power grid corporation of india ltd share price Management discussions

MANAGEMENT DISCUSSION AND ANALYSIS REPORT

1. ECONOMIC & SECTOR OUTLOOK

India: A Growing Story

India remains a bright spot in an otherwise turbulent global economy. Economic activity is experiencing a slowdown globally and is projected to fall from an estimated 3.5 percent in 2022 to 3.0 percent in the calendar years 2023 and 2024 as per the World Economic Outlook of IMF, released in July 2023. Amidst this, IMF has placed the growth projection for India at 6.1% in FY 2023-24, which is still the highest among Emerging Markets and Developing economies. The Economic Survey of India has projected a baseline growth of 6.5% for the countrys economy.

India has set its commitment to achieving Net Zero emissions by 2070 and is committed to reducing the emission intensity of its GDP by 45% by 2030, from the 2005 level, and achieving 50% cumulative electric power installed capacity from non-fossil fuel-based energy resources by 2030. Honble PM has also launched Mission LiFE (Lifestyle for Environment) as a movement to nudge individual and community action to protect and preserve the environment with three phases - Phase 1: Change in Demand, Phase 2: Change in Supply and Procurement, and Phase 3: Change in Policies that can support both sustainable consumption and production.

As India grows, its demand for energy and resources is set to rise. Energy use in the country has doubled in the last 10 years and power generation capacity also grew from 222 GW (gigawatts) to 416 GW. The governments continued push to expand the power sector, and a greater thrust on low-cost renewable energy, has resulted in a significant decrease in the energy deficit from 10.1% in FY10 to just 0.5% by end of FY23. Even as the demand for energy is expected to go up further, this growth needs to be complemented by a shift towards lifestyle and technologies that enhance the share of renewable sources and reduce the reliance on fossil fuels.

With the increasing thrust on sustainability and energy security, electricity is preferred to replace other sources of energy. In renewables, India has made tremendous progress, with installed capacity up from 57 GW in 2010 to 172 GW in March 2023, with a target to further triple it to 500 GW by 2030. The surging renewable capacity is set to play a critical role in achievina the Net Zero emission taraet and helping India emerge as a global clean energy hub. Power transmission infrastructure is one of the catalysts behind this growth of renewables and thus the economic growth and prosperity of the country.

Power Sector Developments 2022-23

The power sector with its three pillars: Generation, Transmission, and Distribution, is crucial to Indias economic growth. The Generation capacity mix of the country has undergone significant changes in the last decade. As on March 2023, the share of fossil-based capacity is 57% in the total capacity mix while non-fossil-based capacity is 43%. In terms of generation, the contribution of non-fossil-based energy is consistently increasing and is 26% of total generation in 2023.

The overall growth in the power sector across various segments, during the last 3 years, is given below:

				Growth
	FY 20-21	FY 21-22	FY 22-23	(Y-o-Y)	3 years (CAGR)
Generation
Total Installed Capacity (incl. RE) GW	382.15	399.49	416.05	4.15%	4.34%
Renewable Energy Sources (RES) Capacity GW (excluding large hydro)	94.43	109.85	125.15	13.93%	15.12%
Total Generation (incl. RE) BU	1381.86	1491.86	1624.15	8.87%	8.41%
Generation from RE sources (Bll) (excluding large hydro)	147.25	170.91	203.55	19.10%	17.57%
Cross-Border Power Exchange (Bll)	18.74	16.83	18.09	7.49%	-1.75%
Transmission
Transmission Lines (ckm) (220 kV and above)	4,41,821	4,56,716	4,71,341	3.20%	3.29%
Transformation Capacity (MVA) (220 kV and above)	10,25,468	11,04,450	11,80,352	6.87%	7.29%
Inter-Regional Power Transfer Capacity (MW)	1,05,050	1,12,250	1,12,250	-	3.37%
Inter-Regional Power Transfer (Bll)	214.77	228.00	236.00	3.51%	4.83%
Power Markets
Short Term Transactions (Nos.)	69,036	89,544	1,02,692	14.68%	21.96%
Short Term Transactions (Energy Transacted) BU	123.67	162.81	171.81	5.53%	17.87%
Power Supply Position
Peak Demand (GW)	190.20	203.01	215.88	6.34%	6.54%
Peak Met (GW) Peak	189.40	200.54	207.23	3.34%	4.60%
Deficit (%)	0.4%	1.20%	4%	-	-
Energy Demand (BU)	1,275.53	1,379.81	1,511.84	9.57%	8.87%
Energy Met (BU)	1,270.66	1,374.02	1,504.26	9.48%	8.80%
Deficit (%)	0.4%	0.04%	0.50%	-	-

Source: CEA, Grid India Monthly Reports March 2023

The augmentation of the national grid as is evident from consistent growth in transmission lines and transformation capacity, is supporting the higher injection of renewables into the grid for the transfer of power from RE rich states to other states.

The distribution sector has also shown remarkable progress over the year. As per the 11^th Annual Integrated Rating, the power distribution sectors financial deficit nearly halved in FY 2022 vis-a-vis FY 2020. This deficit narrowed on the back of rising demand for power and was driven by a 50% improvement in the ACS - ARR Gap.

AT&C losses have reduced to 16.5% in FY 22; significantly lower than 19.9% in FY 20. This improvement has been mainly driven by collection efficiency which improved from 93.1% in FY20 to 97.2% in FY22 whereas Billing efficiency remained almost flat.

Key Initiatives/Reforms & Regulatory Changes in Power Sector

MoP Rules/Guidelines

a) MoP Electricity (Late Payment Surcharge and Related Matters) Rules, 2022

MoP has issued MoP Electricity (Late Payment Surcharge and Related Matters) Rules, 2022 superseding MoP Electricity (Late Payment Surcharge) Rules, 2021.

These rules shall be applicable to outstanding dues of Generating companies, ISTS licensees and Electricity Trading licensees. The LPS shall be payable on outstanding dues after 45 days at the rates specified in the rules. "Base rate of LPS" is linked to one-year MCLR of SBI as on 1^st April of the financial year plus 500 bps. In addition, regulation of access for default in payment of dues has also been provided in the rules. A onetime dispensation is provided to State Discoms for liquidation of their past outstanding dues (dues beyond due date) including Late Payment Surcharge up to 3^rd June 2022 through rescheduled monthly instalments wherein maximum number of instalment is decided as per the rules, based on total outstanding.

b) Revised Scheme for Flexibility in Generation and Scheduling of Thermal/Hydro Power Stations through bundling with Renewable Energy and Storage Power, 2022

With the revised scheme, all coal/lignite/gas based thermal generating stations or hydro power stations may establish or procure renewable energy from a RE power plant which is either co-located or at new locations. Such RE energy can be utilized for supplying power against their existing commitments/PPAs. The RE in the mix shall count towards the RPO compliance of the Distribution Licensee. Further, net savings realized, if any, from supply of RE power instead of Thermal/Hydro power under existing PPA shall be shared between the generator and beneficiary in ratio of 50:50.

c) Electricity (Promoting Renewable Energy through Green Energy Open Access) Rules, 2022

Under the said Rules, all consumers with contracted demand / sanctioned load of 100 kW and above shall be eligible for green energy open access. MoP has notified Grid India as Central Nodal Agency to set up and operate a single window green energy open access system for renewable energy.

First amendment to said rules provides that a consumer can elect to purchase green energy by requisition from distribution licensee. The charges to be levied on Green Energy Open Access consumers is dealt in detail.

d) Policy for connectivity to Generating Stations on Central Public Sector Enterprise (CPSE) with Inter State Transmission System

MoP, in regard to representation from CPSE generating station having connectivity only with Intra State Transmission System requesting for connectivity with Inter State Transmission System, has decided the following.

. At the transmission planning stage itself, all new CPSEs Generating Stations shall be considered to be connected with ISTS.

• A State can plan and build Intra State transmission lines of required capacity at their own cost for drawl of free/allocated power from CPSE generating Station located within the State without having ISTS charge liability.

. Further, if the host State has more than 50% share in the CPSE generating station, then connecting the intra-state transmission line for the drawl of States share may form part of the ISTS as per the regulation Of CERC.

e) Electricity (Amendment) Rules, 2022

MoP has notified the Electricity (Amendment) Rules, 2022 amending the Electricity Rules, 2005. Under the amended Rules, the following major new rules have been inserted:

• Surcharge payable by consumers seeking open access shall not exceed twenty per cent of the average cost of Supply.

. Appropriate Commission to specify Price adjustment formula through which variation is power purchase costs shall be automatically passed through consumer tariff. Formula provided in Rules to be applicable till it is separately notified by Appropriate Commissions.

. Regarding resource adequacy, the Central government and State Commissions issue Guidelines and Regulations respectively. NLDC, RLDCs and SLDCs to assess resource adequacy at National, Regional and State level respectively.

. Rules have been provided for development of hydro power, energy storage system, and implementation of uniform renewable energy tariff for central pool.

. MoP has also substituted rules for resolution of disputes wherein the appropriate commission will pass a final order, within 120 days, which may be extended by 30 days for reasons to be recorded in writing. If final order cannot be issued, then an interim order will be issued otherwise after 120 days or 150 days, as the case may be, the aggrieved party may be allowed to make approach Appellate Tribunal.

CERC Regulations

a) Central Electricity Regulatory Commission (Connectivity and General Network Access to the inter-state Transmission System) Regulations, 2022

CERC has issued Central Electricity Regulatory Commission (Connectivity and General Network Access to the inter-State Transmission System) Regulations, 2022. CERC vide notification dated 1^st April 2023 has issued

first amendment to CERC (Connectivity and General Network Access to the inter-State Transmission System) Regulations, 2022. The First Amendment Regulations and the specific provisions in the principal regulations regarding fresh applications for Connectivity and GNA, their processing and grant has come into force with effect from 5^th April 2023.

b) Central Electricity Regulatory Commission (Deviation Settlement Mechanism and related matters) Regulations, 2021

The subject Regulations has come into force with effect from 5^th December 2022. CERC based on operational feedback on the implementation of said Regulations has issued Suo moto order dated 6^m February 2023 in petition Ol/SM/2023 vide which it has relaxed/ revised certain provisions of DSM Regulations, 2022 wherein Charges for deviation have been revised depending upon the quantum of deviation. Further, charges for deviations in extreme circumstances i.e. when frequency is in band of 50.03 Hz" have been provided notwithstanding the charges applicable under DSM Regulations, 2022.

c) CERC order regarding "Procedure for Short Term Open Access in inter-State Transmission System through National Open Access Registry (NOAR)"

The procedure shall be applicable on all the applications related to the ISTS-STOA (bilateral or collective transaction). Registration on NOAR is necessary for a short-term customer to be able to make an application for seeking standing clearance or applying for STOA transaction. After successful registration on NOAR, the customers have to apply to the host RLDCs for the issuance of a standing clearance for availing ISTS STOA in accordance with Regulation 8 of Principal Regulations.

d) Guidelines for Registration and Filing Application for Establishing and Operating Over the Counter (OTC) Platform

CERC has notified Guidelines for Registration and Filing Application for Establishing and Operating Over the Counter (OTC) Platform. "Over the Counter (OTC) Platform" is an electronic platform for exchange of information amongst the buyers and sellers of electricity.

e) CERC Suo-Motu order in Petition No. 17/SM/2022 regarding Directions by the Commission to the Power Exchanges registered under the Power Market Regulations, 2021

CERC has directed all the Power Exchanges to limit the upper price cap to Rs.12/kWh in DAM (including GDAM), RTM, Intra-day, Day Ahead Contingency, and Term-Ahead (including GTAM) Contracts until further orders.

2. ENABLERS TO PROMOTE RENEWABLE ENERGY

Renewable Energy Sector is emerging as a significant player in the grid-connected power generation capacity and is gearing to play a much bigger role in achieving energy security in the coming years. To accelerate the growth in renewable capacity addition, the following initiatives have been taken:

Enabling Transmission Infrastructure

For enabling the growth of Renewable Energy (RE) capacity, geographic areas which have high solar and wind energy potential, need to be connected to Inter-State Transmission System (ISTS) so that the power thus generated can be evacuated to the load centres. As the gestation period of RE generation projects is much less than the gestation period of the transmission system, the same needs advanced planning and execution. In this direction, Government of India has released a Transmission network plan for the Integration of over 500 GW non fossil capacity addition by 2030 which details the various transmission schemes providing connectivity from RE potential zones, implementation phases, financing needs etc.

Gol Budget Focus

Union budget 2023-24 has considered Green Growth as one of the seven top priorities for ushering green industrial and economic transition and sustainable energy in India and has envisaged various projects towards economy transition to low carbon intensity and schemes such as Pradhan Mantri Kisan Urja Suraksha evam Utthaan Mahabhiyan (PM-KUSUM), Solar Rooftop Phase II, 12000 Mega Watt (MW) Central Public Sector Undertaking (CPSU) Scheme Phase II, etc. have been launched.

RPO & Storage Trajectory

A Joint-Committee under the Co-chairmanship of Secretary, Ministry of Power and Secretary, Ministry of New and Renewable Energy, was constituted on 17^th December 2020 to recommend RPO trajectory beyond 2021-22. Based on the recommendations of the Joint Committee and discussions with MNRE, MoP through order dated 22^nd July 2022 has specified the RPO and Energy Storage Obligations Trajectory beyond 2021-22 till 2029-30.

Year	Wind RPO	HPO	Other RPO	Total RPO
2022-23	0.81%	0.35%	23.44%	24.61%
2023-24	1.60%	0.66%	24.81%	27.08%
2024-25	2.46%	1.08%	26.37%	29.91%
2025-26	3.36%	1.48%	28.17%	33.01%
2026-27	4.29%	1.80%	29.86%	35.95%
2027-28	5.23%	2.15%	31.43%	38.81%
2028-29	6.16%	2.51%	32.69%	41.36%
2029-30	6.94%	2.82%	33.57%	43.33%

Source: National Electricity Plan 2022-32

The Energy Storage Trajectory mandates storage on energy basis as 1% for 2023-24 onwards to 4% for 2029-30. The energy storage obligation shall be calculated in energy terms as a percentage of total consumption of electricity.

