THE UNIVERSITY OF BURDWAN

DIRECTORATE OF DISTANCE EDUCATION

M.B.A. 4st SEMESTER

SESSION: JAN 2019 TO JAN 2021
PAPER CODE: MBD 401
PAPER NAME: STATEGIC MANAGEMENT

Assignment Topics
in
A Case study of strategic management in
Power Grid Corporation of India Limited

DATE OF SUBMISSION: 05-12-2021

NAME: KUNAL DAS

ROLL NO: 3019010031

Page 1
 CONTENT
TOPIC PAGE NO.
1. Definition of Business Strategy 3
2. Importance of Business Strategy 3
3. Key component of Business strategy 3
4. Defining single and Multi-Business strategy 4
5. Business Strategy of POWER GRID CORPORATION OF INDIA LIMITED 5
6. Business Model of Power Grid Corporation of India LTD 5
(i) Mission and Vison 5
(ii) Type of Business 6-7
(iii) Area of Business 7
(iv) R&D 7-9
7. Current and Future Expansion Plan 9-12
8. One Nation One Grid Plan 13
9. Competitor Review 14
10. SWOT Analysis 14
11. Financial growth 15
(I) Financial Overview as per Annual Report FY 20-21 15-16
12. Conclusion 17
13. Reference 18

Page 2
 Defining Business Strategy
The definition of business strategy is a long term plan of action designed to achieve
a particular goal or set of goals or objectives. Strategy is management's game plan
for strengthening the performance of the enterprise. It states how business should be
conducted to achieve the desired goals. Without a strategy management has no
roadmap to guide them. A business strategy can be defined as the combination of all
the decisions taken and actions performed by the business to accomplish the
business goals and to secure a competitive position in the market. 

Importance of Business Strategy:-

A business objective without a strategy is just a dream. It is no less than a gamble if
you enter into the market without a well-planned strategy. With the increase in the
competition, the importance of business strategy is becoming apparent and there’s a
huge increase in the types of business strategies used by the businesses. Here are
five reasons why a strategy is necessary for your business.

i. Planning- Business strategy is a part of a business plan. While the business plan
sets the goals and objectives, the strategy gives you a way to fulfill those goals. It is
a plan to reach where you intend to.

ii. Strengths & Weaknesses Most of the times, you get to know about your real
strengths and weaknesses while formulating a strategy. Moreover, it also helps you
capitalize on what you’re good at and use that to overshadow your weaknesses (or
eliminate them).

iii. Efficiency & Effectiveness- When every step is planned, every resource is
allocated, and everyone knows what is to be done, business activities become more
efficient and effective automatically.

iv. Competitive Advantage - A business strategy focuses on capitalizing on the

strengths of the business and using it as a competitive advantage to position the
brand in a unique way. This gives an identity to business and makes it unique in the
eyes of the customer.

v. Control - It also decides the path to be followed and interim goals to be achieved.
This makes it easy to control the activities and see if they are going as planned.

Key Components of a Business Strategy

i. Mission, Vision, & Business Objectives- The main focus of a business
strategy is to fulfill the business objective. It gives the vision and direction to
the business with clear instructions of what needs to be done, how it needs
to be done, and who all are responsible for it.

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ii. Core Values-It also states the ‘must’ and ‘must not’ of the business which
clarify most of the doubts and give a clear direction to the top level, units, as
well as the departments.
iii. SWOT Analysis -A SWOT (strengths, weaknesses, opportunities, and
threats) analysis is a rundown of the company’s current situation. It is a
necessary component of a business strategy as it represents the current
strengths and opportunities which the company can make use of and the
weaknesses and threats which the company should be wary of.

iv. Operational Tactics Unit and functional business- strategies get deep into
the operational details of how the work needs to be done in order to be most
effective and efficient. This saves a lot of time and effort as everyone knows
what needs to be done.

iv. Resource Procurement & Allocation Plan -The strategy also answers
where and how will you procure the required resources, how will it be
allocated, and who will be responsible for handling it.
v. Measurement -Unless there are no control measures, the viability of a
business strategy can’t be assessed properly. A good business strategy
always includes ways to track the company’s output and performance
against the set targets.

