (truck mounted) for emergency restoration in case of
In spite of the challenging conditions, during the FY 2014-15, your
Company maintained availability of the transmission network at 99.87%
which is comparable to international standards. The number of tripping
per line (unplanned) stood at 0.53 for the year, indicating high
reliability of POWERGRID transmission system. This performance could be
maintained through training, deployment of advanced techniques
including use of helicopters for live line aerial patrolling, hot line
maintenance upto 765 kV voltage level, equipment conditioning
monitoring including dynamic testing, thermo-vision scanning, frequency
response analysis of the transformers and reactor''s etc.
With rapid increase in asset base of your Company, urgent need was felt
to provide expert handling to the equipment spread all across the
Country. In view of this, National Transmission Asset Management Centre
(NTAMC) has been established for remote operation and monitoring of the
substations, which is manned by experts on 24X7 basis to provide expert
handling to system & equipment. The project constitutes of three
distinct areas such as SCADA (Supervisory Control and Data Acquisition
System), for gathering of electrical data & control of the switchgear
of sub-station, RAS (Remote Accessibility System) and VMS (Video
Monitoring System) which can be remotely controlled from the NTAMC and
which is used to keep a close watch on the substation switch yard & its
At the end of FY 2014-15, 75 substations are being operated through
remote operation including 44 substations without operating staff. MSH
(Maintenance Service Hub) facility has been established where
specialised group of experts of all areas like control & protection,
switchyard equipment, transformer & reactor are available to carry out
repair/overhauling of equipment as & when required.
International Benchmarking of POWERGRID O&M practices
In order to improve further, POWERGRID O&M practices are regularly
being benchmarked internationally through International Transmission
Operation and Maintenance Study (ITOMS) carried out by UMS, USA. In
ITOMS studies/ benchmarking, about 28 large Power Transmission
Utilities across the Globe participate and their performances are
evaluated and benchmarked. POWERGRID carried out benchmarking of all
its 9 Regions with each other and with other member Utilities of ITOMS
to identify areas of improvement. As per ITOMS benchmarking, your
Company has been maintaining high performance in its sub-stations &
transmission lines operations.
Being a sound customer centric organisation, your Company has been
contributing in restoration of power in areas hit by natural calamities
in the Country. This was evident when the State of Jammu & Kashmir
(J&K) saw the devastating flood in its history of last 60 years,
disrupting the electricity supply in most of the areas of the State.
For quick restoration of power in the State, your Company took charge
as Nodal Agency to assist J&K Power Department by taking immediate
measures such as deployment of manpower, tools & tackles for
restoration of flood affected distribution system, diversion of the
material to J&K from far-flung States, deployment of Emergency
Restoration System (ERS), quick procurement of Distribution
Yet again, when unseasonal torrential rainfall caused flood like
situation in the State of J&K, landslides were reported at various
places and tower collapse was reported in 132 kV Salal-Jammu
transmission line. Immediate dispatch of ERS was arranged and erection
carried out in a very short time.
Similarly in Andhra Pradesh in October, 2014, after cyclone ''HUDHUD'',
support was provided to restore power in the affected areas of three
(3) districts, namely Vishakhapatnam, Srikakulam & Vijayanagaram.
Wide-spread damage in these three districts had taken place on account
of tripping of lines connecting to the area from Khammam, Vijayawada,
Vemagiri, in AP and 400kV in feed from Jeypore ( Odisha).
Approximately, 1000MW load had crashed due to failure of downstream
sub-transmission & distribution network of AP Transco & Discoms in
above three districts. Besides, towers collapse was reported in a
number of 400KV & 220KV transmission lines in the area and number of
bay equipment at 400kV Gazuwaka (POWERGPJD), Simhadri (NTPC) & Kalpaka
(APTRANSCO) were also damaged. A team comprising senior officials was
sent to site immediately to restore the damaged system. Restoration of
distribution system was also carried out.
Your Company''s actions have been lauded by everyone including media and
Government, which has further boosted the determination to be ready to
face such calamities.
Your Company has been putting continuous thrust on commissioning of its
transmission projects to extract maximum commercial benefits through
its Integrated Project Management and Control System (IPMCS).
On project implementation front, your Company has commissioned about
8,830 ckm of EHV (Extra High Voltage) transmission lines and 25,786 MVA
transformation capacity with 8 new sub-stations during the year, which
includes a number of large projects, including important elements such
as 765 kV D/C Wardha-Aurangabad lines 1 & 2, 765 kV D/C Raipur-Wardha &
765kV Champa-Raipur lines for evacuation of power from IPP Projects in
Chhattisgarh, 765 kV D/C Nellore-Kurnool, 765kV D/C Kurnool-Thiruvalam
for Southern Region Grid Strengthening, 765kV S/C Satna-Gwalior-II &
765kV 2xS/C Angul-Jharsuguda transmission lines. Also, through
commissioning of 765kV D/C Jharsuguda- Dharamjaygarh line, 4,200 MW
inter-regional power transfer capacity has been added by your Company.
Also, your company has provided active support in the completion of
critical 765kV Raichur-Solapur circuit-2 transmission line, which was
being implemented through Private Sector participation.
In the FY 2014-15, your Company continued to show exceptional
performance in all its business areas, enhancing the value for the
shareholders. Your Company has achieved turnover of Rs. 17,780 Crore
and Profit after Tax (PAT) of Rs. 4,979 Crore as compared to Rs. 15,721
Crore and Rs. 4,497 Crore respectively during FY 2013-14 on standalone
On consolidated basis, PAT crossed the Rs. 5000 crore mark, registering
at Rs. 5046 crore in FY 2014-15. The turnover on consolidated basis
increased to Rs. 18233 crore from Rs. 16146 crore in FY 2013-14.
Capital Investment and Fund Mobilization
In line with its increased target of Rs. 1,10,000 Crore from Rs.
