Ladies & Gentlemen,
The Directors'' are pleased to present the 27th Annual Report on
performance of your Company along with the audited financial statements
during the financial year ending March 31, 2016.
FY 2015-16 is yet another year of achievements for your Company. In the
area of project commissioning, your Company recorded a capitalization
of Rs.31,788 crore, which is the highest ever in a single financial
year of its history. With commissioning of new transmission assets
comprising 13,717 circuit kilometre (ckm) of Extra High Voltage (EHV)
transmission lines, 15 new substations and 23,139 Mega Volt Ampere
(MVA) transformation capacity, total transmission assets of your
Company have increased to 129,354 ckm & 207 substations with
transformation capacity of 254,848 MVA.
Other major achievements of your Company during the year on various
fronts are mentioned below:
- Capital investment of Rs.22,584 crore.
- Excellent MoU rating notified by Government of India for financial
- Investment approval accorded for 23 new transmission projects worth
more than Rs.13,000 crore.
- Maintained transmission system availability at 99.72% with number of
tripping per line limited at 0.66 for the year.
- Total Income from operations is about Rs.21,281 crore as compared to
Rs.17,780 crore in FY 2014-15. This financial year your Company has
recorded PAT of about Rs.6,027 crore as compared to Rs.4,979 crore in
- Interim dividend of Rs.0.80 per share (face value Rs.10/- each) has
been paid and recommendation of Rs.1.51 per share as final dividend for
the FY 2015-16, subject to approval of shareholders.
- World''s first & longest (~1750 km) ±800kV HVDC Multi terminal
transmission line (Pole-I, 1500 MW) from Biswanath Chariali (Assam) to
Agra (U.P) commissioned in November, 2015.
- Inter-regional power transfer capacity of 13,200 MW added by the
- The first high capacity synchronous link between India and Nepal
400kV Muzaffarpur (India) - Dhalkebar (Nepal) double circuit
transmission line commissioned in February, 2016.
- Grid interconnection between India and Bangladesh was strengthened
through 400kV Surjyamaninagar (Tripura, India) - Comilla (Bangladesh)
double circuit transmission line commissioned in March, 2016.
- 400kV Khammam – Nagarjunasagar double circuit transmission line - the
1st line commissioned by your Company under Tariff Based Competitive
- Telecom revenue rose to Rs.392 crore in the financial year ended on
31st March 2016 as against Rs.275 crore in the previous year
registering growth about 43%.
- The 1200kV (the highest transmission voltage in the world) National
Test Station Phase -II successfully charged.
Your Company''s financial performance during the year 2015-16 as
compared to the previous year 2014-15 is summarized below:
(Figures in Rs. crore, except per share data)
Description 2015-16 2014-15 Y-o-Y Growth
Transmission Charges 19,945 16,521 20.7%
Consultancy-Sale of Services 465 381 22.0%
Telecom 392 275 42.5%
Other Income 479 603 (20.6%)
Total Income 21,281 17,780 19.7%
Profit After Tax (PAT) 6,027 4,979 21.0%
Earnings per Share (Rs.) 11.52 9.52 21.0%
Book Value per Share (Rs.) 81.43 72.71 12.0%
Gross Fixed Assets 1,50,052 1,18,264 26.9%
Long Term Borrowings* 1,06,321 93,845 13.3%
Net Worth 42,598 38,037 12.0%
Debt Equity Ratio 71:29 71:29 -
Return on Net Worth 14.15% 13.09% -
For FY 2015-16, your Company has proposed a final dividend of Rs.1.51
per share in addition to Rs.0.80 per share of interim dividend paid in
February, 2016 taking total dividend to Rs.2.31 per share. 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.1,209 crore (including an interim dividend of Rs.419 crore).
As on April 1, 2016, the transmission assets owned and operated by your
Company stands at 129,354 ckm of Extra High Voltage (EHV) transmission
lines and 207 nos. EHVAC & High Voltage Direct Current (HVDC)
substations with about 254,848 MVA transformation capacity. During the
FY 2015-16, your Company maintained availability of the transmission
network at 99.72% which is comparable to international standards. The
number of trippings per line (unplanned) was contained to 0.66 during
the year, indicating high reliability of transmission system.
To maintain such high standard, 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
In the event of tower collapse due to natural calamities or otherwise,
Emergency Restoration System is being deployed to quickly restore
collapsed towers. For the first time ever, Aerial Patrolling &
Maintenance of transmission lines using helicopters and Unmanned Aerial
Vehicles (UAVs/ Drones) have been taken up. State-of-the-Art Travelling
Wave Fault Locator used for detection of transmission line faults
accurately, is under procurement process. Equipment conditioning
monitoring techniques such as dynamic testing of the relay, online
monitoring, thermo- vision scanning, frequency response analysis of the
transformers and reactors etc. are being used for determination of
healthiness of the assets.
State-of-the-Art ''National Transmission Asset Management Centre''
(NTAMC) at Manesar, Haryana, was dedicated to the Nation on April 29,
2015 and 104 substations have been connected for remote operation from
NTAMC till March, 2016.
Your Company has been contributing in restoration of power in areas hit
by natural calamities including neighbouring countries. Support was
promptly extended in Tamil Nadu to restore EHV lines, which were
damaged due to floods in Chennai in November-December, 2015. POWERGRID
contributed in restoration of 400kV & 230kV lines including evacuation
lines from Kalpakkam Nuclear Power Plant & North Chennai TPS. To
provide immediate communication facility, 20Mbps dedicated bandwidth
was provisioned to Load Despatch Centre.
Support was given to Manipur Govt. to restore its power supply after
the earthquake in Manipur on 4th January, 2016. Restoration work was
taken up immediately & local grid was restored within few hours.