Defining Single & Multi-Business- A single business strategy exists when a

company derives more than 95 percent of its revenue from a single business
activity. As that percentage decreases, a business is said to be following
increasingly diversified strategies. A Multi-Business or diversified firm is a collection
of individual businesses. In a multi business firm corporate strategy takes a broad
overview role that is more encompassing than crafting strategy for a single business.
Corporate strategy is a strategy that firms use to compete across multiple
businesses. It's relevant for two groups of firms. First, for multi business firms, but
also, for single-business firms that is thinking of expanding into a new business,
after which they would become a multi-business firm.

• Single-Business Benefits Specialization and expertise are central advantages of a

single-business strategy. Small businesses often develop from a single
entrepreneurial idea or the core abilities of company founders. In a single-business
strategy, you can concentrate all planning, budgeting, investments, operations and
activities around developing an elite product or serving a specific customer market.
This single-minded focus allows you to align company departments and employees
around focused goals and gives you a better chance to brand your business based
on its expertise in a particular arena.

• Single-Business Challenges A drawback of a single-business setup is that you

may miss opportunities to expand your company into naturally correlated industries

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or marketplaces. Additionally, a single-business Pg. 3 strategy is sometimes riskier
in the long run. If your industry becomes obsolete or struggles through economic
conditions, you may be wiped out. Risking everything on one endeavor leaves you
nothing to fall back on.

• Multi-Business/Diversification Benefits Diversification is commonly associated with

risk minimization, whether in investing or business operation. If you operate in
multiple product categories or business types, you are more likely to survive failure
of one format or industry. By diversifying, you can expand your supplier base,
business partners and associates. This enables you to draw in other experts and
talents. A diversification strategy also gives you greater revenue potential if your
company effectively serves the needs of customers in each business format.

• Multi-Business/Diversification Challenges the extreme of diversification is

spreading yourself too thin. If you try to do more than your resources, strengths and
market potential can afford, you may end up not succeeding at anything. You also
put more pressure on company leaders to stay on top of goals, strategies,
partnerships and market factors in a diversification strategy. Diversification requires
more investment in product development and marketing, which makes it difficult to
distribute extra cash through dividend payments to owners.

Business Strategy of POWER GRID CORPORATION OF INDIA LIMITED

Power Grid Corporation of India Limited (Power Grid or 'the company') is an

India-based electric power transmission company. The company provides power
transmission services, consultancy services, telecommunication network
services, and operation and maintenance of transmission systems. It owned by
the Government of India. Power Grid provides consultancy services in
transmission, distribution and telecom sectors including planning and design,
engineering, load dispatch, OPGW on intra state network, procurement
management, operations and maintenance, financing and project management.
The company provides consultancy services to state-owned utilities, private
utilities, central public sector undertakings, and government departments. The
company is headquartered in Gurgaon, Haryana, India.

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Business Model of POWER GRID corporation Limited:-

POWER GRID is “Maharatna” Central Public Sector Enterprise. 51.34%

holding by Government of India and balance 48.66% by public Dividend
paying since 1993. In-house expertise in transmission sector consultancy
(Both Domestic and International), Telecommunications business using
existing Transmission Assets Investment in Energy Efficiency Investment in
Smart Grid. Undertakes transmission of electricity through Inter-State
Transmission System (ISTS). Operates ≍ 90% of Inter-State / Inter-Regional
networks NTAMC, Manesar / RTAMC carrying out management of company's
operating assets through State of Art Technology.
(A) Mission and Vison-Keeping pace with changing business environment,
POWERGRID had set its Vision and aligned its mission and objectives as a
vanguard of foresight.
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

(B) Type of Business:-

(1) Transmission EHV and HV Networks-
• Transmission System for CGS, IPPs, UMPPs and Renewable Energy
Integration.

