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Power Grid Corporation of India
BSE: 532898|NSE: POWERGRID|ISIN: INE752E01010|SECTOR: Power - Generation/Distribution
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Company History - Power Grid Corporation of India
The Company was incorporated on October 23, 1989 under the Companies
 Act 1956 as ‘National Power Transmission Corporation Limited’, with
 the responsibility of planning, executing, owning, operating and
 maintaining the high voltage transmission systems country. We
 received a certificate for commencement of business on November 8,
 1990. The name of the Company was changed to its present name ‘Power
 Grid Corporation of India Limited’ and a fresh certificate of
 incorporation was issued on October 23, 1992. The name of the Company
 was changed to its present name from ‘National Power Transmission
 Corporation Limited’ as its then abbreviated form, ‘NPTC Limited’,
 had close resemblance to another existing company, namely, NTPC
 Limited (NTPC). As on September 30, 2013, the total number of holders
 of Equity Shares of the Company was 850,252. The Company is presently
 listed on the BSE and the NSE. For further information on The
 business including description of the activities, services, market of
 each segment,The growth, technology, market, managerial competence and
 capacity build-up, The standing with reference to The prominent
 competitors, The Company is not operating under any injunction or
 restraining order. Transfer of transmission assets from generating
 units Initially, The Company was engaged in the management of the
 transmission assets owned by the central power generating companies
 such as the NTPC, NHPC Limited (NHPC) and North-Eastern Electric
 Power Corporation Limited. Pursuant to the National Thermal Power
 Corporation Limited, the National Hydroelectric Power Corporation
 Limited and the North-Eastern Electric Power Corporation Limited
 (Acquisition and Transfer of Power Transmission Systems) Act, 1993
 (Power Transmission Systems Act) the right, title and interest of
 these three power generating companies in relation to the power
 transmission system, comprising the main transmission lines,
 including the extra high voltage alternative current transmission
 lines and the HVDC lines, and sub-stations, owned by them, were
 acquired by the GoI and transferred to the Company, with effect from
 April 1, 1992. Under the Power Transmission Systems Act, The Company
 acquired all the rights, liabilities, assets, leaseholds, powers,
 authorities and privileges and all movable and immovable property
 relating to the power transmission systems owned by the three
 generating companies. The Power Transmission Systems Act also
 provided that all employees of the three generating companies who
 were associated with power transmission systems would be deemed to be
 the employees of the Company. The right, title and interest of Neyveli
 Lignite Corporation Limited in the power transmission system were
 transferred to the Company with effect from April 1, 1992 under the
 Neyveli Lignite Corporation Limited (Acquisition and Transfer of
 Power Transmission System) Act, 1994. The transmission business of
 Nuclear Power Corporation Limited, including ongoing and new projects
 was transferred to The Company with effect from August 1991. The
 transmission assets of Tehri Hydro Development Corporation Limited
 have also been transferred to the Company with effect from August
 1993, pursuant to memorandum of understanding executed with the
 Company.
 
 National and Regional Load Despatch Functions
 
 In 1994, the GoI entrusted The Company with the further
 responsibility of controlling the existing load despatch centres in
 the country with a view to achieve better grid management and
 operation. Pursuant to this decision, the control of the five
 regional load despatch and communication centres was transferred to
 The Company in a phased manner between 1994 and 1996. The Company has
 undertaken the ULDC and communication project (ULDC Project) under
 which modernized load despatch facilities have been established in
 each of the five
 regional centres. The implementation of the ULDC Project has, amongst
 other things, caused the reduction of grid disturbances, improved grid
 reliability and facilitated the effective implementation of
 availability based tariff. NLDC main and back-up commenced commercial
 operation with effect from April 1, 2009. The NLDC is responsible for
 monitoring the operations and grid security of the national grid and
 supervises the scheduling and despatch of electricity over
 inter-regional lines in coordination with the RLDCs. The wholly-owned
 subsidiary, POSOCO, was incorporated in March 2009 to oversee the grid
 management function of the
 operations. It received the certificate of commencement of business
 under the Companies Act 1956 in March 2010 and commenced operations
 in October 2010. Accordingly, movable assets relating to RLDCs and
 NLDC and related documents have been transferred to POSOCO and are in
 operation under POSOCO since October 1, 2010.
 
