 "R N Nayak")
Pay revision and increased interest costs have narrowed PowerGrid's net profit to Rs 1,042 crore for the third quarter, a decline of 7.7 per cent over a year. However, total income went up 8.8 per cent. R N Nayak, chairman and managing director, talks to Katya B Naidu on the results and related issues. Edited excerpts:
How did your net profit go down even as your income went up?
For the first time since 2007, we had a wage revision. This is one reason. But, we should not look at a single quarter performance, as our average performance has been good. In our results over the nine months (of this financial year), our net profit went up six per cent.
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How much has your commercial recovery improved?
We have only 10-15 days of current outstandings (dues). Earlier, we used to have pending payments that would be as old as a few months. Our recovery amounts are down to Rs 200-300 crore. This is after the courts directed some of those who owed us money to pay up. It has helped in increasing our commercial recovery. I cannot name them because they are our clients.
How far along are you with your expansion plans?
We had added 85 per cent of our current capacity in the past three years. By the end of the current financial year, we expect to double the current capacity as well. We have already commissioned as much as 94,000 km of transmission lines. We will add 5,000 to 6,000 km more by March.
It is believed the southern grid will be completely operational only by August.
I think the south grid should be ready between June and July, and operations can start in full swing by then. We are currently testing and experimenting on it on the operational side. We are studying the oscillations and other technical issues.
Were there delays in commissioning this grid? When is the second line expected to go live?
There have been no delays. In fact, the southern grid was commissioned nine months in advance. Whenever we commission, we will require six months to test it. Had we commissioned in September, we would have taken that much time from then. The private player involved says the second line will be ready either in February or March.
