An overview…

Power Grid Corporation of India Limited

OS

deptt., PO

WE

RG

RID

Areas of OperationAreas of Operation

Telecom

Development of Central Sector Transmission

System

Grid Management

• Generation Linked

• Grid Strengthening

• Inter-regional links

• International links

• Estb. of modern Load Despatch Centres

• Real-time Grid Operation

• Optimum scheduling & despatch

• Owns & Operate Fibre optic cable network

• Licenses - IP-I, ISP and NLDO

Consultancy National &

International

• Transmission• Load Dispatch &

Communication• Distribution• Telecom

OS

deptt., PO

WE

RG

RID

POWERGRID – A snapshotPOWERGRID – A snapshot

Line length

HVDC System

500 kV – 4368 ckm

AC System

765 kV – 1297 ckm

400 kV – 47261 ckm

220 kV – 7823 ckm

132 kV – 2241 ckm

66 kV - 37 ckm

Total - 63027 ckm

Substations 109 no.

Transformation capacity 62852 MVA

As on 01.09.07

Carries 42 - 45% of India’s power Network availability > 99% (99.66%)

OS

deptt., PO

WE

RG

RID

Equipment Population

AC systemLines - Total 461 nos.

765 kV - 6 nos.

500 kV HVDC – 4 nos

400 kV – 290 nos

220 kV – 124 nos

132 kv – 36 nos.

66 kV - 1 no

AC Transformers 212

Shunt Reactors 314

HVDC Transformers 72

Circuit Breakers 1810

CT 4240

CVT 2940

LA 3110

HVDC system

No. of HVDC lines 4

No. of HVDC back to back stations 4

Major ElementsMajor Elements

Asset classification

• Internally - 8 Regions with RHQs at – NR-I, Delhi– NR-II, Jammu– ER-I, Patna– ER-II, Kolkata– WR-I, Nagpur– WR-II, Vadodara– SR-I, Hyderabad– SR-II, Bangalore– NER, Shillong

• For tariff purpose – 5 regions– ( NR, ER, WR, SR & NER )

Reduced grid disturbancesReduced grid disturbances

No major grid disturbance in last 4½ years Transmission losses 3-4% in line with international standards

Grid Disturbances

74

53

72 1 03 4 0 0 0 0

0

20

40

60

80

100

2001-02 2002-03 2003-04 2004-05 2005-06 2006-07

Year

No

s.

Minor Major

Physical performancePhysical performance

Transmission network addition (Ckt Kms)

12436

19171

55000

0

10000

20000

30000

40000

50000

60000

IX Plan X Plan Expected XI Plan

(1997-98 to 2001-02) (2002-03 to 2006-07) (2007-08 to 2011-12)

Sub-stations Addition (Nos.)

14

36

65

0

10

20

30

40

50

60

70

80

IX Plan X Plan Expected XI Plan

Nos

.

(1997-98 to 2001-02) (2002-03 to 2006-07) (2007-08 to 2011-12)

Physical performancePhysical performance

Capital expenditureCapital expenditure

(Rs. in Crore)

8532

18865

55000

0

6000

12000

18000

24000

30000

36000

42000

48000

54000

60000

IX Plan X Plan XI Plan(1997-98 to 2001-02) (2007-08 to 2011-12)(2002-03 to 2006-07)

Monitored Performance Parameters of Transmission System

• Availability – Availability of the transmission system

• Reliability – No. of trippings per line attributable to POWERGRID

Performance of the transmission system during against MoU target

98.2

5

99.1

7

98.2

5

99.3

9

98.5

99.2

897

.5

99.4

3

98.5

99.7

5

97.5

99.5

9

98.5

99.6

5

97.5

99.6

98.5

99.1

7

97.5

99.4

8

98.5

99.5

2

96

96.5

97

97.5

98

98.5

99

99.5

100

2001-2002 2002-2003 2003-2004 2004-2005 2005-2006 2006-2007 2007-2008

MOU Tgt Actual MOU tgt - NER Actual - NERYEAR

AV

AIL

AB

ILIT

Y IN

%

5.55.6

5.55.5

5.00

4.00

3.00

5.63

4.86

3.95

3.253.52

3.64

0.78

0

1

2

3

4

5

6

2001-2002 2002-2003 2003-2004 2004-2005 2005-2006 2006-2007 2007-2008

MOU Tgt ActualYEAR

Target for 1st quarter of 07-08 = 0.82 (Target for Unplanned trippings only)

