SUBMITTED BYFARHAN TARIQ

GITARTHA PAL

A REPORT ON
POWER GRID
CORPORATION OF
INDIA

GAURAV MEHTA

PGDM- 2013-2015

An Analysis Power Grid Corporation of India

Introduction:
Power Grid Corporation of India Limited (POWERGRID) is an Indian state-owned electric
utilities company headquartered in Gurgaon, India. It is Central Transmission Utility (CTU)
of India and a Navaratna Central Public Sector Enterprise. Power Grid is Indias largest
Electric Power Transmission Utility.
About the company:
ORIGIN:

In 1980, the Rajadhyaksha Committee on Power Sector Reforms submitted its report to
the Government of India suggesting extensive reforms in the Indian power sector.
In 1981 based on the recommendations of the Rajadhyaksha Committee, the Government
of India made the policy decision to form a national power grid which would pave the

way for the integrated operation of the central and regional transmission systems.
23 October, 1989 Power Grid was incorporated under the Companies Act, 1956 as the
rd

National Power Transmission Corporation Limited, with the responsibility of planning,

executing, owning, operating and maintaining the high voltage transmission systems in

the country.
8th November, 1990 The Company received a certificate for commencement of business.
Subsequently, the name of the Company was changed to Power Grid Corporation of India

Limited and took effect 23rd October, 1992.

In January 1993, the National Thermal Power Corporation Limited, the National Hydro
Electric Power Corporation Limited and the North-Eastern Electric Power Corporation
Limited (Acquisition and Transfer of Power Transmission Systems) Ordinance, 1993

("Power Transmission Systems Ordinance") was enacted.

In April 1993, the Power Transmission System Ordinance became a statute after
receiving the assent of the President of India.

Overview:

The company has International rating BBB- by Fitch and S&P.

Domestic Stable/ Highest Safety rating AAA by CARE, CRISIL & ICRA.
They are engaged in power transmission business with the responsibility for
planning, coordination, supervision and control over inter-State transmission

system and operation of National & Regional Power Grids.

The company is also in the Telecom business under the brand name of

POWERTEL and has been providing consultancy services to around 125 domestic

clients.
It is also engaging itself in modern businesses like Smart city/ smart grid, Green Energy
corridor, Energy Efficiency.
The shareholding Pattern of the company:

Government of India: 69.42%

Non Institutions: 8.70%
Institutions: 21.88%
Vision & Mission:

Vision:

World Class, Integrated, Global Transmission Company with Dominant Leadership in

Emerging Power Markets Ensuring Reliability, Safety and Economy.

Mission:

We will become a Global Transmission Company with Dominant Leadership in Emerging

Power Markets with World Class Capabilities by:

World Class: Setting superior standards in capital project management and

operations for the industry and ourselves

Global: Leveraging capabilities to consistently generate maximum value for all

stakeholders in India and in emerging and growing economies.

Inspiring, nurturing and empowering the next generation of professionals.

Achieving continuous improvements through innovation and state of the art

technology.

Committing to highest standards in health, safety, security and environment

OBJECTIVES
The Corporation has set following objectives in line with its mission and its status as
Central Transmission Utility to:

Undertake transmission of electric power through Inter-State Transmission System.

Discharge all functions of planning and coordination relating to Inter-State

Transmission System withState Transmission Utilities

Central Government

State Government

Generating Companies

Regional Power Committees

Authority

Licensees

Any other person notified by the Central Government on this behalf.

To ensure development of an efficient, coordinated and economical system

of inter-state transmission lines for smooth flow of electricity from generating stations to
the load centers.

Efficient Operation and Maintenance of Transmission Systems.

Restoring 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 levels in

transmission sector based on the in-house expertise developed by the organization.

Participate in long distance Trunk Telecommunication business ventures.

Ensure principles of Reliability, Security and Economy matched with the

rising / desirable expectation of a cleaner, safer, healthier Environment of people, both
affected and benefited by its activities.

