Advantages Having own transmission lines Provision : The enactment of the Electricity Act, 2003, brought out several

enabling provisions. Installation of dedicated transmission lines by generating companies or captive generating plants (CPP) is one of them. 1.capacity addition in power transmission. We can transmit our as well as other projects power too. 2. no provision of giving charges giving to the grid for transmission. 3.outage ( when outgoing transmission line out due to fault) clearance dependency reduced.

POWERGRID CORPORATION OFINDIALTD.

(A Govt. of India Undertaking) Plot No. 2, Sector 20, IFFCO Ckowk, Gurgaon Haryana. Tel.No.2571700-719, Fax No. 2571899. Web Site http/www.powergridindia.com http/www.powergridindia.net http/www.powergridindia.org

Citizen Charter

1.

MISSION

Establishment and operation of Regional and National Power Grids to facilitate transfer of power within and across the Regions with reliability, security and economy, on sound commercial principles.

2.

VISION
To ensure requisite capital investment in power transmission sector by mobilizing resources on its own / through private participation. To provide transmission system matching with generation capacity addition in the central sector. To augment and strengthen Regional Grids to avoid backing down of any generating unit and develop a strong and flexible National Grid to facilitate exchange of power without any constraint from surplus to deficit Regions. To extend the National Grid to a SAARC Grid by interconnecting neighboring countries viz. Bhutan, Nepal, Bangladesh etc. For mutual exchange of power and harnessing the resources and load diversities. To Undertake diversification in synergic area of Telecommunication as a Infrastructure Service Provider. To assist state power utilities in Distribution Sector under Accelerated Power Development and Reforms Programme of the GOI.

3.

FORMATION OF POWERGRID

POWERGRID was formed with the mandate to build, operate and maintain AC and HVDC transmission systems including Load Dispatch facilities under Central Sector.
DEVELOPMENTAL STAGES

The phased development of POWERGRID at the time of its formation was foreseen as follows : Phase-I: Transfer of Transmission facilities along with related manpower from Central / CentreState Joint Venture Organizations. Phase-II: Transfer of existing Regional Electricity Boards and Regional Load Dispatch Centers together with associated communication facilities. Phase-III: Establish Power Pool to facilitate exchange of power between States/Regions leading to formation of National Power Grid.

4.

BRIEF PROFILE

Power Grid Corporation of India Ltd., a Govt. of India Enterprise, was incorporated in October 1989 under the Indian Companies Act, 1956 for establishment and operation of regional and national power grids, through transfer of transmission assets and related manpower from the constituent central sector undertakings namely National Thermal Power Corporation, National Hydro Power Corporation, North-East Electric Power Corporation and Neyveli Lignite Corporation, with an initial authorized share capital of Rs. 50,000 million. Over the years POWERGRID has evolved into one of the largest transmission utilities in the world, with its transmission network spread over the entire length and breadth of India (Exhibit-I). POWERGRID is also ranked amongst one of the best-managed transmission companies in the world, which deploys the latest Operation and Maintenance techniques and maintains overall transmission system availability above 98%. POWERGRID has been continuously rated Excellent for its performance against the targets set under Memorandum of Understanding (MoU) with Ministry of Power since signing its first MoU in the year 1993-94 and is the only Public Sector Enterprise in the Indian power sector to receive The Prime Ministers MoU Award for four successive years i.e. 1997-98, 1998-99, 1999-2000 and 2000-2001, since the same was instituted. POWERGRID started its commercial operations in 1992-93 and now operates more than 40,500 circuit kilometers of transmission lines and 68 sub-stations, with transformation capacity of more than 34,000 MVA. Presently, about 40% of Indias total power is transmitted on the transmission network owned by POWERGRID. The Turnover of POWERGRID went up from Rs.634 Crores (US$ 130 Million) in 199293 to around Rs.2860 Crores (US$585 Million) (provisional) in 2001-2002, registering an average annual growth rate of about 35%. The Net Profit was Rs.758 Crores (US$155 Million) (provisional) in 2001-2002 as against Rs.236 Crores (US$ 50 Million) in 1992-93, thereby registering an average annual growth rate of about 22%.

