Professional Documents
Culture Documents
DIRECTORS’ REPORT
To,
The Members,
Your Directors are pleased to present the TENTH ANNUAL REPORT together with Audited Accounts
for the Tenth Financial Year ended on 31st March, 2009.
Performance of the Company
Operation and Projects
With an objective as mandated in Electricity Act, 2003 to build, operate and maintain an efficient
Power Transmission System in the State of Gujarat being the State Transmission Utility (STU) your
Company is on the path to achieve global standards in transmitting reliable and quality power in the
State of Gujarat. At the end of the Financial Year 2008-09, the Gross Fixed Asset base of Rs.
6070.99 Crores consists of about 37415 Circuit Kms. of High Voltage Transmission Line, 990 No. of
Sub-stations with Transmission capacity of about 47684.5 MVA (Previous Year 44932 MVA) and
transmits total power generated in the State of Gujarat and central sector to the distribution licensees
in the State.
During the year 2008-09, the Sub-Station availability has been maintained at a level of 99.77 %
which is well above Gujarat Electricity Regulatory Commission norms through deployment of modern
Operation & Maintenance techniques and has also recorded the lowest rate of Outages per Line per
Year.
Highlights of 2008-09
Total installed capacity for Gujarat was 9992.43 MW as on 31st March, 2009. The addition of new
generating capacities, good performance from existing generators, moderate weather and good
support from renewable sources, all helped in creating a positive electricity supply position during
year 2008-09.
A new record for peak demand of 9437 MW was set on 25.03.09. The demand catered during year
was 68963 MUs. The maximum energy demand catered during single day was 214.168 MUs on
25.03.09 set a new record.
Improved supply conditions, developing electricity market, increase in wind generation, moderate
weather altogether and effective control and monitoring measures reduced number of instances of
emergency measures.
I. State Grid Operation
State Load Dispatch Centre
The State Load Dispatch Centre is the nerve centre for the planning, operation, monitoring and
control of power system. At the Load dispatch centre, the essential activities of Load Dispatch are
being discharged like pre-dispatching activities including scheduling of generation and operational
planning, real time dispatch etc. Also, continuous monitoring for the healthiness of the system and
taking appropriate preventive as well as corrective action to deal with the system emergencies and
post dispatch activities relating to system performance for efficient operation of the power system
are being taken care of as an apex body. The State Load Dispatch centre has to closely monitor the
control of the frequency, voltage, tie line flows, economic generation, switching operations etc. to
achieve maximum security and efficiency.
GUJARAT ENERGY TRANSMISSION CORPORATION LTD.
10th Annual Report 2008-09
Sr Granted
Category Total MUs
No up to (MW)
1 Intra State Short term Open Access 25 24.576
2 Inter State Collective Transactions (PX) 85 86.472
3 Inter State Bilateral Transaction 441 501.696
Total 551 612.744
1st half of
F.Y. 2008-09 F.Y. 2007-08
F.Y.2009-10
Sub – Stations 99.77 99.81 99.77
Transmission Losses in %
& Deputy Engineers using INTRANET network across Gujarat in each Circle offices
simultaneously.
The training program is being arranged continuously up to Division level for implementation of
e-Urja system.
Human Resource Development
In the emerging power sector scenario, it is utmost necessary to equip the human capital to face
the challenges of today & tomorrow. All endeavors have been made for developing human resources,
so as to ensure contribution from one & all for organizational development through various training
programmes. Large numbers of need based training programmes have been arranged successfully in
close co-ordination with Gujarat Energy Training & Research Institute (GETRI), Baroda. For
specialized and focused programmes officers / employees were deputed for training in various
reputed institutions.
The details of training programmes imparted during the period April, 2008 to March, 2009 are as
under:
No. of employees
Sr. Category No. of participated in the training
No. Programmes
I & II III & IV Total
1. Technical 287 616 5598 6214
2. Non-technical 167 1051 865 1916
TOTAL 454 1667 6463 8130
Recently transition from ISO 9001:2000 to ISO 9001:2008 was successfully completed by GETCO
and certified for ISO 9001 : 2008.
