It's my privilege to share with you the highlights of another excellent
year which the Company has completed with your support. These are all
the more creditable in the backdrop of slowing down of global economy.
Friends, during the year India's Gross Domestic Product (GDP) moderated
to 6.5% as compared to 8.4% in both, FY 2009-10 and FY 2010-11.
Inflation has remained stubbornly high and the rupee has been volatile
having depreciated sharply in the recent period. Despite a slowdown in
growth over FY 2011-12 in relative terms as compared to most of other
countries, India's growth rate is still impressive.
Growth of power sector is the key to the economic development of our
country. The pace of growth in industrial and commercial activities
coupled with penetration of sector specific advanced technology
including Information Technology (IT) in the day-to-day life of the
common man, is expected to result in a high growth in power demand. To
sustain the growth rate of India, Power Sector growth has to
commensurate with the overall economic growth of the nation. Therefore,
continued focus on investments on Power sector is essential.
Your Company has marked strong performance across all dimensions in
fiscal 2012. The year saw all time high Assets Commissioning of about Rs.
14,021 Crore and capital investment of over Rs. 17,800 Crore. At the end
of March, 2012, the conclusion of XI plan, I am happy to share that
your Company successfully met the XI plan Capex targets. Against XI
Plan target of Rs. 55,000 Crore, an investment of more than Rs. 55,300
Crore has been made for development of inter-State transmission system.
With the above, your Company has almost trebled its investments in XI
plan as compared to X plan.
On the financial front, the turnover of the Company has now entered
five figures and stands at Rs. 10,785.01 Crore in Fiscal 2012 and Profit
after Tax increased to Rs. 3,254.95 Crore, which are 18.53% and 20.69%
higher respectively, compared to the previous Fiscal 2011. Our Gross
Fixed Assets as on 31st March, 2012 are valued at Rs. 63,387.34 Crore as
against Rs. 50,343.35 crore in last fiscal. In fact, your Company's Gross
Fixed Assets have grown about 118% during last five years.
On the operational front, as on 31st March, 2012, your Company owns and
operates a transmission network of about 92,981 ckt kms of inter-State
transmission lines, 150 nos. of EHV & HVDC substations with
transformation capacity of about 1,25,000 MVA and wheels about 50% of
total power generated in the country. With the commissioning of
Rourkela-Raigarh 400kV D/c, Sasaram-Fatehpur 765kV S/c & Gaya-Balia
765kV S/c transmission links aggregating a capacity addition of 5,600
MW, the cumulative inter-regional power transfer capacity has now been
enhanced to about 28,000 MW.
Under RGGVY, during FY 2011-12, by creating infrastructure for
electrification in 9358 villages out of which 1688 were un-electrified
villages, your Company has cumulatively as on 31st March, 2012, built
infrastructure for 64,803 villages and provided Service connection to
about 33.57 Lakh BPL households, which include about 6.78 Lakh
households added during the year. During the year, 11,229 villages
(cumulative 30,718 villages) were charged/electrified.
Friends, Indian Power Grid had not experienced any major grid
disturbance during the past nine years. However, the electricity grid
experienced two major disturbances consecutively on 30th July & 31st
July, 2012. While the first disturbance affected only Northern Region,
the second one affected Northern, Eastern and North Eastern Regions.
However, the essential loads were restored at the fastest pace within
few hours of the incidents and power supply was restored progressively
and normalised completely on the same day of the incident(s). Further,
to avoid such recurrence in future, various actions have been / are
being taken by your company.
Your Company continues to contribute towards sustainable development by
proactively following the Environmental and Social Policy & Procedures
(ESPP) for the conservation of forests, flora & fauna, resettlement &
rehabilitation. In this regard, High Capacity ñ800kV HVDC systems,
765kV D/c lines, 1200kV UHVAC technology -the highest voltage level in
the world, Flexible AC Transmission Systems (FACTS), etc remained as
prime focus of your Company.
Your Company is taking leadership initiative for implementation of
Smart Grid Technology in the Country and has already undertaken a pilot
project in northern region involving installation of Phasor Measurement
Units (PMUs) as part of Wide area Measurement Systems (WAMS). Your
company has taken up Unified Real Time Dynamic State Measurement
(URTDSM) project for installation of PMUs at all 400 kV and above
substations and also on the critical location of the State grids.
Your Company has evolved a comprehensive scheme for Green Energy
Corridor associated with renewable energy sources integration into the
Grid. It has also identified other measures to facilitate smooth
integration of large scale renewable energy including solar energy
sources in the country.
Towards Smart Grid in distribution sector, initiative has been taken
for development of pilot Smart Grid/City in Puducherry through open
collaboration. This would enable development of efficient energy system
and energy conservation. It will act as a backbone to enable new
business models like smart city comprising Smart Citizen Services,
e-goverance, electric vehicles, etc.
As part of Corporate Social Responsibility (CSR), your Company is
making contributions to the society at large, wherein activities for
socio-economic development of weaker sections have been taken up. 1% of
PAT of the Company of the preceding year is earmarked as non-lapsable
budget for CSR activities. Out of total CSR budget, 10% is earmarked
exclusively for Natural Calamities. During FY 2011-12, about Rs. 25
Crore was incurred on various CSR activities including setting up of
Mobile Medical Units, organizing eye & general health check up camps,
providing scholarships to deserving students, setting up of library,
computer room facilities for schools, primary health centre, drinking &
sanitation facility, check dam, drainage, roads, community centre,
promoting art & culture etc.
Your Company was recognized for excellence along many dimensions
including infrastructure, sustainability etc and has received number of
awards in various categories by Govt. of India and other prestigious
organisations & institutes. POWERGRID bagged six prestigious National
Awards for Meritorious Performance in Power Sector instituted by the
Government of India for the year 2009-10 & 2010-11 - received three
Gold Shields, two Silver Shields for Transmission System Availability
and one Silver Shield for Early Completion of Transmission Project.
With the introduction of mandatory Tariff Based Competitive Bidding
(TBCB) for inter-State Transmission Services in January, 2011, your
Company has geared up for meeting challenges in the competitive
environment with private players. Leveraging its competitive edge,
your Company has secured all the transmission projects that were put
under TBCB during FY 2011-12.
Considering the generation capacity addition of 75,7851 MW envisaged
during XII Plan, total fund requirement for transmission sector in the
Country is estimated at about Rs. 1,80,000 Crore. Major portion of this
investment i.e. of about Rs. 1,00,000 Crore is planned by your Company
during XII Plan for further development of transmission systems. Your
Company is well placed in terms of resource mobilisation owing to its
excellent credit rating with financial institutions. The Company, as
such, do not envisage any problem in mobilizing the resources for
meeting the planned investment during XII plan period.
On behalf of the Company, I thank each shareholder for their unstinted
support & trust placed on the Company and look forward for the
continued support. I would also like to appreciate Team POWERGRID for
its dedication, support and tireless efforts in building an enduring
With best wishes,
(R. N. Nayak)
Chairman & Managing Director
Place: New Delhi