Your Company sent highly specialized engineers to Nepal to restore
their electrical network after the devastating earthquake in April,
2015. It worked closely with Nepal Electricity Authority to restore
about 85% of power supply in the valley in the first 3-4 days itself
after the earthquake.
Transmission projects implementation has been a challenging task as
these projects run over hundreds of kilometres of length across tough
terrains and involve varied socio-economic issues. To ensure that power
evacuation and system strengthening projects are completed matching
with the system requirement, detailed planning is done during
implementation and progress is reviewed at various levels to take
On project implementation front, your Company has commissioned about
13,717 ckm of EHV (Extra High Voltage) transmission lines and 23,139
MVA transformation capacity with 15 new substations, which resulted in
record capitalization of Rs.31,788 crore in this year.
During the year, a number of important transmission lines have been
commissioned, viz. ±800 kV Biswanath Chariali - Agra HVDC Bi-pole,
765kV Jabalpur - Dharamjaygarh I & II, 765kV Meerut-Moga, 765kV D/C
Aurangabad- Solapur line, 400kV D/C Barh-II TPS-Gorakhpur line (Quad)
&765kVGwalior- Jaipur I & II.
Further, more than 10,000 km of OPGW have been installed and about
26,000 km of OPGW installation is under progress.
In the FY 2015-16, your Company continued to show sustained performance
in all its business areas, enhancing value for the shareholders. Your
Company has achieved turnover of Rs. 21,281 crore and net profit of Rs.
6,027 crore in FY 2015-16 as compared to Rs. 17,780 crore and Rs. 4,979
crore respectively during FY 2014-15, registering a growth of 19.7% and
Capital Expenditure and Fund Mobilization
Towards its Rs.1,10,000 crore capital expenditure target for the XII
Plan (FY12-17), POWERGRID made a capital expenditure (CAPEX) of
Rs.22,584 crore during the year 2015-16. For the CAPEX of FY 2015-16,
Rs.12,743 crore were mobilised through private placement of bonds &
term loan, Rs.2,980 crore were mobilised through External Commercial
Borrowings (ECB)/Suppler credit and Rs.6,861 crore were utilized from
XII PLAN PROGRAMME
Against CAPEX plan of Rs.1,10,000 crore for XII Plan, your Company has
already made a capital expenditure of Rs.88,235 crore in the first four
years of the Plan period.
Based on the ratings assigned by both domestic and international credit
rating agencies, your Company does not foresee any difficulty for
resource mobilisation. The funding for capital expenditure has been
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 of bonds.
During FY 2015-16, Govt. of India has entrusted some important
challenging projects, including ISTS portion of Green Energy Corridors,
to your Company which are required to be implemented under compressed
time schedule. These projects are likely to be commissioned by the end
of XII Plan/early XIII Plan.
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 assigned
the responsibility for carrying out the activities such as raising of
transmission charges bills on behalf of all inter-State Transmission
System (ISTS) Licensees, collecting the amount and distributing the
same to them. In this regard, transmission charges bills are prepared,
raised and uploaded on the website for Designated ISTS Customers
(DICs), including the payment details by the customers.
Your Company is fulfilling the assigned responsibilities effectively
and achieved collection efficiency of above 97% for FY 2015-16.
PERFORMANCE UNDER TARIFF BASED COMPETITIVE BIDDING (TBCB)
Your Company is performing well in the competitive environment under
Tariff Based Competitive Bidding (TBCB). In FY 2015-16, your Company
successfully bid for the project ''Strengthening of Transmission System
beyond Vemagiri'' and aquired the SPV, ''Vemagiri II Transmission
Limited'' from the BPC. The SPV has been renamed as POWERGRID Southern
Interconnector Transmission System Limited. With this your Company has
won total nine (9) projects through TBCB.
400kVKhammam – Nagarjunasagar double circuit transmission line -the 1st
line commissioned by your Company under Tariff Based Competitive
Bidding during FY 2015-16.
DEVELOPMENT OF NATIONAL GRID
After successful achievement of ''One Nation-One Grid-One Frequency'', to
further strengthen the National Grid, a number of inter-regional
transmission lines have been commissioned and more lines are under
construction. In FY 2015-16, 400kV D/c Barh-II-Gorakhpur, Extension of
400kV D/c Biharshariff - Sasaram to Varanasi, 765kV 2nd S/c Ranchi
-Dharamjaygarh, 765kV 2xS/c Gwalior-Jaipur, 765kV D/c Narendra –
Kolhapur and one pole of ±800 kV Biswanath Chariali - Agra HVDC Bi-pole
inter-regional transmission lines have been commissioned resulting in
enhancement of inter-regional power transfer capacity of the National
Grid by 13,200 MW. To further augment 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 over 72,000 MW.
The enhancement of transmission capacity due to above inter-regional
links has augmented pan-India electricity market and during FY 2015-
16, about 117 billion units (BUs) inter-regional energy transfer was
facilitated across the nation, an increase of about 40% over previous
Power System Operation Corporation Limited (POSOCO), a fully owned
subsidiary of your Company, has been managing the national grid through
National Load Despatch Centre (NLDC) and five Regional Load Despatch
Centres (RLDCs). 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. As per
GoI directive, process has been initiated for its separation from
Under Short Term Open Access (STOA), 13,467 nos. of bilateral
transactions and 30,967 nos. of collective transaction were approved,
allowing energy transfer of 64 BUs through bilateral transactions and
34 BUs through collective transactions, totaling to 44,404 approved
transactions and 98 BUs of approved energy in the FY 2015-16.
CONNECTIVITY, MEDIUM TERM OPEN ACCESS (MTOA) & LONG TERM ACCESS (LTA)
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. Relevant
regulations, procedures, guidelines and related documents for
Connectivity, MTOA and LTA applications and status thereof are
available on Company''s website.