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• Grid strengthening schemes.
• Inter-state, Inter-regional links.
• High Capacity Transmission Corridors for IPP Projects.
• Green Energy Corridors.
• Transmission Scheme for Ultra Mega Solar Power Parks.
• Developing / Strengthening International Links with neighboring countries like
Nepal, Bhutan, Bangladesh, Sri Lanka.
(2) Consultancy-
• Provides in-house expertise in the Transmission, Distribution and Telecom
sectors, including Planning, Design, Engineering, Load Dispatch, OPGW on
intra-state Transmission network, Procurement Management, Operation &
Maintenance, Financing and Project Management.
• Providing consultancy for implementation of intra-state transmission network
• Undertakes Capacity Building Assignments.
• Provides services both Domestically and Internationally
• Provides training, recruitment and studies
• Providing consultancy for implementation of Smart Grid Pilot Projects
• Energy Efficiency & Energy Audit.

(3) Telecom:-
• Telecom business leverages POWERGRID's nationwide transmission
infrastructure.
• Operates as a neutral carrier in the point to point Band Width Leasing
Business (DLC).
• Enterprise Services: MPLS VPN & Internet Services with built-in Quality of
Service (QoS) and Class of Service (CoS) SLA parameters.
• Offers choice to bandwidth (2Mbps to multiple 100Gig capacities) and
topologies (point to point, point to multipoint, and multipoint).
(C) Area of Business:-
Transmission-
• 170,724 km Transmission Lines
• 262 Sub-Stations
• >99 % System Availability

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 • 451,351 MVA Transformation Capacity
Consultancy-
• Transmission related consultancy to more than 150 domestic clients
• Global footprints in 20 countries catering more that 25 clients.
Telecom:-
• Owns and operates ≍ 71,673 km of Telecom Network.
• Points of Presence in 458 locations & Points of Interconnections in 780
locations.
• Intra City network in 256 cities across India.
• Backbone Telecom Network Availability > 99.5%
( D) R & D-

Vision- Leading Continuous improvements through innovation in business

processes with emphasis on development and/or demonstration of the State-of- the-
Art technologies and be the Global Technology Leader in power transmission.

Objectives
• Innovate, develop, demonstrate, evaluate and absorb state of the art power
transmission technologies for establishment of a smarter grid.
• Demonstration, assessment and deployment of cutting edge technologies and
condition monitoring techniques for efficient, effective and optimal operation of
the electric grid.
• Endorsement of basic and applied research for developing novel power
transmission technologies to meet clean and sustainable power transmission
requirement of the nation.
• Promotion of participative/collaborative research in power sector by bringing
agencies of mutual interest viz. academic institutions, national/international
research bodies on the same platform.
• Promote indigenous development of power transmission equipment and
related products by Indian manufacturers and supplement the efforts under
public-private partnership model.
• Enhancement of knowledge base and dissemination of knowledge gathered
among peers and stake holders.

POWERGRID Advanced Research & Technology Centre (PARTeC)

POWERGRID had been taking Research and Technological Development works in

the transmission sector through its own establishments scattered all over the country
and also in collaborative mode through manufacturers. Need was felt to undertake
full scale R&D activities by synergizing the expertise of various verticals to meet the
challenges and face technological advancement elsewhere in the world for optimal,
efficient and economic utilization of transmission system. Such R&D efforts would

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benefit significantly to enhance the performance, availability, reliability and efficient
operation of the transmission system.
In line with the above goal, POWERGRID established the prestigious Advanced
Research and Technology Centre (PARTeC) in district Gurugram, an ancient
mythological town meaning a place of learning. PARTeC was inaugurated by the
Minister of State (Independent charge), Ministry of Power & Energy on 18th Sep
2018.
PARTeC has been recognized as a Research & Test infrastructure facility by the
International Smart Grid Action Network (ISGAN) for testing, simulation studies and
research related works in Distributed Energy Resources (DER) and Smart Grid
research infrastructure.

