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Directors'' Report 2018-19
The Board of Directors have the pleasure of presenting the Thirtieth Annual Report on performance of the Company together with the Audited Financial Statements for the financial year ended 31st March 2019.
Keeping in line with the past trend, Financial Year (FY) 18-19 has proved to be yet another year of excellence and achievements.
In FY 2018-19, Transmission assets consisting of 8,468 circuit km (ckm.) of Extra High Voltage (EHV) transmission lines, 40,119 Mega Volt Ampere (MVA) transformation capacity and 10 new substations have been added. This includes 3,543 ckm., 6000 MVA transformation capacity and 2 substations added during the year by the Company''s wholly owned subsidiaries. At the end of 31st March 2019, the total transmission assets of POWERGRID and its subsidiaries stood at 1,58,298 circuit km of transmission lines, 245 substations and 3,71,912 MVA of transformation capacity.
The major milestones achieved during FY 2018-19 are as below:
- Asset Capitalization of 727,325 crore including 76,633 crore through subsidiaries and Foreign Exchange Rate Variation (FERV) of 71,456 crore.
- Capital Investment of 725,807 crore including 74,008 crore in subsidiaries against the target of ? 25,000 crore.
- Transmission System Availability was 99.71% with number of trappings per line contained at 0.46.
- Total Income of 735,618.07 crore and Profit After Tax (PAT) of 79,938.55 crore on standalone basis and total Income of 735,661.32 crore and PAT of 710,033.52 crore on consolidated basis.
- Interim Dividend of 75.83 per share (Face Value ?10/- each) paid and in addition, recommendation made for 72.50 per share as final dividend for the FY 2018-19, subject to approval of shareholders.
- Inter-regional power transfer capacity of 8,400 MW added by the Company during the year. The cumulative inter-regional power transfer capacity added by the Company stood at 84,090 MW at the end of 31st March 2019.
- About 12,950 km of Optical Ground Wire (OPGW) network added by the Company and its subsidiaries to support voice and data communication with Regional Load Despatch Centres (RLDCs) / State Load Despatch Centres (SLDCs) for effective grid management.
- Telecom revenue rose to 7663.25 crore in the financial year ended on 31st March 2019.
- Consultancy revenue in the financial year ended on 31st March 2019 was 7610.93 crore.
- 220 kV Srinagar Leh Transmission System commissioned, thereby connecting strategically important Ladakh region with the National Grid.
- Total Income of subsidiaries crossed ?1,000 crore mark at ?1,056 crore and Profit After Tax stood at ?193 crore.
- POWERGRID acquired its first Intra-State Transmission Project through Tariff Based Competitive Bidding (TBCB) for evacuation of power from 2x600 MW Jawaharpur Thermal Power Plant and associated transmission system.
- Four TBCB subsidiaries viz. POWERGRID Parli Transmission Limited, POWERGRID Warora Transmission Limited, POWERGRID Jabalpur Transmission Limited and POWERGRID NM Transmission Limited became fully operational.
1.0 FINANCIAL PERFORMANCE
The Company maintained its sound Financial Performance in FY 2018-19. The Financial Performance during FY 2018-19 as compared to the previous year 2017-18 on standalone basis is summarized below:
(All Figures except per share data is in units as indicated)
US $ (M)
US $ (M)
Consultancy-Sale of Services
US $ (M)
US $ (M)
Profit After Tax (PAT)
Earnings per Share
Book Value per Share (7)
Gross Fixed Assets
Long Term Borrowings*
Debt Equity Ratio
Return on Net Worth
* Including current maturities of Long Term Borrowings. Convenience conversion at 1 US $ = 69.77 INR as on 31.03.2019.
1.1 DIVIDEND PAYOUT
For FY 2018-19, the Company has proposed a final dividend of 72.50 per share in addition to 75.83 per share of interim dividend paid in February, 2019 taking total dividend for the financial year 2018-19 to 78.33 per share. The total dividend payout for the year amounts to 7 4,357.91 crore (including an interim dividend of 7 3,050.02 crore). The final dividend shall be paid after your approval at the Annual General Meeting.
1.2 TRANSFER TO RESERVES
For the FY 2018-19, appropriation of profit has been made as follows:
a. General Reserve: 7 4,250 crore
b. Bonds Redemption Reserve: 7 2,029.20 crore
c. Self Insurance Reserve: 7 249.07 crore
2.0 MoU PERFORMANCE
The Company was rated ''Excellent'' for financial year 2017-18 for its performance against MoU with Ministry of Power, thereby continuing with the trend of consistently achieving ''Excellent'' rating since signing of its first MoU, for the year 1993-94.
3.0 OPERATIONAL PERFORMANCE
3.1 Asset Management
As on 31st March 2019, the transmission assets owned and operated by the Company (consolidated) consist of 1,235 lines and 245 nos. EHV substations including 15 nos. High Voltage Direct Current (HVDC) substations upto 800 kV level, 726 nos. transformers, 11 nos. STATCOMs, 5 nos. Static Var Compensators (SVC) besides Series Reactors and Thyristor Controlled Series Compensators (TCSC) /Fixed Series Compensators (FSC) at various places.
Reliable operation of such large and complex transmission network calls for maintaining the assets in utmost condition and the Company achieves this by meticulous advance planning as well as adopting best technological tools available for maintenance and monitoring of the transmission system. Some such state-of-the-art techniques being deployed for management of assets across the Company include On-line Condition Monitoring for Substation Equipment, On-line Transient Monitoring System, Aerial Patrolling, GIS Mapping etc.
3.2 National Transmission Asset Management Centre, Manesar (NTAMC) and Regional Transmission Asset Management Centers (RTAMCs)
NTAMC has been established for remote operation of the system and monitoring of various parameters at National level and ten numbers Regional Transmission Asset Management Centres (RTAMCs) for similar function at Regional level. During the year 2018-2019, 38 nos. of substations have been integrated in NTAMC for remote operations. With this, a total of 210 sub stations are now integrated under NTAMC for remote operation from control centers. These are manned by experts on 24x7 basis to provide expert handling of the system.
3.3 Operation & Maintenance Benchmarking in POWERGRID
To achieve optimum performance in all spheres of Operation & Maintenance (O&M) activities, the Company undertakes external as well as internal benchmarking. In the External Benchmarking process, the Company is a part of ''International Transmission Operation and Maintenance Study (ITOMS)'' - a global O&M benchmarking platform presently comprising 32 leading global power transmission utilities. The results of the benchmarking study are discussed and the best maintenance practices are shared amongst the participating utilities. The Company has consistently improved its performance in both line and substation categories.
Internally, the operational performance of regions are evaluated with the objective to identify gaps in operational practices of various regions, identify key initiatives and focus areas in an effort to bring, at par, the performance of regions. A benchmarking system has also been developed for regional O&M performance on monthly basis for critical parameters. The best practices of regions are shared on regular basis.
Measures/ initiatives, taken by the Company, to mitigate the challenges/ concerns have been described in the Management Discussion and Analysis (MDA) Report.
3.4 Adoption of latest technology for better availability of transmission lines
The Company has adopted various technological tools for ensuring better availability of transmission lines such as Aerial Patrolling of Transmission lines, App based Patrolling etc., the details of which are described in the MDA.
3.5 Other key operational achievements during the year
3.5.1 Overhauling of six number HVDC convertor transformers at Pusauli substation was carried out on site. This has saved time and money required for transportation of the transformers to the factory for overhauling.
3.5.2 Rigorous in-house protection audit of more than 80 substations was undertaken.
3.5.3 There has been no major outage of any station during the year.
3.6 Cyber Security
The Company is committed to security of its infrastructure assets from the risks associated with cyber security and has an Information Security Policy, implementation of which is reviewed annually through third party audits for ISO:27001 Certification. The cyber security preparedness of the Company''s businesses and cyber security initiatives are being reviewed by Chief Information Security Officer (CISO) through the Information Security Department. The Corporate Office and the Regional Headquarters are certified for ISO:27001 Information Security Management System. The advisories and guidelines issued by the designated statutory bodies, namely Indian Computer Emergency Response Team (CERT-In) and National Critical Information Infrastructure Protection Centre (NCIIPC) are complied with. The Company also participates in mock-drill programs organized by CERT-In. All concerned staff are sensitized in the area of cyber security through specific awareness programs.
The possible risks due to cyber-attacks are minimized by isolating grid connected intelligent systems from external data networks. Digital signals controlling operation of critical equipment are kept further confined and isolated by design to prevent any large scale cascade event.
4.0 PROJECT IMPLEMENTATION
4.1 Project Management
Efficient and timely implementation being the cornerstone of infrastructure projects, the Company undertakes detailed planning of the projects through various tools and processes such as Integrated Project Management and Control Systems (IPMCS) and Enterprise Resource Planning (ERP). Also, the projects under implementation are regularly reviewed at various levels to pre-empt/ address any obstacles faced in timely implementation. Interactive meets with Industry partners are also a regular feature with the objective of sharing industry best practices and resolution of issues. To further bolster business relationships, the Company has been annually felicitating the vendors for their performance.