1,00,000 crore capital expenditure target for the XII Plan, Capital
investment (CAPEX) of Rs. 22,456 Crore has been made during the year
2014-15 and cumulatively Rs. 65,651 Crore CAPEX has been achieved. For
the CAPEX of FY 2014- 15, Rs. 13,014 Crore were mobilised through
private placement of bonds & term loan, Rs. 3,070 Crore were mobilised
through External Commercial Borrowings (ECB)/Suppler credit and balance
Rs.6372 crore was met through internal resources generated & FPO
For FY 2014-15, your Company has proposed a final dividend of Rs. 1.31
per share in addition to Rs. 0.69 per share of interim dividend paid
in March, 2015. 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. 1,046 Crore (including an interim dividend of Rs.
Particulars of loans, Guarantees or investments.
Loans, Guarantees or investments under Section 186 of the Companies
Act, 2013 form part of the notes to the financial statements provided
in this Annual report.
Particulars of contracts or arrangements with related parties
Particulars of contracts or arrangements with related parties referred
to in Section 188 (1) of the Companies Act, 2013, in the prescribed
Form AOC-2, are given as Annexure X of the Directors'' Report. Further,
attention of the members is drawn on Note No. 2.47 of the Financial
Statement which sets out related party disclosure.
Transfer to Reserves
Your company has proposed to transfer Rs. 2400.00 crore to the general
reserve and an amount Rs. 1763.00 crore to other reserves.
Statement containing salient features of financial statements of
subsidiaries, associate and Joint Ventures Companies
Statement containing salient features of financial statements of
subsidiaries, associate and Joint Ventures Companies as required under
Section 129 (3) of the Companies Act, 2013, in the prescribed Form
AOC-1, is given as Annexure XI to the Director''s Report.
Consolidated Financial Statement
As per the requirements of the Companies Act, 2013, the Audited
Consolidated Financial Statement is provided in the Annual Report.
DIRECTORS'' RESPONSIBILITY STATEMENT
As required u/s 134 (3)(c) & 134 (5) of the Companies Act, 2013, your
Directors confirm that:
(a) in the preparation of the annual accounts, the applicable
accounting standards had been followed along with proper explanation
relating to material departures;
(b) the Directors had 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;
(c) the Directors had taken proper and sufficient care for the
maintenance of adequate accounting records in accordance with the
provisions of this Act for safeguarding the assets of the Company and
for preventing and detecting fraud and other irregularities;
(d) the Directors had prepared the Annual Accounts on a going concern
(e) the Directors, had laid down internal financial controls to be
followed by the Company and that such internal financial controls are
adequate and were operating effectively.
(f) the directors had devised proper systems to ensure compliance with
the provisions of all applicable laws and that such systems were
adequate and operating effectively.
As per Central Electrical 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 entrusted
the responsibility for billing, collection & disbursement of
transmission charges bills on behalf of all Inter-State Transmission
System (ISTS) Licensees. In this regard, bills on transmission charges
are prepared, raised and uploaded on the website portal for Designated
ISTS Customers (DICs), including the payment details by the customers.
Your Company is fulfilling the assigned responsibilities effectively
and displayed excellent collection efficiency of 97%.
PERFORMANCE AGAINST COMPETITION
Your Company is able to do well in spite of stiff competition and
displayed impressive performance under Tariff Based Competitive Bidding
(TBCB). During the year FY 2014-15, your Company won three out of four
projects put up for bidding under the TBCB route, namely Transmission
System Strengthening associated with Vindhyachal-V, Transmission System
associated with Gadarwara STPS (2X800 MW) of NTPC Part-A and
Transmission System associated with Gadarwara STPS (2X800 MW) of NTPC
Part-B. As on 31.3.2015, your Company has won total eight (8) projects
through TBCB since its participation.
DEVELOPMENT OF NATIONAL GRID
A strong National Grid enables seamless power flow across the regions
and optimum utilization of resources across the Country. Working in
this direction, your Company successfully achieved ''One Nation-One
Grid-One Frequency'' in the year 2013-14. During the year under
consideration, the Company commissioned 765kV D/c
Jharsuguda-Dharamjaygarh transmission line, increasing the power
transfer capacity between Eastern Region and Western Region by 4,200MW.
As a result, the total inter-regional power transfer capacity of the
National Grid stands at 46,450 MW as on March 31, 2015. Also to
increase the inter-regional power transfer capacity of the National
Grid, your Company is executing a number of projects, some of which
include high capacity HVDC links. By the end of XII Five Year Plan, it
is expected that the inter-regional power transfer capacity of the
National Grid will be about 72,250 MW.
GRID MANAGEMENT AND OPEN ACCESS
Power System Operation Corporation Limited (POSOCO), a fully owned
subsidiary of your Company, has been managing the national grid
successfully. POSOCO, through National Load Despatch Centre (NLDC) and
Regional Load Despatch Centres (RLDCs) has been facilitating transfer
of power through bilateral and multi-lateral transactions and is
playing important role for creating vibrant electricity market in the
Country. POSOCO has been designated as the nodal agency for Renewable
Energy Certificate (REC) Mechanism, transmission pricing, Short Term
Open Access (STOA) in transmission, Deviation Settlement Mechanism,
Power System Development Fund (PSDF) management, etc.
During FY 2014-15, to meet the demands in the Country, about 84.36
Billion Units (BUs) of inter-regional energy transfer was facilitated,
across the nation using pan-India inter-regional transmission links.
Under Short Term Open Access (STOA), 12,106 nos. of bilateral
transactions and 25,942 nos. of collective transaction were approved,
allowing energy transfer of 52.55 BUs through bilateral transactions
and 28.38 BUs through collective transactions, totaling up to 38,048
approved transactions and 80.93 BUs of approved energy in the FY
Further, your Company, as Central Transmission Utility (CTU), is the
nodal agency for processing & grant of Connectivity, Long Term Access
(LTA) and Medium Term Open Access (MTOA) to various applicants. Out of
209 Connectivity applications for about 2,10,000 MW capacity received,
Connectivity was granted to 90 numbers. of eligible applications of
77,600 MW capacity. As on March 31, 2015, the Company granted LTA to
201 applications of 152,000 MW capacity. Also based on the transmission
margins availability, the MTOA was granted to 76 numbers. of
applications of 5,100 MW capacity.
