Danfes

POWERGRID stands as one of the leading transmission utilities in the world, expanding its network in integrated manner, which is missing even in developed countries.  This has been feasible and possible only because the responsibility and authority for establishment and operation of the grid along with Load Despatch Centres is with a single agency i.e. POWERGRID. It has emerged that whichever country has separated the responsibilities of establishment and operation of the grid along with Load Despatch Centres; system expansion in that country has been adversely affected because of lack of single source responsibility, authority & appreciation for grid expansion and management. This has led to increased system outages.

For grid management, POWERGRID has adopted prudent operational practices, undertaken preventive maintenance, facilitated implementation of availability based tariff (ABT) & free mode governor operation (FMGO), undertaken modernization of regional load despatch & communication systems, provided intensive training and deployed expert manpower. The World Bank has commended the company’s efforts in modernization of Regional Load Despatch Centres (RLDCs).

In the financial year of 2003-04, POWERGRID registered a profit of Rs. 748 crore over a turnover of Rs. 2,805 crore, recording a growth of 10% in turnover and 15% in net profit compared to previous year 2002-03. The net profit though appears to be high, but if seen in the perspective of company’s net worth and gross block, it is not that attractive. The financial performance could have been better but for continued revenue gap in North-Eastern region and delayed commissioning of hydro-projects that has adversely affected the return on investments.

POWERGRID has replaced costly loans worth Rs.1,575 crore with cheaper loans, which has resulted into reduction of tariff by Rs. 90 crore in 2003-04. This saving has been passed on to various beneficiary states.

An Investment of Rs.70, 000 crore is planned for creation of National Grid during 10th and 11th Plans. Out of this, POWERGRID’s share is Rs.50,000 crore. In spite of conservative return on investment, as stated above, POWERGRID would be able to arrange its share. However, proposed investment of Rs. 20,000 crore through private sector largely depends on government policy and CERC regulations.

The company is operating around 48,000 circuit kms of Extra High Voltage transmission lines along with 82 Nos. of EHVAC & HVDC sub-stations with a transformation capacity of about 46,500 MVA, which carry about 40% (45,000 MW) of the total power generated in the country. While achieving this, POWERGRID has developed unique mechanism to control conceptualization/procurement/ implementation time cycle of the projects.

As a part of Power Sector Reform process, the Electricity Act 2003 has enabled "Open Access" to the transmission network. CERC’s notification in this regard is a major landmark. POWERGRID, as directed by CERC, has issued procedures and guidelines for short-term and long-term ‘Open Access’, which is working very satisfactorily.

POWERGRID has been persistent in its efforts to enhance inter-regional power transfer capacity to facilitate optimal utilization of generating resources. With the commissioning of Thyristor Controlled Series Capacitor (TCSC) on Raipur-Rourkela 400 kV D/c line in August 2004, inter-regional power transfer capacity has increased to 9,000 MW. Transfer of 22,000 MUs of energy across the regions was facilitated during the year 2003-04, an impressive increase of 70% over the previous year. This transfer has taken place mostly from power surplus eastern region to other regions. Thus, power worth Rs. 4,400 crore was exchanged amongst the regions. It has generated economic activities worth Rs. 88,000 crore, considering 20 times addition in economy with addition of each rupee worth of energy. 

Regarding private investment, POWERGRID had taken decision to adopt two routes namely joint venture (JV) route and independent power transmission company (IPTC) route. Because of high risk involved, IPTC route has not taken off, while JV route appears to be a workable option. On JV route excellent progress has been made. The first JV of Tata Power and POWERGRID i.e. the "POWERLINKS" is implementing the transmission system associated with Tala project and East North Inter-connector. The project is progressing satisfactorily and will be completed in time. Response of the financers to this project had been excellent and this is also being treated as a model for public-private partnership in India and abroad.
  Major funding partner i.e. International Finance Corporation (IFC), Washington, USA, has said, "This is a landmark transaction for India and we believe this is the first Joint Venture transmission project in a developing country in Asia. The project is an excellent example of public-private partnership and has great potential to be replicated in order to attract private investment into infrastructure."

Formation of JVs for implementation of transmission system associated with Koldam & Parbati-II HEPs estimated to cost Rs. 600 crore is in advanced stage of finalization.  Encouraged by the response received, POWERGRID has embarked upon the process of selection of JV partner for implementing a huge project costing Rs. 4800 crore, namely, WR System Strengthening Scheme - II. 

Towards technological advancement, POWERGRID has established fully automated remote controlled 400 KV substation at Bhiwadi in Rajasthan; the first in Indian power sector. Another six substations to be remote-controlled are under execution in various parts of the country. POWERGRID is planning to establish more and more substations with remote-control with a purpose to reduce manpower cost, leading to economy in operation.

POWERGRID has decided to establish a "Centre for Power Transmission Research and Application" which shall supplement the facilities of existing research institutions and provide opportunities for applied research in power transmission sector.  The Company has also constituted an advisory body consisting of eminent experts from power utilities, research and academic institutions and consultants from India as well as from Canada, USA, and Brazil to facilitate adoption of latest technologies for construction, monitoring and maintenance of transmission system suiting Indian conditions.

Transparency in procurement has been a matter of public debate and will continue to be so.  POWERGRID is eager to take a leadership position in this context too. The Company has made a detailed "work and procurement policy" in two volumes; Vol-I for pre-award activities and Vol-II for post-award activities. These policy guidelines are followed in all procurement & project implementation and have been posted on web for the information of all concerned. This has been acclaimed by one and all and its clearly defined procedures/guidelines have brought confidence in the Company’s personnel. POWERGRID has also started uploading complete bidding document including tender drawings on its website for the benefit of all concerned.

To continue this process further, committees of eminent experts have been constituted to advise on various issues related to procurement, project implementation, financial and environmental & social safeguard etc.