Power Grid Corporation of India

Power Grid Corporation of India Limited

File:Power Grid Corporation of India Logo.svg
Traded as	NSE: Powergrid BSE: 532898 BSE SENSEX Constituent NSE NIFTY 50 Constituent
Industry	Electricity grids
Founded	23 October 1989 (1989-10-23)
Headquarters	Gurgaon, Haryana, India
Area served	India
Key people	Kandikuppa Sreekant, Indian Power Engineering Service (Chairman & MD)
Products	Transmission Distribution Energy trading
Revenue	₹40,106 crore (US$5.6 billion) (2021)
Operating income	₹34,993 crore (US$4.9 billion) (2021)
Net income	₹12,036 crore (US$1.7 billion) (2021)
Total assets	₹255,549.66 crore (US$36 billion) (2020)
Total equity	₹64,439.69 crore (US$9.0 billion) (2020)
Owner	Ministry of Power, Government of India
Number of employees	9,255 (March 2019)
Divisions	Power System Operation Corporation Limited Powertel India Limited
Website	www.powergrid.in

Power Grid Corporation of India Limited is an Indian statutory corporation under the jurisdiction of Ministry of Power, Government of India and is headquartered in Gurugram, India and engaged mainly in transmission of bulk power across different states of India. Power Grid transmits about 50% of the total power generated in India on its transmission network. It is also certified for PAS 99:.

Origin

Power Grid Corporation of India Limited was incorporated on 23 October 1989 under the Companies Act, 1956 with an authorized share capital of Rs. 5,000 Crore (subsequently enhanced to Rs. 10,000 Crore in Financial Year (FY) 2007–08) as a public limited company, wholly owned by the Government of India with 51.34% stake in the company as on 31 December 2020 and as principal electric power transmission company for the country.

Its original name was the 'National Power Transmission Corporation Limited incorporated on 23 October 1989, and it was charged with planning, executing, owning, operating and maintaining high-voltage transmission systems in the country. On 8 November 1990, the National Power Transmission Corporation received its Certificate for Commencement of Business. Their name was subsequently changed to Power Grid Corporation of India Limited, which took effect on 23 October 1992.

Power Grid started functioning on a management basis with effect from August 1991 and subsequently, it took over transmission assets from NTPC, NHPC, NEEPCO, NLC, NPC, THDC, SJVNL etc. in a phased manner and it commenced commercial operation in January'93. In addition to this, it also took over the operation of existing Regional Load Despatch Centers (RLDCs) from Central Electricity Authority (CEA), in a phased manner from 1994 to 1996, which have been upgraded and modernized with State-of-the-art Unified Load Despatch and Communication (ULDC) schemes. Consequently, National Load Despatch Centre (NLDC) was established in 2009 for overall coordination at the National level. Later the company for making efficient use of its spare telecommunication capacity of unified load dispatch center (ULDC) schemes had diversified into telecom sector and also leverage on its country-wide transmission infrastructure.

According to its mandate, the corporation, apart from providing a transmission system for evacuation of central sector power, is also responsible for the Establishment and Operation of Regional and National Power Grids to facilitate the transfer of power within and across the Regions with Reliability, Security, and Economy on sound commercial principles. Based on its performance Power Grid was recognized as a Mini-Ratna Category-I Public Sector Undertaking in October 1998. It is conferred with the status of "Navratna" by the Government of India in May 2008 and "Maharatna" status in October 2019. Power Grid, as the Central Transmission Utility of the country, is playing a major role in the Indian Power Sector and is also providing Open Access to its inter-State transmission system.

Business

Power Grid operates throughout India and covers 90% of country's interstate and inter-regional electric power transmission system and its business segments include Transmission, Consultancy, Telecom and ULDC/ RLDC. Its transmission network consists of roughly 168140 circuit kilometers and 252 EHVAC and HVDC substations, which provide total transformation capacity of 422430MVA megavolt ampere as on 31 January 2021,and the transmission network maintained at an availability of over 99%. Power Grid's interregional capacity is 75,050 MW. Examples of Power Grid-owned stations include the Vizag back-to-back HVDC converter station, the Chandrapur back-to-back HVDC converter station, the India Sri Lanka HVDC Interconnection, and the Talcher–Kolar HVDC system.

Power Grid is listed on both the BSE and the NSE. As of 30 September 2010, there were 792,096 equity shareholders holders in Power Grid. Initially, Power Grid managed transmission assets owned by NTPC, NHPC Limited ("NHPC") and NEEPCO Limited. In January 1993, the Power Transmission Systems Act transferred ownership of the three power companies to Power Grid. All employees of the three companies subsequently became Power Grid employees.