As of March 31, 2016, the Company has granted Connectivity to 98 nos.
of eligible applications for 81,860 MW and has granted LTOA/LTA to 192
nos. of eligible applications for 94,200 MW. In addition, based on the
transmission margins availability, the MTOA has also been granted to 92
nos. of applications for 10,450 MW capacity.
The Quality Management System in your Company is built around the
philosophy of prevention rather than detection. To ensure quality,
while procuring goods at competitive prices, a lot of effort has been
put on quality assurance and various quality improvement measures have
been initiated and implemented to get better quality products.
During FY 2015-16, Southern Region-II Headquarter building at Bangalore
and National Transmission Asset Management Centre (NTAMC) at Manesar
were certified for Energy Management Systems as per ISO 50001
requirements. Your Company is also certified for Information Security
Management Systems as per requirements of ISO 27001.
Your Company has developed and maintained systems and procedures
aligned with Integrated Management System comprising ISO 9001 for
Quality Management System, ISO 14001 for Environmental Management
System and OHSAS 18001 for Occupational Health and Safety Management
System. The certification has been maintained after rigorous audits by
BSI Management Systems.
In order to facilitate inspection of huge capital work, your Company
has undertaken various proactive measures like smart inspections (in
process and before acceptance), continuous follow up with
manufacturers, improve quality systems at manufacturers'' works etc.
With target to move towards zero product inspection as per your
Company''s quality policy, inspections at some of the manufacturing
units of towers, conductor, cables, transformer oil etc. were reduced
after thorough process audits at their works as per standardized
Continuous follow up with manufacturers for timely manufacturing, smart
inspection, testing of various critical items & subsequent issuance of
dispatch clearances in time resulted in achieving record asset
capitalization in this fiscal year. Special awareness programs were
also organized for transmission line EPC contractors & their CEOs to
discuss and sensitize the importance of quality in transmission system.
Special campaign was launched for the cause of Make in India.
Presently, most of 765kV class transformers/ reactors/other equipment
and even some of Gas Insulated Substation (GIS) are being supplied from
Indian works. This has been facilitated by stipulating conditions in
various contract agreements for establishment of new factories or
expansion of existing factories, transfer of technology, recruitment of
employees, skill development and also development of the ancillaries. A
number of sub-vendors have been developed and approved in India for
supply of components for various equipment to facilitate employment
generation in the Country.
Your Company adopts and encourages the Research & Development (R&D)
activities in pursuit of technological excellence in power
transmission. Notable among them are the prestigious 1200kV National
Test Station project at Bina, Madhya Pradesh and the Process-bus
architecture in substation automation system.
1200kV National Test Station
Your Company has successfully test charged Phase-II of the prestigious
1200kV National Test Station in the month of March 2016. With this, all
the 1200kV equipment in the test station have been successfully charged
at 1200kV voltage level. For this project of national importance, your
Company has collaborated with Indian equipment manufacturers for
getting the 1200kV equipment developed, which have been presently
installed at the test station in Bina for long term field operation and
The pilot initiative of your Company on IEC 61850 protocol based
Process- bus Architecture, successfully commissioned at the 400kV
Bhiwadi substation, was a significant step taken in the direction to
completely digitized substations. Further in the FY 2015-16, your
Company has also taken up and successfully completed a pilot project to
optimize the control & protection cable used in transformer at 400/220
kV Neemrana substation. After implementation of new scheme at this
substation, significant reduction in the number of cores between
transformer marshalling box and protection panel was achieved. The
scheme is expected to ease the maintenance and trouble-shooting in
future and also reduce restoration time in case of any eventuality.
Gaining experience from these projects, your Company is planning for
taking-up another pilot project for retrofitting ageing substations
having conventional protection and control schemes with advanced
POWERGRID Advanced Research and Technology Centre
Your Company is establishing world class laboratories and test
facilities at Manesar, Gurgaon for carrying out research and
development in power transmission area. This R&D centre shall cater to
the research needs of POWERGRID and of the Country to a large extent
with state-of-the-art facilities for power system analysis, advanced
equipment diagnostics, smart grid, energy efficiency, control and
automation, material science, engineering design etc.
SMART GRID & ENERGY EFFICIENCY
Your Company continues its journey of delivering value to its
stakeholders through applications of intelligent technologies towards
Smart Grid. Your Company is continuously enhancing its abilities
through in-house research & demonstration projects in the field of
Smart Grid & Energy Efficiency. It has been continually adding advanced
attributes to the utility projects to bolster the success story in the
above fields. Smart Grid vertical is expanding its customer base and
new projects are getting added, making Smart Grid a promising business
area in future.
Your Company has garnered valuable experience in implementation of
Smart Grid technology in last fewyears and presently providing
consultancy for ten (10) projects covering distribution infrastructure,
advanced metering infrastructure, intelligent outage management,
electric vehicle charging stations, power quality management,
distributed generation, net metering etc. Your Company is closely
associated with implementation of Smart Grid at Varanasi & Gurgaon as
part of Government''s endeavour towards Smart City development.
Towards smart transmission, your Company is implementing Phasor
Measurement Unit (PMU) based Unified Real Time Dynamic State
Measurement (URTDSM) project, integrating all State and Central grids
for Wide Area Measurements (WAMS). In addition, analytics using PMU
data are being developed in association with IIT Bombay. Synchronized
measurements integrated with high end analytics will facilitate
improved monitoring, visualization and enhanced situational awareness
of the grid events on real time towards grid reliability improvement.
Integration of Renewables
Your Company is playing a key role for integration of renewable energy
resources into the grid. Green Energy corridor are under implementation
by your Company which will serve dual purpose to facilitate
interconnection of large scale renewable, into the National Grid as
well as enlarging the balancing area to address renewable volatility.