Year	Storage Obligation (on energy basis)
2023-24	1%
2024-25	1.5%
2025-26	2%
2026-27	2.5%
2027-28	3%
2028-29	3.5%
2029-30	4%

MoP order dated 22^nd July 2022

Amendment to CERC Regulations, 2023 - sharing of transmission charges and Losses.

Waiver of Inter-State Transmission System (ISTS) charges for inter-state sale of solar and wind power for projects to be commissioned by 30^th June 2025. This waiver will remain for 25 years. Battery storage systems that are charged using energy from Renewable Generating stations or Renewable hybrid generating stations, which start operating before 30^th June 2025, will be eligible for waiver of transmission charges for 12 years.

Energy Conservation (Amendment) Act, 2022

Energy Conservation (Amendment) Bill, 2022 includes provisions for mandatory minimum use of non-fossil fuel sources and setting up of carbon trading markets. The Carbon-Market would be instrumental in creating a deeper and wider market for energy saving, reducing emissions from various industries, and incentivizing for cleaner fuels.

Promoting Pump Storage Plants

Government of India has issued guidelines to promote development of Pump Storage Projects (PSP) in the country. As per the revised draft NEP published by the Central Electricity Authority, the country would require 26.7 GW of Pumped Storage Projects and 47.2 GW of BESS (5 hour) to integrate the RE capacity envisaged till 2032.

Indian Electricity Grid Code Regulations, 2023

Central Electricity Regulatory Commission (Indian Electricity Grid Code) Regulations, 2023 has been notified recently. The Grid Code apart from the provisions relating to the role of various statutory bodies and organizations and functional linkages among them, contains extensive provisions including integration of renewables; ancillary services and reserves; and cyber security etc.

3. OUTLOOK FOR THE INDIAN POWER SECTOR

Energy Demand & Consumption

The energy demand as per 20^tfl EPS is going to increase from 1600 BU in 2023-24 to 2474 BU in 2031-32.

FY 2022-23 (Energy demand) :	: 1511 BUs
Projections as per 20^th EPS
FY 2023-24
. Energy Requirement	: 1600 BU
. Peak demand (Ex Bus)	: 230 GW
FY 2031-32:
. Energy Requirement	: 2474 BU
. Peak demand (Ex Bus)	: 366 GW

Indias per capita consumption (1255 units in 2022) is around one- third of the global average. Between 2012 and 2022, the consumption has increased from 877 BU to 1380 BU and is envisaged to increase to 2474 BU by 2031-32.

The enhanced pace of industrialization, urbanization, and rural transformation will demand a huge quantum of energy. Strong economic growth shall continue to drive electricity demand. As per CEA projections, Countrys peak demand is likely to reach 335 GW by 2030.

The generation capacity is going to increase sharply in 2023-2030 period with the Total Generation installed capacity increasing to 777 GW in 2029-30 from the current 416 GW in 2022-23 with mainly renewable generation getting added.

The non-fossil-based installed capacity is likely to be about 65% of the total installed capacity and non-fossil fuels-based gross generation is estimated to contribute around 45% of the gross electricity generation during the year 2029-30.

As per CEA, the projected gross electricity generation (Bll) in the year 2029-30 is likely to be 2441 BU comprising of 1365 BU from thermal (Coal, Gas and Lignite), 984 BU from RE Sources (including 223 BU from Hydro), and 92 BU from nuclear as shown below:

Due to large scale RES penetration by 2030, the energy balancing would require adequate flexibility in the grid. Flexible resources such as BESS and a Pumped storage system shall be required on pan-India basis. 41.6 GW BESS and 18.9 GW PSP by 2030 has been identified in CEAs report on Optimal Generation Capacity Mix Report 2.0.

10 GW off-shore wind potential has been planned in the states of Gujarat and Tamil Nadu.

Opportunities in Transmission Sector

Transmission is a vital element in the value chain of the power sector. It is an enabler for seamless integration of renewable energy, movement of power to the load centres and ensures the availability of reliable and affordable

power to consumers.

CEA Report on Transmission System for Integration of over 500 GW RE Capacity by 2030 identifies various transmission lines aggregating to 50,890 ckm and 433,575 MVA transformation capacity at new/existing substations under ISTS for integration of wind and solar capacity by 2030, at an estimated cost of 52,44,200 crores. Following these additions to the Inter-state Transmission System, the cumulative inter-regional transmission capacity is likely to be about 1,50,000 MW in 2030.

a) Inter-State Transmission System

As per the 20^th Electric Power Survey (EPS) report of CEA, peak demand for 2027-28 is envisaged to be about 294 GW, and total installed capacity shall be about 702 GW. To integrate the envisaged generation capacity and projected demand, the following asset addition in ISTS is to be made by 2027-28 as per the rolling plan of CTUIL.

SI. No.	Financial Year	ckm addition	MVA addition	Estimated cost (in 5 crore)
1	2023-24	-	1,000	185
2	2024-25	6,510	58,435	19,637
3	2025-26	11,760	1,45,160	77,842
4	2026-27	7,894	74,775	53,863
5	2027-28	2,028	6,630	26,967
	Total	28,192	2,86,000	1,78,493

Source: Rolling Plan 2027-28 for Inter-State Transmission System by CTUIL.

The Inter-Regional ( R) transmission capacity is expected to grow from the present level of 1,12,250 MW to about 1,38,740 MW by 2027-28.

b) Intra-State Transmission system:

Development of an Intra-State Transmission System by State Transmission Utilities (STU) shall be commensurate with the development of an Inter-State transmission system & Distribution system as it is a vital link in the power supply chain between Inter-State Transmission & Distribution System. Development of Intra-State Transmission System shall enhance the ability of States to provide better services to their consumers, reduction in Power outages due to overloading/tripping, and further reduction in AT&C losses.

c) Cross-Border Inter-connections:

Presently, India is connected with its neighboring countries, Nepal, Bhutan, Bangladesh, and Myanmar through various electrical interconnections with a cumulative power transfer capacity of about 4,433 MW. The cross- border power transfer by India with neighboring countries is through inter-Governmental bilateral cooperation, which plans for cross-border interconnection and system operation. The existing, under construction, and planned cross-border transmission capacity of India with neighboring countries is summarized below:

				(Fig in MW)
Country	Existing (as on March 2023)	Under Construction	Planned	Total
India-Bangladesh	1160	0	1000	2160
India-Bhutan	2070	2220	0	4290
India-Myanmar	3	0	505	508
India-Nepal	1200	1900	4570	7670
India-Sri Lanka	0	0	500	500
	4433	4120	6575	15128

Source: Rolling Plan 2027-28 for Inter-State Transmission System by CTUIL.

d) One Sun, One World, One Grid

In order to study various aspects viz., Technical, Operational, Regulatory & Legal, Commercial and Institutional mechanisms of grid interconnections and formulate the framework for the development of transmission interconnections among various regions viz. South Asia (SA), South East Asia (SEA), Middle East (Gulf Cooperation Council [GCC]), Africa, Europe, etc. as part of OSOWOG, the Ministry of Power, Government of India has constituted a Task Force with members from POWERGRID, CEA, CTU, CERC, SECI & Grid-lndia. Studies on various aspects related to existing cross-border transmission interconnections in above regions and benefits of regional grid interconnections in terms of optimal utilization of energy resources including renewables, utilization of peak time diversity, sharing of reserves, the economy in operation, development of vibrant power market, etc. have been identified.

e) Other emerging opportunities:

i) Grid scale battery energy storage technologies

Indian power system is witnessing significant capacity addition from renewable energy sources which is expected to gather pace with plans to have 500 GW RE by 2030. This pace in the electricity sector puts huge premium on robust grids and other sources of flexibility in the grids. As such, there would be growing need for energy storage plants for smooth integration of these renewables in the grid and to stabilize the electrical grid.

Battery Energy Storage System (BESS) will be set up both as part of RE generation projects and as part of transmission elements to meet the requirement of Round-the-Clock (RTC) power. As per National Electricity Plan (Vol l), the total storage requirement in the year 2026-27 is likely to be 16.13 GW/82.37 GWh which includes 7.45 GW/47.76 GWh PSP-based storage and 8.68 GW/34.72 GWh of BESS based storage. This storage capacity requirement increases to 73.93 GW/411.4 GWh in 2031-32 which includes 26.69 GW/175.18 GWh PSP and 47.24GW/236.22 GWh of BESS.

Storage as a Transmission element can make use of economies of scale by establishing utility-scale energy storage plants and can cater to the demands of grid stability.

ii) Revamped Distribution Sector Scheme

This scheme aims to improve the quality, reliability, and affordability of power supply to consumers through a financially sustainable and operationally efficient distribution sector. The Scheme has an outlay of 53,03,758 crore over a period of five years from FY 2021-22 to FY 2025-26. Under the scheme about 25 crore smart meters are to be installed in TOTEX mode and approx. 4 crore meters are given to CPSEs for implementation. This scheme shall further create opportunities for capital investment/ partnering with the State utilities through various models like consulting services/ handholding to prospective states.

iii) Transmission system for Off-shore wind

Government of India has set a target of 37 GW installed offshore wind energy capacity by 2030, mainly off the coast of Gujarat (Gulf of Khambhat) and Tamil Nadu (Gulf of Mannar). In this direction, your company is gearing up for various activities involved in the development of an offshore wind energy evacuation system which comprises the laying of submarine export power cable, connection to onshore substation through transition joint, and integration to the main grid.

iv) Hydrogen Economy and Infrastructure

Government of India is proactively approaching towards early development of Hydrogen (H2) Economy Infrastructure in the Country. Green Hydrogen (H2), which is formed through electrolysis of water with the help of RE power, is the next generation fuel. It is estimated that the green hydrogen production would be close to major ports and end-use industries will be fertilizers, refineries, steel plants etc. MNRE is in the process of identifying the additional RE Potential Zones for setting up the RE generation capacity as well as the location of potential sites for manufacturing of Green Hydrogen and Green Ammonia. In the budget speech of 2023-24, an outlay of 519,700 crore was announced under the National Green Hydrogen Mission, which will facilitate transition of the economy to low carbon intensity, reduce dependence on fossil fuel imports.

To cater to additional electricity demand on account of Green Hydrogen production by 2030, additional RE capacity would be required. For initial projects of Green Hydrogen production, the planned transmission system will be adequate. However, with the progress of Green Hydrogen production and visibility of additional RE potential zones, transmission system would further be planned and taken up for implementation. As per Optimal generation Mix report, April 2023 of CEA, additional energy requirement for the country on account of green hydrogen production of around 10 million Tonnes (considering only 5 million tonnes load on Grid) has been estimated as 250 BU by FY 2029- 30.

4. COMPANYS OUTLOOK

I. Transmission

Your company is one of the largest transmission companies in the world and it operates both in inter-state and intra-State transmission sectors. POWERGRID owns & operates Extra High Voltage (EHV) transmission lines spread over the length and breadth of the country along with EHV AC & HVDC Substations.

The power transmission network (along with its subsidiaries) as well as other segments i.e., Telecom and consultancy are discussed in the Directors Report.

In light of the large scale opportunities in the inter-state segment, your company remains confident of maintaining its pre-eminent position in the Indian transmission sector. In the recently held 14^th NCT, projects worth 575,248 crore have been approved which will be put up for bidding in the current financial year. This has created huge potential in the sector. Further, under regulated tariff mechanism, we also see opportunities to implement strategic and important projects including cross-border interconnections.

By the year 2030, massive addition in inter-state segment capacities would also necessitate the addition of an intra-State transmission system to facilitate last-mile connectivity. We have executed Intra state transmission system in the states of Uttar Pradesh and Madhya Pradesh in recent years and we are actively scouting for various opportunities under Tariff Based Competitive Bidding in Intra-STS. Your company looks forth to engaging with the states for development of intra-state transmission systems through consultancy, Joint ventures and project development through Tariff Based Competitive Bidding.

II. Telecom

Telecom is an essential enabler for the economic development of a country. The drivers such as an increase in affordability, growing demand for data, and Government initiatives such as Digital India will contribute towards the growth of the Telecom Sector in India. The development and application of 5G services, shall further spur opportunities in the telecom sector.

Your Company has a significant presence in Telecom Sector leveraging its pan-India overhead optic fiber network using optical ground wire (OPGW) on Extra High Voltage (EHV) power transmission lines. The company maintains a backbone availability of ~ 99.99%, and hence, is a preferred partner for telecom service providers and other customers. To enhance focus in this segment, a wholly owned subsidiary of POWERGRID has been incorporated. After CERC approval was received recently, the Business Transfer Agreement has been executed by your company with POWERGRID Tele Services Limited (PTSL) and the process to hive off the business is in progress.

PTSL is exploring opportunities in ILD Business to serve countries viz. Bangladesh, Bhutan, Nepal etc. Further, an exclusive dedicated Telecom Network for the National Transmission Asset Management Centre (NTAMC) is underway. The company is advancing well in its endeavors toward the establishment of a Data Centre. Approval for the use of land and building at the Manesar sub-station for the establishment of a Data Centre has been recently accorded by CERC. Further, the company is exploring setting up Hyper-Scale & Edge Data Centers and carrying out the preliminary activities for its setup at a few locations.

The companys initiatives in providing their transmission towers for FM transmission are in progress. Successful signal testing has been done by the Ministry of Information & Broadcasting (Mol&B). GPS coordinates of all tower locations have been shared with Mol&B to map their requirement.

