THE

OF
ASSETS ASSURANCE ADVANTAGE

Annual Re por t 2023 -24

 POWERGRID Parli
Vizag Transmission Limited Transmission Limited

POWERGRID Kala Amb POWERGRID Warora

Transmission Limited Transmission Limited
 Contents
POWERGRID Jabalpur
Transmission Limited

CORPORATE
OVERVIEW P. 02
02 The Power of AAA
06 Chairman’s Message
Introduction to PGInvIT
08 About PGInvIT
11 Parties to PGInvIT
14 Growth enablers
16 Board of Directors
17 Key Personnel
Our Exceptional Assets Portfolio
19 Overview of Initial Portfolio Asset
Evaluating our Performance for FY 2023-24
26 CEO’s Review
27 Financial performance
28 Operational performance
Navigating our Strategic Landscape
33 Opportunity landscape
34 Competitive positioning
36 Strategic positioning
ESG Overview
39 Environment
40 Social
42 Governance

STATUTORY
REPORTS P. 43
44 Management Discussion and Analysis
49 Mandatory Disclosures
54 Report on Corporate Governance

FINANCIAL
STATEMENTS P. 70
71 Standalone Financials
104 Consolidated Financials

See this report online at

https://www.pginvit.in
 The Indian economy is advancing steadily, reflecting a
substantial increase in the country’s energy demands.
The power sector is witnessing a transformative phase,
marked by increasing reliance on non-fossil fuels,
government policies enhancing energy access and
domestic manufacturing, and efforts to improve the
financial health of the distribution sector. With a focus
on sustainability and energy security, it is essential to
have a reliable power sector from generating stations
to the end consumer. The nation’s energy transition
is further supported by robust power transmission
infrastructure, which is essential for the integration
of renewable energy sources. The transmission sector,
crucial for the overall operations of the power sector,
is expected to draw significant investments up to and
beyond 2030 to facilitate this energy transition.

2 POWERGRID Infrastructure Investment Trust

The Government of India is actively developing PGInvIT is committed to owning, constructing, operating,
mechanisms to fund substantial capital expenditures maintaining, and investing in India’s power transmission
through the monetisation of operational public assets, assets as an InvIT, aiming to provide stable and visible
utilising innovative structures like Infrastructure returns to its Unitholders. It is uniquely positioned to
Investment Trusts (InvITs). These trusts have rapidly leverage its AAA – ASSETS with a strong operational track
become popular among global and domestic record, long-term ASSURANCE of revenue with minimal
institutional investors due to their secure investment regulatory risk, and strategic ADVANTAGE of visible
opportunities in Indian infrastructure. cash flows and low leverage. This strategic positioning
enhances its attractiveness as a monetisation vehicle and
Power Grid Corporation of India Limited (POWERGRID), value-creation entity.
a Maharatna CPSE and one of the largest transmission
utilities globally, established PGInvIT. This was the first
asset monetisation through an InvIT by a CPSE in India,
marked by its landmark IPO in 2021. Through this IPO,
PGInvIT acquired five operating transmission assets from
POWERGRID.

ASSETS
5 operational and revenue-generating Inter-State Transmission System (ISTS) assets having
sound operational track record maintaining high availability, reliability and safety.

ASSURANCE
Assets implemented under Tariff-Based Competitive Bidding (TBCB) mechanism on
Build - Own - Operate – Maintain (BOOM) basis, with a 35-year contract period and minimal
risk of regulatory reset of transmission charges backing of India’s largest transmission utility
as Sponsor and Project Manager

ADVANTAGE
Availability-based Fixed tariffs pursuant to long-term TSAs – High visibility on cash flows
Low leverage – Debt-funded acquisition strategy for upcoming acquisition opportunities
Growth Opportunity – Large-scale investments in power transmission to create acquisition
opportunities

Annual Report 2023-24 3

Key performance indicators,
FY 2023-24

` 13,027.22 million ` 10,977.63 million ` 10,919.99 million

Total Consolidated Income Net distributable cash flows Distributions

` 12 > 99.75% 0.26%

Distribution per unit Average availability Net Debt to AUM
of each SPV

Distribution break-up in FY 2023-24

Treasury Income Repayment of SPV Debt

` 0.05, 0.42% ` 2.21, 18.42%

Dividend (tax exempt)

` 0.76, 6.33% Interest
` 7.75, 64.58%
Dividend (taxable)
` 1.23, 10.25%

OPERATIONAL PERFORMANCE FY 2023-24

Operating above targeted availability across assets

99.98% 100.00% 99.83% 99.89% 99.94%

7.62%
Operating expenses to total
income

Zero-accident
Accident-free operations

VTL PKATL PPTL PWTL PJTL

Except VTL, data is provisional.

4 POWERGRID Infrastructure Investment Trust

 CORPORATE OVERVIEW STATUTORY REPORTS FINANCIAL STATEMENTS

TOTAL DISTRIBUTION DECLARED SINCE LISTING (` PER UNIT)

Repayment of SPV Debt Treasury

` 3.43, 9.94% ` 0.10, 0.29%

Dividend (exempt)
` 2.91, 8.43% ` 12 per unit
Distribution guidance
` 34.50*
Interest for FY 2024-25
Dividend (taxable)
` 22.52, 65.28%
` 5.54, 16.06%
4.50

` 34.50
3.00

3.00

3.00

3.00

3.00

3.00

3.00

3.00

3.00

3.00

Distribution per unit

May’24
May’23
Nov’22

Nov’23
Aug’22
Nov’21

Aug’23
Jun’22
Jan’22

Jan’23

Jan’24

(* including ` 3.00 declared on May 22, 2024)

Annual Report 2023-24 5

Chairman’s Message

Dear Unitholders,
It is with great pleasure that I present to you the third Annual
Report of PGInvIT, the InvIT established by POWERGRID, a
Maharatna, Central Public Sector Enterprise. PGInvIT aims to propel
investment-led growth while providing both the general public and
institutional investors with opportunities to engage in and benefit
from the fast expanding infrastructure sector of India. I am pleased
to report that since our listing in May 2021, PGInvIT has consistently
delivered stable distributions to its unitholders.

