XAVIER INSTITUTE OF SOCIAL SERVICE

(Ranchi,

Jharkhand)

ANALYSIS OF REVENUE FROM CONSULTANCY SERVICES AT

POWER GRID CORPORATION OF INDIA LIMITED Gurgaon, Haryana

AS A PART OF SUMMER INTERNSHIP PROGRAMME Under the Guidance o Mr! "ika#h $handra Thakur (Mana%er & Finance ' Account#, PG$I() ' Pro ! Arana )au#ar (Facu*t+ Me,-er, .ISS, Ranchi) Fro, /0!12!/103 To 04!15!/103 (6 7eek#)

Su-,itted -+89

Animesh Jha
.A"IER INSTITUTE OF SO$IA( SER"I$E Ranchi 9 632110

APPROVAL SHEET
Thi# i# to certi + the Su,,er Pro:ect entit*ed Analysis of Revenue from Consultancy Jobs at Power Grid Corporation of India Limited ha# -een ;re;ared -+ r! A"I #$% J%A in ;artia* u* i**,ent o the re<uire,ent or the a=ard o the Po#t Graduate >i;*o,a in Mana%e,ent (Finance) at .a?ier In#titute o Socia* Ser?ice (.ISS), Ranchi! The #tud+ e,-odie# the data co**ected, ana*+@ed and co,;i*ed -+ the re#earcher under the %uidance o the under#i%ned %uide o the in#titute and there-+ a;;ro?ed a# indicatin% the ;ro icienc+ o the re#earcher!

Prof. Arana Kausar Project Guide. Coordinator.

Prof. Bhaskar Bhowani. Summer Internship

Dr. Ratnesh Chatturvedi. HOD inance.

Dec!aration
I hear"# dec!are that the project report entit!ed $Analysis of Revenue from Consultancy Jobs at Power Grid Cor oration of !ndia "imited# has "een prepared "# me durin% the period &rom under the %uidance o& 'r. Vi(ash Chandra Tha(ur)Manager- Finance & Accounts* and Pro&. Arana +ausar, acu!t# 'em"er -a.ier Institute o& Socia! Ser.ice, Ranchi. I a!so dec!are that the project has not "een su"mitted nor sha!! it "e su"mitted in &uture to an# other /ni.ersit# or Institution &or the a0ard o& an# other de%ree or dip!oma.

Date1 P!ace1

Si%nature )Animesh 2ha*

AC+3O4LEDGE'E3T
3

It 0as rea!!# a %reat e5perience to 0or( &or a compan# o& the stature o& P$%&RGR!D. 4e &ind %reat p!easure in e5pressin% our deep sense o& %ratitude to0ards a!! those 0ho ha.e made it possi"!e &or us to comp!ete this project 0ith success. Their contri"ution, "i% or sma!!, 0as .a!ua"!e to us &or the comp!etion o& the project. irst o& a!!, 0e 0ou!d !i(e to than( 'r.(ikas Chandra )hakur *'ana+er ,inance Accounts. 0ho %a.e us an opportunit# to do a project &or this esteemed compan# and a!so he!ped us immense!# as our e5terna! %uide. He pro.ided us 0ith .a!ua"!e (no0!ed%e, %a.e us precious time and shared his e5perience 0ith the compan# and recent de.e!opments that are ta(in% p!ace in the same or%ani6ation.

A specia! than(s to our mentors &rom the institute Prof. Dr. /ubha0it Bhattacharya )Department o& inance* 7 Prof. Arana Kausar )Department o& inance*, 0ho pro.ided us 0ith their immense support and constant!# %uided us throu%hout the project and 0ithout their %uidance the project cou!d not has "een easi!# comp!eted. Last but not the least a special thanks to our friends and family for standing by us and helping us in various ways for successful completion of this Project.

CO3TE3TS
4

Serial No

Topics

Page No.

1.1 1.2 1.3 1.4 1. 1.) 1.! 1.# 1.+

2 2.1 2.2 2.3 2.4 3 3.1 3.2 3.3 3.4 4 4.1 4.2 4.3 4.4 4. 4.) 4.! 4.# .1 .2 .3 .4 . .) .! .# )

Introduction to the Topic "tructure of Power "ector $lectricity %ct 2&&3 Problems and issues concerned with Power "ector 'lobali(ation of Power "ector Players of the "ector Licensees *nterrelationship between players ,arket "hare of the major players and --* National Grid *ntroduction .ormation of /ational 'rid 0evelopment of /ational 'rid 0istribution of Power "ector Research Methodology 1ustification of the "tudy "ources of *nformation "cope of "tudy Limitations of "tudy Company Profile %n 2verview 3ompany -istory and *ncorporation P24$5'5*0 6 7he 3ompany 8ision and ,ission of the 3ompany 2bjectives of the company ,ilestones %chieved P24$5'5*09s Performance .ields of 2peration: "ervices offered by P24$5'5*0 Analysis of Consultancy Service %reas of 3onsultancy "ervice offered by P24$5'5*0 Process of 2btaining a consultancy assignment ,ethod 2f ;idding 1oint 8enture 3omparison of $arnings through 3onsultancy 3hange in $arnings through 3onsultancy in comparison to 7otal $arnings 3omparison of 3omposition of $arnings through 3onsultancy 5ole of .inance 0epartment in 3onsultancy 1obs at P'3*L Analysis of Revenue

! # 1& 11 12 12 13 13 13 14 14 1 1 1) 1! 1! 1# 1+ 1+ 2& 21 22 23 2462 2)62+ 3&633 3463) 3)63! 3!63# 3+ 3+ 4&641 41643

).1 ).2 ).3 ).4 ). ).) ).! ).# ! # +

.ive <ear "ummary 2perating 5esults .ive <ear "ummary .inancial Position ;alance "heet as at 31st march 2&11 Profit = Loss %ccount for the year ended 31st ,arch 2&11 'raphical 5epresentation of data 5atio %nalysis of 0ata 3omparative Position "tatement as at 31st ,arch 2&11 3omparative *ncome "tatement as at 31st ,arch 2&11 Conclusion Recommendations i!liography

4 4)64! 4#64+ &6 1 16 4 6 + )&6)1 )26)3 )46) )) )!

Introduction to the &opic

The Pro:ect Re;ort on the to;ic 8 Analysis of Revenue from Consultancy $ervices at

power Grid Corporation of India Limited ha# -een ;re;ared -+ a #tudent o PG>M
Pro%ra, at .a?ier In#titute o Socia* Ser?ice, a ter under%oin% 6 =eek# o Su,,er Trainin% a# a ;art o FINAN$E curricu*u,! The Intern#hi; ha# -een undertaken at8 P'(#RGRI) Corporation of India ltd! $or;orate centre ASAU>AMINIB P*ot no!/, Sector9/4 Gur%aon90//110 under the %uidance o r! *i+ash Chandra &ha+ur, -Manager- Finance & Accounts). Po=er Grid $or;oration o India *td! (PO7ERGRI>), IndiaB# ;rinci;a* ;*a+er in #lectric power transmission and a C"avratnaD co,;an+, =a# incor;orated on Octo-er /3, 0464 a# a Pu-*ic (i,ited $o,;an+, =ho**+ o=ned -+ the Go?ern,ent o India! It ha# -een carr+in% out it# re#;on#i-i*itie# e icient*+ in the con#truction, o;eration and ,aintenance o inter9#tate tran#,i##ion #+#te,# and o;eration o Re%iona* Po=er Grid#! It ha# -een noti ied a# the $entra* Tran#,i##ion Uti*it+ ($TU) o the countr+! Ee#ide# -ein% a ,ono;o*+ in the tran#,i##ion #ector it a*#o ha# eFtended it# o;eration# in the te*eco, -u#ine## -+ *a+in% o?erhead o;tic i-re net=ork o /G111 k,# (a# on Ma+ /10/) or te*eco, connecti?it+ to a** ,a:or to=n# ' citie#! The net=ork *ea#e# -and=idth to c*ient# *ike Eharat Sanchar Ni%a,, "ide#h Sanchar Ni%a,, Tata Te*e#er?ice#, Re*iance co,,unication# and Eharti Airte*! 7ith a net =orth o R#!/03G0!3H (FI /101900) the inancia* ;er or,ance o PO7ERGRI> ha# -een i,;ro?in% con#i#tent*+ ,ain*+ on account o co,,i##ionin% o ne= ;ro:ect# o?er the +ear#! PO7ERGRI> continue# to %i?e ,a:or thru#t to R'> acti?itie# and #ea,*e## inte%ration o ne= techno*o%ie# to achie?e #u#taina-*e %ro=th and to i,;ro?e <ua*it+ o ;o=er #u;;*+ =hi*e o;ti,i@in% u;on the co#t o de*i?ered ;o=er! The $o,;an+ ha# undertaken #e?era* techno*o%ica* inno?ation# ai,ed at con#er?in% Ri%ht9o 97a+ (RO7), ,ini,i@in% i,;act on natura* re#ource# ' hu,an ha-itat and co#t e ecti?ene## in e?acuation o ;o=er ro, the uture %eneration ;ro:ect#! The $o,;an+ ha# -een continuou#*+ u;%radin% and u;9ratin% it# eFi#tin% tran#,i##ion *ine# to ,eet the #hort9ter, re<uire,ent#! Thi# ;ro:ect ocu#e# on the Re?enue ana*+#i# o the or%ani@ation and ,ain*+ takin% into account the $on#u*tanc+ Ser?ice! Po=er Grid $or;oration ha# di?er#i ied into con#u*tanc+ #ector #ince 044G! U#in% it# eF;erti#e in the ener%+ #ector, the co,;an+ in recent ti,e# ha# not on*+ ac<uired ,a:or nationa* ;ro:ect# -ut i# a*#o ;ro?idin% con#u*tanc+ to other orei%n countrie#! Since the co,;an+ ha# ?entured into thi# #ector #ince a decade, thi# ;art o the o;eration i# o ;ri,e ocu# and there ,a+ -e chance# that the co,;an+ i,;ro?e# into thi# and %enerated hi%her re?enue! A;art ro, ;ri,ari*+ ocu#in% on $on#u*tanc+ #er?ice and re?enue, the ;ro:ect a*#o ana*+#e# the tota* o;erationa* inco,e o the or%ani@ation, =ith the ;ri,e ,oti?e to detect area# that can he*; the or%ani@ation increa#e it# ;ro ita-*e inco,e!

To re,ain a inancia**+ ;ro%re##i?e or%ani@ation in e,er%in% ,arket condition#, PO7ERGRI> i# takin% a** ;o##i-*e #te;# to i,;ro?e it# inancia* #tren%th -+ takin% u; other kind o #+ner%etic -u#ine## #uch a# con#u*tanc+ a##i%n,ent# at Nationa* and Internationa* *e?e* in tran#,i##ion, di#tri-ution, te*eco, etc! Ea#ed on it# in9hou#e eF;erti#e in ?ariou# acet# o tran#,i##ion and te*eco, #ector#, PO7ERGRI> ha# -een o erin% con#u*tanc+ #er?ice#! Ee#ide# ?ariou# do,e#tic a##i%n,ent#, the $o,;an+ i# takin% keen intere#t in de?e*o;,ent o tran#,i##ion #+#te, in the nei%h-orin% countrie# ?i@! Ehutan, Ne;a*, A %hani#tan and Sri (anka!

Structure of Power sector

In >ece,-er 04G1 a-out 53J o the in#ta**ed ca;acit+ in the Uti*itie# =a# in the ;ri?ate #ector and a-out 3HJ =a# in the ;u-*ic #ector! The Indu#tria* Po*ic+ Re#o*ution o 04G5 en?i#a%ed the %eneration, tran#,i##ion and di#tri-ution o ;o=er a*,o#t eFc*u#i?e*+ in the ;u-*ic #ector! A# a re#u*t o thi# Re#o*ution and aci*itated -+ the E*ectricit+ (Su;;*+) Act, 0426, the e*ectricit+ indu#tr+ de?e*o;ed ra;id*+ in the State Sector! &he #lectricity -$upply. Act, /012, ;ro?ide# an e*a-orate in#titutiona* ra,e =ork and inancin% nor,# o the ;er or,ance o the e*ectricit+ indu#tr+ in the countr+! The Act en?i#a%ed creation o $tate #lectricity 3oards -$#3s. or ;*annin% and i,;*e,entin% the ;o=er de?e*o;,ent ;ro%ra,,er#B in their re#;ecti?e State#! The Act a*#o ;ro?ided or creation o centra* %eneration co,;anie# or #ettin% u; and o;eratin% %eneratin% aci*itie# in the $entra* Sector! The Central #lectricity Authority con#tituted under the Act i# re#;on#i-*e or ;o=er ;*annin% at the nationa* *e?e*! In addition the E*ectricit+ (Su;;*+) Act a*#o a**o=ed ro, the -e%innin% the ;ri?ate *icen#ee# to di#tri-ute andKor %enerate e*ectricit+ in the #;eci ied area# de#i%nated -+ the concerned State Go?ern,entKSEE! >urin% the ;o#t inde;endence ;eriod, the ?ariou# State# ;*a+ed a ;redo,inant ro*e in the ;o=er de?e*o;,ent! Mo#t o the State# ha?e e#ta-*i#hed State E*ectricit+ Eoard#! In #o,e o the#e State# #e;arate cor;oration# ha?e a*#o -een e#ta-*i#hed to in#ta** and o;erate %eneration aci*itie#! In the re#t o the #,a**er State# and UT# the ;o=er #+#te,# are ,ana%ed and o;erated -+ the re#;ecti?e e*ectricit+ de;art,ent#! In a e= State# ;ri?ate *icen#e# are a*#o o;eratin% in certain ur-an area#! Fro,, the Fi th P*an on=ard# i!e! 04H29H4, the Go?ern,ent o India %ot it#e* in?o*?ed in a -i% =a+ in the %eneration and -u*k tran#,i##ion o ;o=er to #u;;*e,ent the e ort# at the State *e?e* and took u;on it#e* the re#;on#i-i*it+ o #ettin% u; *ar%e ;o=er ;ro:ect# to de?e*o; the coa* and h+droe*ectric re#ource# in the countr+ a# a #u;;*e,entar+ e ort in ,eetin% the countr+B# ;o=er re<uire,ent#! The "ational thermal Power Corporation -"&PC. and "ational %ydro4electric Power Corporation -"%PC. =ere #et u; or the#e ;ur;o#e# in 04HG!

"orth4#astern #lectric Power Corporation -"##PC'. =a# #et u; in 04H5 to i,;*e,ent the re%iona* ;o=er ;ro:ect# in the North9Ea#t! Su-#e<uent*+ t=o ,ore ;o=er %eneration cor;oration# =ere #et u; in 0466 ?i@! &ehri %ydro )evelopment Corporation -&%)C. and "athpa Jha+ri Power Corporation -"JPC.! CTo con#truct, o;erate and ,aintain the inter9State and interre%iona* tran#,i##ion #+#te,# the "ational Power &ransmission Corporation -"P&C. =a# #et u; in 0464! The cor;oration =a# rena,ed a# P'(#R GRI) in 044/D!

&he policy of liberali5ation the Government of India announced in /00/ and con#e<uent a,end,ent# in E*ectricit+ (Su;;*+) Act ha?e o;ened ne= ?i#ta# to in?o*?e ;ri?ate e ort# and in?e#t,ent# in e*ectricit+ indu#tr+! $on#idera-*e e,;ha#i# ha# -een ;*aced on attractin% ;ri?ate in?e#t,ent and the major policy changes ha?e -een announced -+ the Go?ern,ent in thi# re%ard =hich are enu,erated -e*o=8 &he #lectricity -$upply. Act, /012 was amended in /00/ to ;ro?ide or creation o ;ri?ate %eneratin% co,;anie# or #ettin% u; ;o=er %eneratin% aci*itie# and #e**in% the ;o=er in -u*k to the %rid or other ;er#on#! Financia* En?iron,ent or ;ri?ate #ector unit# ,odi ied to a**o= *i-era* ca;ita* #tructurin% and an attracti?e return on in?e#t,ent! 6p to hundred percent -/778. forei9n e:uity participation can -e ;er,itted or ;ro:ect# #et u; -+ orei%n ;ri?ate in?e#tor# in the Indian E*ectricit+ Sector! Administrative ; Le9al environment modified to #i,;*i + the c*earance# o the ;ro:ect#! Po*ic+ %uide*ine# or ;ri?ate #ector ;artici;ation in the reno?ation and ,oderni@ation o ;o=er ;*an in 044G! In 044G, the ;o*ic+ or e9a power pro<ects of capacity /777 ( or more and #u;;*+in% ;o=er to ,ore than one #tate introduced! The Me%a ;ro:ect# to -e #et u; in the re%ion# ha?in% coa* and h+de* ;otentia* or in the coa#ta* re%ion# -a#ed on i,;orted ue*! The Me%a ;o*ic+ ha# #ince -een re ined and Po=er Tradin% $or;oration (PT$) incor;orated recent*+ to ;ro,ote and ,onitor the Me%a Po=er Pro:ect#! PT$ =ou*d ;urcha#e ;o=er ro, the Me%a Po=er Pro:ect# and #e** it to the SEEB#! In 044G GOI (Go?ern,ent O India) ca,e out =ith li:uid fuel policy permittin9 li:uid fuel based power plants to achie?e the <uick ca;acit+ addition #o a# to a?ert a #e?ere ;o=er cri#i#! (i<uid ue* *inka%e# (Na;htha) =ere a;;ro?ed or a-out 0/111 M7 Po=er ;*ant ca;acitie#! GOI ha# ;ro,u*%ated E*ectricit+ Re%u*ator+ $o,,i##ion Act, 0446 or #ettin% u; o Inde;endent Re%u*ator+ -odie# -oth at the $entra* *e?e* and at the State *e?e* ?i@! &he Central #lectricity Re9ulatory Commission -C#RC. and the $tate #lectricity Re9ulatory Commission -$#RCs.

