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

2. Areas 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., POWERGRID

3. POWERGRID – 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., POWERGRID

4. Equipment Population AC system Lines - 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 Transformers212 Shunt Reactors314 HVDC Transformers72 Circuit Breakers1810 CT4240 CVT2940 LA3110 HVDC system No. of HVDC lines4 No. of HVDC back to back stations4 Major Elements

5. 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 )

6. Reduced grid disturbances  No major grid disturbance in last 4 ½ years  Transmission losses 3-4% in line with international standards

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

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

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

10. Monitored Performance Parameters of Transmission System Availability –Availability of the transmission system Reliability –No. of trippings per line attributable to POWERGRID

11. Performance of the transmission system during against MoU target

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

13. Capacity Addition Programme (MW) -XI Plan TypeCentral Sector State Sector Private Sector Total Thermal26,80024,3477,49758,644 Hydro9,6853,6053,26316,553 Nuclear3,380-- Total39,86527,95210,76078,577 Source: Ministry of Power (May’07) Ultra Mega Power projects (UMPP) of about 12000 MW is also envisaged

14. XI PLAN INVESTMENT PROGRAMME S. NoTYPE OF PROJECT/SCHEMEProject CostOutlay 1 On -Going Schemes2858619733 2 Under Investment Approval - Transmission schemes1443812463 - Tr. System associated with Sasan (4000 MW) and Mundra (4000MW) UMPPs98695366 3New Schemes -System under Finalisation 104576051 - Schemes under initial stage of discussion 191009769 4 Inter-State Tr. System for DVC Projects50001100 5 Investment in JVs4850379 6 Completed Schemes605058 Grand Total9835054920 ≈ 55,000  An investment of about Rs. 55,000 Crore is estimated by POWERGRID covering more than 115 no. of projects/ schemes

15. Proposed Funding for XI Plan IEBR for XI Plan, considering IPO, sale of securitised bonds is summarized as under: S. No DescriptionAmount (Rs in Crore) i.Internal Resources16,500 ii.Domestic loans22,980 iii.Foreign loans15,520 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

16. Plan wise Performance

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

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

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

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

21. 2012201720222027 Per capita consumption (kWh)900130019002800 Generation Capacity (GW)212337488685 BEYOND XI PLAN  National Grid capacity : 1,50,000 MW by 2027  Power scenario:  Investment requirement for POWERGRID by 2027: Rs. 6,000 Billion

22. PERCENTAGE OF TIME FREQUENCY IN NORMAL BAND (49.0-50.5 Hz) 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 1995-961996-971997-981998-991999-002000-012001-022002-032003-042004-052005-062006-07 upto Aug'06 2006-07 YEAR % OF TIME NorthernRegionWestern RegionSouthern RegionEastern Region POST ABT / ULDC PRE ABT / ULDC Post Sync. Of Central Grids i.e. NR, ER & WR, NER

23.  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 PARTICIPATION

24.  JVs under finalisation -  Signed MoUs with Five Independent Power Producers at Rs. 5000 Crore  Formed 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 PARTICIPATION

25. BUSINESS 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:

26.  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 REFORMS

27. TRANSPARENT 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.

28.  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

29. Delegation of Powers to Board of Directors 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.

30.  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 Projects

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

32. Investment 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)

33. Typical flow chart for approval of a project (Legend: AA-Appraising Agencies, MoP-Ministry of Power) POWERGRID to prepare FR and submit Draft PIB memo & DPR complete 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 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

34. DIVERSIFICATION 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.

35. 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

36. 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

37. 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.

38.  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 week  Orissa Cyclone in October, 1999, restored within 11 days  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  Restoration work in Andaman after Tsunami  Tower collapse in Delhi & Karnataka  Employees contribution during Earthquake in Kashmir POWERGRIDS RESPONSE TO SOCIAL CAUSES

39. No Yes 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

40. TRANSPARENT 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.