Technologies adopted/implemented by POWERGRID

POWERGRID over the years has adopted latest and cutting-edge technologies for
transmission system reliability & availability, optimization of RoW, Capacity
upgradation, safety and security. Some of the notable includes EHV/UHVAC
systems up to 1200kV, HVDC systems Bi-pole & Multi-Terminal up to 800kV, VSC
based HVDC systems for bulk power transmission, High Surge Impedance Loading
Lines, HTLS conductor, Multi-circuit and narrow base/mono-pole structures,
FSC/TCSC in transmission systems for capacity upgradation & optimization of RoW
and SVC, STATCOM, Digital Substations, RIP bushings, Transmission Line
Arrestors, Geographic Information tools, Controlled Switching, Advanced monitoring
& analysis techniques to enhance the system reliability and availability. Some of
these technology adoptions in the recent past are highlighted here.
Technologies adopted/implemented by POWERGRID
POWERGRID over the years has adopted latest and cutting-edge technologies for
transmission system reliability & availability, optimization of RoW, Capacity
upgradation, safety and security. Some of the notable includes EHV/UHVAC
systems up to 1200kV, HVDC systems Bi-pole & Multi-Terminal up to 800kV, VSC
based HVDC systems for bulk power transmission, High Surge Impedance Loading
Lines, HTLS conductor, Multi-circuit and narrow base/mono-pole structures,
FSC/TCSC in transmission systems for capacity upgradation & optimization of RoW
and SVC, STATCOM, Digital Substations, RIP bushings, Transmission Line
Arrestors, Geographic Information tools, Controlled Switching, Advanced monitoring
& analysis techniques to enhance the system reliability and availability. Some of
these technology adoptions in the recent past are highlighted here.

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• POWERGRID migrated to RIP bushings having superior characteristics over
Oil Impregnated Paper (OIP) bushings technology in 400kV systems.
• POWERGRID is now introducing RIP bushings for 800kV Transformers and
Reactors for their increased availability.
• The chances of fire breaking out on RIP bushings are minimal and
catastrophic effects of its failure on nearby equipment in switchyard are very
little.
• POWERGRID migrated to RIP bushings having superior characteristics over
Oil Impregnated Paper (OIP) bushings technology in 400kV systems.
• POWERGRID is now introducing RIP bushings for 800kV Transformers and
Reactors for their increased availability.
• The chances of fire breaking out on RIP bushings are minimal and
catastrophic effects of its failure on nearby equipment in switchyard are very
little.
Current and Future Expansion Plan
• 1200kV Ultra High Voltage AC (UHVAC)- Indigenous development of
1200kV technology in collaboration with Indian equipment manufacturers at
National Test Station Bina.
• Established under public private partnership model in collaboration with 35
Indian equipment manufacturers and Central Power Research Institute.
• Brought India to the elite League of Nations having Ultra High Voltage AC
technology.
• Assisted in development of manufacturing capabilities up to 1200kV
indigenously and presently catering the needs of 800kV equipment
indigenously.
• Meet long term power transfer requirements in the country.
• Caters to the challenges like right of way (ROW) availability, environmental
conservation, and reduction of transmission losses.
• Power flow commenced in 2016.

• Digital Substation- POWERGRID has been a Global leader in

implementation of projects on Process Bus based Full Digital Substation
Technology.
• Paradigm shift in the way the control & protection system are tested and
maintained In Full digital substations.
• Improvement of overall availability of system by online Testing of control &
protection schemes from a centralized access point.
• Helps in advanced diagnostics, superior visualization of information flow,
reduced commissioning time and reduced environmental footprint.
• Successfully validated the performance of Full Digital substation Technology
through pilot projects at Bhiwadi and Neemrana.
• Implementation of two commercial Full Digital substation projects underway-
Greenfield Implementation at Chandigarh & Retrofit project for Malerkotla.

• Transformer/Reactor Online Condition Monitoring System (TOCMS)-

• A web-based, low cost asset analytics solution developed in-house by

POWERGRID.

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• Real-time monitoring POWERGRID’s nationwide fleet of Transformers
(around 550 nos.) and Reactors (around 950 nos.)-Mostly 400kV and 765kV
class equipment.
• Combines the data acquisition through SCADA (Supervisory Control and Data
Acquisition) from DGA sensors.
• Analyses the data and displays diagnostic information of Transformer/Reactor
condition using various international standards viz. IEEE (Institute of Electrical
and Electronics Engineers) C57.104, IEC (International Electrotechnical
Commission) 60599 and POWERGRID’s own interpretation technique.
• Equipped with visual as well as audio alarm in case of any abnormal
conditions, along with interpretation.
• Copyright for TOCMS has been granted by Copyright Office, Govt. of India in
Nov 2020.

• POWERGRID Asset Life Management System (PALMS)-

• An in-house asset analytics solution.