With the present state of economy & financial issues, the manufacturers
are facing tough competition from indigenous as well as international
manufacturers. To ensure quality while procuring goods at competitive
prices, various quality assurance improvement measures have been
initiated and implemented to get better quality products.
Process/surveillance audits were carried out to create win-win
partnership with suppliers and to get better quality products at low
With vast geographical spread of work & large number of high capacity
transmission lines and sub-stations with state-of-Art technology under
implementation, capacity building is one of the major challenges. In
this direction, your Company has established its ''POWERGRID Academy of
Leadership'' at Manesar for capacity building of its staff as well as
for power sector-domestic & international. Further, to have
self-reliance of indigenous development of High technology / critical
products, your Company has mandated its international suppliers to set
up manufacturing facilities in India in the field of 765kV
Transformer/Reactors, 800kV HVDC equipment, GIS & major equipment, etc.
Your Company continues to do process audits in the manufacturing units
of various vendors, sub-vendors & even further below in supply chain to
achieve the target of zero product inspection. Activities like
calibration of key testing instruments & their validation were
undertaken on topmost priority so as to improve quality systems at the
manufacturer''s works. Quality audits at sites were also undertaken
during the year for instant feedback and to take appropriate corrective
action apart from web based feedback system.
In order to ensure quality of product with required technical
specifications and to meet project completion target, a number of
activities have been undertaken by your Company like defining proper
processes for quality manufacturing, quick approval of quality plan of
various items and smart inspection of materials. For on time issue of
CIP (Customer Inspection Points) /MICC (Material Inspection Clearance
Certificate), testing and manufacturing of various critical items,
continuous follow up with manufacturers were undertaken.
Another milestone was achieved during the year when two of the Regional
Offices of POWERGPJD, i.e. Nagpur (Western Region-I) & Shillong
(North-East Region) were awarded certification for their Energy
Management Systems under ISO 50001.
Your Company developed and maintained systems and 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 upon rigorous audits by
BSI Management Systems.
Your company gives priority to research and development activities with
potential for environmental, social and national interests by
incorporating advanced technology solutions in the field of power
system. In this direction, your company is setting up State-of-the-Art
research and testing laboratories POWERGRID Advanced Research and
Technology Centre at Manesar in the field of transmission, renewable
integration, power system simulation, material science, advanced
equipment diagnostics, smart grid, energy efficiency, control and
automation, engineering design etc. This R&D centre shall cater to the
research needs of POWERGRID and the country as a whole as well as
capacity building of various stakeholders in this field.
The focus areas in development of transmission system across the
country and trans-country as well are conserving the Right of Way
(RoW), minimizing impact on natural resources, indigenization of
technology and maintaining high network availability. To address these
aspects, your company has developed new type of tower design including
multi circuit type, digital substation through process bus
architecture, air core reactor suitable for HVDC terminal etc.
Further, your Company as a part of its technology development process
is carrying out a demonstration project on High Temperature
Superconductor (HTS) cable system at 220kV voltage level. Being a
technology in its development and demonstration stage worldwide, which
is known for bulk power transmission with negligible losses on reduced
right-of-way, the first-hand experience gained from this R&D project
will boost your company''s thrust towards adoption of cutting edge
technologies for safe, secure and reliable operation of grid. The
operational experience and maintenance know-how gained from the project
will pave way for future deployment of this state-of-the art technology
in Indian grid.
Your company is considering a pilot project on Fault Current Limiter.
The search for a solution to address the issue of rising fault current
levels in Indian grid and at the same time which doesn''t affect the
reliable operation of the grid leads your company to advanced fault
current limiters. These Fault Current Limiters offer a promising
solution to tackle the rising fault levels with its unique features in
comparison to conventional methods for fault current limitation viz.
bus splitting, series reactors etc.
Towards maintaining high network availability by maintaining proper
insulation level of EHV transmission line, pollution measurements on
pan India basis is being carried out to create base line pollution
mapping data facilitating review of EHV lines insulation requirement
which is first of its kind in the country.
SMART GRID TECHNOLOGY
Your company has pioneered for development of Smart Grid leading
towards Smart City in the country for bringing efficiency encompassing
entire power supply value chain.
Your company is implementing one of the world''s largest Wide Area
Measurement System(WAMS) through deployment of State-of-the- Art Phasor
Measurement Units(PMU) as part of Smart transmission. It covers
deployment of PMUs at all 400kV and above substations at State and
Central level as well as generation switchyards of 220kV & above across
the country as part of Unified Real Time Dynamic State
Measurement(URTDSM) scheme. Real time measured system information using
fibre optic communication network are to be integrated at State Load
Despatch Centres(SLDC), Regional Load Despatch Centres (RLDC) and
National Load Despatch Centre(NLDC) for improved visualization and
enhanced situational awareness of system operators and planners.
Analytics using above data are being developed in association with IIT,
Bombay to enhance the efficiency & security of the overall grid
Towards smart distribution, after demonstration of various Smart Grid
attributes at Puducherry in a comprehensive manner through open
collaboration, your company is also extending services for
implementation of Smart Grid projects in various states like Himachal
Pradesh, Punjab, West Bengal, Tripura, Chhattisgarh, Rajasthan,
Haryana, Karnataka and Puducherry. Your company has also submitted
project report to Govt. of Haryana on development of smart grid
leading towards smart city Gurgaon to provide 24x7 quality power
including catering growing demand and make Gurgaon Diesel generator set
Towards facilitating increasing penetration of renewables in the
overall generation capacity portfolio, your company has pioneered in
implementation of battery energy storage systems of about 1 MW capacity
as pilot project in Puducherry to evaluate different battery and its
control technologies for proof of concept, areas of application, policy
advocacy etc. in Indian context for large scale deployment.
Quality of power is one of the major concerns now in India for
performance improvement of process and maintaining health of electrical
network equipment. Recognizing its importance, your company has taken
initiative to measure various power quality parameters at different
cities on pan India at all voltage level to create base line data
repository for identification of mitigating measures and application of
technological solutions. Already measurements at more than 150
cities/towns completed across the country.