AT the $entra* and the State *e?e*# re#;ecti?e*+! The main function o the $ER$ i#8

1&

0! To re%u*ate the tari o %eneratin% co,;anie# o=ned or contro**ed -+ the $entra* Go?ern,ent, /! To re%u*ate the tari o %eneratin% co,;anie#, other than tho#e o=ned or contro**ed -+ the $entra* Go?ern,ent, i #uch %eneratin% co,;anie# enter into or other=i#e ha?e a co,;o#ite #che,e or %eneration and 3! Sa*e o e*ectricit+ in ,ore than one State to re%u*ate the inter9#tate tran#,i##ion o ener%+ inc*udin% tari o the tran#,i##ion uti*itie#, 2! To re%u*ate inter9#tate -u*k #a*e o ;o=er and to aid ' ad?i#e the $entra* Go?ern,ent in or,u*ation o tari ;o*ic+!

The $ER$ =a# con#tituted on /2!H!0446! The main functions o the $ER$ are8 0! To deter,ine the tari or e*ectricit+ =ho*e#a*e -u*k, %rid or retai*,

/! To deter,ine the tari ;a+a-*e or u#e -+ the tran#,i##ion aci*itie# to re%u*ate ;o=er ;urcha#e and ;rocure,ent ;roce## o tran#,i##ion uti*itie# and di#tri-ution uti*itie#, 3! To ;ro,ote co,;etition, e icienc+ and econo,+ in the acti?itie# o the e*ectricit+ indu#trie# etc! Su-#e<uent*+, a# and =hen each State Go?ern,ent noti ie#, other re%u*ator+ unction# =ou*d a*#o -e a##i%ned to SER$#!

&he #lectricity Laws -Amendment. Act, /002 ;a##ed =ith a ?ie= to ,ake tran#,i##ion a# a #e;arate acti?it+ or in?itin% %reater ;artici;ation in in?e#t,ent ro, ;u-*ic and ;ri?ate #ector#! The participation by private sector in the area of transmission is proposed to be limited to construction and maintenance of transmission lines or o;eration under the #u;er?i#ion and contro* o $entra* Tran#,i##ion Uti*it+ ($TU)KState Tran#,i##ion Uti*it+ (STU)! On #e*ection o the ;ri?ate co,;an+, the $TUKSTU =ou*d reco,,end to the $ER$KSER$ or i##ue o tran#,i##ion *icen#e to the ;ri?ate co,;an+! The E*ectricit+ (a=# (A,end,ent) Act, 0446 ;ro?ide# or creation o $entra* and State Tran#,i##ion uti*itie#! The function of the Central &ransmission 6tility #ha** -e to undertake tran#,i##ion o ener%+ throu%h inter9#tate tran#,i##ion #+#te, and di#char%e a** unction# o ;*annin% and coordination re*atin% to inter9#tate tran#,i##ion #+#te, =ith State Tran#,i##ion Uti*itie#, $entra* Go?ern,ent, State Go?ern,ent#, %eneratin% co,;anie# etc!

Electricity act 2003:

11

Enacted in +ear /113, it ha# created a ne= ;aradi%, or the de?e*o;,ent o ;o=er #ector in India! It ha# a-o*i#hed ,ono;o*+ o the State E*ectricit+ Eoard created under the E*ectricit+ (Su;;*+) Act 0426 and ha# created a ne= co,;etiti?e ra,e=ork or the de?e*o;,ent o the ;o=er #ector in India =ith ocu# on the con#u,er# and #a e%uardin% their intere#t# -+ inde;endent Re%u*ator+ $o,,i##ion#! The Act ha# e*i,inatedKreduced entr+ -arrier# in the entire chain o the e*ectricit+ #u;;*+ -u#ine##! It ,ark# the cu*,ination o the ;roce## -e%innin% in the ,id ninetie# o State# enactin% their o=n Re or, Act# and the enact,ent o the E*ectricit+ Re%u*ator+ $o,,i##ion Act o 0446 =hich -rou%ht into ;*ace the $entra* E*ectricit+ Re%u*ator+ $o,,i##ion and authori@ed the #tate to create Re%u*ator+ $o,,i##ion# at State *e?e*, i the+ =i#hed to do #o!

$alient =eatures of the #lectricity Act >77? The AActB ;ro?ide# or8 a) Generation o e*ectricit+ i# ree ro, *icen#in%! Impact@ More indu#trie# =i** -e encoura%ed to #etu; ca;ti?e ;o=er ;*ant#! A*#o, the ti,e re<uired or #ettin% u; a ;o=er ;*antL ro, the ;ro;o#a* to the co,;*etion #ta%eL=i** -e #hortened con#idera-*+! -) $a;ti?e %eneration ree*+ ;er,itted, or -oth or a one9to9one -a#i#, a# #,a** a# or a %rou; ca;ti?e -a#i# Impact@ $a;ti?e Po=er P*ant# ($PP#) =i** -e a**o=ed to u#e ;o=er not on*+ or ca;ti?e u#e -ut a*#o to #e** to other *icen#ee#! Thi# =i** a**o= ca;ti?e %enerator# to #e** eFce## ;o=er at ,ore re,unerati?e ;rice# than -e ore, and thu# rai#e the ca;acit+ uti*i@ation to eFi#tin% ;*ant# and a*#o encoura%e ne= ca;acit+ addition! c) O;en acce## or ca;ti?e u#e on ;a+,ent o =hee*in% char%e#! Impact@ Thi# =i** a**o= o;en acce## to tran#,i##ion *ine#, thu# a**o=in% the, to -+;a## the SEE# and #e** ;o=er direct*+ to the di#tri-ution and tradin% *icen#ee#! d) $on#u,er# =ou*d ha?e a ri%ht or non9di#cri,inator+ o;en acce## to tran#,i##ionKdi#tri-ution net=ork #u-:ect to ;a+,ent o #urchar%e# to ,eet current *e?e* o cro## #u-#id+ a# =e** a# the a;;*ica-*e =hee*in% char%e#! Impact@ 7ith thi# reedo, to -u+ and #e** ;o=er, initia**+ in the =ho*e#a*e ,arket and e?entua**+ in the retai* ,arket, the end9u#er =i** -ene it -oth in ter,# o choice o #u;;*ier and re*ia-i*it+ o #u;;*+! e) Stand a*one GenerationK>i#tri-ution o E*ectricit+ or Rura* area# Per,itted! Impact@ Thi# =i** a**o= ;otentia* ;ri?ate entrant# to enter the di#tri-ution -u#ine##, =hi*e ;uttin% ;re##ure on incu,-ent# to enhance ;er or,ance and cu#to,er #er?ice! ) Mandator+ ;urcha#e o ;o=er ro, rene=a-*e #ource# -+ the di#tri-ution *icen#ee! Sin%*e Eu+er ,ode* i# co,;*ete*+ a-o*i#hed!

12

Impact@ Thi# =i** -rin% co,;etition in the indu#tr+! $o,;etition a,on% ;*a+er# =i** a*#o enhance e icienc+ and *ed to -etter cu#to,er #er?ice #tandard#!

Problems & Issues Concerned with Power Sector

The ,o#t i,;ortant i##ue# -ein% aced in the ;o=er #ector are the irrationa* and unre,unerati?e tari #tructure! Po=er Su;;*+ to a%ricu*ture and do,e#tic con#u,er# i# hea?i*+ #u-#idi@ed! On*+ a ;art o thi# #u-#id+ i# reco?ered -+ SEE# throu%h cro## #u-#idi@ation o tari ro, co,,ercia* and indu#tria* con#u,er#! The SEE#, in the ;roce##, ha?e -een incurrin% hea?+ *o##e#! I the SEE# =ere to continue to o;erate on the #a,e *ine#, their interna* re#ource# %eneration durin% the neFt ten +ear# =i** -e ne%ati?e, -ein% o the order o R#!(9) HH,111crore! Thi# rai#e# #eriou# dou-t# a-out the a-i*it+ o the State# to contri-ute their #hare to ca;acit+ addition durin% the Ninth P*an and therea ter! Thi# hi%h*i%ht# the i,;ortance o initiatin% ;o=er #ector re or,# at the ear*ie#t and the need or tari rationa*i@ation!

Second*+, the initia* re#;on#e o the do,e#tic and orei%n in?e#tor# to the ;ri?ate ;artici;ation in ;o=er #ector! There ha?e -een de*a+# re*atin% to ina*i@ation o ;o=er ;urcha#e a%ree,ent#, %uarantee# and counter9%uarantee#, en?iron,enta* c*earance#, ,atchin% tran#,i##ion net=ork# and *e%a**+ en orcea-*e contract# or ue* #u;;*ie#! Uncertaintie# a-out ue* #u;;*+ arran%e,ent# and the di icu*t+ in ne%otiatin% arran%e,ent# =ith ;u-*ic #ector ue* #u;;*ier#, =hich concern ;ena*tie# or non9;er or,ance, i# another area o ;otentia* di icu*t+! It i# i,;ortant to re#o*?e the#e di icu*tie# and e?o*?e a ra,e=ork o ;o*ic+ =hich can en#ure a rea#ona-*e di#tri-ution o ri#k# =hich ,ake ;o=er #ector ;ro:ect# inancia**+ attracti?e

lobali!ation of the Sector

Po#t 0440 ,an+ internationa* ;*a+er# e?inced intere#t in the Indian ;o=er #ector! Oi* and %a# %iant# eF;and into e*ectric ;o=er, rene=a-*e, coa* and ener%+ #er?ice#, -eco,in% u**9#ca*e ener%+ ,u*tinationa*#! The+ ado;t %*o-a* #trate%ie# and eFtend their acti?itie# and in?e#t,ent# into a** ;art# o the =or*d! GOI ;ro?ided #e?era* #o;# to attract the internationa* und# and that ,ade ,an+ internationa* ;*a+er# to enter into #o,e or, o re*ation#hi; =ith the *ar%e Indian co,;anie# to ?enture into the ;o=er #ector!

Players of the Sector

The Indian $on#titution inc*ude# the ;o=er indu#tr+ on the $oncurrent (i#t 9 it i# the co,-ined re#;on#i-i*it+ o -oth the centra* and #tate %o?ern,ent#! The ESA a**o=# the #ettin% u; o three t+;e# o uti*itie#8

13

$tate #lectricity 3oards

The SEE# %enerate#, #u;;*+, and di#tri-ute e*ectricit+ =ithin a #tate! The ESA a*#o ;er,it# the, to undertake acti?itie# re*ated to the e*ectrica* e<ui;,ent -u#ine## #uch a# *ea#in% out it# %eneratin% #tation#, conductin% in?e#ti%ation# and %rantin% *oan# to *icen#ee#! An SEE en:o+# a** the ;o=er# and o-*i%ation# o *icen#ee# under the Indian E*ectricit+ Act o 0401!

A# ,entioned ear*ier, SEE# =a# or,ed under ESA and i# =ho**+ o=ned -+ their #tate %o?ern,ent#! There ore, #tate %o?ern,ent# ;*a+ a ;er?a#i?e ro*e in SEE o;eration#, inc*udin% the a;;oint,ent o -oard ,e,-er#, a;;ro?a* o ca;ita* eF;enditure# and inancin%, tari # #ettin%, #u-#idie# ;a+a-*e, and o?er#eein% ;ri?ate #ector ;artici;ation! SEE# i# in?o*?ed in a** a#;ect# o e*ectricit+ ;roduction (%eneration, tran#,i##ion and di#tri-ution) eFce;t ue* #u;;*+ an account or a;;roFi,ate*+ 5GJ o the ;o=er %enerated in India!

Central Generatin9 Companies

Unti* 0440, the ESA a**o=ed on*+ centra* and #tate %o?ern,ent# to e#ta-*i#h %eneratin% co,;anie#! Generatin% co,;anie# are re#;on#i-*e or #u;;*+in% ;o=er to the %rid =ithout the #;eci ic re#;on#i-i*it+ o retai* di#tri-ution! In thi# cate%or+ the ,a:or ;*a+er# are8 NTP$, NHP$, and PG$I! Since 0440, ho=e?er, a %eneratin% co,;an+ ,ere*+ need# to -e re%i#tered under the $o,;anie# Act, 04G5! Inde;endent ;o=er ;roducer# (IPP#) no= a** under thi# cate%or+!

"icensees
(icen#ee# are ;ri?ate #ector uti*itie# *icen#ed -+ the %o?ern,ent to %enerate andKor #u;;*+ ;o=er =ithin a #;eci ied area! (icen#ee# ,a+ -e o three t+;e#8 Po=er %eneration and #u;;*+ *icen#ee#, ;o=er %eneration *icen#ee# and ;o=er di#tri-ution *icen#ee#!

#nterrelationship between players

Un*ike other indu#trie#, the ;er or,ance o the ;o=er #ector ;*a+er# i# *inked to each other! Thi# inter9 de;endence can -e eF;*ained -+ takin% the he*; o the A"a*ue $hain $once;tB! The indu#tr+ ?a*ue chain and the ;*a+er# acro## the chain are #ho=n in the eFhi-it8

14

$ar%et Shares of the major players and &&#

State #ector8 State E*ectricit+ Eoard# $entra* Generatin% $o,;anie#8 $entra* E*ectricit+ Eoard (icen#ee#8 Pri?ate Sector 8 G/!GJ Govt. controlled 8 32!1J 8 03!GJ

The a-o?e data c*ear*+ #ho=# that the ;o=er #ector to a %reat eFtent i# do,inated -+ the %o?ern,ent contro**ed #ector# and or%ani@ation#

Nationa* Grid
#ntroduction
For,ation o a #tron% Nationa* Po=er Grid ha# -een reco%ni@ed a# a *a%#hi; endea?or to #teer the de?e*o;,ent o Po=er S+#te, on ;*anned ;ath *eadin% to co#t e ecti?e u* i**,ent o the o-:ecti?e o AE*ectricit+ to A**B at a orda-*e ;rice#! A #tron% A** India Grid =ou*d ena-*e eF;*oitation o une?en*+ di#tri-uted %eneration re#ource# in the countr+ to their o;ti,u, ;otentia* -+ ;ro?idin% enhanced ,ar%in# in inter9re%iona* tran#,i##ion #+#te,! The#e ,ar%in#, to%ether =ith o;en acce## in tran#,i##ion, =ou*d aci*itate increa#ed rea* ti,e tradin% in e*ectricit+ *eadin% to ,arket deter,ined %eneration di#;atche# there-+ re#u*tin% in #u;;*+ at reduced ;rice# to the di#tri-ution uti*itie# and u*ti,ate*+ to con#u,er# -ene it!

'ormation of (ational rid

1

The Ea#tern Re%ion and the North9Ea#tern Re%ion ha?e -een o;eratin% in ;ara**e* #ince 044/ -ein% connected -+ a //1 k" dou-*e circuit tran#,i##ion *ine and ,ore recent*+ -+ a 211 k" >K$ tran#,i##ion *ine! 7e#tern Re%ion =a# interconnected to ER9NER #+#te, #+nchronou#*+ throu%h 211k" Rourke*a9Rai;ur >K$ *ine in /113, o;erationa* #in%# the $entra* India #+#te, con#i#tin% o ER9 NER97R! 7ith in#ta**ation o T$S$, the tran#,i##ion ca;acit+ o Rourke*a9Rai;ur 211k" >K$ *ine =a# increa#ed to 0211M7! The Northern re%ion, had a#+nchronou# radia* ,ode and H">$ -ack9to9-ack inter9re%iona* tran#,i##ion connecti?it+ o 511 M7 =ith the Ea#tern re%ion, and 0111 M7 =ith the 7e#tern re%ion, =a# a*#o #+nchronou#*+ inte%rated =ith the ERKNERK7R #+#te, =ith co,,i##ionin% o the 211k" Mu@a ar;ur9Gorakh;ur *ine on /5th Au%u#t /115! The Mu@a ar;ur & Gorakh;ur 211k" >K$ <uad *ine =ith iFed #erie# ca;acitor and T$S$ ha# added /111 M7 to the ER9NR inter9re%iona* tran#,i##ion ca;acit+! To=ard# the Southern re%ion, a#+nchronou# interconnection# o 0H11 M7 -et=een SR and 7R and 511 M7 -et=een SR and ER ;ro?idin% a tota* o /311 M7 o interre%iona* tran#,i##ion ca;acit+ =a# eFi#tin% at the -e%innin% o the . ;*an! 7ith /111 M7 Ta*cher9)o*ar H">$ Ei;o*e *ine, and #econd G11 M7 H">$ -ack9to -ack ,odu*e at Ga@u=aka, -oth -et=een SR and ER, the tota* inter9re%iona* ca;acit+ connectin% to SR ha# increa#ed to 2611 M7! A# o no= a** inter9re%iona* tran#,i##ion *ink# o the Southern re%ion are either a#+nchronou# radia* ,ode *ine# or H">$ inter9connection#! S+nchronou# inte%ration o the Southern re%ion =ith re#t o Indian %rid =ou*d -e ir,ed u; a ter ha?in% eF;erience o #+nchronou# o;eration o NRMERMNERM7R #+#te,! One ;oint A$ interconnection throu%h Par*i & Raichur 211k? *ink #u;;*e,ented =ith H">$ *ink# ha# -een ;ro;o#ed or thi#! The tar%et i# to ir, u; thi# #che,e in the ir#t +ear o 00th P*an #o that #+nchronou# interconnection o A** India #+#te, cou*d -e rea*i@ed =ithin the 00th P*an ;eriod!

