Power Grid secures approval for advanced metering infra project worth Rs 4000 crore; stock gains
Power Grid secures approval for advanced metering infra project worth Rs 4000 crore; stock gains
Power Grid, a state-owned electric services company, has received board approvals for two significant projects. The first project involves the implementation of advanced metering infrastructure projects worth Rs 4,067.3 crore. This initiative aims to enhance the metering capabilities and efficiency of power consumption measurement.
The second project entails the establishment of a pilot data center at the Manesar substation, which will require an investment of Rs 713.83 crore. The data center will serve as a testing ground for advanced technologies and systems.
The board approval for the transfer of the telecommunications business undertaking from Grid’s holding company to its subsidiary, Grid Teleservices, signifies a strategic decision aimed at optimizing operations and enhancing the efficiency of telecommunications services. By consolidating the telecommunications business under the subsidiary, Grid aims to streamline its operations and leverage synergies within the organization.
This transfer is expected to bring several benefits to the Grid, including improved focus on telecommunications services, enhanced management control, and better alignment of resources. By centralizing the telecommunications business within the Grid Teleservices, the company can allocate dedicated resources, implement specialized strategies, and drive targeted growth in this specific segment.
Additionally, this consolidation allows for more effective planning and execution of telecommunications projects, leading to improved operational efficiency and cost optimization. It also enables the subsidiary to leverage the expertise and experience of the Grid in the transmission sector, potentially resulting in synergistic opportunities and increased competitiveness in the telecommunications industry.
Overall, the board approval for the transfer of the telecommunications business undertaking signifies Grid’s commitment to optimizing its operations and strengthening its presence in the telecommunications sector through its subsidiary, Grid Teleservices.
The board approval for the transfer of the telecommunications business undertaking from Grid’s holding company to its subsidiary, Power Grid Teleservices, signifies a strategic decision aimed at optimizing operations and enhancing the efficiency of telecommunications services. By consolidating the telecommunications business under the subsidiary, Grid aims to streamline its operations and leverage synergies within the organization.
This transfer is expected to bring several benefits to the Grid, including improved focus on telecommunications services, enhanced management control, and better alignment of resources. By centralizing the telecommunications business within Grid Teleservices, the company can allocate dedicated resources, implement specialized strategies, and drive targeted growth in this specific segment.
Additionally, this consolidation allows for more effective planning and execution of telecommunications projects, leading to improved operational efficiency and cost optimization. It also enables the subsidiary to leverage the expertise and experience of Power Grid in the power transmission sector, potentially resulting in synergistic opportunities and increased competitiveness in the telecommunications industry.
Overall, the board approval for the transfer of the telecommunications business undertaking signifies Power Grid’s commitment to optimizing its operations and strengthening its presence in the telecommunications sector through its subsidiary, Power Grid Teleservices.
The Indian government has set a target to install 250 million smart meters by 2026 as part of its efforts to modernize the power distribution system. This initiative aims to enhance metering capabilities, improve energy management, and enable efficient power consumption measurement across the country. The increasing focus on smart meter installations reflects the growing importance of digital technology in the power sector and the broader push for energy efficiency and sustainability.
Power Grid is recognized as India’s largest power transmission utility, boasting an extensive transmission network of 1,74,113 circuit kilometers. The company plays a crucial role in the country’s power sector, as it transmits approximately 45 percent of the total power generated in India through its robust transmission infrastructure. This impressive statistic highlights Power Grid’s significant contribution to the reliable and efficient transmission of electricity across the nation. The information provided is sourced from ICICI Direct.
In the quarter ended March 2023, Power Grid witnessed a nearly 4 percent year-on-year (YoY) increase in consolidated net profit, amounting to Rs 4,320 crore. This growth reflects the company’s ability to generate higher profits during the period. Additionally, consolidated revenue for the quarter showed a significant YoY increase of nearly 15 percent, reaching Rs 12,264 crore. This growth in revenue highlights Grid’s strong performance in terms of generating higher income from its operations.
