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Power Grid Corporation of India Ltd. Company History and Annual Growth Details

In 1980 the Rajadhyaksha Committee on Power Sector Reforms submitted its report to the GoI
suggesting extensive reforms in the Indian power sector. Based on the recommendations of the
Rajadhyaksha Committee, in 1981 the GoI took 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.

Pursuant to this decision to form a national power grid, our Company was incorporated on October
23, 1989 under the Companies Act, 1956 as National Power Transmission Corporation Limited,
with the responsibility of planning, executing, owning, operating and maintaining the high voltage
transmission systems in the country. We received a certificate for commencement of business on
November 8, 1990. The name of our Company was changed to its present name Power Grid
Corporation of India Limited and a fresh certificate of incorporation was issued on October 23, 1992.
The name of our Company was changed to its present name from National Power Transmission
Corporation Limited as its then abbreviated form, NPTC Limited, had close resemblance to another
existing company, namely, NTPC Limited ('NTPC').

As on September 30, 2010, the total number of holders of Equity Shares of our Company is 792,096.
Our Company is presently listed on the BSE and the NSE.

Our Company is not operating under any injunction or restraining order.

Transfer of transmission assets from generating units

Initially, our Company was engaged in the management of the transmission assets owned by the
central generating companies such as the NTPC, NHPC Limited ('NHPC') and North-Eastern
Electric Power Corporation Limited. 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 pursuant to which the right, title and
interest of these three power generating companies in relation to the power transmission system,
comprising the main transmission lines, including the extra high voltage alternative current
transmission lines and the HVDC lines, and sub-stations, owned by them, were acquired by the GoI
and transferred to our Company, with effect from April 1, 1992. Under the Power Transmission
Systems Ordinance, our Company acquired all the rights, liabilities, assets, leaseholds, powers,
authorities and privileges and all movable and immovable property relating to the power transmission
systems owned by the three generating companies. The Power Transmission Systems Ordinance also
provided that all employees of the three generating companies who were associated with power
transmission systems would be deemed to be the employees of our Company. In April 1993, the
Power Transmission System Ordinance became a statute after receiving the assent of the President of
India.

Transmission assets of Neyveli Lignite Corporation Limited were taken over by our Company with
effect from April 1992 under the Neyveli Lignite Corporation Limited (Acquisition and Transfer of
Power Transmission System) Act, 1994. The transmission assets of Nuclear Power Corporation
Limited and Tehri Hydro Development Corporation Limited have also been transferred to our
Company with effect from April 1991 and August 1993, respectively, pursuant to memorandum of
understandings executed with our Company.

National and Regional Load Despatch Functions

In 1994, the GoI entrusted our Company with the further responsibility of controlling the existing load
despatch centres in the country with a view to achieve better grid management and operation.
Pursuant to this decision, the control of the five regional load despatch and communication centres
was transferred to our Company in a phased manner between 1994 and 1996. Our Company has
undertaken the ULDC and communication project ('ULDC Project') under which modernized load
despatch facilities have been established in each of the five regional centres. The implementation of
the ULDC Project has, amongst other things, caused the reduction of grid disturbances, improved grid
reliability and facilitated the effective implementation of availability based tariff. On February 25,
2009, the NLDC was inaugurated. The NLDC is responsible for monitoring the operations and grid
security of the national grid and supervises the scheduling and despatch of electricity over inter-
regional lines in coordination with the RLDCs. Our wholly-owned subsidiary, POSOCO, was
established in March 2009 to oversee the grid management function of our operations and
commenced operations in March 2010. We are in the process of transferring the movable assets of our
power system operations segment to our subsidiary with effect from October 1, 2010.

Designation as the CTU

Our Company was notified as the Central Transmission Utility by the GoI on December 31, 1998. We
continue to be the CTU under the Electricity Act as per the notification issued by the GoI on
November 27, 2003. Amongst other functions, as CTU we are required to (a) undertake transmission
of electricity through the inter-state transmission system; (b) discharge all functions of planning and
co-ordination relating to inter-state transmission systems, with certain specified authorities and
stakeholders; (c) ensure development of an efficient, coordinated and economical system of inter-state
transmission lines for smooth flow of electricity from generating stations to load centres; and (d)
provide non-discriminatory open access to its transmission system for use by any licensee or
generating company on payment of transmission charges and to any consumer on payment of
transmission charges and a surcharge thereon in accordance with the Electricity Act.

Under the Electricity Act, the CTU is required to undertake the functions of the RLDC and we are
therefore responsible for (a) optimum scheduling and despatch of electricity within the region, in
accordance with the contracts entered into with the licensees or the generating companies operating in
the region; (b) monitor grid operations; (c) keep accounts of quantity of electricity transmitted through
the regional grid; (d) exercise supervision and control over the inter-state transmission system; and (e)
carrying out real time operations for grid control and despatch of electricity within the region through
secure and economic operation of the regional grid in accordance with the grid standards and grid
code.

