1. “Smart Power Utilities in Telecom Business” Success story of
Power Grid Corporation of India Ltd
Presented by
T.K Wali, Executive Director
S.Subramanian, Dy.General Manager

2. 1.0 POWERGRID at a Glance

3. 1.1 POWERGRID at a glance Listed Company with public holding of 13.64%
and balance by Government of India
Central Transmission Utility of the country since 1998
Conferred with Navratna status in May, 2008
Carries about 45% of Country’s electric power
POWERGRID is one of the largest Transmission Utility in the World
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4. Transformation capacity
1.2 POWERGRID at a glance
Transmission Lines
> 73,400 Ckm
Sub-stations
124 Nos
+800kV HVDC system
under construction
Power being carried
> 325 BUs
System availability
> 99%
Transformation capacity
> 82,100 MVA
1200kV UHV AC system
under development
Employees
8200
Telecom network
> 22,000 km
Gross Assets
US$ 8.77 Bn
Turnover (FY )
US$ 1.53 Bn
Net Profit (FY )
US$ 368 Mn
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5. 1.3 AREAS OF OPERATION Telecom
Development of Central Sector Transmission System
Consultancy National & International
Grid Management
Telecom
Generation Linked
Grid Strengthening
Inter-regional links
International links
Establishment of modern Load Despatch Centres
Real-time Grid Operation
Optimum scheduling & despatch
Energy accounting including settlements
Owns & Operate Fibre optic cable network
Licenses – NLDO, ISP and IP-I
Providing Leased circuits & Internet services
Transmission
Load Dispatch & Communication
Distribution
Telecom
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6. 1.4 POWERGRID – Growth Profile
Circuit Kms.
Turnover & Profit
(Rs. Crore)
Growth in Last 17 Years
Assets Growth %
Turnover %
Profit %
Circuit Kilometer %
Manpower %
Manpower (Employees)
Asset Base (Rs. Crore)
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7. 1.5 Towards Green Environment
mtr
50 mtr
4 - 5 mtr approx
Environment, Social Policies and Procedures (ESPP) based on principles of Avoidance, Minimization and Mitigation
Specially designed high rise / multi circuit / Compact towers to avoid / reduce cutting of trees
Total Forest involvement reduced from 6% to 1.35% after implementation of ESPP since 1998
Timely project implementation without any rehabilitation & resettlement disputes
Selected by The World Bank for Use of Country System
Conferred “Green Award 2006” by The World Bank for promoting environmental sustainability
Social Accountability Standard (SA-8001:2001) certified
220 KV line upgraded with 400/220 KV multi-circuit line in Jaldapara Sanctuary without felling of single tree
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8. POWERGRID’s Consultancy Services
POWERGRID is providing consultancy services to
various National & International clients in the field of
Power Transmission, Grid management and Telecom
Providing total solution in transmission project execution from concept to commissioning, using in-house expertise
Providing consultancy services in Afghanistan, United Arab Emirates (UAE), Nigeria, Bangladesh, Sri Lanka, Bhutan and Nepal
Executed more than 250 numbers of consultancy assignments for various national and international clients
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9. 2.0 POWERGRID’s foray into Telecom Business

10. 2.1 Diversification & Creation of Telecom N/W
POWERGRID initially laid Optical Ground Wire (OPGW) on its transmission lines for Grid Management
Diversified into Telecom with the brand name to utilize spare capacity of OPGW installed for Grid Monitoring & with an incremental investment
Created Telecom backbone N/W of 22,000 Kms covering 120 cities on 12 / 24 fiber OPGW
320 Gbps DWDM system and SDH access N/W
All equipment & Fibres are international standards compliant (ITU-T).
4 Regional & National level NOCs with dedicated NMS for monitoring of the network on 24 X 7 basis
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11. 2.2 Advantages of OPGW Network
OPGW is installed on Power Transmission Lines which serves twin purposes. i.e for Earthing & Communication.
Overhead Telecom Network is sturdy, secure, reliable, free from rodent menace, theft and vandalism.
Right of Way (ROW) readily available on transmission lines
No hindrance to environment & forests
Faster Roll-out. Mostly Live line installation
Availability of Telecom Network over Transmission system %
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12. 2.3 OPGW INSTALLATION OPGW ACSR STRANDS ALUMINIUM TUBE FIBRE
OPTICAL GROUND WIRE
OPGW
ALUMINIUM TUBE
ACSR STRANDS
FIBRE
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13. POWER TRANSMISSION N/W
2.4 POWERGRID’s Transmission Network & Telecom N/W
POWER TRANSMISSION N/W
73,400 Ckm
22000 Km
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14. 3.0 Project Cost & Financing

15. 3.1. Project Cost & Funding Approved Project cost US$ 222.5 Mn
World Bank funding US$ 91 Mn
(Project funded under IBRD-I, II & III by the World Bank)
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16. 4.0 Licensing & Regulatory issues