Powertel

Power Grid's telecom company, Powertel, operates a network of 47,735 Kilometers and points of presence in 688 locations across India.

Transmission network failures

Main article: 2012 India blackouts

About 2:35 a.m on 30 July 2012, the Northern Region Grid, which provides power to nine states in northern India including Delhi, experienced a widespread outage due to a grid disturbance. Power Grid and POSOCO began work immediately to restore power. By 8:00 a.m. essential services had been restored, with 60 percent of the normal Northern Region Grid load restored by 11:00 a.m. Power supply was then restored progressively and by 12:30 p.m. power was extended to most of the cities and towns through Power Grid substations. The Northern Region Grid was brought back to normalcy to meet the demand of about 30 GW at 7:00 p.m.

On 31 July 2012, the Northern Region Grid collapsed a second time, hours after the power supply had been restored to the northern region following the previous day's disruption. Eastern transmission lines also failed, disrupting power supply in Delhi, Uttar Pradesh, Haryana, West Bengal, Assam and Punjab, among other states. After the power failures, then-Power Minister Veerappa Moily said that transmission grids would be independently audited in three months to ensure that the grids were fail-safe.

PowerGrid InvIT initial public offering

In late April 2021, PowerGrid floated an offer for sale via the infrastructure investment trust (InvIT) route. The offer opened on 29 April and closed on 3 May, by which the initial public offering was subscribed 4.83 times. This was the second InvIT initial public offering in the country.

Historical landmarks

Following are the historical landmarks in the lifetime of the company from the date of formation:

2017 - announced that it has been declared as the successful bidder under tariff based competitive bidding to establish '765kV Strengthening in Eastern Region (ERSS-XVIII)' on build, own operate and maintain (BOOM) basis on 21 February. Announced on 23 February that it had entered into loan agreement with Asian Development Bank (ADB) for an amount not exceeding US$500 million for part funding of its various projects. On 24 March it had announced that 1,500 MW, Pole-I of 800kV HVDC Champa-Kurukshetra transmission line has been put into commercial operation. On 2 May, the Department of Telecommunications, Ministry of Communications, Government of India granted Unified License to Power Grid Corporation of India with National Long Distance and Internet Services Provider - Category A' service authorizations for providing telecom services valid for 20 years. Announced on 17 August that it had entered loan agreement with Asian Development Bank (ADB) for an amount of US$500 million. Board of Directors at its meeting held on 19 September 2017 accorded investment accorded investment approval for 'Baharampur (Power Grid) - Bheramara (Bangladesh) 2nd 400kV D/c Transmission Line (Indian portion)' at an estimated cost of Rs 198.49 crore with commissioning schedule of 24 months from the date of investment approval. On 29 September, company announced that it has entered into a term loan facility agreement for Rs 3270 crore with ICICI Bank for the purpose of funding of capital capital expenditure for expansion, renovation and setting up various on-going and new transmission projects. On 17 October, company announced that it was declared successful bidder under tariff based competitive bidding (TBCB) for the establishment of transmission system in Bihar, which includes establishment of three new 400 kV substations and associated 400kV transmission lines. Board of Directors at its meeting held on 2 November accorded investment approval for two projects at an estimated total cost of Rs 381.61 crore and also approved formation of a joint venture with Uttar Pradesh Power Transmission Corporation on 50:50 equity participation basis for taking up intrastate transmission system in Uttar Pradesh.

2016 - On 2 April it had announced that it had commissioned transmission projects worth worth Rs 30300 crore (unaudited) in Financial Year 2015–16. On 26 May Board of Directors at its meeting held approved for Investment of 'North Eastern Region Strengthening Scheme - IV (NERSS - IV)' at an estimated cost of Rs 364.60 crore with commissioning schedule of 24 months from the date of investment approval. On 16 September Board of Directors at its meeting sanctioned investment approval for 'System Strengthening in Southern Region - XXI' at an estimated cost of Rs Rs 562.25 Crore, with commissioning schedule of 30 months progressively from the date of investment approval. Board of Directors at its meeting held on 22 October accorded approval for amendment to Investment of 'North Eastern Region Strengthening Scheme - IV (NERSS - IV)' at an estimated cost of Rs 409.19 crore with commissioning schedule of 24 months from the date of investment approval.