4.2 Physical Achievements
4.2.1 A number of important and critical pending projects, which were stuck up due to Right-of-Way (RoW) issues in different States, were completed through Company''s persistent efforts and with the help of Hon''ble PM''s institutional project monitoring platform - ProActive Governance & Timely Implementation (PRAGATI) and constant support from Ministry of Power, Minister of State for Power (Independent Charge), Central Electricity Authority (CEA) and the States'' administration.
The list of projects completed by the Company during the year includes Inter-Regional Schemes, renewable energy integration linked, projects for cross border interconnections etc.
- 765kV Double Circuit (D/C) Jharsuguda-Dharamjaygarh line (between Eastern and Western Regions); and
- 765kV D/C Banaskantha-Chittorgarh line & Banaskantha Substation (between Western and Northern Regions).
Renewable Energy Integration linked
- 765kV Single Circuit (S/C) Dharampuri-Madhugiri (Tumkur) line;
- 765kV D/C Bhuj Pool-Banaskantha line & Bhuj substation;
- 400kV D/C Kadapa-Hindupur-NP Kunta System & Kadappa Gas Insulated Substation (GIS);
- 400kV D/C Banaskantha-Sankhari transmission line;
- 400kV D/C Mundra UMPP-Bhuj transmission line;
- 400kV D/C Tumkur (Pavagada)-Hiriyur transmission line;
- 400kV D/C Bhadla (POWERGRID) - Bhadla (RVPN) transmission line along with 1X500 MVA ICT at 765/400/220kV Bhadla (POWERGRID) substation;
- 400/220kV Tirunelveli Pooling Station (GIS) 2x500 MVA ICTs; and
- 2x1500 MVA 765/400kV ICTs at Srikakulam alongwith bay extension at Srikakulam.
Cross border interconnections
- 400kV D/C (Quad) Punatsangchu-Alipurduar transmission line (Indian Portion of Indo-Bhutan transmission line).
Other Major transmission lines and substations
- 765kV D/C Angul-Jharsuguda transmission line;
- 2nd Ckt. of 765kV D/C Orai-Aligarh transmission line & Orai ICT;
- 400kV D/C Silchar-Melriat transmission line;
- 400kV D/C Dharampuri-Somanhali transmission line;
- 400kV D/C Kota-Jaipur (South) transmission line;
- 400kV D/C Farakka-Baharampur transmission line;
- LILO of both circuits of Bamnauli-Samaypur 400kV D/C transmission line at Tughlakabad along with GIS;
- 132kV S/C Tezu-Namsai transmission line (strung on D/C towers) & Namsai substation; and
- STATCOMs at Lucknow, Nalagarh, Kishenganj, Ranchi, Jeypore, Gwalior, Aurangabad & Solapur.
Projects implemented by subsidiaries acquired through TBCB
- POWERGRID Parli Transmission Limited
S 765kV D/C Warora pooling station-Parli transmission line;
S 765kV D/C Parli (New)-Solapur transmission line;
S 765/400kV pooling station at Parli (2x1500MVA);and S 400 kV D/C (Quad) Parli (New)-Parli (PG) transmission line.
- POWERGRID Warora Tranmission Limited
S 765kV D/C Gadarwara-Warora transmission line;
S 765/400kV pooling station at Warora (2x1500MVA);and
S LILO of both circuits of 400kV D/C Wardha-Parli (PG) at pooling station near Warora.
- POWERGRID Jabalpur Transmission Limited
S 765kV D/C Vindhyachal-Jabalpur transmission line.
- POWERGRID NM Transmission Limited
S 765kV S/C Salem-Madhugiri transmission line;
- POWERGRID Southern Interconnector Transmission System Limited S 400kV D/C Srikakulam-Garividi transmission line; and
S 400kV D/C Cuddapah-Madhugiri transmission line.
5.0 CAPITAL INVESTMENT AND FUND MOBILIZATION
During the year, the Company made a capital investment (CAPEX) of 725,807 crore. Towards this, 711,112 crore were mobilized through private placement of bonds & term loans, 76,808 crore were mobilized through External Commercial Borrowings (ECB)/ Suppliers'' Credit, 77,282 crore from Internal Resources and 7605 crore in form of grants received from Power System Development Fund & from Central Financial Assistance (Ministry of New and Renewable Energy).
The Company signed following new loan agreements during FY 2018-19:
- Unsecured Syndicated Term Loan facility of JPY 22 billion with Sumitomo Mitsui Banking Corporation (SMBC), Aozora Asia Pacific Finance Ltd. and The Bank of Yokohama.
- Term Loan facility of € 200 million from ''KfW, Frankfurt am Main, (''KfW''), Germany for financing high capacity transmission projects, first such loan agreement signed by the Company under KfW''s ''Promotional Loan Category''.
- Term Loan of 7 10,000 crore from State Bank of India.
Investment approvals for transmission projects worth about 7 3,000 crore have been accorded during the year.
6.0 COMMERCIAL PERFORMANCE
The Central Electricity Regulatory Commission (Sharing of Inter-State Transmission Charges and Losses) Regulations, 2010, which came into effect from 01.07.2011, provides for computation of Point of Connection (PoC) charges and losses for sharing of transmission charges. The recovery of transmission charges for the services provided by the Company for Designated Interstate Customers (DIC) is based on the Sharing Regulations, 2010 and subsequent amendments thereof. As per the CERC Sharing Regulations, the Company, as Central Transmission Utiliy, raises bills for transmission charges on the beneficiaries i.e., DICs on behalf of all ISTS Licensees in the country and collects & disburses the payments to the Licensees as per the provisions of the said regulations. The Company is fulfilling the assigned responsibilities effectively and achieved collection efficiency of 94.6% for FY 2018-19.
CERC has notified Tariff Regulations, 2019 vide notification dated 7th March 2019 for the tariff block 2019-24. The salient features of the Tariff Regulations, 2019 are highlighted in the MDA section.
7.0 SUBSIDIARIES ACQUIRED THROUGH TARIFF BASED COMPETITIVE BIDDING (TBCB)
The Company has 13 nos wholly owned subsidiaries acquired through TBCB, and 7 of these are under commercial operation. The detailed information about Company''s TBCB subsidiaries and their performance has been described in MDA section.
8.0 STRENGTHENING OF NATIONAL GRID AND CROSS BODER INTERCONNECTIONS
8.1 Inter - Regional Power Transmission Capacity
Two inter-regional transmission lines have been commissioned during the year, viz., 765kV D/C Banaskantha-Chittorgarh transmission line, 765kV D/C Jharsuguda-Dharamjaygarh transmission line, thereby increasing inter-regional power transfer capacity by 8,400 MW.
With this addition by the Company and further 4200 MW added by other transmission licensees during the year, cumulative interregional power transfer capacity of the National Grid stood at 99,050 MW as on 31st March 2019.
8.2 Cross-Border Interconnections
Presently, electrical interconnections with neighboring countries- Nepal, Bhutan, Bangladesh and Myanmar exist with aggregate power transfer capacity of 3150MW. The interconnections are being further strengthened for increased exchange of power. Some of the upcoming and planned interconnections are as under:
8.2.1 Interconnections with Nepal
- Gorakhpur (India) - New Butwal (Nepal) 400 kV D/C (Quad) transmission line is under discussion.
- Up gradation to rated voltage of 400kV D/C Muzaffarpur - Dhalkebar transmission line.
8.2.2 Interconnections with Bhutan
- For evacuation of power from various upcoming hydro - electric power projects (HEPs) in Bhutan, Jigmeling (Bhutan) - Alipurduar (India) 400kV D/C (Quad) transmission line is under implementation.
8.2.3 Interconnections with Bangladesh
- Baharampur (India) - Bheramara (Bangladesh) 400kV D/C 2nd transmission line is under implementation.
- Katihar (India) - Parbotipur (Bangladesh) - Bornagar (India) 765kV D/C transmission line is under discussion.
- Upgradation of Surajmaninagar - Comilla D/C line at 400kV alongwith 500MW HVDC Back to Back at Comilla.
9.0 CONNECTIVITY, LONG TERM ACCESS (LTA) & MEDIUM TERM OPEN ACCESS (MTOA)
POWERGRID as CTU, being the nodal agency for processing & grant of Connectivity, Long Term Access (LTA) and Medium Term Open Access (MTOA) has granted Connectivity to 449 nos of eligible applications for a quantum of about 1,86,597 MW and has granted LTOA/LTA to 237 nos applications for a quantum of about 1,05,122 MW so far. In addition, based on the transmission capacity margins availability, the MTOA has also been granted to 138 nos of applications for a total quantum of about 14,517 MW by 31st March 2019.
