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 33rd
Annual Report on the performance of the Company, together with the Audited Financial
Statements for the financial year ended 31st March 2022.
Key Performance highlights of the Company during FY 2021-22 are briefly mentioned here:
Rated "Excellent" with a score of 98.41 in Memorandum of Understanding
(MoU) signed with Government of India for FY 2020-21.
On a standalone basis, the Company's Total Income at Rs.42,335.87 crore,
increased by 4.46 % and Profit after Tax (PAT) at Rs.17,093.76 crore, increased by 43.21%,
as compared to previous year.
Achieved system availability of 99.83%. The trippings per line decreased to
0.33, lowest in last five years.
Addition of 5,450 circuit km (ckm.) of Extra High Voltage (EHV) transmission
lines, 43,564 Mega Volt Ampere (MVA) transformation capacity and 7 new Substations.
Addition of 7,200 MW Inter-Regional power transfer capacity to the national
grid.
Assets of Rs.20,695 crore were capitalized.
Important transmission assets commissioned:
- ?800 kV Raigarh - Pugalur HVDC link along with Bipole-II (Pole-III & IV 1,500 MW
each)
- 765 kV D/C Vindhyachal Pooling Station - Varanasi Transmission Line
- 400 kV D/C Alipurduar - Jigmeling cross border interconnection between India and
Bhutan (India portion)
- 400 kV D/C Bhadla-II PS - Bhadla (PG) line
- LILO of 765 kV D/C Ajmer - Bikaner line at Bhadla-II Pooling Station
- LILO of 765 kV D/C Fatehgarh (TBCB) - Bhadla (PG) line at Fatehgarh-II Pooling
Station
- 400 kV D/C Pugalur HVDC Station - Thiruvalam line
- 400 kV D/C Pugalur HVDC Station -Edayarpalayam (TANTRANSCO) line
- 400 kV D/C Edayarpalayam (TANTRANSCO) - Udumalpet line
- 400 kV D/C Wardha - Aurangabad (Upgradable to 1200 kV S/C) Line
- 765 kV D/C Medinipur - Jeerat (New) line
- 400 kV D/C Jeerat (New) - Jeerat (WBSETCL) line
- 400 kV D/C Darbhanga - Sitamarhi (New) line
- 400 kV D/C Sitamarhi (New) - Motihari
- LILO of both ckt of 400 kV D/C Kishanganj - Patna (Quad) line at Saharsa
- 765 kV D/C Ajmer (PG) - Phagi line
- 765 kV D/C Fatehgarh-II -Bhadla -II line
- 765 kV D/C Khetri-Jhatikara line
- 400 kV D/C Khetri-Sikar(PG) line
- 400 kV D/C Jawaharpur - Firozabad line
For ensuring effective communication of the existing as well as new substations
with
Regional Load Despatch Centres (RLDCs)/State Load Despatch Centers (SLDCs), 8,174 km of
Optical Ground Wire (OPGW) network was added.
Achieved collection efficiency of 97.98% of billing in FY 2021-22.
Emerged successful in 2 TBCB projects- Inter State Transmission Project
associated with transmission strengthening scheme for evacuation of power from solar
energy zones in Rajasthan (8.1 GW) under Phase-II and
- Intra State Transmission Project in the State of Uttar Pradesh for construction of
400/ 220/ 132kV Substation at Mohanlalganj (Lucknow), four 400kV D/C Transmission lines
and two 765kV S/C Transmission lines.
Launched the Virtual Smart Grid Knowledge Centre (SGKC), a Digital-twin that
replicates the facilities available at the SGKC in Manesar and can be accessed by anyone,
at any time, from any location to accelerate knowledge dissemination in the smart grid
domain.
Created a centralized circuit breaker health indexing system that allows for the
transition to predictive circuit breaker maintenance.
1. Financial Performance
Financial Performance during year under review (FY 2021-22) as compared to the previous
year (FY 2020-21) on standalone basis is summarized below:
|
(All Figures except per share data are in units as
indicated) |
|
FY 2021-22 |
FY 2020-21 |
Y-o-Y |
Parameters |
Rs.(Crore) |
US $ (Million) |
Rs.(Crore) |
US $ (Million) |
Growth (%) |
REVENUE |
|
|
|
|
|
Transmission Charges |
38,594.41 |
5,056.26 |
36,456.92 |
4,776.22 |
5.86% |
Consultancy-Sale of Services |
753.34 |
98.70 |
501.28 |
65.67 |
50.28% |
Telecom |
580.34 |
76.03 |
707.45 |
92.68 |
(17.97)% |
Other Income |
2,407.78 |
315.44 |
2,861.46 |
374.88 |
(15.85)% |
TOTAL INCOME |
42,335.87 |
5,546.43 |
40,527.11 |
5,309.45 |
4.46% |
Profit After Tax (PAT) |
17,093.76 |
2,239.45 |
11,935.78 |
1,563.71 |
43.21% |
Earnings per Share (EPS) # |
Rs. 24.51 |
US $ 0.32 |
Rs. 17.11 |
US $ 0.22 |
43.25% |
Book Value per Share # |
Rs. 109.17 |
US $ 1.43 |
Rs. 99.75 |
US $ 1.31 |
9.44% |
Gross Fixed Assets |
2,49,953.70 |
32,746.46 |
2,34,284.32 |
30,693.61 |
6.69% |
Long term borrowing* |
1,29,365.27 |
16,948.16 |
1,41,251.48 |
18,505.37 |
(8.41)% |
Net Worth |
76,151.57 |
9,976.62 |
69,578.84 |
9,115.53 |
9.45% |
Debt Equity Ratio |
63:37 |
67:33 |
|
Return on Net Worth (%) |
22.45% |
17.15% |
|
# EPS and Book value have been adjusted for Bonus Issue
* Including current maturities of Long-Term Borrowings Convenience Conversion at US $
1= Rs.76.33 as on 31.03.2022
1.1. Dividend Payout
The Company recommended/declared dividend as follows: -
|
FY 2021-22 |
FY 2020-21 |
Dividend (per share) |
In Rs. |
In % |
In Rs. |
In % |
First Interim Dividend |
7.00* |
70.00 |
3.75# |
37.50 |
Second Interim Dividend |
5.50 |
55.00 |
3.00# |
30.00 |
Final Dividend |
2.25A |
22.50 |
3.00 |
30.00 |
Total Dividend |
14.75 |
147.50 |
9.75 |
97.50 |
* Including a Special Dividend of Rs.3.00 per share
# Adjusted for Bonus
A
Recommended for approval of Shareholders
The total dividend payout for the year amounts to Rs.10,289 crore (including interim
dividends of Rs.8,719 crore). The final dividend shall be paid after approval at the
Annual General Meeting. The total payout ratio for the year was 60 % as compared to 57 %
for previous year.
1.2. Transfer to Reserves
For FY 2021-22, appropriation of profit has been made as follows:
a) General Reserve: Rs.7,000.00 crore
b) Self-Insurance Reserve: Rs.291.14 crore
1.3. Government of India (GOI) Shareholding
The Government of India's shareholding in the Company remained unchanged at 51.34%.
2. Significant Developments
2.1. Completion of Inter-Regional projects
Your Company added 7,200 MW of Inter-Regional power transfer capacity to the
national grid through following projects:
a) Pole-III & IV of the Raigarh-Pugalur-Trichur HVDC Scheme:
During the year, ?800 kV Raigarh - Pugalur FIVDC link along with Bipole-ll (Pole-Ill
& IV 1,500 MW each) and ? 320 kV, 2000 MW, Pugalur - Trichur Voltage Source Converter
(VSC) based FIVDC System were commissioned (part of Raigarh- Pugalur- Trichur FIVDC
Scheme). This has enhanced the inter-regional power transfer capacity of national grid by
3,000 MW.
