t.k wali, executive director s.subramanian, dy.general manager smart power utilities in telecom...

T.K Wali, Executive Director

S.Subramanian, Dy.General Manager

““Smart Power Utilities in Telecom Business” Smart Power Utilities in Telecom Business” Success story ofSuccess story of

Power Grid Corporation of India Ltd Power Grid Corporation of India Ltd

Presented by

1.0 POWERGRID at a Glance1.0 POWERGRID at a Glance

Apr 10, 2023 SDN FORUM - WORLD BANK3

1.1 POWERGRID at a glance

Conferred with Navratna status in May, 2008

Conferred with Navratna status in May, 2008

Central Transmission Utility of the country

since 1998

Central Transmission Utility of the country

since 1998

Carries about 45% of Country’s electric

power

Carries about 45% of Country’s electric

power

POWERGRID is one of the largest Transmission Utility in the World

POWERGRID is one of the largest Transmission Utility in the World

Listed Company with public holding of

13.64%and balance by

Government of India

Listed Company with public holding of

13.64%and balance by

Government of India

Administrator

1.Bonnevilla Power Administration – USA2.National Grid Corporation (NGC) – UK3.POWERGRID – India4.Transpower – Newzealand5.ESCOM – South Africa6.Ontario Hydro – Canada7.Kraftwerke AG – Germany


1.2 POWERGRID at a glance

Transmission Lines> 73,400 Ckm

Sub-stations 124 Nos

+800kV HVDC systemunder construction

Power being carried> 325 BUs

System availability> 99%

Transformation capacity> 82,100 MVA

1200kV UHV AC systemunder development

Employees8200

Telecom network> 22,000 km

Gross Assets US$ 8.77 Bn

Turnover (FY 2008-09)US$ 1.53 Bn

Net Profit (FY 2008-09)US$ 368 Mn


1.3 AREAS OF OPERATION

Telecom

Development of Central Sector Transmission

System Grid Management

• 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

Consultancy National &

International

• Transmission• Load Dispatch &

Communication• Distribution• Telecom


634237

983275

1770

444

2533

643

2806

748

2831

786

4097

1229

5082

1448

7029

1691

92-93 95-96 98-99 02-03 03-04 04-05 06-07 07-08 08-09

Turn over

Profit

2222827244

35119

46245 4775750745

5946067000

71500

92-93 95-96 98-99 02-03 03-04 04-05 06-07 07-08 08-09

6

Circuit Kms.

35215492

8851

18943 1987621930

29015

3541740319

92-93 95-96 98-99 02-03 03-04 04-05 06-07 07-08 08-09

Asset Base (Rs. Crore)6167

6624 68116872 6828 6881

7427 7645 8214

92-93 95-96 98-99 02-03 03-04 04-05 06-07 07-08 08-09

Manpower (Employees)

Turnover & Profit(Rs. Crore)

1.4 POWERGRID – Growth Profile


Environment, Social Policies and Procedures (ESPP) based on principles of Avoidance, Minimization and Mitigation

9 - 25 mtr

50 mtr

4 - 5 mtr approx

220 KV line upgraded with 400/220 KV

multi-circuit line in Jaldapara Sanctuary

without felling of single tree

Specially designed high rise / multi circuit / Compact towers

to avoid / reduce cutting of treesTotal Forest involvement reduced from 6% to 1.35% after

implementation of ESPP since 1998Timely project implementation without any rehabilitation &

resettlement disputesSelected by The World Bank for Use of Country SystemConferred “Green Award 2006” by The World Bank for

promoting environmental sustainabilitySocial Accountability Standard (SA-8001:2001) certified

Specially designed high rise / multi circuit / Compact towers

to avoid / reduce cutting of treesTotal Forest involvement reduced from 6% to 1.35% after

implementation of ESPP since 1998Timely project implementation without any rehabilitation &

resettlement disputesSelected by The World Bank for Use of Country SystemConferred “Green Award 2006” by The World Bank for

promoting environmental sustainabilitySocial Accountability Standard (SA-8001:2001) certified

1.5 Towards Green Environment


Providing total solution in transmission project execution from concept to

commissioning, using in-house expertise

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

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

Executed more than 250 numbers of consultancy assignments for various national and international clients

POWERGRID is providing consultancy services tovarious National & International clients in the field ofPower Transmission, Grid management and Telecom

POWERGRID’s Consultancy Services

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


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-

99.99%


OPTICAL GROUND WIRE

OPGW

ALUMINIUM TUBEACSR STRANDS

FIBRE

2.3 OPGW INSTALLATION


2.4 POWERGRID’s Transmission Network & Telecom N/W

73,400 Ckm 22000 Km

POWER TRANSMISSION N/W

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)

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)


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.

5.0 Tariff Mechanism & Revenue Stream


PoP of Customer 1in Chandigarh

5.1 Tariff Mechanism for Telecom Services

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.