However, the National Electricity Policy states that the existing arrangement of CTU operating the
RLDCs will be reviewed by the GoI based on the experience of working with the existing
arrangement.

Navratna Company

On May 1, 2008, our Company was notified as a Navratna company by the GoI, through notification
(DPE OM No. 26(3)/2005-GM-GL-92). As a Navratna company, we are eligible for enhanced
delegation of powers to our Board, including (a) power to incur capital expenditure without
governmental approval; (b) ceiling on equity investment to establish financial joint ventures and
wholly owned subsidiaries in India or abroad will be 15% of the net worth of our Company in one
project limited to ' 10,000 million and the overall ceiling on such investments in all projects put
together will be 30% of the net worth of our Company; (c) power to enter into merger and
acquisitions subject to certain conditions; and (d) the Board has the power to further delegate the

powers relating to human resource management (appointments, transfers, postings etc,) of below
Board level executives to sub-committees of the Board or to executives of our Company as may be
decided by the Board.

Role in distribution reforms and rural electrification

In 2001, our Company was assigned the role of an advisor-cum-consultant, by the GoI, for
implementation of the APDRP in 18 states in India. The objective of the APDRP is to give impetus to
reforms in the power distribution sector and the responsibility of our Company extends to providing
assistance to SPUs in formulation of DPR, to technically examine the DPRs and recommend them to
the MoP and to monitor the implementation of the schemes, the commercial performance and reform
measures undertaken by the SPUs in the assigned geographical areas. We undertook the
implementation of distribution improvement schemes in the states of Bihar, Uttar Pradesh, Goa,
Gujarat, Tripura and Meghalaya on a deposit work basis. Our participation in APDRP concluded in
March 2009.


Major events

In addition to events described hereinabove, the following table illustrates the major events in the
history of our Company since its incorporation in 1989.

1989
Our Company was incorporated as National Power Transmission Corporation Limited.

1991
Transmission assets from Nuclear Power Corporation Limited were transferred to our Company
pursuant to a memorandum of understanding executed between the parties.

1992
Transmission assets from NTPC, NHPC and North-Eastern Electric Power Corporation Limited
were transferred to our Company pursuant to legislation promulgated by the Parliament.

The name of our Company was changed from National Power Transmission Corporation
Limited to Power Grid Corporation of India Limited.

1993
Transmission assets of Tehri Hydro Development Corporation Limited were transferred to our
Company pursuant to a memorandum of understanding executed between the parties.

1994
Our Company took over the management of the Southern Regional Load Despatch Centre.

Our Company entered into a memorandum of understanding with the MoP, which is revised
annually. We achieved the highest rating of Excellent under the memorandum of understanding.
Transmission assets from Neyveli Lignite Corporation Limited were transferred to our Company
pursuant to legislation promulgated by the Parliament.

1995
Our Company took over the management of the Eastern Regional Load Despatch Centre and the
North Eastern Load Despatch Centre.

1996
Our Company took over the management of the remaining two regional load despatch centres,
namely, the Northern Regional Load Despatch Centre and the Western Load Despatch Centre.

1998
Our Company formulated an Environment and Social Policy and Procedures Code to deal with
environmental and social issues relating to its transmission projects.

Our Company was formally notified as a CTU by the GoI.

Our Company was declared as a Mini Ratna Category I public sector undertaking by the GoI.

2001
Our Company was granted Infrastructure Provider II license (IP II) from the Department of

Telecommunications, GoI to pursue leasing of bandwidth capacity to various customers on its
telecommunications network.

2002
The unified load despatch and communications schemes for the northern and southern regions
were commissioned.

Our Company was appointed as the Advisor-cum-Consultant under the APDRP by the MoP for
power sector reforms.

The Sasaram HVDC back to back transmission system developed by our Company was
commissioned leading to the completion of the first phase of the construction of the National Grid.

The 2,000 MW Talchar-Kolar bipolar HVDC link developed by our Company was commissioned.

2003
Our Company entered into a joint venture arrangement with The Tata Power Company Limited
implementing a part of the entire transmission system associated with Tala Hydro-Electric Project
which was the first public-private sector initiative in the transmission sector.

The 400 KV Raipur-Rourkela line transmission line developed by our Company was
commissioned and the Western region, Eastern Region and North-Eastern Region begin operating
in a synchronized manner with a cumulative capacity of 50,000 MW.

Our Company secured its first international consultancy contract from Bhutan
Telecommunications.

2005
The unified load despatch and communications scheme for the eastern region was commissioned.

2006
The unified load despatch and communications scheme for the western region was commissioned.

Our Company entered into an agreement with REC and certain state governments and state
utilities for undertaking rural electrification works under the Rajiv Gandhi Grameen Vidyutikaran
Yojana in nine states in India.

