April, 2006

PRESENTATION BY

POWERGRID

FORMATION OF POWERGRID

POWERGRID was formed in 1989 POWERGRID was formed in 1989 and began commercial operation and began commercial operation from 1992 – 93 with the following from 1992 – 93 with the following mission:mission:

““Establishment and Operation of Regional Establishment and Operation of Regional and National Power Grids to facilitate and National Power Grids to facilitate transfer of power within and across the transfer of power within and across the regions with reliability, Security, and regions with reliability, Security, and Economy on sound commercial Economy on sound commercial principles.”principles.”

Commercial operation since Commercial operation since 1992-93.1992-93.Recognised as Mini-ratna Company: Recognised as Mini-ratna Company: 1998.1998.Notified as Central Transmission Utility : Notified as Central Transmission Utility : 19981998 Carries about 45% of Country’s power.Carries about 45% of Country’s power.Transmission Network: Transmission Network: - - 54,80054,800 Ckt. Kms., Ckt. Kms.,

- - 54,35054,350 MVA MVA - - 9393 Sub-Stations Sub-Stations

Network availability - Above Network availability - Above 99%99%Profit making since inceptionProfit making since inception

POWERGRID- An Overview

DiversificationDevelopment of Inter-State transmission Systems

Grid Managemen

t

• Planning & Design• Construction• Quality Assurance &

Inspection• Operation &

Maintenance

• Establishment of modern Load Despatch Centres

• Real-time Grid Operation

• Optimum scheduling & despatch

• Energy accounting including settlements

• Broadband Telecom Services.

• Sub-transmission• Distribution• Rural

Electrification• Consultancy

AREAS OF OPERATION

(Till Nov’05)

PHYSICAL GROWTH (Network & Capacity)

4483646461

49459

22228

27853

35119

40289

34288

28820

12,201

23331

50745

4775746245

0

10,000

20,000

30,000

40,000

50,000

60,000

92-93 96-97 98-99 2001-02 2002-03 2003-04 2004-05 2005-06

YEAR MVA Ckt Km

56020 56180

Expected

GROSS FIXED ASSET (RS. CRORE)

(Till Sep’05)

35215492

8851

13777

1987621930

0

5000

10000

15000

20000

25000

1992-93

1995-96

1998-99

2001-02

2003-04

2004-05

2005-06

3000027120

Expected

TURNOVER AND NET PROFIT (Rs. Crore)

(Till Sep’05)

634983

1770

25332805 2831

786748643444275236

0

500

1000

1500

2000

2500

3000

3500

1992-93 1995-96 1998-99 2002-03 2003-04 2004-05 2005-06

YEAR

Turnover Net Profit3075

884

* CERC new tariff norms applicable 01/04/04

Expected

6167

6624

68116923

6828 6881

7068

5600

5800

6000

6200

6400

6600

6800

7000

7200

TransferredManpower

1995-96 1998-99 2001-02 2003-04 2004-05 2005-06

Year ---->

No.

of E

mpl

oyee

s ----

->

MANPOWER

Growth in manpower 1.7% p.a corresponding to 40% growth p.a. in Asset base

Expected

National Grid being developed in phased National Grid being developed in phased mannermanner

Inter regional power transfer capacity of Inter regional power transfer capacity of National Grid–National Grid– Present Present - 9,500 MW- 9,500 MW By 2007 By 2007 - 18,400 MW- 18,400 MW By 2012 By 2012 - 37,150 MW- 37,150 MW

Ring of 765 kV EHV AC system inter-connecting Ring of 765 kV EHV AC system inter-connecting ER, WR, NR and HVDC system for smooth ER, WR, NR and HVDC system for smooth operation of the Gridoperation of the Grid

This would lead to reduction in capacity This would lead to reduction in capacity addition by about 15000 MW thus saving addition by about 15000 MW thus saving investments of about Rs 60,000 Crore. investments of about Rs 60,000 Crore.