POWERGRID is an ISO 9001 certified company having in-house expertise in all specialized areas of transmission systems upto and including 800 KV Alternate Current (AC), 500 KV High Voltage Direct Current, Gas Insulated Substations, Static VAR (Volt-Ampere Reactive) Compensation, Series Capacitors, Controlled Shunt Reactors etc. POWERGRID has already established a basic framework for National Grid that is capable of exchanging about 4,850 MW of power across the Regions. It proposes to enhance this capacity to 8,000 MW by the year

2003 and to 30,000 MW by the year 2012 (Exhibit-II). Creation of these facilities requires massive investments and POWERGRID has solicited private sector investment, in addition to its own investment, to achieve the objective of formation of a National Grid. POWERGRID is playing a catalytic role in development of South Asia Association for Regional Cooperation grid for exchange of power and harnessing the vast potential of diversified resources available beyond the national boundary. Attempts are being made by POWERGRID, initially to exchange power between neighboring countries like Bangladesh and strengthening the existing links with Nepal & Bhutan for establishment of SAARC grid. POWERGRID is also desirous of extending the boundaries of SAARC grid further to connect to other neighbouring countries like Mayanmar, Thailand, Malaysia, Kazakistan etc.

POWERGRID is not dependent on budgetary support from the Govt. and has invested about Rs. 8,500 crore in its transmission schemes during last five years (during IX plan) and is planning to invest about Rs. 56, 000 crore from its own resources & Rs. 20,000 crore through private sector during X and XI plan. Based upon its in-house expertise, it has bagged many consultancy projects in the country and is gearing to become a global transmission entity.

POWERGRID has evolved a highly effective disaster management system to minimise the impact on transmission system caused by natural calamities like flood, cyclone etc. by deploying Emergency Restoration System. The devastation caused by cyclone of Gujarat in June 1998 and Orissa in October 1999 was attended by POWERGRID on war footing and normalcy was restored within few days which otherwise would have taken months.

POWERGRID is the first power sector organisation in India to evolve Environmental and Social Policy & Procedures through public interactions and is implementing the Environmental and Social Policy & Procedures in its transmission projects in letter & spirit. Looking at the mammoth responsibility entrusted to POWERGRID, the company gives utmost importance for implementation of its projects without any time and cost overrun. POWERGRID has developed one of the most advanced and cost effective integrated project management and control system for total project review

and monitoring on regular basis so as to ensure implementation of the projects in the most expeditious manner. Many projects have been completed ahead of schedule as an outcome of effective integrated project management concept being followed by the Corporation, which involves rigorous monitoring of project implementation at various level. Further, to reduce the project construction period, POWERGRID has taken many steps, which include advance action to develop Specifications and collection of project data, survey and soil investigation, undertaking tendering activities etc. in parallel with project approvals. These proactive measures taken by POWERGRID have led to substantial savings in terms of time and money.

The transmission system availability is consistently maintained over 98%, which is at par with international Standard and the sheer size of its network speaks of its capability of operating in the globally competitive environment. It is making its presence felt in global market by seizing business opportunities available around the globe and is working jointly with Merz & Mclellan & Price Waterhouse, U.K. in the field of consultancy. The company has also joined hands with M/s KEMA Consultancy, an organization of international repute in the area of System Coordination and Control to share the expertise to tap international market. The companys leading role in establishing a SAARC grid is also evidence to its international presence and desire to be global player with global benchmarks, in all the spheres of its activities. Further, the financial strength of the company has been duly acknowledged by domestic Credit rating Agencies like CRISIL and ICRA by according the highest credit rating. It is also duly audited by various external audit companies.

POWERGRID has embarked upon a mission to establish a National Backbone telecom network and synergise its Power Transmission network to Telecom Super Highways in a phased manner. It has also planned to enter into telecom business as National Long Distance Operator (NLDO) & to establish Landing Stations at strategic locations to provide international linkage through submarine optical fibre network. POWERGRID has planned to establish a broadband network of about 14,000 kms covering over 56 cities including all metros, major towns, cities etc by next 2-3 years (Exhibit-III).

