INTRODUCTION

POWERGRID, the Central Transmission Utility (CTU) of the country, is engaged in power transmission business with the mandate for planning, co-ordination, supervision and control over complete inter-State transmission system. POWERGRID, as on July 2009, owns and operates about 71,600 ckt kms of transmission lines at 800/765 kV, 400 kV, 220 kV & 132 kV EHVAC & +500 kV HVDClevels and 122 sub-stations with transformation capacity of about 81,200 MVA. This gigantic transmission network, spread over length and breadth of the country, is consistently maintained at an availability of over 99% through deployment of state-of-the-art Operation & Maintenance techniques which are at par with global standards. About 45% of total power generated in the country is wheeled through this transmission network.

POWERGRID has been contributing significantly towards development of Indian power sector by undertaking coordinated development of power transmission network along with effective and transparent operation of regional grids and through continuous innovations in technical & managerial fields. Recognizing the role of POWERGRID in the overall development of transmission and power sector, Govt. of India has conferred Navratna upon status to POWERGRID in May` 08, the highest honour for a Public Sector Enterprise.

POWERGRID has continuously meet the challenging targets set under Memorandum of Understanding (MoU) with Ministry of Power. MoU rating of the Company has consistently been in the highest bracket (Excellent) since signing of its first MoU with Ministry of Power in 1993-94. Company has been chosen for the prestigious MoU Excellence Award for year 2006-07 for being amongst the top ten PSUs, with a distinction of being the only utility in Power Sector to be selected for this award. In fact, POWERGRID had received this prestigious Award in the past six occasions continuously since 2003-04. POWERGRID achieved unique distinction of being First Power Utility and Second Company in the world to get certified with Integrated Management System (IMS) as per Publicly Available Specification, PAS 99:2006 integrating requirement of ISO 9001:2008 (Quality), ISO 14001:2004 (Environment) & OHSAS 18001:2007 (Occupational Health & Safety Management System) after extensive audit. In its quest for excellence POWERGRID

achieved another milestone, during the FY 2007-08, in quality management and got certified to Social Accountability Standard, SA 8000:2008.

For optimum utilization of available natural resources in the country, National Grid is being developed by POWERGRID integrating five electrical regions, matching with generation capacity addition and growth in power demand. Inter regional capacity of about 20,800MW has already been established. The state-of-the-art Unified Load Despatch & Communication (ULDC) schemes implemented by POWERGRID are operational in all the five regions and are greatly contributing to bringing quality and economy in operation of power system besides improving data availability, visibility and transparency. The Regional Load Despatch Centres (RLDCs) are an epitome of technological excellence in grid operation through three tier hierarchical system, a unique feature in grid operation in the world. For overall co ordination at national level, POWERGRID has implemented National Load Despatch Centre (NLDC) at Delhi with back up at Kolkata, which has been commissioned in February, 2009. NLDC shall be the apex body to ensure integrated operation of the national power system.

Pro-active steps taken by POWERGRID in Grid Management have helped in improving grid stability & system availability and there has been no major grid disturbance in the country during last more than six and a half years. Minor grid disturbances in regional grids have also come down significantly. POWERGRID has diversified into Telecom to utilize spare telecommunication capacity from its Unified Load Dispatch Centre (ULDC) schemes thereby leveraging its country wide transmissioninfrastructure.

POWERGRID has in-house expertise at par with global standards in the field of Planning, Engineering, Load Despatch and Communication, Telecommunication, Contracting, Financial and Project Management. POWERGRID is offering consultancy not only in India but also on international level leveraging upon its strong in-house technical expertise developed over the years. POWERGRID is assisting various State Power utilities in implementation of their transmission /sub-transmission projects on turnkey basis. In the international arena, POWERGRID has also secured consultancy assignments

in Afghanistan, Nepal, Bhutan, Nigeria and Dubaiagainst stiff competition from international consultants. Our prestigious assignment of a 200km long 220kV line in Afghanistan commissioned in Jan` 2009. Besides, for a proposed under-sea interconnection with Sri Lanka, a prefeasibility report has already been submitted. Recently, POWERGRID has been identified as the implementing agency for 230kV transmission project in Myanmar to be funded by Govt. of India. POWERGRID has taken lead role and significantly contributing in Government of Indias nation building schemes of Accelerated Power Development and Reforms Programme (APDRP) and Rajiv Gandhi Grameen Vidyutikaran Yojana (RGGVY) which are aimed at bringing qualitative improvement in the distribution sector.