0.5

8.4

27.2

9.9

3.0

19.1

27.5

32.6

5.8

1.61.8

16.8

0.0

5.0

10.0

15.0

20.0

25.0

30.0

35.0

2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09

Consultant's Projections* Actual Revenue

5.2 POWERGRID’s Performance vis-à-vis Consultant's Projections

Figures US$ in Mn

Administrator

IVO FinlandPWC

6.0 Service Offerings & Market Scenario


End to End bandwidth

Ethernet Private Leased Line

Internet Services

MPLS / VPN Services

Bandwidth Services offered

Voice & Data Video Conferencing Banking & Financial services Tele-medicine Digital Libraries Data Centres State Wide Area Networks Corporate VPNs Distance Education

Applications of Bandwidth

6.1 POWERGRID’s OFFERINGS


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.

7.0 Road ahead…


7.1 Opportunities in Telecom

-Tower Infrastructure Business -Total market size approx 1.5

lakh Towers or US$ 1630Mn

-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


THANK YOU

POWERGRID’s INFOWAY – BRIDGING DISTANCESPOWERGRID’s INFOWAY – BRIDGING DISTANCES


Turnkey executionof projects

Turnkey executionof projects

Project feasibilityand system planning

Project feasibilityand system planning

Sub-transmission,Distribution &

Rural Electrification

Sub-transmission,Distribution &

Rural Electrification

Establishment of UnifiedLoad Despatch &

Communication Systems

Establishment of UnifiedLoad Despatch &

Communication Systems

Environment ImpactAssessment and

Social Impact Studies

Environment ImpactAssessment and

Social Impact Studies

Optical FibreTelecom Network

Optical FibreTelecom Network

Setting up of Oil Testing Laboratories andCondition Monitoring &

Diagnostics of Equipment

Setting up of Oil Testing Laboratories andCondition Monitoring &

Diagnostics of Equipment

Quality Assuranceand Inspection Services

Quality Assuranceand Inspection Services

Up-rating and up-gradingof existing

transmission lines

Up-rating and up-gradingof existing

transmission lines

Real Time Grid Operationfor Optimum Scheduling

& Despatch

Real Time Grid Operationfor Optimum Scheduling

& Despatch

Residual Life Assessmentof Equipment

Residual Life Assessmentof Equipment

Design, Procurement,Engineering, Construction,

O&M of transmissionlines and substations

Design, Procurement,Engineering, Construction,

O&M of transmissionlines and substations

POWERGRID’s Consultancy Services

NEXT


POWERGRID has an exclusive International Business Dept to undertake consultancy assignments. Some of the projects areDubai : 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 EnterprisesAfganistan project US$90Mn - Completed in Jan 2009Engineering consultancy to AEAI & MEW , AfganistanNigeria Consultanct to Power Holding Company of Nigeria for review and updation of Telecommunication and substation automation systemNepal 220KV line for Nepal electricity authority US$ 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/sVietnam, China, Kenya, Ethiopia,Uzbekistan, Afganistan & Bangladesh : EoIs submitted for garnering business for various projects

International Business

Back


Bandwidth Pricing:

Leased Lines:Based on TRAI Notified Rates (April 2005 Base)Chargeable distance 1.25 times aerial distanceTariff cap 500Km

CapacityCeiling 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

ILLUSTRATIVE Tariff

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:

Back


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 servicesNext


Features of Telecom LicensesIP-I ( Infra structure Provider Category –I) No Formal License Required. Only Registration with DoTTo 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


Our Customers

Major Telecom Service Providers & ISPs

Next

Verizon


Our Customers

NETV

GOVERNMENT DEPTs

ITES, BPOs & MNCs

MEDIA

MHA

ARMY

C&W

TV 9Back


Data Centers

InfrastructureBroadband

Connectivity

Reliable Power supply

Know-How & Technical Support

Locating the Data Centers at

Substations

POWERGRID’s Infrastructure

available across the country

Reliable Connectivity at

POWERGRID stations

POWERGRID to enter into Strategic

PartnershipsNext


Data Centres

Data center capacity in India expected to reach 5.1 million square feet by 2012- 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

back


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).

Next


POWERGRID’s Towers for Rural Telecom

Back


1

4

2

321

DOUBLE CIRCUIT TOWER MULTI CIRCUIT TOWER

(45 m. High) (70 m. High)

MULTI CIRCUIT TOWERS TO CONSERVE RoW AND ENVIRONMENT

Next


Compact Tower / Pole Type Towers

Pole Type 400 kV TowerCompact 765 kV tower

Back


PERFORMANCE RECOGNITION

Rated Consistently “EXCELLENT” against MoU with Govt of

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 INFOCOM CMAI National Telecom Award 2009” for “Utilities

Providing Best Telecom Infrastructure”Providing Best Telecom Infrastructure”

AWARDS

t.k wali, executive director s.subramanian, dy.general manager smart power utilities in telecom...

Documents

world bank slide

sdn forum world bank

power transmission nw

telecom business slide

mn slide

glance slide

basis slide

power transmission lines