Through this project, the state-of-the- art VSC Technology has been brought to India
for the first time by POWERGRID.
The VSC technology significantly reduces the land requirement compared to the
conventional FIVDC systems and is \ oarticularlv suitable for areas, where land is
scarce. It also facilitates development of smart grid and improves system resilience
under various operating conditions. A unique feature of this project is the combination of
overhead line and underground cable to address the restricted availability of transmission
corridor in Kerala.
Major HVDC equipment like interface transformers and IGBT-based power convertors, AC
equipment such as Gas Insulated Sub-station, switchgear, controls, and relay panels have
been supplied by factories in India, aligned to the Government of India's Make in India
program. A significant part of the design, engineering, testing, and commissioning for
this VSC based Pugalur - Trichur project has been done in India, supporting the Prime
Minister's vision of "Aatmanirbhar Bharat".
b) 765kV D/C Vindhyachal Pooling Station - Varanasi Transmission Line
During the year, POWERGRID's wholly owned subsidiary POWERGRID Varanasi Transmission
System Limited (PVTSL) commissioned Vindhyachal Pooling Station - Varanasi 765kV D/C
Transmission Line. This transmission line corridor provides a strong connectivity between
Northern Region and Western Region and has enhanced the inter-regional power transfer
capacity of national grid by 4,200 MW.
2.2. Tariff Based Competitive Bidding (TBCB)
During the year under review, your Company emerged successful in one Inter-State
Transmission project associated with solar energy zones in Rajasthan and one Intra-State
Transmission Project in Uttar Pradesh. Three project SPVs (Sikar-II Aligarh Transmission
Limited, Fathegarh Bhadla Transco Limited and Sikar New Transmission Limited) were
acquired by your Company in FY 2021-22.
As on 31st March, 2022, nine TBCB subsidiaries were fully operational and six out of
seven elements of one subsidiary were operational. Cumulatively, the Company, at the end
of FY 2021-22, owned 20 TBCB subsidiaries, the details of which are provided in the
Management Discussion & Analysis Report (MD&A).
2.3. Monetization of Transmission Assets through POWERGRID Investment Infrastructure
Trust (PGInvIT):
The Union Budget 2019-20 emphasized investment led growth and indicated that new and
innovative financial instruments including Infrastructure Investment Trusts (lnvITs), have
been launched as part of the brown field asset monetization strategy for augmenting
infrastructure investment.
Your Company in accordance with the guidelines of Government of India, had monetized
assets, which are mainly High Voltage Transmission lines and substations, through
Infrastructure Investment Trust (InvIT) model. Your Company is the first PSU in the
country to undertake asset recycling by monetizing its assets through the InvIT model and
using the proceeds to fund the new and under-construction capital projects. Total amount
raised through asset monetization during the year was Rs.8,370 crore.
2.4. Incorporation of POWERGRID Energy Services Limited
Your Company has setup a wholly owned subsidiary namely 'POWERGRID Energy Services
Limited' with an objective to invest in and act as Project Management Consultant in new
and emerging business areas viz. Energy Management, Transmission & Distribution
business, Electric Vehicle charging infrastructure, Energy Storage, Smart Grid etc.
2.5. Incorporation of POWERGRID Teleservices Limited
The latest technological advancements in the telecom sector, increased thrust of the
government on digitalization of the economy, enhanced data localization accelerated by
prevailing geo-political environment are likely to provide growth opportunities. To
harness the emerging opportunities in the sector, POWERGRID has formed a wholly owned
subsidiary company POWERGRID Teleservices Limited which would provide greater focus to
this segment. POWERGRID got International Long Distance (ILD) license to directly serve
customers in the neighboring countries with reliable broadband connectivity.
POWERGRID's Board accorded approval for expansion into Data Center Business. A Pilot
Data Center at an estimated cost of Rs.322 crore is approved to be established at Manesar.
The Company is also planning to establish hyper scale data centers in the country.
POWERGRID Telecom is also planning to setup the edge data centers to serve the businesses
in Tier-1 cities of the country.
2.6. Other emerging opportunities
Your Company is exploring opportunities for installation of smart meters for state
utilities under DBFOOT model and initiated procurement process for End-to-End Smart
Metering Solution for one crore smart meters. Your Company also envisages Battery Energy
Storage System (BESS) to be a significant element of future grid. Accordingly, your
Company has appointed a consultant to study the business scope for it in the BESS segment
and is looking to setup BESS system.
Your Company is also evaluating setting up solar generation capacity on the vacant land
available with it and few locations with a total potential of 200 MWp have been
identified. Of these, preparations are being made to build your Company's first 105MWp
solar PV plant at Nagda, MP. The power generated would be either utilized for in-house
requirements or sold through exchange/ PPAs.
3. Operational Performance
3.1. Asset Management
As on 31st March 2022, your Company's total transmission assets I including those owned
through its wholly owned subsidiaries consisted of 1,352 transmission lines aggregating to
1,72,437 ckm., 265 substations with an aggregate transformation capacity of 4,74,457 MVA.
Your Company is increasingly migrating towards digitization of asset management keeping
in view the growing asset base. Centralized relay database management system has been
introduced which will improve the efficiency of relay settings management and save
manhours in operation and maintenance of assets.
Internal benchmarking on key performance indicators is used by
your Company to analyze operational performance, identify areas for improvement and
achieve optimal operational performance.
In-house repair of GIS substation equipment by your Company's maintenance team at six
substations has avoided prolonged system failures and saved significant costs.
Refurbishment of defective GIS modules at a site was also carried out by your Company's
team of maintenance specialists and provided significant cost savings. Five older air
insulated substations (AIS) located in the North-Eastern region of your Company have been
replaced with Gas Insulated Substations (GIS), improving system reliability.
Refurbishment of ?2x250MW HVDC Vindhyachal back-to-back and ?500kV, 1,500MW HVDC
Rihand-Dadri Bipole were carried out for life extension. These projects have served the
Indian power system for more than 25 years and refurbishing them, the first of its kind in
India for HVDC systems, will extend their life by approximately 10 years benefiting the
end
consumers with reliable and quality power supply. To evacuate power from solar energy
zones in Rajasthan, testing of reverse power flow in Ballia-Bhiwadi HVDC link (Bhiwadi to
Ballia) was carried out successfully.
Forma ny years, the Compa ny has participated in the International Transmission System
Operation and Maintenance Study (ITOMS), a global Operations & Maintenance (O&M)
benchmarking platform that includes 32 major power transmission utilities globally, where
it has been consistently ranked amongst the most successful transmission companies.
3.2. National Transmission Asset Management Centre (NTAMC), Manesar and 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 centers are manned round-the-clock by experts for
effective monitoring and management of transmission assets.
During FY 2021-22, twenty-two additional Extra High Voltage (EHV) Substations were
integrated with NTAMC for remote operation. By the end of FY 2021-22, a total of 264
Substations are being operated remotely from these asset management centers.
Remote management of Substations has proved to be immensely beneficial during FY
2021-22 to ensure uninterrupted supply of power despite COVID-19 pandemic.
3.3. Cyber Security
Cybersecurity initiatives are led by the Chief Information Security Officer (CISO)
through the Information Security Department in the Company. Your Company's Corporate
Office, all regional headquarters and 213 substations are certified as per the Information
Security Management System ISO: 27001. Your Company conducts extensive training programs
for employees and participated in programs and simulations organized by Computer Emergency
Response Team (CERT-In) and National Critical Information Infrastructure Protection Center
(NCIIPC).