Development ofDevelopment of NationalNational GridGrid

8,500 MW

600 MW

2,250 MW

1,250 MW8,500 MW

1,800 MW

7,600 MW

1,000 MW

2,700 MW

1,700 MW 3,600 MW

3,100 MWSR

WR

NR

NER

ER

Investment Required by 2012Investment Required by 2012

POWERGRID POWERGRID :: Rs. 50,000 CrRs. 50,000 Cr

Pvt. InvestorsPvt. Investors :: Rs. 21,000 Cr.Rs. 21,000 Cr.

Inter Regional Power Inter Regional Power

Transfer Capacity Planned Transfer Capacity Planned

by 2012:by 2012: 37,000 MW 37,000 MW

Present Inter Regional Power Transfer Capacity 9,500 MW

EFFORTS TO STABILISE & COMMERCIALISE POWER SECTOREFFORTS TO STABILISE & COMMERCIALISE POWER SECTOR

4,000 MW

POWERGRID & Grid ManagementPOWERGRID & Grid ManagementRegional Load Despatch Centres modernised in Regional Load Despatch Centres modernised in

all the five regions at a cost more than Rs. 2000 all the five regions at a cost more than Rs. 2000 CroreCrore

This coupled with implementation of ABT has led This coupled with implementation of ABT has led to:to:

– ‘‘Nil’ Grid Collapses in Last three years.Nil’ Grid Collapses in Last three years.– Improvement in frequency and voltage profileImprovement in frequency and voltage profile– Merit Order Operation, Leading to Overall EconomyMerit Order Operation, Leading to Overall Economy– Transparency in grid operation Transparency in grid operation – Quantum leap in intra and inter-regional Power Quantum leap in intra and inter-regional Power

Exchange and TradingExchange and Trading

R&D and Technology Development in POWERGRIDR&D and Technology Development in POWERGRID

EHVAC Transmission System up to 800 kV EHVAC Transmission System up to 800 kV + 500 kV HVDC+ 500 kV HVDC Multi ckt towers Multi ckt towers Fixed & variable Series Compensator (FACTS)Fixed & variable Series Compensator (FACTS) Extra High Towers to avoid deforestation and protection Extra High Towers to avoid deforestation and protection

of wild lifeof wild life Compact Towers to reduce Transmission Corridor widthCompact Towers to reduce Transmission Corridor width High Temperature Conductors for increased LoadingHigh Temperature Conductors for increased Loading Automation of Sub-stations. Automation of Sub-stations. Compact S/stn to reduce land requirement. Compact S/stn to reduce land requirement. Transmission Line Survey through Satellite.Transmission Line Survey through Satellite.

Diversified in Synergic area i.e. Telecom at a cost Diversified in Synergic area i.e. Telecom at a cost of Rs 950 Cr.of Rs 950 Cr.

Most of the network completed ahead of schedule.Most of the network completed ahead of schedule.

Business is looking up as planned, inspite of stiff Business is looking up as planned, inspite of stiff competition.competition.

A JV of RailTel, GailTel & POWERGRID in A JV of RailTel, GailTel & POWERGRID in formation stage.formation stage.

DIVERSIFICATION IN TELECOMDIVERSIFICATION IN TELECOM

Business DevelopmentBusiness Development Providing Consultancy services to State Power Providing Consultancy services to State Power

Utilities in India and at International level in the Utilities in India and at International level in the field of Transmission, Sub-transmission, field of Transmission, Sub-transmission, Distribution, Telecom etc.Distribution, Telecom etc.

Earned more than Rs. 127 Cr. as consultancy Earned more than Rs. 127 Cr. as consultancy income during FY2004-05 against Rs. 37 Cr. in FY income during FY2004-05 against Rs. 37 Cr. in FY 2003-042003-04

Major Consultancy Assignments Major Consultancy Assignments With Bhutan Telecom (completed successfully)With Bhutan Telecom (completed successfully) 220/66 kV substation in Bhutan 220/66 kV substation in Bhutan 220 kV D/C Transmission line from Pul-e-Khurmi to Kabul; a 220 kV D/C Transmission line from Pul-e-Khurmi to Kabul; a

major infrastructure project in Afghanistanmajor infrastructure project in Afghanistan Execution of 220 kV Transmission Line via Kargil-Leh-Execution of 220 kV Transmission Line via Kargil-Leh-

Drass-Khalsti for PDD, J&K. Drass-Khalsti for PDD, J&K.