10.0 QUALITY MANAGEMENT
Quality Management System has been implemented in the Company, adopting best practices to ensure quality of goods procured as well as quality of physical works in the field. To accomplish this, apart from procuring goods at competitive prices and revision of technical specifications, lot of efforts have been put on quality assurance and various measures have been taken as mentioned below:
- Developed and maintained systems and procedures aligned with integrated management system comprising ISO 9001: 2015 for Quality Management System, ISO 14001:2015 for Environmental Management System and OHSAS 18001:2007 for Occupational Health and Safety Management System. BSI Group India has maintained the certification after rigorous audits. Systems were also audited for maintenance of Social Accountability Standard, SA: 8000, Energy Management Systems as per ISO: 50001 and Information Security Management Systems as per ISO:27001.
- With a target to move towards zero product inspection as per POWERGRID quality policy, inspections at some of the manufacturing units of towers, conductor, cables, transformer oil etc. were reduced after thorough process audits as per standardized guidelines. Man-days saved were used for process audits at other manufacturing units for system improvements.
- Special program was conducted wherein QCI-MSE meet for ZED i.e., Zero Defect Zero Effect was organized. Program was a huge success and was appreciated by all Medium and Small Enterprises (MSE) and Quality Council of India (QCI) team.
- To ensure availability of spares for ease of maintenance, efforts have been made over the years towards indigenization, due to which most of 765kV Class Transformers/ Reactors/other equipment and even some of GIS equipment are presently being supplied from India itself. New plants and facilities have been set-up in India by a number of foreign manufacturers for equipment like GIS equipment upto 765kV, Optical Ground Wires (OPGW), 765kV reactors, STATCOM etc., thus contributing to ''Make In India'' program.
- The Company promoted a number of existing vendors to upgrade their equipment to higher voltage level & cover more items to increase vendor base thus creating more competitive environment.
11.0 INFORMATION TECHNOLOGY AND ENTERPRISE RESOURCE PLANNING
11.1 As part of continued efforts towards paper-less office, transparency and digitalization of communication, the e-office system has been implemented and made operational. Online web-streaming facility has commenced for training programs. This facilitates live participation across the country and also helps in archiving of training sessions in document repository for future references.
11.2 The ERP System implementation has been successfully completed in all regions in phases. The additional functionalities have also become operational in the integrated ERP system as discussed herein below.
11.2.1 As part of digital initiative, POWERGRID Online Payment Utility (POPU) application Portal has been developed for receiving all types of payments to POWERGRID. This has resulted in 100% digitalization of payment receipts by POWERGRID.
11.2.2 All payments being made by POWERGRID have been totally centralized with ERP system. This facilitated better management of working capital and cash-flow needs at optimal levels in a cost-effective manner.
11.2.3 Company''s establishments throughout the country have been facilitated with biometric attendance system, which has been integrated with ERP system
12.0 TECHNOLOGY DEVELOPMENT
During the year, POWERGRID Advanced Research & Technology Centre (PARTeC) commenced its full-fledged operation. The facility is equipped with state-of-the-art laboratories consisting of power system analysis and real time simulation facility, protection, automation and control facility, Wide Area Measurement System (WAMS) facility, Equipment Diagnostics facility, Calibration and Diagnostics facility, Material Science facility and Smart Grid facility. Various studies on power system, substation automation system, Phasor Measurement Units (PMUs), material analysis, equipment diagnosis and calibration are being conducted to cater to the in-house requirement of organization. The facilities are also being used as a training facility for imparting hands-on training programs on substation automation system, smart grid etc. to engineers of the Company as well as of various utilities.
Software system for fault detection of Transformer, based on the data acquired from online Dissolved Gas Analysis sensors installed on various transformers, has been developed in-house. This is being operated at NTAMC and all RTAMCs of the Company. With the use of this system, the Company envisages to take timely action for preventing failures of transformers/ reactors.
A mobile capacitor bank at 33kV level, to meet the needs of distribution companies for utilization at low voltage system conditions, has been developed and successfully field tested in Haryana Vidyut Prasharan Nigam Limited (HVPNL) system. Its effect on distribution system has been studied with respect to the HVPNL system and the results obtained are affirmative.
13.0 SMART GRID AND E-VEHICLE CHARGING
13.1 Smart Grid Knowledge Centre
The Company has established Smart Grid Knowledge Center in association with Ministry of Power, Govt. of India at PARTeC, Manesar. The Centre is equipped with various working models and functionalities pertaining to Smart Grid and aims to bring awareness on the applications of Smart Grid technologies and its demonstration in a holistic manner. The Centre is providing learning environment and capacity building on all major smart grid attributes viz., Advanced Metering Infrastructure, SCADA, Outage Management System, Renewable Integration, Microgrid, Smart Home, EV with Renewable Charging Infrastructure and Cyber Security etc. to the stakeholders.
13.2 Smart Transmission
Towards Smart Transmission, the Company is implementing WAMS based Unified Real Time Dynamic State Measurement (URTDSM) project. This involves placement of PMUs at all 400kV and above substations, generation switchyards of 220kV and above, HVDC terminals and Phasor Data Concentrator (PDC) at SLDCs, RLDCs & NLDC control centres along with OPGW based backbone communication infrastructure.
During the year, 154 nos PMUs (for 44 stations) and 12 nos PDCs at SLDCs and RLDCs were added by the Company to enable synchronous measurement of real time grid parameters across the widely spread grid with low latency in data transfer to control centres, which would be very effective in reliable, secure and economical grid operation. With this, cumulative PMUs and PDCs commissioned by the Company as on 31st March 2019 stood at 1,319 nos. (for 329 stations) and 29 nos (for all RLDCs and 24 SLDCs) respectively.
13.3 EV Charging Infrastructure
The Company is promoting electric vehicles in the country by installing EV chargers & using electric vehicles for office purpose. It has established its first e-taxi charging station at Hyderabad Metro.
14.0 INTEGRATION OF RENEWABLE ENERGY (RE)
Large scale renewable penetration in the grid leads to challenges towards evacuation and its integration. The Company has been working towards implementation of Green Energy Corridors (GEC) - Inter-State Transmission System (ISTS) at 765kV and 400kV level in renewable resource rich states in the country.
The Company has also evolved a comprehensive transmission plan for grid integration of various Renewable Energy Zones (66.5 GW) in the country.
15.0 Renewable Energy Management Centres
To enable forecasting of renewable resources and efficient management of intermittent renewable generation, the Company, on behalf of Govt. of India, is establishing Renewable Energy Management Centres (REMCs) at 11 (eleven) locations in various SLDCs/ RLDCs/ NLDC.
16.0 ENERGY EFFICIENCY
Realizing the significance of energy saving aspect of sustainable development, the Company is aggressively pursuing business opportunities in energy saving by way of conducting energy audits of various Govt. as well as private agencies e.g. industries, institutions, commercial establishments, State Transmission Utilities etc. The Company is a BEE Grade-I Energy Service Company (ESCO) for undertaking energy efficiency projects and has a large pool of certified energy auditors/energy managers who are well qualified to offer energy efficiency solutions.
During the year, the Company secured a no. of consultancy assignments in the energy audit business as below:
- Energy auditing of Power Transmission Corporation of Uttarakhand Limited (PTCUL) substations along with assessment of transmission losses.
- Preparation of 14 nos. Investment Grade Energy audit report for various cities under ''Atal Mission for Rejuvenation and Urban Transformation (AMRUT)'' Scheme of Govt. of India.
- Energy audit of transmission network of BSES Rajdhani Power Limited (BRPL) through Delhi Electricity Regulatory Commission (DERC).
Futher, the Company, has signed an MoU with Uttar Pradesh Power Corporation Limited for replacement of agricultural pumps, which shall pave the way for ESCO projects in Uttar Pradesh. The Company is also exploring possibility of cooperation with IIT Roorkee to work in the mutually agreed areas such as space cooling, lighting power quality and waste to energy. The Company is also empaneled now with Energy Management Centre, Kerala as an energy auditing agency and is exploring avenues for working together in the areas of mutual interest in Energy Management.
17.0 TELECOM BUSINESS- ''POWERTEL''
Leveraging its country-wide transmission infrastructure, the Company under the brand name ''POWERTEL'' is providing a range of services under its Unified License as National Long Distance (NLD) and Internet Service Provider - Category ''A'' (ISP-''A'') Service authorizations.
The Company has undertaken expansion of the network using 200G DWDM system, to double the existing capacity (12 Tbps) in next two years. The Company is also partnering with last mile connectivity providers and State Electricity Boards for Right of Way (RoW), fiber leasing, etc. to increase its network reach, its presence and potential business opportunities. As a result, the network coverage has increased to more than 60,900 km by the end of FY 2018-19 from about 47,700 km in the previous year.
