1. April, 2006 PRESENTATION BY POWERGRID

2. FORMATION OF POWERGRID POWERGRID was formed in 1989 and began commercial operation from 1992 – 93 with the following mission: “Establishment and Operation of Regional and National Power Grids to facilitate transfer of power within and across the regions with reliability, Security, and Economy on sound commercial principles.”

3.  Commercial operation since 1992-93.  Recognised as Mini-ratna Company: 1998.  Notified as Central Transmission Utility : 1998  Carries about 45% of Country’s power.  Transmission Network: - 54,800 Ckt. Kms., - 54,800 Ckt. Kms., - 54,350 MVA - 54,350 MVA - 93 Sub-Stations - 93 Sub-Stations  Network availability - Above 99%  Profit making since inception POWERGRID- An Overview

4. Diversification Development of Inter-State transmission Systems Grid Management Planning & Design Construction Quality Assurance & Inspection Operation & Maintenance Establishment of modern Load Despatch Centres Real-time Grid Operation Optimum scheduling & despatch Energy accounting including settlements Broadband Telecom Services. Sub-transmission Distribution Rural Electrification Consultancy AREAS OF OPERATION

5. (Till Nov’05) PHYSICAL GROWTH (Network & Capacity) 44836 46461 49459 22228 27853 35119 40289 34288 28820 12,201 23331 50745 47757 46245 0 10,000 20,000 30,000 40,000 50,000 60,000 92-9396-9798-992001-022002-032003-042004-052005-06 YEAR MVACkt Km 56020 56180 Expected

6. GROSS FIXED ASSET (RS. CRORE) (Till Sep’05) 3521 5492 8851 13777 19876 21930 0 5000 10000 15000 20000 25000 1992- 93 1995- 96 1998- 99 2001- 02 2003- 04 2004- 05 2005- 06 30000 27120 Expected

7. TURNOVER AND NET PROFIT (Rs. Crore) (Till Sep’05) 634 983 1770 2533 2805 2831 786 748 643 444 275 236 0 500 1000 1500 2000 2500 3000 3500 1992-931995-961998-992002-032003-042004-052005-06 YEAR Turnover Net Profit 3075 884 * CERC new tariff norms applicable 01/04/04 Expected

8. MANPOWER Growth in manpower 1.7% p.a corresponding to 40% growth p.a. in Asset base Expected

9.  National Grid being developed in phased manner  Inter regional power transfer capacity of National Grid–  Present - 9,500 MW  By 2007 - 18,400 MW  By 2012 - 37,150 MW  Ring of 765 kV EHV AC system inter-connecting ER, WR, NR and HVDC system for smooth operation of the Grid  This would lead to reduction in capacity addition by about 15000 MW thus saving investments of about Rs 60,000 Crore. Development of National Grid

10. 8,500 MW 600 MW 2,250 MW 1,250 MW 8,500 MW 1,800 MW 7,600 MW 1,000 MW 2,700 MW 1,700 MW 3,600 MW 3,100 MW SR WR NR NER ER Investment Required by 2012 POWERGRID :Rs. 50,000 Cr Pvt. Investors:Rs. 21,000 Cr.  Inter Regional Power Transfer Capacity Planned by 2012: 37,000 MW Present Inter Regional Power Transfer Capacity 9,500 MW EFFORTS TO STABILISE & COMMERCIALISE POWER SECTOR 4,000 MW

11. POWERGRID & Grid Management Regional Load Despatch Centres modernised in all the five regions at a cost more than Rs. 2000 Crore This coupled with implementation of ABT has led to: –‘Nil’ Grid Collapses in Last three years. – Improvement in frequency and voltage profile – Merit Order Operation, Leading to Overall Economy – Transparency in grid operation – Quantum leap in intra and inter-regional Power Exchange and Trading

12. R&D and Technology Development in POWERGRID  EHVAC Transmission System up to 800 kV EHVAC Transmission System up to 800 kV EHVAC Transmission System up to 800 kV  + 500 kV HVDC  Multi ckt towers Multi ckt towersMulti ckt towers  Fixed & variable Series Compensator (FACTS)  Extra High Towers to avoid deforestation and protection of wild life Extra High Towers to avoid deforestation and protection of wild life Extra High Towers to avoid deforestation and protection of wild life  Compact Towers to reduce Transmission Corridor width Compact Towers to reduce Transmission Corridor width Compact Towers to reduce Transmission Corridor width  High Temperature Conductors for increased Loading  Automation of Sub-stations. Automation of Sub-stations. Automation of Sub-stations.  Compact S/stn to reduce land requirement.  Transmission Line Survey through Satellite. Transmission Line Survey through Satellite. Transmission Line Survey through Satellite.