In addition, the Company works closely with designated statutory bodies: CERT-In and
the NCIIPC. Your Company follows the recommendations issued by these agencies from time to
time and shares them with other utilities in the transmission sector. The Ministry of
Power has assigned POWERGRID the responsibility of sectoral Computer Emergency Response
Team (CERT) for the Transmission Sector. The Company is planning to set up a Cyber
Security Operations Centre for threat analysis and monitoring in order to strengthen
resilience in its operations.
3.4. Safety
Your Company has ISO 45001:2018 certified, Occupational Health and Safety Management
System, which ensures a healthy work environment.
The Company is committed to maintaining a safe working environment and measures are
taken to ensure that all applicable safety factors are considered in accordance with
standards during the design, construction, operation and maintenance of the assets.
Your Company has a 3-tier setup i.e., Corporate, Region and Substation/Site levels to
implement safety policy, rules, and guidelines. Safety cells work to promote all safety
measures for accident prevention in activities involving transmission lines and
substations under construction and O&M. Regular monitoring and evaluation of safety
performance is carried out by all Regions. Designated Safety officers at the Corporate and
regional level ensure the implementation of safety aspects at site.
Safety audits/ inspections, trainings, safety briefings, mock-drills were carried out
for all contract workers and Company staff at various O&M and construction sites.
Safety audits of 265 substations and safety inspection at 290 construction sites were
carried out in FY 2021-22.
Safety trainings were organized on various safety aspects such as fire safety, stress
& health management and first aid, etc. at various sites maintaining the Covid-19
precautions. During the year, 949 safety training sessions were organized for Company
employees, and 4,865 safety training sessions were conducted for construction agency
workers/staff. In addition to this, 908 mock-drills were organized at sites for
preparedness to cope up with any untoward incident/ urgency/emergency.
Daily safety briefings/pep talks were held at all sites and safety
instructions/accident precautions/committee recommendations were discussed in languages
that workers understand to educate about the possible risks associated with work and how
to reduce them. Safety day/weekly/fortnightly celebrations attended by employees, their
family members, and contract workers help raise awareness about safety compliance at
workplace and at home.
All the dangerous incidences were reviewed by Standing Safety Management committee and
the POWERGRID Apex Safety Board in collaboration with all Heads of Regions and Board level
representatives of construction agencies. The recommendations of Accident Enquiry
committee was widely circulated to all sites for implementation.
4. Disaster Management
The Company has a "disaster and crisis management plan" to take immediate
action during the pre and post-disaster period and to quickly restore damaged power
infrastructure. It outlines the hierarchy of crisis/disaster management at different
levels to manage crises and disasters effectively and efficiently, and the
roles/responsibilities of different departments in disaster management.
The Company adequately prepared itself to meet any natural calamity, basis the inputs
received from the Indian Meteorological Department (IMD). There was no major damage to
your Company's transmission network during major cyclones, namely Tauktae, Yaas, Gulab and
Jawad. The Company also supported the transmission and distribution utilities of the
affected states by providing manpower and equipment to rapidly restore their damaged
transmission and distribution networks.
5. Project Implementation
During FY 2021-22, your Company added 5,450 circuit km (ckm.) of Extra High Voltage
(EHV) transmission lines, 43,564 Mega Volt Ampere (MVA) transformation capacity, 7 new
substations (including through its subsidiaries).
Further, about 8,174 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.
5.1. Major Transmission Assets Commissioned
a) Inter-Regional Lines
- ?800 kV Raigarh - Pugalur HVDC link along with Bipole-ll (Pole-Ill & IV 1,500 f
MW each)
- 765 kV D/C Vindhyachal Pooling Station - Varanasi Transmission Line associated with
"Transmission System ^ New WR-NR 765 kV Inter-Regional Corridor"
b) Cross-Border Interconnection
- 400 kV D/C Alipurduar - Jigmeling cross border interconnection between India and
Bhutan (India portion)
c) Transmission System Associated with \
Solar Energy Zones in Rajasthan
- 400 kV D/C Bhadla-II PS - Bhadla (PG) line
- LILO of 765 kV D/C Ajmer - Bikaner line at Bhadla-II Pooling Station
- LILO of 765 kV D/C Fatehgarh (TBCB) - Bhadla (PG) line at Fatehgarh-II Pooling
Station
5.2. Other Important Transmission Lines
- 400 kV D/C Pugalur HVDC Station - Thiruvalam line
- 400 kV D/C Pugalur HVDC Station -Edayarpalayam (TANTRANSCO) line
- 400 kV D/C Edayarpalayam (TANTRANSCO) - Udumalpet line
- 400 kV D/C Wardha - Aurangabad (Upgradable to 1200 kV S/C) Line
- 765 kV D/C Medinipur - Jeerat (New) line
- 400 kV D/C Jeerat (New) - Jeerat (WBSETCL) line
- 400 kV D/C Darbhanga - Sitamarhi (New) line
- 400 kV D/C Sitamarhi (New) - Motihari line
- LILO of both ckt of 400 kV D/C Kishanganj - Patna (Quad) line at Saharsa
- 765 kV D/C Ajmer (PG) - Phagi line
- 765 kV D/C Fatehgarh-II -Bhadla -II line
- 765 kV D/C Khetri- Jhatikara line
- 400 kV D/C Khetri - Sikar (PG) line
5.3. Intra-State Lines
- 400 kV D/C Jawaharpur - Firozabad line
As on 31st March 2022, the inter-regional power transfer capacity of the transmission
assets belonging to the Company and its subsidiaries was 97,290 MW out of 1,12,250 MW
inter-regional power transfer capacity of the national grid.
6. Capital Investment, Fund Mobilization & Investment Approval of New Projects
During FY 2021-22, your Company made a consolidated capital investment of Rs.9,426
crore on cash basis. To finance this investment, the Company mobilized Rs.8,106 crore from
asset monetization, Rs.610 crore through bonds & term loans, Rs.567 crore from
Internal accruals, Rs.133 crore through grants received from Power System Development Fund
& from Central Financial Assistance (Ministry of New and Renewable Energy) and Rs.10
crore through External Commercial Borrowings (ECB)/ Suppliers' Credit.
During FY 2021-22, investment approvals for transmission projects under regulated
tariff mechanism (RTM) worth ~ Rs.5,050 crore have been accorded and Company acquired
projects estimated at Rs.3,300 crore under the TBCB mechanism.
7. Commercial Performance
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 Government of India and provisions of the
Electricity Act, 2003. Presently, CERC (Sharing of Inter State Transmission Charges and
Losses) Regulations, 2020 are in vogue. As per the Sharing Regulations, the Central
Transmission Utility (CTU), had the responsibility of billing & collecting
transmission charges on behalf of all ISTS licensees in the country including your Company
and disbursing to them. Your Company ceased to be the CTU w.e.f. 01st April 2021 and
Central Transmission Utility of India Limited (CTUIL), a wholly owned subsidiary of your
Company has been notified as CTU by the Government of India. Your Company continues to be
a deemed Transmission Licensee under the Electricity Act, 2003.
Your Company through regular follow up with its customers (DICs) and timely regulatory
actions has achieved collection efficiency of 97.98% of billing in FY 2021-22.
8. Cross Border Interconnections
India, being centrally placed in South Asian region and sharing political boundaries
with SAARC and BIMSTEC countries, has been playing a major role in establishment of
cross-border interconnections with various neighbouring countries, namely Nepal, Bhutan,
Bangladesh, Sri Lanka, and Myanmar, for optimal utilization of regional energy resources
in South-Asian region.