The solution has also been apprised to Governing Council of National Broadband Mission developed for utilization of Power Transmission Towers for mounting Mobile Base Transceiver Station (BTS) and Radio Transmission Systems, Antennae, etc. along with Fiber connectivity & Reliable Power Supply for mobile communication. DoT has intimated to all the Unified Licensee/ Virtual Network Operators/ Unified Access Services (UAS) licensees to utilize transmission line towers of POWERGRID for Mobile Communications.

III. Consultancy

Domestic

Leveraging vast experience and expertise in the power sector, we are providing consultancy services to various Utilities, CPSEs, and private agencies in the areas of Power transmission system planning and design, substation design and construction, transmission line engineering, contracting, project management services, development of SCADA, Energy efficiency, Smart grid infrastructures, Transmission Asset Management Centers, etc. Further, your Company has been playing a pivotal role in centrally sponsored schemes of the Northeast region and UTs of Jammu & Kashmir and Ladakh.

POWERGRID is committed to providing the best consultancy services to its clients and constantly innovating and developing new solutions to meet the ever-changing needs of the power sector. With a large pool of experienced professionals and domain knowledge, POWERGRID is playing a vital role in implementing Revamped Distribution Sector Scheme (RDSS) for strengthening the distribution system and sub-transmission system. MoUs have been signed with Kashmir Power Distribution Corporation Ltd. (KPDCL), Jammu Power Distribution Corporation Ltd. (JPDCL) and Ladakh Power Development Department (LPDD) for implementation of RDSS works. A non-binding and non-exclusive MoU for Smart Metering (part of RDSS) has been signed with Madhya Gujarat Vij Company Limited (MGVCL) and Uttar Gujarat Vij Company Limited (UGVCL). About 65-70 lakh meters are expected to be installed for which the company has completed the procurement activities and is now ready for award. Your Company is continuously engaged with prospective states Utilities for implementing Smart Metering infrastructure development works under the RDSS scheme.

Your company has commenced the development of projects on BOOM basis for industry. Your company is implementing a dedicated transmission line on BOOM basis for Reliance Industries Limited (Jamnagar Oil Refinery) and few more entities have shown interest in the implementation of the transmission projects on similar basis.

With the countrys impetus on reducing carbon emissions, numerous companies are striving to reduce carbon emissions. To meet this requirement, these companies are setting up renewable power plants to meet their energy requirements, while others are exploring the option of connecting to the Interstate Transmission System (ISTS) to access a substantial supply of renewable power for their refineries and plants. In both scenarios, the establishment of adequate transmission infrastructure becomes crucial for evacuation and drawl of power from the grid. Recognizing the opportunities arising from the development of transmission infrastructure, your company has approached multiple companies operating in the aforementioned industries. Several Companies have expressed their willingness to associate with your company in the development of the dedicated transmission infrastructure.

International

Global expansion is a key component of the companys strategy to become a world leader in the power transmission sector. Starting with a modest journey, we have expanded our presence in 23 countries across Asia, Africa, CIS, Asia Pacific, the Middle East, and Europe and are constantly looking for new opportunities in Africa, Asia, the Middle East, and CIS countries. Our customers include government energy suppliers, multilateral financial institutions such as the World Bank, ADB, IFC, and governments. The company strives to share its expertise and experience with other countries by providing consulting services from concept to transmission system commissioning, feasibility study and DPR preparation, project management and construction supervision, procurement support, asset management, and capacity building.

Company signed a joint development project with African 50 in 2021 to take up investment in Kenya and a Private Investment Proposal (PIP) was jointly submitted by POWERGRID along with Africa50 in Nov2022. PPP Committee of Kenya after scrutinization of PIP has recommended sponsors to proceed to the "Development Phase". Meanwhile, a cooperation agreement has also been signed with Africa 50 to introduce a transmission system in Tanzania, which will also include the Tanzania Electricity Supply Company. Further, we are actively engaged in G2G discussions with neighboring countries for reinforcement of the existing transmission system and also to establish new cross border transmission connectivity. Also, we are in the process of formalizing an agreement for the preparation of a detailed project report for additional cross-Border Interconnection between India and Myanmar which also include the establishment of a 500 MW HVDC BtB and 230 kV Transmission line within Myanmar.

5. Major Constraints / Challenges / Threats faced in construction, operation & maintenance of Transmission systems and mitigation thereof:

In spite of several policy initiatives taken by Govt, of India and POWERGRID, timely obtaining clearance for forest/wildlife area and securing land for upcoming substations remains a major challenge, largely due to involvement of external factors/agencies. Conserving Right-of-Way (Row) through forests, agricultural land, urban areas, industrial establishments as well as other infrastructure, upgradation of transfer capacity of lines matching with power transfer requirement, securing land for substations are major areas of concern in development of transmission network in the country.

Challenges in Construction	Mitigation actions
1 Availability of land for construction of Substation/ transmission lines.	Apart from investing in new technologies like Gas Insulated Switchgear (GIS) Substations and Hybrid substation, your Company, has decided to secure land for its substation through mutual consent on Willing Buyer Willing Seller basis as far as possible, in order to minimize social impact and ensure long term beneficial relationship with land-owners in particular and community in general. Securing land voluntarily instead of involuntary acquisition by invoking provision of applicable act has resulted in smooth and resistance free acquisition of land for substations.
	Your Company has developed design for suspension Guyed tower for 400 kV D/C transmission lines. This Guyed tower occupies lesser footprint on ground and is light weight in comparison to conventional lattice towers and can be used in hilly terrain. Also developed steel Monopole with all phases on one side for use in areas having severe ROW constraints. Apart from above, schemes for cable termination on lattice tower have also been developed.
	Also, indigenous vendor development of Insulated crossarms for transmission lines upto 400kV Voltage level has been taken up. Insulated crossarms arms shall result in reduction in Right of Way requirement and tower weights by approx. 10-15%.
2 Forest/wildlife Clearances challenges	POWERGRID is utilizing Fortnightly Regional Coordination Meeting (FRCM) conducted by each Regional Integrated Regional Offices (IRO) of MoEFCC for resolution of its pending forest/wildlife cases as well as their approval by Regional Offices of MoEFCC expeditiously. Further, access to Decision Support System (DSS) software of MoEFCC and PM GatiShakti Portal has facilitated in optimization of transmission line route vis-a-vis forest, protected areas and other row constraints during early stage of planning and formulation of forest/wildlife proposal.
Challenges in Construction	Mitigation actions
3 Timely expansion of Transmission system to meet the requirements of Renewable Energy (RE) capacity addition	Alternative procurement and project execution strategies to meet the short timeline requirement of Transmission projects have been implemented.

II. The Company is continuously taking efforts maintain the high standards of availability and reliability of its transmission system through use of latest state-of-art maintenance practices. Maintenance activities are planned well in advance and an Annual Maintenance Plan is prepared for every asset through live line or shutdown maintenance, as per technical feasibility which has minimized the tripping of lines especially.

The software tool. Transformer Online Condition Monitoring System (TOCMS), is operational at NTAMC and RTAMC. POWERGRID has invested in the latest available technological tools and techniques for better operational performance and in this direction following latest technologies have been adopted by your Company:

Challenges in Operations and Maintenance	Mitigation actions
Increasing operational & maintenance efficiency	• Developed In house Al/ ML based defect identification tool PG AMRIT (POWERGRID Asset Management though Artificial Intelligence in Transmission) which has been integrated with transmission line patrolling platform PG-DARPAN (POWERGRID Digital Application for Routine Patrolling & Assessment of Network). PG AMRIT automatically identifies the defects from Tower photographs using Al/ML algorithms. This has aided in optimizing the efforts of line maintenance manpower and shifted the focus from defect identification to defect rectification.
	• +/- 500 kV, 1500 MW HVDC Rihand -Dadri Bi-Pole Terminals and 500 MW Vindhyachal HVDC back to back Sub-stations started operating remotely from NTAMC (National Transmission Asset Management Centre) Manesar. This is first time in India that a HVDC Sub-station is being operated from remote control centre. This innovation presents a promising future for enhancing efficiency and reducing costs.
	• Asset Management Dashboard (UDAAN) to ensure a single window access to all the key performance indicators (KPIs) by integrating data stored in various formats.
	• Developed In-house, Asset Health Indexing Software for Circuit Breakers. It automatically fetches and evaluates the Circuit Breaker data from a centralized database and assigns health index to the equipment based on the extent of deterioration using POWERGRIDs own interpretation technique. This will help in migration to Reliability Centered Maintenance of Transmission Asset.
	• Hotline maintenance and Emergency restoration system (ERS): Implemented hot line maintenance technique to carry out maintenance of critical elements in live condition to avoid outages. POWERGRID is also using ERS for quick restoration of transmission lines in case of failures.
	• Development of special design for transmission line foundations: Developed special foundations for towers in Snow avalanche area with raised pedestal and tie beam all around at multiple levels to cater to impact loading due to snow avalanche.
	• Indigenous Vendor Development for Supply of Emergency Restoration System (ERS) and Insulated crossarms: Keeping in view the Aatma Nirbhar Bharat Abhiyaan & Make in India initiative of Government of India, taken up indigenous vendor development of Emergency Restoration System (ERS) for emergency restoration of transmission lines.

6. RISK MANAGEMENT FRAMEWORK

Your Company has established a comprehensive Enterprise Risk Management (ERM) framework that enables the achievement of the Companys strategic objectives by identifying, analyzing, assessing, mitigating, monitoring, and governing any risk or potential threat to these objectives. The strategic, operational, financial, HR, compliance, and cyber security risks identified by the businesses and functions are systematically monitored and controlled through various Key Performance Indicators (KPIs).

Your Company has a dedicated Board level Risk Management Committee comprising one Independent Director and three Executive Directors as members to review the KPIs, and processes and address major risks through mitigating actions on a continuing basis to improve business efficiency. The risk management committee also monitors compliance-related risks regularly and ensures strict compliance with all regulatory norms. The systematic and proactive identification of risks, and mitigation thereof, enables your company to boost performance with effective and timely decision-making.

Your company has designated a Chief Risk Officer. During the reporting period, three meetings of the Risk Management Committee were held to monitor/review the risks.

7. Internal Financial Control and Adequacy

POWERGRID has a comprehensive internal control mechanism in place to verify the Accounting and Financial Management System, adequacy of controls, material checks, financial propriety aspects and compliance implementation mechanism. The elaborate guidelines for preparation of Accounts are followed consistently for uniform compliance.

In line with the regulatory requirements, the Internal Auditors were appointed by the Board of Directors. Regular and exhaustive Internal Audit on half yearly basis is carried out by the experienced Cost / Chartered Accountant Firms in close co-ordination with Companys own Internal Audit department to ensure that all checks and balances are in place and all internal controls/systems are in order. The Corporate Internal Audit Department also carries out System Audit and Management Audit to reassure the effectiveness of internal control mechanism. The scope of the Internal Audit is derived from the Internal Audit Plan approved by the Audit Committee. The Audit Committee meets at regular intervals. The significant / material audit findings are placed before the Audit Committee for review, discussion and subsequent action.

8. Integrated Management Policy:

POWERGRID is committed to:

. Establish and maintain an efficient and effective "National Grid" with due regard to time, cost, Technology and value additions.,

. Sustainable development through conservation of natural resources and adopting environment friendly technology on principles of Avoidance, Minimization and Mitigation.

. Ensure safe, occupational hazard free and healthy work environment to the satisfaction of stake holders in all areas of its activities and shall endeavor to continually improve its management systems and practices in conformity to legal and regulatory provisions.

9. Financial Discussion and Analysis

Total Income

			(Rs. in crore)
Particulars	FY 2022-23	FY 2021-22	Change %
Revenue from Operations	43,343.05	39,933.39	8.54
Other Income	2,625.02	2,402.48	9.26
Total Income	45,968.07	42,335.87	8.58

Total income in FY 2022-23 was 545,968.07 crore, which represented an increase of 8.58% over the total income of 542,335.87 crore in FY 2021-22. In FY 2022-23, transmission and transmission related activities constituted 91.60% of our total income, with the balance coming from consultancy, telecommunication business and other income.

Factor affecting your Companys results of operations Tariff norms

The transmission charges of the transmission system or an element used for inter-state transmission of electricity and implemented under Regulated Tariff Mode are governed by tariff norms notified by the CERC pursuant to Central Government Tariff Policy and legislation. The transmission licensee shall make an application as prescribed in the Tariff Regulations, for determination of tariff based on capital expenditure incurred or projected to be incurred during the prevailing tariff block for the transmission system as the case may be.

Under Tariff Regulations applicable for Block 2019-24, your Company has been permitted to charge transmission charges for recovery of Annual Fixed Cost ("AFC") consisting of tariff components such as Return on Equity, Interest on Outstanding Debt, Depreciation, Operation & Maintenance expenditure and Interest on Working Capital.

The Return on Equity (ROE) is computed on pre-tax basis by grossing up the base rate of return on equity of 15.5% at the effective tax rate of the respective financial year. Interest on Outstanding Debt is calculated considering repayment of loan for each year deemed to be equal to the allowed depreciation. Recovery of Operation & Maintenance (o&M) expenses for maintaining the transmission systems are based on specified norms for Transmission Line, Sub-stations and HVDC systems, etc. For interest on working capital, Rate of interest is considered on normative basis and is linked to one-year MCLR of SBI plus 350 bps as on 1^st April of the tariff year.

For projects being implemented under TBCB route, the tariff is discovered through competitive bidding process wherein the successful bidder would be the one who has quoted the lowest levelized tariff for a period of 35 years.