POWERGRID continues to give major thrust to Research & Development activities, which are mainly for optimization of cost of power transmission and also for conservation of Rightof-Way. Towards this, various new technologies have been adopted suiting Indian power system such as upgradation of transmission lines, use of Thyristor Controlled Series Compensation, high temperature endurance conductors, development of pole type tower structure for 400KV transmission lines, GPS/GIS based survey techniques etc. POWERGRID has taken initiative for development of major transmission highways using higher transmission voltage levels, i.e.765 kV EHV AC and 500 kV HVDC as a viable alternatives to achieve efficient utilization of existing RoW and increased power transfer capability for transfer of bulk power over long distances. Development of high capacity 800kV, 6000MW HVDC transmission system and 1200kV Ultra High Voltage (UHVAC) super grid, has been taken up to address the above issues. Ministry of Power, Government of India is envisaging addition of about 78,700 MW during XI Plan. Accordingly, transmission system is being planned by POWERGRID with an investment about Rs. 55,000 Crore in the XI Plan. POWERGRIDs achievements have been continuously been praised in terms of awards from GoI and various other agencies. The Company recently received Three National Awards for meritorious performance in the field of Transmission sector for system availability and early completion of project for the year 2007-08, All India Organization of Employers Industrial Relations award 2007-08, and IEEMA Power Awards 2009 for Excellence in Power Transmission. Further, POWERGRID has been conferred theThe First

DSIJ PSU Awards 2009 by Dalal Street Group of Publications for being one of the largest transmission utilities in the world.

POWERGRID INTO:
1 . Establishment of Transmission System

Power Grid core business is the transmission of electric power. It own and operate a large network of transmission lines and infrastructure that constitutes most of Indias interstate and inter-regional electric power transmission system and carries electric Power across India. Power Grid acquired its initial network of assets in Fiscal 1992 and subsequently through the Power Transmission Systems Ordinance, the GoI acquired and transferred the power transmission infrastructure of four of Indias largest power generating companies to us. Thereafter, transmission assets fro m other central generating companies were transferred to us an d we have subsequently expanded its transmission infrastructure ourselves. Completed Projects: From April 1, 2007 to September 30, 2010, we completed 32 transmission projects and schemes, valued in aggregate at approximately Rs. 138.6 billion. We contract out the construction of most of our transmission projects to contractors subject to our supervision and quality control.

Ongoing projects:

As on September 30, 2010, we had 68 transmission projects in various stages of implementation. These projects involve approximately 40,000 circuit kilometers of transmission lines and 65 substations with a total power transformation capacity of approximately 106,000 MVA. The budgeted cost of these pr ojects is Rs. 817,511.9 million. As on September 30, 2010, we had incurred costs of Rs. 236,014.7million

towards the 68transmission projects. The following link contains information about our ongoing projects:
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Status of Ongoing Projects.

Future Projects:

The GoIs Eleventh Five Year Plan commenced on April 1, 2007. The mid -term goal of the Eleventh Five Year Plan is to achieve a national power grid with inter -regional power transfer capacity of more than 27,950 MW, which would include our transmission system and those of others. During the Eleventh Five Year Plan upto March 31, 2010, we invested Rs. 254,405.2 million to further develop the national grid, including expanding inter -regional transmission systems and developing system strengthening schemes, transmission systems for the evacuation of power from central sector generation projects and U MPPs. Based on generation capacity targeted during the Eleventh Five Year Plan, we plan on capital expenditure of aggregate amount up to Rs. 295,594.8 million for expansion in Fiscal 2011 and Fiscal 2012. From April 1, 2010 to September 30, 2010 we had inv ested Rs. 36,824.6 million. On May 31, 2010, the CERC accorded regulatory approval to us, as CTU, to proceed with the execution of nine high capacity transmission corridors that will help transport electricity to the main load centers from 48 new IPPs loca ted in the coal belt, coastal areas capable of importing coal, or hydroelectric-rich areas in the northeast region.