The present cumulative power transfer capacity between India and neighbouring countries
through cross-border interconnections is about 4,230 MW. In FY 2021-22,
Alipurduar-Jigmeling line (India portion) 400kV D/C (Quad) line was commissioned.
Additional links for interconnection with Nepal through the Gorakhpur (India) - New Butwal
(Nepal) and Sitamarhi (India) - Dhalkebar (Nepal) 400kV D/C (Quad) transmission lines are
under implementation.
9. Other Businesses
9.1. Telecom Business a) 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. Your Company is providing nationwide services like 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 with its Pan India high-capacity optical
ground wire (OPGW) network.
During FY 2021-22, the Company's telecom network coverage increased to 74,109km from
71,673km at the end of the previous year, with annual telecom backbone availability of
99.99%. The Company's telecom network spans across India and is in over 1200 locations
covering all major cities and metros. During the year, your Company achieved revenue from
operations of Rs.580.34 crore from telecom segment.
Your Company's Board accorded the approval for expansion of POWERGRID Telecom into Data
Center Business and to establish the Pilot Data Center at Manesar. POWERGRID Telecom is
also planning to setup the edge data centers to serve businesses in Tier-1 cities of the
country.
Your Company has signed agreements with Damodar Valley Corporation, West Bengal State
Electricity Transmission Company Limited, Bihar State Power Transmission Company Ltd. and
Assam Electricity Grid Corporation Limited for leasing of their OPGW fibres, which
provides it with access to additional 12,000 km of OPGW network. Through this, the Company
will expand its telecom business in various new cities of West Bengal, Bihar, Assam &
Jharkhand.
Further, during the year, your Company incorporated a wholly owned subsidiary
'POWERGRID Teleservices Limited' on 25th November, 2021 to undertake Telecommunications
and Digital Technology Business. POWERGRID Teleservices Limited has obtained the Unified
License with service authorization of National Long Distance (NLD), Internet Service
Provider (ISP-A) & International Long Distance (ILD) from Department of
Telecommunications (DoT) on 11th May, 2022.
b) 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 Government of India for Digital India.
The Company has completed the work on 473 blocks out of 511 Blocks and successfully
handed over to M/s BBNL under Bharat Net Phase-I Project. Further, cumulatively 321 blocks
asset capitalization has been completed out of 511 blocks. The scope of work is spread
across 39 districts in 5 States viz., Andhra Pradesh, Telangana, Himachal Pradesh,
Jharkhand & Odisha.
During FY 2021-22, the Company has handed over 55 blocks to M/s BBNL under Bharat Net
Phase-I project and asset capitalization of 250 blocks has been completed during the year.
9.2. Consulting Services
Your Company, one among the largest power transmission I utilities in the world, has
developed expertise in its 1 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 several customers globally. During the year. your Company achieved revenue
from operations of Rs.753.34 crore from consultancy segment.
a) Domestic Market
On behalf of Government of India, your Company is implementing two important projects
as consultancy assignments for strengthening of the Intra-State Transmission and
Distribution Systems (33kV and above) namely 'NER Power System Improvement Project'
(NERPSIP) in Manipur, Meghalaya, Mizoram, Tripura, Nagaland & Assam and 'Comprehensive
Scheme' for strengthening of Transmission & Distribution in Arunachal Pradesh and
Sikkim. Your Company is also providing services to the Indian Railways for electrification
of un-electrified railways tracks in Central, East Central, South-Western &
South-East-Central Railway zones.
During the year, your Company bagged 27 new consultancy assignments and is currently
executing about 68 consultancy assignments in various fields including transmission &
sub transmission, design & engineering, EV charging etc.
Your Company is implementing Rural Electrification Infrastructure works under Prime
Minister's Development Package (PMDP) scheme in 6 districts in J&K UT and 2 districts
in Ladakh UT. Intra-state transmission work of 2 projects are under progress in J&K UT
under PMDP.
b) International Market
On the International front, as on 31st March, 2022 your Company has its footprint in 23
countries. During the FY 2021 -22, Company has received orders from two new countries viz.
Guinea and Moldova. The Company is providing consultancy to various clients in Nepal,
Uganda, Fiji, and Moldova.
The Company has signed Joint Development Agreement with Africa50 to take up investment
in Kenya under PPP mode through a Joint Venture with Africa50. Your Company has also
signed Share Holders' Agreement with Nepal Electricity Authority for Development of Indian
portion of 400 kV New Butwal (Nepal) - Gorakhpur (India) transmission line in 50:50 JV
with Nepal Electricity Authority.
10. Quality Management
Your Company has developed and maintained systems and procedures that are in accordance
with the Publicly Available Specification, PAS 99:2012, while also incorporating the
requirements of ISO 9001:2015 (Quality Management System), ISO 14001:2015 (Environmental
Management System), and ISO 45001:2018. (Occupational Health & Safety Management
System).
A third party audit of the Integrated Management Systems, was completed successfully.
The systems were also audited for compliance with the SA: 8000 Social Accountability
Standard, ISO:50001 Energy Management Systems, and ISO:27001 Information Security
Management Systems.
Despite COVID-19 pandemic, more than 15,000 Inspection calls were attended during FY
2021-22. All the inspections, sub vendor assessments and other quality related activities
were undertaken in a well-planned manner via hybrid mode of physical and virtual visits.
To encourage and develop MSME manufacturers for supply of innovative & quality
products, MSME vendor development programs were conducted during the year at various
locations across the country. Special focus was kept on Micro and Small Enterprises owned
by SC/ ST and Women entrepreneurs. Promoting Atmanirbhar Bharat/Make in India, 34 new
Micro/small vendors were approved during FY 2021-22 and existing vendors were encouraged
to upgrade their equipment to higher voltage level. This shall improve available sources
increasing vendor base, thus creating a more competitive environment.
11. Research and Development (R&D)
Your Company has been investing in R&D for new technologies and techniques, aimed
at improving efficiency of its transmission assets to ensure high system availability and
reliability.
A Centralized Circuit Breaker health indexing system was developed in-house, which has
enabled transition towards predictive maintenance of circuit breakers, a critical element
in system protection.
Your Company is developing a substation Inspection Robot in collaboration with IIT
Kanpur to facilitate automation of routine inspection of switchyard equipment as well as
data driven decision process using Artificial Intelligence/Machine Learning techniques,
thus improving operational efficiency.
Your Company is setting up a Centre of Excellence (CoE) in Cybersecurity in
Transmission and Grid operation at IISc Bangalore. This collaborative effort facilitates
continuous research, monitoring, development, and demonstration focused on cybersecurity
aspects in association with academia and industry towards cyber resilient transmission
system.
12. Adoption of Latest Technology and Digital Transformation
Your Company has been taking up several initiatives towards adoption of latest
technology and digital transformation. These initiatives gained pace during the pandemic
and ensured business continuity despite the COVID-19 pandemic.
Some of the new developments in this regard are as follows:
PALMS V2.0 - It is an in-house Asset Health Indexing Software introduced
in 2020 and for assessing real-time risk-based health indexing of POWERGRID transformers
and reactors. This was upgraded during the year incorporating more advanced diagnostic
methods based on various international standards and your Company's experience in
interpreting test results.
PGDARPAN - Your Company has developed in-house application software
PGDARPAN (POWERGRID Digital Application for Routine Patrolling & Assessment of
Network) for transmission line patrolling. The same has been used in your Company since
August 2021. The PG DARPAN portal features a rich, highly customizable dashboard which
enables ground patrolling of transmission lines and generation of reports, this helps the
asset managers to monitor and take corrective action.