APDRPAPDRP Acting as Advisor-cum-Consultant (AcC) for developing 182 Acting as Advisor-cum-Consultant (AcC) for developing 182

distribution circles/ towns/ schemes costing about Rs. 7,900 distribution circles/ towns/ schemes costing about Rs. 7,900 Crore.Crore.

Executing schemes of about Rs. 1000 Crore in Bihar, Goa, Executing schemes of about Rs. 1000 Crore in Bihar, Goa, Meghalaya and Mizoram on deposit work basis.Meghalaya and Mizoram on deposit work basis.

Sub-transmission Sub-transmission Implementation of strengthening scheme (phase-I) of Rs 550 Implementation of strengthening scheme (phase-I) of Rs 550

Crore in Bihar. Phase-II, Part-I at an estimated cost of Rs. 640 Crore in Bihar. Phase-II, Part-I at an estimated cost of Rs. 640 Crore approved recently. Part-II under finalisation.Crore approved recently. Part-II under finalisation.

Rural ElectrificationRural Electrification Executing works in 2400 villages in Bihar at about Rs.192 Crore.Executing works in 2400 villages in Bihar at about Rs.192 Crore. Execution of Rural Electrification works under Rajiv Gandhi Execution of Rural Electrification works under Rajiv Gandhi

Grameen Vidiyutikaran Yojana (RGGVY) for 70,000 villages in Grameen Vidiyutikaran Yojana (RGGVY) for 70,000 villages in the States of Bihar, UP, West Bangal, Gujarat, rajasthan, Orissa, the States of Bihar, UP, West Bangal, Gujarat, rajasthan, Orissa, Assam, Chattisgarh and Tripura at an estimated cost of Rs. Assam, Chattisgarh and Tripura at an estimated cost of Rs. 4,000 Crore. 4,000 Crore.

Facilitating Distribution Sector Reforms

Quick restoration of power supply through Quick restoration of power supply through Emergency Restoration System (ERS)Emergency Restoration System (ERS)

Gujarat cyclone in 1998Gujarat cyclone in 1998 Orissa cyclone in Oct, 1999Orissa cyclone in Oct, 1999 Gujarat earthquake in Jan, 2001Gujarat earthquake in Jan, 2001 Tsunami in Dec, 2004 Tsunami in Dec, 2004 Restoration of Pampore-Kishenpur 220kV D/c Restoration of Pampore-Kishenpur 220kV D/c

line of PDD J&K (life line for power supply to line of PDD J&K (life line for power supply to Kashmir) damaged during heavy snow Kashmir) damaged during heavy snow avalanches in Jan, 2005 avalanches in Jan, 2005

Extending training in Technical & managerial Extending training in Technical & managerial aspectsaspects

ASSISTING STATE UTILITIES

OUR STRENGTHS

Huge pool of expert manpower – more than 2600 Huge pool of expert manpower – more than 2600 qualified professionals Engineers, Financial, qualified professionals Engineers, Financial, commercial, legalcommercial, legalHarnessing New Technology in Electrical, Civil & Harnessing New Technology in Electrical, Civil & Mechanical Engineering.Mechanical Engineering.Proven Experience of PPP Project from concept to Proven Experience of PPP Project from concept to implementationimplementationExperience of working with projects funded by the Experience of working with projects funded by the World Bank, ADB and other Multilateral Financial World Bank, ADB and other Multilateral Financial Institutions. Institutions. Commitment to Quality, Environment and Health & Commitment to Quality, Environment and Health & SafetySafety– ISO 9001:2000, ISO 14001:1996 and OHSAS ISO 9001:2000, ISO 14001:1996 and OHSAS

18001:1999 certified by BSI18001:1999 certified by BSI

AWARDS RECEIVED BY POWERGRID

Few of the awards received by Few of the awards received by POWERGRID are:POWERGRID are:Continuously achieving the “Excellent” rating for Continuously achieving the “Excellent” rating for the MOUs with Ministry of Power, since 1993-94.the MOUs with Ministry of Power, since 1993-94.