• Automatic fetching and evaluation of the transformer test data from
centralized database.
• Segregation of the transformers on the basis of their health index values and
based on the extent of deterioration using POWERGRID’s own interpretation
technique.
• Enough information about the health of the transformer to the user to take an
appropriate decision for repair, refurbish or replace at the time of evaluation.
• Reduction in the costly downtime of critical transformers and safeguarding
operator/worker lives.
• Assist in judicial utilization/allocation of resources (both financial and work
force) for maintenance of the transformers and replacement planning.
• PALMS is currently monitoring a fleet of over 3000 oil filled high voltage
equipment like transformers and reactors pan India.
• Copyright for PALMS has been granted by Copyright Office, Govt. of India in
Nov 2020.
• Patent application for PALMS has been filed at Indian Patent Office in Jan
2021.

• Mobile Capacitor Bank-

• Low voltage in various areas for few months in a year during paddy season is
a common phenomenon in agriculture intense area due to the pumping
activity.
• Occurrence of such seasonal load varies from location to location during this
period.
• In order to compensate the reactive power requirement, capacitor banks are
required to be installed at 33kV bus bar of an existing substation.
• However, keeping a fixed capacitor may not solve the purpose as the
requirement is not there throughout the year.
• A mobile capacitor bank which can be moved from one substation to another
whenever required is the needed solution.

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• A pilot project with two number of 33kV Mobile Capacitor Bank of 10 MVAR
capacity each having the steps of 5MVAR have been commissioned in one of
33kV Substation in Haryana.
• Mobile capacitor bank has a capacitor bank along with switchgear mounted
on a trailer. This will utilize the capacitor bank investment optimally as it will
deliver the reactive power wherever required.
• Field trial and evaluation of its effect on distribution system have been
successfully completed.

• Pollution Mapping-

• Pollution determination and mapping on the geographical map enables in

choosing appropriate type of the insulator in a particular area to minimize the
probability of occurrence of pollution flashover in lines.
• POWERGRID had taken up the activity initially in Northern region and
subsequently in Southern Region and Eastern Region along with CPRI and
respective State Transmission Utilities (STUs).
• The measurements were completed and pollution map was prepared and
shared with STUs and Regional Power Committees for usage during planning
state and operation phase by all stake holders.
• Report available at NRPC(link is external), ERPC(link is
external) and SRPC(link is external) website.
•

• In-house Tower Designs-

• High capacity multi circuit towers, monopole structures, narrow base towers,
etc. for different wind zones, have been designed in-house and prototype
tested and used in POWERGRID’s own transmission network.
• POWERGRID owns more than 250 designs as on date including special
towers.
• In-house design of tower has optimized the tower material requirement and
reduced right-of-way thus minimizing environmental impact.
• The ease of construction and maintenance are other accrued benefits from
these new designs.
• EV- Charging Infrastructure-

POWERGRID is currently operating EV charging stations in various cities of

India; namely, Ahmedabad, Bengaluru, Delhi, Gurugram, Faridabad,
Manesar, Hyderabad, Kochi, Kozhikode, Jammu and Puducherry. Further,
charging stations are under implementation in other cities as well.

MAJOR TRANSMISSION ASSETS COMMISSIONED INTER-REGIONAL

LINES
• ±800kV Raigarh - Pugalur LCC HVDC link along with Bipole-I (Pole-I and
Pole-II, 3000 MW) INTERCONNECTIONS WITH BANGLADESH
• 400kV D/c Baharampur (PG) - Bheramera (B’desh) line (2nd D/c line) - India
portion TRANSMISSION SYSTEM ASSOCIATED WITH ULTRA MEGA
SOLAR PARKS
• 400kV D/c Tumkur (Pavagada) PS - Devanahally (KPTCL) (Quad) line

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 • 400kV D/c Hiriyur - Mysore line
• 400kV D/c Banaskantha PS - Banaskantha (PG) line TRANSMISSION
SYSTEM FOR STRENGTHENING OF SOUTHERN REGION GRID
• 400kV D/c Pugalur HVDC Station - Pugalur line
• 400kV D/c Pugalur HVDC Station - Arasur line
• LILO of 400kV D/c North Trichur - Cochin line at North Trichur HVDC Station
• ±320kV VSC HVDC Pugalur - North Trichur (Kerala) link (One Symmetrical
monopole of 1000 MW) OTHER IMPORTANT TRANSMISSION LINES
• Additional line 400kV D/c line at P.K.Bari S/s & Silchar S/s. end for
termination of 400kV D/c P.K. Bari - Silchar line.