The road map of establishing the high priority links include :

 Delhi-Shimla by July 2002 Delhi-Mumbai by August, 2002 Hyderabad-Bangalore-Chennai by March, 2003 NorthEastern State capitals and major towns by March, 2003 Delhi-Hyderabad by June, 2003 Delhi-Calcutta by September, 2003

POWERGRID is providing consultancy to various State Electricity Boards for establishing optic fiber network on their Transmission and Distribution network viz. Andhra Pradesh Transmission Company, Rajasthan State Electricity Board, Kerala State Electricity Board, Tamil Nadu Electricity Board, West Bengal State Electricity Board, Damodar Valley Corporation, Delhi Vidyut Board, Bombay Suburban Electric Supply etc. A consultancy assignment for laying OPGW on transmission lines from Bhutan to Indian border under Tala Hydroelectric Project Authority of Bhutan is in advanced stage of finalisation. Towards dovetailing its R&D activities into practice, it has tied up arrangements with various renowned Academic/ Research institutes like Indian Institute of Technology, Central Power Research Institute.

POWERGRID has already entered the telecom business, initially, as Infrastructure Provider and has garnered business on its commissioned links after acquiring Infrastructure Provider-II (IP- II) license in January, 2001.

5.

OBJECTIVES

POWERGRID has been notified as a Central Transmission Utility by the Central Government in the year 1998. The Corporation has set following objectives in line with its Mission and its status asCentral Transmission Utility:

Undertake transmission of energy through Inter-State transmission system. Discharge all functions of planning and coordination relating to Inter-State transmission system with 1. 2. 3. 4. 5. 6. 7. 8. 9. State Transmission Utilities; Central Government; State Governments; Generating companies; Regional Electricity Boards; Authority; Licensees; Transmission licensees; Any other person notified by the Central Government in this behalf.

Exercise supervision and control over the Inter-State transmission system. Efficient Operation and Maintenance of Transmission systems. Establish / augment and operate all Regional Load Despatch Centres and Communication facilities. Facilitate private sector participation in transmission system through Independent Private Transmission Company / Joint Ventures Assist various State Electricity Boards and other utilities in upgradation of skills & sharing of expertise by organising regular conferences, tailor-made training workshops directed towards specific technological and O&M areas and extending laboratory facilities for testing purposes etc. Restore power in quickest possible time in the event of any natural disasters like super cyclone, flood etc. through deployment of Emergency Restoration Systems. Provide consultancy services at national and international level in transmission sector based on the in-house expertise developed by the organization.

Participate in long distance trunk telecommunication business ventures.

6.

POWERGRID THE ORGANIZATION STRUCTURE

The organization structure, depicting the roles and responsibilities of Functional Groups, Intra/Inter-Functional relationship and levels of Hierarchy in the Organization, is depicted at Exhibit - V.

7.

COMMITMENTS POWERGRID is committed to :

Development of strong National Power Grid, in phased manner, for optimal utilization of generating resources Creation of power evacuation facilities for Central sector generating units and Mega Independent Power Producers Planning and Co-ordination of inter-state transmission network Operation and maintenance of transmission network, including Regional Load Despatch Centres, in an efficient manner Establishment of strong optic fibre network for expanding communication facilities in the country to draw synergical advantages Use of latest technologies like Hot Line maintenance, Emergency Restoration System, Gas Insulated Sub-station, Flexible Alternate Current Transmission System, Thermo-vision scanning etc. for providing uninterrupted power at optimal cost Up-gradation of existing transmission lines for conserving Right of Way Assist other power utilities, including State Electricity Boards, by providing assistance in project execution through consultancy in turnkey execution.

Collaborating in operation and maintenance of State Electricity Boards transmission systems. Assistance in providing shunt capacitors in State Electricity Board networks. Providing Emergency Restoration System and other hardware support as a part of disaster management system. Collaboration for knowledge sharing on Operation and Maintenance, Engineering, Grid Control and Operation.