Repeater- less solutions-To adopt green technologies in order to reduce
carbon emissions, your Company is implementing repeater-less solution for long haul
communication links, replacing traditional repeater shelters having DG & AC systems.
The solution involves use of Erbium Doped Fibre Amplifiers (EDFA) along with Remote
Optical Pump Amplifier (ROPA) units passive devices in additional fibres of the OPGW to
boost the signal levels. This technology will eliminate the need for traditional repeaters
in long distance AC links with lengths up to 350 km.
Other Technology Tools-Your Company uses different technology tools to
ensure better line availability such as aerial line patrol, temperature scanning, corona
camera, high resolution video, digital camera, surveillance application-based
transformers, reactors and line patrols and real-time data updates through online
applications for efficient asset tracking.
13. Participation in GoI Initiatives
13.1. Promotion of 'Make In India'
Your Company through continuous measures, has encouraged localization of various goods
I to be sourced for development/ operations of transmission system. Foreign manufacturers
have been nudged to set-up facilities in India and thus promoting the Make in India
initiative of the Government of India. With the Company'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. paving
way for a wider vendor base and emergence of a more efficient supply chain.
Your Company also promotes existing vendors to upgrade their equipment to higher
voltage level & cover more items to increase vendor base.
Further, the Company has given much impetus towards procuring from local suppliers in
its various procurement verticals in line with the extant Government of India's policy on
the same. During FY 2021-22, procurement of about Rs.7250 crore was carried out through
Domestic Competitive Bidding route, which is more than 90% of the total procurement done
by the Company. Your Company is actively working for development of its vendor base in the
domestic market by encouraging participation of local suppliers and promoting capacity
building for existing vendors.
13.2. 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 (i) Receivable Exchange of
India Limited (RXIL) (A NSE - SIDBI JV), (ii) Mynd Solutions Private Ltd (Mlxchange) and
(iii) A TREDS Ltd. (Invoicemart) for Trade Receivable e-Discounting System (TReDS). Trade
Receivables Discounting System (TReDS) is the platform for facilitating the financing of
trade receivables from corporate and other buyers, including Government Departments and
Public Sector Undertakings (PSUs), through multiple financiers. The Company is
continuously pursuing with its MSMEs suppliers to get themselves on-boarded on TReDS
Platforms. 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 Government of India.
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 conjunction with its amendment in November
2018.
In terms of the said policy, 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 2021-22 was Rs.2,238 crore. The total procurement by the Company
from MSEs (including MSES owned by SC/ST and Women entrepreneurs) was Rs.1,143 crore
(51.07%).
The Company has taken various steps to encourage MSE participation in the procurement
process across India. During this year, to encourage and develop Micro and Small
manufacturers for supply of innovative & quality products, 18 vendor development
programs have been organized through virtual platforms, wherein presentations were made,
and discussions were held with representatives of numerous MSE's of our country. Special
focus was kept on MSE's owned by SC/ ST and women entrepreneurs and their response in
these meetings/webinars was overwhelming. Several MSME's have been developed as
sub-vendors and approved for supply of components for various equipment.
13.3. Procurement through Government e-Marketplace (GeM):
In line with Government of India mandate, procurement of goods & services in your
Company is being done through GeM portal, which started in FY 2018-19 and in subsequent
years, with persistent emphasis, this has continuously increased. During FY 2021-22,
procurement of Rs.706 crore of goods & services was done through GeM portal which is
almost double of that in FY 2020-21 ( Rs.352 crore).
14. Sustainable Growth
The principles of Environment, Social and Governance (ESG) are being embedded by your
Company into business operations and the Company continues to attach 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 your Company gets an opportunity to benchmark its
various parameters pertaining to ESG under power transmission against domestic &
international peers.
14.1. Environment and Social Management
Transmission projects are mostly environmentally benign due to absence of any chemical
processes that may involve release of pollutants to environment or involving large scale
excavation which may result in soil erosion. Also, due to inherent flexibility both in
choosing most optimum line alignment as well as in finalizing the substation site, your
Company avoids most of the associated social issues.
Your Company not only follows the applicable regulatory requirements but also practices
Environmental and Social prudence in all its business activities to ensure that they
become an inherent and integrated part of our project management process.
Your Company has taken many key initiatives like piloting the use of safer and greener
natural Ester Oil in place of regular synthetic mineral oil in a 400 kV Reactor first time
in the world, integration of Decision Support System (DSS) software developed by Forest
Survey of India (FSI) for identification/ avoidance of environmental sensitive areas
during the early stage of route alignment etc. Further, your Company has undertaken
installation of digital water flow meter for monitoring groundwater extraction to optimize
water consumption/uses and management of biodegradable waste through installation of
composting machine in substation establishments. Besides, to reduce carbon footprint your
company has taken initiative to replace diesel vehicles by electric vehicles &
E-cart/Golf cart progressively in its office establishments/substations.
Transparency - Your Company, a pioneer in Sustainability Reporting in the Indian
Power Sector released its 7th biennial Sustainability Report for FY 2019-21 in March 2022
based on internationally acclaimed and accepted "Global Reporting Initiative (GRI)
Standards (Core)" duly validated by independent Accredited Assurance Provider. The
report is available on the company's website
https://www.powergrid.in/sustainability-report.
Alignment with SDG's - Your 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 13 SDGs out of total 17.
14.2. Corporate Social Responsibility (CSR)
As India's largest Electric Power Transmission Utility, your Company undertakes several
CSR initiatives aimed at social and economic development of areas and communities. Through
these initiatives, we impact the lives of millions of people by promoting inclusive growth
and addressing the basic needs of under privileged and weaker sections of society. Due to
your Company's nature of business in remote areas of India, our CSR activities generally
benefit the rural population and marginalized communities.
During FY 2021-22,your Company has spent Rs.271.14 crore exceeding the CSR budget of
Rs.257.07 crore. Further, 152 new CSR projects of Rs.420.83 crore were sanctioned during
FY 2021-22.
During the year, the Company also contributed Rs.75 crore to PM CARES Fund towards
COVID-19 pandemic.
Your Company undertakes CSR activities in areas of healthcare, drinking water &
sanitation, education, skill development, rural development and infrastructure like roads,
community centers etc. These projects are conceived in consultation with the stakeholders,
primarily in the vicinity of its area of operations. Major CSR projects undertaken and
sanctioned by your Company during the year are as follows:
Major CSR Projects undertaken during FY 2021-22:
Assistance in COVID-19 vaccination programme through procurement of cold chain
equipment for the states of Punjab, Mizoram, Sikkim and UT of Ladakh.
Financial assistance for construction of Nuclear Medicine Theranostics facility
for patients undergoing Radioisotope Treatment at TMC/ACTREC for cancer patients at TATA
memorial hospital, Mumbai.
Financial support for Tata Memorial Centre (TMC) for developing Modular
Operation Theatres at women and child hospital, ACTREC campus, TMC, Navi Mumbai.
Financial assistance for Installation and Operationalization of 480 Smart
classrooms in 240 Government Schools in 12 Districts of Haryana.
Installation of 2x50 NM3/Hr Capacity oxygen generation plant in Gurugram.
Financial assistance to National Foundation for Communal Harmony for education
of 1632 violence affected students from Assam, Manipur and Chhattisgarh.
Financial Assistance for procurement of 10 Neonatal Ventilators and 10 ABG
Machines for District Hospitals at Mewat, Faridabad and Gurugram.
Setting up of ITI, Shergarh, Jodhpur.
Supply & installation of 3,250 solar LED street lights in Himachal Pradesh.
Construction of Schedule Castes Senior Girls Hostel (50 Seater) at Tehsil Sarai
in Singrauli district.
