Power Grid Corporation of India Ltd
Directors Reports
Dear Shareholders,
On behalf of the Board of Directors, it gives me immense pleasure in
presenting the 32nd Annual Report on the performance of the Company, together with the
Audited Financial Statements for the financial year ended 31st March 2021.
The financial year under review was extremely challenging due to
ongoing COVID-19 pandemic. Electricity being an essential service, your Company rose to
the challenges by COVID-19 pandemic and ensured reliable transmission of power and
achieved yet another year of excellent performance in all areas of its operations.
Performance highlights of the Company are briefly mentioned here to
give an overview of accomplishments on all fronts:
• During FY 20-21, your Company achieved system availability of 99.78%.
The trippings per line decreased to 0.36, which is lowest in last five years.
• 7,403 circuit km (ckm.) of Extra High Voltage (EHV)
transmission lines, 27,624 Mega Volt Ampere (MVA) transformation capacity, 13 new
Substations (including subsidiaries and acquisitions) were added during the year.
• Assets capitalized by the Company in FY 20-21 were Rs 21,467 crore
on-consolidated basis.
• Important projects commissioned:
- Bipole 1 and associated HVAC and HVDC link under 800kV, 6000
MW, Raigarh - Pugalur - Trichur HVDC Transmission System, enabled Inter-Regional power
transfer of 3,000 MW, to meet power demand of Southern Region.
- One symmetrical monopole of VSC HVDC link along with HVDC lines
and HVDC cables under 320kV, 2000 MW, Pugalur - Trichur HVDC Transmission System has
been commissioned.
- Transmission System for power evacuation from Ultra Mega Solar
Parks of 2000MW at Tumkur (Karnataka) and 700MW at Banaskantha (Gujarat).
• For ensuring effective communication for the existing as well as
new Substations, 6,282 km of Optical ground wire (OPGW) was installed in FY 20-21.
• Emerged successful in 5 TBCB projects associated with
transmission strengthening scheme for evacuation of power from solar energy zones in
Rajasthan (8.1 GW) under Phase-II. Out of above 5 projects, 2 projects have been acquired
in FY 20-21. These 5 projects are having an aggregate annual levelized tariff of Rs 515.84
crore.
• Under Atmanirbhar Bharat Abhiyan, your Company, in collaboration
with BHEL has successfully commissioned India's first indigenously developed 400kV Optical
Current Transformer along with Digital Substation components (IEDs and SCADA) at 400/220kV
Bhiwadi Substation.
• Your Company has Commissioned a fully digital 400/220kV
Substation (including Bus Bar protection) with IEC 61850 Process Bus based Protection
Automation and Control system. This has been successfully demonstrated at 400/220kV
Malerkotla Substation.
• On standalone basis, the Company Total Income at Rs 40,527.11
crore during FY 20-21, increased by 5.77% & net Profit after Tax (PAT) at '11,935.78
crore during FY 20-21, increased by 10.40%, as compared to previous year.
• Dividend of Rs 9.75 per share declared for FY 20-21. Interim
dividend of Rs 6.75 per share paid and final dividend of Rs 3 per share recommended
for approval of shareholders (adjusted for bonus) as compared to Rs 7.5 per share in
previous year.
• Your Company has achieved remarkable collection efficiency of 103.78%
of billing in FY 20-21, despite the ongoing COVID-19 pandemic situation in the
country.
• Featured as ‘Fastest Growing Electric Utility in Asia
Pacific' for 7th successive year under Platts top 250 Global Energy Company Rankings 2020
and globally positioned as the 4th fastest growing electric utility.
• Your Company was the only Indian PSU to feature in ATD
(Association for Talent Development) BEST Award 2021 winner list along with 7 Indian
organizations.
1. FINANCIAL PERFORMANCE
In FY 20-21, the Company has shown a stellar financial performance. The
Financial Performance during year under review as compared to the previous FY 19-20 on
standalone basis is summarized below:
(All Figures except per share data are in units as indicated)
| Description |
2020-21 |
2019-20 |
Y-o-Y |
| Rs (crore) |
US $ (million) |
Rs (crore) |
US $ (million) |
Growth (%) |
| Revenue |
|
|
|
|
|
| Transmission Charges |
36,456.92 |
4,960.13 |
34,876.35 |
4,745.08 |
4.53 |
| Consultancy-Sale of Services |
501.28 |
68.20 |
610.98 |
83.13 |
-17.95 |
| Telecom |
707.45 |
96.25 |
698.21 |
94.99 |
1.32 |
| Other Income |
2861.46 |
389.31 |
2132.43 |
290.13 |
34.19 |
| Total Income |
40,527.11 |
5,513.89 |
38,317.97 |
5,213.33 |
5.77 |
| Profit After Tax (PAT) |
11935.78 |
1,623.92 |
10811.18 |
1,470.91 |
10.40 |
| Earnings per Share |
' 22.81 |
0.31(US $) |
' 20.67 |
0.28 (US $) |
10.35 |
| Book Value per Share |
' 133.00 |
1.81 (US $) |
' 123.17 |
1.68 (US $) |
7.98 |
| Gross Fixed Assets |
234284.32 |
31,875.42 |
215190.84 |
29,277.67 |
8.87 |
| Long Term Borrowings* |
141251.48 |
19,217.89 |
144979.64 |
19,725.12 |
-2.57 |
| Net Worth |
69578.84 |
9,466.51 |
64439.69 |
8,767.30 |
7.98 |
| Debt Equity Ratio |
67:33 |
69:31 |
|
| Return on Net Worth |
17.15% |
16.78% |
|
1.1. DIVIDEND PAYOUT & BONUS SHARE ISSUED
A final dividend of Rs 3 per share is proposed for FY 20-21, in
addition to first and second interim dividends aggregating to Rs 6.75 per share paid
(adjusted for bonus). The total dividend for the year thus amounts to Rs 9.75 per share
(adjusted for bonus) as compared to Rs 7.5 in FY 19-20. The total dividend payout for the
year amounts to Rs 6,801.07 crore (including interim dividends of Rs 4,708.43 crore). The
final dividend shall be paid after approval at the Annual General Meeting. The total
payout ratio for the year was 57% as compared to 54% for previous year.
Further, for the first time since inception, your Company has issued
Bonus Shares in the ratio of 1:3 i.e.,1 (One) equity share of nominal value Rs 10/-
(Rupees Ten Only) each for every 3 (Three) equity shares of nominal value of Rs 10/-
(Rupees Ten Only) each to its shareholders. Post Bonus Shares issuance, the Paid-up
capital of the Company stands increased to Rs 6975.45 crore.
1.2. TRANSFER TO RESERVES
For the FY 20-21, appropriation of profit has been made as follows:
a) General Reserve: Rs 6,000.00 crore
b) Self-Insurance Reserve: Rs 278.79 crore
1.3. GOI SHAREHOLDING
During the year, the Govt. of India shareholding remained unchanged at
51.34%.
2. SIGNIFICANT DEVELOPMENTS
2.1. SUBSIDIARIES ACQUIRED THROUGH TARIFF BASED COMPETITIVE BIDDING
(TBCB)
Since 2011, the Company has been participating in the TBCB process
mandated by GoI for allocating transmission projects. The projects so acquired are housed
in project-specific wholly owned subsidiaries of the Company.
During the year under review, the Company emerged successful in five
ISTS projects associated with renewable energy. Out of these, two projects were acquired
in FY 20-21.
As on 31st March 2021, eight TBCB subsidiaries were fully operational
with total TBCB transmission assets comprising 59 transmission lines with 7,264 ckm &
7 Substations with aggregate transformation capacity of 16,050 MVA. Cumulatively, the
Company, at the end of FY 20-21, owned 22 TBCB subsidiaries, the details of which are
provided in the Management Discussion & Analysis Report (MD&A).
Separate section has been included on financial review of the Joint
Venture Companies and Subsidiaries in MD&A.
2.2. TRANSFER OF SRINAGAR LEH TRANSMISSION SYSTEM (SLTS) TO POWERGRID
The flagship SLTS project was implemented by POWERGRID on consultancy
basis under the PMDP scheme of Govt. of India. The project provides connectivity to the
Ladakh region with the national grid, ensuring quality and reliable power supply. The
project component includes transmission line of 375ckm traversing through snow bound hilly
terrain and four new state-of-the-art 220/66kV Gas Insulated Substations along with 66kV
inter-connection systems at Drass, Kargil, Khaltsi and Leh. The project was commissioned
on 31st January 2019 and was dedicated to the Nation by Hon'ble P.M. on 03rd February
2019.
Upon reorganization of erstwhile State of Jammu & Kashmir into UTs
of J&K and Ladakh, SLTS has been re-designated as an Inter State Transmission System
(ISTS) and transferred to POWERGRID with effect from 31st October 2019 (the date of
formation of the two UTs of J&K and Ladakh).