The Company has been displaying excellent performance in the areas of providing telecom bandwidth, Mutliprotocol Label Switching (MPLS) based Virtual Private Network (VPN), internet and other communication services to Telecom Service Providers, Government departments and enterprise customers. The Telecom Backbone Availability for the FY 2018-19 was 99.98%.The Company has a strong portfolio of diverse customers due to its excellent availability and reliability. A number of customers from various segments have reposed their trust in the reliability of Telecom Services rendered by the Company by continuing to place the orders on it on long term basis. This has resulted into continuous growth of revenue from Telecom business in spite of consistently falling tariffs.
17.1 Bharat Net
In line with the vision of the Government to connect 250,000 Gram Panchayats (GP) under ''Bharat Net'' towards digital India, the Company, under its scope, is laying optical fibre cables to connect to Gram Panchayats, wherever required. As per the revised scope of work under Phase-I, 39 districts spread across 5 States viz., Andhra Pradesh, Telangana, Himachal Pradesh, Jharkhand & Odisha, covering 10,436 GPs, have been allotted to the Company, by Bharat Broadband Network Limited (BBNL). Out of these, 9,793 GPs have been connected on fibre by the end of FY 2018-19.
In Phase-II of project, the Company has been assigned the work of development of network in 2 states, i.e. Uttarakhand (5,706 GPs) and Himachal Pradesh (2,994 GPs). Survey work and tendering activities of contracts for implementation of projects are under progress.
17.2 Enterprise and Internet Service Provider (ISPs) Business
Connectivity to Enterprise Segment Customers is provided on Company''s MPLS Cloud. The Company provides both Layer-2 and Layer-3 VPNs with port capacity ranging from 2 Mbps to 10 Gbps.
Company 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 facilitates them to offer better internet services to their users in a cost effective manner.
17.3 Telecom Tower Business
With a view to increase the Company''s telecom services portfolio and to provide a green and clean solution to bridge the urban-rural telecom divide in the country, it has been exploring the use of its transmission towers as telecom towers and also to provide power to the associated telecom equipment viz., mobile antennae, MW antennae, electronic equipment etc., placed on the tower. The Company had undertaken a pilot in this regard in 2017 which has been in successful operation since then. Subsequently, the Company had approached the regulator, CERC for its approval for utilization of transmission assets for telecom tower business. CERC has recently allowed POWERGRID to go ahead to provide transmission line towers for Telecom application with suitable revenue sharing with the beneficiaries. Company''s extensive transmission tower network will provide backbone telecom network and will eliminate the location disadvantage of small distant towns towards accessibility and affordability of high speed internet.
17.4 POWERGRID is endowed with attributes essential for Data Centre business viz., reliable power, telecom connectivity and secure space. Accordingly, the Company is working on a business strategy for Data Centre business opportunity.
18.0 BUSINESS DEVELOPMENT & CONSULTING SERVICES
Utilizing its expertise in project management as well as technical capabilities established over the years in the core areas of power transmission, sub-transmission, distribution management, load dispatch and communications, Smart Grid etc., the Company is providing its services as consultant/ training partner to various agencies within as well as outside the Country.
18.1 Domestic Market
During the year, the Company successfully commissioned the prestigious and challenging 220kV Srinagar- Alusteng-Drass-Kargil-Leh Transmission Project. The project was implemented by the Company on behalf of Govt. of India, as Project Management Consultant. With its commissioning, the strategically important Ladakh region of Jammu & Kashmir has now been electrically connected to the ISTS (Northern) Grid. The project was dedicated to the Nation by Hon''ble Prime Minister on February 3, 2019.
Besides, on behalf of Govt. of India, the Company is also implementing, as a Consultant, important projects in difficult geographic terrains of Sikkim and NER. Under the NER Power System Improvement Project (NERPSIP), funded by The World Bank & Govt. of India, transmission schemes in 6 States of NER are being implemented. During the year, 23 elements were commissioned including transformation capacity addition of 312 MVA. Further, the Company is acting as Consultant to Govt. of India for its ''Comprehensive Scheme for Strengthening of Transmission & Distribution in Arunachal Pradesh & Sikkim'' project.
The Company received about 50 new consultancy assignments in domestic market during FY 2018-19. The major consultancy assignments during the year 2018-19 include:
- Implementation of Smart Grid Projects in 19 Towns of Jammu & Kashmir under Prime Minister Development Package (PMDP).
- Construction of substation bays at POWERGRID substations (ISTS Grid) for injection of power from various renewable (Wind & Solar) developers.
- Diversion works of various transmission lines of POWERGRID infringing the corridor of ''Purvanchal Expressway'', being constructed by Uttar Pradesh Expressways Industrial Development Authority (UPEIDA)
- Diversion works of various transmission lines of POWERGRID for National Highways Authority of India (NHAI).
- Diversion of 25 transmission lines in Gujarat & Maharashtra for upcoming high speed rail Corridor from Ahmedabad to Mumbai (Bullet Train Project).
The Company has entered into a Memorandum of understanding (MoU) with Neyveli Lignite Corporation (NLC) for development of Neyveli Township of NLC as mini Smartcity having all attributes of Smartcity.
18.2 International Market
On the International front also, the Company has been providing consultancy to various clients. During the year, the Company successfully completed the following Consultancy assignments:
- Prestigious ''CASA 1000 Project'' planned for export of surplus power to Afghanistan & Pakistan from hydroelectric projects of Kyrgyzstan & Tajikistan.
- Second Block of 1x500MW HVDC back to back station at Bheramara (Bangladesh) to facilitate enhancement of interconnection capacity between India and Bangladesh.
Power Grid Company of Bangladesh (PGCB) placed another order for providing consultancy services for establishment of 500MW HVDC Back-to Back station, interconnecting Surajmaninagar (India) and Comilla North (Bangladesh).
During the year, the Company secured ten nos of consultancy assignments, which include ''Project Management Consultancy Services for Transmission System associated with Arun-3 HEP in Nepal'', consultancy services for Design & Construction of 400kV D/C Transmission line associated with Punatsangchu-I and II Hydroelectric projects, study tour to India for delegates of Southern African power Pool etc.
The Company has signed a Memorandum of Cooperation with Korea Electric Power Corporation (KEPCO) for a period of two years to promote bilateral cooperation, explore the business opportunities and develop business in power sector. Areas of cooperation shall cover transmission lines & substations construction, O&M, power system reliability and efficiency enhancement, Smart Grid including AMI, EV charging, micro grid etc.
19.0 CONTRIBUTION IN GOVT. OF INDIA SCHEMES FOR DISTRIBUTION REFORMS
The Company has been making valuable contribution in Govt. of India''s schemes related to distribution reforms in the Country.
The Company has achieved its assigned targets of releasing service connections in the States of Odisha, Uttar Pradesh, Jammu and Kashmir by December 2018, under the Govt. of India mission of connecting each and every household.
19.1 Rural Electrification (RE) works under Deen Dayal Upadhyaya Gram Jyoti Yojana (DDUGJY)
Under GoI''s DDUGJY/ Prime Minister''s Development Package (PMDP) for rural electricity infrastructure and household electrification, the Company has so far implemented infrastructure work for rural electrification in ninety five (95) districts of Ten (10) States in the country at a cost of about Rs,10,802 crore. Till date, total infrastructure has been created for electrification of 87,838 nos. villages (including partially electrified & un-electrified villages) and service connections have been provided to about 49.49 lakhs BPL households.
Further, RE works under DDUGJY/PMDP schemes in 8 districts of J&K are also in progress where the scope includes 4 nos 33kV substations in Jammu, 5 Nos 33kV substations in Kashmir and 2 nos 66kV & 2 nos 33kV substations in Leh & Kargil areas.
Progress of RE works in FY 2018-19 is as below:
19.1.1 RE Works in Odisha
Village infrastructure was completed in 4,249 villages and 4,98,197 service connections were provided. Augmentation work of 64 nos 33kV substations, out of total 89 substations completed.
19.1.2 RE Works in J&K
Village infrastructure was completed in 190 villages and 6,040 service connections were provided. Work in 2 substations of 33kV in Jammu and 1 substation in Kashmir is in progress.
19.1.3 RE Works in Uttar Pradesh
Village Infrastructure was completed in 345 villages and 17,380 service connections were provided. Augmentation work of
5 nos 33kV substations was completed and 2 new 33kV substations have also been charged.
20.0 CONSERVATION OF LAND AND ENVIRONMENTAL CONCERNS
Transmission projects are considered by and large environmentally benign due to the fact that they don''t involve disposal of any pollutants/ waste in various environmental matrices, i.e. air, water or soil. Nevertheless, the Company, being a responsible corporate entity, addresses any residual environmental or social impacts associated with its business following the cardinal principles of Avoidance, Minimization and
Mitigation as outlined in its Environmental and Social Policy & Procedure (ESPP). In doing so, it leverages the role of technology by not only adopting the existing modern technological tools and technologies developed in different parts of the world but also emphasizes on in-house technology development meeting the national requirement.