In addition, transmission schemes for 7200 MW Ultra Mega Solar Power
Parks are also under implementation in various states as part of Green
Energy Corridors-II. Apart from Green Energy Corridor implementation
and grid-integration of Ultra Mega Solar Parks, it has been
establishing the first grid interactive energy storage pilot projects
with different battery technologies. The research findings of these
energy storage projects would be crucial in delineating the roadmap for
large scale deployment to address intermittency, variability and
uncertainty of renewable power and to ensure grid stability.
Your Company is taking up the challenging and flagship responsibility
of establishment of maiden Renewable Energy Management Centres (REMC)
in 7 renewable rich states including Regional Load Dispatch Centres at
SR, WR, NR as well as at National Load Dispatch Centre. This would
enable forecasting of renewable resources and efficient management of
distributed and intermittent renewable generation ensuring efficient
utilization of resources.
Your Company has taken lead role in identification of energy efficiency
opportunities by carrying out energy audits of various industries,
institutions and other commercial establishment. Waste heat recovery
systems for steel re-rolling mills designed & developed by your Company
have been installed successfully in steel industry. Energy Audits were
carried out in six installations during the year. Energy audits
undertaken and efficiency measures suggested by your Company shall
enable prevention of CO2 emissions to the tune of about 1197 tonne and
deferred capacity addition of more than of 300 MW during the Financial
Your Company is also a BEE Grade-I Energy Service Company (ESCO) for
undertaking energy efficiency projects in various industries.
Indian power industry is in the age of revolutionary transformations
and extensive advancements. Equipped with 90 energy auditors, your
Company is well prepared to stand as a star performer and key enabler
in the challenging environment, by offering Energy Efficiency
POWERTEL'' - TELECOM SERVICES ON TRANSMISSION INFRASTUCTURE
Your Company has been creating value to its shareholders by leveraging
its country wide transmission infrastructure under the brand name
''POWERTEL''. It has established itself as an important player in
providing telecom bandwidth and other communication services. Major
achievements during the FY 2015-16 are as under:
Parameter FY 2014-15 FY 2015-16 % Change
Total network Coverage 33,241 km 36,563 km 10%
Number of points present (PoPs) 352 595 70%
Customers 187 270 45%
Telecom Backbone Availability for the FY 2015-16 was 100% as against
99.97% in the previous year.
National Knowledge Network (NKN)
Under NKN project devised by Govt. of India which connects knowledge
centres such as Indian Institutes of Technology (IITs), Indian
Institute of Science (IISc) etc. across the Country, on a high speed
connectivity, 33 links of 10 Gbps each, 105 links of 1Gbps/100 Mbps and
440 links 100 Mpbs/1Gbps have been provisioned.
National Optical Fibre Network (NOFN)
As a part of digital India initiative of the Govt., to connect 250,000
Gram Panchayats (GP) in the Country by utilizing existing fibres of
BSNL, Railtel & 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 the States of
Telangana, Himachal Pradesh, Jharkhand & Odisha by Bharat Broadband
Network Limited (BBNL), covering about 36,000 GPs upto the FY 2015-16,
4120 GPs have been connected through incremental fiber out of which
Acceptance Testing for 1940 GPs have been completed. Further, 917 GPs
have been connected End to End.
Connectivity to Enterprise segment customers is provided on POWERGRID''s
MPLS Cloud. POWERGRID provides both Layer-2 and Layer-3 Virtual Private
Networks (VPNs) with port capacities ranging from 2Mbps to 10Gbps.
POWERGRID also provides reliable Internet Connectivity solutions over
its Internet cloud of different capacities ranging from 2Mbps to 1Gbps.
POWERGRID is peered with global content providers for providing IP
Transit services to ISPs. The IP Transit service reduces cost and
enhances service quality of hosted content for ISPs and in turn enables
them to offer better internet services at lower price to their users.
POWERGRID''s extensive backbone telecom network with its local access
partners has eliminated the location disadvantage of small towns
towards accessibility and affordability of high speed internet. It has
the potential to bridge the so called digital divide and be a change
agent towards realizing the vision of Digital India. Towards this,
MPLS VPN / Internet deals have been signed with a number of important
BUSINESS DEVELOPMENT & CONSULTING SERVICES
Your Company has developed the expertise in core areas of power
transmission, sub-transmission, load dispatch and communications etc.
Leveraging its capacity and experience, Consulting Services have been
provided to a number of clients in India and worldwide. On
international front, 2 nos. 220/20 kV substations at Doshi (1 X 16 MVA)
and Charikar (2 X 16 MVA) along with the LILO of one circuit of the 220
kV D/C Pul-e-Khumri to Kabul Transmission line at each substation have
been completed and handed over to Afghanistan authorities for
A Tripartite MoU has been signed among Railways, Dedicated Freight
Corridor Corporation of India Ltd (DFCCIL) & POWERGRID in November,
2015 to facilitate necessary co-operation to explore the scope for
dedicated transmission system for power supply to Railways for their
During FY 2015-16, your Company has achieved consultancy revenue of Rs.
465 crore, which is 22% higher w.r.t. previous year Revenue of Rs. 381
POWERGRID has been assigned the work of providing consulting services
for implementation of NER Power System Improvement Project funded by
World Bank and for implementation of Comprehensive Scheme for
Strengthening of Transmission & Distribution in Arunachal Pradesh and
Sikkim. The Company is also implementing transmission project in J&K to
provide grid connectivity and reliable power supply to the
strategically important Ladakh region. In addition, other important
consulting assignments include Strengthening of transmission network in
Delhi and execution of transmission system for evacuation of power from
Lalitpur power plant of Uttar Pradesh.