13.  Diversified in Synergic area i.e. Telecom at a cost of Rs 950 Cr.  Most of the network completed ahead of schedule.  Business is looking up as planned, inspite of stiff competition.  A JV of RailTel, GailTel & POWERGRID in formation stage. DIVERSIFICATION IN TELECOM

14. Business Development  Providing Consultancy services to State Power Utilities in India and at International level in the field of Transmission, Sub-transmission, Distribution, Telecom etc.  Earned more than Rs. 127 Cr. as consultancy income during FY2004-05 against Rs. 37 Cr. in FY 2003-04  Major Consultancy Assignments  With Bhutan Telecom (completed successfully)  220/66 kV substation in Bhutan  220 kV D/C Transmission line from Pul-e-Khurmi to Kabul; a major infrastructure project in Afghanistan  Execution of 220 kV Transmission Line via Kargil-Leh- Drass-Khalsti for PDD, J&K.

15. APDRP  Acting as Advisor-cum-Consultant (AcC) for developing 182 distribution circles/ towns/ schemes costing about Rs. 7,900 Crore.  Executing schemes of about Rs. 1000 Crore in Bihar, Goa, Meghalaya and Mizoram on deposit work basis. Sub-transmission  Implementation of strengthening scheme (phase-I) of Rs 550 Crore in Bihar. Phase-II, Part-I at an estimated cost of Rs. 640 Crore approved recently. Part-II under finalisation. Rural Electrification  Executing works in 2400 villages in Bihar at about Rs.192 Crore.  Execution of Rural Electrification works under Rajiv Gandhi Grameen Vidiyutikaran Yojana (RGGVY) for 70,000 villages in the States of Bihar, UP, West Bangal, Gujarat, rajasthan, Orissa, Assam, Chattisgarh and Tripura at an estimated cost of Rs. 4,000 Crore. Facilitating Distribution Sector Reforms

16.  Quick restoration of power supply through Emergency Restoration System (ERS)  Gujarat cyclone in 1998  Orissa cyclone in Oct, 1999  Gujarat earthquake in Jan, 2001  Tsunami in Dec, 2004  Restoration of Pampore-Kishenpur 220kV D/c line of PDD J&K (life line for power supply to Kashmir) damaged during heavy snow avalanches in Jan, 2005  Extending training in Technical & managerial aspects ASSISTING STATE UTILITIES

17. OUR STRENGTHS Huge pool of expert manpower – more than 2600 qualified professionals Engineers, Financial, commercial, legal Harnessing New Technology in Electrical, Civil & Mechanical Engineering. Proven Experience of PPP Project from concept to implementation Experience of working with projects funded by the World Bank, ADB and other Multilateral Financial Institutions. Commitment to Quality, Environment and Health & Safety –ISO 9001:2000, ISO 14001:1996 and OHSAS 18001:1999 certified by BSI

18. AWARDS RECEIVED BY POWERGRID Few of the awards received by POWERGRID are: Continuously achieving the “Excellent” rating for the MOUs with Ministry of Power, since 1993-94. The only Public Sector Enterprise to receive prestigious Prime Minister’s MoU Award for three successive years since institution of this Award. Received “Golden Peacock National Quality Award (Runners up)” for the year 2004, for maintaining quality standards.

19. AWARDS RECEIVED BY POWERGRID Indian Institution of Industrial Engineering (IIIE) has conferred the prestigious award, “ Excellence in service (Power Utility) sector for POWERGRID’s financial & operational strength” on 21.09.2003. Institute of Economic Studies, N. Delhi conferred “Certificate of Excellence in Productivity, Quality, Innovation & Management” on 24.02.97 Awarded certificate of excellence by Council for Business Entrepreneurs for “Economic Growth & National Integration” during the year 1997-98. Indian Institution of Industrial Engineering (IIIE) hasj conferred the prestigious award, “Excellent Performing Public Sector Entreprise” for the years 1998-99, 1999-2000 and 2001-02 to POWERGRID.

20. Private Sector Participation In Transmission

21. On 31.1.2000, Ministry of Power, Govt. of India issued “ Guidelines for Private Sector Participation ” to ensure availability of uniform Techno-Commercial framework throughout the Transmission Sector in the Country. Private Sector Participation Enablements

22. Investment from private entity as “ Transmission Licensee ” envisaged via two routes: Joint Venture Arrangement with POWERGRID by having major equity contribution by the private investors & a minimum 26% equity by POWERGRID. Independent Private Transmission Company (IPTC) route through 100% fund mobilization by private entities Existing Provisions

23. MOBILISING RESOURCES THROUGH PRIVATE INVESTMENT  Joint Venture with Tata for Tala Transmission System at a cost of Rs. 1600 Crore, likely to be commissioned shortly.  Investment approval accorded for formation of JV with Reliance for evacuation of power from Parbati-II HEP & Koldam HEP.  POWERGRID Board has decided in-principle to setup JVs with Independent Power Producers (IPPs) for their dedicated transmission lines.  Torrent, Essar, ILF&S, Jai Prakash and Teesta Urja have signed MoUs.  POWERGRID has invited bids for 100% Private Transmission System for Western Region.