)evelopment of (ational rid

A# on toda+, the inter9re%iona* tran#,i##ion ca;acit+ o 00,2G1 M7 i# eFi#tin% and inter9re%iona* ener%+ eFchan%e# o ,ore than 0/ -i**ion k7h in a +ear thu# contri-utin% to %reater uti*i@ation o %eneration ca;acit+! The ;ro%ra, =a# to achie?e inter9re%iona* ca;acit+ o 0GHG1 M7 -+ the end o 01th P*an and a-out 3H,0G1 M7 -+ the end o 00th P*an! Additiona* 3111 M7 throu%h creation o Si*i%uri H">$ ter,ina* on Ei#h=anath $hari+a*i & A%ra 611k" H">$ -i9;o*e *ine i# a*#o -ein% con#idered durin% 00th P*an it#e* ! Thi# =ou*d increa#e the tar%et o inter9re%iona* ca;acit+ -+ /10090/ ro, 3H0G1 M7 to 210G1 M7!

)istribution of Power Sector

The Po=er Sector, on the -a#i# o unction can -e di#tri-uted into 3 head#, i!e!N Generation, &ransmission ; )istribution

eneration
1)

Electricity has been generated or the !ur!ose o !owering human technologies or at least "#$ years rom %arious sources o energy. &he irst !ower !lant was run on wood' while today we rely mainly on coal' nuclear' natural gas' hydroelectric' and !etroleum !ower and a small amount rom solar energy' wind generators and geothermal sources.

Transmission
E*ectric ;o=er tran#,i##ion, a ;roce## in the de*i?er+ o e*ectricit+ to con#u,er#, i# the -u*k tran# er o e*ectrica* ;o=er! T+;ica**+, ;o=er tran#,i##ion i# -et=een the ;o=er ;*ant and a #u-#tation near a ;o;u*ated area! >ue to the *ar%e a,ount o ;o=er in?o*?ed, tran#,i##ion nor,a**+ take# ;*ace at hi%h ?o*ta%e (001 k" or a-o?e)! E*ectricit+ i# u#ua**+ tran#,itted o?er *on% di#tance throu%h o?erhead ;o=er tran#,i##ion *ine#! Under%round ;o=er tran#,i##ion i# u#ed on*+ in den#e*+ ;o;u*ated area# due to it# hi%h co#t o in#ta**ation and ,aintenance, and -ecau#e the hi%h reacti?e ;o=er %ain ;roduce# *ar%e char%in% current# and di icu*tie# in ?o*ta%e ,ana%e,ent!

)istribution
E*ectricit+ di#tri-ution i# the ;enu*ti,ate #ta%e in the de*i?er+ (-e ore retai*) o e*ectricit+ to end u#er#! It i# %enera**+ con#idered to inc*ude ,ediu,9?o*ta%e (*e## than 001 k") ;o=er *ine#, e*ectrica* #u-#tation# and ;o*e9,ounted tran# or,er#, *o=9?o*ta%e (*e## than 0111 ") di#tri-ution =irin% and #o,eti,e# e*ectricit+ ,eter#!

R#$#ARC%
*ustification of the Study:

#&%')'L'GA

Inco,e i# the ke+ or an+ Or%ani@ation! Inco,e a# =e %enera**+ re er ,ean# the Re?enue %enerated -+ the or%ani@ation! In -u#ine##, re?enue i# inco,e that a co,;an+ recei?e# ro, it# nor,a* -u#ine## acti?itie#, u#ua**+ ro, the #a*e o %ood# and #er?ice# to cu#to,er#! In ,an+ ca#e# re?enue i# re erred to a# turno?er! For a co,;an+ *ike Po=er Grid $or;oration o India (i,ited, Re?enue Generation ha# ne?er -een a ;ro-*e,! 7ith it# eF;erti#e in the ie*d o Ener%+ Tran#,i##ion, it ;ractica**+ ha# no co,;etitor in India! Eut o?er the +ear#, the co,;an+ ha# *ooked at o;;ortunitie# and di?er#i ied into other or,# o O;eration# that ha?e he*;ed the co,;an+ to increa#e it# Inco,e ro, O;eration#! The co,;an+ ha# ,o?ed into #er?ice# *ike Te*eco, and $on#u*tanc+ o?er the +ear#, and u#ed it# eF;erti#e in tran#,i##ion to %enerated re?enue out o the ne= #er?ice#!

1!

The co,;an+ ha# di?er#i ied into $on#u*tanc+ #er?ice o?er a decade no=! Mo?in% into the con#u*tanc+ #er?ice =a# ,ain*+ a deci#ion -acked -+ it# eF;erti#e in the tran#,i##ion #er?ice o?er the +ear#! The co,;an+ i# a*#o #ucce## u**+ de*i?erin% ?a*ue to it# c*ient# in the con#u*tanc+ -u#ine## and a*#o %eneratin% %ood re?enue out o it! Eut ana*+@in% the re?enue %eneration out o thi# ne= di?er#i ication #ha** -e a %ood ta#k! Re?enue i# a crucia* ;art o the inancia* #tate,ent ana*+#i#! A co,;an+B# ;er or,ance i# ,ea#ured to the eFtent to =hich it# a##et in *o=# (re?enue) co,;are =ith it# a##et out *o=# (eF;en#e#)! Net Inco,e i# the re#u*t o thi# e<uation, -ut re?enue t+;ica**+ en:o+# e<ua* attention durin% a #tandard earnin%# ca**! I a co,;an+ di#;*a+# #o*id Cto;9*ine %ro=thD, ana*+#t# cou*d ?ie= the ;eriodB# ;er or,ance a# ;o#iti?e e?en i earnin%# %ro=th or -otto, *ine %ro=th i# #ta%nant! $on?er#e*+, hi%h inco,e %ro=th =ou*d -e tainted i the co,;an+ ai*ed to ;roduce #i%ni icant re?enue %ro=th! $on#i#tent re?enue %ro=th, a# =e** a# inco,e %ro=th, i# con#idered e##entia* or a co,;an+B# ;u-*ic*+ traded #tock to -e attracti?e to in?e#tor#! Re?enue i# u#ed a# an indication o earnin%# <ua*it+! There are #e?era* inancia* ratio# attached to it! Man+ other e#ti,ation# and data i%ure# are decided u;on -+ the co,;an+ on the -a#i# o re?enue! The to;ic CAna*+#i# o $on#u*tanc+ Ser?ice and Re?enueD, ocu#e# on ana*+#i# o Re?enue %eneration - the co,;an+ o?er *a#t G (Fi?e) +ear#, and a*#o ana*+@in% the i,;act o the #a,e o?er the %ro=th and ;er or,ance o the co,;an+! At the #a,e ti,e, the ;ro:ect a*#o #;eci ica**+ ocu#e# on the $on#u*tanc+ Ser?ice and Re?enue %enerated out o it! A keen ana*+#i# o the di erent t+;e o $on#u*tanc+ Ser?ice ;ro?ided ha# -een done and re?enue %enerated o?er the +ear# ha# -een ana*+@ed!

Sources of #nformation:
&he to!ic o study or the !ro(ect is such that the data needs to be %ery s!eci ic' accurate and u! to date. &he analysis' inter!retation and conclusion o the !ro(ect shall entirely de!end u!on the data collected. )ee!ing this into mind the data has been collected rom sources that are %ery trust worthy and accurate.

The ;ro:ect re<uired -oth Oua*itati?e a# =e** a# Ouantitati?e data! Oua*itati?e data =a# re<uired =ith re%ard# to #tud+ o $on#u*tanc+ Ser?ice! Thi# a*#o inc*uded #o,e a,ount o Ouantitati?e data, -ut *ar%e ;art o <uantitati?e data =a# co?ered =ith the Re?enue ana*+#i# ;art o the ;ro:ect! Thu# the ;ro:ect in or,ation co**ection =a# carried out -+ a ,iF o EF;*orator+ Re#earch and >e#cri;ti?e Re#earch Method! EF;*orator+ Re#earch he*;ed to under#tand the area o #tud+ and to kno= a-out it -etter! The di erent #er?ice# that add u; to O;eration# o the co,;an+ =ere #tudied! >urin% thi# ;ri,e ocu# =a# %i?en to $on#u*tanc+ Ser?ice! Thi# -a#ic and ;ri,ar+ #tud+ =a# done =ith the he*; o ?ariou# in9hou#e artic*e# and ,a%a@ine# o the co,;an+, ound in the $o,;an+ (i-rar+! Once thi# =a# done, the #econd ;art
1#

=a# to #tud+ a-out $on#u*tanc+ Ser?ice# and it# ?ariou# t+;e#! Thi# =a# done -+ #tud+in% ?ariou# >ra t Re;ort# and Tender Re;ort# that =ere #u-,itted -+ the co,;an+ or di erent t+;e# o $on#u*tanc+ Ser?ice =ith ?ariou# $ountrie# and State#! Thi# he*;ed to kno=, the di erent t+;e# o $on#u*tanc+ Ser?ice# the co,;an+ ;ro?ide# and the entire ;roce## o %ra--in% a tender! In the third ;ha#e, the >e#cri;ti?e Re#earch Method =a# u#ed to co**ect data and under#tand the =orkin% and ;er or,ance o the co,;an+! The data or the ;ro:ect =a# co**ected ro, ?ariou# Annua* Re;ort# o the co,;an+, Audit Re;ort# o ?ariou# +ear#, Ouarter*+ Per or,ance Re;ort# ;re;ared -+ de;art,ent o Finance! Thi# he*;ed u# co**ect data or the ;ro:ect ana*+#i#! The Source# o In or,ation Inc*ude89 6 6 6 "ariou# $on#u*tanc+ >ra t Re;ort# Audit Re;ort# o di erent Iear# Annua* Re;ort# o "ariou# Iear#

Scope of the Study:

The #co;e o Stud+ on the to;ic o the ;ro:ect CAna*+#i# o $on#u*tanc+ Ser?ice and Re?enueD i# ?er+ -road! Re?enue in it#e* i# a ?er+ hu%e and -road to;ic, =hich can -e ana*+@ed in ?ariou# =a+# and throu%h ?ariou# ,ethod#! It# ana*+#i# and Inter;retation cannot -e con ined to a #in%*e ,ethodK =a+! On the other hand, $on#u*tanc+ Ser?ice i# -ein% ;ro?ided -+ the co,;an+ to ?ariou# c*ient#! There are di erent t+;e# o $on#u*tanc+ Ser?ice that are ;ro?ided -+ the co,;an+ to it# c*ient#! Stud+in% and to Ana*+@e the #a,e i# a ta#k that i# ?er+ =ide and ti,e con#u,in%! The #tud+ can -e done thou%h ?ariou# #ource# and the #ource# are *ar%e in nu,-er! The ana*+#i# o the data can a*#o -e done =ith the he*; o ?ariou# too*# and di erent ,ethod#! Thu# it can -e #aid that the #co;e o #tud+ o the to;ic i# <uite hu%e and -road!

"imitations to the Study:

The to;ic o Stud+ i# hu%e and i# -ound to ?ariou# *i,itation#! Fir#t*+, it ha# ti,e con#traint! The ;ro:ect need# to -e co,;*ete in 6 =eek#, =hich i# #hort duration to #tud+ dee;*+ the ;er or,ance o a co,;an+ =hich ha# a turno?er in crore#! Second*+, another *i,itation o #tud+ i# the ree acce## to a** ;o##i-*e #ource# o data! A# Intern#, it i# ;ractica**+ i,;o##i-*e to %ain ree acce## to a** ;o##i-*e #ource# o in or,ation that can he*; u; #tud+ the ;ro:ect -etter and then ana*+@e the #a,e! Third*+, *i,itation a*#o *ie# in the act that the co,;an+ ha# Mono;o*+ in the ie*d o Tran#,i##ion and $on#u*tanc+ Ser?ice in India, due to it# eF;erti#e! >ue to thi#, it i# neFt to
1+

i,;o##i-*e to ind a co,;etitor o the co,;an+, =ho#e inancia* data can he*; u# ,ake a co,;ari#on -et=een the t=o co,;an+ ;er or,ance# and -etter ana*+@e the #a,e! (a#t*+, -ein% in the *earnin% ;ha#e, it cannot -e i%nored that there ,a+ -e ;er#;ecti?e# =hich ,a+ ha?e -een ,i##ed -+ ,e, =hi*e #tud+in% the to;ic and =orkin% on the ;ro:ect!

In#;ite o a** the#e *i,itation#, the -e#t e ort# ha?e -een ;ut in, #o that the data can -e co**ected accurate*+ and the -e#t ;o##i-*e ana*+#i# can -e done!

C' PA"A PR'=IL#

+n ,verview: Incor;orated in 0464 or tran#,ittin% -u*k ;o=er acro## the countr+ $entra* Tran#,i##ion Uti*it+ in India & Na?ratna PSU 7or*dB# *eadin% Tran#,i##ion Uti*it+ o EH"9A$ and H>"$ Tran#,i##ion *ine#9 6/,336 $)M o EH"9A$ and H>"$ #u-#tation#9 03GNo# A *i#ted co,;an+ in India =ith 54!2/J #hare# o=ned -+ the Go?ern,ent o India and re#t -+ Pu-*ic!
2&

$arrie# P211 Ei**ion Unit# o Po=er (PG0J o IndiaB# ;o=er %eneration & ;re#ent*+ around 611 Ei**ion Unit#) a# on 30#t Ma+ /10/! $on#i#tent*+ ,aintained tran#,i##ion Net=ork a?ai*a-i*it+ o o?er 44J A-out 0,611 k,# ok (MK9) 611k" H">$ #+#te, under i,;*e,entation 0/11 k" UH" A$ #+#te, under de?e*o;,ent! S,art Grid9 7ide Area Monitorin%, Ada;ti?e I#*andin%, "o*ta%e Securit+ A##e##,ent, >+na,ic Securit+ A##e##,ent under ;*annin%! GPSKGIS(G*o-a* Po#itionin%KIn or,ation S+#te,) -a#ed #ur?e+ techni<ue#! Auto,ation o Su- Station# Te*eco, Nationa* (on% >i#tance (N(>) o;erator ' Internet Ser?ice Pro?ider =ith a-out /G111 ), O;tica* Fi-re Net=ork >i?idend ;a+in% co,;an+ #ince 0443942 $on#i#tent*+ rated CEFce**entD -+ Go?ern,ent o India >o,inant (eader#hi; in E,er%in% Po=er Market EFi#tin% Eu#ine## o Tran#,i##ion, Grid Mana%e,ent, $on#u*tanc+, Te*eco,

.ompany &istory and #ncorporation:

Po=er Grid $or;oration o India *i,ited (PO7ERGRI>) =a# incor;orated on Octo-er /3, 0464 =ith an authori@ed #hare ca;ita* o /7,777 $rore a# a Pu-*ic (i,ited $o,;an+, =ho**+ o=ned -+ the Go?ern,ent o India! In 0461 the Ra:adh+ak#ha $o,,ittee on Po=er Sector Re or,# #u-,itted it# re;ort to the GoI #u%%e#tin% eFten#i?e re or,# in the Indian ;o=er #ector! Ea#ed on the reco,,endation# o the Ra:adh+ak#ha $o,,ittee, in 0460 the GoI took the ;o*ic+ deci#ion to or, a nationa* ;o=er %rid =hich =ou*d ;a?e the =a+ or the inte%rated o;eration o the centra* and re%iona* tran#,i##ion #+#te,#! Pur#uant to thi# deci#ion, to or, a nationa* ;o=er %rid, the co,;an+ =a# incor;orated in 0464 under the $o,;anie# Act, 04G5 a# CNationa* Po=er Tran#,i##ion $or;oration (i,ited! The na,e o the co,;an+ =a# chan%ed to it# ;re#ent na,e CPo=er Grid $or;oration o India (i,itedD on Octo-er /3, 044/ a ter a re#h certi icate o incor;oration -ein% i##ued! Thi# =a# done -ecau#e the a--re?iated or, o the co,;an+ na,e re#e,-*ed to that o NTP$ *i,ited! PO7ERGRI> #tarted unctionin% on ,ana%e,ent -a#i# =ith e ect ro, Au%u#t, 0440 and it took o?er tran#,i##ion a##et# ro, NTP$, NHP$, NEEP$O and other $entra*KJoint Sector Or%ani@ation# durin% 044/943 in a ;ha#ed ,anner! In addition to thi#, it a*#o took o?er the o;eration o eFi#tin% Re%iona* (oad >i#;atch $enter# ro, $EA, in a ;ha#ed ,anner, =hich ha#
21

-een u;%raded =ith State o 9the9art Uni ied (oad >i#;atch and $o,,unication (U(>$) #che,e#! Accordin% to it# ,andate, the $or;oration, a;art ro, ;ro?idin% tran#,i##ion #+#te, or e?acuation o centra* #ector ;o=er, i# a*#o re#;on#i-*e or E#ta-*i#h,ent and O;eration o Re%iona* and Nationa* Po=er Grid# to aci*itate tran# er o ;o=er =ithin and acro## the Re%ion# =ith Re*ia-i*it+, Securit+ and Econo,+ on #ound co,,ercia* ;rinci;*e#! Ea#ed on it# ;er or,ance PO7ERGRI> =a# reco%ni@ed a# a Mini9ratna cate%or+9I Pu-*ic Sector Undertakin% in Octo-er 0446 and con erred the #tatu# o B"avratnaB -+ the Go?ern,ent o India in Ma+ /116! PO7ERGRI>, a# the $entra* Tran#,i##ion Uti*it+ o the countr+, i# ;*a+in% a ,a:or ro*e in Indian Po=er Sector and i# a*#o ;ro?idin% O;en Acce## on it# inter9State tran#,i##ion #+#te,!