2.3. ACQUISITION OF JAYPEE POWERGRID LIMITED (JPL)
JPL [a Joint Venture Company of POWERGRID (26%) and Jaiprakash Power
Ventures Limited (74%)] was incorporated in 5th October 2006 to evacuate power generated
from 1000 MW Karcham Wangtoo Hydro Electric power project in Himachal Pradesh. The assets
comprise two transmission lines of 449 ckm (400kV D/c Karcham-Wangtoo- Abdullapur
transmission line and LILO of 400kV Baspa-Nathpa Jhakri transmission line at Wangtoo)
which are under commercial operation since April 2012.
Your Company acquired 74% stake of Jaiprakash Power Ventures Limited at
an aggregate consideration of Rs 354.50 crore resulting in JPL becoming a wholly own
subsidiary of POWERGRID w.e.f. 25th March 2021. Consequent upon acquisition name of the
Company has been changed from Jaypee POWERGRID Limited to POWERGRID Himachal Transmission
Limited (PHTL).
2.4. SEPARATION OF CTU FUNCTIONS
Your company was designated as Central Transmission Utility (CTU) since
1998. Govt. of India has decided to separate the CTU functions from POWERGRID, initially
by designating a subsidiary of POWERGRID incorporated for this purpose as the CTU followed
by establishing it as a separate Government of India Company.
Your company incorporated a wholly owned subsidiary Central
Transmission Utility of India Limited (CTUIL), on 28th December 2020, which was notified
by the Govt. of India as ‘Central Transmission Utility' w.e.f. 01st April 2021
to undertake and discharge all functions of CTU. Your Company continues to be a deemed
Transmission Licensee under the Electricity Act,2003. As the CTU functions are not
commercial oriented, the separation of CTU functions is not expected to have material
impact on the business operations of the Company.
2.5. Monetisation of Transmission Assets through POWERGRID Investment
Infrastructure Trust (PGInvIT):
In order to mobilise resources to meet future capital requirement for
Company's growth, your company has undertaken monetization of assets through
Infrastructure Investment Trust (InvIT) model. This is in accordance with GoI guidelines
and your Company is the first CPSE to undertake asset recycling through InvIT structure.
In line with the approval accorded by the Govt. of India, your company
monetized operational assets held through 5 TBCB Special Purpose vehicles (SPVs) with
gross block value of about Rs 7,200 crore comprising 3699 ckm of transmission lines and 3
Substations having 6630 MVA transformation capacity in May'2021.
Details are covered in the Management Discussion & Analysis placed
at Annexure-I of this Report.
3. OPERATIONAL PERFORMANCE
3.1. ASSET MANAGEMENT
As on 31st March 2021, the Company's total transmission assets
including of its wholly owned subsidiaries consist of 1,321 transmission lines aggregating
to 1,70,685 ckm., 261 Substations with an aggregate transformation capacity of 4,37,523
MVA. The assets include 1,429 transformers, 14 STATCOMs and 3 Static VAR Compensators
(SVC), 4 Series Reactors, besides a number of Thyristor Controlled Series Compensators
(TCSC)/ Fixed Series Compensators (FSC).
In FY 20-21, the Company achieved 99.78% availability of
transmission network with number of trippings per line contained at 0.36. Proactive
maintenance management practices monitored through a web-based dashboard for Annual
Maintenance Plan launched during the year has helped the Company to achieve high
operational performance of its large and highly complex transmission asset network despite
the COVID-19 pandemic. Your Company also undertakes internal benchmarking on key
performance indicators to evaluate operational performance to identify gaps for
improvement, share key initiatives and achieve optimum operational performance.
Repair of GIS Substation equipment by the in-house maintenance teams of
your company at 06 Substations during COVID-19 pandemic prevented long outages of system
and resulted in considerable cost savings. Six HVDC convertor transformers were overhauled
and one 765kV line reactor was repaired at site, saving both time and cost of
transportation. It was the first time, that on-site repair of 765 kV class reactor was
carried out by your company.
Refurbishment of 2x250MW HVDC Vindhyachal back-to-back and 1500MW
bipole of 500kV HVDC Rihand-Dadri is being done to extend the life of projects which
served the Indian Power System for more than 25 years. The Refurbishment of HVDC systems
which is being done for the first time in India, will enhance the operating life of these
HVDC assets by approximately 10 years, thereby benefitting the end consumer through
continuing power supply at reduced cost.
State-of-the-Art, Travelling Wave Based Fault locators (TWFL) were
installed in 43 transmission lines in FY 20-21 to accurately identify the fault location.
With this 95 important transmission lines of your company have TWFL installed for better
fault location and early restoration.
The Company, for the past many years, has been participating in the
International Transmission Operation and Maintenance Study (ITOMS), a global O&M
benchmarking platform, comprising 32 leading global power transmission utilities, where it
has consistently ranked among the top performing transmission companies.
3.2. NATIONAL TRANSMISSION ASSET MANAGEMENT CENTRE (NTAMC), MANESAR
& REGIONAL TRANSMISSION ASSET MANAGEMENT CENTRES (RTAMCS)
To facilitate remote operation of your company's transmission system
and monitoring of various parameters on real time basis at regional and national levels,
NTAMC was set up at Manesar, near Gurugram, Haryana and RTAMCs were set up at various
locations across the country. These state-of-the-art centres are manned round-the-clock by
experts for effective monitoring and management of transmission assets.
Remote management of Substations has proved to be immensely beneficial
during the FY 20-21 to ensure uninterrupted supply of power despite COVID-19 pandemic.
During the FY 20-21, Eight (8) additional Extra High Voltage (EHV)
Substations were integrated with NTAMC for remote operation. At the end of FY 20-21, total
242 Substations are being operated remotely from these asset management centres.
3.3. ADOPTION OF LATEST TECHNOLOGY
Your Company uses various technological tools for ensuring better
availability of transmission lines such as aerial patrolling of transmission lines,
thermo-vision scanning, corona camera, high resolution video, digital camera,
application-based monitoring of transformers, reactors and patrolling of lines & real
time updation of data through online applications for effective monitoring of assets.
Your Company has commissioned, a full digital Substation (including Bus
Bar protection) with IEC 61850 Process Bus based Protection Automation and Control system
and successfully demonstrated by retrofitting of conventional control and protection
system at 400/220kV Malerkotla Substation. This technology provides lot of flexibility in
Engineering, faster commissioning, reduced down time and cost, enhanced diagnostics and
ease in trouble shooting during asset management.
3.4. CYBER SECURITY
The cyber security initiatives are led by Chief Information Security
Officer (CISO) through the Information Security Department in the Company. The Corporate
Office, all the Regional Headquarters and 213 Substations of the Company are certified for
ISO:27001 Information Security Management System. The Company undertakes extensive
training programs for its staff and participates in programs & mock-drills organized
by CERT-In and NCIIPC.
Further, the Company works in close liaison with the designated
statutory bodies, namely Indian Computer Emergency Response Team (CERT-In) and National
Critical Information Infrastructure Protection Centre (NCIIPC). The advisories issued by
these institutions from time to time are complied with and shared with other Transmission
Sector utilities. POWERGRID has also been given responsibility as the sectoral Computer
Emergency Response Team (CERT) for the Transmission Sector by Ministry of Power.
3.5. SAFETY
Your Company is committed for maintaining a safe working environment
for all its employees and ensuring best possible safe conditions of work, for which all
necessary steps are taken to ensure that all known safety factors are considered during
design, construction, operation and maintenance of machinery and equipment of Substations
& transmission lines to the extent as applicable as per standards.
Safety policy, rules and guidelines are implemented by publishing/
notifying instruction, notices in Hindi, English and other vernacular languages for
broader circulation and are monitored routinely by a three-tier safety setup (Corporate
Centre, Region and site levels). Further, the contractual provisions for safety are
reviewed and amended to augment the safety commitment by all working agencies with their
feedback from time to time.
New technology adoption i.e. usage of induction helmet & band to
alert the person working in vicinity of induction zone are being adopted for safety at
sites. Tackles to climb on PSC poles and to aid positioning during tower erection are
being developed to aid the persons climbing on PSC poles and tower erection works.
Safety audits/ inspections, trainings, safety briefings and mock-drills
are carried out for all contract workers and POWERGRID staff at various O&M and
construction sites. During FY20-21, about 400 construction site inspections, about 2,900
safety-training sessions for contractor employees, about 800 safety-training sessions for
POWERGRID staff and about 920 mock-drills were carried out.
Daily safety briefings & pep-talk were delivered in local languages
at all sites to educate workers on the hazards associated with works and how to identify
them & safety measures that must be taken to prevent injury. Besides above, safety day
& fortnight celebrations, involving employees and contractual workers are being
conducted which help in creating awareness for adherence to safety.