24. POWERGRID Perspective Plan… Investment Program X Plan XI Plan Total POWERGRID’s Outlay 21,37028,25849,628 Private Sector participation 9,71011,18520,895 Total Central Sector 31,08039,44370,523 Rs/Crs.

25. PROVISIONS OF ELECTRICITY ACT Electricity Act has the following two provisions: As per Section 14, CERC can grant a license to “any person” to transmit electricity as a transmission licensee. As per Section 63, CERC shall adopt the tariff, if such tariff has been determined through transparent process of bidding in accordance with the guidelines issued by the Central Government.

26. Proposed Enablements Draft Policy Guidelines for Private Investment in Transmission, prepared by Ministry of Power, Govt. of India. Draft Tariff based Competitive-bidding Guidelines for Transmission Service, prepared by Ministry of Power, Govt. of India. Salient Features of these documents are……

27. Policy Guidelines for Private Investment in Transmission Empowered Committee, to be constituted by Ministry of Power, with mandate to –Identify Projects & invite bids. –Facilitate finalization and signing of TSA & facilitate development of projects.

28. Policy Guidelines for Private Investment in Transmission DPR for identified project to be prepared by any Govt. agency or a consultant. Selection of Developer for identified projects through Tariff Based Bidding. Selected party to approach Appropriate Commission for license with recommendations of Empowered Committee, within 30 days.

29. Tariff based Competitive Bidding Guidelines Empowered Committee is the Bid Process Coordinator (BPC). Projects to be taken up after necessary approval of Appropriate Commission. Projects identified by Empowered Committee only can be taken up. Approval of Bid Documents by Appropriate Commission.

30. Tariff based Competitive Bidding Guidelines Bidding process can be either two stage (RfQ & RfP) or single stage two envelop process. Bidding process can continue with less than two bidders with approval of Appropriate Commission. The agency authorized by the Govt. to account for and bill transmission tariff to enter into agreement with Pvt. Player on one hand and beneficiaries on the other.

33. FREQUENCY PROFILE 2002, 2003 & 2004

34. REALITY BITE: FARMERS IN KARNATAKA ARE HAPPY WITH FEWER HOURS OF QUALITY POWER!!. EFFICIENCY OF PUMPS AT TG HALLI WATER WORKS IMPROVED! COMPARISION OF BANGALORE VOLTAGE - TYPICAL DAY BETTER VOLTAGE PROFILE MEANS LESS ELECTRICAL LOSSES

35. Inter-Regional Exchanges

36. ECONOMY IN OPERATION  Inter-regional energy exchange of 31000 MU worth Rs. 6200 Crore during 2004-05 has resulted into:  Deferred investment of Rs. 24000 Crore equivalent to setting up of 6000MW power generation capacity. This means saving of Rs. 2000 Crore per year to the economy.  Net savings of Rs. 1550 Crore on account of cheaper available power.  Generated economic activities almost 20 times the cost of energy exchanged i.e. worth about Rs. 1,24,000 Crore.

37. 800 kV – High Power Transfer Capacity one 800kV line on a 64 meter wide right-of-way can carry the same amount of power as 400 kV lines on four 48 m wide rights-of-way, having a combined width of 184 m 64 M 184 M

38. 1 4 2 3 2 1 DOUBLE CIRCUIT TOWER MULTI CIRCUIT TOWER ( 45 Mtr. High) ( 70 Mtr. High) R&D and Technological Advancement

39. 9 - 25 mtr 50 mtr EHVAC (up to 800 kV) & HVDC (±500 kV) Extra tall Towers for protection of wild life & to avoid deforestation R&D and Technological Advancement 4 - 5 mtr approx

40. Proposed 400 kV Compact Single pole tower at Delhi & Noida 800 kV Normal Tower 800 kV Compact Tower R&D and Technological Advancement Right of Way = 85 Mtr. Right of Way = 64 Mtr.

41. R&D and Technological Advancement Remote Control operation of Substation BALLABHGARH BHIWADI

42. Transmission Line Survey through GIS

43. SURVEY WORK IN AFGHANISTAN 2100 MSL Kalatak Hill Top carry Mines – TL route negotiated on Slope Rock fall due to Weathering action

44. SURVEY WORK IN AFGHANISTAN 2200 MSL 2150 MSL Exposed Weathering Action at exposed face between Jabal Saraj- Ahingaran

45. SURVEY WORK AT LEH, KARGIL, DRASS A view of Tiger Hill from Drass villageA view of Kargil

46. SURVEY WORK AT LEH, KARGIL, DRASS One of the proposed site of Kargil S/S (Near village Minjhe on Kargil sankoo road near Chutak HEP of NHPC) One of the land identified for Leh S/S (Near Phyang about 15 Kms ahead of Leh town)

47. National Grid by 2012 THE POWER ‘HIGHWAY’