It is a matter of pride that as Lead-Member of the Consortium,
POWERGRID has successfully completed Management Contract of Ethiopian
Electric Power Service Corporation. The scope of this Contract covered
improving the quality and performance of the Electric Power service in
Ethiopia (Generation, Transmission and Distribution), to ensure the
establishment of an international recognized customer focused, market
oriented, world class new Electric Power Service provider with the
state-of-the art Electric Power Utility and infrastructure.
The existing interconnections with neighbouring countries, Nepal,
Bhutan and Bangladesh, are being further strengthened for mutual
exchange of power. Some of the recently commissioned interconnections
including communication links through OPGW are as under-
Transmission Interconnection between India and Nepal
- 400 kV D/C Muzaffarpur (India) - Dhalkebar (Nepal) – February, 2016
Transmission Interconnection between India and Bangladesh
- 400kV D/C Surjyamaninagar (India) – Comilla (Bangladesh) – March,
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 Bhutan &
India, is under implementation and expected to be ready by 2017.
CONTRIBUTION IN DISTRIBUTION REFORMS
Under Deen Dayal Upadhyaya Gram Jyoti Yojana (DDUGJY) scheme for rural
electricity infrastructure and household electrification, your Company
has been executing infrastructure work for rural electrification in
seventy (70) districts of nine (9) States in the Country at a cost of
aboutRs. 9,000 crore.
Almost all of the X/ XI Plan schemes have been completed. Work in Uttar
Pradesh and Odisha assigned to POWERGRID under XI Plan Phase-II/ XII
Plan are under implementation.
During FY 2015-16, infrastructure was created for electrification in
2960 nos. of partially electrified / unelectrified villages. Service
connections were provided to about 83,500 BPL households. Cumulatively,
till March, 2016, infrastructure has been created for electrification
of about 74,500 villages. Further, service connections were provided to
about 36.7 lakh BPL households.
Integrated Power Development Scheme (IPDS)
The implementation of IPDS work in Old Kashi area of Varanasi Town was
assigned by Purvanchal Vidyut Vitaran Nigam Limited (PuVVNL) in
September, 2015 and has been taken up for implementation and work has
been progressing as per schedule.
Project RUPANTAR, the Enterprise Resource Planning (ERP) initiative
of your Company has been implemented successfully and the processes and
systems have been stabilised in all the regions of your Company.
Presently, majority of the key processes related to the business are
running on ERP. E-tendering for the domestic bids has also been taken
up in ERP system on pilot basis. In order to provide stability and
reliability to ERP system, a Disaster Recovery Centre has been
established at Bengaluru.
HUMAN RESOURCE, OUR STRENGTH
Talent Acquisition & Development
Your Company places human resource as key to its growth. During the
year 2015-16, income per employee and profit per employee have been
increased to Rs.247 lacs and Rs.70 lacs from Rs.208 lacs & Rs. 58 lacs
respectively in previous year. Also, during the year circuit kilometre
per employee and MVA per employee have been increased to 15 ckm & 29.7
MVA from 13.5 ckm & 27.1 MVA respectively in previous year.
In order to keep pace with the latest technology, employees are
provided training in the areas of specific skills/functions to upgrade
and update them towards the changing business environment and to
effectively take on the challenges ahead.
Your Company''s Human Resource Development (HRD) Action Plan for the
year 2015-16 was based on the premise of the outcome of two pronged
strategy namely Organisational Need Analysis (ONA) and Training Needs
Assessment (TNA).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.
POWERGRID Academy of Leadership (PAL), at Manesar has been envisioned
to culminate in a State-of-the-Art, world class Institution. PAL has
become fully functional and the various HRD interventions are conducted
in addition to imparting training to Executive Trainees (ET).
Under the Flagship of PAL two weeks'' Power Sector Global Outreach
Programme at UK and France had been successfully conducted for PSUs in
power sector. Apart from these, the Company has provided consultancy
towards capacity building to Ethiopian Electric Power Corporation
(EEPCo)and to various state utilities including North Eastern Region.
During the year, the Industrial Relations scenario in the Company has
been cordial and no man-days were lost. An effective work culture has
been established in the Company through empowerment, transparency,
decentralization and practice of participative management.
Keeping in view of changing needs and welfare of employees, your
Company undertakes essential changes in various policies from time to
time. 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.
Your Company has empanelled various hospitals nearby to our
establishments for the healthcare of employees and their dependents.
Quality food is served to the employees in the ISO 22000:2005 conferred
Corporate Office and Food Lounge of Multi-Purpose hall in Gurgaon.
Cultural programmes are conducted periodically for promoting healthy
community living and celebrating various occasions like Diwali
get-together, Holi Milan, New Year, Raising Day, etc. in establishments
of the Company.
Your 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, Caroms, Chess and Badminton
etc. and also participates regularly in Inter-PSU Sports meet. Your
Company team has stood as first runner up in prestigious 24 th National
Competition for Business Management Simulation Games organised by All
India Management Association and represented India in Asia Management
Games as well as in Global Management Challenge.
Prevention of Sexual Harassment at Workplace
As per the requirement of the Sexual Harassment of Women at Workplace
(Prevention, Prohibition & Redressal) Act, 2013 and Rules made
thereunder, your Company has constituted Internal Complaints
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 continues to prove its commitment for implementation of
Official Language Policy of Govt. of India. Series of initiatives were
undertaken for promotion and propagation of Rajbhasha.
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
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), 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 reading and writing. To provide further
inspiration, employees are nominated for external Hindi training
programs which further educate & encourage the employees to work in
Besides this, a unique Hindi Library has also been established for the
employees, where around 14,500 books, 53 Hindi Magazines on various
topics & 16 Hindi Newspapers are available for the readers. List of
Hindi Books are also available on the website.
