It gives me immense pleasure to share with you the performance of your company duringthe Financial Year (FY) 2016-17.
Friends the Indian economy is growing strongly with the overall growth for the Fiscal2017 at 7.1%.
This was another year of remarkable performance on various fronts for your Company aswell.
I am happy to inform that a number of large and important projects werecommissioned/completed during the year including 800 kV Champa - Kurukshetra HVDCBi-pole-l(Pole-I) link; Pole-II & III of 800 kV Biswanath Chariyali/Alipurduar -Agra HVDC mutli terminal transmission systems; 765 kV double circuit (D/c) Wardha -Nizamabad line;765kV D/c Gaya- Varanasi line; 765 kV D/c Varanasi - Kanpur - Jhatikaraline;765 kV D/c Angul - Srikakulam line; 765 kV D/c Srikakulam - Vemagiri line (TBCB); 765kV D/c Raipur - Wardha (2nd) line; 765kV D/c Tuticorin - Salem (charged at 400kV); and 400 kV D/c Ranchi - Chandwa - Gaya line. Your Company achieved capitalization oftransmission projects worth over ?31000Crore (including TBCB projects) during the year.
The year ended March 31 2017 also marks the conclusion of XII Plan. I am glad to sharewith you that against the CAPEX target of '110000crore for XII Plan your Company hasmade a capital expenditure of '112664crore. Total Capitalization achieved during XIIPlan is over '117000 crore including TBCB projects.
On the financial front your Company has registered Total Income of '26581.46Crore andProfit after Tax (PAT) of '7520.15Crore in Fiscal 2017 registering a growth of 25.13% and26.42% respectively over the Total Income and PAT in Fiscal 2016. Your Company's GrossFixed Assets as on March 31 2017 stood at '149730Crore as against '121336Crore as onMarch 31 2016 (as per Ind AS).
On the operational front your Company maintained availability of the transmissionnetwork at 99.79% and the number of tripping per line (unplanned) was contained to 0.68for the year. As on March 31 2017 your Company owns & operates a transmissionnetwork of about 139077 ckm of inter-State transmission lines 219 nos. of EHVAC &HVDC sub-stations with transformation capacity of about 289543 MVA.
Your Company also made an impressive progress in the areas of Consultancy & Telecomthereby enhancing the value for the shareholders. Your Company has registered consultancyrevenue of '582.43crore and Telecom revenue of '503.83crore a growth of 25.13% &28.45% respectively over the previous year. Some of the major consultancy assignmentssecured during the year include Railway track electrification works for four ZonalRailways and Techno-managerial services for implementation of 220kV & 132kVtransmission system for Railways. On the Telecom front total network coverage has beenincreased by 14.8% to 41988 km from the earlier reach of 36563 km and the number ofPoints of Presence (PoP) locations have been increased to '662' from '595' registering anincrease of 11.26%.
Under Tariff Based Competitive Bidding (TBCB) your Company has bagged one more projectviz. 'Establishment of Transmission System for 765kV Eastern Region Strengthening Scheme(ERSS-XVIII)' during the year. With this your Company has secured 10 projects as onMarch 31 2017 through TBCB since its participation. I am glad to share with you thatthree of the projects under TBCB have been successfully completed and elements in otherprojects are being completed progressively.
Under Deendayal Upadhyaya Gram Jyoti Yojana (DDUGJY) infrastructure was created for4365 nos. of partially electrified / un-electrified villages in Fiscal 2017. Cumulativelytill March 2017 infrastructure has been created for electrification of about 79000villages and service connections were provided to about 37.5 lakh BPL households.
Your Company is playing a crucial role in the integration of Renewable Energy Resourceswith the grid and is undertaking development of Green Energy Corridors as well astransmission schemes for Ultra Mega Solar Parks in a no. of states. In addition yourCompany is also establishing Renewable Energy Management Centers (REMC) in certainrenewable rich states which would facilitate forecasting of renewable resources andefficient management of variable renewable generation ensuring grid stability &security.
For development of Smart Grid in India your Company has undertaken various initiativesand is providing consulting services for projects covering distribution infrastructureadvanced metering infrastructure intelligent outage management power quality managementdistributed generation net metering etc.
Further your Company continues to take various initiatives to fulfil its commitmenttowards the goal of sustainable development. These include design and installation ofmulti-circuit & pole towers and Gas Insulated Switchyard (GIS) to conserve theprecious Right of Way (RoW) / land resource; installation of LED bulbs & solar streetlights in substations fuel catalyst devices for DG sets rain water harvestinginstallation of solar photovoltaic in office buildings to meet the internal energyrequirements / CO2 reduction etc.
As a part of Corporate Social Responsibility your Company primarily focuses oninclusive social-economic growth for development of marginalized and under-privilegedsections of the society residing around its areas of operation. Your Company hasundertaken various CSR activities during the year with thrust on Health RuralDevelopment/Infrastructural Development Skill Development Education Environment etc.During FY 2016-17 your Company has spent '147.27crore on various CSR activities. Yourcompany has also completed the construction of the
'POWERGRID Vishram Sadan' at J.P. Apex Trauma Centre AIIMS New Delhi. In additionyour Company contributed an amount of ?30Crore to the 'Swachh Bharat Kosh' of the Govt. ofIndia.
Your Company is proud to receive continuous industry recognition and awards. Some ofthe significant awards / recognition include - 'Dun & Bradstreet PSU Award 2017' inthe 'Electricity - Power Transmission Sector' category; 'Fastest Growing Electric Utilityin Asia' for three consecutive years (2016 2015 and 2014) as per Platts Top 250 GlobalEnergy Company Rankings; 'Industry Excellence Awards 2017' in the category of 'Energy& Power' on the occasion of BRICS International Conclave for MSMEs & start-upsorganised by 'Stepup 360'& BRICS International Forum'; CNBC TV-18 'Best RiskManagement Practice Award' at the 3rd India Risk Management Awards in PSUcategory; CBIP Award 'Best Performing Transmission Utility 2016' 'Clean EnergyAward-2016' for Best Power Transmission Utility Company in India; 'North AmericanSynchrophasor Initiative (NASPI) Award' for Outstanding Utility during 2016-17 'DelhiManagement Association Award 2016' for "Improving Rural Livelihoods and ProtectingEnvironment through Farmer-centric Integrated Watershed Management" under CSR; and'SCOPE Award 2016' for 'Innovative Stakeholders Engagement' by POWERGRID. Your Company hasonce again been recognized as one of the ''India's Best Companies to Work" in theGreat Place to Work Study (June 2017) with its rank being upgraded to '31' from lastyear '58' out of 700+ companies.
On behalf of the Company I thank each shareholder for the continued support &trust placed on the Company. I would also like to express my appreciation for theemployees for their contribution towards the performance of Company. I am confident thatwith a team of dedicated employees and with valuable support of our esteemed shareholdersthe Company will continue to excel surpassing your expectations.
| ||With best wishes |
| ||Yours sincerely |
| ||(I. S. Jha) |
|Date: 12th August 2017 ||Chairman & Managing Director |
|Place: New Delhi || |