Important CSR projects sanctioned during FY 2021-22:
Funding "POWERGRID Endowment Scholarship" Merit-Cum-Means (MCM)
Scholarship Programme for B.Tech students of Indian Institute of Technology, Madras
(IITM).
Establishment of POWERGRID Gyan Kendra (PGK) by renovation and upgradation of
Shaskiya Barmendra Jila Pustaklaya, Nagod, District Satna Madhya Pradesh.
Establishment of 100 bedded Paediatric Intensive Care Unit (PICU) at GSVM
Medical College, Kanpur.
Supply of Medical equipment to Swami Ramanand Theerth Rural Government Medical
College (SRTRGMC), Ambajogai, Beed district, Maharashtra.
Providing Medical Equipment and Instruments to the various Government health
facilities in the State of Sikkim.
Financial Assistance for Construction of 100 Bedded District Hospital at
Serchhip District in Mizoram, etc.
A complete list of all CSR Projects undertaken and sanctioned by the Company during FY
2021-22 are provided in Annexure-X of this Report.
15. Governance
15.1. Right to Information
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 2021-22, around 1,065 RTI applications were received in the Company and processed
timely as per the RTI Act, 2005. Training programs/awareness sessions for the Company's
CPIOs/PIOs/Appellate Authorities were organized for sensitization about their role in
implementation of the RTI Act.
15.2. Commitment to Transparency and Ethical practices
Your 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.
a) Emphasis on Preventive Vigilance
To strengthen the organizational process and to minimize malpractices in various
systems & activities of the organization, emphasis is laid on preventive vigilance. It
focuses on the right types of systems or re-engineering processes for acting against
potential threats.
During FY 2021-22, 89 surprise inspections, 20 process-on-line inspections and 12 Chief
Technical Examiner (CTE) Type inspections were conducted. Pursuant to Vigilance
inspections and observations/ recommendations, several system improvements have been
implemented.
b) Preventive Vigilance workshops as part of capacity building
During FY 2021-22, 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 Conduct
Discipline and Appeal (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.
c) Vigilance Awareness
In pursuance of the directions of the Central Vigilance Commission, Vigilance Awareness
Week was observed in your Company from 26th October to 1st November 2021 in
line with the theme for this year "Independent India @ 75: SelfReliance with
Integrity; "tORS hqjr @ 75: L VLrHMwj.", with full vigor, following all Covid
related Government guidelines.
Your Company employees and their family members celebrated the Vigilance Awareness week
with great enthusiasm. 696 activities including various competitions viz. essay, quiz,
slogan, and painting competition for kids were organized by your Company for its employees
and their family members wherein approximately 10,000 individuals participated. Walkathon
was organized in around 285 establishments wherein employees along with their families
participated. Nukkad Natak and Awareness Gram Sabhas were also organized during the week.
The message of Vigilance Awareness Week 2021 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 Corporate Centre and all regions.
Integrity Pledge was conducted across all establishments of the Company, and it was
extended to all the stakeholders. Around 20,000 employees and citizens took the Integrity
Pledge.
Vigilance department journal; CANDOUR was released during the closing ceremony of
Vigilance Awareness Week at the Corporate Centre, Gurugram. In line with the Commission's
guidelines, the magazine was released in digital form (e-CANDOUR) for employees and
public.
15.3. 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.
16. People: Our Core Strength
Your Company has achieved excellent financial and operational results every year due to
continuous alignment of HR practices with business objectives along with commitment of its
strong motivated and competent workforce towards achieving Company goals. Your Company
lays emphasis on organization culture that promotes continuous learning, creativity,
sharing and development. Its Human Resource process and systems are designed to acquire,
nurture, and empower professionals in line with core values of the Company in an
equitable, collaborative, healthy and safe environment.
As on 31st March 2022, the employee strength of your Company stood at 8,536
(exclusive of the employees on contract) of which women employees constituted 7.87%.
16.1. Human Resource Development
Your Company firmly believes that great businesses are built with great people and
great teams. To this end, through well-articulated talent management and learning &
development interventions, your Company has always endeavored to create a high trust, high
performance work culture that brings out the best in people, enables and empowers them for
continuous learning and be future ready to create best-in-class organizational
capabilities for unmatched market competitiveness.
To scale up learning and development in Power Sector, your Company has been operating
the state-of-art POWERGRID Academy of Leadership (PAL) at Manesar, which imparts a wide
range of training and development opportunities for its employees and other stakeholders
in India and abroad.
During this year, your Company organized more than 300 training and development
programs through virtual mode through PAL, other Employee Development Centers in the
regions and associated premier educational institutes in India and abroad. The range of
trainings imparted include induction program to new recruits as well as hands-on,
managerial, behavioral and leadership training for its employees and also training
programs for other utilities.
Some of the key Learning & Development interventions undertaken by the Company
during the year includes the following:
Using a web-based Competency based Training Needs Assessment (CTNA), the Company
has devised the Human Resource Development Action Plan for the financial year 2021-22
based on which the competencies of the employees are being upgraded to make them future
ready.
To promote social learning, capture and share both tacit and explicit knowledge
in the Company, the portal for Mentoring and Coaching program named
"SANDARSHIKA" has been rolled out successfully.
Five employees were sponsored for a 15-month PGDM program by NTPC School of
Business.
In the field of e-Learning the Company has undertaken following interventions:
- Developed 72 eLearning modules related to different business verticals and 9
Refresher courses related to Company information. 6,500+ employees have benefited from
these courses.
- Hosted 7 modules related to Power transmission for GOI's ambitious "Mission
Karmayogi" Programme.
- 1,500 employees have been sponsored for Harvard Manage Mentor Program to enhance
Leadership competencies.
- Tie-up with Ministry of IT & Electronics, GOI and IT Industry body NASSCOM for
their FutureSkills PRIME portal. This portal provides access to all employees of your
Company to e-courses in emerging technologies and professional skills.
In the matter of stakeholder development, the Company has undertaken following
interventions:
1,100+ apprentices have been engaged in different trades as per the Apprentice
Act.
350+ contract staff have been imparted training under Recognition of Prior
Learning (RPL) certification.
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 of 6000 unemployed youth in power Sector. Presently 2200+
trainees are undergoing training across 20 locations in India.
Under the Northern Eastern Regional Power System Improvement (CBIS-NERPSIP)
Project, the Company is undertaking Capacity Building and Institutional Strengthening
program for State Power Utilities in 6 (six) states of NER (viz: Assam, Meghalaya,
Mizoram, Manipur, Nagaland, Tripura) and Capacity Building under Comprehensive Scheme
(Arunachal Pradesh & Sikkim - 2 states)
The Company has extended customized Training Programs for clients including
NRPC, KIIFB, NPTI, POSOCO, HVPNL, DTL, REC, PFC, HPPTCL, NPMU, CSPTCL, MEA and Overseas
Clients including KETRACO & PGCB.
16.2. Employee Welfare
In our continual effort to meet and exceed the ever-changing a expectations of
our employees, your Company regularly updates its welfare policies in line with industry
trends. During the year, in view of the second wave of COVID-19 pandemic = that wreaked
havoc around the nation, your Company ^ introduced various initiatives for families of
deceased employees to help them maintain a respectable standard of living.These
rehabilitation initiatives included:
Providing accommodation security to the family, increased
insurance coverage of employees, securing various
employee advances, providing a more comprehensive E medical coverage to
dependents of deceased employees, etc.
Introduced the 'SAKSHAM' scheme to provide monetary assistance for education of
wards of deceased employees and provide skill development opportunities and financial aid
to spouse of deceased employees to build an earning potential within the family.