2015 - The Board of Directors of the company at its meeting held on 24 July, approved for the investment approval for 'Transmission System associated with RAPP 7 & 8 Part-B' at an estimated cost of Rs 307.18 with commissioning schedule of 28 months from the date of investment approval, corresponding with the Implementation Agreement (IA) signed with the generator. Board of Director's at its meeting held on 15 September accorded the investment approval for North Eastern Strengthening Scheme-III' at an estimated cost of Rs 133.71 crore, with commissioning schedule of 27 months from the date of investment approval. On 24 September, company announces that Pole-I of q 800kV Agra - Bishwanath Chariali HVDC transmission line has been completed and power flow has commenced which is the first q 800kV HVDC transmission line in the country and world's longest multi terminal HVDC transmission line with line length of approximately 1750 kilometres. On 8 October, company announces that it has incorporated a wholly owned subsidiary company named Grid Conductors Limited to manufacture aluminium and aluminium alloy electricity conductors at an estimated cost of Rs 127.35 crore. Announces in October that it has been selected as the successful bidder under tariff based competitive bidding to establish transmission system for 'Strengthening of Transmission System Beyond Vemagiri' project on build, own operate and maintain (BOOM) basis and the project comprising 765 kV & 400 kV, D/C transmission lines will traverse the states of Andhra Pradesh, Telangana and Karnataka and include establishment of one 765/400 kV substation in Andhra Pradesh.

2014 - On 25 March, company announces that pursuant to its selection as the successful bidder under tariff based competitive bidding it has acquired from REC Transmission Projects Company Limited (the Bid Process Coordinator) Unchahar Transmission Limited (UNCHAHAR TL),the Special Purpose Vehicle to establish the transmission system for ATS of Unchahar TPS on build, own operate and maintain (BOOM) basis. Also the board of directors at its meeting on 27 March accorded the investment approval for 'Augmentation of transformers in Northern Region - Part B' at an estimated cost of Rs 155.57 crore,with commissioning schedule of 24 months from the date of investment approval.

2013 - It announces of a landmark transaction for US$500 million in debut issued in foreign currency market with a coupon rate of 3.875% p.a. for ten years note. On 11 March,the Board accorded the investment approval for 'Transmission System associated with Meja TPS' at an estimated cost of Rs 55.73 crore with commissioning schedule of 28 months from the date of investment approval. On 30 August,the company announces that it has pursuant to its selection as the successful bidder under tariff based competitive bidding, has acquired from REC Transmission Projects Company Limited (the Bid Process Coordinator) Vizag Transmission Limited (VIZAG TL), the special purpose vehicle to establish the transmission system for system strengthening in Southern Region for import of power from Eastern Region on build, own operate and maintain (BOOM) basis. Om 18 November, company announces of receiving approval from the Ministry of Power for follow on public offer consisting of fresh issue of 60.18 crore equity shares of the company and simultaneous disinvestment by Government of India of 18.51 crores equity shares. The Board at its meeting held on 9 December,approved the investment approval for 'Eastern Region Strengthening Scheme-X (ERSS-X)' at an estimated cost of Rs 143.94 crore, with schedule of 24 months from the date of investment approval.

2012 - In March the company had announced that it had been selected as the successful bidder in its debut participation in tariff based competitive bidding for establishing transmission system associated with IPPs of Nagapattinam/Cuddalore Area: Package - A, which comprises 765 kV D/C & 765 kV S/C traversing the states of Tamil Nadu and Karnataka and is to be constructed over a period of 36 months. On 19 April, it declares has been selected as the successful bidder under tariff based competitive bidding for establishing transmission system associated with IPPs of Vemagiri Area: Package - A in Andhra Pradesh. on 31 August 2012, the board of directors at its meeting accorded the investment approval for System Strengthening - XIX in Southern Regional Grid' at an estimated cost of Rs 1935.35 crore with commissioning schedule of 27 months from the date of investment approval. Company's board of directors at its meeting held on 14 October 2012 accorded the investment approval for Strengthening Scheme in Northern Region' at an estimated cost of Rs 100.55 crore with commissioning schedule of 24 months progressively from the date of investment approval. In the meeting held on 6 December 2012,Board of directors accorded approval for the formation of a joint venture company with Odisha Power Transmission Corporation Ltd for taking up intra state transmission projects in Odisha and later the board also approved formation of a joint venture company with Bihar State Power (Holding)Co. Ltd. for taking up intra state transmission projects in Bihar.

2011 - Board of Directors at its meeting held on 26 August permitted the investment sanction for 'Transmission System for IPP generation projects in Madhya Pradesh and Chhattisgarh' at an estimated cost of Rs 1366.34 crore, with commissioning schedule of 27 months from the date of investment approval.