Your company is indigenously developing/developed smart products like
smart meter, data concentrator unit, home energy management system,
micro grid controller, active power filter etc. for varied applications
and applied for patent.
To bring awareness about Smart Grid technologies and its demonstration
in a holistic manner, your company is establishing a Smart Grid
Knowledge Center equipped with working model of various technologies at
POWERGRID Advance Research and Technology Centre (PART) at Manesar.
This shall facilitate dissemination of knowledge on smart grid
technologies in a learning environment as well as capacity building of
utility/consumer and other stakeholders.
Your company also operates Secretariat of the prestigious India Smart
Grid Task Force(ISGTF) of Ministry of Power, Govt. of India for
activities related to Smart Grid.
GRID INTEGRATION OF RENEWABLE ENERGY SOURCES
Integration of Renewable Energy(RE) sources into the grid is one of the
top priority of Govt. of India towards energy security and
environmental sustainability. In this direction, your company has
evolved Green Energy Corridors comprising intra state and inter state
transmission infrastructure to facilitate integration of envisaged
renewable capacity addition of about 33 GW in 12th plan in RE resource
rich states at an estimated cost of about Rs. 38,000 cr. Inter State
Transmission System(ISTS) as part of Green Energy Corridors is being
implemented by your company. Further, your company has also evolved
transmission schemes for integration of proposed ultra mega solar power
parks of about 22,000MW in various states as part of Green Energy
Corridors-II. Govt. of India also assigned your company to develop
Inter State transmission system for nine(9) solar parks of capacity
about 10,000 MW in seven(7) states. Implementation of transmission
scheme for one(1) solar park in Andhra Pradesh is under progress.
Energy conservation through energy efficiency measures plays an
important role to address energy saving aspect towards sustainability.
Your company initiated activities in identification of energy saving
opportunities through carrying out energy audits of various industries
including Integrated Steel Plant at Bokaro & Bhilai, SAIL, institutions
and other commercial establishments. Your company has more than 70
Bureau of Energy Efficiency (BEE) certified Energy Auditors/Managers.
So far through energy audits, energy saving potential equivalent to
4750 MU with avoidable generation of about 900MW has been identified
besides reduction in C02 emission. Towards demand side management, your
company replaced 1337 old agricultural pumps with energy efficient
pumps in Mandya district, Karnataka resulted into energy saving more
than 35% with about 3MW load reduction.
Your company is also a BEE Grade-I Energy Service Company (ESCO) to
implement energy efficiency solutions. In-house designed Waste heat
recovery systems for steel re-rolling mills and implemented at various
Your Company has released a study report Negawatt Makes-a-Watt i.e,
Energy efficiency opportunities in India covering eighteen(18) energy
intensive sectors in the country. Savings more than 20% in electrical
energy, 12% in Coal and 7% in oil can be achieved per annum at an
investment of Rs.12 lakh crore over a period of 5 years.
''POWERTEL'' - TELECOM SERVICES ON TRANSMISSION INFRASTUCTURE
Your Company is leveraging its Country wide transmission infrastructure
with its diversified business portfolio of Telecom under the brand name
''POWERTEL''. During the FY 2014-15, total network coverage has been
increased by 12% to 33,241 kms from the earlier reach of 29,641 kms.
Number of Points of Presence (PoPs) locations have been increased to
352 from the earlier coverage of 317 PoPs and 44 new customers were
added, resulting in increase in total customer base to 187 numbers and
a growth of 25% over previous year.
Telecom Backbone Availability for the year 2014-15 was 99.97% better
than in the previous year. Total Revenue (including revenue from
internal sources) from Telecom Business for FY 2014-15 was Rs. 300.95
Crore as against Rs. 288.21 Crore in the previous year.
Your Company has signed an agreement with Bharat Sanchar Nigam Limited
(BSNL) to improve the telecommunication connectivity with the
North-Eastern States including Sikkim. It envisages the provisioning of
bandwidth on optical fibre media laid over existing high tension
electric transmission network of your Company. After completion of the
proposed connectivity, the reliability of the telecom services shall
improve substantially in North-Eastern region including Sikkim. Your
Company has successfully completed the prestigious NKN (National
Knowledge Network) project assigned by Govt. of India, which connects
all knowledge centres across the Country such as Indian Institutes of
Technology (IITs), Indian Institute of Sciences (IISCs) etc., on a high
National Optical Fibre Network (NOFN)
As a part of Government of India plan to connect 250,000 Gram
Panchayats (GP) in the Country by utilizing existing fibres of PSUs
(BSNL, Railtel and POWERGRID) and laying incremental fibre to connect
to Gram Panchayats wherever necessary, Your Company has been allotted
work for development & maintenance of NOFN network in States viz.
Telangana, Himachal Pradesh, Jharkhand & Odisha by Bharat Broadband
Network Ltd (BBNL). Survey work has been completed in all states.
Awards have been placed progressively for supply of duct & accessories
and trenching & laying work. 977 nos of Gram Panchayats have been
connected with fibre till 31st March 2015.
BUSINESS DEVELOPMENT & CONSULTANCY
Your Company, one among the largest power transmission utility in the
world, has developed the expertise in its core areas such as power
transmission, sub-transmission, load dispatch and communications (LD&C)
Leveraging its capacity and experience, Consulting services have been
provided to a number of customers in India and worldwide. During FY
2014-15, forty (40) Consultancy assignments were secured. During the
fiscal 2015, the Company achieved Consultancy Revenue ofRs. 381 Crore
from Consulting services.