Besides above rebate for timely payment of transmission charges as per Sharing Regulations, 2020 and Late Payment Surcharge (LPS) as per MoP Rules for delayed payments is also applicable. MoP, vide Gazette Notification dated 22^nd February 2021, notified the Electricity (Late Payment Surcharge) Rules, 2021. Subsequently, MoP on 3^rd June 2022 issued Electricity (Late Payment Surcharge and Related Matters) Rules, 2022 superseding the Electricity (Late Payment Surcharge) Rules, 2021. The LPS shall be payable on outstanding dues after 45 days at the rates specified in the rules. "Base rate of LPS" is linked to one-year MCLR of SBI as on 1^st April of the financial year plus 500 bps. In addition, regulation of access for default in payment of dues has also been provided in the rules.

Sharing of Inter-state transmission charges for RTM projects and TBCB projects is governed by CERC (Sharing of Inter State Transmission Charges and Losses) Regulations, as notified from time to time in line with the National Tariff Policy and provisions of the Electricity Act, 2003. Presently, CERC (Sharing of Inter State Transmission Charges and Losses) Regulations, 2020 are in vogue.

As per the Sharing Regulations, 2020, the Central Transmission Utility (CTU), has the responsibility of billing, collection and disbursement of transmission charges on behalf of all ISTS licensees in the country. Your company ceased to be the CTU w.e.f. 1^st April 2021 and the Central Transmission Utility of India Limited (CTUIL), a wholly owned subsidiary of the Company has been notified to undertake and discharge all functions of CTU. Your Company continues to be a deemed Transmission Licensee under the Electricity Act, 2003.

Certain expenses and income, allowed under CERC Regulations are required to be reimbursed/passed on to beneficiaries in future, are to be accounted in the Statement of Profit and Loss as per the provisions of Ind AS 114 Regulatory Deferral Accounts. Such expenses and income, to the extent recoverable/payable as part of tariff under CERC Regulations are treated as Regulatory Deferral Assets/Liabilities.

9.1 Revenue from Operations

			(Rs. in crore)
Particulars	FY 2022-23	FY 2021-22	Change %
Revenue from Transmission Business (including Other Operating Revenue)	42,104.78	38,599.71	9.08
Consultancy- Project Managements; Supervision	509.29	753.34	(32.40)
Revenue from Telecom Business	728.98	580.34	25.61
Total	43,343.05	39,933.39	8.54

Your Company is mainly engaged in the business of Transmission of Power. The revenue from transmission business is increased by 9.08% mainly due to commissioning of new transmission assets, interest on differential between provisional and final tariff and one time CERC Orders.

Your Company also earns revenue from Consultancy (including project management and supervision services) and Telecommunication business. Consultancy income mainly consists of fee for the execution of transmission and communication system-related projects on a turnkey basis and technical consulting assignments for Indian state utilities, joint venture/ subsidiaries companies and utilities in other countries. The revenue from consultancy business decreased by 32.40% mainly due to decrease in income from NERPSIP, Comprehensive Scheme Sikkim and Arunachal Pradesh due to completion of works. The revenue from our telecommunication business is mainly on account of leasing the bandwidth of our fibre - optic lines. The revenue from telecom business increased by 25.61% mainly due to new contracts.

9.2 Other Income

		(Rs. in crore)
Particulars	FY 2022-23 FY 2021-22	Change %
Other Income	2,625.02 2,402.48	9.26

The other income increased mainly due to an increase in interest from loans to subsidiaries, interest from PGInvIT, unwinding of Interest on financial Assets, dividend income from Subsidiaries & JV Companies and PGInvIT.

10. Expenses

			(Rs. in crore)
Particulars	FY 2022-23	FY 2021-22	Change %
Expenses	28,753.38	25,767.90	11.59

Expenses have been categorized as

(i) Employee Benefits Expense

(ii) Finance Costs

(iii) Depreciation and Amortization Expense

(iv) Other Expenses.

10.1 Employee Benefits Expense

			(Rs. in crore)
Particulars	FY 2022-23	FY 2021-22	Change %
Employee Benefits Expense	2,504.96	2,234.76	12.09

Employee benefits expenses include salaries and wages, performance related pay, allowances & benefits, contributions to provident and other funds and staff welfare expenses. The increase is due to annual increments, an increase in dearness allowance, house rent allowence and commissioning of new assets.

10.2 Finance Costs

			(Rs. in crore)
Particulars	FY 2022-23	FY 2021-22	Change %
Finance Costs	9,744.25	8,210.94	18.67

As compared to previous year, the increase of 18.67% in finance cost was mainly on account of interest on capitalisation of new transmission systems, interest on loan to subsidiaries, increase in FERV due to increase in exchange rate which is partially offset due to repayment of loans.

10.3 Depreciation and Amortization Expenses

			(Rs. in crore)
Particulars	FY 2022-23	FY 2021-22	Change %
Depreciation and amortization expenses	12,939.88	12,550.58	3.10

As compared to previous year, the increase of 3.10% in Depreciation and Amortization Expenses was mainly on account of capitalisation of new transmission assets.

10.4 Other Expenses

			(Rs. in crore)
Particulars	FY 2022-23	FY 2021-22	Change %
Other Expenses	3,564.29	2,771.62	28.60

As compared to previous year, the increase of 28.60% in other expenses is mainly on account of increase of foreign exchange rate variation, CSR expenses, travelling expenses, security expenses, right of way charges (telecom) and vehicle hiring charges etc.

Pursuant to the Electricity (Late Payment Surcharge and Related Matters) Rules, 2022, some distribution licensees have opted for rescheduling of their dues with Central Transmission Utility. The companys portion of dues have been presented at their fair value under Trade Receivables (Non-current/Current) considering the requirements of applicable Indian Accounting Standards. Consequently, the fair value difference amounting to 5153.83 crore has been charged as Other Expense.

During the year, allowance for impairment amounting to 552.14 crore has been provided towards impairment of investment in and loan to National High Power Test Laboratory Private Ltd

11. Profit before Exceptional Items, Tax & Regulatory Deferral Account Balances

			(Rs. in crore)
Particulars	FY 2022-23	FY 2021-22	Change %
Profit before Exceptional Items, Tax & Regulatory	17,214.69	16,567.97	3.90%
Deferral Account Balances

11.1 Tax Expenses

Tax expenses consist of Current tax and Deferred tax.

			a Rs. o o c
Particulars	FY 2022-23	FY 2021-22	Change %
Current Tax	2913.67	3,282.06	(11.22)
Deferred Tax	(775.57)	(571.00)	35.83

Provision for deferred tax is made in respect of timing difference on account of higher depreciation charge available under income tax provisions. In the opinion of the management, it is probable that future economic benefits will flow to the Company in the form of availability of set off against future income tax liability by recognizing MAT credit. Future taxable profits will be adjusted against (a) tax holiday u/s 80-IA of Income Tax Act, 1961 for the projects commissioned upto 31^st March, 2017 (b) initial depreciation on the assets to be commissioned in future and (c) regular income tax depreciation u/s 32 of Income Tax Act, 1961 and thereafter tax amount will be set off against MAT credit to the extent of 51,985.18 crore (Previous year 53,288.36 crore). Hence, the same has been recognized as Deferred Tax Assets during the year.

11.2 Net Movement in Regulatory Deferral Account Balances-lncome/(Expenses) (Net of Tax)

Net movement in Regulatory Deferral Account Balances-lncome/(Expenses) (net of tax) for FY 2022- 23 stood at 5256.43 crore as against 5(522.66) crore in previous year. This is mainly due to increase in Foreian Exchanae Rate Variation (FERV).

12. Profit after Tax (PAT)

			(f in crore)
Particulars	FY 2022-23	FY 2021-22	Change %
Profit after Tax (PAT)	15,333.02	17,093.76	11.16*

*excluding exceptional Items of e3300.67 crore (.Net of Tax; on account of monetization of assets of 5 Nos. of subsidiaries through POWERGRID Infrastructure Investment Trust (PGInvIT).

Your Company recorded a growth in PAT at 11.16% (excluding exceptional items) as compared to previous year mainly due to commissioning of new transmission assets.

13. Return on Net Worth

			(in %)
Particulars	FY 2022-23	FY 2021-22	Change
Return on Net Worth	18.51	18.11*	0.40

*excluding exceptional Items of f3300.67 crore (Net of Tax) on account of monetization of assets of 5 Nos. of subsidiaries through Powergrid Infrastructure Investment Trust (PGInvIT).

14. Financial Ratios

Particulars	FY 2022-23	FY 2021-22
Debtors Turnover	3.85	4.46
Inventory Turnover	32.22	29.14
Interest Coverage Ratio	3.93	4.61
Current Ratio*	0.90	0.62
Debt Equity Ratio	60:40	63:37
Operating Profit Margin	92%	93%
Net Profit Margin	35%	43%

*Current ratio increased by 45% due to decrease in current maturities of Long term borrowings and Shortterm borrowings. Refer note 64(l) "Additional Regulatory Information as per Schedule III to the Companies Act, 2013-Ratios" for reasons for variance > 25%.

15. Other Comprehensive Income (Net of Tax)

		(r Rs. in crore)
Particulars	FY 2022-23	FY 2021-22
Other Comprehensive Income	(106.70)	290.93

The variation is mainly due to decrease in valuation of investment in units of PGInvIT and PTC India Limited.

16. Credit Ratings

Your Companys financial prudence is strongly reflected in the credit ratings accorded by domestic and international ratings agencies. For details, refer.

Report on Corporate Governance.

17. Liquidity and Capital Resources

			(Rs. in crore)
Particulars	FY 2022-23	FY 2021-22	% Change
Cash and cash equivalents	4,146.24	2,457.47	68.72

The Company depends on both internal and external sources of liquidity to provide working capital and to fund capital requirements.

The increase in cash and cash equivalents in comparison to previous year is mainly on account of increase in current accounts balance and Term Deposits (with maturity less than 3 months) (including interest accrued).

18. Cash Flows

		(Rs. in crore)
Particulars	Year ended March 31
	2023	2022
Cash and cash equivalents at the begining of the year	2,457.47	4,430.05
Net cash from operating activities	35,268.25	24,640.20
Net cash from /(used in)lnvesting activities	(4,315.83)	2,188.54
Net cash from /(used in) Financing activities	(29,263.65)	(28,801.32)
Cash and cash equivalents at the end of the year	4,146.24	2,457.47

18.1 Net Cash from Operating Activities

Net cash flows from operating activities are principally used to service long-term debt, for investments and for payment of dividend.

18.2 Net Cash from /(used in) Investing Activities

Net cash used in investing activities during FY 2022-23 was primarily reflected in expenditure on Property, Plant & Equipment and Capital Work-in-Progress (including advances for capital expenditure) of 53,064.54 crore, Loans & Advances to Subsidiaries & Joint Ventures (including repayment) of 53,089.78 crore, investment in Subsidiaries & Joint Ventures of 5358.83 crore and receipt of interest on deposits, bonds and loans to subsidiaries & JVs, PGInvIT of 51,200.14 crore, surcharge received of 5192.79 crore and dividend received of 5671.71 crore.

18.3 Net Cash from /(used in) Financing Activities

During FY 2022-23, your Company raised 59,140.44 crore of new long-term borrowings. These borrowings included principally Rupee bonds/Loans. The Company repaid 515,540.65 crore of long-term borrowings and paid interest and finance cost of 59,709.69 crore. In the FY 2022-23, the Company paid dividend of 58,544.93 crore comprising final dividend of 51,569.48 crore for FY 2021-22 and interim dividend of 56,975.45 crore for FY 2022-23.

19. Capital Expenditure

			(Rs. in crore)
Particulars	FY 2022-23	FY 2021-22	% Change
Capital Expenditure (Cash Basis)	8,850	9,426	(6.11)

Your Companys capital expenditure is primarily used for the installation of new transmission capacity and the expansion of existing capacity. Our capital expenditure during FY 2022-23 and FY 2021-22, includes CAPEX for TBCB companies of 53,867 crore and 54,501 crore respectively.

20. Non-current Assets

			(Rs. in crore)
Particulars	FY 2022-23	FY 2021-22	% Change

Non-current assets have been categorized as (i) Property, Plant & Equipment; (ii) Capital work-in- progress; (iii) Intangible assets; (iv) Intangible assets under development; (v) Investments (vi) Trade receivables (vii) Loans; (viii) other non-current financial assets; and (ix) other non-current assets.

20.1 Property, Plant and Equipment

			(Rs. in crore)
Particulars	FY 2022-23	FY 2021-22	% Change
Property, Plant & Equipment (Net Block)	1,70,801.36	1,78,175.63	(4.14)

Property, Plant & Equipment (Net Block) has decreased by 4.14%. It mainly consists of Land, Buildings, Transmission Lines, Substations, HVDC, ULDC Equipment, Furniture Fixtures, Right of Use (ROU) assets etc.

20.2 Capital work in progress

			(f in crore)
Particulars	FY 2022-23	FY 2021-22	%Change
Capital work-in-progress	7,668.13	7,344.46	4.41

Capital work-in-progress was increased by 4.41% in FY 2022-23. The cost of materials consumed, erection charges and other expenses incurred for the implementation of projects are shown on the Balance Sheet as capital work-in-progress, pending capitalization of the completed project. The change in this amount is due to capitalization of several transmission projects and due to undertaking of new transmission projects.

20.3 Intangible assets

			(Rs. in crore)
Particulars	FY 2022-23	FY 2021-22	%Change
Intangible Assets	1,476.19	1,556.13	(5.14)

Intangible Assets consist of Electronic Data Processing Software, Right of Way-Afforestation Expenses, Telecom licenses and development of 1200 kV Transmission System

20.4 Intangible assets under development

			(Rs. in crore)
Particulars	FY 2022-23	FY 2021-22	%Change
Intangible assets under development	31.08	31.53	(1.43)

Right of way-afforestation expenses during construction period are shown as Intangible assets under development. The change is on account of capitalization of expenditures on Transmission Projects during FY 2022-23 and undertaking of new transmission projects.