P,/E0 0#) 1 the .ompany:

PO7ERGRI> i# a CNa?ratnaD $o,;an+ or ,ore than our +ear# no=! The Na?ratna #tatu# ;ro?ide# the or%ani@ation =ith ;o=er# to undertake ne= tran#,i##ion ;ro:ect# o an+ a,ount =ithout Go?ern,ent a;;ro?a*! PO7ERGRI> i# a*#o entru#ted =ith ro*e o $entra* Tran#,i##ion Uti*it+ ($TU) -+ Go?ern,ent o India! In thi# ro*e, the co,;an+ o;erate# a# one o the chie a%encie# re#;on#i-*e or the ;*annin% and de?e*o;,ent o the countr+B# nation=ide ;o=er tran#,i##ion net=ork, inc*udin% inter#tate net=ork#! A# $TU, the co,;an+ i# re<uired to8 (a) Undertake tran#,i##ion o e*ectricit+ throu%h the inner #tate tran#,i##ion #+#te,N

(-) >i#char%e a** unction# o ;*annin% and co9ordination re*atin% to inter9#tate tran#,i##ion #+#te,, =ith certain #;eci ied authoritie# and #takeho*der#N

(c) en#ure de?e*o;,ent o an e icient, coordinated and econo,ica* #+#te, o inter9#tate tran#,i##ion *ine# or #,ooth *o= o e*ectricit+ ro, %eneratin% #tation# to *oad centre#N and

(d) ;ro?ide non di#cri,inator+ o;en acce## to it# tran#,i##ion #+#te, or u#e -+ an+ *icen#ee or %eneratin% co,;an+ on ;a+,ent o tran#,i##ion char%e# and to an+ con#u,er on ;a+,ent o tran#,i##ion char%e# and a #urchar%e thereon in accordance =ith the E*ectricit+ Act!

22

"i#ion and Mi##ion o the $o,;an+8

2ision
7or*d $*a##, Inte%rated, G*o-a* Tran#,i##ion $o,;an+ =ith >o,inant (eader#hi; in e,er%in% Po=er Market#, en#urin% Re*ia-i*it+, Sa et+ and Econo,+!

$ission
To -eco,e a G*o-a* Tran#,i##ion $o,;an+ =ith >o,inant (eader#hi; in E,er%in% Po=er Market# =ith 7or*d c*a## ca;a-i*itie# -+8 7or*d $*a##9 Settin% #u;erior #tandard# in ca;ita* ;ro:ect ,ana%e,ent and o;eration# or the indu#tr+ and our#e*?e#! G*o-a*9 (e?era%in% ca;a-i*itie# to con#i#tent*+ %enerate ,aFi,u, ?a*ue or a** #take ho*der# in India and in e,er%in% and %ro=in% econo,ie#! In#;irin%, Nurturin% and e,;o=erin% the neFt %eneration o ;ro e##iona*#! Achie?in% continuou# i,;ro?e,ent# throu%h inno?ation and #tate o the art techno*o%+! $o,,ittin% to hi%he#t #tandard# in hea*th, #a et+, #ecurit+ and en?iron,ent!

23

O-:ecti?e# o the $o,;an+8

The $or;oration ha# #et o**o=in% o-:ecti?e# in *ine =ith it# ,i##ion and it# #tatu# a# Q$entra* Tran#,i##ion Uti*it+Q to8 Undertake tran#,i##ion o ener%+ throu%h Inter9State Tran#,i##ion S+#te,! >i#char%e a** unction# o ;*annin% and coordination re*atin% to Inter9State Tran#,i##ion S+#te, =ith9 o o o o o o o o o State Tran#,i##ion Uti*itie#N $entra* Go?ern,entN State Go?ern,entN Generatin% $o,;anie#N Re%iona* E*ectricit+ Eoard#N Authorit+N (icen#ee#N Tran#,i##ion (icen#ee#N An+ other ;er#on noti ied -+ the $entra* Go?ern,ent on thi# -eha* !

EFerci#e #u;er?i#ion and contro* o?er the inter#tate tran#,i##ion #+#te, E icient O;eration and Maintenance o Tran#,i##ion S+#te,#! E#ta-*i#hKau%,ent and o;erate a** Re%iona* (oad >i#;atch $enter# and $o,,unication aci*itie#! To aci*itate ;ri?ate #ector ;artici;ation on Tran#,i##ion #+#te, throu%h Inde;endent Pri?ate Tran#,i##ion $o,;an+, Joint "enture#! To a##i#t ?ariou# SEE# and other uti*itie# in u; %radation o #ki**# ' #harin% o eF;erti#e -+ or%ani@in% re%u*ar con erence#, tai*or9,ade trainin% =ork#ho;# directed to=ard# #;eci ic techno*o%ica* and O'M area# and eFtendin% *a-orator+ aci*itie# or te#tin% ;ur;o#e# etc! Re#torin% ;o=er in <uicke#t ;o##i-*e ti,e in the e?ent o an+ natura* di#a#ter# *ike #u;er9 c+c*one, *ood etc! throu%h de;*o+,ent o E,er%enc+ Re#toration S+#te,#! To ;ro?ide con#u*tanc+ #er?ice# at nationa* and internationa* *e?e*# in tran#,i##ion #ector -a#ed on the in9hou#e eF;erti#e de?e*o;ed -+ the or%ani@ation!

24

$ilestones +chieved
July >7/7@ A;;ro?a* to the Fo**o=9on Pu-*ic O er o PO7ERGRI> arch >7/7@ $erti icate $or;oration (i,ited! or $o,,ence,ent o Eu#ine## i##ued to Po=er S+#te, O;eration

arch >770@ PO7ERGRI>R# =ho**+ o=ned #u-#idiar+, Po=er S+#te, O;eration $or;oration (i,ited, =a# incor;orated! ay >772 @ PO7ERGRI> =a# noti ied a# a Na?ratna $o,;an+! 'ctober >77C@ PO7ERGRI>R# (i#tin% o E<uit+ Share# on the Stock EFchan%e#! )ecember /002@ PO7ERGRI> =a# noti ied a# the $entra* Tran#,i##ion Uti*it+ -+ the Go?ern,ent o India! PO7ERGRI> continue# to -e the $TU under the E*ectricit+ Act, /113 a# ;er the noti ication i##ued -+ the GoI on No?e,-er /H, /113! 'ctober /002 @ PO7ERGRI> =a# noti ied a# a Mini Ratna ( $ate%or+ I) $o,;an+ -+ the Go?ern,ent o India! /00D4/001@ $ontro* o the i?e re9ional dispatch and communication centre was transferred to P'(#RGRI) in a phased manner! P'(#RGRI) undertoo+ the unified load dispatch and communication pro<ect -6L)C. under which moderni5ed load dispatch facilities have been established in each of the five re9ional centres! &he establishment of a national load dispatch centre is also underway! /001@ The Go?ern,ent o India entru#ted PO7ERGRI> =ith the re#;on#i-i*it+ o contro**in% the eFi#tin% *oad de#;atch centre# in the countr+ =ith a ?ie= to achie?e -etter %rid ,ana%e,ent and o;eration! Au9ust /00?@ The tran#,i##ion a##et# o Tehri H+dro >e?e*o;,ent $or;oration (i,ited are tran# erred to PO7ERGRI>! January /00?@ The Nationa* Ther,a* Po=er $or;oration (i,ited, the Nationa* H+dro E*ectric Po=er $or;oration (i,ited and the North9Ea#tern E*ectric Po=er $or;oration (i,ited (Ac<ui#ition and Tran# er o Po=er Tran#,i##ion S+#te,#) Ordinance (CPo=er Tran#,i##ion S+#te,# OrdinanceD) =a# enacted , ;ur#uant to =hich the ri%ht, tit*e and intere#t o the#e three ;o=er %eneratin% co,;anie# in re*ation to the ;o=er tran#,i##ion #+#te,, co,;ri#in% o the ,ain tran#,i##ion *ine#, inc*udin% the eFtra hi%h ?o*ta%e a*ternati?e current tran#,i##ion *ine# and the H">$ *ine#, and #u-9#tation#, o=ned -+ the,, =ere ac<uired -+ the Go?ern,ent o India and tran# erred to $o,;an+, =ith e ect ro, A;ri* 0, 044/ April /00>@ Tran#,i##ion a##et# o Ne+?e*i (i%nite $or;oration (i,ited =ere taken o?er -+ PO7ERGRI> under the Ne+?e*i (i%nite $or;oration (i,ited (Ac<ui#ition and Tran# er o Po=er Tran#,i##ion S+#te,) Act, 0442!

April /00/@ The tran#,i##ion a##et# o Nuc*ear Po=er $or;oration (i,ited =ere tran# erred to PO7ERGRI>!

P,/E0 0#)3s Performance

0eferred 7a@ = other 3urrent Liabilities ).31?

S ourcesof "unds #$% &'(')((

" hort 7erm Loans 2.&1? $>uity .)3? 5eserves 22.+4?

0omestic ;onds 42. 4?

.oreign 3urrency Loan 1#. !?

'rants &.1!?

Loan from ;anks and .inancial *nstitutions 1.#3?

2)

Application of "unds #$% &'(')((

3onstruction " tores = %dvances 2&.!#? *nvestments 2.&#?

/et 3urrent %ssets &.#&?

3apital 4ork *n Progress 1#.+4?

.i@ed %ssets A/et ;lockB !.+!?

*+uity , Reserves
$ >uity 5eserves 1## # 1)!3

11!3& +2+1 1&4&+

42&+

42&+

42&+

4)3&

4)3&

2&&!6&#

2&&#6&+

2&&+61&

2&1&611

2&11612

2!

-e!t *+uity Ratio #$%

0ebt $>uity

3#

34

32

31

)2

))

)#

)+

2&&!6&#

2&&#6&+

2&&+61&

2&1&611

2&11612

=ields of 'perationE $ervices offered by P'(#RGRI)

2#

#stablishment of &ransmission $ystem@

Our core -u#ine## i# the tran#,i##ion o e*ectric ;o=er! A# on 0#t A;ri*R0/, =e o=n and o;erate ,ore than 4/,425 $kt! k,# net=ork o tran#,i##ion *ine#, 0,/2,G/G M"A tran# or,ation ca;acit+ and 0G1 no#! #u-#tation# that con#titute# ,o#t o IndiaB# inter#tate and inter9re%iona* e*ectric ;o=er tran#,i##ion #+#te, and carrie# e*ectric ;o=er acro## India! A# on A;ri*B 0#t, /10/, =e ha?e 61 tran#,i##ion ;ro:ect# in ?ariou# #ta%e# o i,;*e,entation =hich inc*ude // no#! Generation *inked Pro:ect# =ith co#t o a;;roF! R#! G0,641 $rore#, 33 no#! #+#te, #tren%thenin% Pro:ect# =ith co#t o a;;roF! R#! //3// $rore# ' /G no#! Pro:ect# or IPP#K (TOA =ith co#t o a;;roF! R#! 23,012 $rore#! The#e ;ro:ect# in?o*?e a;;roFi,ate*+ G0,G/3 circuit ki*o,eter# o tran#,i##ion *ine# and 62 #u-#tation# =ith a tota* ;o=er tran# or,ation ca;acit+ o a;;roFi,ate*+ 0G43GG M"A and 01/G1 M7 o H">$! The -ud%eted co#t o the#e ;ro:ect# i# R#! 00H305 $rore#! PO7ERGRI> ha# undertaken de?e*o;,ent o 00 no#! Hi%h $a;acit+ Tran#,i##ion $orridor# to aci*itate ;o=er tran# er ro, ?ariou# u;co,in% IPP %eneration ;ro:ect#! Mo#t o the#e %eneration ;ro:ect# are en?i#a%ed in the State o Ori##a, $hhattia%rh, Jharkhand, Madh+a Prade#h, Sikki,, Andhra Prade#h, Ta,i* Nadu etc! The tran#,i##ion corridor# ,ain*+ co,;ri#e o hi%h ca;acit+ H5Gk" dou-*e circuit *ine, S611k" H">$ #+#te,, H5GK211k" Poo*in% Station# at di erent *ocation#! In addition, PO7ERGRI>B# =ork# a*#o in?o*?e de?e*o;,ent o tran#,i##ion #+#te, o 5 UMPP# each o 2111M7 ca;acit+ a# =e** a# other centra* #ector %eneration ;ro:ect# and %rid #tren%thenin% #che,e#! The tran#,i##ion #che,e ,ain*+ in?o*?e# e#ta-*i#h,ent o H5Gk" A$ and 611k" H">$ #+#te,! It i# en?i#a%ed to de?e*o; a-out G1,111 circuit k, EH" tran#,i##ion *ine# at 211k" and a-o?e *e?e* and a-out 51 no#! EH" #u-#tation# =ith a-out 001,111 M"A tran# or,ation ca;acit+ in neFt 59H +ear#!
2+

Grid

ana9ement@

For o?era** i,;ro?e,ent and -etter %rid ,ana%e,ent in the countr+, PO7ERGRI> ha# ,oderni@ed a** the Re%iona* (oad >i#;atch $entre# (R(>$S) =ith the #tate9o 9the9art Uni ied (oad >e#;atch ' $o,,unication (U(>$) #che,e# at a co#t o a-out R#! /,111 $rore! The#e ,oderni@ed R(>$# are %reat*+ contri-utin% to -rin% <ua*it+ and econo,+ in the o;eration o the ;o=er #+#te, -e#ide# i,;ro?in% data a?ai*a-i*it+, ?i#i-i*it+ and tran#;arenc+! 7ith the ado;tion o #tate9o 9the9art o;erationa* ;ractice#, ;roacti?e ;re?enti?e ,aintenance, i,;*e,entation o AET, the ,oderni@ation o R(>$# cou;*ed =ith trainin% ' de;*o+,ent o eF;ert ,an;o=er and round the c*ock ?i%i* or %rid ,ana%e,ent, no ,a:or %rid di#tur-ance# in the countr+ ha?e -een encountered or the *a#t 5T +ear#! Further, tri;;in% o *ine# and ,inor %rid di#tur-ance# in re%iona* %rid# ha?e co,e do=n #o #i%ni icant*+ that it can -e reckoned a# a -ench,ark achie?e,ent! For o?era** co9ordination, Nationa* (oad >e#;atch $entre (N(>$) at >e*hi, =ith -ack u; at )o*kata, ha# -een #ucce## u**+ co,,i##ioned on /G Fe-ruar+ /114 and runnin% #ati# actori*+! Since the Grid Mana%e,ent Re#;on#i-i*it+ i# #hi ted to PO7ERGRI>B# =ho**+ o=ned #u-#idiar+ MK# POSO$O, the R(>$ and N(>$ are -ein% ,ana%ed -+ POSO$O! PO7ERGRI> ha# #;earheaded the i,;*e,entation o A?ai*a-i*it+ Ea#ed Tari (AET) acro## the countr+, =hich ha# a -ui*t9in co,,ercia* ,echani#, to re=ard ;ro;er %rid -eha?ior! Thi# ha# #i%ni icant*+ #ta-i*i@ed ?ita* %rid ;ara,eter#, i!e! ?o*ta%e and re<uenc+ there-+ i,;ro?in% the <ua*it+ o ;o=er!

';

of &ransmission $ystem@

The E*ectricit+ Act re<uire# e?er+ tran#,i##ion *icen#ee to co,;*+ =ith the technica* #tandard# o o;eration and ,aintenance in accordance =ith the Grid Standard# a# #;eci ied -+ the $EA The dutie# o a tran#,i##ion *icen#ee under the E*ectricit+ Act inc*ude a,on%#t other#8

(a) to -ui*d, ,aintain and o;erate an e icient and econo,ic interKintra #tate tran#,i##ion #+#te,N and (-) to ;ro?ide non9di#cri,inator+ o;en acce## to it# tran#,i##ion #+#te, or u#e -+ an+ *icen#ee or %eneratin% co,;an+ on ;a+,ent o tran#,i##ion char%e# and to an+ con#u,er on ;a+,ent o tran#,i##ion char%e# and a #urchar%e thereon in accordance =ith the E*ectricit+ Act! Po=er Grid $or;oration o India (td! take# continuou# action re%ardin% o;eration and ,aintenance to #eek to en#ure co,;*iance =ith ;re#cri-ed #tandard# a# =e** a# to achie?e hi%h a?ai*a-i*it+ o the #+#te, or uninterru;ted ;o=er #u;;*+ to cu#to,er#! The ,aintenance o the ISTS in?o*?e# the routine in#;ection and o?erhau* o tran#,i##ion #+#te, a##et# and the re;*ace,ent o co,;onent#! $ondition a##e##,ent and ,onitorin% techni<ue# are u#ed to he*; o;ti,i#e ,aintenance inter?a*# and reduce #+#te, outa%e#! PO7ERGRI> ha# de?e*o;ed *eFi-*e =orkin% ;ractice# to take ad?anta%e o the #+#te, condition# or da+9to9da+ ,aintenance =ork and a*#o ,odi + their annua* ,aintenance ;ro%ra,,e accordin% to %eneration ,aintenance #chedu*e#! Techni<ue# #uch a# *i?e9*ine =orkin% are a*#o u#ed to ena-*e certain t+;e# o ,aintenance to -e carried out =ithout takin% tran#,i##ion *ine# out o #er?ice! E,er%enc+ re#toration #+#te,# (CERS#D) are u#ed or ear*+ re#toration in ca#e o natura* di#a#ter# and other eFi%encie#!