2007
Dedication of transmission system associated with Tala Hydro-Electric Project which was the first
public-private sector initiative in the transmission sector by the Prime Minister Dr. Manmohan
Singh.

Listing of our Equity Shares on the Stock Exchanges.

2008
Our Company was declared as a Navratna public sector undertaking by the GoI.

The 220 KV Double Circuit Transmission line from Pul-e-Khumri to Kabul Transmission System
in Afghanistan was completed.

2009
The National Load Despatch Centre was established.

Our Subsidiary, Power System Operation Corporation Limited, was incorporated

Our Company was mentioned as the worlds third largest transmission utility by a news release
issued by the World Bank

2010
Our Company was selected as a consortium member to implement the National Knowledge
Network Project, a telecommunication infrastructure project.

Commissioning of the commercial operations of the National Load Despatch Centre.

Commissioning of the 220/110/20 KV Chimtala sub-station at Kabul, Afghanistan.

2011
Our Company entered into an MoU with Jamia Millia Islamia University for the training and
certification of its System Operators in Supervisory Control And Data Acquisition (SCADA)
technology.

Certifications, Awards and Recognitions

1993-1994 to present
Our Company has received the Excellent rating under the memorandum of understanding with the MoP since 1993-1994.

1998-2001 and
Our Company was awarded the MoU Excellence Award. 2003-08

2000-2001
Our Company was awarded the Indo-German Greentech Environment Excellence
Award for implementation of Environment and Social Policy and Procedures and green
belt development.

2004
Our Company was awarded the Golden Peacock National Quality Award (Runners Up)
in relation to quality standards.

Our Company was certified to operate an integrated management system which
complies with the requirements of BS EN ISO 9001:2000, BS EN ISO 14001:1996 and
OHSAS 18001:1999 standards in relation to quality, environment and occupational
health and safety standards respectively with respect to design, engineering,
procurement, construction, operation and maintenance activities for transmission
systems up to 800 KV, HVDC, Supervisory Control and Data Acquisition (SCADA),
Energy Management Systems and Communication Projects.

2006
Our Company was awarded the Green Award 2006 by the World Bank with respect to
the Powergrid System Development Project II for commitment in the field of
environmental sustainability.

The Eastern and North Eastern region of our Company were awarded the prize for the
best transmission system availability under Category I and Category II, respectively for
the year 2004-05.

2007
Our Company was certified for PAS 99:2006 integrating the requirement of ISO
9001:2000 for quality, ISO 14001:2004 for environment management and OHSAS
18000:1999 for health and safety management systems.

2008
Our Company was recognised for its meritorious performance by the MoP for the year
2006-07 and won a Gold Shield for the 132KV transmission system in the North
Eastern region and a Silver Shield for the 220KV and 400KV transmission system in
the Western region.

2009
Our Company was awarded First Prize at IEEMA Power Awards 2009 ceremony for
Excellence in Power Transmission by NDTV Profit.

Our Company was recognised for its meritorious performance by the MoP for the year
2007-08 and won a Gold Shield for the transmission system at North Eastern region, a
Silver Shield for the transmission system at the Western region and a Silver Shield for
the early completion of the transmission project in Southern region I.

Our Company was awarded the All India Organization of Employers Industrial
Relations Award 2007-08 by the Ministry of Labour, GoI.

Our Company was awarded Gold trophy under the institutional category in SCOPE
excellence awards for the year 2008-2009.

Our Company was awarded the Star Public Sector Company Award for 2007-08 by
Business Standard.

Our Company was awarded the Overall Utility Performance in Transmission Segment
Award for 2008-09 by KW Conferences in association with Council of Power Utilities.
Our Company was featured in the list of top 250 global energy companies compiled by
Platts, a leading provider of energy and commodities information. Our Company was
also named amongst the fastest growing global energy companies ranking for 2009
issued by Platts.

Our Company won the Emerging Telecom Infrastructure Provider Award at the
INFOCOM CMAI National Telecom Awards 2009.

Our Company received a Certificate of Merit by the International Federation of
Training and Development Organizations, Canada at the Global Human Resource
Development Awards, 2009.

2010
Our Company received three Gold Shields for the transmission system availability of
Western region - I, of North Eastern region and for the early completion of 220 KV
D/C Pul-e-Khumri to Kabul transmission line in Afghanistan; a Silver Shield for the
system availability at the Easter region - I, in the National Awards for Meritorious
Performance in Power Sector 2008-09 awarded by the MoP.

Our Company is certified with Integrated Management System (IMS) as per Publicly
Available Specification, PAS 99:2006 integrating requirement of ISO 9001:2008, ISO
14001:2004 and OHSAS 18001:2007. Our Company is also certified with SA
8000:2008 for its Social Accountability System.
Our Company won the 'Award for best HR strategy in line with business' by Asias
best employer brand awards.
 
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