SENSEX NIFTY
Power Grid Corporation of India Directors Report, Power Grid Corp Reports by Directors
YOU ARE HERE > MONEYCONTROL > MARKETS > POWER - GENERATION/DISTRIBUTION > DIRECTORS REPORT - Power Grid Corporation of India
Power Grid Corporation of India
BSE: 532898|NSE: POWERGRID|ISIN: INE752E01010|SECTOR: Power - Generation/Distribution
SET ALERT
|
ADD TO PORTFOLIO
|
WATCHLIST
LIVE
BSE
Dec 19, 16:30
135.65
4 (3.04%)
VOLUME 142,873
LIVE
NSE
Dec 19, 16:30
135.80
4.2 (3.19%)
VOLUME 2,725,413
Download Annual Report PDF Format 2014 | 2013 | 2012 | 2011 | 2010
Directors Report Year End : Mar '14    « Mar 13
Dear Shareholders,
 
 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
 international investors.
 
 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
 capacity.
 
 -  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
 March, 2014.
 
 -  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.
 
 FINANCIAL PERFORMANCE
 
 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%,
 respectively.
 
 Your Company continues to show improved performance in all its business
 areas including Telecom and Consultancy, enhancing the value for the
 shareholders.
 
                    (Fig. in Crore except EPS & Book value)
 
 Description             2013-14     2012-13    Y-o-Y Growth
 
 Revenue
 
 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.
 
 Dividend Payout
 
 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
 confirm that:
 
 i.  in the preparation of the Annual Accounts, the applicable
 accounting standards have been followed;
 
 ii. the directors have selected such accounting policies and applied
 them consistently and made judgments and estimates that are reasonable
 and prudent so as to give a true and fair view 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
 irregularities;
 
 iv.  the directors have prepared the annual accounts on a going concern
 basis.
 
 COMMERCIAL PERFORMANCE
 
 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
 customers.
 
 It is a matter of pride that the Company achieved about 99% realisation
 of transmission tariff during FY 2013-14.
 
 OPERATIONAL EXCELLENCE
 
 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
 parameters.
 
 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
 is affected.
 
 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
 improvement.
 
 PROJECT IMPLEMENTATION
 
 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
 initiatives.
 
 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
 commissioned.
 
 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
 implementation.
 
 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,
 2011.
 
 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.
 
 QUALITY MANAGEMENT
 
 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
 requirements.
 
 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
 action.
 
 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.
 
 TECHNOLOGY DEVELOPMENT
 
 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
 this direction.
 
 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
 completed.
 
 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,
 etc..
 
 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
 Commission (CERC).
 
 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.
 
 ENERGY EFFICIENCY
 
 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
 Management System.
 
 ''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
 2012-13.
 
 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
 
 Domestic
 
 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
 Bank assistance.
 
 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.
 
 International
 
 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
 International consultancy.
 
 INTERNATIONAL COOPERATION
 
 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
 power.
 
 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
 your Company.
 
 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
 users.
 
 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
 footrpint.
 
 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
 preceding year.
 
 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
 Karnataka.
 
 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
 Efficiency (BEE).
 
 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
 completed.
 
 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
 benefits soon.
 
 As a part of HRd consulting, your Company trained power professionals
 from both domestic and overseas utilities, including SAARC nations.
 
 Employee Welfare
 
 Your Company regards its employees as its core strength and, thus,
 undertakes requisite changes in various policies from time to time for
 their welfare.
 
 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
 
 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
 stakeholders.
 
 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
 its stakeholders.
 
 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
 stakeholders.
 
 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
 media updates.
 
 GRIDTECH
 
 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
 System.
 
 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
 Championship.
 
 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.
 
 CORPORATE GOVERNANCE
 
 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
 in Annexure-IX.
 
 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
 time.
 
 COMPANY''S BOARD
 
 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
 re-appointment.
 
 ACKNOWLEDGEMENTS
 
 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
 POWERGRID.
 
 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
 
 
 
Source : Dion Global Solutions Limited
Quick Links for powergridcorporationindia
Explore Moneycontrol
Stocks     A | B | C | D | E | F | G | H | I | J | K | L | M | N | O | P | Q | R | S | T | U | V | W | X | Y | Z | Others
Mutual Funds     A | B | C | D | E | F | G | H | I | J | K | L | M | N | O | P | Q | R | S | T | U | V | W | X | Y | Z
Copyright © e-Eighteen.com Ltd. All rights reserved. Reproduction of news articles, photos, videos or any other content in whole or in part in any form or medium without express written permission of moneycontrol.com is prohibited.