The only Public Sector Enterprise to receive The only Public Sector Enterprise to receive prestigious Prime Minister’s MoU Award for three prestigious Prime Minister’s MoU Award for three successive years since institution of this Award. successive years since institution of this Award.

Received “Golden Peacock National Quality Award Received “Golden Peacock National Quality Award (Runners up)” for the year 2004, for maintaining (Runners up)” for the year 2004, for maintaining quality standards.quality standards.

AWARDS RECEIVED BY POWERGRID

Indian Institution of Industrial Engineering (IIIE) has Indian Institution of Industrial Engineering (IIIE) has conferred the prestigious award, “ Excellence in conferred the prestigious award, “ Excellence in service (Power Utility) sector for POWERGRID’s service (Power Utility) sector for POWERGRID’s financial & operational strength” on 21.09.2003.financial & operational strength” on 21.09.2003.Institute of Economic Studies, N. Delhi conferred Institute of Economic Studies, N. Delhi conferred “Certificate of Excellence in Productivity, Quality, “Certificate of Excellence in Productivity, Quality, Innovation & Management” on 24.02.97Innovation & Management” on 24.02.97Awarded certificate of excellence by Council for Awarded certificate of excellence by Council for Business Entrepreneurs for “Economic Growth & Business Entrepreneurs for “Economic Growth & National Integration” during the year 1997-98.National Integration” during the year 1997-98.

Indian Institution of Industrial Engineering (IIIE) hasj Indian Institution of Industrial Engineering (IIIE) hasj conferred the prestigious award, conferred the prestigious award, “Excellent “Excellent Performing Public Sector Entreprise” Performing Public Sector Entreprise” for the years for the years 1998-99 , 1999-2000 and 2001-021998-99 , 1999-2000 and 2001-02 to POWERGRID.to POWERGRID.

Private Sector Participation In

Transmission

On 31.1.2000, Ministry of Power, Govt. of India issued “Guidelines for Private Sector Participation” to ensure availability of uniform Techno-Commercial framework throughout the Transmission Sector in the Country.

Private Sector Participation Enablements

Investment from private entity as “Transmission Licensee” envisaged via two routes: Joint Venture Arrangement with POWERGRID

by having major equity contribution by the private investors & a minimum 26% equity by POWERGRID.

Independent Private Transmission Company (IPTC) route through 100% fund mobilization by private entities

Existing Provisions

MOBILISING RESOURCES THROUGH MOBILISING RESOURCES THROUGH PRIVATE INVESTMENTPRIVATE INVESTMENT

Joint Venture with Tata for Tala Transmission System at Joint Venture with Tata for Tala Transmission System at a cost of Rs. 1600 Crore, likely to be commissioned a cost of Rs. 1600 Crore, likely to be commissioned shortly.shortly.

Investment approval accorded for formation of JV with Investment approval accorded for formation of JV with Reliance for evacuation of power from Parbati-II HEP & Reliance for evacuation of power from Parbati-II HEP & Koldam HEP. Koldam HEP.

POWERGRID Board has decided in-principle to setup JVs POWERGRID Board has decided in-principle to setup JVs with Independent Power Producers (IPPs) for their with Independent Power Producers (IPPs) for their dedicated transmission lines. dedicated transmission lines.

Torrent, Essar, ILF&S, Jai Prakash and Teesta Urja have Torrent, Essar, ILF&S, Jai Prakash and Teesta Urja have signed MoUs. signed MoUs.