In a country like India, which caters to 18% of the world population, while having 2.4% of world''s land mass, conflicts related to land resources are not uncommon due to presence of different competing user groups. The Company, as a firm believer in addressing the pressing social needs of the society, has always been forthcoming in up gradation and adoption of new and better technologies such as Gas Insulated Switchyard (GIS) which requires lesser area compared to the traditional Air Insulated Switchyard (AIS). Additionally, it has taken a policy decision to secure land for its substations through direct purchase on willing buyer-willing seller basis on market/negotiated rate to avoid public resistance and court intervention faced during land acquisition. Land for Jeerat, Chandauti, Saharsa & Sitamarhi substations were secured through this method during the year.
Another area where it is able to make significant contribution in reducing land requirement is Right of Way (RoW) through innovative tower designs such as special compact tower, pole type tower and Multi-circuit towers. These technological interventions not only reduced the requirement of precious land resources and social risks to projects but also helped in preservation of environment by minimizing forest and vegetation involvement. Further, construction of High Capacity Power Transmission Corridors (HCPTCs) for transmitting power at higher voltage levels (765kV HVAC, ±800kV HVDC) not only reduced transmission losses but also ensured transmission of more power per unit of RoW (MW/meter of RoW).
In the area of environmental preservation also, adoption of new and modern technologies has helped the Company by putting it firmly on the path of Sustainable Development. In addition to technologies indicated above, adoption of tools like Remote sensing and GPS has resulted in the selection of most optimum route for the transmission lines, thus, avoiding/ minimizing environmentally sensitive areas such as Forest, Protected Areas, important wetlands, important Bird and Biodiversity Areas, elephant corridors etc.
Another key initiative to reduce environment footprint includes up gradation of existing lines by reconductoring them with advanced conductors to enhance the carrying capacity of such lines. This has helped in saving lot of forest and tree cover which might have been affected, if new lines were to be constructed for such enhanced transmission of power. Recognizing the importance of solar power in combating Climate change and in-line with GOI''s commitment towards Paris Agreement, the Company is in the process of installing 5 MWp Rooftop Solar PV Systems in its premises, covering more than 50 locations. This initiative will result in saving of 7-8 million units (MUs) of Grid connected energy per annum, thereby, reducing atmospheric emission of 35,916 mT of CO2 per year. Another significant innovation done by the Company is the use of inductive power in earth wire for powering of telecom antennas. This inductive power which otherwise goes waste will eliminate the use of DG sets (a constant source of pollution and Green House Gas emission) for powering of telecom Base Transceiver Station (BTS) units. The technology has been successfully tested at pilot scale and regulatory approval of the CERC has also been received. Other initiatives in this direction are making Rain Water Harvesting an integral part of substation design, installation of LED bulbs & solar street lighting in substation, fuel catalysts devices for Diesel Generator (DG) sets etc., which further strengthened the Company''s agenda of sustainable development.
21.0 CORPORATE SOCIAL RESPONSIBILITY
The Company discharges its Corporate Social Responsibility (CSR), by committing itself to contribute to the society, through initiatives that have positive impact on society at large, especially the community in the neighborhood of its operations. The main objective of CSR initiatives is improvement in the quality of life of marginalized and under-privileged sections of the society residing around its areas of operation. With this approach, the Company carries out various CSR activities with thrust on Rural Development, Infrastructural Development, Skill Development, Health, Education, Environment etc.
During FY 2018-19, the Company spent 7195.52 crore and sanctioned more than 200 CSR projects of value of approx. 7360 crore, that will be executed over the next 2-3 years. Focus area of the Company''s CSR activities during FY 2018-19 were education and health initiatives in line with Govt. of India targets besides infrastructure development in rural areas like construction of community centres, internal roads, culverts as well as projects like installation of solar street lights, drinking water facility etc. The company provided ambulances, conducted health check-up camps and provided infrastructural support to government hospitals/ Community Health Centre/Primary Health Centre, etc. and organized livelihood generating skill development programmes for youths through various government agencies.
To help economically weak patients and their attendants, creation of patient support infrastructure at prominent health centres, like AIIMS, State Govt. Medical Colleges, and Hospitals etc., has been given special focus over the last few years. In this direction, the Company has constructed 300 bedded ''POWERGRID Vishram Sadan'' at J.P. Apex Trauma Centre, AIIMS, New Delhi, which was dedicated to the nation by the Hon''ble PM on 29th June, 2018. Seven more ''POWERGRID Vishram Sadans'' are being established in the Govt. hospitals at Luck now, Patna, Guwahati, Ranchi, Bengaluru, Darbhanga and Vadodara, where outpatients from distant locations approach for specialised medical treatment.
During the year, Company participated in ''Swachh Bharat Abhiyan'', as a part of Swachhta initiative. Besides construction of toilet blocks in Government schools, construction of individual households'' toilets for development of primitive tribal groups was also taken up across the Country. ''Swachhta Pakhwada'' was also observed in all units of the Company across the Country.
The Company has its owned and operated Skill Development Centres in eight of its Substations in Assam, Manipur & West Bengal, which impart training on Transmission Line Tower Erection. Besides, the Company has also tied up with Indo-German Institute for Advanced Technology (IGIAT), Vizag and Indo German Tool Room (IDTR), Indore for imparting high-end skill training to youths on a residential basis in their campus. About 1,100 youths were trained during FY 2018-19 and most of them are gainfully employed
Details of the CSR policy are available on Company''s website, at http://10.100.18.171/sites/default/files/CSR_Policy_2015_0.pdf. The Annual Report on our CSR activities is enclosed as Annexure XI of the Directors'' Report.
22.0 CITIZEN''S CHARTER
Citizen''s Charter has been formulated for the Company providing a visible front of its Vision, Mission and Objectives., The Citizens'' Charter consisting of Company profile, commitments, expectations from citizens, Integrated Management Policy, services offered, values and standards of services, access to information and grievance redressal is available on its website.
23.0 OUR PEOPLE - OUR STRENGTH
The Company, being a service organization, has always recognized People as its core strength and it firmly believes that employee growth and organizational growth move in sync and this can be delivered largely through a well-articulated learning and development system within the organization together with a culture of mutual respect and trust.
As on March 31, 2019, the employee strength of the Company stood at 9,255 as against 8,900 on March 31, 2018, which is exclusive of the employees on Contract.
23.1 Human Resource Development
Committed to the cause of continuous learning and development of its people, the Company has established ''POWERGRID Academy of Leadership (PAL)'', a state-of-the-art, world class institute at its Manesar complex near Gurgaon. The facility provides a wide range of training including induction, hands-on, managerial and behavioral programs to its employees. These programs, in the electricity sector, cover areas such as sector overview, transmission technology & system management, hotline maintenance, Smart Grid & Distribution Management, behavioral/ leadership development programs etc.
During the year, the Company conducted 825 training and development programs, at its PAL facility, its Employee Development Centres in regions and also at premium educational institutes and centres of learning in India and abroad. Further, the Company''s web based competency based training management system has been upgraded with updated competency directory. An android-based mobile app ''PAL Manesar'' has been developed to make it easy for employees to access many web based applications from their handheld devices.
In FY 2018-19, the company carried out a current state assessment of its HR processes and practices against the globally acclaimed People Capability Maturity Model (PCMM) framework. The company was one of the few organizations in Public Sector assessed to be at Maturity level 3. The existing HR Processes and practices in the company are being further strengthened and upgraded in line with PCMM. Through PCMM implementation, the company aims to streamline and align its policies and practices to global best practices. PCMM''s emphasis on commitment, measurement and improvement will lead to a stronger foundation for continual business excellence through workforce and process capability improvement.
The Company is also leveraging its people capabilities and the physical infrastructure at PAL to provide customized functional and behavioral programs on consultancy basis to external (domestic and international) stakeholders also. Training programs carried out through Ministry of External Affairs (MEA) for South African Power Pool comprising a number of South African nations and Capacity Building & Institutional Strengthening (CBIS) programs for North Eastern States were some important training assignments taken up during the year.
23.2 Employee Welfare
The Company is continuously updating its welfare policies in line with industry trend and to meet the changing needs for its employees. Issues are successfully addressed through the National and Regional Bipartite Committee (PNBC/PRBC), a joint consultative forum comprising management and workmen representatives elected through secret ballot. Wage Revision of Executives, Supervisors and Workmen effective from 1st January, 2017 has been implemented during the year.
23.3 Grievance Redressal
Grievance redressal is always taken-up on priority in the Company. Both employee grievance and public grievance are given utmost importance and efforts are made to resolve them promptly. A dedicated team monitors and ensures grievances are redressed timely and impartially under strict & unbiased framework after thoroughly analysing the facts and data. The same is reviewed regularly by the senior management. The employee grievance is accorded top priority and the Company has a 3-tier structure for expeditious resolution of grievance within the broad framework of policy guidelines.