4. DISASTER MANAGEMENT
The Company has in place a "Disaster & Crisis Management
Plan" for taking swift actions during pre and post disaster conditions and for speedy
restoration of damaged power infrastructure. It outlines a hierarchical set up of crisis/
disaster management at various levels for effectively and efficiently dealing with crises
and disasters as well as roles/ responsibilities of different departments in disaster
management.
Based upon the inputs of India Meteorological Department (IMD), the
Company took preparatory steps before the onset of all cyclones during FY 20-21. No major
damages were caused to your Company's transmission network during major cyclones namely,
Amphan, Nisarga, Nivar and Burevi due to advance preparedness and robust infrastructure,.
The Company also extended its full support to the transmission and distribution utilities
of the affected States by providing men and material for early restoration of their
damaged transmission and distribution network.
5. PROJECT IMPLEMENTATION
The lockdown in the month of March & April 2020 to prevent the
spread of COVID-19 and consequent restriction on movement of men and material had impacted
project construction activities during the year. Various measures were taken to mitigate
COVID-19 impact on project construction. Workers at site were provided various support
during the lockdown period to tide over the situation.
Despite the constraints arising due to the pandemic, your Company's
strong project management practices resulted in addition of about 6,580 ckm of EHV
transmission lines, about 27,320 MVA transformation capacity and 9 new Substations in FY
20-21. This includes 866.05 ckm. of EHV transmission lines, 6,420 MVA transformation
capacity and 3 new Substation added during the year by the Company's wholly owned TBCB
subsidiaries.
Further, about 6,282 km of OPGW network was added during the year to
support voice and data communication with Regional Load Dispatch Centres (RLDCs)/ State
Load Despatch Centres (SLDCs) for effective grid management.
MAJOR TRANSMISSION ASSETS COMMISSIONED INTER-REGIONAL LINES
• 800kV Raigarh - Pugalur LCC HVDC link along with Bipole-I
(Pole-I and Pole-II, 3000 MW)
INTERCONNECTIONS WITH BANGLADESH
• 400kV D/c Baharampur (PG) - Bheramera (B'desh) line (2nd D/c
line) - India portion
TRANSMISSION SYSTEM ASSOCIATED WITH ULTRA MEGA SOLAR PARKS
• 400kV D/c Tumkur (Pavagada) PS - Devanahally (KPTCL) (Quad) line
• 400kV D/c Hiriyur - Mysore line
• 400kV D/c Banaskantha PS - Banaskantha (PG) line
TRANSMISSION SYSTEM FOR STRENGTHENING OF SOUTHERN REGION GRID
• 400kV D/c Pugalur HVDC Station - Pugalur line
• 400kV D/c Pugalur HVDC Station - Arasur line
• LILO of 400kV D/c North Trichur - Cochin line at North Trichur
HVDC Station
• 320kV VSC HVDC Pugalur - North Trichur (Kerala) link (One
Symmetrical monopole of 1000 MW)
OTHER IMPORTANT TRANSMISSION LINES
• Additional line 400kV D/c line at P.K.Bari S/s & Silchar
S/s. end for termination of 400kV D/c P.K. Bari - Silchar line.
• 400kV D/c NNTPS Switch Yard - Ariyalur (Villupuram) line
• 400kV D/c Rajarhat - Purnea line (Triple Snowbird)-balance
portion
• 400kV S/c (Quad) Tehri Gen. - Tehri Pooling Station line
TBCB LINES
- Interstate Projects
• 765kV D/c Ranchi (New) - Medinipur line (ERSS-XVIII)
• LILO of both ckts of 400kV D/c Chandithala -Kharagpur line at
Medinipur S/s (ERSS-XVIII)
• LILO of both ckt of 400kV D/c Nabinagar-II - Gaya line at
Chandauti S/s (ERSS-XXI)
- Intrastate Projects - (POWERGRID Jawaharpur Firozabad Transmission
Limited)
• LILO 765kV S/c Mainpuri - Gr. Noida line at Jawaharpur S/s
• LILO of one circuit of 400kV D/c Agra South - Fatehabad (765kV)
line at 400kV Firozabad S/s
• LILO of 220kV Firozabad (220kV) - Agra (765kV PG) line at 400kV
Firozabad S/s
• LILO of 132kV S/c Etmadpur - Barhan line at 400kV Firozabad S/s
• 132kV D/c Firozabad (400kV)-Narkhi line
As on 31st March 2021, the inter-regional power transfer capacity of
the transmission assets belonging to the Company and its subsidiaries was 90,090 MW and
inter-regional power transfer capacity of the National Grid was 105,050 MW.
6. CAPITAL INVESTMENT, FUND MOBILIZATION & INVESTMENT APPROVAL of
NEW PROJECTS
During FY 20-21, the Company made a consolidated capital investment of
Rs 11,150 crore on cash basis. To finance this investment, the Company mobilized Rs 6,010
crore through bonds & term loans, Rs 1,589 crore through External Commercial
Borrowings (ECB)/ Suppliers' Credit, Rs 3,516 crore from Internal Resources and Rs 35
crore through grants received from Power System Development Fund & from Central
Financial Assistance (Ministry of New and Renewable Energy).
During the year, investment approvals for transmission projects under
regulated tariff mechanism (RTM) worth about Rs 1,092 crore have been accorded. Further,
the Company also acquired projects estimated at Rs 1,700 crore under TBCB mechanism during
FY 20-21.
7. COMMERCIAL HIGHLIGHTS
Sharing of Inter-state transmission charges is governed by CERC
(Sharing of Inter State Transmission Charges and Losses) Regulations, as notified from
time to time in line with the National Tariff Policy notified by Govt. of India and
provisions of the Electricity Act, 2003. Presently, CERC (Sharing of Inter State
Transmission Charges and Losses) Regulations, 2020 are in vogue. These regulations came
into force with effect from 1st November 2020 superseding the CERC (Sharing of inter-state
transmission charges and losses) Regulations, 2010. As per the Sharing Regulations, 2020,
the Company, as the Central Transmission Utility (CTU), had the responsibility of billing
& collecting transmission charges on behalf of all ISTS licensees in the country and
disbursing to them till 31st March 2021.
The Company effectively discharged the assigned responsibilities and
achieved remarkable collection efficiency of 103.78% of billing in FY 20-21 despite the
ongoing Covid-19 pandemic situation in the country.
Providing Relief to Various Stakeholders to Combat Financial Crisis on
Account of COVID-19 Pandemic:
The revenues of the state utilities were impacted by the lower demand
for power and overall reduction in economic activity during the lockdown period. In order
to mitigate their hardship and keeping in view the advice of the Ministry of Power,
Government of India, relief was provided by way of a one-time consolidated rebate of Rs
1,078.64 crore in the billing for the month of April 2020 & May 2020 to various
DISCOMs / Power Departments of the States and Union Territories for passing on the same to
the end consumers. The rate of surcharge was reduced from 18% to 12% per annum for the
bills that became due during the period from 24th March 2020 to 30th June 2020 and for all
payments received through the Liquidity Infusion Scheme of PFC and REC under Atmanirbhar
Bharat scheme. Under Atmanirbhar Scheme, an amount of Rs 2,623.26 crore has been received
during FY 20-21 by your company which significantly reduced the outstanding dues at the
year end.
8. CROSS BORDER INTERCONNECTIONS
In FY 20-21, Muzaffarpur (India) - Dhalkebar (Nepal) 400kV D/c line was
upgraded at its rated voltage. The cumulative power transfer capacity through cross-border
interconnections with Bhutan, Bangladesh, Nepal and Myanmar increased to about 4,230 MW.)
during the year. Additional links for interconnection with Nepal through the 400kV D/c
Gorakhpur (India) - New Butwal (Nepal) (Quad) transmission line, with Bhutan through 400kV
D/c Jigmeling (Bhutan) - Alipurduar (India) (Quad) transmission line are under
implementation. The Government of India has mandated your company to implement the 765kV
D/c Katihar - Parbotipur - Bornagar transmission line which provides connectivity between
the states of Bihar and Assam through Bangladesh. Discussions are in progress with
Bangladesh Government authorities for finalising the modalities for the implementation of
this line.
9. INTEGRATION OF RENEWABELE ENERGY (RE), CONNECTIVITY, LONG TERM
ACCESS (LTA) & MEDIUM-TERM OPEN ACCESS (MTOA)
The Company, as the Central Transmission Utility (CTU), in consultation
with various stakeholders, had evolved a comprehensive transmission scheme for grid
integration of various Renewable Energy Zones (66.5 GW) in the country. These transmission
schemes are being taken up for implementation in a progressive manner. The Company, as the
CTU, was also the nodal agency for processing & grant of Connectivity, Long Term
Access (LTA) and Medium-Term Open Access (MTOA) to various applicants.