Power Grid plan to invest over Rs. 1.1 Lakh Crores on transmission infrastructure during the 12th Plan, subject to Govt. approvals. Projec ts valuing Rs. 75,000 Crores have already been firmed up for commissioning in the 12th Plan, including 9 High Capacity Transmission corridors for IPP Projects in Orissa, Chhattisgarh, Sikkim, Andhra Pradesh, Madhya Pradesh, Tamil Nadu and Jharkhand with es timated cost of Rs. 52,000 Crores, transmission systems for Ultra Mega Projects (viz. Tillaiyya & Krishnapatnam) with estimated cost of Rs. 25,000 Crores and other Central Sector Projects with estimated cost of Rs. 17,000 Crores. These Projects include +_ 800 KV HVDC and 1200 KV HVAC systems, being implemented for the first time in the

country.

2 .Grid Management

For overall improvement and better grid management in the country, POWERGRID has modernised all the Regional Load Dispacth Centres (RLDCs) with the state-ofthe-art Unified Load Despatch & Communication (ULDC) schemes at a cost of about Rs. 2,000 Crore. These modernised RLDCs are greatly contributing to bring quality and economy in the operation of the power system besides imp roving data availability, visibility and transparency. With the adoption of state -of-the-art operational practices, proactive preventive maintenance, implementation of ABT, the modernization of RLDCs coupled with training & deployment of expert manpower an d round the clock vigil for grid management, no major grid disturbances in the country have been encountered for the last 6 years. Further, tripping of lines and minor grid disturbances in regional grids have come down so significantly that it can be reck oned as a benchmark achievement. For overall co-ordination, National Load Despacth Centre (NLDC) at Delhi,with back up at Kolkata, has been successfully commissioned on 25 February 2009 and running satisfactorily. POWERGRID has spearheaded the implementati on of Availability Based Tariff (ABT) across the country, which has a built-in commercial mechanism to reward proper grid behaviour. This has significantly stabilised vital grid parameters, i.e. voltage and frequency thereby improving the quality of power.

3. O&M of Transmission System

The Electricity Act requires every transmission licensee to comply with the technical standards of operation and maintenance of transmission lines, in accordance with the Grid Standards, as specified by the CEA.

The duties of a transmission licensee under the Electri city Act include amongst

others: (a) to build, maintain and operate an efficient and economic inter/intra state transmission system and

(b) to provide non-discriminatory open access to its transmission system for use by any licensee or generating company on payment of transmission charges and to any consumer on payment of transmission charges and a surcharge thereon in accordance with the Electricity Act.

Power Grid Corporation of India Ltd. takes continuous action regarding operation and maintenance to seek to ensure compliance with prescribed standards as well as to achieve high availability of the system for uninterrupted power supply to customers. The maintenance of the ISTS involves the routine inspection and overhaul of transmission system assets and the replacement of components. Condition assessment and monitoring techniques are used to help optimise maintenance intervals and reduce system outages. POWERGRID has developed flexible working pra ctices to take advantage of the system conditions for day-to-day maintenance work and also modify their annual maintenance programme according to generation maintenance schedules. Techniques such as live-line working are also used to enable certain types o f maintenance to be carried out without taking transmission lines out of service. Emergency restoration systems (ERSs) are used for early restoration in case of natural disasters and other exigencies.

4. Telecom
POWERGRIDs Telecom Business

With the vision to bridge the digital divide in the country and ensure that benefits of information revolution reach the entire length and breadth of the country, POWERGRID has diversified into Telecom utilizing right of way on its Extra High Voltage Power Transmission Network infrastructure in the country with its brand name as POWERTEL.

Among the telecom players, POWERGRID is the only utility in the country having overhead optic fibre network using OPGW (Optical Ground Wire) on power transmission lines. POWERGRID has an all India Broad Band Telecom Network of about 20,733 Kms with multiple self resilient rings for backbone as well as intra city access networks connecting more than 129 cities across the country and ensuring a reliability of more than 99.9 %.