17. 4.1 Regulatory Requirements
Telecom Sector Perspective:
National Telecom Policy 1999
Allowed the usage of backbone network of Power Transmission Companies / Railways etc. for national long distance communication
IT Task Force of GOI recommended
Railways, SEBs, POWERGRID permitted to ease the excess/spare capacity for data transmission to DoT/ Telecom licensee etc.
POWERGRID’s Entry in Telecom
Memorandum & Articles of Association has been amended to include Telecom as a business unit
Obtained Telecom Licenses(Initially “Infrastructure provider”(IP) in 2002 and migrated to NLD (National Long Distance) in 2006)
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18. 4.2 Regulatory Requirements & Benefits
Power Sector Perspective:
Central Electricity Regulatory Commission (CERC) prescribed Revenue share on per Km / Per annum for utilising Transmission infrastructure for Telecom purpose
Value addition to the existing transmission infrastructure and generates additional revenue to the core business
Major communication needs of captive requirements for Grid Management, LAN ,VoIP & Video Conferencing are met with reliability, security & cost effective.
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19. 5.0 Tariff Mechanism & Revenue Stream

20. 5.1 Tariff Mechanism for Telecom Services
PoP of Customer 1
in Chandigarh
Ceiling Tariff for various capacity levels & Distances notified by the Telecom Regulatory Authority Of India (TRAI)
Various operators to compete within the ceiling tariff notified by Regulator.
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21. 5.2 POWERGRID’s Performance vis-à-vis Consultant's Projections
Figures US$ in Mn
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22. 6.0 Service Offerings & Market Scenario

23. Bandwidth Services offered
6.1 POWERGRID’s OFFERINGS
Bandwidth Services offered
Applications of Bandwidth
End to End bandwidth
Ethernet Private Leased Line
Internet Services
MPLS / VPN Services
Voice & Data
Video Conferencing
Banking & Financial services
Tele-medicine
Digital Libraries
Data Centres
State Wide Area Networks
Corporate VPNs
Distance Education
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24. 6.2 Potential Market / Customers
Carriers – Major Telcos
ISPs providing bulk bandwidths to other ISPs.
Retailers – ISPs selling to end customers directly
Corporate , MNCs & Enterprise customers
IT / ITES companies & Software Technology parks
Govt Organisations
BPOs / KPOs
Defence Services
Media & Entertainment
Services Sector(Education,Health care)
POWERGRID’s customers include incumbent operator BSNL, Global players Verizon Business, Cable & Wireless etc.Discussion on with AT&T , BT & Google.
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25. 7.0 Road ahead…