Keeping its commitment to assist State Utilities for an inclusive,
healthy and sustainable growth, your Company undertook a number of
assignments on behalf of Utilities and other clients covering areas of
Transmission, Sub-transmission, Distribution, Load Dispatch &
Telecommunication, Smart Grid application, Energy Efficiency, HR
Management and Development etc. Major Assignments include Comprehensive
Scheme for Strengthening of Transmission & Distribution System in
Arunachal Pradesh & Sikkim (Estimated project cost of Rs. 4209 Crore),
Strengthening of 400 kV & 220 kV Transmission System of Delhi Transco
Ltd (Estimated project cost of Rs. 932 Crore) and Srinagar - Leh
Transmission System (Estimated project Cost ofRs. 1788.41 Crore).
In order to expand consultancy market even farther, exploratory forays
are being persistently charted out in Oil sector, Railways, Industrial
Corridors, etc. which are likely to bear fruit in near future.
Some of the engagements in green-shoot areas like Smart Grid /
Non-conventional Renewable Energy and Energy Efficiency initiated by
the Company also have potential opportunities to contribute towards
income from consulting services.
Your Company secured a total of 10 assignments with consulting fee of
about Rs. 3,700 Lakhs during FY 2014-15, in international arena. Your
Company has now international presence in a number of countries of
Asia, Africa & Eurasia regions. Countries in which consulting services
are being provided include in Afghanistan, Bangladesh, Bhutan, Congo,
Ethiopia, Nigeria, Nepal, Kazakhstan, Kenya, Kyrgyz Republic, Myanmar,
Senegal, Tajikistan, Tanzania, Uzbekistan etc.
During the FY 2014-15, your Company successfully completed the contract
worth USD 64.01 million awarded by Myanmar Electric Power Enterprise
(MEPE), within time schedule, for supply of Goods and related Services
for 230kV Transmission System associated with Thahtay Chaung Hydro
Power Project in Myanmar.
The proposed cross-country grid is being envisaged for harnessing SAARC
nations'' capacities and resources to address growing energy needs of
the region. Presently, India has interconnections with Nepal, Bhutan
and Bangladesh, which are being strengthened for mutual exchange of
power. With these interconnections, while the county imports around
1,500 Megawatt (MW) of power from Bhutan, it exports around 500 MW
power to Bangladesh and 150 MW power to Nepal.
Further, for evacuation of power from various upcoming hydroelectric
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 ready by
2017. 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. Further, to augment the
power transfer capacity of India - Bangladesh asynchronous
interconnection through 400kV (charged at 132kV) Surajyamaninagar
(India) - Comilla (South) (Bangladesh) line, addition of another 500MW
power terminal module at Bheramara is being firmed up, which will
increase the power transfer capability between the two nations by
500MW. For interconnection between India and Sri Lanka through a
±400kV, 500/1000MW under-sea HVDC line, feasibility studies carried out
and reports under review. Discussion for interconnection between India
and Pakistan through Amritsar (India) - Lahore (Pakistan) line are
being held at Government level.
CONTRIBUTION IN DISTRIBUTION REFORMS
Under DDUGJY (Deendayal Upadhyaya Gram Jyoti Yojana) scheme (including
erstwhile RGGVY) for rural electricity infrastructure and household
electrification, your Company has been executing infrastructure work
for rural electrification in sixty-seven (67) districts of nine (9)
States in the Country of a base cost of about Rs. 7,409 Crore.
Almost all of the X / XI plans schemes have been completed. Work in 4
districts in Uttar Pradesh (UP) assigned to POWERGRID under XI Plan
Phase-II and XII Plan are under implementation.
During FY 2014-15, infrastructure was created for electrification in
581 nos. of partially electrified villages. Also, 2666 nos. of villages
were energised. Cumulatively, till March, 2015, infrastructure has been
created for electrification of 71,622 villages. Further, service
connections were provided to about 35.9 lakh BPL households.
For rural electrification under DDUGJY, your Company has been engaged
for execution of projects under the XII Plan in 15 districts of Odisha
having sanction cost of about Rs. 1767 Crore and earning potential
ofRs. 159 Crore.
XII PLAN PROGRAMME
The Capex plan of your Company has been increased to Rs. 1,10,000 Crore
from Rs. 1,00,000 Crore envisaged earlier for XII Plan mainly due to
additional transmission infrastructure of various inter-State
transmission systems including Green Energy Corridors projects.
Your Company has already made a capital expenditure of Rs. 65,651 Crore
in the first three years of the plan period. Based on the ratings given
by both domestic and international credit agencies, your Company do not
foresee any difficulty for resource mobilisation. The funding for
capital expenditure are planned to be met through loans from
multilateral institutions such as The World Bank, Asian Development
Bank, Supplier''s Credit, External Commercial Borrowings through bonds /
notes, besides loans from domestic market and through private placement
ERP IMPLEMENTATION & IT
Project RUPANTAR, the Enterprise Resource Planning (ERP) initiative
of your Company has been implemented successfully in the year 2014-15.
Subsequent to completion of the User Acceptance Testing of the business
solutions, pilot Go-live of ERP took place in August 2014. After the
stabilization of the pilot region, roll out to balance regions was also
taken up and completed during October 2014 to February 2015. Presently,
majority of the key processes related to the business are running on
ERP. Also, a Disaster Recovery Site is being established at Bangalore.
Your Company continues to provide latest IT solutions for betterment of
its business process. Both Internet and Intranet have been provided in
offices and site locations all over the Country for seamless
connectivity and effective working environment. Recruitment process is
being conducted for self and for few other companies through online
application portal, which is designed, developed and maintained through
in-house expertise. Further, various applications like online status of
Swachh Bharat Abhiyaan (Clean India Mission) works, 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 a major technology upgradation of IT
infrastructure such as implementation of cloud, security policy,
Information Security Management System (ISMS), etc. Further, ISO:27001
Certification for ISMS is also being implemented initially at Corporate
Your Company has established video conferencing facilities at Corporate
Centre, all regional Headquarters, all major Project Headquarters as
well as at most of the substations. Video Conferencing is extensively
used to carry out meetings, discussions and trainings within and
outside POWERGRID network.
ENVIRONMENT AND SOCIAL MANAGEMENT
Your Company, since its inception is working to harmonise environment
conservation with all aspects of its projects. Your Company''s
activities are non-polluting in nature and their environmental impacts
are negligible. Your Company is committed to conservation of natural
resources, reducing impact on nature and increasing the service value
by use of efficient and safe technology practices.