Upto June'07

No. of tripping / line - MOU Target Vs Actual (Reliability factor )

Capacity Addition Programme (MW) -XI PlanCapacity Addition Programme (MW) -XI Plan

Type Central Sector

State Sector

Private Sector

Total

Thermal 26,800 24,347 7,497 58,644

Hydro 9,685 3,605 3,263 16,553

Nuclear 3,380 - - 3,380

Total 39,865 27,952 10,760 78,577

Source: Ministry of Power (May’07)

Ultra Mega Power projects (UMPP) of about 12000 MW is also envisaged

XI PLAN INVESTMENT PROGRAMMEXI PLAN INVESTMENT PROGRAMME

S. No TYPE OF PROJECT/SCHEME Project Cost Outlay

1 On -Going Schemes 28586 19733

2 Under Investment Approval

- Transmission schemes 14438 12463

- Tr. System associated with Sasan (4000 MW) and Mundra (4000MW) UMPPs 9869 5366

3 New Schemes

-System under Finalisation 10457 6051

- Schemes under initial stage of discussion 19100 9769

4 Inter-State Tr. System for DVC Projects 5000 1100

5 Investment in JVs 4850 379

6 Completed Schemes 6050 58

Grand Total 98350 54920

≈ 55,000

An investment of about Rs. 55,000 Crore is estimated by POWERGRID covering more than 115 no. of projects/ schemes

Proposed Funding for XI PlanProposed Funding for XI Plan

IEBR for XI Plan, considering IPO, sale of securitised bonds is summarized as under:

S. No

Description Amount (Rs in Crore)

i. Internal Resources 16,500

ii. Domestic loans 22,980

iii. Foreign loans 15,520

Tied-up(PSDP-III & ADB-III of USD 400 million each)

2,800

New loan of USD 1000 million from ADB and first tranche of 600 million from WB under discussion

6,560

Un-tied 6,160

Total IEBR (i+ii+iii) 55,000

Plan wise PerformancePlan wise Performance

PHYSICAL PERFORMANCEPHYSICAL PERFORMANCE

Transmission network addition (Ckt Kms)

12436

19171

55000

0

10000

20000

30000

40000

50000

60000

IX Plan X Plan Expected XI Plan

(1997-98 to 2001-02) (2002-03 to 2006-07) (2007-08 to 2011-12)

PHYSICAL PERFORMANCEPHYSICAL PERFORMANCE

Sub-stations Addition (Nos.)

14

36

65

0

10

20

30

40

50

60

70

80

IX Plan X Plan Expected XI Plan

Nos

.

(1997-98 to 2001-02) (2002-03 to 2006-07) (2007-08 to 2011-12)

CAPITAL EXPENDITURECAPITAL EXPENDITURE (Rs. in Crore)

8532

18865

55000

0

6000

12000

18000

24000

30000

36000

42000

48000

54000

60000

IX Plan X Plan XI Plan(1997-98 to 2001-02) (2007-08 to 2011-12)(2002-03 to 2006-07)

FINANCIAL PERFORMANCEFINANCIAL PERFORMANCE

• Excellent growth achieved despite downward revision in tariff norms by CERC

10468

2814

15806

4415

11500

37000

0

5000

10000

15000

20000

25000

30000

35000

40000

Turnover Net Profit

Rs.

in C

rore

IX Plan

X Plan

Expected XI Plan

2012 2017 2022 2027

Per capita consumption (kWh) 900 1300 1900 2800

Generation Capacity (GW) 212 337 488 685

BEYOND XI PLANBEYOND XI PLAN

National Grid capacity : 1,50,000 MW by 2027

Power scenario:

