Transcript Document 7549825

“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
1.0 POWERGRID at a Glance
1.1 POWERGRID at a glance
Central Transmission
Utility of the country
since 1998
Listed Company with
public holding of 13.64%
and balance by
Government of India
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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1.2 POWERGRID at a glance
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Transmission Lines
> 73,400 Ckm
Sub-stations
124 Nos
Transformation capacity
> 82,100 MVA
System availability
> 99%
Power being carried
> 325 BUs
Telecom network
> 22,000 km
+800kV HVDC system
under construction
1200kV UHV AC system
under development
Employees
8200
Gross Assets
US$ 8.77 Bn
Turnover (FY 2008-09)
US$ 1.53 Bn
Net Profit (FY 2008-09)
US$ 368 Mn
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1.3 AREAS OF OPERATION
Development of
Central Sector
Transmission
System
• Generation Linked
• Grid Strengthening
• Inter-regional links
• International links
Grid Management
Telecom
• Establishment
of
modern
Load
Despatch Centres
• Owns & Operate
Fibre optic cable
network
• Licenses –
NLDO, ISP and
IP-I
• Providing
Leased circuits
& Internet
services
• Real-time
Operation
• Optimum
scheduling
despatch
Grid
&
• Energy accounting
including
settlements
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Consultancy
National &
International
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• Transmission
• Load Dispatch &
Communication
• Distribution
• Telecom
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1.4 POWERGRID – Growth Profile
71500
46245
59460
50745
47757
Turn over
Turnover & Profit
(Rs. Crore)
67000
Circuit Kms.
5082
4097
35119
2831
2533 2806
27244
22228
1770
634
983
237
92-93
95-96
7029
Profit
98-99
02-03
03-04
04-05
06-07
07-08
08-09
40319
Asset Base (Rs. Crore)
35417
19876
95-96
444
98-99
02-03
748
03-04
786
04-05
1229
06-07
Manpower (Employees) 7427
6167
29015
18943
92-93
275
643
6624 6811
6872
6828
1448 1691
07-08
7645
08-09
8214
6881
21930
8851
3521
92-93
6
5492
95-96
98-99
02-03
03-04
04-05
06-07
07-08
08-09
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92-93
95-96
98-99
02-03
03-04
04-05
06-07
07-08
08-09
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1.5 Towards Green Environment
Environment, Social Policies and Procedures
(ESPP) based on principles of Avoidance,
Minimization and Mitigation
50
mtr
9 - 25 mtr
4 - 5 mtr approx
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
220 KV line upgraded
with 400/220 KV
multi-circuit line in
Jaldapara Sanctuary
without felling of
single tree
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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
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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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2.0 POWERGRID’s foray into
Telecom Business
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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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 system99.99%
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2.3 OPGW INSTALLATION
OPTICAL GROUND WIRE
ACSR STRANDS
ALUMINIUM TUBE
FIBRE
OPGW
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2.4 POWERGRID’s Transmission Network & Telecom N/W
POWER TRANSMISSION N/W
73,400 Ckm
13
22000 Km
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3.0 Project Cost & Financing
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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4.0 Licensing & Regulatory issues
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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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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5.0 Tariff Mechanism & Revenue Stream
5.1 Tariff Mechanism for Telecom Services
PoP of Customer 1
in Chandigarh
Ceiling
Distances
Tariff
for
notified
various
by
the
capacity
Telecom
levels
&
Regulatory
Authority Of India (TRAI)
Various operators to compete within the ceiling
tariff notified by Regulator.
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5.2 POWERGRID’s Performance vis-à-vis Consultant's Projections
Figures US$ in Mn
32.6
35.0
27.2 27.5
30.0
25.0
19.1
20.0
16.8
15.0
8.4
10.0
5.0
5.8
0.5
1.8
9.9
3.0
1.6
0.0
2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09
Consultant's Projections*
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Actual Revenue
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6.0 Service Offerings & Market Scenario
6.1 POWERGRID’s OFFERINGS
Bandwidth Services offered

End to End bandwidth
Applications of Bandwidth




Ethernet
Leased Line
Private
Internet Services





MPLS / VPN Services



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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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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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7.0 Road ahead…
7.1 Opportunities in Telecom
-Data Centers - Market size 1.3
Mn sqft. (2007) & growing at 30% to
reach 5.1 Mn Sqft. in 2012 (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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POWERGRID’s INFOWAY – BRIDGING DISTANCES
THANK YOU
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POWERGRID’s Consultancy Services
Turnkey execution
of projects
Project feasibility
and system planning
Sub-transmission,
Distribution &
Rural Electrification
Real Time Grid Operation
for Optimum Scheduling
& Despatch
Optical Fibre
Telecom Network
Up-rating and up-grading
of existing
transmission lines
Residual Life Assessment
of Equipment
Environment Impact
Assessment and
Social Impact Studies
Quality Assurance
and Inspection Services
Design, Procurement,
Engineering, Construction,
O&M of transmission
lines and substations
Establishment of Unified
Load Despatch &
Communication Systems
Setting up of Oil
Testing Laboratories and
Condition Monitoring &
Diagnostics of Equipment
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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
Back
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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
E1 (2 Mbps)
DS3 (45 Mbps)
STM1(155 Mbps)
Ceiling Tariff as per TRAI
notification dt 21st April
2005
On going market rates
8.5 Lakhs / year
3-45 Lakhs / year
61.59 Lakhs/ year
25-30 Lakhs/ year
1.652 Crores / year
60-70 Lakhs / year
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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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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) Back
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Our Customers
Major Telecom Service Providers & ISPs
Verizon
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Our Customers
GOVERNMENT DEPTs
MHA
ARMY
ITES, BPOs & MNCs
C&W
MEDIA
TV 9
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NETV
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Data Centers
Reliable
Connectivity at
POWERGRID
stations
POWERGRID’s
Infrastructure
available across
the country
Infrastructure
Reliable
Power
supply
Broadband
Connectivity
Know-How &
Technical
Support
Locating the
Data Centers at
Substations
POWERGRID to
enter into
Strategic
Partnerships
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Data Centres

Data center capacity in India expected to reach 5.1 million square feet by 2012Projected 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
back
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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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POWERGRID’s Towers for Rural Telecom
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MULTI CIRCUIT TOWERS TO CONSERVE RoW AND ENVIRONMENT
1
2
DOUBLE CIRCUIT TOWER
MULTI CIRCUIT TOWER
(45 m. High)
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(70 m. High)
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Compact Tower / Pole Type Towers
Compact 765 kV tower
Pole Type 400 kV Tower
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PERFORMANCE RECOGNITION
Rated Consistently “EXCELLENT” against MoU with Govt of
A
W
A
R
D
S
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India since 1993-94
“National Awards for Meritorious Performance” instituted by
Govt. of India
IEEMA Power Awards 2009
“Star” Public Sector Company Award for 2007-08 by Business
Standard.
“INFOCOM CMAI National Telecom Award 2009” for “Utilities
Providing Best Telecom Infrastructure”
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