During FY 20-21, connectivity granted to 162 eligible applicants for a
quantum of about 70,931 MW (cumulative 742 applicants for a quantum of about 3,00,324 MW
as on 31st March 2021) and LTA to 38 applicants for a quantum of about 9,916 MW
(cumulative 313 applicants for a quantum of about 1,24,653 MW as on 31st March 2021).
Also, based on available margins in the transmission capacity, MTOA has
also been granted to 7 applicants for a total quantum of about 936 MW (cumulative 158
applicants for a total quantum of about 17,248 MW as on 31st March 2021).
Your company ceased to be the CTU and CTUIL has been notified by the
Government of India to carry out statutory functions as identified for CTU under the
Electricity Act, 2003 and also other functions assigned to CTU by CERC w.e.f. 01st April
2021.
10. OTHER BUSINESSES
10.1 TELECOM BUSINESS - ‘POWERTEL
Your Company is providing a range of services under its Unified License
as National Long Distance (NLD) and Internet Service Provider - Category ‘A'
(ISP-‘A') service authorizations including point-to-point leased line bandwidth
services, Internet Leased line, Tower co-location, MPLS based IP-VPN, SD-WAN, DDoS etc. in
all parts of the country through its Pan India high capacity network.
During FY 20-21, the Company's telecom network coverage increased to
71,673 km from 66,922 km at the end of previous year and the telecom backbone availability
for the year was 100%. The Company extended support to its clients during the COVID-19
lockdown period by ensuring quick response to their upgradation and other customer service
requests.
The Company is also exploring new businesses like setting up of Data
Centres, use of transmission towers for telecom purposes by providing power to the telecom
antennae, etc. With a vision to directly serve neighboring countries with reliable
connectivity, your Company is proposing to obtain International Long Distance (ILD)
service authorization from Department of Telecommunication (DoT) to serve Nepal, Bhutan
and Bangladesh.
Further, your Company has received approval from GoI & CERC for
formation of wholly owned subsidiary Company for Telecom business.
Details are covered in the Management Discussion & Analysis placed
at Annexure-I of this Report.
BHARAT NET
Your Company is one of the implementing agencies for ‘Bharat Net'
Phase-I project envisaged to provide broadband connectivity to Gram Panchayats (GPs), thus
making valuable contribution to the initiatives of the Govt. of India for Digital India.
The Company has laid OFC for 10,739 GPs by the end of FY 20-21, out of
10,838 GPs allotted to the Company by Bharat Broadband Network Limited (BBNL) under
Phase-I. The scope of work is spread across 39 districts in 5 States viz., Andhra Pradesh,
Telangana, Himachal Pradesh, Jharkhand & Odisha.
10.2 CONSULTING SERVICES
Your Company, one among the largest power transmission utilities in the
World, has developed expertise in its core areas such as power transmission projects,
sub-transmission system, distribution management, load dispatch & communications, in
India and abroad. Leveraging its capacity and experience, consulting services have been
provided to a number of customers in India and worldwide.
DOMESTIC MARKET
Your Company, as a Consultant on behalf of Govt. of India, is
implementing two important projects for strengthening of the Intra-State Transmission and
Distribution Systems (33kV and above) namely ‘NERPSIP' in Manipur, Meghalaya,
Mizoram, Tripura, Nagaland & Assam and ‘Comprehensive Scheme' for strengthening
of Transmission & Distribution in Arunachal Pradesh and Sikkim.
Further, the Company bagged 22 new consultancy assignments in FY 20-21.
Major consultancy assignments received during the year include:
• Consultancy services to THDC India Ltd for implementation of
400kV D/c line from their Khurja STPP to the 400kV switchyard of 765/400kV Aligarh SS (PG)
and 400kV terminal bays at Aligarh S/s.
• Consultancy services to OPTCL for restoration of 220kV D/c
Pandiabili- Samagara Transmission Line.
• Consultancy services to Lanco Teesta Hydro Power Ltd. (LTHPL)
for Turnkey execution of 220kV D/c dedicated transmission lines from 500MW LTHPL Teesta VI
HEP to POWERGRID Rangpo Pooling Station and associated bays at Rangpo.
• 05 consultancy agreements were signed with different Renewable
(Wind & Solar) developers for implementation of 220kV terminal bays at POWERGRID
Substations.
INTERNATIONAL MARKET
On the International front also, the Company has been providing
consultancy to various clients in Nepal, Bangladesh, Uganda and Fiji.
During the year, the Company secured new consultancy assignments in
Fiji for Project Management and Construction supervision of 132kV transmission system.
The Company is under discussions with Africa50, which is an investment
platform owned by 28 sovereign Governments in Africa and two Central banks and African
Development Bank for investments in building transmission assets in Kenya under
public-private partnership (PPP) model through a joint venture.
10.3. ENERGY MANAGEMENT
Realizing the significance of energy saving aspect for sustainable
development, your Company is pursuing business opportunities in energy saving by way of
conducting energy audits and implementation of Energy Efficiency & Sustainable
development projects in various Govt. as well as private agencies, e.g. industries,
institutions, commercial establishments, State Transmission Utilities, etc. Your Company
is a BEE Grade-I Energy Service Company (ESCO) for investing /implementing energy
efficiency projects and has a large pool of certified energy auditors/energy managers who
are well qualified to offer energy efficiency solutions.
During the year, the Company signed MoU with CSIR-NEERI for long term
association in the area of Energy Efficiency and Sustainable Energy. The MoU would
facilitate setting up Waste to Energy plants, Solid Waste Management etc. in various
establishments.
10.4. EV CHARGING INFRASTRUCTURE
The Company is promoting e-mobility by adopting Electric Vehicles (EV)
for its own use and by installing fast EV charging stations across the country.
During the year, the Company set up eleven (11) more EV fast-charging
stations. Now, POWERGRID is operating 16 public EV charging stations at Delhi, Gurugram,
Hyderabad, Ahmedabad, Bengaluru, Kochi & Kozhikode. Work on additional 24 public EV
charging stations is in progress in Delhi, Bengaluru, Mysuru and Shillong. POWERGRID is
developing 11 EV charging stations in Shillong under Faster Adoption and Manufacturing of
(Hybrid &) Electric Vehicles (FAME) India scheme phase-II.
Discussions are in progress with various Municipal Corporations,
DISCOMs, Metro Rail Authorities etc. for expanding Energy Vehicle Charging Station
network.
11. QUALITY MANAGEMENT
The Company has developed and maintained systems & procedures
aligned with Integrated Management System as per Publicly Available Specification, PAS
99:2012 integrating requirements of ISO 9001:2015 (Quality Management System), ISO
14001:2015 (Environment Management System) and ISO 45001:2018 (Occupational Health &
Safety Management System).
The Integrated Management Systems were audited by a third party and
POWERGRID has successfully passed all the standard requirements. Systems were also audited
for maintenance of Social Accountability Standard, SA: 8000, Energy Management Systems as
per ISO:50001 and Information Security Management Systems as per ISO:27001.
Further, the contract conditions require contractors to submit a
quality assurance programme, aligned to ISO requirements.
Despite COVID-19 pandemic, all the inspections, sub vendor assessments
and other quality related activities were undertaken in a well-planned manner using a mix
of actual visits during low impact period of Covid-19 and virtual visits during severe
Covid-19 pandemic conditions. Around 17,000 inspection calls were received & attended
considering all Government guidelines/regulations during the year to ensure quality during
manufacturing.
12. TECHNOLOGY DEVELOPMENT
Your Company has been at the forefront in adoption of state-of-the art
technologies and undertakes applied research and development activities in pursuit of
technological excellence in power transmission.
In the previous years, POWERGRID has catered to the internal research,
analysis, testing, calibration and ever-growing asset management needs of the organization
through its state-of- the-art laboratories. Apart from this, the laboratories have
extended services to external clients for Dynamic testing, Conformance testing etc. of
Intelligent Electronic Devices (IEDs), Compliance Testing of Phasor Measurement Units
(PMU), Electric and Magnetic field measurement and analysis, etc.
During the year, in a boost to Atmanirbhar Bharat Abhiyan POWERGRID, in
collaboration with BHEL has successfully commissioned India's first indigenously developed
400kV Optical Current Transformer along with Digital Substation components (IEDs and
SCADA) at 400/220kV Bhiwadi Substation of POWERGRID. This collaborative R&D project is
a major step towards complete digitization of the Substation automation system.
Your Company has also developed an in-house simulation software for
Electric and Magnetic Field (2D) analysis which could be used in the design verification
in power transmission lines.
