Power Grid Corporation of India Limited An overview

Power Grid Corporation of India Limited An overview… OS deptt. , POWERGRID

Areas of Operation Development of Central Sector Transmission System • Generation Linked • Grid Strengthening • Inter-regional links • International links Grid Management • Estb. of modern Load Despatch Centres • Real-time Grid Operation • Optimum scheduling & despatch Telecom Consultancy National & International • Owns & Operate Fibre optic cable network • Licenses - IP-I, ISP and NLDO • Transmission • Load Dispatch & Communication • Distribution • Telecom OS deptt. , POWERGRID

POWERGRID – A snapshot As on 01. 09. 07 Line length HVDC System 500 k. V – 4368 ckm AC System 765 k. V – 1297 ckm 400 k. V – 47261 ckm 220 k. V – 7823 ckm 132 k. V – 2241 ckm 66 k. V 37 ckm Total Substations Transformation capacity OS deptt. , POWERGRID Carries 42 - 45% of India’s power - 63027 ckm 109 no. 62852 MVA Network availability > 99% (99. 66%)

Major Elements Equipment AC system Lines - Total 461 nos. Population 765 k. V - 6 nos. 500 k. V HVDC – 4 nos 400 k. V – 290 nos 220 k. V – 124 nos 132 kv – 36 nos. 66 k. V 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

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

Physical performance Transmission network addition (Ckt Kms) (1997 -98 to 2001 -02) (2002 -03 to 2006 -07) (2007 -08 to 2011 -12)

Physical performance Sub-stations Addition (Nos. ) (1997 -98 to 2001 -02) (2002 -03 to 2006 -07) (2007 -08 to 2011 -12)

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

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 Mo. U target

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

Capacity 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 Ultra Mega Power projects (UMPP) of about 12000 MW is also envisaged Source: Ministry of Power (May’ 07)

XI PLAN INVESTMENT PROGRAMME v An investment of about Rs. 55, 000 Crore is estimated by POWERGRID covering more than 115 no. of projects/ schemes S. No TYPE OF PROJECT/SCHEME 1 On -Going Schemes 2 Under Investment Approval - Transmission schemes - Tr. System associated with Sasan (4000 MW) and Mundra (4000 MW) UMPPs 3 New Schemes -System under Finalisation - Schemes under initial stage of discussion 4 Inter-State Tr. System for DVC Projects 5 Investment in JVs 6 Completed Schemes Grand Total Project Cost 28586 Outlay 19733 14438 12463 9869 5366 10457 6051 19100 5000 4850 6050 98350 9769 1100 379 58 54920 ≈ 55, 000

Proposed 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 Performance

PHYSICAL PERFORMANCE Transmission network addition (Ckt Kms) (1997 -98 to 2001 -02) (2002 -03 to 2006 -07) (2007 -08 to 2011 -12)

PHYSICAL PERFORMANCE Sub-stations Addition (Nos. ) (1997 -98 to 2001 -02) (2002 -03 to 2006 -07) (2007 -08 to 2011 -12)

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

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

BEYOND XI PLAN v Power scenario: 2022 1900 2027 2800 Generation Capacity 212 337 488 (GW) v National Grid capacity : 1, 50, 000 MW by 2027 685 Per capita consumption (k. Wh) 2012 900 2017 1300 v Investment requirement for POWERGRID by 2027: Rs. 6, 000 Billion

Improved System Performance PERCENTAGE OF TIME FREQUENCY IN NORMAL BAND (49. 0 -50. 5 Hz) 100. 00 90. 00 80. 00 % OF TIME 70. 00 60. 00 50. 00 40. 00 Post Sync. Of Central Grids i. e. NR, ER & WR, NER POST ABT / ULDC PRE ABT / ULDC 30. 00 20. 00 10. 00 1995 -96 1996 -97 1997 -98 1998 -99 Northern. Region 420 1999 -00 YEAR 2001 -02 2000 -01 Western Region 2002 -03 2003 -04 2004 -05 Southern Region 2005 -06 2006 -07 upto Aug'06 2006 -07 Eastern Region COMPARISON OF BANGALORE VOLTAGE ON COMPARISION OF BANGALORE VOLTAGE ON TYPICAL DAYS IN LAST 4 YEARS TYPICAL DAYS IN LAST FOUR YEARS 2005 2003 380 2004 360 340 320 2002 TIME IN HRS ---> 23: 01 22: 01 21: 01 20: 01 19: 01 18: 01 17: 01 16: 01 15: 01 14: 01 13: 01 12: 01 11: 01 10: 01 9: 01 8: 01 7: 01 6: 01 5: 01 4: 01 3: 01 2: 01 1: 01 300 0: 01 VOLTAGE IN KV ---> 400