Key initiatives taken by your Company towards sustainable development
are technological initiatives for conservation of precious Right of Way
(ROW), rain water harvesting system which is now an integral part of
every new substation design, installation of LED bulbs, solar lights,
fuel catalysts devices for DG sets etc. Your Company has substantially
reduced the land requirement by utilizing new technology like Gas
Insulated Substation (GIS) which requires less than one-third (1/3rd)
of the land compared to conventional Air insulated Substation (AIS). In
order to reduce Carbon footprint, waste paper are used to produce
recycled paper for printing of our office stationery like letter heads,
writing pads, visiting cards, envelopes etc. This has resulted in
reduction in use/procurement of fresh paper.
For the FY 2014-15 your Company have obtained final forest clearance
for 29 transmission lines involving 34 forest proposals involving
diversion of about 1760 hectares and in-principle forest clearance for
22 transmission lines involving 32 forest proposals for diversion of
about 1680 hectares. Some of the major lines for which such forest
clearances are obtained include 765 kV Angul-Jharsuguda, 400 kV D/C
Dehradun- Abdullapur, 132 kV S/C Tezu-Namsai, 765 kV D/C
CORPORATE SOCIAL RESPONSIBILITY
Corporate Social Responsibility (CSR) is a commitment of your Company
to its stakeholders to conduct business in an economically, socially
and environmentally sustainable manner that is transparent and ethical.
It primarily focuses on inclusive social-economic growth for
development of marginalized and under-privileged sections of the
society residing around its areas of operation. With this approach,
your Company carries out various CSR activities with thrust on Rural
Development/Infrastructural Development, Livelihood Generation, Health,
Education, Tree plantation, Environmental, Relief/Restoration during
National Calamities etc.
During the FY 2014-15, your Company spent Rs. 47.42 Crore on various
CSR activities, which was 75% higher than amount spent of CSR
activities during FY 2013-14.
During the year under review, your Company has also participated in the
Swachh Bharat Abhiyaan by constructing about 10,000 toilets in about
4,500 Government schools in several states of India. It has also
undertaken Projects of imparting skill development trainings for
industry employment/ self - employment to about 7500 youths
departmentally and in association with National Skill Development
Corporation (NSDC), National Handicapped Finance and Development
Corporation (NHFDC), ITCOT etc. Your Company also distributed aids &
appliances to People with Disabilities in association with ALIMCO and
arranged Health Check-up camps at 30 locations.
Annual Report on corporate social responsibility (CSR) activities and
spend of CSR Amount is given at Annexure XII of this Report.
PEOPLE, OUR CORE STRENGTH
Attracting Talent, Nurturing & Development of Human Capital
Employees are main resources for your Organization. During FY 2014-15,
your Company inducted about 321 personnel at various levels viz.
Executives, Supervisors & Workmen. Executives recruited through open
advertisement on all India basis from reputed engineering and
management institutes. Recruitment of non-executives was carried out
through employment exchanges and local advertisement at regional level.
As on March 31, 2015, the total number of employees of your Company
stood at 9,033.
Your Company''s Human Resource Development (HRD) interventions are
directed towards learning new competencies and to reinforce good work
practices & change workplace behaviour as per the organizational needs.
The Company has been able to link the Individual Development Plans
(IDP) of employees as per the business requirement, which helps the
organization to keep updating the competencies of employees to meet
current and future requirements. In order to align with growing
competitive business environment, your Company imparted training/ hands
on training on major equipment and their operation & maintenance, new
Land Acquisition Act, Certified Project Management Programmes, latest
survey techniques, networking skills and overhead power line design
The yearly Action Plan HRD has been based on ''Organisational Need
Analysis (ONA)'' and Training Needs Assessment (TNA)''. Competency
Analysis and Skill Gap Analysis have been carried out for various
functions in your Company by keeping in view the existing/emerging
business scenario. Skill development programmes in the areas of
transmission line construction, tower erection & stringing for
unemployed / under- employed youths have been conducted at various
locations in the Country and more than 600 such youths were trained
during FY 2014-15. For conducting such trainings, necessary
infrastructure has been created in POWERGRID sub-stations.
Cumulatively, about 1600 persons have been trained up to 31.03.2015
under this initiative for enhancing the availability of skilled
manpower for construction jobs in the field of transmission.
In addition, during FY 2014-15, training has been imparted to
employees/ participants from Haryana Vidyut Prasaran Nigam Ltd.(HVPNL),
Bhakra Beas Management Board(BBMB), Powergrid Company of Bangladesh
Ltd. (PGCB), Kenya Electricity Transmission Company Limited (KETRACO),
Ceylon Electricity Board, Nepal Electricity Authority, Bhutan Power
Corporation, Tanzania Electric Supply Company Limited and US Energy
Association, under consulting services basis.
Your Company undertakes requisite changes in various policies from time
to time in line with the needs and welfare of employees. It has
empanelled various hospitals nearby to its establishments including
Corporate Centre for the healthcare of employees and their dependents.
The issues related to workmen are successfully addressed through the
National and Regional Bipartite Committee (PNBC/PRBC), a joint
consultative forum comprising management and workmen representatives.
An effective work culture has been established in the Company through
empowerment, transparency, decentralization and practice of
participative management. Industrial relations scenario in the Company
has been cordial and no man-days were lost in FY 2014-15. 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. Quality food is served to the employees in the ISO 22000:2005
conferred Cafeteria, Office and Food Lounge of Multi-Purpose hall.
Your Company also conducts various sport competitions for boosting the
interest of employees in sports and games at intra and inter-regional
level for Kabaddi, Cricket, Volleyball, and Badminton etc. Your Company
also participates regularly in Inter-PSU Sports meet and its players
stood meritorious in Table Tennis, Cricket, Carom, Badminton & Kabaddi
tournaments and bagged a number of awards.
On the occasion of Silver Jubilee Celebrations a Mini-Marathon was
organised at Corporate Centre, Gurgaon in which employees including CMD
& Directors participated with their family members enthusiastically.