During FY 2023-24, we announced a our SPVs, showcasing our commitment as This underscores our dedication to
distribution of ` 12 per unit, successfully responsible corporate citizen. We have a delivering value to our Unitholders.
meeting our annual guidance. This was strong corporate governance framework
supported by the sound operational and well-defined policies related to Gratitude and Appreciation
performance of our underlying assets. transactions with related parties, I extend my sincere gratitude to the
Since our listing, we have made a distribution, and borrowing, aligned Government of India and SEBI for their
total of 11 distributions, cumulatively with InvIT Regulations, to safeguard the initiatives in establishing investment
amounting to ` 34.50 per unit distributed interests of our Unitholders. vehicles like InvITs and for providing
to our Unitholders Including distribution a robust regulatory and taxation
declared on May 22, 2024. Strategic priorities for the future framework. Their efforts have greatly
The power transmission sector is poised facilitated the development and success
Leveraging the power of AAA to capitalize on the economic growth of PGInvIT.
PGInvIT initially acquired five power cycle, with increasing investments in the
transmission SPVs from POWERGRID coming years. As per CTU’s Rolling Plan for I am deeply thankful to the colleague
following its initial public offering. 2028-29, it is estimated that transmission Board members for their insightful
These assets are fully operational and projects worth ` 95,997 crore. guidance, to the management team
generate revenue, with a solid operational are under construction and ` 1,98,645 for their strategic leadership, and to
track record and an average availability are under planning/bidding/approval. all our employees for their exceptional
above the normative availability of 98% This investment will be largely facilitated commitment and hard work. I would
since the start of operations. The assets through the competitive bidding process, like to express my appreciation to
have a 35-year contract period under the presenting significant acquisition the Project Manager for the excellent
Tariff-Based Competitive Bidding (TBCB) opportunities for an investment vehicle management of our assets and extend
mechanism and have the backing of like PGInvIT. We expect to complete the my heartfelt thanks to our Trustee for its
POWERGRID, serving as both Sponsor acquisition of the remaining 26% equity continued support.
and Project Manager. Additionally, the shareholding from our Sponsor in four
advantage of availability-based tariffs of our SPVs. We are engaging with state Most importantly, I am profoundly
provide high visibility on cash flows governments regarding the monetization appreciative of the unitholders of
and mitigate regulatory uncertainty. of their operational power transmission PGInvIT. Your ongoing trust and
Leveraging the power of AAA - Assets, assets following the Ministry of Power’s confidence in our vision and operations
Assurance, and Advantage, PGInvIT guidelines. We are also prepared for drives us forward. We are committed to
is dedicated to create value for its any monetization made by our Sponsor rewarding your faith and look forward to
Unitholders. through InvIT. your continued support as we strive to
create lasting value.
Importance of sustainability Leveraging its unique strengths, along
Sustainability forms the cornerstone of with top credit ratings and the trust Yours Sincerely,
our operations. Under the guidance of of investors and lenders, PGInvIT is
our Project Manager, we are integrating strategically positioned to capitalize on Abhay Choudhary
ESG best practices into the operations of emerging acquisition opportunities. Chairman

6 POWERGRID Infrastructure Investment Trust

Intr ducti n
t PGInvIT
08 About PGInvIT
11 Parties to PGInvIT
14 Growth enablers
16 Board of Directors
17 Key Personnel
About PGInvIT

India’s first InvIT sponsored

by Maharatna CPSE
PGInvIT is an Infrastructure Investment Trust (InvIT) designed to own, construct, operate,
maintain, and invest in assets in India’s burgeoning power and power transmission sector.

As the first InvIT established by a government entity, POWERGRID – a Maharatna CPSE

under the Ministry of Power, Government of India – we benefit from the backing of
the nation’s largest power transmission operator. This, combined with favourable
regulations and a strong financial standing, positions us as a potent investment
vehicle. Our strategic placement allows us to leverage the extensive opportunities
arising from India’s expanding power transmission sector and the government’s asset
monetisation initiatives. With our robust infrastructure and expert management, PGInvIT
is uniquely equipped to support and capitalise on India’s energy sector growth, offering
investors stable and attractive returns while contributing to the nation’s sustainable
development goals.

OUR VISION OUR PROFILE

PGInvIT was established under the Indian Trusts Act, 1882,
on September 14, 2020, and subsequently registered as an
To achieve a focussed business Infrastructure Investment Trust (InvIT) under the SEBI InvIT
model with productive and Regulations on January 7, 2021. Our units were publicly listed
on the National Stock Exchange of India Limited (NSE) and the
operational efficiency to
BSE Limited (BSE) after a successful public issue in May 2021.
enhance returns
Following our IPO, we acquired a 74% equity shareholding in five
operational power transmission Special Purpose Vehicles (SPVs)
from POWERGRID, with agreements to secure the remaining
To capitalise on value accretive equity after the stipulated lock-in period. In March 2022, we
growth through acquisitions and acquired the remaining 26% shareholding in VTL. The other four
non-transmission revenues SPVs will be taken up in FY 2024-25.