 Designation as the CTU
 
 The Company was notified as the Central Transmission Utility by the
 GoI on December 31, 1998. We continue to be the CTU under the
 Electricity Act as per the notification issued by the GoI on November
 27, 2003. Amongst other functions, as CTU we are required to 
 
 (a) undertake transmission of electricity through the interstate
 transmission system; 
 
 (b) discharge all functions of planning and co-ordination relating to
 inter-state transmission systems, with certain specified authorities
 and stakeholders; 
 
 (c) ensure development of an efficient,
 
 coordinated and economical system of inter-state transmission lines
 for smooth flow of electricity from generating stations to load
 centres; and (d) provide non-discriminatory open access to its
 transmission system for use by any licensee or generating company on
 payment of transmission charges and to any consumer on payment of
 transmission charges and a surcharge thereon in accordance with the
 Electricity Act. Under the Electricity Act, the CTU is required to
 undertake the functions of the RLDC which is responsible for
 
 (a) optimum scheduling and despatch of electricity within the region,
 in accordance with the contracts entered into with the licensees or
 the generating companies operating in the region; 
 
 (b) monitor grid operations; 
 
 (c) keep accounts of quantity of electricity transmitted through the
 regional grid; 
 
 (d) exercise supervision and control over the inter-state
 transmission system; and
 
 (e) carrying out real time operations for grid control and despatch
 of electricity within the region through secure and economic
 operation of the regional grid in accordance with
 the grid standards and grid code. POSOCO has been entrusted with the
 responsibility to operate the RLDC pursuant to a notification dated
 September 27, 2010 issued by the GoI. Accordingly, POSOCO is
 responsible for overseeing the grid management function of the RLDCs
 and NLDC. However, the National Electricity Policy states that the
 existing arrangement of CTU operating the RLDCs will be reviewed by
 the GoI based on the experience of working with the existing
 arrangement. 
 
 Navratna Company
 
 On May 1, 2008, The Company was notified as a Navratna company by the
 GoI, through notification (DPE OM No. 26(3)/2005-GM-GL-92). As a
 Navratna company, we are eligible for enhanced delegation of powers
 to the Board, including 
 
 (a) power to incur capital expenditure for setting up new projects or
 expansion of existing
 projects, without governmental approval; 
 
 (b) ceiling on equity investment to establish financial joint
 ventures
 and wholly owned subsidiaries in India or abroad of 15% of the net
 worth of the Company in one project limited to Rs.10,000 million and
 the overall ceiling on such investments in all projects put together
 of 30% of the net worth of the Company; 
 
 (c) power to enter into merger and acquisitions subject to certain
 conditions; and 
 
 (d) power to further delegate the powers relating to human resource
 management (appointments, transfers, postings etc,) of below Board
 level executives to sub-committees of the Board or to executives of
 the Company as may be decided by The Board. Role in distribution
 reforms and rural electrification The Company has been assigned a
 significant role in relation to implementation of projects under the
 Rajiv Gandhi Grameen Vidyutikaran Yojana Scheme for Rural Electricity
 Infrastructure & Household Electrification (Rural Electrification
 Programme) for accelerated electrification of rural households to be
 undertaken in
 association with REC, the concerned state government and state power
 utility. 
 
 Major events
 
 1989 
 
 - The Company was incorporated as ‘National Power Transmission
 Corporation Limited’.
 
 1991 
 
 - Transmission assets from Nuclear Power Corporation Limited were
 transferred to the Company.
 
 1992
 
 - Transmission assets from NTPC, NHPC and North-Eastern Electric
 Power Corporation Limited were transferred to the Company, with
 effect from April 1, 1992, pursuant to legislation promulgated by the
 Parliament. The name of the Company was changed from ‘National Power
 Transmission Corporation Limited’ to ‘Power Grid Corporation of India
 Limited’.
 
 1993 
 
 - Transmission assets of Tehri Hydro Development Corporation Limited
 were transferred to the Company pursuant to a memorandum of
 understanding executed between the parties.
 