BOARD OF DIRECTORS:
R.N. Nayak, Chairman and Managing Director:
Shri R. N. Nayak, aged 58 years, is the Chairman & Managing Director of the
Company. He is a first class Bachelor of Electrical Engineering from REC
Rourkela and holds an M.Tech (Electrical) from IIT, Kharagpur. Shri Nayak has
over 35 years of work experience, primarily in the power sector and handled
various multi-disciplinary functions like Engineering, Load Dispatch &
Communication, Grid Management, Contract Management, Quality Assurance and
Inspection; Telecom, Operation & Maintenance, Commercial and Human
Resources. He was appointed as Chairman & Managing Director in September,
2011.
Shri I.S. Jha, Director(Projects)
Shri R.T. Agarwal, Director(Finance)
Shri Ravi P. Singh, Director(Personnel)
Shri R.P. Shasmal, Director (Operations)
Ms. Rita Acharya, Government nominee
Shri Pradeep Kumar, Government Nominee
Shri Santosh Saraf, Independent Director

Shri R K Gupta, Independent Director

Dr. K Ramalaingam, Independent Director
Shri R Krishnamoorthy, Independent Director
Shri Mahesh Shah, Independent Director
Shri Ajay Kumar Mittal, Independent Director
Shri Parvez Hayat, Chief Vigilence Officer

Market Structure:
Market

Sales Turnover

Net Profit (Rs

Total Asset (Rs

Capitalisation(Rs

(Rs Cr)

Cr)

Cr)

12,757.85

4,234.50

95,033.34

Cr)
52,158.95

52 week high price at BSE:- 116.95

52 week low price at BSE:- : 86.70
52 week high price at NSE:- 116.95
52 week low price at NSE:- : 86.55
Source:
http://www.moneycontrol.com/india/stockpricequote/powergenerationdistribution/powergridcor
porationindia/PGC, 23/12/2013, 7.30PM
Competition:
The company enjoys a monopoly in the power transmission sector. So in its transmission
business it has no competitors in the country. It is also supported by the central government. But
it is now spreading its wings in the global market. So they have to face the international
competitors.

Analysis:-

 By SWOT:

Strength:
1.Monopoly and supported by

Weakness:
1. Its a government company, so slow

Government and laws,

2. Good Infrastructure.
3.Largest transmission network.

decision making process.

Opportunity:
1. New telecom, consultancy business

Threat:
1.Week financial condition of its

growth.
2.Untapped rural market.

buyers(State distribution Companies).

2.Solar panels capturing rural market.

Two-by-two Matrix:

Market Share

High

Low

High

Power Transmission

Consultancy, Telecom

Low

Smart Grid / Smart City

-----

Market Growth

 BY PORTERS FIVE FORCE MODEL:

State Electricity Distribution

Companies take power from
Power Grid as per law

NTPC, NHPC,
Independent Power
Producers supplies the
power as per law

No competition for transmission

business in India but it will face
tough competition for
consultancy business

Solar power panels

can be a potential
substitute for the
transmission lines

No Threat for new entrants

as the law is in the favor of
the company, but other
PSUs like NTPC can also
make an entry in the
consultancy sector.

Conclusion:

Power grid enjoys a monopoly in the transmission business but still it can supply only 50% of
total power produced in the country. The rest is done by the different state transmission
companies or used for industry purpose (heavy industries produce power for their own). So we
can see that the growth rate is high for now but there is a threat that this will become stagnant.
The company has diversified itself in the consultancy, telecom sector but the company has to
face tough competition and at the same time there is a high possibility of getting a high market
share as the company already has the required primary infrastructure. The company has
also started to build a SAARC grid and expand its consultancy service in
Africa and South Asian countries. Thus it is slowly becoming a global
company satisfying its vision and mission set by it.
Bibliography:

http://www.powergridindia.com/
http://en.wikipedia.org/wiki/PowerGrid_Corporation_of_India