Investment requirement for POWERGRID by 2027:Rs. 6,000 Billion

37800

65000

100000

150000

0

25000

50000

75000

100000

125000

150000

175000

2012 2017 2022 2027YEAR

PERCENTAGE OF TIME FREQUENCY IN NORMAL BAND (49.0-50.5 Hz)

COMPARISION OF BANGALORE VOLTAGE ON TYPICAL DAYS IN LAST FOUR YEARS

300

320

340

360

380

400

420

0:01

1:01

2:01

3:01

4:01

5:01

6:01

7:01

8:01

9:01

10:0

1

11:0

1

12:0

1

13:0

1

14:0

1

15:0

1

16:0

1

17:0

1

18:0

1

19:0

1

20:0

1

21:0

1

22:0

1

23:0

1

TIME IN HRS --->

VO

LT

AG

E I

N K

V -

-->

2005

2002

2004

2003

Improved System Performance

COMPARISON OF BANGALORE VOLTAGE ON TYPICAL DAYS IN LAST 4 YEARS

0.00

10.00

20.00

30.00

40.00

50.00

60.00

70.00

80.00

90.00

100.00

1995-96 1996-97 1997-98 1998-99 1999-00 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07upto Aug'06

2006-07YEAR

% O

F T

IME

NorthernRegion Western Region Southern Region Eastern Region

POST ABT / ULDC

PRE ABT / ULDC

Post Sync. Of Central Grids i.e.NR, ER & WR, NER

First Joint Venture (JV) project with M/s. TATA POWER successfully completed - Rs. 1,600 Crore

Commissioning of the project signifies the success story of Public-Private Partnership in Indian Power Sector.

This public-private participation model has been supported by premier institutions like IFC, ADB, SBI & IDFC. IFC appreciated the model in following words,

“This is a unique model of public-private participation that has the potential for replication in India and abroad”

FACILITATING PRIVATE PARTICIPATIONFACILITATING PRIVATE PARTICIPATION

JVs under finalisation - Signed MoUs with Five Independent Power Producers at Rs.

5000 CroreFormed JVs with Torrent Power Ltd and Jaiprakash Hydro

Ltd. (Rs. 1,300 Crore)

Koldam and Parbati transmission system at Rs. 660 Crore

Independent Power Transmission Company (IPTC) route Part of Western Region Strengthening Scheme – II (Rs. 1600

Crore) through 100% private participation – bids under evaluation

FACILITATING PRIVATE PARTICIPATIONFACILITATING PRIVATE PARTICIPATION

BUSINESS DEVELOPMENTBUSINESS DEVELOPMENT Strengths

In-house expertise in Planning, Engineering, Telecommunication, Load Despatch & Communication, Distribution, Sub-transmission, Contracting, Finance and Project Management

Providing Consultancy services to Power/ Telecom Utilities in India and at International level

Growth in Consultancy revenue:

1937

128156

226

0

50

100

150

200

250

2002-03 2003-04 2004-05 2005-06 2006-07

Year

Rs. C

rore

Accelerated Power Distribution & Reforms Programme (APDRP):

Advisor-cum-Consultant (AcC) in 18 States spread over 178 distribution circles/ towns/ schemes costing about Rs. 7,450 Crore

Implementing network expansion and strengthening schemes of about Rs. 1,315 Crore on behalf of 7 States - Bihar, Goa, Uttar Pradesh, Gujarat, Meghalaya, Tripura and Mizoram on deposit work basis under bilateral arrangement.

Rajiv Gandhi Grameen Vidhyutikaran Yojana (RGGVY):

Implementing rural electrification projects in 9 States involving 88,300 villages with a total Project cost of Rs. 9,400 Crore.

POWERGRID’s share in total rural electrification work of the country is a major 30%. In 2006-07, POWERGRID successfully created infrastructure for electrification of 14,640 no. of villages, out of country-wide achievement of 40,000 villages.