20.5 Investments

			(Rs. in crore)
Particulars	FY 2022-23	FY 2021-22	% Change
Investments (Quoted)	1,774.46	1,926.43	(7.89)
Investments (Un-Quoted)	5,640.49	5,302.10	6.38
Total	7,414.95	7,228.53	2.58

Investments under Quoted category are investments made in PTC (India; Limited and Investment in Units of POWERGRID Infrastructure Investment Trust (PGInvIT) computed at Fair Value. Investments under Unquoted category consist of equity investment in Subsidiaries & Joint venture companies at cost. Major investments in Subsidiaries & Joint venture as on 31^st March 2023 are:

SI. No.	Name of the Subsidiary/Joint Venture	Amount invested as on 31.03.2023 (Rs. in crore)
	Subsidiaries
1	POWERGRID NM Transmission Limited	490.95
2	POWERGRID Khetri Transmission System Limited	198.25
3	POWERGRID Medinipur Jeerat Transmission Limited	647.00
4	POWERGRID Mithilanchal Transmission Limited	233.20
5	POWERGRID Ajmer Phagi Transmission Limited	115.00
6	POWERGRID Himachal Transmission Limited	432.50
7	POWERGRID Fatehgarh Transmission Limited	141.00
8	POWERGRID Southern Interconnector Transmission System Limited	709.00
9.	POWERGRID Varanasi Transmission System Limited	187.56
10.	POWERGRID Bhuj Transmission Limited	232.00
11.	POWERGRID Rampur Sambhal Transmission Limited	142.10
12.	POWERGRID Meerut Simbhavali Transmission Limited	195.13
13.	POWERGRID Bhind Guna Transmission Limited	111.95
14.	POWERGRID Bikaner Transmission System Limited	100.00
	Joint Ventures
15.	Powerlinks Transmission Limited	229.32
16.	Teestavalley Power Transmission Limited	120.12
17.	North East Transmission Company Limited	106.96
18.	Bihar Grid Company Limited	334.13
19.	Energy Efficiency Services Limited	463.61

20.6 Trade Receivables (Non-Current Assets)

		(Rs. in crore)
Particulars	FY 2022-23	FY 2021-22
Trade receivables	695.57	-
Total	695.57	-

Electricity (Late Payment Surcharge and Related Matters) Rules, 2022 was notified by Ministry of Power on 03 June 2022, provides that at the option of the Distribution licensees, the outstanding dues including late payment surcharge (LPSC) upto the date of the said notification shall be rescheduled upto a maximum period of 48 months in the manner prescribed in the said Rules and no further LPSC shall be charged on those dues. Pursuant to the above, some of the distribution licensees have opted for rescheduling of their dues with Central Transmission Utility.

The companys portion of dues have been presented at their fair value under Trade Receivables (Non- current/Current) considering the requirements of applicable Indian Accounting Standards.

20.7 Loans (Non-Current)

			(Rs. in crore)
Particulars	FY 2022-23	FY 2021-22	% Change
Loans to Related Parties	16,450.85	13,880.84	18.51
Loans to Employees	446.44	388.94	14.78
Total	16,897.29	14,269.78	18.41

The increase in loans in comparision to previous year was mainly due to increase in Unsecured Loans given to Subsidiaries for execution of Projects acquired by the Company through Tariff Based Competitive Bidding (TBCB) route.

20.8 Other non-current financial assets

			(Rs. in crore)
Particulars	FY 2022-23	FY 2021-22	%Change
Other non-current financial assets	4,170.04	4,144.46	0.62

Other non-current financial asset mainly consists of Recoverable from GOI fully serviced Bonds and Lease Receivables. Company has issued Government of India fully serviced bonds amounting to S3,487.50 crore during FY 2018-19 for raising of Extra Budgetary Resources (EBR) for Gol scheme of Power System Development Fund in terms of letter no. 7/1/2018-OM dated 21^st January, 2019 of Ministry of Power, Government of India for meeting accrued liabilities for creation of Capital Assets. The repayment of principal and the interest payment on such bonds shall be met by Gol.

20.9 Other non-current assets

			(Rs. in crore)
Particulars	FY 2022-23	FY 2021-22	%Change
Other non-current assets	4,912.17	4,797.73	2.39

Other non-current assets mainly comprise of advances for Capital Expenditure, deferred foreign currency Fluctuation Asset, advance recoverable in kind or for value to be received from employees and other authorities.

21. Current Assets

			(Rs. in crore)
Particulars	FY 2022-23	FY 2021-22	% Change
Current Assets	21,943.02	20,111.35	9.11

Current Assets have been categorized as (i) Inventories; (ii) T rade receivables; (iii) Cash & Cash Equivalents; (iv) Bank Balances other than cash and cash equivalents (v) Loans (vi) Other current financial assets (vii) Other current assets and (viii) Assets classified as held for sale.

21.1 Inventories

			(Rs. in crore)
Particulars	FY 2022-23	FY 2021-22	% Change
Inventories	1,323.55	1,352.60	(2.15)

Inventories are valued at lower of the cost, determined on weighted average basis, and net realizable value. Inventories consist of components, spares & other spare parts, loose tools, consumable stores and other items.

21.2 Trade Receivables

			(Rs. in crore)
Particulars	FY 2022-23	FY 2021-22	% Change
Trade Receivables	12,381.52	8,836.81	40.11

Trade Receivables consists mainly of receivables relating to transmission services, consultancy services and telecom services. The increase in trade receivables is mainly due to arrear bills for previous quarters which was billed in the month of April, 2023. Due to different payment security mechanisms available to the company, the company has no material impaired receivables.

21.3 Cash & Cash Equivalents

			(Rs. in crore)
Particulars	FY 2022-23	FY 2021-22	% Change
Cash and Cash Equivalents	4,146.24	2,457.47	68.72

Cash & Cash Equivalents increased by 68.72% in FY 2022-23 as compared to previous year was mainly on account of increase in term deposits (with maturity less than 3 months) (including Interest accrued) and balance in current accounts.

21.4 Bank Balances other than cash & cash equivalents

			(Rs. in crore)
Particulars	FY 2022-23	FY 2021-22	% Change
Bank balances other than cash & cash equivalents	588.20	513.57	14.53

Bank Balances other than cash & cash equivalents increased by 14.53% during FY 2022-23 as compared to previous year was mainly on account of increase in term deposits (with maturity over 3 months but up to 12 months) in banks for consultancy clients & others.

21.5 Loans (Current)

			(Rs. in crore)
Particulars	FY 2022-23	FY 2021-22	% Change
Loans	455.10	328.27	38.64

The increase in Loans from previous year to FY 2022-23 was mainly on account of increase of current maturities of Loans to Subsidiary Companies.

21.6 Other current financial assets.

			(Rs. in crore)
Particulars	FY 2022-23	FY 2021-22	% Change
Other current financial assets	2,571.32	6,395.78	(59.80)

As compared to previous year, other current financial assets decreased by 59.80% during FY 2022-23 mainly on account of decrease in Contract Assets.

21.7 Other Current Assets

			(Rs. in crore)
Particulars	FY 2022-23	FY 2021-22	% Change
Other current assets	216.23	210.99	2.48

As compared to previous year, the other current assets have increased by 2.48% in FY 2022-23.

21.8 Assets Classified as Held for Sale

The balance share of 26% of 4 associate companies amounting to S260.86 crore will be transferred in line with Transmission Service Agreement (TSA) and the same was shown as "Assets Classified as Held for

Sale".

22. Indebtedness

The Company relies on both Rupee and foreign currency denominated borrowings. A significant part of our external funding has been through long-term foreign currency loans from multilateral agencies such as the World Bank and the Asian Development Bank, which are guaranteed by GOI. Following table sets forth, by currency, our outstanding debt and its maturity profile (currency conversions are as of 31^st March 2023):

						(Rs. in crore)
Loan Name	2023-24	2024-25	2025-26	2026-27	2027-28 Onwards	Total
1. Domestic Bonds	5,700.38	8,192.55	7,117.30	10,630.58	29,081.68	60,722.49
2. Domestic Loans	2,754.00	3,504.00	3,754.00	4,259.35	13,669.10	27,940.45
3. Foreign Loans
US$	2,683.69	2,577.32	2,444.60	2,220.52	19,987.21	29,913.34
EUR	652.41	649.37	646.98	642.81	2,298.98	4,890.55
SEK	201.75	201.75	201.75	201.75	197.07	1,004.07
JPY	11.38	11.38	11.38	286.96	1,102.90	1,424.00
Sub Total (3)	3,549.23	3,439.82	3,304.71	3,352.04	23,586.16	37,231.96
TOTAL (1+2+3)	12,003.61	15,136.37	14,176.01	18,241.97	66,336.94	1,25,894.90

22.1 Long-term borrowings

			(Rs. in crore)
Particulars	FY 2022-23	FY 2021-22	% Change
Long-term borrowings	1,13,891.29	1,14,199.40	(0.27)

Long-term borrowings include amounts raised from private placement of bonds, term loans from banks and financial institutions. Due to the repayment of loans during last year our borrowings have decreased by 0.27% in comparison with the previous year.

22.2 Secured Loans

The secured loans (excluding current maturities of long term loans) as at 31^st March, 2023 and 2022 were Rs.75,338.05 crore and Rs.82,429.61 crore respectively. Most of these loans have been secured by floating charges on the moveable and immovable properties of the Company. The following table presents the secured debt as at 31^st March, 2023:

Particulars	Amount (Rs. in crore)	% of total unsecured debt
Bonds denominated in Rupees	40,270.15	53.45
Term Loans and other Loans from Banks and Financial Institutions:
Denominated in Foreign Currency	28,700.89	38.10
Denominated in Rupees	6,367.01	8.45
Total	75,338.05	100

22.3 Unsecured Loans

The unsecured loans (excluding current maturities) as at 31^st March, 2023 and 2022 were 538,553.24 crore and 531,769.79 crore respectively, which consist of domestic bonds, loans from foreign financial institutions/ Banks such as the Natixis (Formerly Credit National) in France, Japan International Cooperation Agency (Formerly Japan Bank for International Co-operation) in Japan, Skandinaviska Enskilda Banken AB (publ.) in Sweden and AB Svensk Exportkredit, Sweden.

The following table presents our unsecured debt as at 31^st March, 2023:

Particulars	Amount (Rs. in crore)	% of total unsecured debt
Bonds denominated in Rupees	14,751.96	38.26
Term Loans (From Domestic Banks and Foreign Currency Loans):
Denominated in Foreign Currency	4,981.84	12.92
Denominated in Rupees	18,819.44	48.82
Total	38,553.24	100

23. Advance Against Depreciation (AAD)

Advance against depreciation (AAD) was a component of tariff that was permitted to be charged under CERC regulations for the Block 2004-09, to cover shortfall in respect of depreciation in a year on assets, for repayment of debts. AAD was done away with in the tariff block 2009-2014 and depreciation rate were reworked.

Due to change in these tariff norms and the depreciation rates w.e.f. 1^st April, 2009, the outstanding AAD has been taken to transmission income after 12 years from the date of commercial operation to the extent the depreciation charged in respect of transmission system is more than the depreciation recovery under tariff. As on 31^st March, 2023, AAD has decreased by 17.66% from 5858.29 crore during FY 2021-22 to 5706.73 crore in FY 2022-23.

24. Current Liabilities

			(Rs. in crore)
Particulars	FY 2022-23	FY 2021-22	% Change
Current Liabilities	24,373.66	32,279.37	(24.49)

Current Liabilities includes (i) Borrowings; (ii) Trade payables (in) Other current Financial Liabilities (iv) Other current Liabilities; (v) Provisions; (vi) Current Tax Liabilities (Net) and (vii) Lease Liabilities.

24.1 Borrowings (Current)

			(Rs. in crore)
Particulars	FY 2022-23	FY 2021-22	% Change
Borrowings	12,703.61	20,465.87	(37.93)

The Borrowings were decreased due to decrease in current maturities of Long Term Borrowings and decrease in short term borrowings from banks

24.2 Trade payables

			(Rs. in crore)
Trade payables	325.02	266.14	22.12

Trade payables as at 31^st March 2023 were 22.12% higher as compared to 31^st March, 2022.

24.3 Other Current Financial Liabilities

			(Rs. in crore)
Particulars	FY 2022-23	FY 2021-22	% Change
Other current financial liabilities	7,392.53	7,408.90	(0.22)

Other current financial liabilities mainly include Interest accrued but not due on borrowings, dues for capital expenditure, deposits/retention money from contractors and others etc. Other current financial liabilities as at 31^st March, 2023 were 0.22% lower as compared to 31^st March, 2022.

24.4 Other Current liabilities

			0 Rs. in crore)
Particulars	FY 2022-23	FY 2021-22	% Change
Other current liabilities	3,132.40	3,203.41	(2.22)

Other current liabilities as at 31^st March 2023 were 2.22% lower as compared to 31^st March, 2022 mainly on account of advances from customers.

24.5 Provisions

			(Rs. in crore)
Particulars	FY 2022-23	FY 2021-22	% Change
Provisions for Employee Benefits and others	781.41	932.31	(16.19)

As compared to previous year, the provisions for Employee Benefits and others decreased by 16.19%

25. BUSINESS AND FINANCIAL REVIEW OF JOINT VENTURE COMPANIES and SUBSIDIARIES for FY 2022-23

25.1 JOINT VENTURE (JV) COMPANIES:

(i) Powerlinks Transmission Limited (POWERLINKS):

POWERGRID and Tata Power Company Limited are the Joint Venture Partners in this Joint Venture Company and hold 49% and 51% equity respectively. POWERLINKS was incorporated to undertake the implementation of Transmission Lines associated with Tala HEP, East-North interconnector and Northern Region Transmission System from Siliguri in West Bengal via Bihar to Uttar Pradesh and was the first public - private partnership in Power Transmission. POWERLINKS progressively commissioned the project by August, 2006. POWERGRID received 543.57 crore as dividend during FY 2022-23 from this JV.