&elecom@

3&

7ith the ?i#ion to -rid%e the di%ita* di?ide in the countr+ and en#ure that -ene it# on in or,ation re?o*ution reach the entire *en%th and -readth o the countr+, PO7ERGRI> ha# di?er#i ied into Te*eco, uti*i@in% ri%ht o =a+ on it# EFtra Hi%h "o*ta%e Po=er Tran#,i##ion Net=ork in ra#tructure in the countr+ =ith it# -rand na,e a# PO7ERTE(! A,on% the Te*eco, ;*a+er# PO7ERGRI> i# the on*+ uti*it+ in the countr+ ha?in% o?erhead o;tic i-er net=ork u#in% OPG7 (O;tica* Ground 7ire) on ;o=er tran#,i##ion *ine#! PO7ERGRI> ha# an a** India Eroad Eand Te*eco, Net=ork o a-out /1,H33 k,# =ith ,u*ti;*e #e* re#i*ient rin%# or -ack-one a# =e** a# intra cit+ acce## networ+s connectin9 nore than />0 cities across the country and ensurin9 a reliability of more than 00!08! PO7ERGRI> ha# o**o=in% Te*eco, (icen#e#8

In ra#tructure Pro?ider $ate%or+ 9 I (IP9I *icen#e) N(> (icen#e or ;ro?idin% end9to9end -and=idth ISP cate%or+ AAB *icen#e to ;ro?ide internet #er?ice# in the countr+

$ervices Provided on P'(#RGRI)Fs networ+ @4 The Net=ork i# ca;a-*e o ,ana%in% 3/ channe* >7>M #+#te,, connectin% a** the ,etro# and re,ote *ocation# in North Ea#t and Ja,,u ' )a#h,ir! The -a*ance net=ork de;*o+# S>H (STM 05KSTM 2) #+#te,#! The o**o=in% #er?ice# are a?ai*a-*e on PO7ERGRI>B# net=ork8

E0KE3K>S3KSTM0KSTM2KSTM05 (ea#ed (ine Ethernet Pri?ate (ea#ed (ine Mu*ti9#ite (AN Interconnect ;*u# Internet Acce## Internet -and=idth

6ni:ue =eatures of P'(#RGRI) &elecom "etwor+@ Mo#t o the PO7ERGRI>B# o;tic i-er -ack-one net=ork i# *aid o?erhead on the eFtra hi%h ?o*ta%e Po=er tran#,i##ion *ine# !The Te*eco, net=ork on the Tran#,i##ion *ine# ha# ;ro?ed to -e #turd+ and #ecure, rodent ,enace ree, ?anda*i#, ;roo =hich o er# it di#tinct ad?anta%e o?er the under%round o;tic i-er! The other ad?anta%e# are8

In#tant -and=idth a**ocation on PO7ERGRI>B# Te*eco, route End to end connecti?it+ In#tant u; %radation to hi%her ca;acit+ Eetter Ser?ice (e?e* Ser?ice# caterin% to the #;eci ic need# o the cu#to,er# Hi%h re*ia-i*it+, hi%h <ua*it+ #er?ice in a co#t e ecti?e ,anner

International 3usiness@
Internationa* Eu#ine## >e;art,ent i# created =ith the o-:ecti?e to #;read PO7ERGRI>B# en%ineerin% #er?ice# in Po=er Tran#,i##ion Eu#ine## acro## the =or*d! The o-:ecti?e i# #trate%ic to
31

PO7REGRI>B# %ro=th ;*an#N to de9ri#k do,e#tic o;eration# -+ =a+ o di?er#i ied %eo%ra;hic ;re#ence, to %ear u; or neFt co,;etiti?e ;ha#e and to *earn internationa* -e#t ;ractice#! PO7ERGRI>, the 3rd *ar%e#t tran#,i##ion uti*it+ in the =or*d, i# continuou#*+ #ettin% -e#t ;o=er tran#,i##ion ;ractice# that are =e** ackno=*ed%ed -+ ,u*ti *atera* undin% a%encie# *ike The 7or*d Eank, A>E, JEI$ etc =ho ha?e eFtended ,u*ti-i**ion *oan# to PO7ERGRI> in e#ta-*i#hin% tran#,i##ion net=ork in India! PO7ERGRI> ha# -een #o ar a##i%ned ,ore than 311 no#! o con#u*tanc+ a##i%n,ent# -+ nationa* and internationa* c*ient# in $on#truction o Tran#,i##ion (ine# and Su-#tation#, (oad >i#;atch $entre, >i#tri-ution and Rura* E*ectri ication! PO7ERGRI> ha# taken u; ,ore than 31 internationa* a##i%n,ent# in countrie# *ike A %hani#tan, Ean%*ade#h, Ehutan, >u-ai, Ne;a*, Ni%eria and Sri*anka! The -i%%e#t ad?anta%e o PO7ERGRI> i# that un*ike ,an+ o the reno=ned con#u*tant#, PO7ERGRI> it#e* i# one o the *ar%e#t ;racticin% tran#,i##ion uti*it+ =ith eF;erience in En%ineerin%, >e#i%n, Procure,ent, $on#truction, Pro:ect Mana%e,ent, $on#truction Su;er?i#ion, U; %radation o Tran#,i##ion S+#te,, O;eration and Maintenance o tran#,i##ion #+#te,! PO7ERGRI> ha# a hi%h*+ eF;erienced and #ki**ed ta*ent ;oo* o o?er 43G1 u** ti,e e,;*o+ee# =hich i# it# -i%%e#t #tren%th in #ucce## u**+ i,;*e,entin% do,e#tic and internationa* ;ro:ect#! "er+ e= con#u*tant# in the =or*d ha?e thi# kind o trained ,an;o=er that PO7ERGRI> ha# toda+! PO7ERGRI> ha# rich and ?aried ;o=er tran#,i##ion eF;erience =hich it can re;*icate in %*o-a* ;ro:ect# and #er?ice c*ient# to ,aFi,u, #ati# action!

Consultancy ; Joint*enture
PO7ERGRI> ha# -een ;ro?idin% con#u*tanc+ #er?ice# #ince ear*+ da+# o it# ince;tion in 044/943! It ha# a c*ient -a#e o ,ore than 0/G no#! in ;o=er #ector! Eui*din% u;on ?a#t in9hou#e eF;erience o eFecutin% and ,aintainin% o?er 43111 circuit k,# o tran#,i##ion *ine# and 0G1 EH" #u-#tation#, PO7ERGRI> ;ro?ide# the one #to; con#u*tanc+ #er?ice# to uti*itie# co?erin% entire %a,ut o #er?ice# ;ertainin% to Tran#,i##ion S+#te,!

32

A3AL8SIS O CO3S/LTA3C8 SERVICE

inancia! 8ear 9::;<:= to &inancia! #ear 9:>><>9

33

Areas of Consultancy $ervices offered by P'(#RGRI)@

P*annin% >e#i%n Tran#,i##ion (ine# Su-9#tation# Po=er >i#tri-ution Te*eco, $ontract# Ser?ice# Pro:ect Mana%e,ent In#;ection Hu,an Re#ource# O;eration and Maintenance Re;air and Maintenance

The co,;an+ o er# con#u*tanc+ :o-# o ?aried nature! The con#u*tanc+ o ered inc*ude En%ineerin% con#u*tanc+ #uch a# ;ro?idin% to=er and oundation dra=in% and de#i%n, S+#te, #tudie# or e?acuation ;ro:ect# *inked =ith %eneration, Pre;aration o Fea#i-i*it+ Re;ort#, $ontract and Procure,ent Ser?ice#, Pro:ect Mana%e,ent Ser?ice#! Other con#u*tanc+ o ered inc*ude Turnke+ eFecution o ne= tran#,i##ion *ine#, #u-#tation# and -a+ eFten#ion# on co#t ;*u# -a#i#, O;eration# and Maintenance o tran#,i##ion *ine# and #u-#tation#, S;ecia*i#ed te#tin% o e<ui;,ent#, Trainin% and =ork#ho;# on ?ariou# area#! The $on#u*tanc+ Jo-# o PO7ERGRI> can -e di?ided into t=o ;art#8 0! >o,e#tic $on#u*tanc+ Jo-# /! Internationa* $on#u*tanc+ Jo-# >o,e#tic $on#u*tanc+ Jo-# are the a##i%n,ent# that are ;rocured and eFecuted at the do,e#tic *e?e*! Mo#t o the c*ient# are ,ain*+ the State Uti*itie#, The c*ient -a#e a*#o inc*ude# re;uted Pri?ate Uti*itie#! The Internationa* $on#u*tanc+ Jo-# inc*ude the $on#u*tanc+ A##i%n,ent# in ?ariou# countrie# (EFce;t India)!

Past Consultancy Assi9nments@4

$!"o! Client )escription Pro<ect Cost =inancial
34

7EP>$(

211)" #u-#tation# ' it# tran#,i##ion *ine# a##ociated =ith Eakre#h=ar TPP

-Rs! In Crores. /10

Aear 044G945

> ? 1

7ESEE UPP$( 7EP>$(

EFecution o tran#,i##ion *ine# EFecution o 211)" >K$ "i#hnu Pra+a%9 Mu@a ar;ur tran#,i##ion (ine EFecution o 211)" tran#,i##ion #+#te, a##ociate =ith Sa%ardi%hi TPP

G/H 30/ 01G

044H946 /11/913 /11G915

Present #n9ineerin9 $ervices@

PST$(8 211 k" tran#,i##ion #+#te,# a##ociated =ith Ra:;ura TPP Torrent8 211 k" >K$ >GEN (>ahe:) 9 Na?#ari tran#,i##ion *ine $ES$8 211k" >K$ Ha*dia & Su-ha#%ra, tran#,i##ion *ine I('FS8 211k" >K$ $udda*ore & Na%a;attina, tran#,i##ion *ine Jai;raka#h8 211k" >K$ Ni%rie 9 Satna tran#,i##ion *ine Tee#ta?a**e+8 211k" tran#,i##ion *ine# a##ociated =ith Tee#t9III HEP

Present Consultancy Jobs@

$!"o! 0 / 3 Client NET$ N>M$ OPT$( )escription EFecution o 211)" >K$ Pa**atana & Si*char & Eon%ia%aon tran#,i##ion *ine# S+#te, #tren%thenin% =ork# in N>M$ area# $on#truction o 5 no#! 03/)" #u-#tation#, 2 no#! 03/)" -a+# and a##ociated 03/)" tran#,i##ion *ine# EFecution o 211)" tran#,i##ion #+#te, or Ta*=andi Sa-o Po=er Pro:ect Pro<ect Cost -Rs! In Crores. 0H11 /11 051

PST$(

0133

G 5

MeE$( NHPT(

211)" #u-#tation at E+rnihat and (I(O o 211)" >K$ Si*char & Eon%ia%aon *ine E#ta-*i#h,ent o On9(ine Hi%h Po=er Short $ircuit Te#t Faci*it+ at Eina Su-#tation I,;*e,entation o tran#,i##ion #+#te, at ?ariou# ?o*ta%e *e?e*# (339211)")

000 /2H

JSEE

0301

$peciali5ed Consultancy Jobs@

>e#i%n o R$ To=er# in Hoo%h*+ Ri?er $ro##in% Section o 211k" >K$ Ha*dia Su-ha#%ar, tran#,i##ion *ine or MK# $ES$ (td!, =hich =i** -e one o the hi%he#t to=er# in the =or*d! S,art Grid (Pi*ot Pro:ect#) or ?ariou# #tate o=ned ;o=er di#tri-ution co,;anie# *ike $SP>$(, UHE"N(, etc E#ta-*i#h,ent K u;9%radation o S(>$KU(>$ or APTRANS$O, OPT$(, PT$U(, Jharkhand, Puducherr+ etc (enderU# En%ineer Ser?ice# to RE$ or con#truction o E##ar Po=erB# tran#,i##ion #+#te, a##ociated =ith Mahan TPS! >e#i%nin% o / no#! 7e** Foundation# or MK# NET$ in co**a-oration =ith IIT, >e*hi and Ga,,on India (td! on Erah,a;utra Ri?er ha?in% de;th o 51M and dia,eter o 02M! One =e** oundation ;ro?ided =ith Rock Anchorin% due to #*o;in% -ed rock ;rior to 51M, =hich i# rare -+ nature!

Consultancy assi9nments in Pipeline@

Pro<ect "ame $rina9ar4 Leh -via Gar9il. transmission system "#R Comprehensive scheme 6p49radation of 6L)C system Amount -Rs! In Crores. 0216 6211 /6/

P'(#RGRI)Fs Client List@

3)

Process of 'btainin9 a Consultancy Assi9nment

The $*ient $o,;an+K StateK $ountr+ o ten ;u-*i#h ad?erti#e,ent# in?itin% -id# or the tender a%ain#t con#u*tanc+ a##i%n,ent that need# to -e catered -+ the con#u*tant! The co,;an+ need to -id to o-tain the#e t+;e# o a##i%n,ent#! There are a*#o in#tance# =here the c*ient co,;an+ #e*ect# con#u*tant# on their o=n and then #end# then a *etter to in?ite a ;ro;o#a* ro, their end! In -oth the#e ca#e# the noticeK *etter the c*ient co,;an+ #end# a ARe<ue#t or Pro;o#a*B! Thi# i# a docu,ent =hich contain# in or,ation in re*ation to the :o- a##i%n,ent! The ;ro;o#a* #;eci ie#89 7ork >e#cri;tion 9 The A##i%n,ent that i# to -e co,;*eted or undertaken -+ the con#u*tant i he i# a**otted the ta#k! Man;o=er Re<uire,ent 9 The t+;e o ,an;o=er that the c*ient re<uire# #o that the ta#k can -e co,;*eted e ecti?e*+ and e icient*+!

3!

 A;;roach and Methodo*o%+ & The ra,e=ork that de ine# ho= a con#u*tant #hou*d %o a-out the a##i%n,ent! It #;eci ie# the a;;roach ,ethod and re<uire,ent#! 7ork P*an & It de ine# the entire #et o ta#k# that need to -e co,;*eted under the a##i%n,ent! $" o concerned O icia*# & The or,at in =hich the con#u*tant ha# to #end in in or,ation o o icia*# =ho =ou*d take u; the a##i%n,ent on -eha* o the con#u*tant! The %enera* content *i#t o a CRe<ue#t or Pro;o#a*D inc*ude# 8 0! (etter o initiation & (etter to con#u*tant re%ardin% the a##i%n,ent

/! In#truction# to -idder# & The %enera* in#truction# that a -idder need# to o**o= =hi*e #endin% in the -id!

3! >e inition# & The de inition# o the a--re?iation# u#ed in the Pro;o#a*

2! Introduction# & The %enera* introduction a-out the a##i%n,ent ta#k!

G! $*ari ication and a,end,ent# o re<ue#t or ;ro;o#a* docu,ent#

5! Pre;aration o ;ro;o#a*# & The %uide*ine# re%ardin% the ;re;aration o the ;ro;o#a*!

H! Su-,i##ion, Recei;t and O;enin% o Pro;o#a*# & The dead*ine#

6! Pro;o#a* E?a*uation 9 The ,ethod o e?a*uation and a#;ect# u;on =hich the e?a*uation =ou*d -e done!

4! Ne%otiation# & The ter,# o ne%otiation (o an+)

01! A=ard o contract & The ter,# and condition# or a=ardin% a contract to a con#u*tant!

3#

00! $on identia*it+

In re;*+ to the Re<ue#t or Pro;o#a* #ent -+ the c*ient co,;an+, the -idderK con#u*tant ha# to %enera**+ #u-,it t=o Pro;o#a*#N i!e! a) Technica* Pro;o#a* -) Financia* Pro;o#a* In e= ca#e# the#e are co,-ined into one! Eoth the#e Pro;o#a*# that are #u-,itted -+ the con#u*tant, he*; the c*ient co,;an+ to e?a*uate and #e*ect the -e#t a?ai*a-*e con#u*tant or the a##i%n,ent! The Technica* Pro;o#a* dea*# =ith the technica* a#;ect# o the con#u*tant! It de ine# the or%ani@ation, the eF;erience that the con#u*tant ha#, under#tandin% o the con#u*tant re%ardin% the ;ro;o#ed a##i%n,ent o the c*ient co,;an+, hi# =ork ;rocedure and ,ethodo*o%+ etc! Thi# he*;# the c*ient co,;an+ to a##e## the -idder on technica* %round# and the c*ient co,;an+ can co,e to a conc*u#ion =hether or not the con#u*tant i# %ood enou%h to -e handed o?er the a##i%n,ent! The Financia* Pro;o#a* on the other hand he*;# the c*ient co,;an+, to a##e## the con#u*tantK -idder on inancia* %round#! Thi# ;ro;o#a* inc*ude# a** the inancia* i%ure# and co#t#, =hich the con#u*tant ee*# the c*ient co,;an+ =ou*d ha?e to incur a%ain#t the a##i%n,ent! Ee*o= i# the content *i#t o the t=o ;ro;o#a*# 8

A! Technica* Pro;o#a*
I! II! III! I"! "! "I! "II! A-out the $on#u*tantK Or%ani#ation EF;erience Ter,# o re erence and co,,ent# ' #u%%e#tion# on counter;art #ta ' aci*itie# to -e ;ro?ided -+ c*ient! >e#cri;tion o a;;roach, ,ethodo*o%+ and =ork ;*an or ;er or,in% the a##i%n,ent! Tea, co,;o#ition and ta#k a##i%n,ent! $" or ;ro;o#ed ;ro e##iona* #ta 7ork Schedu*e

E! Financia* Pro;o#a*
I! II! III! I"! "! Su-,i##ion For, Su,,ar+ o $o#t# Ereakdo=n o $o#t# -+ acti?it+ Ereakdo=n o Re,uneration Ereakdo=n o Rei,-ur#a-*e EF;en#e#
3+