Our portfolio comprises five SPVs that were established

under the TBCB mechanism, each bound by long-term TSAs.
To optimise transmission These agreements mitigate operational risks and ensure
assets through an efficient reliable and stable cash flows. We benefit from fixed tariffs
capital structure and can earn additional incentives by maintaining over 98%
availability. This operational model positions us strongly to
provide consistent returns and distributions to our Unitholders,
aligning with our strategic goal of offering stable and attractive
investment opportunities in India’s power transmission sector.

8 POWERGRID Infrastructure Investment Trust

 CORPORATE OVERVIEW STATUTORY REPORTS FINANCIAL STATEMENTS

AT A GLANCE

5 TBCB ` 84.70 billion 3,698.59 ckm 6,630 MVA

SPVs Enterprise Value 11 transmission lines Total transformation
capacity of
3 substations

AAA Rated 1,955.66 km 28+ years

By ICRA, CARE and Optical Ground Wire Average residual life of Transmission
CRISIL Service Agreements (TSAs)

OUR STRUCTURE

Power Grid Corporation Sponsor 15% 85%

Public Unitholders4
of India Limited2

100%

3
POWERGRID Unchahar IDBI Trusteeship Services
26% in each IPA1

Transmission Limited Limited (ITSL)

Investment Manager Trustee

Project Manager

74% in 100%
each IPA

Vizag Transmission Limited*

POWERGRID Kala Amb POWERGRID Parli POWERGRID Warora POWERGRID Jabalpur
Transmission Limited Transmission Limited Transmission Limited Transmission Limited * Formerly known as POWERGRID
Vizag Transmission Limited

Initial Portfolio Assets (IPAs)

1 Balance 26% equity shareholding has become eligible for acquisition in a phased manner, following the expiry of the lock-in conditions under the
TSA: PKATL (July 2022), PPTL (June 2023), PWTL (July 2023), and PJTL (January 2024)
2 Holds 136.5 million units
3 Total 910.0 million units
4 Hold 773.5 million units

OUR OPERATING MODEL#

The InvIT Assets shall distribute at least 90% The Trust shall distribute at least 90% of the
of their Net Distributable Cash Flows (NDCF) Distributable Income to the Unitholders at least
to the Trust once every quarter

#
till 31.03.2024

Annual Report 2023-24 9

 TRUSTED BY UNITHOLDERS

PGInvIT has a unitholder base of over 160,000, making it one of the largest among public Infrastructure Investment
Trusts (InvITs) in India. This substantial figure is a testament to our strong reputation, robust business model, and
commitment to delivering value, which have collectively garnered the trust and confidence of a diverse investor
base. Our sponsor, POWERGRID, holds 15% of the units, which are subject to a lock-in period of three years from
the date of listing, in accordance with InvIT regulations. POWERGRID continues to hold 15% of units of PGInvIT
and the same underscores our sponsor’s commitment to our long-term success and stability, enhancing investor
confidence in our operational and financial governance.

Unitholding Pattern
(Total Outstanding Units: 910 million)

15.00% 30.93%
Sponsor Individuals

20.79%
Foreign Portfolio
Investors

7.00% 14.30%
Others
Insurance
Companies

7.40% 4.58%
Mutual Funds
Pension and
Provident Funds

MARQUEE INVESTORS

CPP SBI Pension Tata AIG Aditya Capital

Investments Funds (P) Ltd. Insurance Puri Group

HDFC Mutual Tata AIA Life Vanguard Utilico ICICI Lombard

Fund General
Insurance

(As on March 31, 2024)

10 POWERGRID Infrastructure Investment Trust

 CORPORATE OVERVIEW STATUTORY REPORTS FINANCIAL STATEMENTS

Parties to PGInvIT

The dynamic stakeholders

who shape our journey
PGInvIT’s excellence is bolstered by the expertise and market leadership of prestigious
entities that serve as our stakeholders. Their extensive experience provides a formidable
foundation that empowers us to make strategic decisions that align with the best
interests of our esteemed Unitholders.

SPONSOR AND PROJECT MANAGER

POWER GRID CORPORATION OF

INDIA LIMITED

Our Sponsor, POWERGRID, is a Maharatna Central Public Sector The success of POWERGRID is supported by its robust
Enterprise (CPSE) under the Ministry of Power, Government leadership team, comprising highly experienced and
of India, and is publicly listed on the NSE and BSE. It is one of professional government-appointed directors who bring
the world’s largest transmission companies, involved in the strategic insight from industry and social connections.
design, financing, construction, operation, and maintenance of This leadership is pivotal in guiding the Company’s overall
power transmission projects across India. In addition to its core strategic direction. The management team, with their deep
operations, POWERGRID offers transmission and distribution domain knowledge in technical and financial aspects of the
consultancy services and has a presence in 23 countries. transmission business, plays a crucial role in POWERGRID’s
POWERGRID through its subsidiary also operates in the Indian ability to successfully negotiate, structure, and finance power
telecom infrastructure sector. transmission investments.

The strengths and capabilities of POWERGRID provide PGInvIT with a significant competitive advantage,
enhancing our operational efficiency and enabling us to maintain strong industry relationships. This backing is
instrumental in our pursuit to optimise value creation and service excellence in the power transmission sectors.