23.4 Ensuring Social Justice
The Company has constituted a separate cell to look after and safeguard the statutory provisions for SC/ ST/ OBC & Persons with Disabilities (PwD) categories of employees. The reservation cell assists the Liaison Officer who looks after the welfare & safeguard of SC/ ST/ OBC & PWD employees. Liaison Officer also ensures that there is no discrimination on the basis of caste, religion & disabilities amongst the employees. To ensure effective discharge of duties by Liaison Officer across all establishments of the company, separate Liaison Officer for each region has been nominated. The Company implements all directives and guidelines with regard to reservation policy issued by Government of India. Annual inspection is also conducted to ensure implementation of directives issued by GoI. Periodic meeting is also held with representative of the association of SC/ ST and OBC to resolve issues, if any.
The company is also committed to gender diversity and considering that women constitute 7.42% of its total workforce, the Company continuously strives to make the workplace, safe and better, for its women with its policy interventions and learning and development initiatives. The HRD Deptt of the Company also designs specific women-centric programs with focus on empowerment and mentorship for women and special programs are also conducted on the International Women''s Day.
23.5 Sports and Cultural Activities
The Company organizes Intra & Inter-regional Sports Competitions for Cricket, Badminton, Volleyball, Athletics, Kabaddi, Football, Chess, Carrom, Table Tennis, Bridge etc. and participates in the Inter-CPSU Sports meets organized under the aegis of Power Sports Control Board. POWERGRID team has emerged winners in Table Tennis, Cricket, Chess (women) and runners up in Volleyball, Badminton (women), Kabaddi and Athletics. One of our employees, Shri J. Mukherjee stood first in National Championship in Para Table Tennis and represented Indian team at the International Paralympic Championship 2019 held in Amman, Jordan and won the Silver medal for the country.
Cultural programs are regularly conducted at various establishments of the Company for promoting healthy community living; and festivals are celebrated collectively by organizing milan samaras and other activities etc.
24.0 PREVENTION OF SEXUAL HARASSMENT AT WORKPLACE
As per the requirement of the Sexual Harassment of Women at Workplace (Prevention, Prohibitions and Redressal) Act, 2013, and Rules made thereunder, Internal Complaint Committees (ICC) are in place to redress complaints received regarding sexual harassment. The Company has been conducting training/ workshop both for male and female employees sensitising them about the issues and laws relating to Sexual Harassment.
During the year, 05 such training programmes were conducted across the organization. There was no complaint of sexual harassment during the year.
25.0 IMPLEMENTATION OF OFFICIAL LANGUAGE (RAJBHASHA)
The Company is sensitive towards its responsibilities, heritage, social and cultural values. In pursuance of Govt. of India''s Rajbhasha Policy to promote Indian languages and Rajbhasha Hindi, the Company has made all round efforts to integrate and promote use of Hindi in its official works at all levels.
To ensure the increased use of Official language, various activities such as Annuvad Abhayaas Karyakram, workshops, trainings, motivational programs are organized in the Company. Computer trainings are imparted to enhance the working knowledge in Hindi on computers. Hindi classes are also being organized for non-Hindi speaking employees through Hindi Teaching Scheme. Lectures on heritage, social and cultural concerns are also being delivered by eminent scholars on regular basis to motivate the employees towards increased working in Hindi.
Various activities are undertaken to publicize the Rajbhasha, e.g. Akhil Bhartiya Rajbhasha Sammelans, Technical conferences in Hindi, Kavi Sammelans (Poetry sessions), Plays, publication of monthly articles in Hindi via emails etc. Also, various Hindi competitions are being conducted in the organization throughout the year with special emphasis during Hindi Pakhwada, Swachchta Pakhwada, Vigilance Awareness Week, Qaumi Ekta Saptaah, Pt. Deen Dayal Upadhyay Janmshati Diwas etc. along with departmental meetings as well as Official Language Implementation Committee (OLIC) meetings. The Company''s Hindi library is considered as one of the best Hindi libraries among Public Sector Undertakings. More than 14,500 books, 53 Hindi Magazines on various topics and 16 Hindi daily newspapers are available for the employees.
Attractive incentive schemes for employees working in Hindi have been implemented as per the government guidelines. Also various award and reward schemes have been introduced to encourage employees to actively participate in promotion of Hindi, by giving articles/ write-ups for in-house magazines, reading library books etc.
For creating awareness among the employees, and to motivate them to maximize use of Hindi in official works and for publicity of official language, All India Official Language Conference Cum Technical Seminars were organized at eight places during the year by the Company. During the daylong events, employees from different regions of the Company along with various member offices of Town Official Language Implementation Committee participated where different sessions on official language, as well as on technical topics e.g. health, information technology etc. and multi-topic quiz were held.
The efforts made by the Company were recognized in several fora during the year 2018-19. Various awards were conferred by different Town Official Language Implementation Committee (TOLICs) under the aegis of Ministry of Home Affairs, Govt. of India regarding best
Implementation of Official Language. Besides, Company''s efforts were also appreciated during various inspections and discussions of the Hon''ble Committee of Parliament on Official Language and by Hindi Advisory Committee meetings on different occasions.
26.0 STAKEHOLDER ENGAGEMENT & CORPORATE IMAGE
The Company has been persistently working towards building a long term sustainable relationship with its stakeholders and it has always believed that reliable and timely communication is the hallmark of stakeholder engagement.
For internal stakeholders, communication streams such as e-magazines like Communiqué and Cue; display magazine LOUNGE and quarterly magazines published by regional offices regularly apprise the employees about the developments, achievements, events, and also the viewpoints of management.
Regular interactions between management, analysts and other stakeholders have been instrumental in bringing transparent work culture in the organization. Evocative films and documentaries, made on specific projects (Srinagar Leh Transmission System and IPDS works in Varanasi) captured and highlighted the hard work and project management skills of the workforce of the Company.
The Company also regularly participates in various domestic and international exhibitions and during the year 2018-19, it participated in such conferences including those in Myanmar, Nigeria, Russia and Abu Dhabi where it displayed its competencies and capabilities.
27.0 RIGHT TO INFORMATION
In compliance to ''Right to Information Act, 2005'', an appropriate mechanism is in place across the Company for promoting transparency and accountability, wherein the Company has nominated Central Public Information Officer / Appellate Authorities at its Corporate Office and Regional offices across the country to provide required information under the provisions of Act.
Further, for effective processing, monitoring, and management of RTIs and Appeals, a web-based online RTI Portal has been developed in POWERGRID. The RTI portal is envisaged to facilitate timely reply of RTI/ Appeal to the applicant by real time monitoring of RTIs / Appeals. Also, the portal facilitates in generation of various RTI reports, knowledge sharing with regard to replies, latest RTI circulars and guidelines etc.
In FY 2018-19, total 1,501 nos. of RTI applications were received in the Company and processed as per the Act. RTI Awareness Programs/ Workshops were organized in different regions to apprise the employees with latest updates on the RTI Act, 2005 and Central Information Commission (CIC) decisions.
28.0 COMMITMENT TO TRANSPARENCY & VIGILANCE FUNCTION
Recognizing the importance of good governance, the Company advocates the principles of Transparency, Probity and Ethics in its management functioning. The Vigilance Department of the Company functions as an integral part of the management. The department ensures that best ethical practices are followed in the organization.
- Emphasis on Preventive Vigilance
Although the Vigilance Department performs preventive, proactive, as well as punitive functions to strengthen the organizational process and to minimize the malpractices in various systems and activities of the organization, the emphasis is on preventive and proactive vigilance. While preventive vigilance focuses on whether the right type of systems exist or need to be re-engineered, proactive vigilance aims at the identification of opportunities and in taking pro-active action against potential threats.
During FY19, 47 surprise inspections and 59 Chief Technical Examiner (CTE) Type inspections/ process-on-line inspections were conducted. Pursuant to Vigilance inspections and observations/recommendations, many system improvements in various functions of the organizations have been implemented.
- Preventive Vigilance Workshops as part of Capacity Building
As part of Capacity Building, Workshops on Preventive Vigilance were conducted at the Corporate Centre as well as at various Regions of the Company. During the year, 23 Preventive Workshops were conducted for 690 non-vigilance personnel. The Preventive Vigilance Workshops contain module of Ethics Management which enables the employees to identify and deal with ethical dilemma.
- Vigilance Awareness
In pursuance of the directions of Central Vigilance Commission, the Vigilance Awareness Week 2018 was observed by POWERGRID in all its offices across the Country from 29.10.2018 to 03.11.2018 in line with the theme for this year Eradicate Corruption- Build a New India.
Vigilance Awareness Week was celebrated with great enthusiasm and fervour across all offices in India and abroad along with the management, its employees and their family members.
The Week commenced with the Integrity Pledge in Corporate Office and across all offices of the Company and was extended to all the stakeholders. To sensitize the next-gen to the ethical values, a number of activities were organized in more than 350 schools and colleges involving more than 40,000 students.