8.

SERVICES TO STAKEHOLDERS:

POWERGRID is committed to serve the following stakeholders of the Organization :

Stakeholders Inhabitants of surrounding areas Remarks POWERGRID, keeping in mind the importance of sustainable development, has decided to address potential environmental and social implications through a well defined policy and procedures called Environmental and Social Policy & Procedures which describes the operational measures that have been set in place to ensure that the environmental and social assessment and management process is fully integrated into the typical project cycle. The three key principles of POWERGRIDs Environmental and Social Policy & Procedures are Avoidance, Minimisation and Mitigation. Clearances, as applicable, are taken prior to execution of the project. As per Indian Electricity Act, 1910, POWERGRID is required to approve the transmission license application for grant of license by Central Electricity Regulatory Commission. As per the guidelines issued by the Ministry of Power, it is also engaged in the

Transmission Licensees

process of selection of private investor, which would become the transmission licensee. State Power Utilities Evacuation schemes are planned in consultation with the SEBs and executed within approved cost and time. Wherever required, transmission schemes associated with Independent Power Producers are to be executed matching with the requirement of Independent Power Producers. To observe the rules, regulations and procedures specified by them. Fair treatment at all the stages of procurement and execution of the projects. Compliance of Loan Covenants and performance indices.

Independent Power Producers

Central/State Govt. Departments

Contractors / Vendors

Financial Institutions

9.

SERVICES OFFERED BY CORPORATION Assistance to various State Electricity Boards and other utilities in upgradation of skills & sharing of expertise by organizing regular conferences, tailor-made training workshops directed towards specific technological and Operation and Maintenance areas and extending laboratory facilities for testing purpose etc. Restoration of power in quickest possible time in the event of any natural disasters like super cyclone, flood etc. through deployment of Emergency Restoration Systems. Providing consultancy services at national and international level in transmission sector based on the in-house expertise developed by the organization. Participation in long distance trunk telecommunication business ventures. Assistance other power utilities, including SEBs, by providing assistance in project execution through consultancy in turnkey execution. Collaboration in operation and maintenance of SEBs transmission systems.

Assistance in providing shunt capacitors in SEB networks. Providing ERS and other hardware support as a part of disaster management strategy. Collaboration for knowledge sharing on O&M, Engineering, Grid Control and Operation aspect. Development of strong National Power Grid, in phased manner, for optimal utilization of generated power. Creation of power evacuation facilities for Central Sector generating units and Mega IPPs. Planning and Co-ordination of inter-state transmission network. Establishment of strong optic fibre network for expanding communication facilities in the country. Use of latest technologies like Hot Line Maintenance, Emergency Restoration System, GIS, FACTs, Termo-vision scanning etc. for providing uninterrupted power at optimal cost. Up-gradation of lower voltage lines to higher voltage for conserving Right of Way.

10.

VALUES AND STANDARDS OF SERVICE

POWERGRID believes in : 1. 2. 3. 4. 5. Excellence Performance and Responsiveness Fairness and Transparency Innovation and Improvement Collaboration with other Service Providers to deliver improved service to the Users 6. Effective use of resources

7. Concern for Environment 8. Standard of services 9. Rewards and Recognition 10. Consultation and Involvement 11. Discharging Complete Social Responsibility

11.

ACCESS TO INFORMATION

Information about schemes, policies, project plans of the Corporation, and issues of general interest to stakeholders, is available in POWERGRID offices as detailed in Exhibit-VI. Names, Addresses and Telephone Numbers of the Senior Executives in the offices of POWERGRID are given in Exhibit-VI. POWERGRID would also be keeping its stakeholders informed through press releases and electronic & print media. This information is also available on POWERGRID web site at http://www.powergridindia.com and is updated from time-to-time. Further details and information on the activities of the Corporation as well as the Procedures, Instructions, Codes, Charges and other Systems are available in various publications brought out by the Corporation from time to time. These may be obtained from the offices as in Exhibit-VI. Corporation publishes details of its financial and operational performance in leading newspapers every quarters/year as required under Compan