Prevention of Sexual Harassment at Workplace
As per the requirement of The Sexual Harassment of Women at Workplace
(Prevention, Prohibition & Redressal) Act, 2013 (''Act'') and Rules made
thereunder, your Company has constituted Internal Complaints Committees
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
Your Company, being sensitive towards our heritage, social and cultural
concerns, continues to prove its commitment for implementation of
Official Language Policy of Govt, of India.
Your Company has been encouraging and putting all efforts for promotion
of usage of ''Hindi'' in all aspects of management in all levels of the
Corporation. Further, the Company has organized 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 Sammelans (poetry sessions), Kavita
Pratiyogita, Hindi plays and various competitions for employees & their
families are organized. Publication of Hindi magazines and circulation
of Hindi newspaper to all departments is also being done to encourage
Hindi writing and reading. To provide further inspiration, employees
are nominated for external Hindi training programs which further
educate & encourage the employees 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) have applauded the efforts made by
your Company for implementation of Rajbhasha & receiving many
Corporate Image through Communication Management
Communication Management is an important and powerful weapon for
building a strong corporate brand identity to strengthen and modify its
relationship with the internal and external stakeholders. Keeping in
mind the need for sustained, timely and bona fide communication
interventions, your Company has adopted various communication
strategies to highlight itself as a major power transmission
infrastructure giant contributing significantly towards development of
Your Company has been issuing various press communiqué to highlight
growth, achievements, and developments with a view to maintain regular
interaction with the public. Your Company organizes ''Quarterly Press &
Analysts'' Meet'' to facilitate face to face interaction with the
journalists, analysts and stakeholders which is aimed at winning the
trust of the masses through imparting information in a transparent way.
To showcase its technologies and strengths, your Company participated
in the ''India International Trade Fair (IITF) 2014'' and Vibrant
Gujarat'' targeted towards the common masses and focused clients. Your
Company also participated in other business oriented exhibitions in
Mumbai, Delhi and the Country of Tanzania to reach out to the target
audience for pitching the business.
Communication is not effective unless and until it reaches out to the
employees who are the pillar of any organization. To achieve this, your
Company deploys various internal communication tools such as monthly
newsletters, house journals, wall magazines, lounge and regular media
updates. Beside this, Company regularly organizes open house for face
to face interaction between management and employees. Company has
prepared a corporate movie to showcase its journey on the occasion of
Silver Jubilee year. A motivated theme song was also prepared for the
employees. All these communication tools have helped individual in
gaining an understanding about the organization''s culture & function
and making them a brand ambassador of the Company.
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
Vigilance Department of your Company performs Preventive, Pro-active as
well as Punitive Vigilance. However, the emphasis has been shifted from
Punitive Vigilance to Preventive and Pro-active Vigilance. Your
Company has taken a number of initiatives to inculcate good governance
within the organization. Some of these initiatives are given hereunder:
Process (Online) Inspection
Using this technique, inspections are planned in such a manner that
critical pre-award and post-award activities are inspected during
execution of works. Process (On-line) Inspection is done in order to
check whether there are any shortcomings or not, thereby providing an
opportunity for rectification of the defects before the work is
completed. Since the focus is more on prevention, critical observations
made during such inspections help the management in preventing similar
irregularities during the later stages of execution of the projects.
Web Based Vigilance Information Network System (VINS)
With a view to leverage Technology in our work, Vigilance Information
Network System (VINS) has been devised by your Company in collaboration
with the IT Department, which has significantly cut down time, efforts
and cost of working resulting into higher efficiency.
Workshop on Ethics & Values
Every year, two (2) workshops on Ethics & Values are conducted by the
Regional Vigilance Department as well as Corporate Centre. These are
aimed at encouraging value based ethical decision by the employees.
Further, Preventive Vigilance Workshops are also conducted by Vigilance
Department for non-vigilance executives. With a view to create
awareness among the employees, RTI workshops are organized by Corporate
as well as Regional Vigilance Department.
Vigilance Awareness Week 2014
Vigilance Awareness Week was observed in POWERGRID from October 27,
2014 to November 1, 2014. In keeping with the theme ''Combating
Corruption- Technology as an Enabler'', various competitions were
organized for the employees as well as for their family members, talk
on ethics & values and on anti-corruption topics were delivered by
eminent personalities. The week concluded with the release of in-house
journal of the Vigilance Department ''Candour'' by Shri Pratyush Sinha,
former Central Vigilance Commissioner.
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
2013-14 signed with the Ministry of Power and based on its performance
poised to get ''Excellent rating'' for MoU 2014-15 as well.
Your Company has been conferred with the prestigious ICSI National
Award for Excellence in Corporate Governance for 2014 by Institute of
Company Secretaries of India (ICSI) in recognition of the highest
levels of transparency and governance practices adopted by the Company.
Your Company proved its mettle on global front by positioning itself in
the Forbes List of Global 2000 Largest and Most Powerful Public
Companies, and also fastest growing electric utility in the world as
per M/s Platts (a division of McGraw-Hill Companies).
The Economic Times at its Power Focus 2nd Annual Summit awarded your
Company for its remarkable contribution in the Power Sector.
Your Company has been conferred with CBIP Award for the best
performing Transmission Utility and your CMD has been felicitated with
the Power Persona of The Year Award by CBIP in recognition of his
contribution for accelerated development of power sector.
Your CMD has also been bestowed the prestigious IEF Meritorious Energy
Director (Finance) of your Company, Shri R. T. Agarwal, has been
felicitated with the CA-CFO-Power Sector Award by the Institute of
Chartered Accountants of India in recognition of exceptional
performance as CA-CFO in Power Sector for the Year 2014.
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
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.
CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE
EARNINGS AND OUTGO
As per requirements of disclosures under Section 134(3) (m) of
Companies Act,2013 read with Rule 8 of The Companies (Accounts) Rules,
2014 information relating to conversation of energy, technology
absorption and foreign exchange earnings and outgo, is given in
Annexure-III to this Report.