POWERGRID Our Strengths

51.34% Largest1 3rd Rank2 Prestigious listings

GoI Shareholding transmission company in India Profit Making CPSE NSE 50
BSE Sensex
Various ESG indices
Fastest growing3 >83%4 Highest5
electric utility in Asia share in India’s cumulative market share in Inter State Transmission
Pacific Rim region for inter-regional power System projects under TBCB mechanism
8 successive years transfer capacity

Certifications
PAS 99:2012 ISO 14001:2015 SA 8000:2014 ISO 27001:2013
Integrated Common Environmental Social Accountability Information Security
Management System Management System System Management System

ISO 9001:2015 ISO 45001:2018 ISO 50001:2018

Quality Management Occupational Health and Energy Management
System Safety Management System System

1 In transmission lines length ckm | 2 As per DPE(GoI) PE Survey 2022-23 | 3 According to Platts Top 250 Global Energy Company
Rankings | 4 As per POWERGRID Q4 FY 2023-24 Investor Presentation | 5 Based on CEA Report for March 2024

Annual Report 2023-24 11

 POWERGRID: Mapping progress and performance

1,77,699 ckm 5,27,446 MVA 99.85%

>1,500 Transmission lines 278 Substations Availability of transmission
system in FY 2023-24

18 24 32+ years
Operational TBCB projects Under construction Experience in establishment
(13 ISTS; 5 InSTS) ISTS project and O&M of power
transmission systems

ROLE AND RESPONSIBILITY

As Sponsor As Project Manager

Set up the InvIT To enter into a Project Implementation and
Execute Trust Deed Management Agreement to operate, maintain
with Trustee and manage PGInvIT Assets

I mplementation, development, routine
operation and maintenance (O&M) and
preventive maintenance of IPAs along with
providing required tools and plants
Billing and collection, administrative function,
procurement, legal support, regulatory
support and engineering services
Breakdown rectification works
Provide emergency restoration system on
demand, subject to availability

C omply with various regulations and
standards
Ensure a safe and healthy working environment
with socially acceptable practices

Note:
• The roles and responsibility are indicative. Detailed roles
and responsibilities are in accordance with applicable
InvIT Regulations
• There has been no change in the Sponsor and Project
Manager during the period

12 POWERGRID Infrastructure Investment Trust

 CORPORATE OVERVIEW STATUTORY REPORTS FINANCIAL STATEMENTS

INVESTMENT MANAGER TRUSTEE

IDBI TRUSTEESHIP
SERVICES LIMITED (ITSL)
IDBI Trusteeship Services Limited is a trusteeship
company registered as a debenture trustee under the
POWERGRID UNCHAHAR TRANSMISSION Securities and Exchange Board of India (Debenture
LIMITED (PUTL) Trustees) Regulations, 1993. It was established on
PUTL, a wholly-owned subsidiary of POWERGRID has February 14, 2017, and is promoted by IDBI Bank,
been engaged in the power transmission business since Life Insurance Corporation and General Insurance
FY 2013-14. It owns and operates 106.74 ckm Corporation. It offers trusteeship services to corporates
transmission project implemented under tariff based across diverse industries, domestic and foreign banks
competitive bidding mechanism and has a sound track and financial institutions.
record of operational performance.
Role and responsibility
Role and responsibility To execute Trust Deed with Sponsor
To enter Into Investment Management Agreement Ensuring that business activities and investment
Managing the Trust and the Initial Portfolio Assets policies comply with the provisions of the SEBI
InvIT Regulations, including the distribution of
Setting strategic direction, including in relation to
dividends and voting
future acquisitions, divestment, or enhancement
of assets Appointing Investment Manager and Project
Manager in accordance with the SEBI InvIT
Coordinating with Trustee for various operations
Regulations and applicable law

Conducting business efficiently in the best
Monitoring the activities of Investment Manager
interest of the Unitholders
(in terms of the Investment Management
Maintaining proper books of accounts, documents Agreement) and Project Manager (in terms of
and records and ensuring audits the Project Implementation and Management
Agreement)
 
Provide SEBI and stock exchanges, such
Note
information as sought by them
• There has been no change in the Investment Manager
during the period
• There has been no erosion in the networth of the Investment Note
Manager during the period
• There has been no change in the Trustee during the period

The roles and responsibility are indicative. Detailed role and responsibilities are in accordance with applicable InvIT Regulations

Annual Report 2023-24 13

Growth enablers

Designed to facilitate long-term

success and continuous value delivery
STRONG PROMOTER
BACKING

Our sponsor and project manager, POWERGRID, brings over 32 years of extensive expertise in
power transmission and has strong credentials in the TBCB mechanism, which provides us with
a significant competitive edge. Awarded the prestigious Maharatna status, POWERGRID enjoys
strategic and operational flexibility along with enhanced financial autonomy in investment
32+ years
of expertise brought
decisions. This status is critical as it plays a pivotal role in the Government of India’s ambitious
in by POWERGRID
vision to strengthen the nation’s power sector.
Benefit to PGInvIT: By leveraging POWERGRID’s expertise in operation and maintenance
(O&M) of transmission systems, PGInvIT achieves high operational efficiency across our
Initial Portfolio Assets (IPAs). Additionally, POWERGRID’s role as our sponsor underscores its
commitment to our trust. This commitment not only ensures stability and confidence in our
operations but also aligns with our strategic goals to enhance value and ensure steady growth
for our Unitholders.