 1994
 
 - The Company entered into a memorandum of understanding with the
 MoP, which is revised annually. We achieved the highest rating of
 ‘Excellent’ under the memorandum of understanding. Transmission
 assets from Neyveli Lignite Corporation Limited were transferred to
 the Company, with effect from April 1, 1992, pursuant to legislation
 promulgated by the Parliament.
 
 1996 
 
 -  Five Regional Load Despatch & Communication Centres were in the
 management of the Company
 
 1998 
 
 -  The Company formulated an Environment and Social Policy and
 Procedures Code to deal with environmental and social issues relating
 to its transmission projects. The Company was formally notified as a
 CTU by the GoI. The Company was declared as a Mini Ratna Category I
 public sector undertaking by the GoI.
 
 2002
 
 - The unified load despatch and communications schemes for the
 northern and southern regions were commissioned. Part of the Sasaram
 HVDC back to back transmission system developed by The Company was
 commissioned contributing towards the development of the first phase
 of the construction of the National Grid. The Company was issued a
 registration for Infrastructure Provider Category- I (IP-I) from
 Director (BS-III), Ministry of Communications and Information
 Technology.
 
 2003 
 
 - The Company entered into a joint venture arrangement with The Tata
 Power Company Limited implementing a part of the entire transmission
 system associated with Tala Hydro-Electric Project. The 400 kV
 Raipur-Rourkela transmission line developed by The Company was
 commissioned and the Western region, Eastern Region and North-Eastern
 Region began operating in a synchronized manner with a cumulative
 capacity of 50,000 MW.
 
 - The Company secured its first international consultancy contract
 from Bhutan Telecommunications.
 
 - The Company was granted the License for maintaining and operating
 Internet Service on a non-exclusive basis in India pursuant to the
 License Agreement dated May 29, 2003 entered into with the Assistant
 Director General (LR V), DoT.
 
 2004 
 
 - The Company entered into an MoU with REC for undertaking rural
 electrification works under the Rajiv Gandhi Grameen Vidyutikaran
 Yojana.
 
 2005 
 
 - The unified load despatch and communications scheme for the eastern
 region was commissioned.
 
 2006
 
 - The unified load despatch and communications scheme for the western
 region was commissioned.
 
 - The Company was granted the license for installing, operating and
 maintaining the national long distance service network and providing
 national long distance service on a non-exclusive basis within the
 territorial boundaries of India pursuant to the License Agreement
 dated July 5, 2006 entered into with the Director (BSIII), DoT.
 
 2007
 
 -  Dedication of transmission system associated with Tala
 Hydro-Electric Project by the Prime Minister Dr. Manmohan Singh.
 Listing of our Equity Shares on the Stock Exchanges through an 
 initial public offer.
 
 2008 
 
 - The Company was declared as a Navratna public sector undertaking by
 the GoI.
 
 2009 
 
 - The National Load Despatch Centre was established.
 
 - The Subsidiary, Power System Operation Corporation Limited, was
 incorporated
 
 - The 220 kV Double Circuit Transmission line from Pul-e-Khumri to
 Kabul Transmission System (230 kms) in Afghanistan was completed.
 
 - Commissioning of the 220/110/20 kV Chimtala sub-station at Kabul,
 Afghanistan.
 
 - Commissioning of the commercial operations of the National Load
 Despatch Centre.
 
 2010
 
 - The Company was selected as a consortium member to implement the
 National Knowledge Network Project, a telecommunication
 infrastructure project. The Company entered into an MoU with Jamia
 Millia Islamia University for among other things, providing expert
 opinion and knowledge support in areas for deployment of new
 technology such as sub stations automation, System Operator in
 Supervisory Control And Data Acquisition technology/ EMS, etc.
 
 2011 
 
 - The Company participated in the TBCB for the first time.
 
 2012 
 
 - The Company test charged 1,200 kV UHVAC line (the highest voltage
 in the world) and established its first 1,200 kV test centre. The
 Company adopted vision statement world class, integrated, global
 transmission company with dominant leadership in emerging power
 markets ensuring reliability, safety and economy and based on this
 vision statement also restated the mission statement.The Company
 established India’s first Smart Grid Control Centre at Puducherry,
 under pilot project.
 
 2013
 
 - The Company received its international rating from S&P and Fitch
 rating, for the first time.
 