In a bid to secure the intellectual property rights of the Company, a
patent application has been filed for ‘System and method for health assessment of
Transformers and Reactors'. In addition, copyright has been received for two in-house
software systems developed for UHV/EHV equipment condition monitoring and health
assessment i.e. for the Transformer Online Condition Monitoring System (TOCMS) and
POWERGRID Asset Life Management System (PALMS).
13. DIGITAL TRANSFORMATION:
Your Company has taken upvarious digital initiatives towards paperless
working providing greater transparency and ease of doing business. These initiatives
enabled business continuity during the covid lockdown facilitating work from home by its
employees.
The Company has established an e-Tendering Portal-PRANIT certified by
Standardization, Testing and Quality Certification Directorate (STQC), Ministry of
Electronics and Information Technology, Govt. of India. With this, POWERGRID is now the
only organization in India to have an e-Procurement solution on SAP Supplier Relationship
Management (SRM).
Centralized Vendor Bill Processing facilities are being established
through POWERGRID Payment Processing and Facilitation Centers (PPPFCs) at strategical
locations to streamline the processes of verification of bills and release of payments,
optimizing the resources, to enhance the transparency and accountability in the system.
The Company has successfully achieved SAP Customer Center of Expertise
(CCoE) Certificate. This signifies that Company has the knowledge, capabilities and
framework to bring forward continuous improvement and innovation in our ERP
implementation.
14. CONTRIBUTION TO GOVT. OF INDIA SCHEMES - RURAL ELECTRIFICATION (RE)
WORKS UNDER DEENDAYAL UPADHYAYA GRAM JYOTIYOJANA (DDUGJY)/ PRIME MINISTER'S
DEVELOPMENT PACKAGE (PMDP)-2015
Rural Electrification Infrastructure works under DDUGY/PMDP schemes are
under progress in 6 districts in J&K UT & 2 districts in Ladakh UT and Intra-state
transmission works of 6 projects are under progress in J&K UT under PMDP.
Till date, under GoI's DDUGJY/PMDP for rural electricity infrastructure
and household electrification, the Company has implemented infrastructure work for rural
electrification in 95 districts of 10 States in the country. Infrastructure has been
created for electrification of 87,409 villages (i.e., partially electrified &
un-electrified villages) and service connections have been provided to about 44 lakhs BPL
households.
15. PARTICIPATION IN GOVT. OF INDIA INITIATIVES
15.1 PROMOTION OF MAKE IN INDIA'
The Company, through continuous measures, has encouraged local sourcing
of various goods for development/ operations of transmission system.
With POWERGRID's efforts, new plants and facilities have been set-up in
India over the past few years by a number of foreign manufacturers for equipment like GIS,
transformers, reactors, STATCOM, OPGW, etc., thereby paving way for a wider vendor base
and emergence of a more efficient supply chain. As a result, your Company is able to
reduce its import of transmission related equipment from 12.23% in FY 16-17 to 2.60% in FY
20-21.
The Company is actively working for development of its vendor base by
encouraging local suppliers, MSE firms and existing vendors.
15.2 PROMOTION OF MICRO, SMALL AND MEDIUM ENTERPRISES (MSME)
The Company has been complying with the guidelines issued by the
Government from time to time for promotion of MSMEs. The Company is registered on all the
three (03) available Trade Receivable e-Discounting System (TReDS) platforms of (i)
Receivable Exchange of India Limited (RXIL) (A NSE - SIDBI JV), (ii) Mynd Solutions
Private Ltd (M1xchange) and (iii) A TREDS Ltd. (Invoicemart).
Suitable provisions have already been incorporated in the bidding
documents of POWERGRID for procurement of various products and services rendered by Micro
and Small Enterprises (MSEs) in line with the Public Procurement Policy of the Govt. of
India.
In terms of the above policy of the Govt. of India, the total eligible
value of annual procurement of goods produced and services rendered by MSEs (including
MSEs owned by SC/ ST and women entrepreneurs) during FY 20-21 was Rs 2,332 crore. The
total procurement from MSEs (including MSEs owned by SC/ST and women entrepreneurs) was Rs
1,085 crore (46.51%). The Company has achieved the target of mandatory procurement of 25%
out of total annual purchases of products and services rendered by Micro and Small
Enterprises in line with Public Procurement Policy (Order 2012) read in conjugation with
its amendment in November, 2018.
Total eligible value of annual procurement of goods produced and
services rendered by MSEs (including MSEs owned by SC/ST and Women entrepreneurs) for FY
2021-22 is projected to be in the range of Rs 1,100 crore.
During the year, in order to encourage and develop Micro and Small
manufacturers for supply of innovative & quality products, MSE vendor development
programs/webinars were conducted on virtual platform due to the COVID-19 pandemic. Special
focus was kept on Micro and Small Enterprises owned by SC/ ST and Women entrepreneurs. The
response of Micro and Small Enterprises in these virtual meetings/webinars was
overwhelming. A number of Micro, Small & Medium Enterprises have been developed as
sub-vendors and approved for supply of components for various equipment.
16. SUSTAINABLE GROWTH
Your Company's activities are non-polluting in nature and their
environmental impacts are negligible. The principles of Environment, Social and Governance
(ESG) are being embedded by your Company into business operations and is continuing to
attach highest importance to ESG ecosystem.
The Company is taking steps to align its sustainability related aspects
with global requirements and is participating in assessment surveys carried out by MSCI,
FTSE and S&P Global CSA annually, wherein Company gets an opportunity to benchmark its
various parameters pertaining to ESG under electric segment having domestic &
international peers.
Your Company is committed to use of green technologies to reduce carbon
footprints by adoption of electrical vehicles for its usage and development of electrical
vehicle charging infrastructure in association with various public utilities for achieving
the national target of e-mobility. Further, your Company has installed rooftop solar PV
plants of more than 6MWp at more than 70 locations which are cumulatively generating about
8 million units of electricity annually, thereby reducing Co2 emission of approximately
8000 MT per year. Establishment of additional 5 MWp Rooftop Solar PV systems in 66
locations is in progress.
16.1 ENVIRONMENT AND SOCIAL MANAGEMENT
POWERGRID, being a responsible corporate entity, addresses any residual
environmental or social impacts associated with its business following the cardinal
principles of Avoidance, Minimization and Mitigation as outlined in its Environmental and
Social Policy & Procedure (ESPP) which was developed way back in 1998 and updated from
time to time.
The acceptance of ESPP provisions by leading multilateral agencies like
The World Bank in 2009 and The Asian Development Bank (ADB) in 2017 under their policy of
Use of Country System (UCS) and Country Safeguard System" (CSS) respectively is a
reflection of our commitment and implementation record for E & S safeguard management.
POWERGRID, a pioneer in Sustainability Reporting in the Indian Power
Sector released its 6th biennial sustainability report for FY 2017-19 in September 2020
based on internationally acclaimed/accepted "Global Reporting Initiative (GRI)
Standards (Core)" duly validated by independent Accredited Assurance Provider.
The Company, in partnership with Global Reporting Initiative (GRI)
South Asia, has taken several initiatives towards fulfillment of India's commitment to
United Nation's Sustainable Development Goals (SDGs) Agenda 2030 and has already aligned
its activities with 11 SDGs out of total 17.
16.2. CORPORATE SOCIAL RESPONSIBILITY (CSR)
For social and economic development of communities, your Company
undertakes CSR activities in areas of rural development, education, skill development,
health & sanitation and other areas of national importance. The projects are conceived
in consultation with the stakeholders, primarily in the vicinity of its area of
operations.
The Company has spent Rs 240.48 crore exceeding the prescribed CSR
budget of Rs 233.79 crore (2% of the average PBT of preceding three years) for the
FY20-21. Further, 119 new CSR projects of Rs 179.77 crore were sanctioned. Project-wise
details are given at Annexure - X of this Report.
During the year, the Company contributed Rs 70 crore to PM CARES Fund
towards COVID-19 pandemic. Projects worth Rs 28.05 crore were also undertaken towards
providing more than 1.52 lakh packets of cooked meal, about 1850 MT ration items, 8530 PPE
kits and other items to nearly 2.80 lakh beneficiaries at 276 locations in the vicinity of
Substations/construction locations throughout the country.
The Company provided assistance in COVID-19 vaccination programme
through procurement of cold chain equipment for supporting existing infrastructure for the
States of Punjab, Mizoram, Sikkim and Ladakh.
The Company has supported establishment of a Hub and Spoke model Tele-
ICUs at Sanjay Gandhi Post Graduate Institute of Medical Sciences (SGPGIMS), Lucknow and
at their selected medical colleges in the State of Uttar Pradesh. The Company has also
supported Tata Memorial Centre (TMC) for developing Modular Operation Theatres at Women
and Child Hospital, ACTREC campus, TMC, Navi Mumbai.