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 ENHANCEMENT
POWERGRID has been continuously investing on building a strong brand
identity to overcome the emerging challenges in power sector. Your
Company''s transparent work culture is regularly brought forth in face
to face interactions of the management with the analysts and
representative of press and media at Press and Analysts Meet.
In order to facilitate an interaction with the masses with regard to
the achievements, growth, recent developments on operational and
financial front numerous press communiqué have been issued by your
Company. Your Company has been executing its projects and operations in
extremely challenging situations from time to time. Landmark
achievement have been highlighted through a proper media management
strategy ensuring precise and timely dissemination of information which
helped the Company in earning widespread appreciation and applaud from
media persons, common masses, stakeholders and investors all over the
POWERGRID has taken a giant leap forward by pledging 55,000 man-hours
in year 2016 towards fulfilling its commitment towards the national
agenda of Swachh Bharat. The Company has not only taken this oath but
it has launched various media campaigns for the involving the common
masses in this initiative and for spreading the awareness about this
Internal communications play a key role in enabling employees across
the Company in understanding and embracing the Company''s mission, goals
and strategies. Towards this objective, your Company has continuously
deployed communication tools such as e-transmit, wall magazines, lounge
and regular media updates to apprise the employees of the developments,
achievements & events, viewpoints of management and also to provide a
platform to employees to participate and take pride in being associated
with POWERGRID. The internal communication has been instrumental in
boosting employee morale, enthusiasm.
With the view to effectively deliver the Corporation''s key messages
through relevant media to target audiences, your Company has
strengthened its relations with all media by infusing communication
equities for corporate branding purpose. The new mechanisms of
communication management have also been well appreciated by the leading
national media houses.
GRIDTECH 2015 - INTERNATIONAL EXHIBITION AND CONFERENCE
POWERGRID with the support of Ministry of Power, Govt. of India and in
association with CBIP & IEEMA organized 5th International Exhibition
and Conference – GRIDTECH 2015 during April 8-10, 2015 at New Delhi,
which was inaugurated by Hon''ble Union Minister of State (I/C) for
Power, Coal, New & Renewable Energy, Shri Piyush Goyal. More than
seventy five technical papers focussing on State-of-the-Art
technologies, emerging trends, renewable energy, smart grid etc. were
presented in the two parallel conferences. Also, more than 40
International and 70 National manufacturers showcased various new
technology products. Theme pavilion set up by POWERGRID and the Student
Pavilion attracted attention of many and received special mention from
dignitaries as well as visitors.
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.
COMMITMENT TO TRANSPARENCY & VIGILANCE FUNCTION
Your Company advocates the principles of Good Governance, Transparency,
Probity and Ethics in its management functioning. The Vigilance
Department works in tandem with the management so that these attributes
are inculcated in the day to day functioning of the Organization.
Emphasis on Preventive aspects
The Company lays primary emphasis on preventive vigilance. It,
therefore, focuses on whether the systems are in place, whether the
right type of systems exist or need to be reengineered. Various
in-house methods such as Process (Online) Inspection, Surprise
Inspections, CTE Type Inspections are conducted to check the spectrum
of the ongoing activities including physical works and scrutiny of iles
by a team of dedicated professionals. During the inspections, loopholes
/lapses, if observed, are brought to the notice of the management for
rectification. During the year 2015-16, 55 Surprise and 66 Process
Online Inspections/CTE Type Inspections were conducted and adequate
cost compensation has also been effected, wherever necessary.
System Improvements as a Continuous Process
Presently, your Company is undergoing a dynamic phase of growth as
several projects/works are being executed. Therefore, robust system and
procedures are being put in place to keep up with the work
requirements. One such endeavor has been updating of the Works &
Procurement Policy and Procedure Manual of the Corporation. Besides
this, important System Improvement suggestions (40 nos.) made by the
Vigilance Department have been implemented during this period,
pertaining to different areas of operation such as construction
activities, recruitment procedure, photography of the hidden works etc.
Since systems improvement is a continuous process a Steering Committee
comprising senior level officers has also been formed to monitor their
Preventive Vigilance/ RTI Workshops: As a pro-active measure, employees
of the Company are imparted training on Company''s CDA rules and various
preventive measures for smooth project execution. 21 Preventive
Vigilance Workshops and 06 RTI workshops were conducted at Corporate
Centre and Regions for 613 and 235 employees, respectively during the
Workshop on Ethics & Values: This year, 03 workshops on Ethics & Values
were conducted by the Regional Vigilance Department as well as
Corporate Centre for around 70 employees. Workshops were conducted for
various levels of executives to encourage value based ethical decision
SMS Based Alert System: With a view to acquaint all the employees about
the CDA Rules as well as other vigilance activities, bulk SMS have been
sent to all employees regularly.
Vigilance Awareness Week 2015: Vigilance Awareness Week was celebrated
in your company from 26th Oct to 30th Oct 2015. During the period,
various activities such as Essay Competitions, Quiz Competitions,
debates etc. were organized in line with the theme of the Vigilance
Awareness Week this year i.e. Preventive Vigilance- a tool of Good
As a measure of Participative Vigilance, various Inter college and
Inter school Debate competitions and Panel Discussions were organized
in which 116 Team of Schools and Colleges had participated and these
events were attended by 5386 of students. Roadshows for spreading
awareness about Preventive Vigilance were also organized by 8 Schools
for 2100 participants. During this week, Vigilance in-house magazine
Candour was published and the same was inaugurated by Sh Balwinder
Singh, former Special Director (CBI). Dr Arun Kumar, retd. Professor of
JNU, New Delhi was the Chief Guest at the Valedictory Session.
Further, a film on POWERGRID Vigilance was telecast on DD National on
29.10.2015 between 8.00 AM to 8.30 AM in the programme Aaj Savera and
was also shown during various events organized at Corporate Centre.