As on 31^st March 2023, POWERLINKS had a paid-up capital of 5468.00 crore and POWERGRIDs share in its paid-up capital is 5229.32 crore.

Financial Hiahliqhts of this JV:

		(Rs. in crore)
Particulars	FY 2022-23	FY 2021-22
POWERGRIDs investment in Equity	229.32	229.32
Gross Income	138.83	144.15
Profit after Tax	81.08	91.39
Earnings per Share* (5)	1.73	1.95

*Face value per Share is 510 each.

(ii) Torrent POWERGRID Limited (TPL)

POWERGRID and Torrent Power Limited are the Joint Venture Partners in this Joint Venture Company and hold 26% and 74% equity respectively. The Company was incorporated to undertake the implementation of transmission system associated with 1100 MW Gas Based project (Sugen) Generation Station of Torrent Power Ltd. at Akhakhol in Surat District of Gujarat.

As on 31^st March 2023, TPL had paid-up capital of 590 crore. POWERGRIDs share in the paid-up capital is 523.40 crore. The project was progressively commissioned in March, 2011. POWERGRID has received 54.45 crore as dividend during FY 2022-23 from this JV.

Financial Hiahliahts of this JV:

		(Rs. in crore)
Particulars	FY 2022-23	FY 2021-22
POWERGRIDs investment in Equity	23.40	23.40
Gross Income	40.39	40.84
Profit after Tax	21.24	18.46
Earnings per Share* (5)	2.36	2.05

*Face value per Share is 510/- each.

(iii) North East Transmission Company Ltd. (NETC):

POWERGRID entered into a Joint Venture Agreement with ONGC Tripura Power Project Company Ltd. (OTPC), Government of Tripura, Manipur, Mizoram, Assam Electricity Grid Corporation Ltd., Meghalaya and Nagaland for establishment of Transmission Line of 400 kV D/c Palatana- Silchar- Bongaigoan Transmission Project associated with 726.6 MW Palatana Gas based Power Project in the state of Tripura.

As on 31^st March 2023, NETC had paid-up share capital of 5411.40 crore. POWERGRIDs share in the paid- up capital is 5106.96 crore. The project was progressively commissioned in February, 2015. NETC has paid 518.18 crore dividend during FY 2022-23 to POWERGRID.

Financial Highlights of this JV:

		(Rs. in crore)
Particulars	FY 2022-23	FY 2021-22
Gross Income	304.98	347.82
Profit after Tax	88.63	93.14
Earnings per Share* (5)	2.15	2.26

*Face value per Share is 510/- each.

(iv) Parbati Koldam Transmission Company Limited (PKTCL)

POWERGRID and India Grid Trust (IGT) are the Joint Venture Partners in this Joint Venture Company and hold 26% and 74% equity respectively. PKTCL was incorporated to undertake the implementation of transmission lines associated with Parbati-ll (800 MW) HEP and Koldam (800 MW) HEP.

As on 31^st March 2023, PKTCL had paid-up capital of 5272.84 crore. POWERGRIDs share in the paid-up capital is 570.94 crore. The Project was progressively commissioned in November, 2015. POWERGRID has received 57.09 crore dividend during FY 2022-23 from this JV.

Financial Highlights of this JV:

		(Rs. in crore)
Particulars	FY 2022-23	FY 2021-22
POWERGRIDs investment in Equity	70.94	70.94
Gross Income	142.87	114.36
Profit after Tax	43.19	13.46
Earnings per Share* (5)	1.59	0.49
*Face value per Share is 510/- each.

(v) Teestavalley Power Transmission Limited (TPTL)

POWERGRID and Teesta Urja Ltd. are the Joint Venture Partners in this Joint Venture Company and hold 30.92% and 69.08% equity respectively. TPTL was incorporated to undertake the implementation of transmission lines associated with 1,200 MW Teesta-lll Hydro Electric Power Project to Kishanganj substation.

As on 31^st March 2023, TPTL had Paid-Up Capital of 5388.45 crore. POWERGRIDs share in the paid-up capital was 5120.12 crore. The Project commissioned progressively in February, 2019.

Financial Highlights of this JV:

		(Rs. in crore)
Particulars	FY2022-23	FY 2021-22
POWERGRIDs investment in Equity	120.12	120.12
Gross Income	254.11	241.99
Profit after Tax	51.67	17.18
Earnings per Share* (5)	1.33	0.44

*Face value per Share is 510/- each.

(vi) National High Power Test Laboratory Private Limited (NHPTL):

NHPTL is a joint venture Company of NTPC, NHPC, POWERGRID, DVC and CPRI with equal equity participation of 20% each. The main aim of the NHPTL is to establish an online high power short circuit test facility in the country. This Facility is being established for the first time in the country at Bina (M.P.) to provide a full range of short circuit testing for the electrical equipment in conformance to Indian and International Standards.

As on 31^st March 2023, NHPTL had paid up share capital of 5152 crore. POWERGRIDs share in the paid-up capital was 530.40 crore.

High Voltage Transformer (HVTR) Section of Laboratory under Phase-1 put under commercial operation with effect from 1^st July 2017. The HVTR lab is capable of Short Circuit (sc) testing of power transformers for all possible ratings with voltage class starting from 132 kV to 765 kV. Medium Voltage Transformer (MVTR) Section is under write off. The project has no operating profit yet. A provision for impairment of assets amounting to 594.55 crore has been made in the books of NHPTL.

(vii) Bihar Grid Company Limited (BGCL):

POWERGRID entered into a Shareholders Agreement on 29^th December 2012 with Bihar State Power (Holding) Company Limited {BSP(H)CL} for implementation of Intra-State Transmission System in the State of Bihar on 50:50 equity participation basis.

As on 31^st March 2023, BGCL had the Paid-up Share Capital of 5668.25 crore. POWERGRIDs share in the paid-up capital was 5334.13 crore.

The Company is implementing Transmission System Strengthening Schemes in Bihar under Phase-IV, Part-1 worth 52,024 crore. The major components of Part-1 Projects are under commercial operation. Further, works Phase-IV, Part-ll worth 51,688 crore and Supplementary works worth 5111 crore are under final stage of implementation.

Financial Highlights of this JV:

		(Rs. in crore)
Particulars	FY 2022-23	FY 2021-22 H
POWERGRIDs investment in Equity	334.13	322.54
Gross Income	252.30	518.54
Profit after Tax	(88.17)	143.96
Earnings per Share* (5)	(1.28)	2.37

*Face value per Share is 510/- each.

(viii) RINL POWERGRID TLT Private Limited (RPTPL)

POWERGRID and Rashtriyalspat Nigam Ltd. (RINL) formed a joint venture Company, RPTPL, on 50:50 equity participation basis, for setting up a Transmission Line Tower (TLT) manufacturing plant at Visakhapatnam

with a view to exploit the emerging opportunity in transmission line tower manufacturing business. As on 31^st March, 2023, the JV Company has paid up share capital of 58.00 crore. However, keeping in view the business scenario of tower manufacturing, the Board of Directors of POWERGRID accorded In-principle approval for closure of the Company.

(ix) Cross Border Power Transmission Company Limited (CPTCL):

POWERGRID entered into Shareholders Agreement on 9^tfl July 2012 with IL&FS Energy Development Company Limited (lEDCL), SJVN Limited (SJVN) and Nepal Electricity Authority (NEA) of Nepal and incorporated a JV Company i.e. Cross Border Power Transmission Company Limited, in India for implementation of Indian portion viz. Muzaffarpur-Sursand section (India Portion) of 400 kV D/c Muzaffarpur-Dhalkebar Indo-Nepal Cross Border transmission line.

The Shareholding of POWERGRID, SJVN, lEDCL and NEA in the said JV Company is 26%, 26%, 38% and 10% respectively. As on 31^st March 2023, CPTCL had paid-up capital of 548.50 crore. At present, POWERGRID equity is 512.62 crore.

POWERGRID has received 53.15 crore dividend during FY 2022-23 from this JV.

(x) Power Transmission Company Nepal Limited (PTCN):

POWERGRID entered into a Joint Venture cum Share Purchase Agreement on 5^th April 2014 with Nepal Electricity Authority (NEA), Hydroelectricity Investment & Development Company Ltd. (HIDCL) of Nepal and IL&FS Energy Development Company Ltd. (lEDCL) and incorporated a JV Company in Nepal i.e. Power Transmission Company Nepal Limited (PTCN) for implementation of Dhalkebar - Bhittamod 400 kV Transmission Line (Nepal Portion of 400 kV D/C Dhalkebar - Muzaffarpur Indo-Nepal Cross Border transmission line). The Dhalkebar - Muzaffarpur Indo-Nepal Cross Border Transmission line is being used for Transmission of power between India & Nepal.

The Shareholding of NEA, POWERGRID, HIDCL and lEDCL in the said JV Company is 50%, 26%, 14% and 10% respectively.

As on 31^st March, 2023, PTCN had Authorized, issued & paid-up share capital of NPR 45 crore. At present, POWERGRID equity is NPR 11.70 crore including 1,30,000 Bonus shares of NPR 100/- each. The line is under commercial operation w.e.f. 19^th February, 2016. POWERGRID has received 51.32 crore dividend during FY 2022-23 from this JV.

(xi) Energy Efficiency Services Limited (EESL):

POWERGRID entered into a Joint Venture Agreement with NTPC Ltd., Power Finance Corporation Ltd., and REC Ltd. The JV Company viz. EESL is to promote measures of Energy Efficiency, Energy Conservation and Climate Change and is carrying out business related to energy audit of Government buildings, consultancy assignments etc. in India and globally.

As on 31^st March 2023, EESL had Paid-up Share Capital of 51,390.82 crore. POWERGRIDs share in the paid- up capital was 5463.61 crore (33.33%).

Financial Highlights of this JV:

		(Rs. in crore)
Particulars	FY 2022-23	FY 2021-22
POWERGRIDs investment in Equity	463.61	463.61
Gross Income	2,448.79	2,268.66
Profit after Tax	(331.74)	(184.16)
Earnings per Share* (5)	(2.37)	(1.50)

*Face value per Share is 510/- each.

(xii) Butwal - Gorakhpur Cross Border Power Transmission Limited (BGCBPTL)

POWERGRID entered into a Joint Venture Agreement with Nepal Electricity Authority (NEA) for implementation of Indian portion of 400 kV New Butwal (Nepal)-Gorakhpur (India) Cross Border Transmission Line.

The Shareholding of both NEA & POWERGRID is 50% each in the JV company. The JV company incorporated on 31^st August 2022 in India.

As on 31^st March 2023, BGCBPTL had paid-up capital of 50.05 crore. POWERGRIDs shares in the paid-up capital was 50.025 crore.

25.2 SUBSIDIARY COMPANIES:

(i) POWERGRID NM TRANSMISSION LIMITED (PNMTL)

PNMTL was acquired by POWERGRID on 29^m March 2012 under Tariff Based Competitive Bidding for establishing Transmission System associated with IPPs of Nagapattinam / Cuddalore Area (Package A) on build, own, operate and maintain (BOOM) basis. The Transmission System comprising 765kV D/C and 765kV S/C traverses the states of Tamil Nadu and Karnataka. PNMTL was granted transmission license by CERC in June, 2013. All the project elements had been progressively commissioned by January 2019.

As on 31^st March 2023, PNMTL had an Authorized and Paid-up Share Capital of 5496.25 crore and 5490.95 crore respectively.

		(Rs. in crore)
Particulars	FY 2022-23	FY 2021-22
Gross Income	365.09	119.02
Profit after Tax	222.39	7.50

(ii) POWERGRID UNCHAHAR TRANSMISSION LIMITED (PUTL)

POWERGRID Unchahar Transmission Limited ("PUTL") was acquired by POWERGRID on 24^th March 2014 under tariff based competitive bidding for establishment of transmission system for Associated Transmission System ("ATS") of Unchahar Thermal Power Station ("TPS") on a build-own-operate-maintain (BOOM) basis. The transmission system comprising Unchahar - Fatehpur 400kV Double Circuit (d/c) line (about 106.74 circuit kilometer) traverses the state of Uttar Pradesh. PUTL was granted transmission license by Central Electricity Regulatory Commission on 21^st July 2014 and the project had been commissioned on 1^stOctober 2016.

PUTL is also Investment Manager of POWERGRID Infrastructure Investment Trust ("PGInvIT").

As on 31^st March 2023, PUTL had an Authorized Share Capital of 514 crore and Paid-up Share Capital of 512.96 crore respectively. PUTL paid first interim dividend of 53.89 crore, second interim dividend of 53.63 crore and third interim dividend of 53.76 crore for FY 2022-23. PUTL further proposed a final dividend of 53.50 crore for FY 2022-23.

		(Rs. in crore)
Particulars	FY 2022-23	FY 2021-22
Gross Income	28.75	30.53
Profit after Tax	14.83	16.76

(iii) POWERGRID SOUTHERN INTERCONNECTOR TRANSMISSION SYSTEM LIMITED (PSITSL)

PSITSL was acquired by POWERGRID on 4^th December 2015 under tariff based competitive bidding for "Strengthening of Transmission System Beyond Vemagiri" Project on build, own operate and maintain (BOOM) basis. The transmission project comprising of 765 kV & 400 kV D/C transmission lines which traverse the states of Andhra Pradesh, Telangana & Karnataka and include establishment of one 765/400 kV Substation as well as 400kV bay extension at two existing sub-stations in the state of Andhra Pradesh. The Company was granted transmission license by CERC in March, 2016. All the project elements had been progressively commissioned by January 2020.