POWERGRID has following Telecom Licenses:

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Infrastructure Provider Category - I (IP-I license) NLD License for providing end -to-end bandwidth ISP category A license to provide internet services in the country

Services Provided on POWERGRIDs Network:

The Network is capable of managing 32 channel DWDM system, connecting all the metros and remote locations in North East and Jammu & Kashmir. The balance network deploys SDH (STM 16/STM 4) systems. The following services are available on POWERGRIDs network:
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E1/E3/DS3/STM1/STM4/STM16 Leased Line Ethernet Private Leased Line Multi-site LAN Interconnect plus Internet Access Internet bandwidth

Unique Features of POWERGRIDs Telecom Network:

Most of the POWERGRIDs optic fibre backbone network is laid overhead on the extra high voltage Power transmission lines .The Telecom network on the Transmission lines has proved to be sturdy and secure, rodent menace free, vandalism proof which offers it distinct advantage over the undergr ound optic fibre. The other advantages of leasing bandwidth capacity on POWERGRIDs

Telecom route are:

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Instant bandwidth allocation on POWERGRIDs Telecom route End to end connectivity Instant upgradation to higher capacity Better Service Level Services catering to the specific needs of the customers High reliability, high quality service in a cost effective manner

5. Consultancy
POWERGRID has been a pioneer in providing consultancy services since 1995 to over more than 100 clients in power sector. Building upon vast in -house experience of building, maintaining over 79556 circuit kms of transmission lines and 132 EHV substations, POWERGRID provides the one stop consultancy services to other utilities ranging whole gamut of services pertaining to transmission system which include: Execution of new transmission lines from concept to commissioning Execution of new substations from concept to commissioning Execution of bay extension works Execution of OPGW work & SCADA / EMS under expansion of ULDC system Establishment and Modernisation of Load Despatch Centres Up-gradation of substations Providing tower and foundation designs & drawings Specialised testing of equipments System studies and preparation of report

Detailed Project Report (DPR) / Feasibility Report Distribution Management systems Contract & procurement services Project Management services Operation and Maintenance of transmission lines & substations Training & Workshop in various areas

The major Domestic clients of Power grid include all the major State Utilities and reputed Private clients like GMR, Adani Power, Lanco Power Limited, Jindal Power, Jaiprakash Power Ventures, Essar Power Transmission Company Limited etc.

MILESTONES ACHIEVED
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March 2009: Formation of a subsidiary company Power System Operation Corporation Limited.

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Feb 2009: Dedication of National Load Despatch Centre to the Nation May 2008: POWERGRID was notified as a Navratna Company. December 1998: POWERGRID was notified as the Central Transmission Utility by the Government of India. POWERGRID continues to be the CTU under the Electricity Act, 2003 as per the notification issued by the GoI on November 27, 2003.

October 1998: POWERGRID was notified as a Mini Ratna (Category I) company by the Government of India.

1996-1994: Control of the five regional load despatch and communication centres was transferred to POWERGRID in a phased manner.

POWERGRID undertook the unified load despatch and communication project (ULDC) under which modernized load despatch facilities have been established in each of the five regional centres.
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1994:

The

Government

of

India

entrusted

POWERGRID

with

the

responsibility of controlling the existing load despatch centres in the country with a view to achieve better grid ma nagement and operation.

August 1993: The transmission assets of Tehri Hydro Development Corporation Limited are transferred to POWERGRID. January 1993: The National Thermal Power Corporation Limited, the National Hydro Electric Power Corporation Limited an d the North-Eastern Electric Power Corporation Limited (Acquisition and Transfer of Power Transmission Systems) Ordinance (Power Transmission Systems Ordinance) was enacted , pursuant to which the right, title and interest of these three power generating companies in relation to the power transmission system, comprising of the main transmission lines, including the extra high voltage alternative current transmission lines and the HVDC lines, and sub-stations, owned by them, were acquired by the Government of India and transferred to Company, with effect from April 1, 1992.

April 1992: Transmission assets of Neyveli Lignite Corporation Limited were taken over by POWERGRID under the Neyveli Lignite Corporation Limited (Acquisition and Transfer of Power Trans mission System) Act, 1994.

April 1991: The transmission assets of Nuclear Power Corporation Limited were transferred to POWERGRID.