The Company has provided financial Assistance towards Integrated
Development of Kevadia town in Gujarat and for construction of 2.5 km, 10m wide road and
fagade enhancement of public building along with associated works for re-development of
Shri Badrinath Dham town as a Spiritual Smart Hill.
17. GOVERNANCE
17.1 RIGHT TO INFORMATION
In order to promote transparency and accountability, an appropriate
mechanism has been set up across your Company in line with ‘Right to Information Act,
2005'. The Company has nominated Public Information officers and Appellate Authorities at
Corporate, Regional Head Quarters and other offices to provide required information to the
citizens under the provisions of Act.
The Company has also developed its own web based online RTI portal,
which facilitates timely reply of RTI/Appeal to applicant by real time monitoring of all
RTIs/ Appeals. The portal also facilitates auto generation of various RTI reports for
internal and external stakeholders.
In FY 20-21, around 1000 RTI applications were received in the Company
and processed timely as per the RTI Act, 2005. Training programmes/ awareness sessions for
the Company's CPIOs/PIOs/Appellate Authorities were organized for sensitization about
their role in implementation of the RTI Act.
The Company has also conducted third party audit of suo-motu disclosure
as per section 4(1)(b) of RTI Act,2005 and also published the third-party report on
POWERGRID website.
17.2. COMMITMENT TO TRANSPARENCY & VIGILANCE FUNCTION
The Company advocates the principles of Transparency, Probity and
Ethics in its management functioning. Vigilance Department of your Company performs
Preventive, Pro-active as well as Punitive Vigilance and ensures that best ethical
practices are followed in the organization.
EMPHASIS ON PREVENTIVE VIGILANCE
To strengthen the organizational process and to minimize malpractices
in various systems & activities of the organization, emphasis on preventive vigilance
is given. Preventive vigilance focuses on the right types of systems or need for
re-engineering proactive approach aimed at identification of opportunities and taking
action against potential threats.
During FY 20-21, 56 surprise inspections, 30 process-on-line
inspections and 17 Chief Technical Examiner (CTE) Type inspections were conducted.
Pursuant to Vigilance inspections and observations/ recommendations, a number of system
improvements have been implemented.
PREVENTIVE VIGILANCE WORKSHOPS AS PART OF CAPACITY BUILDING
During FY 20-21, various Preventive Vigilance Workshops, Webinars were
conducted for non-vigilance personnel at the Corporate Centre as well as at various
regions of the Company. These workshops inter-alia cover contracts management, provisions
of CDA Rules, compliances of rules and policies, common irregularities, deliberation of
case studies based on real cases, quality aspects as well as Ethics Management which
enables the employees to identify and deal with ethical dilemma.
VIGILANCE AWARENESS
Vigilance Awareness Week 2020 was observed in POWERGRID from 27th
October to 2nd November 2020 (pursuance to the directions of Central Vigilance Commission)
in line with the theme for this year "Vigilant India, Prosperous India",
with full vigor, following all government guidelines regarding the pandemic.
POWERGRID employees and their family members celebrated the Vigilance
Awareness Week with great enthusiasm. A total of 392 activities including various
competitions viz. essay, quiz, slogan and painting competition for kids were organized by
POWERGRID for employees and their family members wherein approximately 6000 individuals
participated. The message of Vigilance Awareness Week 2020 was propagated through FM
Channel, print and electronic media in national as well as regional languages.
Stakeholders were also involved through vendor meets, which were conducted at CC and all
regions.
Approximately 7400 POWERGRID employees across all locations took the
Integrity Pledge through live transmission.
Journal of Vigilance department of POWERGRID (CANDOUR) was released
during the closing ceremony of Vigilance Awareness Week at its Corporate Centre, Gurugram.
In line with the Commission's guidelines, the magazine was released in digital form
(e-CANDOUR) for the employees and general public.
17.3. CITIZEN'S CHARTER
A Citizen's Charter has been formulated for the Company providing a
visible front of its Vision, Mission and Objectives. The Citizens' Charter consisting of
Company profile, commitments, expectations from citizens, Integrated Management Policy,
services offered, values and standards of services, access to information and grievance
redressal is available on the Company's website.
18. PEOPLE: OUR CORE STRENGTH
Your company believes that its competent and motivated workforce is its
core strength in delivering excellent financial and operational results, year after year.
HR process and systems are designed to acquire, nurture and empower power professionals in
line with organizational business objectives, core values of the company in an equitable,
collaborative, healthy, safe environment. Emphasis is given for development of a culture
of continuous learning, sharing and development.
As on 31st March 2021, the employee strength of the Company stood at
8,766 as against 8,990 on 31st March 2020, which is exclusive of the employees on
contract. Women constituted 7.74% of its total workforce as on 31st March 2021.
18.1 HUMAN RESOURCE DEVELOPMENT
POWERGRID Academy of Leadership (PAL), established by the Company at
Manesar has been imparting a wide range of learning solutions not only for its employees
but also to external stakeholders.
During the year, in view of COVID-19 pandemic, 620 training and
development programs using virtual mode were organized by the Company through in-house
facilities as well as premium educational institutes and centres of learning in India and
abroad. The range of training & development imparted include induction programs to
Executive Trainees besides hands-on/managerial/ behavioral/leadership training programs to
employees and customized programs for external agencies.
Leveraging its people capabilities and infrastructure available at PAL
for capacity development, in FY 2020-21, training programs have also been conducted by the
Company for employees of other power utilities on consultancy basis.
During FY 20-21, various in-house developed video/text-based e-learning
and refresher courses on Company information have been uploaded in POWERGRID E-Learning
Portal, PRAGYAN. First batch of 500 employees have completed the Harvard Manage Mentor
Program and subsequently second batch of 500 employees has been enrolled for this program.
POWERGRID has been accredited as Registered Education Provider of PMI,
USA and 3 batches of Certified Project Management Program have been conducted online.
Basic/Advanced level online training programs on Accounting &
Finance were organized by Corporate-HRD Consultancy Group under CBIS-NERPSIP Scheme for
NER state utilities like AEGCL(Assam), MeECL, MePDCL, MePTCL (Meghalaya), TSECL (Tripura)
etc.
More than 1000 apprentices have been engaged in different trades as per
the Apprentice Act, 1961. MoU has been signed among National Skill Development Corporation
(NSDC), National Skill Development Fund (NSDF), Power Sector Skill Council (PSSC) and
POWERGRID for Skill development training to 6000 unemployed youth in the power Sector
across 25 locations.
50 Employees have been sponsored for a customized 15 months PGDM
program in Data Analytics, Machine Learning & Artificial Intelligence by IIIT
Bangalore.
18.2. EMPLOYEE WELFARE
The Company is continuously updating its welfare policies in line with
the industry trend and to meet the changing needs for its employees. Your Company, during
the year, introduced work from home guidelines for employees and has taken various
measures for smooth functioning during COVID-19 situation.
Many webinar/ talks were held during the period by experts for
employees on medical care, wellbeing and lifestyle management during the pandemic.
Isolation facilities were setup at various locations for affected employees and
dependents. Various facilities viz. home collection of samples for COVID-19 testing,
medical consultation through telemedicine and provision of non-refundable advance to
members of the PF-Trust were introduced.
A dedicated COVID Communication webpage / web repository created on
Intranet for easy access and dissemination of information related to COVID-19 issued by
POWERGRID and Govt. authorities including various circulars, guidelines, SOP's, Do's and
Dont's etc.
Your Company has introduced comprehensive reward and recognition scheme
- PRATIPHAL (POWERGRID Rewarding & Appreciating Teams & Individuals by
Promoting Higher Accomplishments and Learning) to promote and reinforce achievement
oriented high-performance work culture.
18.3. GRIEVANCE REDRESSAL
In POWERGRID, grievance redressal is always taken up with priority.
Your Company promptly redresses the grievances of its employees within the broad
parameters of guidelines enumerated by Govt. of India and policy framework. An
‘Employee Grievance Portal' is in place for the same. The Company has designated
nodal officers at corporate & regional offices for systematic & prompt redressal
of the grievances within stipulated time frames.
18.4. ENSURING SOCIAL JUSTICE
POWERGRID has constituted a separate reservation cell to look after and
safeguard the legal provisions for SC/ST/ OBC & PwD categories of employees.
The reservation cell assists the Liaison Officer who looks after the
welfare & safeguard of SC/ ST/ OBC & PwD employees. Liaison Officer also ensures
that there is no discrimination on the basis of caste, religion & disabilities amongst
the employees. To ensure effective discharge of duties across all establishments of
POWERGRID, separate liaison officer for each region has been nominated. The Company
implements all directives and guidelines with regard to reservation policy issued by Govt.
of India. Annual inspection is also conducted to ensure implementation of directives
issued by Govt. of India. Periodic meeting is also held with representatives of the
association of SC/ ST & OBC to resolve issues, if any.