ROLE IN DISTRIBUTION REFORMSROLE IN DISTRIBUTION REFORMS

TRANSPARENT POLICIES & PROCEDURESTRANSPARENT POLICIES & PROCEDURES

Well defined “Works & Procurement Policy and Procedures (WPP)”, for both pre-Award and post-Award activities, in place to facilitate quick decision making.

Well defined “Delegation of Power” in place to empower officers at various levels

Developed Systems & Procedure Manuals for most of the functional areas like Construction, O&M, Human Resource, Quality etc.

Committees of Independent eminent experts for advising POWERGRID on various issues like, Research & Development, Upgradation of ESPP document and environment compliance assessment, Telecom, Financial Management, etc.

Online Complaint Handling system on website.

POWERGRID is the first PSU in Power Sector to develop “Environmental and Social Policy & Procedures (ESPP)” through public consultation with various stake holders.

Based on the principles of Avoidance, Minimization and Mitigation.

Widely appreciated by various funding agencies like The World Bank, ADB etc.

Total Forest involvement reduced from 6% to 2% Implementation of projects without any rehabilitation and

resettlement disputes.

In recognition to outstanding contribution, The World Bank awarded Green Award 2006

TOWARDS GREEN ENVIRONMENT

Delegation of Powers to Board of Delegation of Powers to Board of Directors as MINIRATNA PSUDirectors as MINIRATNA PSU

Investment approval Investment approval of a project costing upto Rs. 500

Crore

Formation of JVs & Subsidiaries

Equity investment in JVs and subsidiaries up to 15 % of Networth in one project limited to Rs. 500 Crore.

Overall ceiling of equity in all projects - 30% of Networth.

Generation linked schemes : Barh, Sipat I, Kahalgaon II, PH I, Korba III, Farakka III, Kawas II, Gandhar II, Koldam, Subansiri, kameng, Parbati III, Chamera III, Rampur, Power Evacuation from Sikkim projects, Neyveli II, Kaiga 3 &4, RAPP 5&6, Kudamkulam APP, Kalpakkam, Ultra mega Projects etc.

Grid strengthening schemes: Strengthening schemes in Western, Eastern, Northern regions.

Inter –regional Schemes : To enhance the inter-regional capacity to about 40,000 MW.

National Load Dispatch Centre

XI Plan – Major ProjectsXI Plan – Major Projects

MANPOWER GROWTH

Average Growth in manpower 1.4% p.a corresponding to about 50% growth p.a. in Asset base

Manpower Growth

6167

67096923

7427

5200

56006000

6400

68007200

7600

TransferredManpow er

1996-97 2001-02 2006-07

Year

No.

of E

mpl

oyee

s

Investment Approval by GoIInvestment Approval by GoI

Appraisal by GoI if project cost > Rs. 500 Cr.

Prior approval under Sec. 68 of EA, 2003

Approval of FR/RCE from Management

Submission of FR cum DPR to MoP along with

draft PIB note & checklist

Recommendation of Public Investment Board (PIB)

Approval by Cabinet Committee on Economic

Affairs (CCEA)

Typical flow chart for approval of a project (Legend: AA-Appraising Agencies, MoP-Ministry of Power)

POWERGRID to prepare FRand submit Draft PIB memo & DPRcomplete as per check list to MoP

MoP to circulate DPR & draft PIB memo to

Plang Commission/Concerned Min./ Appraising Agencies (AA)

4 Weeks

Comments on Draft PIB memo by Planning Commission/AA

Convening PIB meeting

Preparation & Circulation of CCEA Note

2 Weeks

Submission of proposal by MoP to Cabinet Secretariat for its

consideration by CCEA

4 Weeks

CCEA meeting and issue of minutes of CCEA

Project Approved (24 weeks)

2 Weeks

2 Weeks

5 Weeks

2 Weeks

MoP to circulate final PIB memo after incorporating comments issued by Plan. Comm/

Concern Ministries/ (AA)

Comments on draft CCEA Note by different Ministries/ Departments with

approval of concerned Minister

3 Weeks

Issuing Minutes of PIB meting

Zero Date

DIVERSIFICATION IN TELECOMDIVERSIFICATION IN TELECOM

Total Network Planned – 20,000 KM. covering 60 cities

Project cost: Rs. 1,000 Crore

Most of the planned Telecom Network already installed; connectivity provided to all metros, major cities & towns including NE and J&K

POWERGRID is one of the few telecom players with a marked presence in remote areas of the country.