FACILITATING PRIVATE PARTICIPATION v First Joint Venture (JV) project with M/s. TATA POWER successfully completed - Rs. 1, 600 Crore v Commissioning of the project signifies the success story of Public-Private Partnership in Indian Power Sector. v 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 PARTICIPATION v JVs under finalisation § Signed Mo. Us with Five Independent Power Producers at Rs. 5000 Crore Ø Formed JVs with Torrent Power Ltd and Jaiprakash Hydro Ltd. (Rs. 1, 300 Crore) § Koldam and Parbati transmission system at Rs. 660 Crore v Independent Power Transmission Company (IPTC) route § Part of Western Region Strengthening Scheme – II (Rs. 1600 Crore) through 100% private participation – bids under evaluation

BUSINESS DEVELOPMENT v Strengths Ø In-house expertise in Planning, Engineering, Telecommunication, Load Despatch & Communication, Distribution, Sub-transmission, Contracting, Finance and Project Management Ø Providing Consultancy services to Power/ Telecom Utilities in India and at International level v Growth in Consultancy revenue:

ROLE IN DISTRIBUTION REFORMS v Accelerated Power Distribution & Reforms Programme (APDRP): § Advisor-cum-Consultant (Ac. C) 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. v 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.

TRANSPARENT POLICIES & PROCEDURES v Well defined “Works & Procurement Policy and Procedures (WPP)”, for both pre-Award and post-Award activities, in place to facilitate quick decision making. v Well defined “Delegation of Power” in place to empower officers at various levels v Developed Systems & Procedure Manuals for most of the functional areas like Construction, O&M, Human Resource, Quality etc. v 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. v Online Complaint Handling system on website.

TOWARDS GREEN ENVIRONMENT v POWERGRID is the first PSU in Power Sector to develop “Environmental and Social Policy & Procedures (ESPP)” through public consultation with various stake holders. Ø Based on the principles of Avoidance, Minimization and Mitigation. Ø Widely appreciated by various funding agencies like The World Bank, ADB etc. Ø Total Forest involvement reduced from 6% to 2% Ø Implementation of projects without any rehabilitation resettlement disputes. and v In recognition to outstanding contribution, The World Bank awarded Green Award 2006

Delegation of Powers to Board of Directors as MINIRATNA PSU Investment approval v Investment approval of a project costing upto Rs. 500 Crore Formation of JVs & Subsidiaries v v 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.

XI Plan – Major Projects v 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. v Grid strengthening schemes: Strengthening schemes in Western, Eastern, Northern regions. v Inter –regional Schemes : To enhance the inter-regional capacity to about 40, 000 MW. v National Load Dispatch Centre

MANPOWER GROWTH Average Growth in manpower 1. 4% p. a corresponding to about 50% growth p. a. in Asset base

Investment Approval by Go. I v Appraisal by Go. I if project cost > Rs. 500 Cr. v Prior approval under Sec. 68 of EA, 2003 v Approval of FR/RCE from Management v Submission of FR cum DPR to Mo. P along with draft PIB note & checklist v Recommendation of Public Investment Board (PIB) v Approval by Cabinet Committee on Economic Affairs (CCEA)