The Company has taken several administration-related issues during last
year to support women employees such as ‘Skip-the-queue in cafeteria' and earmarked
parking slots for expecting mothers at Corporate Centre etc. In the unprecedented times of
Pandemic, all out efforts have been made to ensure work life balance for women employees.
"Flexi timings" and "work from home" options have
been given for pregnant women employees and mothers with young children during COVID-19
period.
19. PREVENTION OF SEXUAL HARASSMENT AT WORKPLACE
As per the sexual harassment of Women at workplace (Prevention,
Prohibition and Redressal) Act, 2013 and rules made here under, the Company has Internal
Complaint Committees (ICC), in place, to redress complaints received regarding sexual
harassment. POWERGRID has been conducting training/workshop programs for both male and
female employees sensitizing them on issues and the law/ Act relating to sexual
harassment. Workshops on women empowerment, development and gender sensitization are also
organized. There was one complaint of sexual harassment filed during FY 2020-21 and
complaint has been disposed off in stipulated time as per the Guidelines.
20. IMPLEMENTATION OF OFFICIAL LANGUAGE (RAJBHASHA)
To promote Rajbhasha "Hindi", POWERGRID has made all round
efforts to integrate and promote use of Hindi in its works at all levels. Various
Workshops, Trainings and motivational programmes were organized at every unit of POWERGRID
by video conferencing in the FY20-21.
To publicize Hindi, various competitions throughout the year with
special emphasis during Hindi Pakhwada, Vigilance Awareness Week, Swachchhta Pakhwada etc
along with departmental meetings as well as Official Language Implementation Committee
(OLIC) meetings are also being conducted. Attractive incentive schemes for employees
working in Hindi have been implemented as per the government guidelines. Also, various
award and reward schemes have been introduced to encourage employees to actively
participate in promotion of Hindi, by giving articles/write-ups for in-house magazines,
reading library books etc.
Various awards were conferred to your Company's offices by Town
Official Language Implementation Committee (TOLIC) and Rajbhasha Vibhag, Ministry of Home
Affairs, Govt. of India regarding best Implementation of Official Language. Besides,
POWERGRID's efforts were also applauded during various inspections and discussions done by
Hon'ble Committee of Parliament on Official Language on different occasions.
21. STAKEHOLDER ENGAGEMENT
Leveraging upon its social media presence, POWERGRID has been at the
forefront to engage with its virtual audiences, providing real time access to information
through social media viz. Facebook, Twitter, Youtube and Linkedin. A dedicated
Communication Lounge on the website also provides a one-stop solution to all communication
requirements.
For internal stakeholders, various communication vehicles viz.
e-magazines, ‘Communique' and ‘CUE'; display magazine ‘LOUNGE', short films
videos, creatives, and digital quarterly magazines are being utilised to regularly apprise
about developments, achievements, events & showcases viewpoints of management and
employees.
Positive stories of hope, recovery and brand citizenship behavior are
being disseminated amongst the POWERGRID family, and such concerted efforts have led to
recognition from industry, as Team Corporate Communications has been ranked 18th in the
list of India's Top 30 Corporate Communication Teams across private and public sector by a
reputed independent magazine.
22. MANAGEMENT DISCUSSION AND ANALYSIS
Management Discussion and Analysis, forming part of the Directors'
Report, is placed at Annexure-I of this Report.
23. BUSINESS RESPONSIBILITY REPORT
The Business Responsibility Report, as stipulated under Regulation 34
(2) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, is
given in Annexure-II and forms part of this Report.
24. AUDITORS
24.1. STATUTORY AUDITORS OF THE COMPANY
The Statutory Auditors of the Company are appointed by the Comptroller
& Auditors General of India. M/s. T R Chadha & Co. LLP, M/s. Umamaheswara Rao
& Co., M/s. B M Chatrath & Co. LLP and M/s. P S D & Associates, were appointed
as Joint Statutory Auditors for FY 2020-21.
The Statutory Auditors have given an unqualified report. The report is
self-explanatory and does not require any further comments by the Board.
24.2. COMPTROLLER AND AUDITOR GENERAL'S COMMENTS
The Company has received ‘Nil' comments on the Financial
Statements (Standalone and Consolidated) for the Year ended 31st March 2021 from the
Comptroller and Auditor General of India under Section 143(6) of the Companies Act, 2013.
The comments of C&AG is placed at Annexure-IV.
24.3. SECRETARIAL AUDIT
Kumar Naresh Sinha & Associates, Practising Company Secretary has
conducted Secretarial Audit of the Company for the financial year ended March 31, 2021.
The Secretarial Audit Report is placed at Annexure-V.
The Secretarial Auditor has observed that provisions of Regulation
17(1) of Securities and Exchange Board of India (Listing Obligations and Disclosure
Requirements) Regulations, 2015 and Para 3.1.4 of DPE Guidelines on Corporate Governance
with regard to Composition of the Board of Directors have not been complied with during
the financial year.
In regard to above, it was explained that POWERGRID, being a Govt.
Company, the power to appoint Independent Directors vests with the Govt. of India and the
Company has taken up with the Govt. of India for appointment of requisite number of
Independent Directors.
24.4. COST AUDITORS OF THE COMPANY
The Company appointed M/s Dhananjay V. Joshi & Associates, Cost
Accountants and M/s Bandyopadhyaya Bhaumik & Co., Cost Accountants as Cost Auditors
for the FY 2020-21 under Section 148 of the Companies Act, 2013.
25. BOARD & COMMITTEES
25.1. COMPANY'S BOARD
During FY 2020-21, Shri M. Taj Mukarrum assumed the charge of the post
of Director (Finance) w.e.f. 04.07.2020, in terms of the Ministry of Power order dated
03.07.2020. Mrs. Seema Gupta, Director (Operations) demitted the additional charge of the
post of Director (Finance) on 04.07.2020.
Shri Abhay Choudhary assumed charge of post of Director (Projects)
w.e.f. 1st Novemebr,2020. Shri Rajeev Kumar Chauhan demitted the office of Director
(Projects) on 31st October,2020 on attaining the age of superannuation.
Shri Mritunjay Kumar Narayan, Jt. Secretary, Ministry of Power, Govt.
of India and Shri Dilip Nigam, Scientist ‘G', Ministry of New and Renewable Energy,
Government of India have been appointed on the Board of Company as Part-time Government
Nominees Directors w.e.f. 5th November,2020 and 5th January,2021 respectively. Shri Tanmay
Kumar, Jt. Secretary, Ministry of Power was on the Board of POWERGRID from 18th March,2020
to 5th November,2020.
Shri Manoj K. Mittal, Shri Sunil Kumar Sharma and Smt. A.R.
Mahalakshmi, Independent Directors, have completed their respective tenure of 03 years
respectively on 11th September,2020; 22nd July,2021 and 25th July,2021.
The Board placed on record appreciation and gratitude to Shri Rajeev
Kumar Chauhan, Sh.Tanmay Kumar, Shri Manoj K. Mittal, Shri Sunil Kumar Sharma, Smt. A.R.
Mahalakshmi for their contribution and support to the Company.
In accordance with the provisions of the Companies Act and the Articles
of Association of the Company, the resolutions w.r.t. reappointment of Shri Vinod Kumar
Singh (DIN: 08679313) and Shri M. Taj Mukarrum (DIN: 08097837), as Directors liable to
retire by rotation; and appointment of Shri Abhay Choudhary as Director (Projects) have
been included in the Notice of Annual General Meeting.
25.2. NUMBER OF MEETINGS OF THE BOARD
Board of Directors met 10 times during FY 2020-21. Details
regarding dates and attendance at the Board meetings are provided in the Report on
Corporate Governance, which forms part of this report.
25.3. COMMITTEES OF THE BOARD
The Company has Audit Committee, CSR Committee, Nomination and
Remuneration Committee, Stakeholders' Relationship Committee, and other Committees for
operational convenience. The composition and scope of the aforesaid Committees are
provided in the Report on Corporate Governance.
Report on the Corporate Governance is enclosed at Annexure-VI,
and the certificate thereon, issued by Practicing Company Secretary pursuant to Schedule V
Para E of SEBI LODR, 2015 is attached at Annexure-VII to this Report.
25.4. DECLARATION BY INDEPENDENT DIRECTORS
During the financial year, all the Independent Directors have met the
requirements specified under Section 149 (6) of the Companies Act, 2013 for holding the
position of ‘Independent Director' and necessary declaration from each Independent
Director under Section 149 (7) was received.