POWERGRID has invited bids for 100% Private POWERGRID has invited bids for 100% Private Transmission System for Western Region.Transmission System for Western Region.

POWERGRID Perspective Plan…POWERGRID Perspective Plan…Investment ProgramInvestment Program

X PlanX Plan XI PlanXI Plan TotalTotal

POWERGRID’s POWERGRID’s OutlayOutlay

21,37021,370 28,25828,258 49,62849,628

Private Sector Private Sector participationparticipation

9,7109,710 11,18511,185 20,89520,895

Total Central SectorTotal Central Sector 31,08031,080 39,44339,443 70,52370,523

Rs/Crs.

PROVISIONS OF ELECTRICITY ACT

Electricity Act has the following two Electricity Act has the following two provisions: provisions:

As per Section 14, CERC can grant a license to “any As per Section 14, CERC can grant a license to “any person” to transmit electricity as a transmission person” to transmit electricity as a transmission licensee.licensee.

As per Section 63, CERC shall adopt the tariff, if As per Section 63, CERC shall adopt the tariff, if such tariff has been determined through transparent such tariff has been determined through transparent process of bidding in accordance with the process of bidding in accordance with the guidelines issued by the Central Government.guidelines issued by the Central Government.

Proposed Enablements

Draft Policy Guidelines for Private Draft Policy Guidelines for Private Investment in Transmission, prepared by Investment in Transmission, prepared by Ministry of Power, Govt. of India.Ministry of Power, Govt. of India.

Draft Tariff based Competitive-bidding Draft Tariff based Competitive-bidding Guidelines for Transmission Service, Guidelines for Transmission Service, prepared by Ministry of Power, Govt. of India.prepared by Ministry of Power, Govt. of India.

Salient Features of these documents are……Salient Features of these documents are……

Policy Guidelines for Private Investment in Transmission

Empowered Committee, to be constituted by Empowered Committee, to be constituted by Ministry of Power, with mandate toMinistry of Power, with mandate to

– Identify Projects & invite bids.Identify Projects & invite bids.

– Facilitate finalization and signing of TSA & Facilitate finalization and signing of TSA & facilitate development of projects.facilitate development of projects.

Policy Guidelines for Private Investment in Transmission

DPR for identified project to be prepared by any DPR for identified project to be prepared by any Govt. agency or a consultant.Govt. agency or a consultant.

Selection of Developer for identified projects Selection of Developer for identified projects through Tariff Based Bidding.through Tariff Based Bidding.

Selected party to approach Appropriate Commission Selected party to approach Appropriate Commission for license with recommendations of Empowered for license with recommendations of Empowered Committee, within 30 days.Committee, within 30 days.

Tariff based Competitive Bidding

Guidelines

Empowered Committee is the Bid Process Empowered Committee is the Bid Process Coordinator (BPC).Coordinator (BPC).

Projects to be taken up after necessary approval of Projects to be taken up after necessary approval of Appropriate Commission. Appropriate Commission.

Projects identified by Empowered Committee only Projects identified by Empowered Committee only can be taken up.can be taken up.

Approval of Bid Documents by Appropriate Approval of Bid Documents by Appropriate Commission.Commission.

Tariff based Competitive Bidding Guidelines

Bidding process can be either two stage (RfQ & RfP) Bidding process can be either two stage (RfQ & RfP) or single stage two envelop process.or single stage two envelop process.

Bidding process can continue with less than two Bidding process can continue with less than two bidders with approval of Appropriate Commission.bidders with approval of Appropriate Commission.

The agency authorized by the Govt. to account for The agency authorized by the Govt. to account for and bill transmission tariff to enter into agreement and bill transmission tariff to enter into agreement with Pvt. Player on one hand and beneficiaries on with Pvt. Player on one hand and beneficiaries on the other. the other.

Grid Disturbances (Nos.)