The Company is implementing following works under regulated tariff mechanism:

I. 765 KV Spare (l-Ph) Reactor unit at 765 KV Chilakaluripeta substation.

II. To bypass NGR to use switchable line reactor as Bus reactor at 765 KV Chilakaluripeta substation.

As on 31^st March 2023, PSITSL had an Authorized Share Capital of 5731 crore and Paid-up Share Capital of 5709 crore. PSITSL paid first interim dividend of 518.43 crore and second interim dividend of 5 29.06 crore for FY 2022-23.

		(Rs. in crore)
Particulars	FY 2022-23	FY 2021-22
Gross Income	481.06	492.59
Profit after Tax	129.91	(37.51)

(iv) POWERGRID MEDINIPUR - JEERAT TRANSMISSION LIMITED (PMJTL)

PMJTL was acquired by POWERGRID on 28^th March 2017 under Tariff based competitive bidding for Transmission System associated with "765kV Strengthening in Eastern Region (ERSS-XVIll)" on build, own, operate and maintain (BOOM) basis. The Transmission System includes establishment of 765kVand400kV Transmission lines which traverse the states of West Bengal and Jharkhand and includes establishment of two new 765/400kV Substations in West Bengal. The Company was granted transmission license by CERC in June, 2017. All the project elements had been progressively commissioned by August, 2022.

As on 31^st March 2023, PMJTL had an Authorised and Paid-up Share Capital of 5682.00 crore and of 5647.00 crore respectively. PMJTL paid total interim dividend of 5211.10 crore for FY 2022-23.

		(Rs. in crore)
Particulars	FY 2022-23	FY 2021-22
Gross Income	589.62	448.61
Profit after Tax	223.55	191.62

(v) POWERGRID MITHILANCHAL TRANSMISSION LIMITED (PMTL)

PMTL was acquired by POWERGRID on 12^th January 2018 under Tariff based competitive bidding for Transmission System associated with "Establish Transmission System for Eastern Region Strengthening Scheme- XXI (ERSS-XXl)" on build, own, operate and maintain (BOOM) basis. The Transmission System includes establishment of 400kV Transmission lines in the state of Bihar and establishment of three new 400/220/132 kV Substations in Bihar. The Company was granted transmission license by CERC in April 2018. All the project elements had been progressively commissioned by October 2021.

As on 31^st March 2023, PMTL had an Authorised and Paid-up Share Capital of 5245.50 crore and 5233.20 crore respectively. PMTL paid total interim dividend of 5 49.44 crore for FY 2022-23.

		(Rs. in crore)
Particulars	FY 2022-23	FY 2021-22
Gross Income	177.51	143.92
Profit after Tax	41.11	38.09

(vi) POWERGRID VARANASI TRANSMISSION SYSTEM LIMITED (PVTSL)

PVTSL was acquired by POWERGRID on 27^th March 2018 under Tariff Based Competitive Bidding for establishing Transmission System for new Western Region- Northern Region 765kV Inter Regional Corridor on build, own, operate and maintain (BOOM) basis. The Transmission System includes establishment of a 765kV D/c Transmission Line from Vindhyachal pooling station to Varanasi which traverse the states of Madhya Pradesh and Uttar Pradesh. The Company was granted transmission license by CERC in August 2018. The project was commissioned in August 2021.

As on 31^st March 2023, PVTSL had an Authorized and Paid-up Share Capital of 5198.90 crore and 5187.56 crore. PVTSL paid first interim dividend of 57.44 crore, second interim dividend of 58.44 crore, third interim dividend of 56.56 crore and fourth interim dividend of 56.00 crore for FY 2022-23.

		(Rs. in crore)
Gross Income	122.13	79.69
Profit after Tax	29.16	20.16

(vii) POWERGRID JAWAHARPUR FIROZABAD TRANSMISSION LIMITED (PJFTL)

PJFTL was acquired by POWERGRID on 21^st December 2018 under Tariff based competitive bidding for establishing intra-state Transmission System in Uttar Pradesh for Evacuation of Power from 2 X 660 MW Jawaharpur Thermal Power Project and Construction of 400 kV Substation at Firozabad along with associated Transmission Lines on build, own, operate and maintain (BOOM) basis. The Company was granted transmission license by UPERC on 5^th July 2019. All the project elements had been progressively commissioned by July 2021.

As on 31^st March 2023, PJFTL had an Authorized and Paid-up Share Capital of 593.70 crore and 589.60 crore respectively.

		(Rs. in crore)
Particulars	FY 2022-23	FY 2021-22
Gross Income	59.16	51.90
Profit after Tax	18.97	17.12

(viii) POWERGRID KHETRI TRANSMISSION SYSTEM LIMITED (PKTSL)

PKTSLwas acquired by POWERGRID on 29^th August 2019 under Tariff based competitive bidding to establish Transmission system associated with LTA application from Rajasthan SEZ (Part -c) on build, own, operate and maintain (BOOM) basis. The Company was granted transmission license by CERC on 19^th December 2019. The project was commissioned on 4^th October 2021.

As on 31^st March 2023, PKTSL had an Authorized and Paid-up Share Capital of 5209.00 crore and 5198.25 crore, respectively. PKTSL paid first interim dividend of 53.97 crore, second interim dividend of 53.97 crore, third interim dividend of 515.86 crore and fourth interim dividend of 55.95 crore for FY 2022-23.

		(Rs. in crore)
Particulars	FY 2022-23	FY 2021-22
Gross Income	130.84	52.67
Profit after Tax	26.84	5.96

(ix) POWERGRID BHIND GUNA TRANSMISSION LIMITED (PBGTL)

PBGTL was acquired by POWERGRID on 11^th September 2019 under Tariff based competitive bidding to establish transmission system for Intra-State Transmission Work associated with construction of 400 kV Substation near Guna & Intra-State Transmission Work associated with construction of 220 kV s/s near Bhind in Madhya Pradesh on Build, Own, Operate and maintain (BOOM) basis. The Company was granted transmission license in January, 2021 by MPERC. The project was commissioned on 7^th October 2022.

As on 31^st March 2023, PBGTL had an Authorized and Paid-up Share Capital of 5120.42 crore and Sill.95 crore respectively. PBGTL paid first interim dividend of 52.10 crore and second interim dividend of 52.35 crore for FY 2022-23.

		(Rs. in crore)
Particulars	FY 2022-23	FY 2021-22
Gross Income	32.77	0.01
Profit after Tax	9.18	(0.07)

(x) POWERGRID AJMER PHAGI TRANSMISSION LIMITED (PAPTL)

PAPTL was acquired by POWERGRID on 3^rd October 2019 under Tariff based competitive bidding to establish transmission system for Construction of Ajmer (PG)-Phagi 765 kV D/C line along with associated bays for Rajasthan SEZ on build, own, operate and maintain (BOOM) basis. The Company was granted transmission license by CERC on 4^th March 2020. The project was commissioned on 6^m May 2021.

As on 31^st March 2023, PAPTL had an Authorized and Paid-up Share Capital of 5125 crore and 5115 crore respectively. PAPTL paid first interim dividend of 53.45 crore, second interim dividend of 53.80 crore and third interim dividend of 52.01 crore for FY 2022-23.

		(Rs. in crore)
Particulars	FY 2022-23	FY 2021-22
Gross Income	66.17	47.95
Profit after Tax	10.25	0.91

(xi) POWERGRID FATEHGARH TRANSMISSION LIMITED (PFTL)

PFTL was acquired by POWERGRID on 14^tfl October 2019 under Tariff based competitive bidding to establish transmission system for Ultra Mega Solar Park in Fatehgarh, Distt. Jaisalmer Rajasthan on build, own, operate and maintain (BOOM) basis. The Company was granted transmission license by CERC on 4^tflMarch 2020. The project was commissioned on 1^st September 2021.

As on 31^st March 2023, PFTL had an Authorized and Paid-up Share Capital of 5141.00 crore. PFTL paid first interim dividend of 54.23 crore, second interim dividend of 56.20 crore and third interim dividend of 52.96 crore for FY 2022-23.

		(Rs. in crore)
Particulars	FY 2022-23	FY 2021-22
Gross Income	77.73	36.71
Profit after Tax	12.86	2.26

(xii) POWERGRID BHUJ TRANSMISSION LIMITED (PBTL)

PBTL was acquired by POWERGRID on 16^m October 2019 under Tariff based competitive bidding to establish transmission system for providing connectivity to RE projects at Bhuj-ll (2000MW) in Gujarat on build, own, operate and maintain (BOOM) basis. The transmission system includes establishment of new 2 x 1500 MVA (765/400 kv), 4 x 500 MVA (400/220 kv) Bhuj - II PS and reconfiguration of Bhuj PS - Lakadia PS 765 kV D/c line so as to establish Bhuj - II - Lakadia 765 kV D/c line as well as Bhuj - Bhuj II 765 kV D/c line. The Company was granted transmission license by CERC on 3^rd March 2020. All the project elements had been progressively commissioned by November 2022.

As on 31^st March 2023, PBTL had an Authorised and Paid-up Share Capital of 5236.00 crore and 5232.00 crore respectively. PBTL paid total interim dividend of 50.70 crore for FY 2022-23.

		(Rs. in crore)
Particulars	FY 2022-23	FY 2021-22
Gross Income	66.11	0.01
Profit after Tax	2.31	(0.03)

(xiii) POWERGRID RAMPUR SAMBHAL TRANSMISSION LIMITED (PRSTL)

PRSTL was acquired by POWERGRID on 12^tfl December 2019 under Tariff based competitive bidding to establish transmission System for construction of 765/400/220kV GIS Substation at Rampur and 400/220/l32kV GIS Substation at Sambhal with associated Transmission Lines on build, own, operate and maintain (BOOM) basis. The Company was granted transmission license by UPERC in September 2020. The project was commissioned on 30^m March 2023.

As on 31^st March 2023, PRSTL had an Authorized and Paid-up Share Capital of 5166 crore and 5142.10 crore respectively.

		(Rs. in crore)
Particulars	FY 2022-23	FY 2021-22
Gross Income	21.09	0.00
Profit after Tax	6.79	(0.06)

(xiv) POWERGRID MEERUT SIMBHAVALI TRANSMISSION LIMITED (PMSTL)

PMSTL was acquired by POWERGRID on 19^th December 2019 under Tariff based competitive bidding to establish transmission system for Construction of 765/400/220 kV GIS Substation at Meerut with associated lines and 400/220/132 kV GIS Substation at Simbhaoli with associated Transmission lines on build, own, operate and maintain (BOOM) basis. The Company was granted transmission license by UPERC in September 2020. The project is partly under implementation.

As on 31^st March 2023, PMSTL had an Authorized and Paid-up Share Capital of 5208.00 crore and 5195.13 crore respectively.

(xv) POWERGRID RAMGARH TRANSMISSION LIMITED (PRTL)

PRTL was acquired by POWERGRID on 9^th March 2021 under Tariff based competitive bidding to establish Transmission System for "Transmission System Strengthening Scheme for evacuation of Power from Solar Energy Zones in Rajasthan (8.1 GW) under Phase-ll Part-A" on Build, Own, Operate and Maintain (BOOM) basis. The Company was granted transmission license by CERC on 31^st May 2021. The project is under implementation.

As on 31^st March 2023, Company had an Authorized and Paid-up Share Capital of Rs.30 crore & S25 crore respectively.

(xvi) POWERGRID BIKANER TRANSMISSION SYSTEM LIMITED (PBTSL)

PBTSLwas acquired by POWERGRID on 25^th March 2021 under Tariff based competitive bidding to establish Transmission System for "Transmission System Strengthening Scheme for evacuation of Power from Solar Energy Zones in Rajasthan (8.1 GW) under Phase-ll Part-F" on Build, Own, Operate and Maintain (BOOM) basis. The Company was granted transmission license by CERC on 15^th July 2021. The project is under implementation.

As on 31^st March 2023, Company had an Authorized and Paid-up Share Capital of S115 crore and S100 crore respectively.

(xvii) POWERGRID SIKAR TRANSMISSION LIMITED (PSTL)

PSTL formerly known as Sikar New Transmission Limited was acquired by POWERGRID on 4^th June 2021 under Tariff based competitive bidding to establish Transmission System for "Transmission system strengthening scheme for evacuation of power from solar energy zones in Rajasthan (8.1 GW) under Phase II -Part C" on Build, Own, Operate and Maintain (BOOM) basis. The Company was granted transmission license by CERC on 27^m May 2022. The project is under implementation.

As on 31^st March 2023, Company had an Authorized and Paid-up Share Capital of S95 crore and S80 crore respectively.

(xviii) POWERGRID BHADLA TRANSMISSION LIMITED (PBdTL)

PBdTL formerly known as Fatehgarh Bhadla Transco Limited was acquired by POWERGRID on 4^th June 2021 under Tariff based competitive bidding to establish Transmission System for "Transmission system strengthening for evacuation of power from solar energy zones in Rajasthan (8.1 GW) under phase II - Part B" on Build, Own, Operate and Maintain (BOOM) basis. The Company was granted transmission license by CERC on 25^th November 2022. The project is under implementation.

As on 31^st March 2023, the Company had an Authorized and Paid-up Share Capital of S51 crore and S32.21 crore respectively.

(xix) POWERGRID VEMAGIRI TRANSMISSION LIMITED (PVTL)

PVTL was acquired by POWERGRID on 18^th April 2012 under Tariff based competitive bidding for establishing Transmission system associated with IPPs of Vemagiri Area (Package A). The transmission system comprising 765kV D/c lines which traverse the state of Andhra Pradesh and Telangana.

As on 31^st March 2023, PVTL had an Authorized Share Capital and Paid-up Share Capital of Rs.5 Lakh each.

CERC vide Order dated 6th April 2015 stated that Vemagiri-Khammam-Hyderabad 765 kV D/C lines under the project is neither required as an evacuation line nor as a system strengthening line, no useful purpose will be served by adopting the transmission charges and granting license to the petitioner for the said transmission line and has withdrawn the regulatory approval for the Transmission project.