Pursuant to Regulation 34(3) and Schedule V Para C Clause (10)(i) of
SEBI LODR, 2015 Naresh Kumar Sinha & Associates, Company Secretaries have issued
Certificate of Qualification of Directors, who were on the Board of Directors during FY
2020-21.
25.5. PERFORMANCE EVALUATION OF DIRECTORS
The Ministry of Corporate Affairs (MCA) vide Notification dated 5th
June,2015 has exempted Government Companies from the provisions of Section 178 (2) of the
Companies Act, 2013 (the Act), which provides for manner of evaluation of performance of
Board, its Committees and Directors by Nomination and Remuneration Committee. The
requirement of mentioning a statement on the manner of formal evaluation of performance of
directors in Boards' Report as per section 134(3) (p) of the Act has also been done away
with for Government Companies, where the directors are evaluated by the Ministry or
Department of the Central Government which is administratively in charge of the company,
as per its own evaluation methodology. Further, MCA vide its notification dated 5th
July,2017 has made an amendment in the Schedule IV of the Act, whereby it has exempted
Government Companies from complying with the requirement of performance evaluation by the
Independent Directors of non-independent directors and Chairman and performance evaluation
of the Independent Directors by the Board, if the concerned departments or ministries have
specified these requirements.
The Department of Public Enterprises (DPE) has laid down a mechanism
for performance appraisal of all Functional Directors. DPE has also initiated evaluation
of Independent Directors.
The Company enters into Memorandum of Understanding (MoU) with Ministry
of Power (MoP) every year wherein Company is evaluated on various financial and
non-financial parameters. The performance of the Company & Board of Directors is
evaluated by the Department of Public Enterprises in terms of MoU entered into with MoP.
In terms of Regulation 25 of SEBI LODR, 2015, the performance of the
Board as a whole and non-independent directors including Chairman & Managing Director
were evaluated by the Independent Directors in a separate Meeting held by them on 3rd
September, 2020.
25.6. POLICY ON DIRECTORS' APPOINTMENT AND REMUNERATION
The Company has framed a policy on the remuneration of the Directors,
KMPs and employees as required under the provisions of Section 178 of the Act. The said
policy is available on our website at https://www.powergridindia.com/
sites/default/files/Investor Relation/Reports Filings/Code of Conduct Policies/04
Remuneration%20Policv.pdf
26. COMPLIANCES
26.1. CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION AND FOREIGN
EXCHANGE EARNINGS AND OUTGO
Pursuant to Section 134(3) (m) of Companies Act, 2013 read with Rule 8
of The Companies (Accounts) Rules,2014 information relating to ‘Conversation of
energy, technology absorption and foreign exchange earnings and outgo', is given in Annexure-III
to this Report.
26.2. RISK MANAGEMENT POLICY
Information on Risk Management Framework is covered in the Management
Discussion and Analysis placed at Annexure-I of this Report.
26.3. INTERNAL FINANCIAL CONTROLS AND ADEQUACY
The Board has adopted policies and procedures for ensuring the orderly
and efficient conduct of its businesses, including adherence to the Company's policies,
the safeguarding of its assets, the prevention and detection of frauds, error reporting
mechanism, the accuracy and completeness of the accounting records and the timely
preparation of reliable financial disclosures.
26.4. ANNUAL RETURN OF THE COMPANY
In accordance with Section 92(3) read with Section 134 (3) (a) of the
Companies Act, 2013, Annual Return(s) of the Company are available on the web-site of the
Company and can be accessed at https://www.powergrid.in/sites/ default/files/Draft-MGT-7
20-21-Final%20Version.pdf
26.5. PARTICULARS OF LOANS, GUARANTEES OR INVESTMENTS
Loans, Guarantees or investments under Section 186 of the Companies
Act, 2013 form part of the notes to financial statements attached to this Report.
26.6. PARTICULARS OF CONTRACTS OR ARRANGEMENTS WITH RELATED PARTIES
Particulars of contracts or arrangements with related parties referred
to in Section 188 (1) of the Companies Act, 2013, in the prescribed Form AOC-2, are given
as Annexure VIII of this Report. Further, attention of the members is drawn on Note
No. 56 of the Financial Statement which sets out related party disclosure.
26.7. SUBSIDIARIES AND JOINT VENTURES
As on 31st March 2021 the Company has 24 subsidiaries and 10 Joint
Ventures Companies.
A statement containing salient features of the financial statements of
our Subsidiaries and Joint Ventures are covered in the Management discussion and Analysis
and also annexed in the prescribed format AOC-1 as Annexure IX of this Report.
26.8. DIVIDEND DISTRIBUTION POLICY
As per regulation 43A of the SEBI (Listing Obligation and Disclosure
Requirements) Regulations, 2015 (the Listing Regulations), the top 500 listed companies
shall formulate a dividend distribution policy. Accordingly, the policy was adopted to set
out the parameters and circumstance that will be taken into account by the Board in
determining the distribution of dividend to its shareholders and/or retained profits
earned by the Company. The policy is also available on the Company's website:
https://www.powergrid.in/sites/default/files/Dividend%20Distribution%20Policv.pdf
26.9. SIGNIFICANT MATERIAL ORDERS
There are no significant and material orders passed by the Regulators
or Courts or tribunal impacting the going concern status and Company's operations in
future.
27. DIRECTORS' RESPONSIBILITY STATEMENT
As required u/s 134(3) (c) & 134(5) of the Companies Act, 2013, The
Directors confirm that:
a) in the preparation of the annual accounts, the applicable accounting
standards had been followed along with proper explanation relating to material departures;
b) the Directors had selected such accounting policies and applied them
consistently and made judgments and estimates that are reasonable and prudent so as to
give a true and fair view of the state of affairs of the Company at the end of the
financial year and of the profit of the Company for that period;
c) the Directors had taken proper and sufficient care for the
maintenance of adequate accounting records in accordance with the provisions of this Act
for safeguarding the assets of the Company and for preventing and detecting fraud and
other irregularities;
d) the Directors had prepared the annual accounts on a going concern
basis;
e) the Directors had laid down internal financial controls to be
followed by the Company and that such internal financial controls are adequate and were
operating effectively;
f) the Directors had devised proper systems to ensure compliance with
the provisions of all applicable laws and that such systems were adequate and operating
effectively.
28. AWARDS & ACCOLADES
• During the year, your Company ranked 2nd among Indian PSUs
in Forbes ‘The World's Best Employer 2020 List'. Globally positioned as the 305th in
the World's Best Employer 2020 List.
• Received SKOCH-Silver award for transformational performance
in response to the COVID-19 pandemic & Skill development & employment generation
program for sustainable growth of 200 underprivileged Women in Damoh district of MP.
• Recognized as one of the Best Workplaces in Industrial
services for 2020 by Great Place to Work Institute, India.
• Received the prestigious GREENTECH award in COVID response
category for CSR.
• In recognition to our significant achievements in Learning
& Development, the Company has won SHRM HR Excellence Award for its Excellence in
Learning & Development.
29. ACKNOWLEDGEMENTS
The Board of Directors would like to express their deep sense of
appreciation for the guidance and co-operation received from Govt. of India, particularly
Ministry of Power, Ministry of Finance, Ministry of Home Affairs, Ministry of External
Affairs, Ministry of Statistics and Programme Implementation, Ministry of Environment
& Forests, Ministry of Corporate Affairs, Central Electricity Regulatory Commission,
Appellate Tribunal for Electricity, Central Electricity Authority, NITI Aayog, Department
of Public Enterprises, Regional Power Committees, Office of the Comptroller and Auditor
General of India, and other concerned Govt. departments/agencies at the Central and State
level without whose active support, the achievements of the Corporation during the year
under review would not have been possible.
Special thanks to our valued customers, State Governments and State
power utilities and other clients, who have awarded various consulting works and reposed
faith in Company's capability to handle them. The Board also appreciates the contribution
of Contractors, Vendors and Consultants for successful implementation of various projects
by the Company.
The Directors also acknowledge the valuable suggestions and guidance
received from the statutory auditors during the audit of accounts of the Company for the
year under review. The Board also conveys its sincere thanks to national and international
financial institutions, multilateral financial institutions, domestic & international
credit rating agencies for their assistance, continued trust and confidence reposed in the
Company.
On behalf of Board of Directors, I would like to place on record our
deep appreciation of the dedicated efforts and valuable services rendered by the employees
contributing to the performance of the Company during the year 2020-21. The commitment
displayed by the employees at all levels, particularly during the ongoing pandemic
situation, is exemplary and praise worthy. I would also like to thank the Executive team
for their strong leadership, the employee unions for their support and all our employees
for their commitment, enthusiasm and dedication.
For and on behalf of the Board of Directors
|
(K. Sreekant) |
|
Chairman & Managing Director |
| Date: 26th August, 2021 |
|
| Place: New Delhi |
|