Your Company arranged several vaccination camps for regular and contractual
employees, their families, Isolation facilities were setup at various locations for
affected employees and dependents. Various other facilities viz. home collection of
samples for COVID-19 testing, medical consultation through tele- medicine, etc. were also
arranged to help employees and their families during these unprecedented circumstances.
Many webinars/ talks were also held by experts for employees on medical care,
physical and mental wellbeing and lifestyle management during the pandemic.
Your Company introduced the Equal Opportunity Policy this year to demonstrate
our commitment towards promoting diversity and inclusion in the workforce. The Policy aims
to create a harmonious workplace for all employees irrespective of their gender, nativity,
community, religious beliefs, or physical and mental ability and enable them to achieve
their full potential.
Your Company also rationalized its medical rules to promote health and
well-being requirement of our employees and their families.
For the first time, your Company organized its Annual Cultural meet for all
employees and their family members in virtual mode owing to COVID-19 pandemic situation
where employees and their family members show-cased traditions/cultures of different
geographies of country.
Your Company's employees actively participated in Fit India Freedom Run 2.0 and
other events organized across establishments of Company in commemoration of Azadi ka Amrit
Mahotsav.
16.3. Grievance Redressal
Grievance redressal is always taken up with priority and your Company promptly
redresses the grievances of its employees within the broad parameters of guidelines
enumerated by Government of India and policy framework. Employees can lodge their
grievances by way of an online portal. The Company has designated nodal officers at
corporate & regional offices for systematic & prompt redressal of the grievances
within stipulated time frames.
16.4. Ensuring Social Justice
Your Company 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 based on caste, religion & disabilities amongst the employees. To
ensure effective discharge of duties across all establishments of your Company, separate
liaison officer for each region has been nominated. The Company implements all directives
and guidelines regarding reservation policy issued by Government of India. Annual
inspection is also conducted to ensure implementation of directives issued by Government
of India. Periodic meetings are also held with representatives of the association of SC/
ST & OBC to resolve issues, if any.
17. Prevention of Sexual Harassment at workplace
As per the Sexual Harassment of Women at Workplace (Prevention, Prohibition and
Redressal) Act, 2013 and rules made there under, the Company has Internal Complaint
Committees (ICC), in place, to redress complaints received regarding sexual harassment.
Your Company 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.
Three complaints of sexual harassment were received during FY 2021-22 and all complaints
has been disposed off in stipulated time as per the Guidelines.
18. Implementation of Official Language (Rajbhasha)
In pursuance of Government of India's Rajbhasha policy to promote Indian languages and
Rajbhasha "Hindi", your Company has made all round efforts to integrate and
promote use of Hindi in its works at all levels. Your Company has proved its commitment to
ensure the implementation of Rajbhasha policy and to achieve the goal as laid out in the
Rajbhasha annual target given by Department of Official Language.
To ensure the increased use of Official language, various activities such as Annuvad
Abhayaas Karyakram, Workshops, Trainings, motivational programmes have been organized.
Computer trainings are being imparted to enhance the working knowledge in Hindi while
using computers. Hindi classes are also being organized for non- Hindi speaking employees
through Hindi Teaching Scheme.
Various activities are undertaken to publicize Hindi every year, Akhil Bhartiya
Rajbhasha Sammelans and technical conferences in Hindi, Kavi Sammelans (Poetry sessions).
Plays, publication of House Magazines, publication of monthly articles in Hindi via emails
are most prominent among these. Most
of these programmes were organized by video conferencing in the financial year 2021-22.
Also, 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. Your Company has established one of the best Hindi libraries among Public
Sector where popular/literary Magazines and newspapers have been made available for the
employees.
Attractive incentive schemes for employees working in Hindi have been implemented as
per the Government guidelines. In addition, various 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.
The effort made by your Company has been applauded in several forums during the FY
2021-22. Your Company received the first prize for excellent implementation of official
language for the year 2019-20 by Ministry of Power, during the year. The Company also
received awards from "Town Official Language Implementation Committee (TOLIC),
Rajbhasha Vibhag, Ministry of Home Affairs, Government of India and other agencies
regarding Implementation of Official Language. The offices of the regional headquarters
including Vadodara, Bangalore, Kolkata, and Nagpur along with other offices like Siliguri,
Itarsi, Nellore, Madurai, Durgapur, Roorkee, Mandola, Dadri etc. have been honored.
Besides, your Company's efforts were also applauded during various inspections and
discussions done by Hon'ble Committee of Parliament on Official Language on different
occasions.
19. Stakeholder Engagement
Your Company focuses on engaging with all its stakeholders and building cordial
relationships with them.
This helps us in not only understanding their needs and expectations, but also helps us
in recognizing opportunities and mitigating risks to our operations. We have a framework
for engaging with our stakeholders which also includes categories of Stakeholder along
with the respective modes of engagement.
For details, you may refer to the 'Value Creation' section of this Report.
20. Management Discussion and Analysis
The Management Discussion and Analysis Report, as stipulated under Regulation 34(2) of
the SEBI (LODR) Regulations, 2015 and pursuant to Clause 7.5 of DPE Guidelines on
Corporate Governance, forming part of the Directors' Report, is placed at Annexure-I of
this Report.
21. Business Responsibility Report
The Business Responsibility Report, as stipulated under Regulation 34 (2) of the SEBI
(LODR) Regulations, 2015, is given in Annexure-II and forms part of this Report.
22. 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 'Conservation of energy, technology
absorption and foreign exchange earnings and outgo', is given in Annexure-III to
this Report.
23. Auditors
23.1. 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 2021-22.
The Statutory Auditors have given an unqualified report. The report is self-explanatory
and does not require any further comments by the Board.
23.2. 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, 2022 from the Comptroller and
Auditor General of India (C&AG) under Section 143(6) of the Companies Act, 2013. The
comments are placed at Annexure-IV.
23.3. Secretarial Audit
M/s Kumar Naresh Sinha & Associates, Practicing Company Secretary conducted
Secretarial Audit of the Company for the financial year ended 31st March, 2022.
The Secretarial Audit Report is placed at Annexure-V.
The observations of Secretarial Auditor are as under:
1. The Company did not have requisite number of Independent Directors as required under
Regulation 17 of SEBI (LODR) Regulations, 2015 and Para 3.1.4 of DPE Guidelines on
Corporate Governance and the Company had a Woman Independent Director till 25th
July, 2021.
2. The composition of Audit committee was not in line with Regulation 18(1)(b) of SEBI
(LODR) Regulations, 2015 from 23rd July, 2021 to 14th December,
2021; and
3. The Composition of Nomination and Remuneration Committee was not in line with
Regulation 19(1)(c) of SEBI (LODR) Regulations, 2015 from 26th July, 2021 to 14th
December, 2021.
Regarding above, it was explained that yours is a Government Company, the power to
appoint Independent Directors vests with the Government of India and the Company has taken
up the matter for appointment of requisite number of Independent Directors with Government
of India.
23.4. Cost Auditors & Cost Records
The Company appointed M/s Dhananjay V. Joshi & Associates and M/s Bandyopadhyaya
Bhaumik & Co., Cost Accountants as Cost Auditors for the FY 2021-22 under Section 148
of the Companies Act, 2013.
Your Company is maintaining Cost Accounting Records as prescribed under the Companies
(Cost Record and Audit) Rules, 2014, specified by the Central Government under section
148(1) of the Companies Act, 2013.