(xx) POWERGRID HIMACHAL TRANSMISSION LIMITED (PHTL)

POWERGRID has acquired 74% stake on 25^th March 2021 held by Jaiprakash Power ventures Ltd. (JPVL) in JPL (Jaypee POWERGRID Limited) and hence JPL has become a wholly owned subsidiary of POWERGRID. Consequent upon acquisition, name of the Company has been changed from Jaypee POWERGRID Limited to PHTL. The project was commissioned on 1^st April 2012.

PHTL is engaged in operation and maintenance of (i) 400 Kv D/C Karcham Wang to Abdullapur Transmission Line with 219.80 KM (ii) LILO of 400 Kv D/c Baspa-Jhakri Line with 4.0 KM.

As on 31^st March 2023, the Authorized and Paid-up Share Capital of PHTL is 5300 crore. PHTL paid first interim dividend of S18 crore, second interim dividend of r Rs.15 crore, third interim dividend of Rs.27 crore and proposed final dividend of S15 crore for FY 2022-23.

		(Rs. in crore)
Particulars	FY 2022-23	FY 2021-22
Gross Income	134.77	136.43
Profit after Tax	49.69	51.28

(xxi) POWERGRID ALIGARH SIKAR TRANSMISSION LIMITED (PASTL)

PASTL formerly known as Sikar-ll Aligarh Transmission Limited was acquired by POWERGRID on 8^th June 2021 under Tariff based competitive bidding to establish transmission system for "Transmission system strengthening scheme for evacuation of power from solar energy zones in Rajasthan (8.1 GW) under Phase II - Part D" on build, own, operate and maintain (BOOM) basis. The transmission system comprises establishment of a 765kVD/c transmission line from Sikar to Aligarh and associated Substation extension works in the State of Rajasthan and Uttar Pradesh. The Company was granted transmission license on 28^mMay 2022 by CERC. The project is under implementation.

As on 31^st March 2023, Company had an Authorised and Paid-up Share Capital of 5100 crore and 577.95 crore respectively.

(xxii) CENTRAL TRANSMISSION UTILITY OF INDIA LIMITED (CTUIL)

Pursuant to mandate of Government of India, POWERGRID incorporated Central Transmission Utility of India Limited, as its wholly-owned Subsidiary on 28^th December 2020. This Subsidiary has been mandated to be acquired by Government of India.

As on 31^st March 2023, the Authorised and Paid-up Share Capital of CTUIL is 51 crore and 50.05 crore respectively. CTUIL paid total interim dividend of 565 crore during FY 2022-23.

		(Rs. in crore)
Particulars	FY 2022-23	FY 2021-22
Gross Income	71.62	53.71
Profit after Tax	51.11	40.03

(xxiii) POWERGRID TELESERVICES LIMITED (POWERTEL)

POWERTEL was incorporated on 25^th November 2021 as a wholly-owned Subsidiary of POWERGRID to undertake Telecommunications and Digital Technology Business of POWERGRID.

Unified License agreement for service authorizations for National Long Distance (NLD), Internet Service Provider - A (ISP-A) & International Long Distance (ILD) was signed on ll^th> May 2023. Further, Infrastructure Provider-1 (iP-l) registration certificate has been received on 16^m February 2023.

Legal counsel has been appointed by POWERGRID to assist in carrying out the proposed business transaction.

CERC, on 17^th May 2023, has accorded the approval for undertaking of existing Telecommunications business of POWERGRID, through PowerTel.

As on 31^st March 2023, the Authorised and Paid-Up Share Capital of PowerTel is 550 crore and 59 crore respectively.

(xxiv) POWERGRID ENERGY SERVICES LIMITED (PESL)

PESL was incorporated on 14^m March 2022 as a wholly-owned Subsidiary of POWERGRID to undertake the Energy Management projects in India and Abroad.

PESL entered into two number agreements for Project Implementation services for Design, Engineering, Procurement, Supply, Erection, testing and Commissioning works to be taken up for Distribution Infrastructure works under RDSS in February 2023 with Jammu Power Distribution Corporation Ltd. (JPDCL) and Kashmir Power Distribution Corporation Ltd. (KPDCL) respectively in various districts of Jammu and Kashmir to be implemented in two years.

In its endeavor towards sustainability, POWERGRID Energy Services Limited has stepped into establishment of large-scale Solar Power Generation. As a first step an 85 MW Grid Connected Ground Mounted Solar PV Power Project at Nagda, Distt.-Ujjain, Madhya Pradesh is undertaken by POWERGRID Energy Services Limited (PESL) is under various stages of approval.

As on 31^st March 2023, Company had an Authorized and Paid-up Share Capital of 510 crore each.

(xxv) POWERGRID NARELA TRANSMISSION LIMITED (PNTL)

PNTL, formerly known as Khetri-Narela Transmission Limited was acquired by POWERGRID on 11^th May 2022 under Tariff based competitive bidding from to establish Transmission System for "Transmission System Strengthening Scheme for Evacuation of Power from Solar Energy Zones in Rajasthan (8.1 GW)

under Phase-ll Part-G", on build, own, operate and maintain (BOOM) basis. The Company was granted transmission license by CERC on 26^th September 2022. The project is under implementation.

As on 31^st March 2023, Company had an Authorized and Paid-up Share Capital of S50 crore and SI lakh

respectively.

(xxvi) POWERGRID GOMTI YAMUNA TRANSMISSION LIMITED (PGYTL)

PGYTL, formerly known as Mohanlalganj Transmission Limited, was acquired by POWERGRID on 30^thMay 2022 under Tariff based competitive bidding to establish transmission system for Construction of 400/220/l32kV GIS Substation at Mohanlalganj (Lucknow) with associated 400kV lines, and other 765kV & 400kV LILO lines at 765kV GIS Substation Rampur and 400kV LILO (Quad Moose on Monopole) at400kV GIS Substation at Sector 123 Noida. The Company was granted transmission license by UPERC on 20^thDecember 2022. The project is under implementation.

As on 31^st March 2023, PGYTL had an Authorized and Paid-up Share Capital of S70 crore and SI Lakh respectively.

(xxvii) POWERGRID ER NER TRANSMISSION LIMITED (PENTL)

PENTL, formerly known as ER NER Transmission Limited was acquired by POWERGRID on 10^th October 2022 under Tariff based competitive bidding to establish Transmission System for "System Strengthening Scheme for Eastern and North Eastern Regions" on Build, Own, Operate and Transfer (BOOT) basis. The Company was granted transmission license by CERC on 4^th February 2023. The project is under implementation.

As on 31^st March 2023, Company had an Authorized and Paid-up Share Capital of S5 lakh each.

(xxviii) POWERGRID NEEMUCH TRANSMISSION SYSTEM LIMITED (PNTSL)

PNTSL formerly Neemuch Transmission Limited was acquired by POWERGRID on 24^th August 2022 under Tariff based competitive bidding to establish Transmission System for evacuation of Power from Neemuch SEZ on Build, Own, Operate and Transfer (BOOT) basis. The Company was granted transmission license by CERC on 27^th December 2022. The project is under implementation.

As on 31^st March 2023, Company had an Authorized and Paid-up Share Capital of Rs.80 crore and Rs.5 Lakh respectively.

(xxix) POWERGRID KHAVDA RE TRANSMISSION SYSTEM LIMITED (PKRETSL)

PKRETSL formerly known as Khavda RE Transmission Limited was acquired by POWERGRID on 21^st March 2023 under Tariff based competitive bidding to establish Transmission Network Expansion in Gujarat associated with integration of RE projects from Khavda potential RE zone on Build, Own, Operate and Transfer (BOOT) basis. The Company has filed petition with CERC for grant of transmission license. The project is under implementation.

As on 31^st March 2023, Company had an Authorized and Paid-up Share Capital of Rs.5 lakh each.

(xxx) POWERGRID BHADLA SIKAR TRANSMISSION LIMITED (PBSTL)

PBSTL formerly known as Bhadla Sikar Transmission Limited was acquired by POWERGRID on 28^th March 2023 under Tariff based competitive bidding to establish transmission system Strengthening Scheme for Evacuation of Power from Solar Energy Zones in Rajasthan (8.1 GW) under Phase-ll Part-E on Build, Own, Operate and Maintain (BOOM) basis. The Company has filed petition with CERC for grant of transmission license. The project is under implementation.

As on 31^st March 2023, Company had an Authorized and Paid-up Share Capital of Rs.1 lakh each.

(xxxi) POWERGRID DHARAMJAIGARH TRANSMISSION LIMITED (PDTL)

PDTL formerly known as Dharamjaigarh Transmission Limited was acquired by POWERGRID on 28^th March 2023 under Tariff based competitive bidding to establish Western Region Expansion Scheme- XXVIII (WRES-XXVIll) & XXIX (WRES-XXIX) on Build, Own, Operate and Transfer (BOOT) basis. The Company has filed petition with CERC for grant of transmission license. The project is under implementation.

As on 31^st March 2023, Company had an Authorized and Paid-up Share Capital of Rs.1 lakh each.

(xxxii) POWERGRID KPS2 TRANSMISSION SYSTEM LIMITED (PKPS2TSL)

PKPS2TSL formerly known as KPS2 Transmission Limited was acquired by POWERGRID on 21^st March 2023 under Tariff based competitive bidding for establishment of Khavda Pooling Station-2 (KPS2) in Khavda RE Park on Build, Own, Operate and Transfer (BOOT) basis. The Company has filed petition with CERC for grant of transmission license. The project is under implementation.

As on 31^st March 2023, Company had an Authorized and Paid-up Share Capital of 55 lakh each.

(xxxiii) POWERGRID KPS3 TRANSMISSION LIMITED (PKPS3TL)

PKPS3TL formerly known as KPS3 Transmission Limited was acquired by POWERGRID on 21^st March 2023 under Tariff based competitive bidding for establishment of Khavda Pooling Station-3 (KPS3) in Khavda RE Park on Build, Own, Operate and Transfer (BOOT) basis. The Company has filed petition with CERC for grant of transmission license. The project is under implementation.

As on 31^st March 2023, Company had an Authorized and Paid-up Share Capital of 55 lakh each.

(xxxiv) POWERGRID KHAVDA ll-B TRANSMISSION LIMITED (PKIIBTL)

PKIIBTL formerly known as KHAVDA ll-B Transmission Limited was acquired by POWERGRID on 21^st March 2023 under Tariff based competitive bidding for Transmission scheme for evacuation of 4.5 GW RE injection at Khavda P.S. under Phase-ll - Part B on Build, Own, Operate and Transfer (BOOT) basis. The Company has filed petition with CERC for grant of transmission license. The project is under implementation.

As on 31^st March 2023, Company had an Authorized and Paid-up Share Capital of 55 lakh each.

(xxxv) POWERGRID KHAVDA ll-C TRANSMISSION LIMITED (PKIICTL)

PKIICTL formerly known as KHAVDA ll-C Transmission Limited was acquired by POWERGRID on 21^st March 2023 under Tariff based competitive bidding for Transmission scheme for evacuation of 4.5 GW RE injection at Khavda P.S. under Phase-ll - Part C on Build, Own, Operate and Transfer (BOOT) basis. The Company has filed petition with CERC for grant of transmission license. The project is under implementation

As on 31^st March 2023, Company had an Authorized and Paid-up Share Capital of 55 lakh each.

(xxxvi) POWERGRID RAIPUR POOL DHAMTARI TRANSMISSION LIMITED (PRPDTL)

PRPDTL formerly known as Raipur Pool Dhamtari Transmission Limited was acquired by POWERGRID on 28^th March 2023 under Tariff based competitive bidding to establish "Transmission System associated with Western Region Expansion Scheme -XXVII (WRES-XXVIl)" on Build, Own, Operate and Transfer (BOOT) basis. The Company has filed petition with CERC for grant of transmission license. The project is under implementation.

As on 31^st March 2023, the Authorized and Paid-up Share Capital of PRPDTL is 51 lakh each.

(xxxvii) POWERGRID ERWR POWER TRANSMISSION LIMITED (PEPTL)

PEPTL formerly ERWR Power Transmission Limited was acquired by POWERGRID on 21^st March 2023 under Tariff based competitive bidding to establish Transmission System for Transmission system strengthening scheme for 400/220/132 KV Jagdalpur sub-station of CSPTCL and 400/220 KV Jeypore sub-station of POWERGRID. The Company has filed a petition with CERC for grant of transmission license. The project is under implementation.

As on 31^st March 2023, Company had an Authorized and Paid-up Share Capital of 55 Lakh each.

26. Consolidated financial statement of POWERGRID

The consolidated financial statements have been prepared in accordance with Indian Accounting Standards (ind AS) 110- Consolidated Financial Statements and Indian Accounting Standards (ind AS) 28 - Investments in Associates and Joint Ventures. On a consolidated basis, the Total Income of the Company, during FY 2022- 23, stood at 546,605.64 crore as against 542,697.90 crore during FY 2021-22, registering an increase of about 9.15%. Total Expenses for the year ended 31^st March 2023 stood at 529,070.47 crore as against 525,957.32 crore for the year ended 31^st March 2022. Profit after Tax during FY 2022-23 increased by 11% (excluding exceptional items) vis-a-vis FY 2021-22. A brief summary of the results on a consolidated basis is given below:

		(f in crore)
Particulars	FY 2022-23	FY 2021-22
Total Income	46,605.64	42,697.90
Profit before Exceptional items, Tax & Regulatory Deferral Account Balances	17,453.05	16,819.05
Profit after Tax	15,417.12	16,824.07
Net Cash from operating activities	38,004.74	26,123.52

27. Material developments in Human Resources / Industrial Relations

Please refer to Human Resource section of Directors Report for details.

	For and on behalf of the Board of Directors
	(K. Sreekant)
	Chairman & Managing Director
	DIN: 06615674
Date: 6^th August, 2023
Place: Gurugram

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