Walkathons were conducted in around 200 establishments wherein the employees along with their families participated holding placards on integrity, honesty etc. Nukkad Natak with the theme of integrity and transparency were organized in prominent places involving more than 20,000 people. ''Awareness Gram Sabhas'' were conducted touching more than 15,000 villagers for dissemination of awareness in Gram Panchayats to sensitise citizens on the ill- effects of corruption. CANDOUR, the official journal of POWERGRID Vigilance department was released during the Vigilance Awareness Week. In line with Go Green Initiative of the Company, the journal was released in digital form (e-CANDOUR).
29.0 DISASTER MANAGEMENT
The Company has always been at forefront when it comes to contribution in restoration of the power system as well as providing manpower and relief material in any area hit by natural calamity. In August 2018, when devastating floods caused major damages in the State of Kerala and the distribution system of Kerala was affected, the Company provided assistance in restoration of system by setting up on - Site testing facility and repair workshops for distribution transformer at Kochi, Trichur and Pathanamthitta. Restoration of 110 kV Neriamangalam- Kuthungal line was done by directly connecting to substation through stringing across the river. Replacement of medical equipment in Govt. Hospital at Pampa- Sabarimala along with restoration of the Hospital was also carried out. In addition to this, support was also extended by supplying common relief material in flood - affected districts.
The employees of the Company also supported in the rebuilding efforts through contribution to Chief Minister''s Relief Fund and supporting the cleaning up activities.
30.0 PROMOTION OF MICRO, SMALL AND MEDIUM ENTERPRISES (MSMEs)
In line with Govt. of India directives for promotion of MSMEs, the Company has been complying with the guidelines. The Company has been registered on Trade Receivable e-Discounting System (TReDS) platforms of Receivable Exchange of India Limited (RXIL). Trade Receivables Discounting System (TReDS) is the scheme for facilitating the financing of trade receivables of MSMEs from corporate and other buyers, including Government Departments and Public Sector Undertakings (PSUs), through multiple financiers. The Company is continuously pursuing with its MSME suppliers to get themselves on-boarded on TReDS Platforms, for which detailed guidelines have been provided in ''Tender'' section of the Company''s official website www.powergridindia.com. Suitable provisions have already been incorporated in the Bidding Documents of the company for procurements of various products produced and services rendered by Micro and Small Enterprises in line with amendment to the Public Procurement Policy (Order 2012) in November 2018. The company has achieved the target of mandatory procurement of 25% out of total annual purchases of products and services rendered by Micro and Small Enterprises in line with Public Procurement Policy (Order 2012) read in conjunction with its amendment in November 2018. Total eligible value of annual procurement of goods produced and services rendered by MSEs (including MSEs owned by SC/ST and women entrepreneurs) for financial year 2019-20 is projected to be in the range of 7 1,000 crore.
Further, to encourage and develop Micro and Small manufacturers for supply of innovative & quality products, MSE vendor development programs were conducted during the year at various locations across the Country, wherein presentations were made and discussions were held with numerous small manufacturers of our Country. A number of Micro, Small & Medium Enterprises have been developed as sub-vendors and approved for supply of components for various equipment.
31.0 MANAGEMENT DISCUSSION AND ANALYSIS
In addition to the issues stated in the Directors'' Report, some issues have been brought out in report on Management Discussion and Analysis placed at Annexure-I and forms part of the Financial Report.
32.0 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 Report.
33.0 CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE EARNINGS AND OUTGO
Pursuant to Section 134(3) (m) of Companies Act, 2013 read with Rule 8 of The Companies (Accounts) Rules, 2014 information relating to ''Conversation of energy, technology absorption and foreign exchange earnings and outgo'', is given in Annexure-III to this Report.
34.0 RISK MANAGEMENT POLICY
Information on Risk Management Framework is covered in the Management Discussion and Analysis Report attached as Annexure-I of this Report.
35.0 INTERNAL FINANCIAL CONTROLS AND ADEQUACY
The Board has adopted policies and procedures for ensuring the orderly and efficient conduct of its businesses, including adherence to the Company''s policies, the safeguarding of its assets, the prevention and detection of frauds, error reporting mechanism, the accuracy and completeness of the accounting records and the timely preparation of reliable financial disclosures.
36.0 STATUTORY AUDITORS OF THE COMPANY
The Statutory Auditors of The 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 2018-19.
The Statutory Auditors have given an unqualified report. The report is self-explanatory and does not require any further comments by the Board.
37.0 COMPTROLLER AND AUDITOR GENERAL''S COMMENTS
Company has received ''NIL comments on the accounts for the year ended March 31, 2019 by the Comptroller and Auditor General of India under Section 143(6) of the Companies Act, 2013. Copy of the same is attached as Annexure - IV to this Report.
38.0 SECRETARIAL AUDITOR
Kumar Naresh Sinha & Associates, Practicing Company Secretary has conducted Secretarial Audit of the Company for the financial year ended March 31, 2018. The Report forms part of this Annual Report (Annexure-V).
The Secretarial Auditor have reported that 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 observation that:
Provisions of Regulation 17(1) of Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 and Para 3.1.4 of DPE Guidelines on Corporate Governance with regard to Composition of the Board of Directors have not been complied with during the financial year under review.
The explanation, on the observation of Secretarial Auditors, is as under:
Your Company, being a Government Company within the meaning of Section 2(45) of Companies Act,2013, the power to appoint Directors on the Board vests with the Govt. of India. Against the requirement of seven Independent Directors on your Company''s Board during the year, five Independent Directors were on the Board. Thus, the Company has not been able to comply with provisions of Regulation 17(1) of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 and DPE Guidelines on Corporate Governance with regard to Composition of the Board of Directors during the financial year under review. The matter is being pursued with the Administrative Ministry for filling up of existing vacancies of Independent Directors.
39.0 COST AUDITORS OF THE COMPANY
The Company appointed M/s R. M. Bansal & Co., Cost Accountants and M/s Chandra Wadhwa & Co., Cost Accountants as Cost Auditors for the Financial Year 2018-19 under Section 148 of the Companies Act, 2013.
The Cost Audit Reports for the FY 2018-19 will be filed with the Cost Audit Branch, Ministry of Company Affairs before due date.
40.0 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.
41.0 COMPANY''S BOARD
The composition of Board of Directors underwent some changes during the year 2018-19.
Shri I.S. Jha demitted the office of Chairman & Managing Director on 21st January, 2019, consequent on his appointment as Member, Central Electricity Regulatory Commission. The Board, on its behalf & all the employees of the Company, placed on record their deep sense of appreciation and gratitude for his valuable contribution and commitment to take the Company to new heights.
The Ministry of Power, vide Office Order dt. 21.01.2019, entrusted the additional charge of post of Chairman & Managing Director (CMD) to Shri Ravi P. Singh, Director (Personnel) for period of three months. The Ministry of Power, vide Office Order dt. 13.06.2019, has further extended tenure of Shri Ravi P. Singh as CMD for a period of six months w.e.f. 21.04.2019 or till the appointment of a regular incumbent, or until further orders, whichever is the earliest.
Shri Prabhakar Singh, Director (Projects) also demitted the office on 30th June, 2018, upon attaining the age of superannuation. The Board acknowledges the contribution of Shri Prabhakar Singh in various roles he handled during his tenure. Mrs. Seema Gupta, Director(Operations) was given the additional charge of the post of Director (Projects) vide Office Order of MoP dt. 09.07.2018 for a period of three months. Shri R. K. Chauhan, assumed the charge of Director (Projects) with effect from 23rd August, 2018.
Ms. Bharati, Joint Secretary, MoP ceased to be Govt. Nominee Director on 13.02.2019. Shri Vivek Kumar Dewangan, JS & FA, MoP, who was on the Board of the Company since 26.04.2018 ceased to be Govt. Nominee Director on 07.06.2019. The Board places on record its appreciation for the valuable contribution, guidance & support given by Ms. Bharati and Shri Dewangan.
Shri Ghanshyam Prasad, Chief Engineer, Ministry of Power, was appointed as Govt. Nominee Director on 01.03.2019.
Shri Sunil Kumar Sharma and Mrs. A. R. Mahalakshmi were appointed as Independent Directors w.e.f. 23.07.2018 and 26.07.2018, respectively vide Ministry of Power Office Order dt. 17.07.2018.
Shri J. I. Patel, Independent Director appointed w.e.f. 17.11.2015 for a period of three years vide GOI Order dated 17.11.2015. Shri Patel was reappointed for further period of one year from the completion of his earlier tenure.
Shri M. N. Venkatesan, appointed as an Independent Director w.e.f. 11.07.2019 for a period of three years vide GOI Order dated 11.07.2019 Shri Anurag Agarwal, AS&FA, Ministry of Power, appointed as a Govt. Nominee Director on the Board of POWERGRID w.e.f. 27.06.2019 ceased to be Director on 12.07.2019.