The qualification in Statutory Auditors'' report and managements reply
thereto is given at Annexure - IV to this Report.
COMPTROLLER AND AUDITOR GENERAL''S COMMENTS
Company has received ''NIL'' comments on the standalone accounts for the
year ended March 31, 2015 by the Comptroller and Auditor General of
India under Section 143(5) of the Companies Act, 2013. C&AG comments on
the consolidated accounts and management''s reply thereto are attached
as Annexure-V to this Report.
The Performance Audit has been conducted by C&AG to assess the
effectiveness of ''Planning & Implementation of transmission projects by
POWERGRID during XI Plan (2007-2015) and Grid Management by POSOCO.''
The Performance Audit report was placed before the Committee on Public
Undertakings in August, 2015. The points forwarded by the Committee in
the said report have been duly replied by the management.
Composition of the Board
Your Company''s composition of Board of Directors underwent some changes
during the year 2014-15. Shri Santosh Saraf and Smt. Rita Sinha,
non-official part time directors ceased to be Directors on the Board of
the Company w.e.f. December 27, 2014. The Board wishes to place on
record its deep appreciation and gratitude for the significant
contribution and support to the Company extended by them during their
tenure as Directors of the Company.
As on 31st March, 2015, the Board comprised Twelve Directors out of
which five were whole-time Directors including the Chairman & Managing
Director, two Government nominees and five Independent Directors.
In accordance with the provisions of Section 160 of the Companies Act,
2013 read with Article 31 (iii) of the Articles of Association of the
Company, Shri Ravi P. Singh, Director (Personnel) and Shri R.P. Sasmal,
Director (Operations) shall retire by rotation at the Annual General
Meeting of your Company and being eligible, offer themselves for
Number of meetings of the Board
The details of number of Board / Committee meetings held during the
year are provided in the Report on Corporate Governance, which forms
part of this report.
Declaration by Independent Directors:
All the Independent Directors have met the requirements specified under
Section 149 (6) of the Companies Act, 2013 regarding holding the
position of ''Independent Director'' and necessary declaration from each
Independent Director under Section 149 (7) has been received.
Performance Evaluation of Directors:
The requirement of performance evaluation of directors under Section
178(2) of the Companies Act, 2013 has been done away with for
Government Companies vide Ministry of Corporate Affairs'' Notification
dt. 5th June, 2015. The Independent Directors in their separate meeting
has reviewed the work assigned to them under Schedule IV of the
Companies Act, 2013, including performance evaluation of Directors and
Further, the appointment, tenure and remuneration of Directors is
decided by the President of India. Remuneration paid to Chairman &
Managing Director and Functional Directors are as per terms and
conditions determined by the Department of Public Enterprises, Govt. of
India. Independent Directors are paid only sitting fee per Board /
Committee meeting attended. POWERGRID enters into Memorandum of
Understanding (Moll) with Ministry of Power every year wherein Company
is evaluated on various financial and non-financial parameters.
M/s Chandrasekaran & Associates, Practising Company Secretary has
conducted Secretarial Audit of the Company for the financial year ended
March 31, 2015 from. The Report forms part of this Annual Report at
The Secretarial Auditor in his report has made the following
During the period under review the Company has generally complied with
the provisions of the Act, Rules, Regulations, Guidelines, Standards,
etc. mentioned above subject to the following observations:
1. The Company has complied with the provisions of Section 149 of the
Companies Act 2013 and clause 49 of Listing Agreement except with
respect to the requirement of appointment of minimum number of
Independent Directors since 27.12.2014.
2. The Company has not filed certain e-forms relating to creation of
charges with the office of the Registrar of Companies where the
Permanent Account Number (PAN) of the lenders are not available, which
Further, the explanation given by the Board on the observation given by
the Secretarial Auditor are as under;
1. POWERGRID, being a Govt. Company within the meaning of Section 2
(45) of the Companies Act, 2013, the power to appoint Directors vests
with the President of India. The matter has already been taken up with
administrative ministry for filling two existing vacancies of
Independent Directors on the Board of POWERGRID.
2. POWERGRID could not file certain e-forms relating to charges in
MCA21, wherein the Lenders are Multilateral Agencies-World Bank, ADB
and IFC for non-availability of PAN of these Agencies. PAN is a
mandatory fill under e-filing in MCA-21.
Extract of Annual Return
In accordance with Section 134 (3) (a) of the Companies Act, 2013, the
extract of the annual return in the prescribed format in MGT-9 is given
as Annexure VII of this Report.
Committees of the Board
The Company has Audit Committee, CSR Committee and other Committees in
place. The composition and scope of the Committees are provided in the
Report on Corporate Governance.
A report on the Corporate Governance (Annexure-VIII), forming part of
this report, together with the Certificate thereon is given in
Annexure-IX to this Report.
Risk Management Policy
A Statement indicating development and implementation of a risk
management policy of the Company including major elements of risk are
given in the Management Discussion and Analysis Report at Annexure-I of
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 2014-15.
COST AUDITORS OF THE COMPANY
Your Company appointed M/s. K. G. Goyal & Associates, Cost Accountants
and M/s. R. M. Bansal & Co.,Cost Accountants as Cost Auditors for the
Financial Year (FY) 2014-15 under Section 148 of the Companies Act,
The Cost Audit Reports for the FY 2014-15 will be filed with the Cost
Audit Branch, Ministry of Company Affairs before due date i.e.
September 27, 2015.
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, Department of Public Enterprises,
Regional Power Committees, and other concerned Govt.
departments/agencies at the Central and State level as well as from
Securities and Exchange Board of India, National Stock Exchange of
India Ltd., and Bombay Stock Exchange Ltd., Mumbai without whose active
support, the achievements 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 works on consulting services basis and reposed faith in
Company''s capability to handle them. The Board also appreciates all its
the contribution of Contractors, Vendors and Consultants for successful
implementation of cvarious 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
cooperation during the year. The 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 records its appreciation 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 assistance, 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 2014-15. 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 to achieve the
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