2010 - Commissioned the commercial operations of the National Load Despatch Centre and also 220/110/20 KV Chimtala sub-station at Kabul, Afghanistan. It entered into contract with UMS Group, USA for the International Benchmarking of their O&M practices through International Transmission Operations & Maintenance Study (ITOMS) based on cost, productivity, service levels, equipment maintenance,Asset Management, safety etc. from March. During the financial year 2009-10 commissioned transmission projects worth Rs 3,610 crore. CERC accords regulatory approval to the company to proceed with the execution of nine high capacity transmission corridors, with HVDC link/765 kV UHVAC lines, to facilitate the evacuation of power from various generation projects being developed by independent power producers within India from May. During the year 2010–11, transmission projects worth Rs 7,313 crore were commissioned. Additionally it commissions about 6,760 ckm of transmission lines, 11 new sub-stations and transformation capacity of about 9,500 MVA. It was ranked as 8th overall among the Fastest-Growing Asian Companies and 18th as Fastest-Growing Global Companies in the 'Platts Top 250 Global Energy Company rankings' during the year and had also featured in the 'Forbes Global 2000' list. Board of Directors at its meeting held on 2 July 2010 approved Follow on Public Offer of 20% of existing paid up share capital comprising fresh issue 10% of existing paid up share capital and Offer for Sale (Disinvestment) of 10% of existing paid up share capital by Government of India subject to approval of the Cabinet Committee on Economic Affairs. Due to the delay in schedules of some power generation projects including Subhansiri HEP, Board of Directors at its meeting held on 23 November 2010 cut the Capital Budget Estimate of Rs 12,900 crores for the Financial Year 2010–11 to Rs 11,900 crores.

2009 - Established the National Load Despatch Centre and incorporated fully owned subsidiary company, Power System Operation Corporation Ltd to manage their Grid Management function in accordance with Government of India guidelines.

2008 - Declared as a Navratna public sector undertaking by the GoI and it also completed the 220 KV Double Circuit Transmission line from Pul-e-Khumri to Kabul Transmission System in Afghanistan.

2006 - Commissioned the unified load despatch and communications scheme for the western region and also entered into an agreement with REC and certain state governments and state utilities for undertaking rural electrification works under the Rajiv Gandhi Grameen Vidyutikaran Yojana in nine states in India.

2005 - Commissioned the unified load despatch and communications scheme for the eastern region.

2003 - Entered into a joint venture arrangement with the Tata Power Company Ltd for implementing a part of the entire transmission system associated with Tala Hydro-Electric Project which was the first public-private sector initiative in the transmission sector and commissioned the 400 KV Raipur-Rourkela line transmission line developed by it and also securing their first international consultancy contract from Bhutan Telecommunications.

2002 - Commissioned the unified load dispatch and communications schemes for the northern and southern regions and also commissioned the 2,000 MW Talchar-Kolar bipolar HVDC link developed by it.

2001 - Department of Telecommunications, GoI, granted Infrastructure Provider II license (IP II),to pursue leasing of bandwidth capacity to various customers on their telecommunications network.

1998 - Declared as a Mini Ratna Category I public sector undertaking by the Government of India.

1996 - Acquired the management of the remaining two regional load despatch centres, the Northern Regional Load Despatch Centre and the Western Load Despatch centre.

1995 - Acquired the management of the Eastern Regional Despatch Centre and the North Eastern Load Despatch Centre.

1994 - Took over the management of Southern Regional Load Despatch Centre and transmission assets from Neyveli Lignite Corporation Ltd were transferred to the company.

1993 - According to the legislation promulgated by the Parliament with effect from 1 April 1992 for the transmission of assets of NTPC Ltd, NHPC Ltd and the North-Eastern Electric Power Corporation Ltd from January, 1993 and later in the same year the transmission assets of Tehri Hydro Development Corporation Ltd pursuant to a memorandum of understanding executed between both the parties.

1992 - On 23 October 1992, the name of the company was changed to Power Grid Corporation of India Ltd.

1989 - Incorporated on 23 October 1989 with the name National Power Transmission Corporation with the responsibility of planning, executing, owning, operating and maintaining the high voltage transmission systems in the country.

See also

• India Sri Lanka HVDC Interconnection
• Talcher–Kolar HVDC system
• Chandrapur back-to-back HVDC converter station
• Vizag back-to-back HVDC converter station
• The Electricity Act, 2003
• Electricity sector in India

External links

• Official Website
• Grid maps of southern region
• PowerGrid InvIT initial public offering