Providing bandwidth capacity to major telecom players.

Laurels

Since 1993-94, continuously rated “Excellent” for performance against Memorandum of Understanding (MoU) with MoP

“MoU Excellence Award” for 6 FYs:

2005-06, 2004-05, 2003-04, 2000-01, 1999-2000 and 1998-99.

“Scope Award for Excellence and Outstanding Contribution to the Public Sector Management” conferred on Dr. R. P. Singh, CMD, POWERGRID for the year 2005-06

“National Awards for Meritorious Performance” in construction and operation during 2004-05 & 2005-06 (4 Gold shields and a silver shield ).

PERFORMANCE DURING FY 2006-07

Corporate Planning Roles and Responsibilities

Single window co-ordination with external agencies

Preparation of the Strategic Plan for the Company

Funds tie-up from Multi Lateral Funding agencies (WB,ADB, JBIC etc.)

Co-ordination with Finance/ Engg./ Contracts departments for proper resource allocation to various projects

Ensure expeditious investment approval from appropriate authority

Human Resource Development Emphasis on integrated development of

employees

Suitable budget allocation since we treat training as an investment– at least 1.5% of salary budget; can go upto 5%

Competency mapping at Sr. levels– right person at the right job– Capitalise on individual strengths and

development of teams

An annual asset growth rate of about 50% has been achieved against a meager manpower growth of 1.4% per annum.

Evolved most effective Disaster Management System to minimize the impact of natural calamities like floods, cyclones, Earthquake etc.

Quick restoration of power supply through Emergency Restoration System

Gujarat cyclone in 1998, restored within a weekOrissa Cyclone in October, 1999, restored within 11 daysGujarat earthquake in January, 2001

Restored power supply within one week Reconstructed 10 damaged Sub-stations within a record time

of 3 months, dedicated to the Nation by the Hon’ble Prime Minister

Restoration work in Andaman after TsunamiTower collapse in Delhi & KarnatakaEmployees contribution during Earthquake in Kashmir

POWERGRIDS RESPONSE TO SOCIAL CAUSESPOWERGRIDS RESPONSE TO SOCIAL CAUSES

NoYes

RCE

APPROVAL OF REVISED COST ESTIMATE

First RCE,

Variation entirely due to change in allowable fiscal factors within

PTC

Variation upto 10% after excluding allowable fiscal

factor within PTC

Variation from 10-20%after

excluding allowable fiscal

factor within PTC

<5% of the latest approved cost

excluding fiscal factor within PTC

>5% of the latest approved cost

excluding fiscal factor within PTC

Variation>20%after excluding allowable fiscal factor within

PTC

Shall be approved by MP in consultation

with PC

Shall be appraised by PC and

approval by MP & FM

Shall be appraised by PIB

& approval by CCEA

Shall be appraised by PC and

approved by MP

Shall be appraised by PIB & approval

by CCEA

Cost Rs. 500 Cr

COD on RCEs

Yes No

BoD – Board of Directors , COD – Committee of Directors, PC - Planning Commission, PTC – Project Time Cycle,

MP – Minister of Power, FM – Minister of Finance, PIB – Public Investment Board

CCEA – Cabinet Committee on Economic Affairs,

Approval by BoD

TRANSPARENT POLICIES & PROCEDURESTRANSPARENT POLICIES & PROCEDURES

Benefits:

Effective & efficient systems & procedures in place Facilitating quick and effective decision making through

empowerment Commissioning of projects within schedule or ahead of

schedule Minimal Contractual disputes Efficient dealing of statutory requirements like

environment issues, audit issues etc. Minimizing adverse comments from external auditing

agencies. Minimising public contact. Increasing confidence of stake holders.