The Ereak do=n o Re,uneration inc*ude# 8 a! Sa*ar+ -! Socia* $o#t# c! O?erhead# d! Fee or ;ro it e! A=a+ ro, head<uarter a**o=ance or ;re,iu, ! An+ other a**o=ance

ethod of biddin9
Once a *etter o Pro;o#a* i# o-tained or a tender need# to -e -ided or, the a##i%n,ent i# ir#t #tudied! Thi# i# done -+ the e,;*o+ee# o PO7ERGRI>! The+ #tud+ the a##i%n,ent and ana*+@e ho= to %o a-out the a##i%n,ent! At the #a,e ti,e the+ a*#o ana*+@e the ,an;o=er re<uire,ent, the ,ateria* re<uired etc or the a##i%n,ent! Once thi# ana*+#i# i# done, the co#t or the #a,e i# a#certained and then the technica* and inancia* ;ro;o#a*# ;re;ared in the or,at a# the c*ient co,;an+ #eek#! PO7ERGRI> -id# or a** ;ro;o#a*# on $o#t M Pro it ($MP) -a#i#! Once the co#t o the a##i%n,ent i# a#certained PO7ERGRI> add# the ;ercenta%e o ;ro it to it and arri?e# at the ina* -iddin% rate! The ee char%ed or Pro e##iona*# i# R#! 33111!11 (in ca#e o internationa* a##i%n,ent#) and R#! 04011!11 (other#) and the ;ro it ;ercenta%e! A ter a** the#e ca*cu*ation# ha?e -een done and the ;ro;o#a*# ;re;ared, it i# re?ie=ed, a;;ro?ed and then #u-,itted at the c*ientB# o ice! A ter e?a*uation, the c*ient co,;an+ #e*ect# the $on#u*tant and then enter# into an a%ree,ent =ith hi,! The a%ree,ent #;eci ie# the a##i%n,ent to -e co,;*eted, the ter,# and condition# and the ra,e =ork =ithin =hich the con#u*tant ha# to o;erate and co,;*ete the a##i%ned ta#k! The#e are the %uide*ine# that ha?e to -e ke;t in ,ind =hi*e takin% u; the a##i%n,ent! The A%ree,ent %enera**+ contain# the **o=in%89 0! Mana%e,ent $ontract /! Genera* $ondition# o $ontract 3! >e inition# a! Inter;retation# 9 ,eanin% o a--re?iation# u#ed -! Priorit+ o docu,ent# & the docu,ent# that need to -e #u-,itted re%u*ar*+ -+ the con#u*tant, throu%hout the ;eriod o contract c! >uration o contract & the ti,e unti* the contract i# ?a*id! 2! Genera* condition# & de ine# the %enera* dutie# o the contractor G! O;eratin% Po*ice# & the ;o*icie# =ith re%ard# to o;eration o the contractor
4&

5! EFc*uded Acti?itie# & the acti?itie# that are not to -e ;er or,edK undertaken -+ the contractor H! Genera* dutie# o the co,;an+ 6! Per#onne* & the ,ana%e,ent #ta re<uire,ent and dutie# 4! Trainin% and tran# er o kno=9ho= and #+#te,# 01! Procure,ent & detai*# re%ardin% ;rocure,ent o ,ateria*, re#;on#i-i*itie# to ,ana%e =ork and inance, ca;ita* =ork# etc! 00! Reco,,endation# 0/! $ontract ?ariationN #u#;en#ion & ter,# 03! $ontractor re,uneration & thi# #;eci ie# the iFed ee M incenti?e ee M contin%ent co#t#, ter,ination ee, ;a+,ent#, taFation! 02! Re;re#entation# and =arrantie# 0G! (ia-i*it+, Inde,ni ication, Per or,ance %uarantee ( de,and %uarantee), In#urance 05! $ontract ter,# 0H! Ter,ination 06! Force Ma:eure 04! $on identia*it+ /1! Inte**ectua* Pro;ert+ /0! Re#o*ution o >i#;ute# //! Mi#ce**aneou# /3! $on *ict o intere#t# /2! S;ecia* $ondition#

J'I"& *#"&6R#
PO7ERGRI> a# a con#u*tant a*#o take# u; a##i%n,ent =herein it ;ro?ide# con#u*tanc+ to the c*ient re%ardin% a ;articu*ar ta#k on*+ to the eFtent o re#o*?in% the ;ro-*e, a# a con#u*tant! PO7ERGRI> it#e* doe# not direct*+ re#o*?e the ;ro-*e, -ut it enter# into a :oint ?enture =ith a #u-9contractor =hich carrie# out the a##i%n,ent o re#o*?in% the ta#k! The Joint "enture or,ed -et=een PO7ERGRI> and the Su- $ontractor i# on*+ or the ;eriod u;to =hich the a##i%n,ent i# to -e co,;*eted! Once the a##i%n,ent i# co,;*eted the Joint "enture co,;an+ i# di##o*?ed! In no ca#e o Joint "enture, PO7ERGRI> ha# a #hare o ,ore than 24J! It %enera**+ ha# a #hare -et=een /GJ 9 24J in the Joint "enture $o,;an+! Thi# i# -ecau#e

41

PO7ERGRI> doe# not =ant the #u-9contractor to %et a reco%nition o a Pu-*ic Sector Enter;ri#e on the -a#i# o the Joint "enture $o,;an+!

List of Joint *enture Companies considered in the =A >7//4/> S!No

/ > ? 1 H D C 2

Joint "enture $o,;an+ Na,e

Po=er*ink# Tran#,i##ion (i,ited Torrent Po=er Grid (i,ited Ja+;ee Po=er%rid (i,ited Par-ati )o*da,Tran#,i##ion $o,;an+ (i,ited Tee#ta?a**e+ Po=er Tran#,i##ion (i,ited Nationa* Hi%h Po=er Te#t (a-orator+ Pri?ate (i,ited Ener%+ E icienc+ Ser?ice# (i,ited North Ea#t Tran#,i##ion $o,;an+ (i,ited

O=ner#hi; o PG$I(
24J /5J /5J /5J /5J /GJ /GJ /5J

At the >o,e#tic (e?e*, co#t o $on#u*tanc+ Pro:ect# in hand i# a;;roFi,ate*+ R#! 6211 $rore#! The Ma:or c*ient# are GMR, Adani, Re*iance, (anco, Are?a, Jinda* Po=er, Ja+ee, Torrent Po=er etc! PO7ERGRI> ha# #ucce## u**+ #er?ed 031 odd c*ient# -+ ;ro?idin% con#u*tanc+ or ?ariou# nature :o-# and ta#k#! PO7ERGRI> e,;ha#i@e# on hi%h *e?e* o cu#to,er #ati# action! Thi# i# #u;;orted -+ the act that the co,;an+ ha# recei?ed 0G re;eat order# in Financia* Iear /101900 ro, cu#to,er# o Financia* Iear /114901! At the internationa* *e?e*, PO7ERGRI> ha# rendered it# con#u*tanc+ #er?ice to ?ariou# countrie# o?er the +ear# and ,ade a #tron% %round! It ha# -een o erin% con#u*tanc+ to89 0! Ne;a* #ince /11G or de#i%n and con#truction o tran#,i##ion *ine ;ro:ect (R#! 0!31 crore#) //1)" )hi,ti & >ha*-ekar

/! Ehutan & or de#i%n and con#truction o 03/ )" , 211 )" *ine, N(>$ and #u-#tation# (R#! 03 crore#) 3! A %hani#tan & con#truction o //1)" *ine ro, )a-u* to Pu*9e9)hu,ri (R#! 5/ $rore#) 2! >u-ai 7ater and E*ectricit+ Authorit+ & con#u*tanc+ or 211)" GIS #u-9#tation# ' a##ociated tran#,i##ion *ine# (R#! 04 crore#) G! PH$N Ni%eria or #u-#tation auto,ation and re?ie= o docu,ent# (R#! 0!6 $rore#) 5! Ean%*ade#h & 0G11,= H">$ -ack to -ack at Eher,ara a##ociated =ith India & Ean%*ade#h Interconnection Pro:ect# (R#! /0 crore#) H! AEAI, US or ;ro?idin% o;eration and ,aintenance trainin% to >AES A %hani#tan, En%ineer# and Technician# (R#! 3!/ crore#) 6! Sri (anka ea#i-i*it+ #tudie# or con#truction o interconnection o India & Sri (anka e*ectricit+ %rid# (R#! 00 crore#)
42

4! Ne;a* & >etai*ed ea#i-i*it+ #tudie# and ESIA or >ha*ke-ar & Sakari Pro:ect (R#! /!4G crore#) 01! )ETRA$O or trainin% o )en+a En%ineer# in India (R#! 0!/G $rore#)

C' PARI$'" '= #AR"I"G$ &%R'6G% C'"$6L&A"CA@

Aear >77C472 >772470 >7704/7 >7/74// >7//4/> #arnin9s - Rs! In Crores. /G1!12 /0G!41 /54!0H /44!3G /64!3G

43

Consultancy Revenue
3onsultancy 5evenue 2++. 2#+.+

2 &.&4 21 .+

2)+.1!

2&&!6&#

2&&#6&+

2&&+61&

2&1&611

2&1162&12

C%A"G# I" #AR"IG$ &%R'6G% C' PARI$'" &' &'&AL #AR"I"G$@

Aear >77C472 >772470 >7704/7 >7/74// >7//4/> Tota* Re?enue G,160!G3 5,036!H/ H,G13!G6 4144!61 01,H6G!10

C'"$6L&A"CA

I"

-Rs! In crores. $on#u*tanc+ Re?enue /G1!12 /0G!41 /54!0H /44!3G /64!3G

44

C' PARI$'" '= C' P'$I&I'" '= #AR"I"G$ &%R'6G% C'"$6L&A"CA@

$! "o! =inancial Income -Rs! in Crs. Aear -=A. AP)RP RGG*AER# $ub&ransmission (or+s (or+s (or+s >7/74// >7704/7 >772470 >77C472 >77D47C 1!02 3!2G 00!5G /1!3/ //!51 60!5G H2!4H 66!46 016!2H 0//!04 /0!63 23!/5 24!HH 36!6G 02!52

/ > ? 1 H

'ther Consultancy (or+s /0H!C? /1C!10 DH!H7 2>!1? DD!HD

&otal

>00 >D0 >/D >H7 >>D

Role of =inance )epartment in Consultancy Jobs at PGCIL

Finance ;*a+# a ?er+ i,;ortant ro*e in a** a#;ect#! It i# the *i e -*ood o the or%ani@ation and at no ;o#ition can the ro*e o inance -e ne%*ected or turned do=n! Ri%ht ro, the ;oint an idea i# %enerated to the ti,e the ta#k i# co,;*eted, inance ;*a+# a ?ita* ro*e at each #ta%e! The ro*e o inance #tart# ro, ;re;aration o co#t# e#ti,ate# to a=ard o contract#! A con#u*tanc+ ee o 0GJ o the ;ro:ect co#t i# char%ed! There are eFce;tion# in ca#e o Go?ern,ent Or%ani#ation# =here the rate ,a+ -e char%ed V0/J! The ;ercenta%e o con#u*tanc+ ee i# on the ina* eFecuted co#t o the ;ro:ect! In ca#e o En%ineerin% $on#u*tanc+ a##i%n,ent#, the ee i# <uoted on the -a#i# o e#ti,ated ,anda+#! At ;re#ent, R#! 04,011!11 ;er ,an da+ and R#! 33,111!11 ;er ,an da+ i# char%ed or nationa* and out#tation a##i%n,ent# re#;ecti?e*+! The#e a,ount# inc*ude acco,,odation and *oca* con?e+ance! A;;roFi,ate a,ount i# a*#o char%ed or #tationar+ and co,;uter u#a%e! GJ i# char%ed or O?erhead eF;en#e#! Another 0GJ i# char%ed on tota* ;ro:ect co#t a# ;ro it! PO7ERGRI> enter# into an a%ree,ent =ith c*ient and the docu,ent# are ?etted! At no ;oint, the co,;an+ carrie# out the =ork, un*e## the ad?ance i# recei?ed! PO7ERGRI> doe# not u#e it# o=n und# or ;ro:ect eFecution or at an+ ;oint durin% the ;ro:ect! The Pro:ect ,ana%er rai#e# the in?oice#! Accountin% or Ser?ice TaF and T>S i# a*#o done! The ro*e o Finance >e;art,ent can -e -etter under#tood -+ kno=in% ho= and in =hat =a+# doe# the de;art,ent unction =ith re%ard# to a con#u*tanc+ Jo-! Takin% the eFa,;*e o $on#u*tanc+ Jorecei?ed ro, Jharkhand State E*ectricit+ Eoard or I,;*e,entation o tran#,i##ion #+#te, at ?ariou# ?o*ta%e *e?e*#, the ro*e o Finance >e;t can -e -etter under#tood! 7hen JSEE in?ited tender# or thi# ;ur;o#e, the Eiddin% de;art,ent o PG$I( ir#t con#u*ted it# en%ineer# and #tudied the entire ;ro:ect! A ter thi# =a# done the inance de;art,ent ca,e into ;*a+ to dra= u; an e#ti,ate o tota* co#t the co,;an+ =ou*d incur unti* the co,;*etion o the ;ro:ect! Thi# =a# done -+ #ettin% u; a %rou; o e,;*o+ee# ro, inance de;art,ent, =ho on the -a#i# o the re;ort #u-,itted -+ the en%ineer#, ca*cu*ated the entire eF;en#e# and or,ed the -ud%et! The co#t o ,an ;o=er =a# take# a# R#! 04,011 ;er da+ ;er e,;*o+ee! A ter the tota* -ud%et ha# -een or,ed, the inance de;art,ent added to it 0GJ o entire co#t a# ;ro it and ca,e u; to the ina* co#t o ;ro:ect! No= thi# =a# #u-,itted to the -iddin% de;art,ent, =ho ;*aced the -id =ith JSEE or a tota* o 0301 crore#! Once the tender i# ;rocured, the -iddin% de;art,ent in or,# a** concerned de;art,ent# inc*udin% the inance de;art,ent! The Finance >e;art,ent a;;oint# 0 Head Mana%er and 0 A##i#tant Mana%er ro, it# de;art,ent or each ;ro:ect! The#e t=o ,ana%er# are re#;on#i-*e or accountin% and inance ,atter# re*ated to thi# #;eci ic ;ro:ect! The tea, o the#e t=o re;ort# to the >GM Finance direct*+! The tea, *ook# into that it recei?e# re%u*ar re;ort# ro, the Pro:ect Inchar%e ro, da+ 0 a-out the =ork -ein% done =ith re#;ect to the ;ro:ect! Thi# tea, a*on% =ith the tea, e,;*o+ee# o other concerned de;art,ent then #tudie# the a%ree,ent and #i%n# the #a,e!
4)

It i# the re#;on#i-i*it+ o thi# tea, to ;re;are, di#;atch and account or a** inance docu,ent# re*ated to thi# ;ro:ect! Once the =ork #tart#, the Pro:ect In char%e #u-,it# ortni%ht*+ re;ort# to a** de;art,ent#, inc*udin% the inance de;art,ent! Thi# re;ort inc*ude# the detai*# o the =ork done (=ork certi ication) a*on% =ith a** eF;en#e# incurred -+ the, that are reco?era-*e ro, the c*ient co,;an+! The inance de;art,ent on the -a#i# o thi# re;ort, rai#e# -i**# on the c*ient co,;an+ ,onth*+! The -i** inc*ude# ee or Man;o=er, a** eF;en#e# ,entioned -+ the ;ro:ect inchar%e and an+ ee that i# to -e co**ected a# ;er the a%ree,ent! To thi# are added #er?ice char%e# V a;;*ica-*e rate! (;re#ent*+ 0/!GJ)! The -i** i# then #ent to the c*ient! It i# the ta#k o the inance de;art,ent to co**ect a** ;a+,ent# on ti,e! The ;a+,ent i# %enera**+ recei?ed a ter deductin% T>S ( taF deducted at #ource)! The inance de;art,ent ,ake# ;ro?i#ion# or the #a,e and account# or it! The T>S i# c*ai,ed -ack at the end o the +ear ro, the inco,e taF de;art,ent! The inance de;art,ent i# re#;on#i-*e to #ett*e do=n the account# o each ;ro:ect -+ March 30 o each accountin% +ear or the concerned inancia* +ear! A** docu,entation# are done -+ 30 #t March and account# ina*i@ed or audit! In ca#e an+ di#;ute ari#e# =ith re%ard# to recei?in% o ;a+,ent# or an+ inance ,atter =ith an+ c*ient, the inance de;art,ent i# re#;on#i-*e to take into con#ideration the ,atter! A** #ett*e,ent# are ,ade -+ the inance de;art,ent a ter con#u*tin% other de;art,ent#! The ro*e o the inance de;art,ent continue# e?en a ter a ;ro:ect i# co,;*eted a# ,an+ or,a*itie# re*atin% to the #a,e need to -e co,;*eted! Finance >e;art,ent ;*a+# a ?er+ i,;ortant ro*e in thi#! A;art ro, thi#, the inance de;art,ent ha# to ;re;are -ud%et# or u;co,in% <uarter# and +ear# or con#u*tanc+ :o-#! It need# to =ork continuou#*+ in ;*annin% the inco,e and eF;en#e# #o that thi# #trea, o o;eration etched ,ore ;ro it# or the or%ani@ation! The de;art,ent i# a*#o re#;on#i-*e to a##i#t in the Audit# that are carried out in the co,;an+ a** +ear round! The docu,ent# need to -e ;ro;er*+ ,aintained and ke;t or an+ audit ;ur;o#e! A** %o?ern,ent co,;*iance# #uch a# Pro?ident Fund, Ser?ice TaF, Sa*e# TaF, TaFation etc are to -e hand*ed -+ Finance >e;art,ent! The ro*e thi# de;art,ent ;*a+# in an or%ani@ation i# #i,i*ar to that o heart! It kee;# runnin% #o that the -*ood ( inance) i# circu*ated in the entire -od+ and kee;# the -od+ (or%ani@ation) ir and a*i?e!