STEADY CASH
FLOWS

India’s power transmission segment is governed by a robust regulatory framework, which

includes provisions for an availability-based payment structure, minimal counterparty risk, and
a comprehensive payment security mechanism. These regulations ensure that the operational
risks are significantly mitigated, thereby maintaining the integrity and financial stability of the
28+ years
Average remaining
power transmission operations.
life of assets providing
Benefit to PGInvIT: PGInvIT benefits from these favourable regulatory conditions, resulting cash flow visibility
in lower operational risks and sustained healthy cash flows. Each asset within our portfolio is
backed by long-term TSAs that span 35 years, providing extended visibility and stability in our
cash flows. Moreover, these agreements include incentives for maintaining availability levels
above targeted thresholds, which not only encourages optimal operational performance but
also enhances the quantum of cash flows. This regulatory environment and structured incentive
system enhances our ability to deliver consistent and attractive returns to our Unitholders.

ROBUST
FINANCIALS

We maintain a robust financial position, as is evident in our balance sheet. Our low leverage

0.26%
provides significant flexibility, allowing us to pursue a debt-funded acquisition and growth
strategy without compromising the interests of our Unitholders. Furthermore, a high credit
rating, coupled with strong liquidity, enables us to secure funding at competitive interest rates. Net Debt to AUM as on
Benefit to PGInvIT: This financial advantage not only aids in our strategic expansion but March 31, 2024
also ensures that we can capitalise on investment opportunities efficiently while maintaining

AAA
financial health and delivering consistent returns to our investors.

Credit rating from ICRA,

CARE and CRISIL

14 POWERGRID Infrastructure Investment Trust

 CORPORATE OVERVIEW STATUTORY REPORTS FINANCIAL STATEMENTS

GEARED TO CAPITALISE
ON OPPORTUNITIES

The Government of India has encouraged state governments to monetise their state
transmission assets to fund their respective infrastructure investments. Further, the ambitious
National Monetisation Pipeline is designed to unlock the value of public assets through `2.95 lakh crore
their monetisation to stimulate investment in the infrastructure sector. Under this initiative, Investment up to
our Sponsor, POWERGRID, has set specific annual targets for asset monetisation and has FY 2028-29 in Power
consistently achieved them. Infrastructure Investment Trusts (InvITs) like ours are recognised Transmission
as a preferred mode of monetisation due to their structure and market presence. (presently under planning/
Benefit to PGInvIT: As a ready vehicle for asset monetisation, PGInvIT offers a preferred route bidding/approval/
construction as per
for various entities looking for efficient and reliable ways to monetise assets, owing to our
CTU Rolling Plan 2028-29)
short turnaround times and established investor base. The continued growth of the power
transmission sector is expected to enhance the pipeline of available assets, which aligns
perfectly with our acquisition-led growth strategy.

SUCCESSFUL TRACK
RECORD

Our Project Manager has successfully leveraged its expertise to implement best-in-class
operations and maintenance (O&M) and safety practices across all our Initial Portfolio
Assets (IPAs). 98%+
Benefit to PGInvIT: The adoption of operational best practices has led to our portfolio assets Availability across
consistently operating above the targeted availability threshold of 98%, which not only secures all SPVs since their
steady revenues but also qualifies us for additional incentives. Moreover, since all our assets commercial operation
are within the regulated power transmission sector, they are characterised by low operating
risks and minimal O&M expenditure.

PROFICIENT INVESTMENT
MANAGER

Our Investment Manager, POWERGRID Unchahar Transmission Limited (PUTL), possesses

extensive management and operational experience in power transmission, bringing a wealth
of knowledge and expertise to our operations.
27+ years
Benefit to PGInvIT: PUTL’s professional expertise empowers PGInvIT to make prudent Average experience
investment decisions and manage our assets efficiently. They implement a robust corporate
governance framework, which includes comprehensive policies for related-party transactions,
risk management, distributions, and borrowings. These practices are vital for safeguarding the
interests of the Trust and its unitholders, ensuring that operations are conducted transparently
and ethically.

Annual Report 2023-24 15

Board of Directors

Guiding our vision

Abhay Choudhary
Non-Executive (Non-independent) Chairman
He is an electrical engineering graduate from NIT Durgapur and holds a Post Graduate
Diploma in Management from IMT Ghaziabad. He is currently the Director (Projects) in
POWERGRID. In his earlier roles, he was the Executive Director (Commercial & Regulatory
Cell) along with charge of CMD Coordination Cell and the Executive Director of the
North-Eastern Region in POWERGRID. He has 37 years of experience in power sector
and has worked in EHV Sub Stations and Transmission lines, both as an Operation &
Maintenance executive and a construction engineer. He also had a stint with NTPC for
about six years.

Purshottam Agarwal
Non-Executive, (Non-Independent) Director
He holds the commerce degree from Ranchi University, a qualified chartered accountant
and a member of the Institute of Chartered Accountants of India. He has over 30 years of
experience in finance and accounts, including corporate accounts, budgeting, financial
concurrence, fund raising from capital markets and enterprise resource planning
systems. He is currently the Executive Director (Finance) in POWERGRID. Prior to this,
he was the Chief Executive Officer of PUTL, the Investment Manager to PGInvIT and
has been instrumental in setting up PGInvIT, the first InvIT by a Government entity.

Ram Naresh Tiwari

Independent Director
He has a dual Master’s Degree in History from Bundelkhand University, Jhansi and
Journalism from Barkatullah University, Bhopal. He is an agriculturist by profession.
His area of interest includes research, development and implementation of technology
adoption in the area of agriculture, mixed farming, business cooperative activities,
social & agricultural welfare management, etc.

