CHAPTER 1

INTRODUCTION
The Transmission systems in the country consists of Inter-State and Intra-State Transmission
System (ISTS). Over decades, a robust inter-state and inter-regional transmission system has
evolved in the country. Interstate (and inter-regional) transmission system is mainly owned by
Power Grid Corporation of India. In future, Inter-State Transmission System(ISTS) schemes
would also be built through competitive bidding by private sector entities. Already, a number
of such schemes by the private sector or joint venture between private sector and Power Grid
are under construction.
GROWTH OF TRANSMISSION SYSTEM
At the time of Independence, power systems in the country were essentially isolated systems
developed in and around urban and industrial areas and the highest transmission voltage was
132 kV. The state-sector network grew at voltage level up to 132 kV during the 50s and 60s
and then to 220 kV during 60s and 70s. Subsequently, in many states (U.P., Maharashtra,
M.P., Gujarat, Orissa, A.P., and Karnataka) substantial 400 kV network was also added as
large quantum of power was to be transmitted over long distances.
To supplement the efforts of the states in increasing generation capacities, central sector
generation utilities viz. National Hydroelectric Power Corporation (NHPC) and National
Thermal Power Corporation (NTPC) were created in 1975. These corporations established
large generating stations for the benefit of states in a region. These corporations also
undertook development of associated transmission lines, for evacuation of power and
undertook development of associated transmission lines, for evacuation of power and
delivery of power to the beneficiary states transcending state boundaries. By the end of
1980s, strong regional networks came into existence and in 1989, transmission wings of
central generating companies were separated to set up Power Grid Corporation of India
(POWERGRID. Power grid was set up to give thrust to implementation of transmission
system associated with central generating stations and inter-regional transmission programme
based on perspective planning done by Central Electricity Authority (CEA).

CHALLENGES IN TRANSMISSION SECTOR

In order to meet the growing power demand of various regions, power transfer capacity of the
grid is being enhanced continuously. This expansion poses few challenges that need to be met
through planning and adoption of new technologies. Following are some of the challenges:

Right of Way (ROW) It is the most notable challenge that the transmission sector is
facing today. The need is to develop high intensity transmission corridor (MW per

meter ROW) in an environmental friendly manner.

Flexibility in Line Loading and Regulation of Power: Due to wide variation in
demand on a daily as well as seasonal basis there is increased need to regulate power

flow on the transmission network for grid security and optimization.

Improvement of Operational Efficiency: Power system is required to be operated at
the rated capacity with security, reliability and high availability. This can only be
achieved through reliability based on-line condition monitoring, repair and
maintenance in advance and making forced outage as zero.

THEME OF THE STUDY UNDEGONE

As a part of our training programme we were guided to understand the project management
and implementation in Powergrid Corporation of India Ltd. First part of our training program
was about to study how the minimum cost projects were awarded on a contract basis to the
bidders. Later on the second part of the training, we were asked,

To study how a project is being selected, how a feasibility report of a project cum

detailed project report is made

To study the award of contract and its scope.
To study the terms of payment, work schedule, liquidated damages for delay in
completion,

guarantees,

liquidated

damages

for

non-performance,

contract

performance guarantee and other parts of letter of award.

Based on the information provided, the study is chosen in the area of Tariff Based
Competitive Bidding (TBCB). The work flow was to first study the present scenario of the
transmission sector and then the PGCIL revenue changes after adopting TBCB method
through which the company gets its future projects. The second phase involves the perceived
risks associated with the company is analysed qualitatively.

CHAPTER 2
LITERATURE REVIEW
Peltzman (1976) describes The traditional framework for analysing the effect of regulation
on the cost of capital is the buffering hypothesis. The hypothesis says that regulation acts as
a buffer that protects the regulated firm against external shocks, and therefore reduces its risk
exposure. Faced with rising costs or a shift in demand, the regulator will, in general, call on
consumers to buffer some of the producer losses. According to Peltzman, regulation tends to
reduce the volatility of earnings and stock prices. This effect is the stronger, the lower the
power of the regulatory contract.
Dristi Pandey and Amrit Man nakami describes the necessity of risk assessment of
transmission line projects in Nepal considering all the financial aspects so that the problem
that persists in the construction of transmission line project due to various uncertainty
situations could be minimized. Various risk involved during the construction of the
transmission line and their effect on the net present worth of the project has been analysed
using the Monte-Carlo simulation for the establishment of profitable independent
transmission line project
Shwetank Parihar and Chandan Bhar conducted a study to assess the project risk
undertaken for completing various projects in the electrical power sector where the risk
factors associated with transmission lines installation is analysed using two techniques
(Interpretative Structural Modelling (ISM) and Analytical Hierarchy process(AHP)) to
identify the correlation between HR factors and general risks and rank the risks. The paper
provides a complete analysis on the transmission line risks and their interdependence among
themselves and human resource factors
Chao Fang and Franck Marle describes the quantitative method for modelling
propagation behaviour in the project risk network where it requires the involvement of the
project manager and related experts using the Design Structure Matrix (DSM) method. A
matrix based risk propagation model is introduced to calculate risk propagation and thus to
re-evaluate risk characteristics such as probability and criticality. This project risk analyses
provide project managers with improved insights on risks considering complexity and help
them to design more effective response actions

CHAPTER 3
COMPANY PROFILE
Power Grid, the Central Transmission Utility (CTU) of the country and a
Navratna public sector enterprise under the Ministry of Power, Govt. of India
and a listed company under Indian Companies Act, 1956 is engaged in Power
transmission business with the mandate for planning, co-ordination, supervision
and control over complete inter-state transmission system and operation of
National & Regional Power Grids.
POWER GRID BUSINESS SEGMENTS
POWER GRIDS BUSINESS SEGMENTS

TRANSMISSION

Development of
Central
Transmission
System
Generation Linked
Associated
Transmission

Grid Management
Real-time Grid

System for Ultra

Mega Power

Projects
Grid Strengthening
Inter-state, Inter-

regional and
International Links

CONSULTANCY
(NATIONAL
&INTERNATIONAL)

operation
Optimum scheduling
& despatch
Energy accounting
including
settlements
Administering
Renewable Energy
Certificates
Mechanism for
trading in Green
Certificates

TELECOM

Provides in-house

Owns & operates

Fibre optic cable
expertise in various
network of more
facets of:
than 20600 kms
NLD, ISP and IP-I
-Transmission
licensee to provide
-Sub-transmission
a variety of
services
-Distribution
Entered into
-Telecom
Infrastructure
Sharing Agreement
Provides services
with Telecom
both nationally and
Infrastructure
Service provider
internationally
for using power
including SAARC
line towers for
countries
mounting Telecom
antennae