Typical flow chart for approval of a project (Legend: AA-Appraising Agencies, Mo. P-Ministry of Power) Project Approved (24 weeks) POWERGRID to prepare FR and submit Draft PIB memo & DPR complete as per check list to Mo. P Zero Date 5 Weeks 2 Weeks 4 Weeks CCEA meeting and issue of minutes of CCEA 2 Weeks Mo. P to circulate DPR & draft PIB memo to Plang Commission/Concerned Min. / Appraising Agencies (AA) Submission of proposal by Mo. P to Cabinet Secretariat for its consideration by CCEA 3 Weeks Comments on Draft PIB memo by Planning Commission/AA Mo. P to circulate final PIB memo after incorporating comments issued by Plan. Comm/ Concern Ministries/ (AA) Convening PIB meeting Comments on draft CCEA Note by different Ministries/ Departments with 2 Weeks approval of concerned Minister Preparation & Circulation of CCEA Note Issuing Minutes of PIB meting 4 Weeks 2 Weeks

DIVERSIFICATION IN TELECOM v Total Network Planned – 20, 000 KM. covering 60 cities v Project cost: Rs. 1, 000 Crore v Most of the planned Telecom Network already installed; connectivity provided to all metros, major cities & towns including NE and J&K v POWERGRID is one of the few telecom players with a marked presence in remote areas of the country. v Providing bandwidth capacity to major telecom players.

PERFORMANCE DURING FY 2006 -07 Laurels v Since 1993 -94, continuously rated “Excellent” for performance against Memorandum of Understanding (Mo. U) with Mo. P v “Mo. U Excellence Award” for 6 FYs: Ø 2005 -06, 2004 -05, 2003 -04, 2000 -01, 1999 -2000 and 1998 -99. v “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 v “National Awards for Meritorious Performance” in construction and operation during 2004 -05 & 2005 -06 (4 Gold shields and a silver shield ).

Corporate Planning Roles and Responsibilities v Single window co-ordination with external agencies v Preparation of the Strategic Plan for the Company v Funds tie-up from Multi Lateral Funding agencies (WB, ADB, JBIC etc. ) v Co-ordination with Finance/ Engg. / Contracts departments for proper resource allocation various projects v Ensure expeditious investment approval fro appropriate authority

Human Resource Development v Emphasis on integrated development of employees v Suitable budget allocation since we treat training as an investment – at least 1. 5% of salary budget; can go upto 5% v Competency mapping at Sr. levels right person at the right job – Capitalise on individual strengths and development of teams – v An annual asset growth rate of about 50% has been achieved against a meager manpower growth of 1. 4% per annum.

POWERGRIDS RESPONSE TO SOCIAL CAUSES v Evolved most effective Disaster Management System to minimize the impact of natural calamities like floods, cyclones, Earthquake etc. v Quick restoration of power supply through Emergency Restoration System Ø Gujarat cyclone in 1998, restored within a week Ø Orissa Cyclone in October, 1999, restored within 11 days Ø Gujarat 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 Ø Restoration work in Andaman after Tsunami Ø Tower collapse in Delhi & Karnataka

APPROVAL OF REVISED COST ESTIMATE RCE Yes No Cost Rs. 500 Cr COD on RCEs Approval by Bo. D No Yes Variation entirely due to change in allowable fiscal factors within PTC Variation upto 10% after excluding allowable fiscal factor within PTC Shall be approved by MP in consultation with PC Variation from 1020%after excluding allowable fiscal factor within PTC Shall be appraised by PC and approval by MP & FM First RCE, Variation>20%after excluding allowable fiscal factor within PTC Shall be appraised by PIB & approval by CCEA <5% of the latest approved cost excluding fiscal factor within PTC >5% of the latest approved cost excluding fiscal factor within PTC Shall be appraised by PC and approved by MP Shall be appraised by PIB & approval by CCEA Bo. D – Board of Directors , COD – Committee of Directors, PC - Planning Commission, MP – Minister of Power, FM – Minister of Finance, CCEA – Cabinet Committee on Economic Affairs, PTC – Project Time Cycle, PIB – Public Investment Board

TRANSPARENT POLICIES & PROCEDURES Benefits: Ø Effective & efficient systems & procedures in place Ø Facilitating quick and effective decision making through empowerment Ø Commissioning of projects within schedule or ahead of schedule Ø Minimal Contractual disputes Ø Efficient dealing of statutory requirements like environment issues, audit issues etc. Ø Minimizing adverse comments from external auditing agencies. Ø Minimising public contact. Ø Increasing confidence of stake holders.