Late Onkarappa KN
Independent Director
(cessation w.e.f. December 13, 2023, due to demise)

16 POWERGRID Infrastructure Investment Trust

 CORPORATE OVERVIEW STATUTORY REPORTS FINANCIAL STATEMENTS

Key Personnel

Shaping our excellence

A Sensarma
Chief Executive Officer (w.e.f. February 1, 2024)
He is an Electrical engineering graduate from the Indian Institute of Engineering Science and Technology,
Shibpur, West Bengal (erstwhile Bengal Engineering College, Shibpur). He carries more than 33 years of
experience in the areas of asset management of power transmission sector including Grid management
at National Grid Level under the Grid Controller of India. He also had a stint with NHPC for more than two
years. Prior to his appointment as Chief Executive Officer of POWERGRID Unchahar Transmission Limited,
Shri Arindam Sensarma has contributed towards formulation of various SOPs, framework, guidelines at
newly formed POWERGRID Energy Services Limited (a wholly owned subsidiary of POWERGRID) for effective
management of operational assets of TBCB SPVs of POWERGRID.

Amit Garg
Chief Financial Officer
He has over 27 years of experience in corporate accounts, corporate banking, investment appraisals, financial
concurrence, formulation of capital budgets, resource mobilisation, tariff-based bidding and enterprise
resource planning. He has been associated with PGInvIT since inception.
He is B. Com from Delhi University and has post graduate diploma in business management from the
Institute of Integrated Learning in Management, New Delhi.

Anjana Luthra
Company Secretary & Compliance Officer
She has over 22 years of experience in corporate secretarial and legal functions including statutory
compliances, formation of new ventures, corporate governance, mergers and takeovers, regulatory liaising,
financial planning and funds management, structuring of commercial contracts, loan agreements and other
transaction specific agreements, intellectual property rights and litigation. She has been associated with
PGInvIT since inception.
She has a B. Com (honours) degree and a Bachelor of Laws degree from Delhi University and is also qualified
company secretary and a member of the Institute of Company Secretaries of India.

Shri Sanjay Sharma ceased to be Chief Executive Officer w.e.f. January 31, 2024
Shri D. Lucius ceased to be Key Personnel w.e.f. December 11, 2023

Annual Report 2023-24 17

 ur Excepti nal
Assets P rtf li
19 Overview of Initial Portfolio Asset
20 Vizag Transmission Limited
21 POWERGRID Kala Amb Transmission
Limited
22 POWERGRID Parli Transmission
Limited
23 POWERGRID Warora Transmission
Limited
24 POWERGRID Jabalpur Transmission
Limited
 CORPORATE OVERVIEW STATUTORY REPORTS FINANCIAL STATEMENTS

Overview of Initial Portfolio Assets

Our portfolio comprises five TBCB-based power transmission projects acquired from
our Sponsor, POWERGRID. These assets are strategically located across five demand and
supply-centric states of India and are either grid-strengthening links, generation-linked
assets, and assets linked with inter-regional power flow.

Karcham Wangtoo

Kala Amb PKATL

Abdullapur

Jabalpur
PJTL
NTPC Vindhyachal
Gadarwara STPS
PWTL
Wardha
Warora
Parli (PG)
PPTL Srikakulam
Solapur VTL

Vemagiri
Parli (New)
Map not to scale.
For illustrative purposes only
Khammam

Nagarjuna Sagar
765/400 kV Substation
400/220 kV Substation
765 kV D/C line
400 kV D/C line

SNAPSHOT OF OUR ASSETS

SPV Vizag POWERGRID Kala POWERGRID Parli POWERGRID POWERGRID
Transmission Amb Transmission Transmission Warora Jabalpur
Limited Limited Limited Transmission Transmission
Limited Limited
Location Andhra Pradesh Himachal Pradesh Maharashtra Madhya Pradesh Madhya Pradesh
and Telangana and Maharashtra
Line Length (cKm) 956.84 2.47 966.12 1,028.11 745.05
Transformation capacity (MVA) - 630 3,000 3,000 -
Remaining TSA Life (years)# 27.83 28.28 29.18 29.28 29.75
Gross Block (` million) 13,097.79 3,635.65 19,290.90 23,483.19 16,407.50
FY 2023-24 Revenues* 2,193.46 695.89 3,359.32 3,750.40 2,654.31
(` million)
% contribution to 17.33% 5.50% 26.55% 29.64% 20.98%
FY 2023-24 revenues
Shareholding acquired 100% 74% 74% 74% 74%
Lock-in expiry Jan 2022 July 2022 June 2023 July 2023 January 2024
(for balance 26%
equity shareholding)
*Revenue excludes other income
# as on March 31, 2024
Annual Report 2023-24 19
 Vizag Transmission Limited

PROJECT DETAILS PROJECT MILESTONES

Transmission system for system strengthening in the Incorporation date:

Southern Region of India for import of power from the November 30, 2011
Eastern Region of India. It has a total transmission line TSA date:
length of 956.84 ckm including: May 14, 2013
765 kV D/C transmission line of 668 ckm from Srikakulam Transmission licence issue date:
to Vemagiri in Andhra Pradesh (AP) January 8, 2014
400 kV D/C transmission line of 288.84 ckm from Commercial operation date:

Khammam (Telangana) to Nagarjuna Sagar (AP) February 1, 2017

Availability
956.84 ckm
Length of 100.00% 99.97% 99.99% 99.99% 100.00% 99.99% 99.96% 99.98%
transmission lines Target
Availability
(98%)
27.83
Remaining TSA tenure
as on March 31, 2024