One Nation One Grid

The Indian Power system for planning and operational purposes is divided into five
regional grids. The integration of regional grids, and thereby establishment of
National Grid, was conceptualized in early nineties. The integration of regional grids
which began with asynchronous HVDC back-to-back inter-regional links facilitating
limited exchange of regulated power was subsequently graduated to high capacity
synchronous links between the regions.

The initial inter-regional links were planned for exchange of operational surpluses
amongst the regions. However, later on when the planning philosophy had
graduated from Regional self-sufficiency to National basis, the Inter-regional links
were planned associated with the generation projects that had beneficiaries across
the regional boundaries.

By the end of 12th plan the country has total inter-regional transmission capacity of
about 75,050 MW which is expected to be enhanced to about 1,18,050 MW at the
end of XIII plan.
Synchronization of all regional grids will help in optimal utilization of scarce natural
resources by transfer of Power from Resource centric regions to Load centric
regions. Further, this shall pave way for establishment of vibrant Electricity market
facilitating trading of power across regions. One Nation One Grid shall
synchronously connect all the regional grids and there will be one national
frequency.

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. Competitor Review

POWER GRID is “Maharatna” Central Public Sector Enterprise. Operates ≍ 90% of

Inter-State / Inter-Regional networks NTAMC, Manesar / RTAMC carrying out.
Currently its business type is monopoly.
SWOT Analysis
SWOT Analysis is a proven management framework which enables a brand like
Power Grid of India to benchmark its business & performance as compared to the
competitors and industry.

Power Grid of India is one of the leading brands in the energy & power sector.

Strengths

Below is the Strengths, Weaknesses, and Opportunities & Threats (SWOT) Analysis
of Power Grid of India. Strengths are:

1. Strong network in remote areas

2. Robust network across India
3. Efficient manpower

4. Very few network failure

5. Backing of Central Government

Weaknesses

Here are the weaknesses in the Power Grid of India SWOT Analysis:

1.Slow decision making process

2.Manualnetwork needs urgently computerization

3.Centralized authority

Opportunities

Following are the Opportunities in Power Grid of India SWOT Analysis:

1.Huge demand and supply gap

2.Large opportunity in expanding network
3.Can diversify into other network

Threats

The threats in the SWOT Analysis of Power Grid of India are as mentioned:
1.Outdated grid can fail anytime

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2. Intense competition from other major players and international players
3. Changing govt policies and govt intervention can affect operations
Financial Growth
POWER GRID is “Maharatna” Central Public Sector Enterprise. 51.34% holding by
Government of India and balance 48.66% by public Dividend paying since 1993.

Share holding Pattern as on 31.03.2021

3.57%

28.49%
51.34%

7.63%
2.43%
0.45% 6.08%
0.01%
President of India Bank and FIIs Insurance Company Corporate Bodies
Indian Public Mutual Fund FIIs/FCB/FPB Others

FINANCIAL PERFORMANCE as per annual report In FY 20-21, the Company has shown a stellar
financial performance. The Financial Performance during year under review as compared to the
previous FY 19-20 on standalone basis is summarized below:

FY 2020-21 FY 2019-20 Y-O-Y

Description
CR US $ CR US $ Growth %
REVENUE
Transmission Charges 36456.92 4960.13 34876.35 4745.08 4.53
Consultancy 501.28 68.20 610.98 83.13 -17.95
Telecom 707.45 96.25 698.21 94.99 1.32
Other Income 2861.46 389.31 2132.43 290.13 34.19
Total Income 40527.11 5513.89 38317.97 5213.33 5.77
Profit After Tax (PAT) 11935.78 1623.92 10811.18 1470.91 10.40
0.31 (US 0.28 (US
Earnings Per Share 22.81 $) 20.67 $) 10.35
1.81(US 1.68 (US
Book Value Per Share 133 $) 123.17 $) 7.98
Gross fixed asset 234284.3 31875.42 215190.84 29277.67 8.87
Long term borrowing 141251.5 19217.59 144979.64 19725.12 -2.57
Net worth 69578.84 9466.51 64439.79 8767.3 7.98
Debt Equity ratio 67:'33 69:'31
Return on net worth 17.51% 16.78%

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* Including current maturities of Long-Term Borrowings. Convenience conversion at US$1=`73.50, as
on 31.03.2021
For the FY 20-21, appropriation of profit has been made as follows:
(a) General Reserve-6000 Cr.
(b) Self-insurance Reserve- 278.79 Cr.