24. Board & Committees
24.1. Company's Board
During FY 2021-22, Shri Ghanshyam Prasad, Jt. Secretary, Ministry of Power, Government
of India has been appointed on the Board of Company as Part-time Government Nominee
Director w.e.f. 21st December 2021. Shri Onkarappa KN, Shri Chetan Bansilal
Kankariya have been appointed as Independent Directors w.e.f. 17th November,
2021 and Shri Ram NareshTiwari.asan Independent Director w.e.f. 18th November,
2021.
Shri Dilip Nigam, Scientist 'G', Ministry of New and Renewable Energy (MNRE),
Government of India completed his tenure as a Government Nominee Director on 30th
April, 2022 and appointed again as Government Nominee Director w.e.f. 6th June,
2022.
Shri Raghuraj Madhav Rajendran has been appointed as a Government Nominee Director
w.e.f. 5th August, 2022.
Shri Sunil Kumar Sharma and Smt. A.R. Mahalakshmi, Independent Directors have completed
their respective tenure of 03 years on 22nd July, 2021 and 25th
July, 2021, respectively.
Shri Mritunjay Kumar Narayan, Joint Secretary, Ministry of Power, Govt. of India
demitted the post of Government Nominee Director w.e.f. 6th December, 2021.
Smt. Seema Gupta completed her tenure as Director (Operations), on attaining the age of
superannuation w.e.f. 31st May, 2022.
Shri M.N. Venkatesan, Independent Director completed his tenure of 03 years on 10th
July, 2022.
Shri Ghanshyam Prasad, Jt. Secretary, Ministry of Power, Govt. of India demitted the
post of Government Nominee Director w.e.f. 14th July, 2022.
Shri M. Taj Mukarrum completed his tenure as Director (Finance), on attaining the age
of superannuation w.e.f. 31st July, 2022.
The Board places on record its appreciation and gratitude to Shri M. Taj Mukarrum, Smt.
Seema Gupta, Shri Mritunjay Kumar Narayan, Shri Sunil Kumar Sharma, Smt. A.R. Mahalakshmi,
Shri M.N. Venkatesan and Shri Ghanshyam Prasad for their contribution and support to the
Company.
In accordance with the provisions of the Companies Act, 2013 and the Articles of
Association of the Company, reappointment of Shri Abhay Choudhary (DIN: 07388432) and Dr.
Vinod Kumar Singh (DIN: 08679313), as Directors liable to retire by rotation, have been
included in the Notice of Annual General Meeting.
24.2. Number of Meetings of the Board
Board of Directors met 17 times during FY 2021-22. Details regarding dates and
attendance at the Board meetings are provided in the Report on Corporate Governance, which
forms part of this report.
24.3. Committees of the Board
The Company has constituted Audit Committee, CSR Committee, Nomination and Remuneration
Committee, Stakeholders' Relationship Committee, Risk Management Committee and other
Committees for operational convenience. The composition and scope of the aforesaid
Committees are provided in the Report on Corporate Governance, which forms part of this
report.
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) Regulations, 2015 is attached at Annexure-VII to this Report.
24.4. 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 and Regulation 16(1)(b) of SEBI
(LODR) Regulations, 2015 for holding the position of 'Independent Director' and necessary
declaration from each Independent Director under Section 149 (7) of the Companies Act,
2013 and Regulation 25(8) of SEBI (LODR) Regulations, 2015 has been received.
Pursuant to Regulation 34(3) and Schedule V Para C Clause (10)(i) of SEBI (LODR)
Regulations, 2015, M/s Naresh Kumar Sinha & Associates, Company Secretaries have
issued Certificate of Non- Disqualification of Directors, who were on the Board of
Directors during FY 2021-22.
24.5. Performance Evaluation of Directors
This has been provided in the 'Report on Corporate Governance' section of this Report
and you may refer it for details.
24.6. Policy on Director's Appointment and Remuneration
The Company has framed a policy on the remuneration of the Directors, KMPs and
employees. The said policy is available on our website at
https://www.powergrid.in/sites/default/files/Investor Relation/Reports Filings/Code of
Conduct Policies/04 Remuneration%20Policy.pdf
25. Compliances
25.1. Risk Management Policy
Information on Risk Management Framework is covered in the Management Discussion and
Analysis placed at Annexure-I of this Report.
25.2. 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.
25.3. Annual Return of the Company
In accordance with Section 92(3) read with Section 134 (3) (a) of the Companies Act,
2013, Annual Return of the Company is available on the website of the Company and can be
accessed at https://www.powergrid.in/sites/default/ files/Draft MGT 7 21 22.pdf
25.4. 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.
25.5. Contracts or Arrangements with Related Parties
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. 55 of the Financial
Statement which sets out related party disclosure.
25.6. Subsidiaries and Joint Ventures
As on 31st March 2022 the Company has 24 subsidiaries and 11 Joint Ventures
Companies.
A statement containing salient features of the financials of our Subsidiaries and Joint
Ventures are covered in the Management discussion and Analysis and annexed in the
prescribed format AOC-1 as Annexure-IX of this Report.
25.7. Dividend Distribution Policy
The policy was adopted to set out the parameters and circumstance that will be
considered by the Board in determining the distribution of dividend to its shareholders
and/or retained profits earned by the Company. According to the policy, Dividend for every
financial year shall be decided by the Board considering various statutory requirements
and Govt. guidelines, financial performance of the Company and other internal and external
factors enumerated in the policy. The policy is also available on the Company's website at
https://www.powergrid.in/sites/default/files/ Dividend%20Distribution%20Policy.pdf
25.8. 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.
26. Annual Report on Corporate Social Responsibility
In terms of provisions of Section 135 of the Companies Act, 2013, read with amended
Companies (CSR Policy) Rules, 2014, the Annual Report on CSR activities in the format
prescribed under the said rules is annexed to this Report at Annexure-X.
27. Particulars of Employees
Your Company being a Government Company, the provisions of Section 197(12) of the
Companies Act, 2013 and relevant Rules issued thereunder, are not applicable as per the
notification dated 5th June, 2015 issued by the Ministry of Corporate Affairs.
The terms and conditions of the appointment of Functional Directors are subject to the
applicable guidelines issued by the Department of Public Enterprises (DPE), Government of
India from time to time.
28. Insolvency and Bankruptcy Code, 2016
No application has been made under the Insolvency and Bankruptcy Code; hence the
requirement to disclose the details of application made or any proceeding pending under
the Insolvency and Bankruptcy Code, 2016 during the year along with their status as at the
end of the financial year is not applicable.
29. Reporting of Frauds by Auditors
During the year under review, none of the Auditors have reported to the Audit Committee
or the Board, under Section 143(12) of the Companies Act, 2013 for any instances of fraud
committed against the Company by its officers or employees.
30. Fixed deposits
We have not accepted any fixed deposits, including from the public and as such, no
amount of principal or interest was outstanding as of the Balance Sheet date.
31. Secretarial Standards of ICSI
The Company has followed the requirements prescribed under Secretarial Standard on
Meetings of Board of Directors (SS-1) and General Meetings (SS-2) read with MCA circulars
granting exemptions in view of the Covid-19 pandemic.
32. Material Changes & Commitments
There have been no material changes & commitments affecting the financial position
of the Company, which have occurred between the end of the financial year and date of this
report.
33. 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 to give a true and fair
view of the situation 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.
34. Acknowledgements
The Board of Directors would like to express their deep sense of appreciation for the
guidance and co-operation received from Government 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 Government departments/agencies at the Central and
State level without whose active support, the achievements of the Company 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 your 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 2021-22. 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.
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For and on behalf of the Board of Directors |
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(K. Sreekant) |
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Chairman & Managing Director |
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DIN: 06615674 |
Date: 5th August, 2022 |
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Place: Gurugram |
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