IV. Finance & Accounts
Operating Cost
The highlights of the performance of the Financial Year 2008-09 are as follows:
Particulars 2008-09
Repairs & Maintenance 13227
Employee Costs 37144
Administration & General Expenses 4737
Depreciation & related debits 18902
Interest 23967
Revenue
The major element of revenue for the Company is Transmission charges which is receivable from
the four DISCOMs, M/s GUVNL and also from C.P.P. using Transmission networks. The expected
revenue is fairly certain, as it has no variable component. During the year GETCO has earned total
revenue of Rs. 81576 lakhs and charged on percentage share of drawl to M/s Gujarat Urja Vikas
Nigam Ltd. (GUVNL), DISCOMs and C.P.P.etc.
Interest and Finance Charges
Interest and Finance charges for the year under review are Rs. 23967.22 lakhs which is worked out
on the basis of liabilities allocated by M/s. Gujarat Urja Vikas Nigam Ltd. (GUVNL) to the Company,
and loans availed by the Company.
Income Tax
A provision of Rs. 498.99 lakhs has been made being Minimum Alternate Tax (MAT) on book profit
before Tax of Rs. 4542.55 lakhs.
Share Capital
The opening balance of Share Capital was Rs. 45.01 lakhs. During the year 2008-09, the company
has allotted further 38,92,66,604 Equity Shares of Rs. 10/- each fully paid up to M/s GUVNL as per
the notification of GoG, notifying the final Share Capital into Equity Share Capital and Equity Share
Premium. As a result, Equity Share Capital of the Company as on 31st March 2009 is Rs.38971.67
Lakhs.
Further, during the year 2008-09, the company has received Rs.5000 lakhs from GUVNL towards
share application money against which shares allotment has been made in current year 2009-10.
Secured and Unsecured Loans
The Government of Gujarat (GoG) has apportioned total Loans of erstwhile GEB as Long Term and
Short Term Loans respectively, which have been transferred to the successor transferee companies.
In absence of specific Government Order for apportionment of such loans and Multilateral Facility
GUJARAT ENERGY TRANSMISSION CORPORATION LTD.
10th Annual Report 2008-09
and Securities Sharing agreement between GUVNL transferee Companies and lenders, these loans
have been considered as Secured/Unsecured allocated loans from GUVNL.
During the year under report, Company has availed Secured/Unsecured loans from banks, PFC and
REC directly for its funding requirements. The same is shown under Secured/Unsecured loans as per
Security given.
Commercial / Financial performance
Major element of revenue – Transmission Charges is receivable from M/s Gujarat Urja Vikas Nigam
Ltd. (GUVNL), DISCOMs and C.P.P.etc. The expected revenue is fairly certain, as it has no variable
component.
The company being a regulated Utility, the turnover and the profitability is subject to regulatory risk.
During the year, GETCO has charged on percentage share of drawl to M/s Gujarat Urja Vikas Nigam
Ltd. (GUVNL), DISCOMs and C.P.P. etc and the turnover and profit after tax for the year under
review on this account booked are Rs. 81576.00 lakhs and Rs. 3587.41 lakhs respectively.
Dividend
As we are still in the consolidation phase in our fourth year of operation, no Dividend on Equity Shares
for the Financial Year 2008-09 is recommended.
Cost Auditor
The Government of India, Ministry of Company Affairs, Cost Audit Branch, New Delhi, in exercise of
powers conferred u/s. 233 B(1), issued Cost Audit Order to audit Cost Accounting Records and
Books of Accounts maintained by the Company in respect of Electricity Industry. Accordingly, the
Board of Directors appointed M/s. Y. S. Thakar & Associates as Cost Auditors for the F.Y. 2008-09
which have been approved by the Central Government to conduct the Cost Audit of transmission of
power related Electricity Industry of the Company. M/s. Y. S. Thakar & Associates were reappointed as
Cost Auditors for the F.Y. 2009-10 by the Board of Directors.
Statutory Auditors
The Comptroller and Auditor General of India, New Delhi vide its letter no. CA V/COY/GUJARAT,
GJETCL(1)/629 dated 25-8-2008, appointed M/s. Ramanlal G. Shah & Co., Chartered Accountants,
Ahmedabad as Statutory Auditors of the Company to audit annual accounts of the company for the
year ended 31st March, 2009. M/s. Ramanlal G. Shah & Co., Chartered Accountants, Ahmedabad
have been reappointed as the Statutory Auditor of the company for the current Financial year 2009-
10 by the Office of the Comptroller & Auditor General of India (CAG) i.e. Central Government.
Auditors Report
The notes to the accounts referred to in the Auditor’s Report are self explanatory and therefore do
not call for any further comments.