26. 7.1 Opportunities in Telecom
Data Centers - Market size 1.3 Mn sqft. (2007) & growing at 30% to reach 5.1 Mn Sqft. in (as per Global Telecom Consultant Gartner)
Additional Requirement from National E-Governance (NEGP) Plan for creation of State Data Centers for States
Data Centres to consolidate services, applications and infrastructure and ensure efficient electronic delivery of services to common man
-Tower Infrastructure Business -Total market size approx 1.5 lakh Towers or US$ 1630Mn
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27. POWERGRID’s INFOWAY – BRIDGING DISTANCES
THANK YOU
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28. POWERGRID’s Consultancy Services
Turnkey execution
of projects
Project feasibility
and system planning
Sub-transmission,
Distribution &
Rural Electrification
Establishment of Unified
Load Despatch &
Communication Systems
Environment Impact
Assessment and
Social Impact Studies
Optical Fibre
Telecom Network
Setting up of Oil
Testing Laboratories and
Condition Monitoring &
Diagnostics of Equipment
Quality Assurance
and Inspection Services
Up-rating and up-grading
of existing
transmission lines
Real Time Grid Operation
for Optimum Scheduling
& Despatch
Residual Life Assessment
of Equipment
Design, Procurement,
Engineering, Construction,
O&M of transmission
lines and substations
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29. International Business
POWERGRID has an exclusive International Business Dept to undertake consultancy assignments. Some of the projects are
Dubai : Consultancy assignment from Dubai electricity & Water authority (DEWA) for 2 Nos 400KV GIS sub-stations and associated transmission lines in consortium with M/s Sigma Enterprises
Afganistan project US$90Mn - Completed in Jan 2009
Engineering consultancy to AEAI & MEW , Afganistan
Nigeria Consultanct to Power Holding Company of Nigeria for review and updation of Telecommunication and substation automation system
Nepal 220KV line for Nepal electricity authority US$ 22 Million
Myanmar 230KV Transmission project in Myanmar ( 230 KV line – 300 miles, 66KV line 50 miles, 230KV S/S – 1 No, 3 Nos 230/66/11KV S/S & one 66/11KV S/s
Vietnam, China, Kenya, Ethiopia,Uzbekistan, Afganistan & Bangladesh : EoIs submitted for garnering business for various projects
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30. Ceiling Tariff as per TRAI notification dt 21st April 2005
ILLUSTRATIVE Tariff
Bandwidth Pricing:
Leased Lines:
Based on TRAI Notified Rates (April 2005 Base)
Chargeable distance 1.25 times aerial distance
Tariff cap 500Km
TRAI Tariff:
Pre-revised tariff vis-à-vis as per the revised TRAI tariff, the ceiling of prices for various capacity levels >500 Kms. are as follows:
Capacity
Ceiling Tariff as per TRAI notification dt 21st April 2005
On going market rates
E1 (2 Mbps)
8.5 Lakhs / year
3-45 Lakhs / year
DS3 (45 Mbps)
61.59 Lakhs/ year
25-30 Lakhs/ year
STM1(155 Mbps)
1.652 Crores / year
60-70 Lakhs / year
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31. Telecom Licenses with POWERGRID
In 2001 POWERGRID obtained Infrastructure Provider category II (IP-II) License from DoT which permits to provide end-to-end bandwidth to Telecom Service providers
In 2002 POWERGRID also registered as Infrastructure Provider category I (IP-I) to provide dark fiber, leasing of infrastructure etc.
In 2003, POWERGRID obtained Internet Service Provider (ISP) Category “A” License to facilitate providing internet services across the country.
In 2006 POWERGRID migrated from IP-II to National Long Distance Operator (NLDO) by obtaining license from Govt of India to increase its business horizon to provide Voice, bandwidth to Govt Depts and Corporate and value added services
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32. Features of Telecom Licenses
IP-I ( Infra structure Provider Category –I)
No Formal License Required.
Only Registration with DoT
To provide dark fibres, Right Of way, duct space, towers & buildings
Processing Fee Rs.5000/-
No revenue sharing to DoT
NLD: National Long Distance Operations
Licensee has right to carry inter circle traffic excluding intra circle traffic except where such carriage is with mutual agreement with Fixed service providers.
License Fee Rs 2.5 Cr (US$ O.54Mn) Initially it was Rs 100Cr (US$ 22Mn) which was reduced in 2006 to facilitate more competition)
Bank Guarantee Rs 20 Cr (US$ 0.43Mn)
Revenue Share to DoT 6% ( Out of this 5% goes to Universal Services Obligation (USO) fund to support rural penetration)
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33. Verizon Our Customers Major Telecom Service Providers & ISPs Next
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34. GOVERNMENT DEPTs ITES, BPOs & MNCs MEDIA
Our Customers
NETV
GOVERNMENT DEPTs
ITES, BPOs & MNCs
MEDIA
MHA
ARMY
C&W
TV 9
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35. Data Centers Reliable Connectivity at POWERGRID stations
POWERGRID’s Infrastructure available across the country
Broadband Connectivity
Infrastructure
Reliable Power supply
Know-How & Technical Support
POWERGRID to enter into Strategic Partnerships
Locating the Data Centers at Substations
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36. Data Centres
Data center capacity in India expected to reach 5.1 million square feet by Projected to grow 31 percent from 2007 to 2012, according to Gartner, Inc.
POWERGRID is in a uniquely advantageous position to serve the Data centre market as POWERGRID has access to / owns
Sufficient land/ Secure Sites
Access to highly reliable quality power
Telecom connectivity at its grid substations.
Datacenter would cater the growing needs of Government, PSUs, Banks and Disaster Recovery Centres.
Large Corporate clients can also be catered through such facilities.
IBM,BT & WIPRO expressed interest in setting up Data centres in association with POWERGRID.
POWERGRID envisages to build 2 nos data centres each comprising 30,000 sqft. of raised floor to cater to Data centre as Main & Disaster Recovery centres
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37. Rural coverage through POWEGRID Towers
According to COAI (Cellular Operators Association of India), in the next three years 0.2 million towers may be needed for mobile and internet coverage requiring an investment of USD 16.2 billion
POWERGRID owns more than 1.5 lakhs (0.15 million) Towers and some of these present an excellent opportunity to serve as ready infra for mounting the telecom antennas.
POWERGRID’s Tower may be suitable for providing rural connectivity for GSM/CDMA and/or WiMAX
For this purpose, each tower has to be made suitable for housing the Telecom eqpt by providing AC Power/ Backup Power/ Auxiliary Power and installation of Air conditioned portable cabins (Shelters).
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38. POWERGRID’s Towers for Rural Telecom
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39. MULTI CIRCUIT TOWERS TO CONSERVE RoW AND ENVIRONMENT1 2 1 2 3 4
DOUBLE CIRCUIT TOWER
MULTI CIRCUIT TOWER
(45 m. High)
(70 m. High)
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40. Compact Tower / Pole Type Towers
Compact 765 kV tower
Pole Type 400 kV Tower
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41. PERFORMANCE RECOGNITION
Rated Consistently “EXCELLENT” against MoU with Govt of India since
“National Awards for Meritorious Performance” instituted by Govt. of India
IEEMA Power Awards 2009
“Star” Public Sector Company Award for by Business Standard.
“INFOCOM CMAI National Telecom Award 2009” for “Utilities Providing Best Telecom Infrastructure” A W R D S
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