4!

A3AL8SIS O REVE3/E

inancia! 8ear 9::;<:=

4#

to &inancia! #ear 9:>><>9

=I*# A#AR $6

ARA -'P#RA&I"G R#$6L&$.

-Rs! In Crores.
&'(()(& &'(')(( &''.)(' &''/)'. &''0)'/ 4241.2 +C 44.1+ !C+&2.1 2++.3 1#!.2& )C!&&. ) 2)+.1! 1 !.!2 C324.2) 21 .+& 14+.#3 2 &.&4 123. 3 2#+.+

#A%. *ARN*- "R1M2 7ransmission 3harges 3onsultancy 5evenue 7elecom 5evenue 2&1.1+ 2ther *ncome !4+.)# Total *arnings ('30/4.'( # % PAI- , PR17I-*- "1R2 $mployees 5emuneration and ;enefits #42.+! 7ransmission $@penses 32#.3# %dministration $@penses 4!).21 41 . + 2 !. ) 2&#.1& 2!&.3# 244.+1 1++.)1 !4 .#+ !2).!& )43.## .3'./.04 034'5.4/ 63(5/.04 !1&.& 3!).13 44#.!3

4)).!1 4'/(.45

1+.&) 1!1. 1)2.42

4+

2ther $@penses A*ncluding Prior Period $@pensesB 0eferred 5evenue $@penditure

11.4+ 1+.+) 1.!+ 1.#) 3.+# 2.3& 22.1 (99..(. (549.55 4).23 ((05..( 3.#3 ('4(./' 4&2+.!3 +113.4& !)4+. ) 21++.3+ 1)2 .44 3#24.!3 ###. 1 )#4.)1 6 314&.12 443.23 2)+).#+ #1&.23 )14+.2 1+!+.)+ 1 43.24 2)2).32 421.+1 A1. &B 22& .+1 1)4.2! 2&4&.+4 )31.24 4+)4.#1 + +.) 2 !2. 4 1&+3.)! 133+. 1+43. ) 4 +!.)& 1)42.2! 222#. ! 4!#.)& 14.)& 1!3 .3! !4.4 4 4.12 44.!) 144#.4! 32 4.+ 1)+&.)1 & .&# & .&# +!).#+ 1!3&. 3 1+!.11 1&. & 1 22.+2 (60(.6( 1&1.23 1.!# !4.2) 1.#3 1#+. 1 .43

Provisions Total *8penditure #*8cluding -epreciation , Interest% Profit before 0epreciation = *nterest 0epreciation *ntereset = .inance 3harges /et Profit after *nterest and 0epreciation but before ta@ Provision for ta@ A,%7B .ringe ;enefit 7a@ 6 /et Profit after ,%7 nad .;7 3!&+.&+ 0eferred 7a@ Profit after 0eferred 7a@ 0ividend

=I*# A#AR $6

ARA -=I"A"CIAL P'$I&I'".

-Rs! In Crores.
&'(()(& &'(')(( &''.)(' &''/)'. &''0)'/

A%B. 4-%7 7-$ 32,P%/< 24/$0 Gross "i8ed Assets &343.3 )33#!.34 & 432&2.2# 4&31+.33 3 41!.14

:ess2 -epreciation A1 !2 .&4B Net "i8ed Assets 32C&)1.2) b4!))2.3& Capital ;or< In Progress 12C+)3.)# Construction Stores 1&C!4+.2 Construction Advances 2C+11.)) Investments 1C3) .& Current Assets3 :oans , Advances 727%L A%B 1&C 1!.13 04305'.04 A;B 4-%7 7-$ 32,P%/< 24/$0 orro=ings from2 )Govt 1f India 6 )"inancial Institutions 33#.+ )"oreign :oans 12C221. ) onds 2)C 2#.1& )1ther :oans 1C!+4.1! 7otal Loans 9'3//&.00 Current :ia!lities , Provisions +C+#+.2! -eferred Ta8 :ia!lity 1C14).!4 Advance against -epreciation 2C1!).&! 727%L A;B 493(.9./4 9039&6./& 5.3906.04 &.390..5( &430/(.(6 2C213.)3 2C1 +. + 1C)+!.&! 1C2&1.1! !&3. 1 3#. 4 4+3.!# 41+.33 1&C&+2.#+ #C313.1+ C&24.+# 4C#3 .1) 5939(6.0. &/3964.95 &&3&65.9/ (.35&4.4' 1C)+ .&& 1C2+ .#4 1C3+).)! 1C4+!. & 21C1!1.#3 1)C4&+. ! 13C2 !.#1 1&C+++. 4 11C12+. 2 1&C24#.#3 !C&&).1) )C13 .)) 42&.44 11.1+ )&2.#4 )43.2! 6 6 6 4+. 3 1C4 3.22 +C)2!.32 653465../ 1C +2.#3 #C312.+2 4935&'.(. 1C!3).22 C3!).!# 953&&6.&. 1C+)!.&& 3C &+.!2 563055.(/ 2C!4).3! 2C& #.3# #34.2+ ))3.13 !C433.44 4C)+4.1+ 2C)1#.3+ 2C!&#.41 1&C242.3! )C 33.43 C3& .41 )C&)#.# 31C12#.44 2!C3 .2& 21C#1).&! A1311+.3!B A11141.&2B A+1+.#+B A#&)1.+4B

A39B /$7 4257- 2. 7-$ 32,P%/< 5$P5$"$/7$0 ;< #i%*+uity Capital #including -eposits% #ii% "ree Reserves and Surplus #iii% :ess2 Misc *8p to the e8tent not =ritten off 727%L A39B 1 4C)2+.!3 1)C!24.& 2.41 4C2&#.#4 11C!&#.23 3. ) 4C2&#.#4 1&C414.! . & 4C2&#.#4 +C2+#. 3 !.1+ 3C#2).22 )C#!4.21 12.#)

&(354(.50 A0B 32,,*77$0 5$"$58$" = L*%;L*7*$" #i% Grants in Aid 1!1.31 #ii% :-C -evelopment "und 6 #iii% CSR Activities Reserve 13.22 T1TA: #-% 1#4. 3 T1TA: # >C>-% ! C!3&.! CAPITA: *MP:1?*34C42+.&3 #Net "i8ed Assets> Net Current Assets%

(43.(5.4(

(936(/.'.

(534''.(/

('36/0.40

1+#.#2 1).44 #.3+ 223.) )3C )3.+# 2#C)!#.

22 .3 6 6 22 .3 4C32&.1+ 2#C43&.&4

24).#& 6 6 24).#& 43C22).2+ 2 C 1).1

2)4.4 6 6 2)4.4 3)C!33.1# 1#C#!&.13

3alance $heet As At ?/st

$chedule "o! $'6RC#$ '= =6")$ Shareho*derU# Fund Share $a;ita* Re#er?e# and Sur;*u#

arch >7//
As at ?/st arch, >7// (Ru;ee# in crore) As at ?/st arch, >7/7

10 1/

2,5/4!H3 05,H3H!/H

2,/16!62 00,H33!15

>/,?DC!77 >e erred Re?enue Ad?ance A%ain#t >e;reciation (AA>) Grant# in Aid

/H,01/!07

13 12

/,0H5!1H 0H0!30 >,?1C!?2

/,/03!53 046!6/ >,1/>!1H

(oan Fund# Secured (oan Un#ecured (oan

1GA 1GE

35,3/G!1H 2,GGH!H1 17,22>!CC G,03G!46 3,464!/2 /,/1D!C1 DH,C1?!20

30,32G!H6 3,1H0!10 ?1,1/D!C0 2,565!G3 3,463!1/ C7?!H/ H?,1C1!DH

>e erred TaF (ia-*it+ (Net) (e##8 Reco?era-*e &'&AL APPLICA&I'" '= =6")$ =iIed Assets Gro## E*ock (e##8 >e;reciation Net E*ock $a;ita* 7ork9in9Pro%re## $on#truction Store# and Ad?ance# Investments Current Assets, Loans and Advances In?entorie# Sundr+ >e-tor# $a#h and Eank Ea*ance# Other $urrent A##et# (oan# and Ad?ance# Less@ Current Liablities ; Provisions Current Liablities Provisions "et Current Assets iscellaneous #Ipenditure &'&AL Contin9ent Liablities 0G 05

15 G1,3G0!H6 03,0/H!61 3H,//3!46 0/,453!56 03,551!40 D?,212!HC /,?DH!7H 23,/1/!/6 00,020!1/ 3/,150!/5 01,/2/!3H 01,0H4!60 H>,12?!11 /,1H?!>>

1H 16 14

01 00 0/ 03 02

360!G0 3,05/!14 3,561!15 244!24 /,H43!46 01,G0H!03

322!41 /,/02!65 3,/HH!52 26H!G/ 3,31/!21 4,5/H!3/

0H 06

H,003!60 /,6HG!25 4,464!/H H>C!2D >!1/ DH,C1?!20 2,GGG!16

H,532!51 /,2G6!/4 01,14/!64 -1DH!HC. ?!HD H?,1C1!DH 5,25H!54

Profit and Loss Account for the year ended ?/st

$chedule "o! I"C' # Re?enue ro, O;eration# Pro?i#ion# =ritten -ack Other Inco,e

arch, >7/>

(Ru;ee# in crore) As at ?/st As at ?/st arch, arch, >7// >7/7 6,366!H 1 21!/ / 5H1!6 6 H,0/H!2 G 1!/ 0 3HG!4 / 4

04 /1 /0

&'&AL #JP#")I&6R# E,;*o+ee#U Re,uneration and Eene it# Tran#,i##ion Ad,ini#tration and Other EF;en#e# >e;reciation Pro?i#ion# Intere#t and Finance $har%e# >e erred Re?enue EF;enditure =ritten O &'&AL Pro it or the +ear -e ore taF and Prior Period Ad:u#t,ent# (e##8 Prior Period EF;enditureK (Inco,e) (Net) Profit 3efore &aI (e##8 Pro?i#ion# or TaFation 9$urrent Iear 9Ear*ier Iear# 15 /2 /G

0,700!27

C,H7?!H2

// /3

H2G!6 4 G6G!5 G /,044!3 4 3!4 6 0,H33!4 3 0!6 5 H,>C7!C7 ?,2>0!/7

H/5!H 1 G1H!2 3 0,4H4!5 4 //!0 G 0,G23!/ 2 0!H 6 1,C27!00 >,C>>!H0 45!/ H >,D>D!?> 231!3 2 (6!23 ) 1>/!0/ 9 (0!G1 ) (0!G1 ) >,>7H!0/ //G!1 / 51!1 G 11?!>? 052!4 H >,717!01 25!4 / 055!0 4 60!4 H >,??D!7>

/5

1!?C ?,2>1!C? 561!1 / 2!G 4 D21!D/ 9 9 4

Frin%e Eene it TaF 9$urrent Iear 9Ear*ier Iear#

Profit after Current &aI (e##8 Pro?i#ion or >e erred TaF 9 Tota* >e erred taF *ia-*it+ (e##8 Reco?era-*e ro, -eni iciarie# or arrear# o ear*ier +ear#

?,/17!/> 224!2 G 5!/ /

Profit after &aI Add8 Ea*ance o Pro it -rou%ht or=ard Add8 Eond Rede,;tion Re#er?e 7ritten Eack Add8 7ithdra=a* ro, STOA Re#er?e Tota* A,ount A?ai*a-*e or A;;ro;riation A;;ro;riation Interi, >i?idend Paid

>,D0D!20 >1!?? >HH!2/ /1/!>H ?,//2!>2

>?/!H/

/01!2

$or;orate >i?idend TaF Paid Pro;o#ed Fina* >i?idend Pro?i#ion or $or;orate >i?idend TaF Tran# er to Se* In#urance Re#er?e Tran# er to Eond# Rede,;tion Re#er?e Tran# er to STOA Re#er?e Tran# er to (>$ de?e*o;,ent Re#er?e Tran# er to $SR Acti?itie# Re#er?e Tran# er to Genera* Re#er?e 3alance of Profit carried over to 3alance $heet #arnin9 per $hare43asic ; )iluted KIn Rupees per shareL =ace value of Rs! /7E4 each

?2!1H HC2!C> 0?!22 1>!H? C27!CC /1/!>H /H!/D 1!2? /,/H7!77 1/!/2 ?,//2!>2 D!/0

5 3G!H H 2/1!6 6 54!4 1 3H!H G 531!0 3 60!4 H 05!2 2 6!3 4 611!1 1 >1!?? >,??D!7> 1!2H

GRAP%ICAL R#PR#$#"&A&I'" '= )A&A

"hort 7erm 2pen %ccess *ncome 7elecom 2.4!? 5evenue 2.&)? 3onsultancy 5evenue 3.2+?

Income rea<up #$% &'(()(&

2ther *ncome !.))?

7ransmission 3harges #4. 2?

3R#AG6P '= '&%#R I"C' # -C!DD8 '= &'&AL I"C' #.

)I$&RI36&I'" '= #JP#"$#$ '6& '= R#*#"6# ->7//4/>.

-Rs! In crores.
!

2&1&611 #A%. *ARN*- "R1M2 Transmission Charges Consultancy Revenue Telecom Revenue Short Term 1pen Access Income 1ther Income Total *arnings 1).+4 11.21 1#.)+ !&.33 #+.&) 21.2!

Percentage Change 2&&+61& 2&&#6&+ 24.4+ 24.)! .2! 1++.#1 A1).1#B 22.23 2).13 A13.) B 21.2+ A21.4 B A3.# B 2&.#&

2&&!6&# 2#.+) 1&.)4 )&.22 3).&# A#.&&B 24.&3

RA&I' A"ALA$I$ '= )A&A

Current Ratio
>7/74// /!H @ / /114901 0!3 8 0 /116914 0!2 8 0 /11H916 0!G 8 0

Current Ratio M Current Assets E Current Liabilities

$urrent Ratio o the co,;an+ #ho=# a #*i%ht *uctuation durin% the our +ear#, -ut it i# a*,o#t con#i#tent! A $urrent Ratio o 0!G in /101900 in co,;ari#on to 0!2 in /114901 #ho=# that the current *ia-i*itie# o the co,;an+ i# co?ered ,ore! Thi# i# ?er+ %ood a# it #ho=# that the co,;an+ can ea#i*+ ;a+ o it# current *ia-i*itie#!

Absolute Li:uid Ratio

>7/74// 7!H @ / /114901 1!2 8 0 /116914 1!2 8 0 /11H916 1!G 8 0

Absolute Li:uid Ratio M Li:uid AssetsE Current Liabilities

A-#o*ute Ratio ha# increa#ed to 1!G80 in /101900 in co,;ari#on to 1!280 a# in /114901! Increa#e in A-#o*ute *i<uidit+ Ratio #i%ni ie# that the co,;an+ ha# ha* the ?a*ue o current *ia-i*itie# in or, o ca#h and -ank to ;a+ it o

!
)&

)ebt #:uity Ratio

>7/74// DH@?H /114901 5683/ /116914 55832 /11H916 5/836

)ebt #:uity Ratio M Lon9 &erm )ebt E #:uity =und

The ;ro;ortion o e<uit+ in co,;ari#on to >e-t ha# increa#ed in /101900 in co,;ari#on to /114901! In#;ite o Eond# i##ue and increa#e in *oan# a# #ource o und, thi# increa#e in E<uit+ i# ,ain*+ due to the increa#e in the Re#er?e# and Sur;*u# o the co,;an+! Thi# increa#e in the E<uit+ Pro;ortion #ho=# that the co,;an+ i# tr+in% to increa#e the E<uit+ O=ner#hi; and thi# in#ti**# ;o#iti?it+ in the e<uit+ #hare ho*der#!

"et Profit to Capital #mployed

>7/74// C!2?8 /114901 H!0/J /116914 G!4GJ /11H916 G!56J

"et Profit to capital #mployed M -"et Profit durin9 the year E Capital #mployed.N/77
The Net Pro it to $a;ita* e,;*o+ed ratio ha# increa#ed o?er the +ear# and or Financia* Iear /101900 it =a# H!63J! Thi# i# a ,arked i,;ro?e,ent in co,;ari#on to /11H916 =hen the ratio =a# G!56J! The continuou# increa#e in the ratio #i%ni ie# that the Net Pro it return o the co,;an+ o?er the ca;ita* e,;*o+ed ha# #tren%thened o?er the +ear#!

)1

"et Profit to "et (orth

>7/74// />!D?8 /114901 0/!63J /116914 00!GHJ /11H916 01!H3J

"et Profit to "et (orth M -"et Profit durin9 the year E "et (orth.N/77
Thi# ratio #ho=# a #*i%ht a** in inancia* +ear /101900 =hen co,;ared to that o inancia* +ear /1149 01! The a** o 1!/1J i# ho=e?er ,ere*+ e ecti?e!

#arnin9s Per $hare

>7/74// D!/0 /114901 2!6G /116914 2!1/ /11H916 3!5

#arnin9 Per $hare M "et #arnin9s durin9 the year E &otal $hares
The earnin%# ;er #hare o the co,;an+ ha# increa#ed o?er the +ear#, and in /101900 it =a# 5!04 in co,;ari#on to /114901 =hen it =a# 2!6G! There ha# -een a ri#e o /H!53J =hich #ho=# that the earnin%# o the o=ner# o the co,;an+ ha# increa#ed o?er the +ear#! Thi# i# i,;ortant in the conteFt that it in#ti**# a# #en#e o ;o#iti?it+ and o=ner#hi; a,on% the #hare ho*der#!