The report/comments of the Comptroller & Auditor General of India pursuant to Section 619(4) of
the Companies Act, 1956 are awaited and the same shall be sent as soon as received along with
management reply to comment, if any, as an addendum forming part of this report.
V. Future outlook & challenges
v Land acquisition for Substations
v Right of way for Transmission lines
GUJARAT ENERGY TRANSMISSION CORPORATION LTD.
10th Annual Report 2008-09
3. proper and sufficient care had been taken for the maintenance of adequate accounting records
in accordance with the provision of the Companies Act, 1956 for safeguarding the assets of
the Company and for preventing and detecting fraud and other irregularities, and
4. The annual accounts had been prepared on a going concern basis.
ACKNOWLEDGMENT
Your directors place on record their sincere thanks for the guidance and co-operation extended all
through by the Ministry of Power, Gujarat Electricity Regulatory Commission (GERC), Ministry of
Environment and Forest, Provident Fund Offices, concerned Government Authorities/Departments
both at the State and Central level for their active support .The Management also extends its
sincere thanks to the customers of the Corporation.
Your Directors also place on record grateful thanks to the various Banks and Financial Institutions for
their continued trust and confidence reposed by them by rendering timely financial assistance for
successful implementation of the Projects by the Company .The Board further immensely thank the
Holding Company M/s Gujarat Urja Vikas Nigam Ltd. (GUVNL) for its co-operation and in giving
valuable support and guidance in every field to the Company.
Last but not the least, the Board of Directors place on record the deep appreciation for the valuable
services rendered by all its employees.
ANNEXURE –I
TO THE DIRECTORS’ REPORT
[A] Conservation of Energy
Gujarat Energy Transmission Corporation Limited is committed to “conserve energy” to save scare resources.
The requisite consistency in efficiency, effectiveness in utilization of energy and ensuring quality power are
main concern, resulting into protection of environment and nature, safe and healthy living. To promote the
objective of energy conservation multi pronged efforts are envisaged and being taken. GETCO has framed
energy conservation policy covering following aspects.
v Promote energy conservation awareness in the society & industries by awareness programs:
The banners depicting energy saving slogans is displayed in offices, substations etc. so that
general public can view it.
Information for adopting energy conservation measures in their premises is given to visiting
consumers.
Switch off the office lights, fans, computer monitors & air- conditioners during recess time and
after office hours.
Pamphlets containing energy saving measures is given to visiting public.
v Adopting appropriate energy conservation state of the art technology and appropriate measures,
which are economically viable:
Energy efficient tube-light is provided to all substations.
Removal of pneumatic operated circuit breaker to spring operated & prevention of air leakage
to reduce running hours of compressor.
Thermo vision scanning of network for checking of loose connection & over heated joints to
prevent loss of energy.
Adoption of standard auxiliary consumption limits in all substations for conservation of energy.
Shifting of light loaded transformer for optimum utilization to increase efficiency.
Reduction of outages of network for maximum availability for reduction of energy losses due to
overloading of other lines during outages.
Reactive power management: use data from Data Requisition System (DAS) and take corrective
measures by asking Discoms to appropriately manage reactive power at lower voltage. We
also take up shifting of capacitor bank to serve needing substation for reactive power.
Addition and monitoring of capacitor bank for reduction in energy losses.
v Adoption of the concept of Life Cycle Cost (LCC) by considering energy cost as an important element.
Energy audit of EHV substation namely Asoj, Haldarwa etc. were carried out.
v Standardized electricity system layouts in sub station from energy efficiency point of view and monitor
the consumption.
The use of lower losses material for transmission hardware will reduce the transmission losses. Items like
switchgear are even suitably selected and evaluated prior to the award, considering the most efficient
operation from thermal and loss efficiency point of view. Various other equipments, parameters and types
are also selected so as to curtail the losses.
Also the efforts are made for conservation of energy by way of selection of energy efficient equipments to
lower losses and various alternatives are also studied at the time of finalization of the transmission system
for any new project.
Further, to improve voltage profile and quality of power in low voltage pockets, particularly in Agriculture
season, 100 MVAr, 132 KV capacitor banks are commissioned at Paliyad, Vallabhipur, Junagadh & Haripur
GUJARAT ENERGY TRANSMISSION
CORPORATION LTD.
10th Annual Report 2008-09