In accordance with the provisions of the Companies Act and the Articles of Association of the Company, the resolutions w.r.t. reappointment of Shri Ravi P. Singh (DIN: 05240974) as Director liable to retire by rotation; appointment of Shri Rajeev Kumar Chauhan (DIN: 02018931) as Director; reappointment of Shri Jagdish Ishwarbhai Patel (DIN: 02291361) & appointment of Shri M. N. Venkatesan (DIN: 02126022) as Independent Directors have been included in the Notice of Annual General Meeting.
42.0 NUMBER OF MEETINGS OF THE BOARD
Board of Directors met 13 times during the financial year 2018-19. Details regarding dates and attendance of the Board meetings are provided in the Report on Corporate Governance, which forms part of this Report.
43.0 COMMITTEES OF THE BOARD
The Company has Audit Committee, CSR Committee, Nomination and Remuneration Committee, Stakeholders'' Relationship Committee, and some other Committees for operational convenience of the Company. The composition and scope of the aforesaid Committees are provided in the Report on Corporate Governance.
Report on the Corporate Governance (Annexure-VII), together with the Certificate thereon (Annexure-VIII) are attached to this Report.
44.0 DECLARATION BY INDEPENDENT DIRECTORS
During the year, 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.
45.0 PERFORMANCE EVALUATION OF DIRECTORS
The Ministry of Corporate Affairs (MCA) vide Notification dated 5th June, 2015 has exempted Government Companies from the provisions of Section 178 (2) of the Companies Act, 2013 (the Act), which provides for manner of evaluation of performance of Board, its Committees and Directors by Nomination and Remuneration Committee. The requirement of mentioning a statement on the manner of formal evaluation of performance of directors in Boards'' Report as per section 134(3) (p) of the Act has also been done away with for Government Companies, where the directors are evaluated by the Ministry or Department of the Central Government which is administratively in charge of the company, as per its own evaluation methodology. Further, MCA vide its notification dated 05th July, 2017 has made an amendment in the Schedule IV of the Act, whereby it has exempted Government Companies from complying with the requirement of performance evaluation by the Independent Directors of non-independent directors and Chairman and performance evaluation of the Independent Directors by the Board, if the concerned departments or ministries have specified these requirements.
The Department of Public Enterprises (DPE) has laid down a mechanism for performance appraisal of all Functional Directors. DPE has also initiated evaluation of Independent Directors.
The Company enters into Memorandum of Understanding (MoU) with Ministry of Power (MoP) every year wherein Company is evaluated on various financial and non-financial parameters. The performance of the Company & Board of Directors is evaluated by the Department of Public Enterprises in terms of MoU entered into with MoP.
In terms of Regulation 25 of SEBI LODR, 2015, the performance of the Board as a whole and non-independent directors including Chairman & Managing Director were evaluated by the Independent Directors in a separate Meeting held by them on 14th March, 2019..
46.0 POLICY ON DIRECTORS'' APPOINTMENT AND REMUNERATION
The Company has framed a policy on the remuneration of the Directors, KMPs and employees as required under the provisions of Section 178 of the Act. The said policy is available on our website at https://www.powergridindia.com/sites/default/files/Investor_Relation/Reports_Filings/Code_of_Conduct_Policies/04_Remuneration%20Policy.pdf
47.0 PARTICULARS OF LOANS, GUARANTEES OR INVESTMENTS
Loans, Guarantees or investments under Section 186 of the Companies Act, 2013 form part of the Notes to Financial Statements (Note No. 58) provided in this Annual Report.
48.0 PARTICULARS OF CONTRACTS OR ARRANGEMENTS WITH RELATED PARTIES
Particulars of contracts or arrangements with related parties referred to in Section 188 (1) of the Companies Act, 2013, in the prescribed Form AOC-2, are given as Annexure IX of the Directors'' Report. Further, attention of the members is drawn on Note No. 58 of the Financial Statement which sets out related party disclosures.
49.0 SUBSIDIARIES AND JOINT VENTURES
As on 31st March 2018 The Company has 13 subsidiaries and 13 Joint Ventures Companies.
A statement containing salient features of the financial statements of our Subsidiaries and Joint Ventures are covered in the Management Discussion and Analysis and also annexed in the prescribed format AOC-1 as Annexure X.
50.0 DIVIDEND DISTRIBUTION POLICY
As per regulation 43A of the SEBI (Listing Obligation and Disclosure Requirements) Regulations, 2015 (the Listing Regulations), the top 500 listed companies shall formulate a dividend distribution policy. Accordingly the policy was adopted to set out the parameters and circumstance that will be taken into account by the Board in determining the distribution of dividend to its shareholders and/or retained profits earned by the Company. The policy is also available on the Company''s website https://www.powergridindia.com/sites/default/files/ Dividend%20Distribution%20Policy.pdf
51.0 SIGNIFICANT MATERIAL ORDERS
There are no significant and material orders passed by the Regulators or Courts or tribunal impacting the going concern status and Company''s operations in future.
52.0 DIRECTORS'' RESPONSIBILITY STATEMENT
As required u/s 134(3)(c) & 134(5) of the Companies Act, 2013, The Directors confirm that:
(a) i n 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 basis;
(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.
53.0 ACCOLADES & AWARDS
During FY 2018-19, the Company has been conferred following important awards/ accolades:
- Fastest Growing Electric Utility in Asia- for the fifth successive year since 2014, based on Platts Top 250 Global Energy Company Rankings. Globally, the Company was positioned as the 3rd Fastest Growing Electric Utility;
- FBIP Award 2019 for Best Performing Power Transmission Utility for its outstanding contribution to the power transmission sector in the country;
- CBIP Special Jury Award for Innovation Excellence in Power Transmission;
- F latinum Prize (1st prize) in Power Sector Category at the 6th FICCI Quality Systems Excellence Award;
- 0 ne of the Top 25 Most Innovative Companies in India at the 5th CII Industrial Innovation Awards 2018 - only power sector CPSE in the list;
- Good Corporate Citizen Award category at PHD Annual Awards for Excellence 2018;
- Fwards for Overall Best Overall Navratna, Best Navratna in Services and Electricity: Power Transmission categories at Dun & Bradstreet PSU Awards 2018;
- 0018 EEI Asia-Oceania Index Award at EEI (Edison Electric Institute) Global Electrification Forum, for Highest Total Shareholder Returns in Gold Large Capitalization category;
- 0ML Munjal Award for Business Excellence through Leadership and Development for 2018 in PSU Services category;
- Ohird Prize in Public Sector Enterprises category at the National Competition for Innovative Training Practices (2017-18) by Indian Society for Training & Development;
- I ndia Concord Summit (ICS) 2018 PSU Award for Best HR Practices by a PSU-Navratna;
- FT2GOOD rating at the second edition of ET2GOOD 4GOOD Ratings conferral ceremony for All-Round Excellence in CSR for 2016-17
- Gold Certificate for Best CSR Practice at the Haryana CSR Summit 2018 by Govt. of Haryana;
- 0 old Medal for Corporate Social Responsibility presented by the Hon''ble Governor of Telangana & Andhra Pradesh and President of the Indian Red Cross Society;
- Best CEO Award to CMD, POWERGRID in PSU category at Business Today Best CEO Awards
- Felicitation of CMD, POWERGRID at the PSE Excellence Awards 2018 by Indian Chamber of Commerce;
- 0 rs. Seema Gupta, Director (Operations) awarded Best Contribution Award at the ITOMS International Conference at Kuala Lampur, Malaysia;
- Winner in the Power category at Dun & Bradstreet Corporate Awards 2018 and in Power Transmission category at Dun & Bradstreet Infra Awards 2018;
- Strategic Performance and Consistent Growth Award at the 6th PSU Awards by Governance Now.
The Board of Directors would like to express their deep sense of appreciation for the guidance and co-operation received from Government 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 & Climate Change, Ministry of Railways, Ministry of Corporate Affairs, , Central Electricity Regulatory Commission, Appellate Tribunal for Electricity, Central Electricity Authority, NITI Aayog, Department of Public Enterprises, Regional Power Committees, Office of the Comptroller and Auditor general of India, and other concerned Govt. departments/ agencies/statutory authorities at the Central and State level without whose active support, the achievements of the Corporation during the year under review would not have been possible.
The Board also conveys its gratitude to your Company''s 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 the support and co-operation your Company has been receiving towards successful implementation of various projects by the Company.
The Directors also acknowledge the valuable suggestions and guidance received from the Statutory Auditors during the audit of accounts of the Company for the year under review.
The Board also conveys its sincere thanks to National and International financial institutions, multilateral Financial Institutions, domestic & international Credit rating agencies for their assistance, continued trust and confidence reposed in the Company.
On behalf of Board of Directors, I would also like to thank the Executive team for their strong leadership, the employee unions for their support and our employees at all levels for their commitment and dedicated efforts which have enabled the Company to continue to be the World''s premier transmission utility.
For and on behalf of the Board of Directors
Place: New Delhi Director (Personnel) & CMD
Date: 19th July, 2019 DIN:05240974