ENVIRONMENT AND SOCIAL MANAGEMENT
POWERGRID, being a responsible corporate entity, always endeavours to
protect and conserve environment in areas of its activities from
inception to operation stage. It developed a comprehensive
Environmental and Social Policy & Procedures (ESPP) in 1998 and has
upgraded the same twice in line with the international best practices,
to pre-empt possible environmental and social issues. The ESPP has been
accepted by The World Bank under its Use of Country System (UCS) policy
and greatly appreciated by different multilateral agencies.
POWERGRID, a pioneer in the field of Sustainability Reporting in the
Indian Power Sector published its 3 rd biennial Sustainability Report
in September, 2015. Following the principle of continous improvement,
this report has brought more transparency in the form of better and
detailed disclosures, incorporating the voices of internal and external
stakeholders. The report assumes special significance, as number of
disclosures of performance indicators have been increased from 39 to
96. With this it has also attained the highest possible rating of A .
The report is externally assured by accredited assurance provider M/s
Intertek India Private Limited based on Global Reporting Initiative
(GRI-G3) guidelines including Electric Utilities Sector Supplement
(EUSS) and International Standards like Accountability, UK Standard AA
1000 APS (2008) and AA1000SES(2011).
Apart from above, your Company has taken various initiatives to fulfil
its commitment towards the goal of sustainable development and to
address the negative externalities associated with its business
processes. Key initiatives in this regard are:
- Special designed towers to conserve the precious Right of Way (RoW),
enhancing the carrying capacity of existing lines through various
- Rain water harvesting made an integral part of substation design,
- Installation of LED bulbs & solar street lighting in substation,
- Fuel catalysts devices for DG sets etc
Further, a 50kWp Solar PV System has been installed at our Gurgaon
Office Complex to meet part of its total energy requirement and will
also result in CO2 reduction. POWERGRID is fully conscious of the need
to conserve natural resources and avoids forest, ecological sensitive
areas like Wildlife Sanctuaries/National Parks/Biosphere Reserves and
Coastal Regulation Zone areas as far as possible through optimization
of route alignment. POWERGRID completely avoided the Great Indian
Bustard Sanctuary and Achanakmar - Amarkantak Biosphere Reserve by
increasing the line lengths for construction of 765 kV S/C Indore-Dahod
line & 765 D/C Dharmajaygarh-Jabalpur line respectively. Following the
principle of avoidance, involvement of forest land has been reduced
progressively from 6% in 1998 to 2.8% in 2015. However, in some cases
where involvement of forest area becomes unavoidable, Forest Clearance
as mandated under Forest (Conservation) Act, 1980 is obtained following
norms/regulations associated with the act including payment of
applicable NPV and cost of Compensatory Afforestation (CA). In FY
2015-16, a total 30 nos. of forest clearances were obtained involving
diversion of about 1000 Ha of Forest areas.
CORPORATE SOCIAL RESPONSIBILITY
Your Company believes in Corporate Social Responsibility (CSR) as a
commitment to its stakeholders to conduct business in an economically,
socially and environmentally sustainable manner that is transparent and
ethical. Stakeholders include persons directly impacted by the
activities of your Company, local communities, environment and society
at large. It primarily focuses on inclusive socio-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, Skill Development, Health,
Education, Environment, etc.
During the year, your Company participated in the Swachh Bharat
Abhiyaan by constructing about 9500 toilets in about 4,250 Government
schools in several states of India.
Projects like, ''Construction of 10 storeyed, 325 bedded Dharmashala at
AIIMS Trauma Centre, New Delhi'', ''Improving Rural Livelihoods through
Farmer-centric Integrated Watershed Management'' on 10,000 hectares of
land in Kurnool (Andhra Pradesh) & Kudgi (Karnataka) through ICRISAT
(The International Crops Research Institute for the Semi-Arid Tropics)
are also under implementation.
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.
During the year, your Company has received following important
Gold Shield in the National Awards for Meritorious Performance in
Power Sector for the Year 2013-14
Rajiv Gandhi National Quality Award by BIS under Large Scale Service
CBIP Award for Best Transmission Utility by Central Board of
Irrigation and Power (CBIP)
Dun & Bradstreet PSU Award 2015 under the Power Transmission &
Distribution sector category & Dun & Bradstreet Infra Award 2015
under Power Transmission category.
Most Valuable Company and Best Performing Company award from India
Today in Navratna (PSU) category.
Felicitated at The Economic Times Power Focus 3rd Annual Summit for
commendable initiatives and excellent contribution in in Power Sector.
India Pride Award 2014-15 in the category of Excellence in Energy and
Power by Dainik Bhaskar.
POWERGRID Regional Headquarters Building at Bengaluru awarded Green
Building under Green Rating for Integrated Habitat Assessment (GRIHA).
Rajbhasha Navratna Award 2015-16 by Indian Language & Cultural
Most Innovative use of Training & Development as an HR Initiative for
Organization Development Award by World HRD Congress
Training Excellence in HR-Silver Award for outstanding achievements
in Training at the 5th Annual Greentech HR Award 2015.
Training Excellence Award and Knowledge Management Leadership Award
by World HRD Congress.
Fastest Growing Electric Utility in Asia for second successive year
and only Indian PSU in the Platts Top 50 Fastest Growing Energy
Companies 2015 in the World.
Ranked no. 3 among a list of 49 companies selected under the category
of Asia''s Best Analyst Days in the Institutional Investor Survey of
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 Regulation 34
(2) of the SEBI (Listing Obligations and Disclosure Requirements)
Regulations, 2015 is given in Annexure-II and forms part of the Annual
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, information is
given in Annexure-III to this Report.