=iIed Assets to Lon9 &erm =unds

>7/74// 7!00 /114901 1!44 /116914 1!46 /11H916 1!45

=iIed Assets to Lon9 &erm =und M =iIed Assets E Lon9 &erm =unds
The iFed a##et# to *on% ter, und ratio i# con#i#tent in co,;ari#on to /101900! Ratio o 1!44 #ho=# that (on% ter, und# co?er the tota* iFed a##et# o the co,;an+! Thi# di#;*a+# e ecti?e uti*i@ation o *on% ter, und#!

Interest Covera9e Ratio

>7/74// /!>/ times /114901 1!H1 ti,e# /116914 1!35 ti,e# /11H916 1!/4 ti,e#

Interest Covera9e Ratio M Profit 3efore Interest and &aIE Interest paid durin9 the year
Thi# ratio ha# increa#ed o?er the +ear# and in the inancia* +ear /101900 it =a# 0!/0 ti,e#! Thi# i# a H0!60J increa#e in co,;ari#on to inancia* +ear /114901! Ratio o 0!/0 ti,e# #ho=# that the intere#t ;aid -+ the co,;an+ i# =e** co?ered throu%h it# ;ro it#!

)ividend Covera9e Ratio

)2

>7/74// ?!?? times

/114901 3!/3 ti,e#

/116914 3!3G ti,e#

/11H916 /!6H ti,e#

)ividend Covera9e Ratio M Profit After &aI E )ividend Paid durin9 the year
The di?idend co?era%e ratio i# a*,o#t con#i#tent o?er the +ear#! Ratio o 3!33 ti,e# #ho=# that the co,;an+ i# ca;a-*e o ;a+in% 3!33 ti,e# the ;re#end di?idend it i# ;a+in%! Thi# di#;*a+# the #ound ;o#ition o the co,;an+!

(or+in9 Capital &urnover Ratio

>7/74// /C!/D times /114901 05!0/ ti,e# /116914 9 ti,e# /11H916 02!2/ ti,e#

(or+in9 Capital &urnover Ratio M $ales E (or+in9 Capital

The 7orkin% $a;ita* Turno?er Ratio ha# increa#ed to 0H!05 ti,e# in inancia* +ear /101900 in co,;ari#on to 05!0/ ti,e# in inancia* +ear /114901! Thi# ratio #i%ni ie# that the ;re#ent Sa*e# i# 0H!05 ti,e# the =orkin% ca;ita* re<uire,ent o the co,;an+!

Return on Assets
>7/74// 1!/78 /114901 3!6/J /116914 3!5HJ /11H916 3!H4J

Return on Assets M -Profit After &aI E &otal Assets.N/77

The return on a##et# ratio i# continuou#*+ increa#in% o?er the+ +ear#! The ratio o 2!01J in inancia* +ear /101900 #ho=# that the Pro it A ter TaF o the co,;an+ account# to 2!01J o the Tota* A##et# ?a*ue o the co,;an+!

Return on $a;ita* E,;*o+ed

/101900 1!1104 ti,e# /114901 1!110G ti,e# /116914 1!113/ ti,e# /11H916 1!11/G ti,e#

Return on Capital #mployed M "et Profit E Capital #mployed

The Return on $a;ita* E,;*o+ed ha# ,ar%ina**+ increa#ed in /101900 in co,;ari#on to /114901!

"et Profit
>7/74// >?!728 /114901 02!22J

ar9in
/116914 6!32J /11H916 H!H0J

"et Profit

ar9in M - Profit 3efore Interest and &aI E $ales .N /77

)3

&otal #arnin9 to #Ipenses -8.

>7/74// /!C? times /114901 0!GH ti,e# /116914 0!63 ti,e# /11H916 0!51 ti,e#

&otal #arnin9s to #Ipenses M &otal #arnin9s E &otal #Ipenses

The tota* earnin%# o the co,;an+ in /101900 i# 0!H3 ti,e# the tota* eF;en#e! Thi# ratio ha# increa#ed ro, 0!GH in /114901 to 0!H3 in /101900! Thi# #ho=# that the earnin%# o the co,;an+ are ca;a-*e o co?erin% the eF;en#e# e ecti?e*+!

Comparative Position $tatement As At ?/st

arch >7/>

(Ru;ee# in crore) )4

$chedule "o! $'6RC#$ '= =6")$ $hareholderOs =und $hare Capital Reserves and $urplus 10 1/

As at ?/st arch, >7//

As at ?/st $han%e arch, >7/7

J $han%e

2,5/4!H3 05,H3H!/H >/,?DC!77

2,/16!62 00,H33!15 /H,01/!07

2/1!64 G,112!/0 G,2/G!01

01!11 2/!5G 32!13

)efferred Revenue Advance A9ainst )epreciation -AA). Grants in Aid 13 12 /,0H5!1H 0H0!30 >,?1C!?2 /,/03!53 046!6/ >,1/>!1H (3H!G5) (/H!G0) (5G!1H) 90!H1 903!62 9/!H1

Loan =unds $ecured Loan 6nsecured Loan 1GA 1GE 35,3/G!1H 2,GGH!H1 17,22>!CC 30,32G!H6 3,1H0!10 ?1,1/D!C0 2,4H4!/4 0,265!54 5,25G!46 0G!64 26!20 06!H4

)efferred &aI Liablity -"et. Less@ Recoverable

G,03G!46 3,464!/2 /,/1D!C1

2,565!G3 3,463!1/ C7?!H/ H?,1C1!DH

224!2G 5!// 223!/3 0/,/54!/2

4!G4 1!05 53!11 //!42

&'&AL

DH,C1?!20

APPLICA&I'" '= =6")$ =iIed Assets Gross 3loc+ Less@ )epreciation "et 3loc+ Capital (or+4in4Pro9ress 1H 15 G1,3G0!H6 03,0/H!61 3H,//3!46 0/,453!56 23,/1/!/6 00,020!1/ 3/,150!/5 01,/2/!3H H,024!G1 0,465!H6 G,05/!H/ /,H/0!30 05!GG 0H!63 05!01 /5!GH

Construction $tores and Advances

16

03,551!40 D?,212!HC

01,0H4!60 H>,12?!11 /,1H?!>>

3,260!01 00,35G!03 (66!0H)

32!/1 /0!5G 95!1H

Investments Current Assets, Loans and Advances

14

/,?DH!7H

Inventories $undry )ebtors Cash and 3an+ 3alances 'ther Current Assets Loans and Advances

01 00 0/ 03 02

360!G0 3,05/!14 3,561!15 244!24 /,H43!46 01,G0H!03

322!41 /,/02!65 3,/HH!52 26H!G/ 3,31/!21 4,5/H!3/

35!50 42H!/3 21/!2/ 00!4H (G16!2/) 664!60

01!50 2/!HH 0/!/6 /!25 90G!21 4!/2

Less@ Current Liablities ; Provisions

Current Liablities Provisions

0G 05

H,003!60 /,6HG!25 4,464!/H

H,532!51 /,2G6!/4 01,14/!64 -1DH!HC. ?!HD H?,1C1!DH 5,25H!54

(G/1!H4) 20H!0H (013!5/) 443!23 (0!0G) 0/,/54!/2 (0,40/!50)

95!6/ 05!4H 90!13 9/03!36 93/!31 //!42 9/4!GH

"et Current Assets iscellaneous #Ipenditure &'&AL Contin9ent Liablities 06 0H

H>C!2D >!1/ DH,C1?!20 2,GGG!16

Comparative Income $tatement for the year ended ?/st

$chedule "o!

arch, >7/>
J $han%e ))

(Ru;ee# in crore) As at ?/st As at ?/st $han%e arch, arch,

>7// I"C' # Revenue from 'perations Provisions written bac+ 'ther Income &'&AL #JP#")I&6R# #mployeesO Remuneration and 3enefits &ransmission Administration and 'ther #Ipenses )epreciation Provisions Interest and =inance Char9es )eferred Revenue #Ipenditure written 'ff &'&AL Profit for the year before taI and Prior Period Ad<ustments Less@ Prior Period #IpenditureE -Income. -"et. Profit 3efore &aI Less@ Provisions for &aIation 4Current Aear 4#arlier Aears 561!1 / 2!G 4 D21!D/ =rin9e 3enefit &aI 4Current Aear 4#arlier Aears 9 9 4 Profit after Current &aI Less@ Provision for )eferred &aI 4 &otal )eferred taI liablity Less@ Recoverable from benificiaries for arrears of earlier years ?,/17!/>

>7/7

04 /1 /0

6,366!H1 21!// 5H1!66 0,700!27

H,0/H!2G 1!/0 3HG!4/ C,H7?!H2

0,/50!/ G 21!1 0 /42!4 5 0,G45!/ / 04!0 4 H6!/ / /04!H 1 (06!0H) 041!5 4 1!1 6 264!H 0 0,015!G 0 (40!41) 0,046!2 0 /24!5 6 03!1 / /5/!H 1

0H!H1 041G/!36 H6!25 /0!/H

// /3 15 /2 /G

H2G!6 4 G6G!5 G /,044!3 4 3!4 6 0,H33!4 3 0!6 5 H,>C7!C7 ?,2>0!/7

H/5!H1 G1H!23 0,4H4!54 //!0G 0,G23!/2 0!H6 1,C27!00 >,C>>!H0 45!/H >,D>D!?> 231!32 (6!23) 1>/!0/ 9 (0!G1) (0!G1) >,>7H!0/

/!52 0G!20 00!01 96/!13 0/!35 2!24 01!/2 21!52 94G!25 2G!53 G6!1/ 90G2!2G 5/!/5

/5

1!?C ?,2>1!C?

0!G 1 0!G 1 432!/ 0 //2!2 3 (G3!63)

9011!11 9011!11 2/!3G

224!2 G 5!/ /

//G!1/ 51!1G

44!H2 964!52

)!

11?!>? Profit after &aI Add@ 3alance of Profit brou9ht forward Add@ 3ond Redemption Reserve (ritten 3ac+ Add@ (ithdrawal from $&'A Reserve &otal Amount Available for Appropriation Appropriation Interim )ividend Paid Corporate )ividend &aI Paid Proposed =inal )ividend Provision for Corporate )ividend &aI &ransfer to $elf Insurance Reserve &ransfer to 3onds Redemption Reserve &ransfer to $&'A Reserve &ransfer to L)C development Reserve &ransfer to C$R Activities Reserve &ransfer to General Reserve 3alance of Profit carried over to 3alance $heet >,D0D!20 >1!?? >HH!2/ /1/!>H ?,//2!>2

052!4H >,717!01 25!4/ 055!04 60!4H >,??D!7>

/H6!/ 5 5GG!4 G (//!G4) 64!5 / G4!/ 6 H6/!/ 5 /0!1 G /!5 6 0GH!6 2 /3!4 6 2!H 6 0G1!5 2 G4!/ 6 (0!/6) (3!G5) 3G1!1 1 05!6 G H6/!/ 5 0!3 2

056!5H 3/!02 926!0G G3!43 H/!3/ 33!24

>?/!H/ ?2!1H HC2!C> 0?!22 1>!H? C27!CC /1/!>H /H!/D 1!2? /,/H7!77 1/!/2 ?,//2!>2

/01!25 3G!HH 2/1!66 54!41 3H!HG 531!03 60!4H 05!22 6!34 611!11 >1!?? >,??D!7> 1!2H

01!11 H!24 3H!G1 32!30 0/!55 /3!40 H/!3/ 9H!H4 92/!23 23!HG 54!/5 33!24 /H!53

#arnin9 per $hare43asic ; )iluted KIn Rupees per shareL =ace value of Rs! /7E4 each

D!/0

)#

CO3CL/SIO3
?ased on Graphica! Data and Ratio Ana!#sis

inancia! 8ear 9::;<:= to

)+

&inancia! #ear 9:>><>9

The Ana*+#i# he*;# u# conc*ude the o**o=in% =ith re#;ect to Ana*+#i# o $on#u*tanc+ Ser?ice and Re?enue89 0! PO7ERGRI> -+ di?er#i +in% into other #er?ice# #uch a# $on#u*tanc+ and Te*eco, ha# increa#ed it# O;eratin% Inco,e and Net Pro it o?er the +ear#! /! The $on#u*tanc+ Re?enue ha# increa#ed o?er the +ear#, =hich i,;*ie# that the #er?ice i# -rinin% in %ood re?enue to the or%ani@ation! 3! E+ kee;in% a,ount o con#u*tanc+ ee iFed V0GJ or 0/J (a# a;;*ica-*e) o?er the tota* ;ro:ect co#t, PO7ERGRI> en#ure# that it earn# ;ro it ro, each a##i%n,ent it take#! There i# no chance o incurrin% *e##K no ;ro it -+ the or%ani@ation in an+ con#u*tanc+ a##i%n,ent! 2! PO7ERGRI> i# ,akin% the -e#t u#e o it# kno= ho= and eF;erti#e in the ie*d o Tran#,i##ion, and uti*i@in% it to %enerate eFtra re?enue! The $o,;an+ ha# -een a-*e to ;rocure internationa* a##i%n,ent# o?er the +ear# in addition to a##i%n,ent# =ithin the countr+! G! Joint "enture a# a ;art o con#u*tanc+ ha# a*#o he*;ed the co,;an+ %enerate eFce## re?enue o?er the +ear#! 5! The co,;an+ ha# #een #i%ni icant increa#e in Tota* Re?enue in the inancia* +ear /101900! There ha# -een an increa#e o /0!/HJ in the tota* earnin%# o the co,;an+ in /101900 =hen co,;ared to /114901!In /101900, each #er?ice -ein% rendered -+ PO7ERGRI> ha# etched in Inco,e in eFce## to that in /114901! H! The $urrent Ratio and A-#o*ute (i<uid Ratio o the co,;an+ ha# increa#ed ro, 0!380 and 1!280 in /114901 to 0!G80 and 1!G80 in /101900 re#;ecti?e*+, =hich #ho=# that the co,;an+ i# ,aintain a #tron% #et o $urrent A##et# in co,;ari#on to it# $urrent (ia-i*itie#! 6! The de-t e<uit+ ratio o 5G83G in /101900 in co,;ari#on to 5683/ in /114901 #ho=# that the co,;an+ i# increa#in% the o=ner# #hare in the co,;an+!

!&

4! The earnin%# ;er #hare ha# increa#ed to 5!04 in /101900 ro, 2!6G in /114901 a*on% =ith increa#e in re?enue o the co,;an+! Thi# ,ean# that the inco,e o the o=ner# i# increa#in%! 01! Stron% intere#t co?era%e ratio o 0!/0 ti,e# in /101900 #i%ni ie# that the co,;an+ i# =e** ca;a-*e o incurrin% and ;a+in% o the ;re#ent intere#t! 00! The Net Pro it Mar%in ha# increa#ed ro, 02!23 in /114901 to /3!16 in /101900! Thi# ,ean# that the co,;an+ ha# cut do=n #i%ni icant*+ on it# eF;en#e# durin% the inancia* +ear /101900, and thi# ha# he*;ed the co,;an+ to %enerate ,ore Pro it# ! 0/! The increa#e in Net Pro it Mar%in ha# re#u*ted in increa#e in Re#er?e# and Sur;*u# o the co,;an+, =hich in return ha# increa#e# the Shareho*derB# und -+ 32!13J o?era**! 03! The o?era** re#u*t o Increa#e in Re?enue throu%h O;eration# can -e #een in the act that the co,;an+ ha# di#tri-uted 01J eFce## interi, di?idend to the #hareho*der# in /101900 in co,;ari#on to /114901 and the ;ro;o#ed di?idend i# a*#o increa#ed -+ 3H!G1J in /101900 =hen co,;ared to /114901!

RECO''E3DATIO3S
0! 7ith the eF;erti#e PO7ERGRI> ;o##e##e#, the co,;an+ #hou*d or, Joint "enture# =ith ;ro,inent ,anu acturin% indu#trie# #o that it can ,anu acture e<ui;,ent# and ,ateria*#! Thi# =ou*d he*; PO7ERGRI> increa#e it# Re?enue e?en ,ore! /! PO7ERGRI> ha# a *ar%e ,an;o=er -a#e! Thi# a##et can -e -etter uti*i@ed i PO7ERGRI> ,o?e# into con#u*tanc+ re*ated to other #ource# o ener%+! 7ith the %ood=i** and eF;erti#e the co,;an+ ho*d#, it i# -ound to eFce* in thi# ie*d a# =e**! 3! PO7ERGRI> ha# o;;ortunitie# to eFtent #er?ice and or, Joint "enture# =ith ,an+ State Uti*itie# or inter#tate tran#,i##ion! Mani;ur, Uttar Prade#h, )arnataka and Jharkhand are %ood -u#ine## ;ro#;ect#! 2! Mo#t $entra* Pu-*ic Ser?ice Undertakin%# are not u**9 *ed%ed to render Trainin% and >e?e*o;,ent acti?itie#! PO7ERGRI> ha# an o;;ortunit+ in thi# conteFt! G! PO7ERGRI> i# in ta*kin% ter,# =ith $PSUB# in coa*K#tee*K ,inin% #ector! O;;ortunitie# #ti** *ie in Petro*eu, Sector!

!1

?I?LIOGRAPH8
0! Annua* Re;ort o PO7ER GRI> $ORPORATION OF IN>IA (IMITE> & FI! /10090/ /! Annua* Re;ort o PO7ER GRI> $ORPORATION OF IN>IA (IMITE> & FI! /101900 3! Annua* Re;ort o PO7ER GRI> $ORPORATION OF IN>IA (IMITE> & FI! /114901 2! Annua* Re;ort o PO7ER GRI> $ORPORATION OF IN>IA (IMITE> & FI! /116914 G! Annua* Re;ort o PO7ER GRI> $ORPORATION OF IN>IA (IMITE> & FI! /11H916 5! Annua* Re#u*t Re;ort o /10090/
!. ===!;o=er%ridindia!co,

!2