 - The Company became a part of the NOFN project.
 
 - The Company signed an agreement with six north eastern region
 states (Assam, Meghalaya, Mizoram, Manipur, Nagaland and Tripura) to
 provide consultancy services as project design cum implementation
 supervision consultant for implementation of the North Eastern Region
 Power System Improvement Project.
 
 Certifications, Awards and Recognitions
 
 The Company has received the ‘Excellent’ rating under the memorandum
 of understanding with
 the MoP from 1993-1994 to 2011-2012.
 
 2007 
 
 - The Company was certified for PAS 99:2006, which integrates the
 requirement of ISO
 9001:2008, ISO 14001:2004 and OHSAS 18001:2007 for standards in
 relation to quality,
 environment and occupational health and safety standards respectively
 with respect to design,
 engineering, procurement, constructionof transmission systems up to
 1200kV AC, +/-800 kV,
 HVDC, and operation, maintenance activities for transmission system
 up to 800kV AC & HDVC,
 Supervisory Control and Data Acquisition (SCADA), Energy Management
 Systems and
 Communication Projects. 
 
 2009 
 
 - The Company was awarded First Prize at IEEMA Power Awards 
 
 2009 
 
 - Ceremony for ‘Excellence in Power Transmission’ by NDTV Profit.
 
 - The Company was recognised for its meritorious performance by the
 MoP for the year 2007-08 and won a Gold Shield for the transmission
 system at North Eastern region, a Silver Shield for the transmission
 system at the Western region and a Silver Shield for the early
 completion of the 400 kV Gooty - Raichur D/C (Quad) transmission
 project. The Company was featured in the list of top 250 global
 energy companies compiled by Platts, a leading provider of energy and
 commodities information. The Company was also named amongst the
 fastest growing global energy companies ranking for 2009 issued by
 Platts.
 
 2010 
 
 - The Company was recognised for its meritorious performance by the
 MoP for the year 2009-10 and won a Gold Shield for the transmission
 system at Western region, a Silver Shield for the
 transmission system at the Eastern region and a Silver Shield for the
 LILO of one ckt. of 400 kV
 Maithon-Jamshedpur D/C at Mejia B.
 
 - The Company is certified with SA 8000:2008 for its Social
 Accountability System.
 
 - The Company was mentioned as being number 18 on the list of fastest
 growing Asian energy
 companies, according to the Platts Top 250 Energy Company Rankings
 for 2010.
 
 - The Company was also featured in the Forbes Global 2000 list.
 
 - The Company was awarded the ‘Scope Award for Excellence and
 Outstanding Contribution to
 the Public Sector Management (2008-09) in the Large Scale PSE
 Category’ by Standing
 Conference of Public Enterprises and DPE.
 
 2011 
 
 - The Company was awarded the ‘Environmental Excellence & Sustainable
 Development award- 2011’ by the Indian Chamber of Commerce.
 
 - The Company was recognised for its meritorious performance by the
 MoP for the year 2010-11 and won a Gold Shield for the transmission
 system at Eastern region, a Gold Shield for the
 transmission system at the North Eastern region and a Silver Shield
 for the transmission system at the Southern region.
 
 2012 
 
 - The Company was awarded the ‘Excellence in Innovation in Tower
 Management’ award at the
 INFOCOM CMAI National Telecom Awards 2011.
 
 - The Company was conferred with ‘PowerLine Awards 2012’ in the ‘Best
 Performing Transmission Company’ by Power Line magazine
 
 - The Company was awarded the ‘India Power Awards 2012’ under the
 ‘Largest Grid Operating
 PSU category by Council of Power Utilities.
 
 2013 
 
 - The Company was awarded the 4th DSIJ PSU Award 2012 for ‘Fastest
 Growing Navratna in Non-Manufacturing Category’ by Dalal Street
 Investment Journal.
 
 - The Company also won the ‘Jury Award’ in Governance Now PSU Awards,
 2013 by Governance Now, Institute for Competitiveness and Hammurabi
 and Solomon.
 
 - The Company was ranked as the ‘Best Company by country’ of All
 -Asia in Power Sector
 Category by Institutional Investors LLC.
Source : Dion Global Solutions Limited
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