Power Grid Corporation of India Ltd has posted total income of Rs 40,824 crore
and profit after tax of Rs 12,036 crore on consolidated basis for the financial year ended
March, registering year-on-year growth of 6 per cent and 9 per cent.

On a standalone basis, the maharatna public sector undertaking under Ministry of Power
achieved total income of Rs 40,527 crore and profit after tax of Rs 11,936 crore, marking
a growth of 6 per cent and 10 per cent.

For the fourth quarter (January to March 2021), the total income and profit after tax on
consolidated basis are Rs 10,816 crore and Rs 3,526 crore. On standalone basis, the
total income and profit after tax are Rs 10,705 crore and Rs 3,516 crore respectively.

During the financial year 2020-21, the company incurred a capital expenditure of Rs
11,284 crore and capitalised assets worth Rs 21,467 crore on consolidated basis.
Powergrid's gross fixed assets on a consolidated basis stood at Rs 2.41 lakh crore as on
March 31 as against Rs 2.27 lakh crore last year.

The company maintained average transmission system availability of 99.76 per cent in
FY21.

For the first time, the board of directors has recommended issuance of common shares
as bonus shares in the ratio of 1:3 to shareholders.

The company has proposed a final dividend of 30 per cent (Rs 3 per share on a face
value of Rs 10 each) in addition to first and second interim dividends aggregating to 90
per cent (Rs 9 per share on a face value of Rs 10 each) already paid for the financial
year 2020-21.

The total dividend for the year thus amounts to Rs 12 per share compared to Rs 10 per
share paid for the previous year.

Total transmission assets of Powergrid and its subsidiaries stand at 1.69 lakh circuit km
of transmission lines and 4.37 lakh mega volt-amp of transformation capacity.

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 Conclusion

The Company has in place a “Disaster & Crisis Management Plan” for taking swift
actions during pre and post disaster conditions and for speedy restoration of
damaged power infrastructure. It outlines a hierarchical set up of crisis/ disaster
management at various levels for effectively and efficiently dealing with crises and
disasters as well as roles/ responsibilities of different departments in disaster
management.
Company is committed for maintaining a safe working environment for all its
employees and ensuring best possible safe conditions of work, for which all
necessary steps are taken to ensure that all known safety factors are considered
during design, construction, operation and maintenance of machinery and equipment
of Substations & transmission lines to the extent as applicable as per standards.
The cyber security initiatives are led by Chief Information Security Officer (CISO)
through the Information Security Department in the Company. The Corporate Office,
all the Regional Headquarters and 213 Substations of the Company are certified for
ISO:27001 Information Security Management System. The Company undertakes
extensive training programs for its staff and participates in programs & mock-drills
organized by CERT-In and NCIIPC.

Company uses various technological tools for ensuring better availability of

transmission lines such as aerial patrolling of transmission lines, thermo-vision
scanning, corona camera, high resolution video, digital camera, application-based
monitoring of transformers, reactors and patrolling of lines & real time updating of
data through online applications for effective monitoring of assets.

The lockdown in the month of March & April 2020 to prevent the spread of COVID-19
and consequent restriction on movement of men and material had impacted project
construction activities during the year. Various measures were taken to mitigate
COVID-19 impact on project construction. Workers at site were provided various
support during the lockdown period to tide over the situation.

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 References

➢ The data have been collected from the following sources:

1. The Internet
2. Google Search Engine
3. Wikipedia
4. The Times Of India
5. The Hindustan Times
6. Youtube Video Player
7. Study Material for International Business of DDE, Burdwan
University
8. Official Websites of Power grid Corporation of India LTD

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