COMPTROLLER AND AUDITOR GENERAL''S COMMENTS
Company has received ''NIL'' comments on the accounts for the year ended
March 31, 2016 by the Comptroller and Auditor General of India under
under Section 143(5) of the Companies Act, 2013. Copy of the same is
attached in Annexure - IV to this report.
A report on the Corporate Governance (Annexure-VII), forming part of
this report, together with the Certificate thereon is given in
Annexure- VIII to this report.
Your Company has got its Secretarial Compliance Audit conducted for the
financial year ended March 31, 2016 from M/s Chandrasekaran &
Associates, Practising Company Secretary. Their Report forms part of
this Annual Report (Annexure-V).
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.
Your Company''s composition of Board of Directors underwent some changes
during the year 2015-16. During the year, Shri I. S. Jha, Director
(Projects) took over the additional charge of Chairman & Managing
Director with effect from 1st October, 2015 and regular charge of
Chairman & Managing Director with effect from 10th November, 2015. Shri
R. N. Nayak demitted the office of Chairman & Managing Director on 30th
September, 2015 upon attaining the age of superannuation. The Board
placed on record its appreciation and gratitude to Shri R. N. Nayak for
the invaluable contribution, unstinted support and advice in the
decision making process & affairs of the Company, provided by him to
the Company during his tenure as CMD of POWERGRID.
Shri Jagdish Ishwarbhai Patel has been appointed as non-official part
time director (Independent Director) w.e.f. 17th November, 2015.
Shri R. K. Gupta, Shri A. K. Mittal, Shri R. Krishnamoorthy, Dr. K.
Ramalingam and Shri Mahesh Shah non-official part time directors
(Independent Directors) ceased to be Directors on the Board of the
Company w.e.f. January 16, 2016. The Board wishes to place on record
its deep appreciation and gratitude for the significant contribution
and support to the Company extended by Independent Directors of the
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, Dr. Pradeep Kumar and Ms. Jyoti Arora, Directors shall retire
by rotation at the Annual General Meeting of your Company and being
eligible, offer themselves for re-appointment.
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 for holding the position of
''Independent Director'' and necessary declaration from each Independent
Director under Section 149 (7) was 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
have reviewed the work assigned to them under Schedule IV of the
Companies Act, 2013.
Further, the appointment, tenure and remuneration of Directors are
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 (MoU) with Ministry of Power every year wherein Company
is evaluated on various financial and non-financial parameters.
M/s Chandrasekaran & Associates, Practising Company Secretaries have
conducted Secretarial Audit of the Company for the financial year ended
31st March, 2016. Their Report forms part of this Annual Report
(Annexure-V). The Secretarial Auditor observed as under:
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 observation:
1. The Company has not complied with provision of Section 149 of the
Companies Act, 2013 read with Regulation 17 of SEBI (Listing
Obligations Disclosure Requirements) Regulations, 2015 in respect to
the appointment of requisite number of Independent Directors.
2. The Company has not complied with provision of Section 177 of the
Companies Act, 2013 and Regulation 18 of SEBI (Listing Obligations
Disclosure Requirements) Regulations, 2015 with respect to constitution
of Audit Committee.
3. The Company has not complied with provision of Section 178 of the
Companies Act, 2013 and Regulation 19 of SEBI (Listing Obligations
Disclosure Requirements) Regulations, 2015 with respect to constitution
of Nomination and Remuneration Committee.
4. 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 is 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. As on 31st March, 2016, the Company had
only one Independent Director and thus the Company has not been able to
comply with provisions of 149, 177 & 178 of the Companies Act, 2013 as
observed by the Secretarial Auditor. The matter has already been taken
up with Administrative Ministry for illing six existing vacancies of
Independent Directors on the Board of the Company.
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 ill under e-filing in MCA-21.
EXTRACT OF ANNUAL RETURN
In accordance with Section 134 (3) (a) of the Companies Act, 2013 an
extract of the annual return in the prescribed format in MGT-9 is given
as Annexure VI of this Report.
COMMITTEES OF THE BOARD
POWERGRID''s has Audit Committee, Stakeholders Relationship Committee
and other Committees. The composition and scope of the Committees are
provided in the Report on Corporate Governance.
A report on the Corporate Governance (Annexure-VII), forming part of
this report, together with the Certificate thereon is given in
Annexure- VIII 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 and
mitigation thereof are given in the Management Discussion and Analysis
Report at Annexure-I of this Report.
STATUTORY AUDITORS OF THE COMPANY
The Statutory Auditors of your Company are appointed by the Comptroller
& Auditors General of India. M/s S. K. Mittal & Co., M/s R. G. N. Price
& Co., M/s Kothari & Co. and M/s Parakh & Co. were appointed as Joint
Statutory Auditors for the financial year 2015-16.
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) 2015-16 under Section 148 of the Companies Act,
The Cost Audit Report for the FY 2015-16 will be filed with the Cost
Audit Branch, Ministry of Company Affairs before due date i.e.
September 27, 2016.
Our Board of Directors would like to express their deep sense of
appreciation for 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, Ministry
of Corporate Affairs, Central Electricity Regulatory Commission,
Appellate Tribunal for Electricity, Central Electricity Authority, NITI
Aayog, Department of Public Enterprises, Regional Power Committees, and
other concerned Govt. departments/agencies at the Central and State
level as well as from Securities and Exchange Board of India, National
Stock Exchange of India Ltd., and BSE Ltd., Mumbai without whose active
support, the achievements of the Corporation during the year under
review would not have been possible.
Special thanks 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
Our 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 (CARE, ICRA & CRISIL) & International (Standard
& Poor''s and Fitch Ratings) 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 for the dedicated efforts and valuable services
rendered by the members of the POWERGRID family in the Company''s
achievements during the Financial Year 2015-16. 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
For and on behalf of the Board of Directors
Chairman & Managing Director
Place: New Delhi