99.98%
Availability in FY17* FY18 FY19 FY20 FY21 FY22 FY23 FY24
FY 2023-24
*February-March 2017

20 POWERGRID Infrastructure Investment Trust

 CORPORATE OVERVIEW STATUTORY REPORTS FINANCIAL STATEMENTS

POWERGRID Kala Amb

Transmission Limited
PROJECT DETAILS PROJECT MILESTONES DEVELOPMENTS IN RTM
Transmission system for Northern Region System I ncorporation date: PROJECT
Strengthening Scheme NRSS- XXXI (Part A). July 29, 2013 Implementation of one no.
The asset includes: 125 MVAr, 420kV Bus Reactor
TSA date:

 .47 ckm of transmission line comprising LILO
2 at Kala Amb substation by
January 2, 2014
of 400 kV D/C Karcham Wangtoo-Abdullapur PKATL was allotted by Ministry
 ransmission licence
T of Power, GoI under Regulated
transmission line at Kala Amb (Himachal Pradesh)
issue date: Tariff Mechanism and Hon’ble
substation (on M/C towers)
September 4, 2014 CERC has granted a separate

630 MVA, 400/220 kV GIS substation
 ommercial
C transmission licence for
at Kala Amb
operation date: same. The asset was put into

40% series compensation on 400 kV D/C line from commercial operation on
July 12, 2017
Karcham Wangtoo to Kala Amb February 5, 2024.

2.47 ckm
Length of Availability
transmission lines
99.95% 98.10% 99.90% 100.00% 99.12% 99.99% 100.00%

630 MVA Target

Availability
Substation capacity
(98%)

28.28
Remaining TSA tenure
as on March 31, 2024

100% FY18* FY19 FY20 FY21 FY22 FY23 FY24#

Availability in *July 2017-March 2018

FY 2023-24 #
Provisional under approval by RPC

Annual Report 2023-24 21

 POWERGRID Parli
Transmission Limited
PROJECT DETAILS PROJECT MILESTONES IMPLEMENTATION OF
Transmission system associated with Gadarwara STPS 
Incorporation date: RTM PROJECT
(2x800 MW) of NTPC (Part-B). The asset has 966.12 ckm July 30, 2014 Implementation of 400 kV line
length of transmission lines and 3,000 MVA 765/400 kV 
TSA date: bay at 765/400 kV Parli (New) S/s
substation in Parli. The lines include: February 9, 2015 for RE Interconnection by PPTL
is scheduled for completion by
765 kV D/C line of 693.70 ckm from Warora, Transmission licence
issue date: December 31, 2025. CTUIL has
Maharashtra to Parli, Maharashtra
July 10, 2015 approved the implementation
765 kV D/C line of 235.92 ckm from Parli,
of the project by PPTL vide OM
Maharashtra to Solapur, Maharashtra 
Commercial
dated January 2, 2024 under
400 kV D/C line of 36.50 ckm from Parli (New), operation date:
Regulated Tariff Mechanism.
Maharashtra to Parli (PG), Maharashtra June 4, 2018
Application for separate
Transmission Licence for the
same has been filed in CERC.

966.12 ckm
Length of Availability
transmission lines
99.77% 99.92% 99.93% 99.96% 99.84% 99.83%

3,000 MVA Target

Availability
Substation capacity
(98%)

29.18
Remaining TSA tenure
as on March 31, 2024

99.83%
FY19* FY20 FY21 FY22 FY23 FY24#

*June 2018-March 2019

Availability in #
Provisional under approval by RPC
FY 2023-24

22 POWERGRID Infrastructure Investment Trust

 CORPORATE OVERVIEW STATUTORY REPORTS FINANCIAL STATEMENTS

POWERGRID Warora
Transmission Limited
PROJECT DETAILS Two 400 kV D/C transmission lines comprising
Transmission system associated with Gadarwara STPS LILO of both circuits of 400 kV D/C Wardha-Parli
(2x800 MW) of NTPC (Part-A). The asset has 1,028.11 (PG) line aggregating 196.29 ckm from LILO point
ckm of transmission lines and 765/400 kV substation of 400 kV D/C Wardha-Parli transmission line to
with 3,000 MVA capacity in Warora, Maharashtra. Warora pooling station
The lines include:
PROJECT MILESTONES
765 kV D/C transmission line of 204.47 ckm
from Gadarwara to Jabalpur in Madhya Pradesh Incorporation date:
August 5, 2014
(including interim arrangement)
765 kV D/C transmission line of 627.35 ckm from TSA date:
Gadarwara, Madhya Pradesh to Warora, Maharashtra February 9, 2015
 ransmission licence issue date:
T
August 5, 2015
Commercial operation date:
July 10, 2018
1,028.11 ckm
Length of transmission Availability
lines
99.84% 99.81% 99.87% 99.87% 99.85% 99.89%

3,000 MVA Target

Availability
Substation capacity (98%)

29.28
Remaining TSA tenure
as on March 31, 2024

99.89% FY19* FY20 FY21 FY22 FY23 FY24#

Availability in *July 2018-March 2019

FY 2023-24 #
Provisional under approval by RPC

Annual Report 2023-24 23

 POWERGRID Jabalpur
Transmission Limited
PROJECT DETAILS PROJECT MILESTONES
Transmission system strengthening associated Incorporation date:
with Vindhyachal-V. The asset has 765 kV August 14, 2014
D/C Transmission line of 745.05 ckm from TSA date:
Vindhyachal to Jabalpur in Madhya Pradesh. November 19, 2014
Transmission licence issue date:
June 15, 2015
Commercial operation date:
January 1, 2019