53

710 0

74

24 03

0

10

20

30

40

50

60

70

80

2001-02 2002-03 2003-04 2004-05 2005-06 (TillDate)Minor Major

FREQUENCY PROFILEFREQUENCY PROFILE

2002, 2003 & 2004

REALITY BITE:

FARMERS IN KARNATAKA ARE HAPPY WITH FEWER HOURS OF QUALITY POWER!!.

EFFICIENCY OF PUMPS AT TG HALLI WATER WORKS IMPROVED!

COMPARISION OF BANGALORE VOLTAGE - TYPICAL COMPARISION OF BANGALORE VOLTAGE - TYPICAL DAYDAY

BETTER VOLTAGE PROFILE MEANS LESS ELECTRICAL LOSSES

Inter-Regional ExchangesInter-Regional Exchanges

814510850

13000

22000

31000

35000

0

10000

20000

30000

40000

2000-01 2001-02 2002-03 2003-04 2004-05 2005-06Year

MU

ECONOMY IN OPERATIONECONOMY IN OPERATION

Inter-regional energy exchange of 31000 MU Inter-regional energy exchange of 31000 MU worth Rs. 6200 Crore during 2004-05 has worth Rs. 6200 Crore during 2004-05 has resulted into:resulted into:

Deferred investment of Rs. 24000 Crore Deferred investment of Rs. 24000 Crore equivalent to setting up of 6000MW power equivalent to setting up of 6000MW power generation capacity. This means saving of Rs. generation capacity. This means saving of Rs. 2000 Crore per year to the economy.2000 Crore per year to the economy.

Net savings of Rs. 1550 Crore on account of Net savings of Rs. 1550 Crore on account of cheaper available power.cheaper available power.

Generated economic activities almost 20 times Generated economic activities almost 20 times the cost of energy exchanged i.e. worth about Rs. the cost of energy exchanged i.e. worth about Rs. 1,24,000 Crore.1,24,000 Crore.

800 800 kV – High Power Transfer CapacitykV – High Power Transfer Capacity

one 800kV line on a 64 meter wide right-of-way can carry the same amount of power as 400 kV lines on four 48 m wide rights-of-way, having a combined width of 184 m

64 M 184 M

1

4

2

321

DOUBLE CIRCUIT TOWER

MULTI CIRCUIT TOWER

( 45 Mtr. High) ( 70 Mtr. High)

R&D and Technological AdvancementR&D and Technological Advancement

9 - 25 mtr

50 mtr

EHVAC (up to 800 kV) & HVDC (±500 kV)

Extra tall Towers for protection of wild life & to avoid deforestation

R&D and Technological AdvancementR&D and Technological Advancement

4 - 5 mtr approx

Proposed 400 kV Compact Single pole

tower at Delhi & Noida

800 kV Normal Tower 800 kV Compact Tower

R&D and Technological AdvancementR&D and Technological Advancement

Right of Way = 85 Mtr. Right of Way = 64 Mtr.

R&D and Technological AdvancementR&D and Technological Advancement

Remote Control operation of Substation

BALLABHGARH

BHIWADI

Transmission Line Survey through GIS

SURVEY WORK IN AFGHANISTANSURVEY WORK IN AFGHANISTAN

2100 MSL

Kalatak Hill Top carry Mines –

TL route negotiated on Slope

Rock fall due to Weathering action

SURVEY WORK IN AFGHANISTANSURVEY WORK IN AFGHANISTAN

2200 MSL2150 MSL

Exposed Weathering Action

at exposed face between

Jabal Saraj- Ahingaran

SURVEY WORK AT LEH, KARGIL, DRASSSURVEY WORK AT LEH, KARGIL, DRASS

A view of Tiger Hill from Drass village A view of Kargil

SURVEY WORK AT LEH, KARGIL, DRASSSURVEY WORK AT LEH, KARGIL, DRASS

One of the proposed site of Kargil S/S (Near village Minjhe on Kargil sankoo road near Chutak HEP of NHPC)

One of the land identified for Leh S/S (Near Phyang about 15 Kms ahead of Leh town)

National Grid by 2012THE POWER ‘HIGHWAY’