Availability
745.05 ckm 99.17% 99.77% 99.59% 99.97% 99.92% 99.94%
Length of
transmission lines Target
Availability
(98%)
29.75
Remaining TSA tenure
as on March 31, 2024

99.94% FY19* FY20 FY21 FY22 FY23 FY24#

Availability in
*January 2019-March 2019
FY 2023-24 #
Provisional under approval by RPC

24 POWERGRID Infrastructure Investment Trust

Evaluating ur
Perf rmance
f r FY 2023-24
26 CEO’s Review
27 Financial performance
28 Operational performance
CEO’s Review

Dear Unitholders,
I am honoured to present the performance of PGInvIT for
FY 2023-24.
We have successfully met our operational and financial targets,
driven by the quality of our assets and the expertise of our
Project Manager. During FY 2023-24, all our SPVs, individually and
collectively, achieved availability above 99.75%, subject to RPC
approvals, thus becoming eligible for the maximum incentive,.
Furthermore, the cumulative distribution of ` 34.50 per unit since
our listing to distribution declared on May 22, 2024 translates to a
return of 34.50% on the offer price, reaffirming our commitment to
delivering substantial value to our Unitholders.

Key highlights for FY 2023-24 Debt and credit rating years and the planned investments for
We recorded a consolidated total income Our consolidated external borrowings future pose a significant opportunity
of ` 13,027.22 million and EBITDA as of March 31, 2024, stood at ` 5,698.29 for PGInvIT. We are actively exploring
of ` 12,033.98 million in FY 2023-24. million, following a principal repayment opportunities from these investments, in
The Net Distributable Cash Flows of ` 28.78 million during the year. addition to capitalizing on opportunities
(NDCFs) upstreamed from the SPVs Despite a rise in interest rates over the arising from asset monetization
to the Trust and from the Trust to year, our average cost of funds was initiatives by State Governments or
Unitholders exceeded the minimum 90% maintained at 8.17%. Our Net Debt Sponsor, if any. These efforts are aimed
stipulation set by the InvIT Regulations to Asset Under Management (AUM) at enhancing our portfolio and
ratio is comfortably placed at 0.26%, reinforcing our commitment to growth
and our Distribution Policy. The total
providing us considerable opportunities and value creation for our unitholders.
cash distribution to unitholders was
` 10,919.99 million, translating to an to pursue a debt-funded growth strategy.
Our robust balance sheet and solid
Acknowledgment
aggregate distribution of ` 12 per unit
spread over four quarters. fundamentals have enabled the Trust to We extend our heartfelt gratitude to our
consistently achieve the highest credit Unitholders for their trust in PGInvIT, and
Our operational performance has been rating of AAA, with a stable outlook from we remain committed to creating lasting
equally impressive. The expertise of our rating agencies. value. Our appreciation also goes to our
Project Manager has ensured efficient, Trustee for their support, and to our
safe, and accident-free operations. Pursuing growth opportunities Project Manager and the dedicated team
Each of our five Special Purpose Vehicles With significant headroom for at PGInvIT and SPVs for their continuous
(SPVs) surpassed the target availability of debt-funded acquisitions and our efforts. With your ongoing trust and
98%, achieving an average availability of position as a ready investment vehicle support, we are confident of a promising
over 99.75%, thereby becoming eligible that enjoys the confidence of a diverse future ahead.
for maximum incentive, as stated above. pool of investors, PGInvIT holds distinct
Our Project Manager continues to play Warm Regards,
competitive advantage.
a crucial role in driving our exceptional
A Sensarma
performance. We would also like to During FY 2024-25, we anticipate
update on the implementation of Bus concluding the acquisition of the Chief Executive Officer
Reactor at Kala Amb substation by PKATL remaining 26% equity shareholding
under Regulated Tariff Mechanism. in four of our SPVs from our Sponsor.
The project has been successfully The massive investment in power
commissioned on February 05, 2024. transmission sector over the last few

26 POWERGRID Infrastructure Investment Trust

 CORPORATE OVERVIEW STATUTORY REPORTS FINANCIAL STATEMENTS

Financial performance

Consistent, Stable and

Long-Term Performance
Our asset management expertise is complemented by the financial acumen and
prudent management practices of our Investment Manager, ensuring sustained
excellence and fulfilment of our commitments to Unitholders. In the fiscal year 2023-24,
we demonstrated robust financial performance, which, coupled with our solid balance
sheet and strong fundamentals, allowed us to maintain the highest credit ratings.

FINANCIAL PERFORMANCE MANAGING LIABILITY PRUDENTLY

Total income
(` million)
Net distributable cash
flows (` million) 40
Receivable days
12,434.13 13,152.91 13,027.22 9,629.45 11,026.76 10,977.63 (47 days in FY 2022-23)

` 5,698.29 million
Total debt
(` 5,727.07 million in
FY 2022-23)

0.26%
Net debt/AUM
FY 2021-22# FY 2022-23 FY 2023-24 FY 2021-22# FY 2022-23 FY 2023-24 (0.91% in FY 2022-23)

EBITDA EBITDA STABLE AND CONSISTENT

(` million) (%) DISTRIBUTIONS

11,653.53 12,263.68 12,033.98 93.72 93.24 92.38

`31,394.97 million*
Total distribution

11*
Consecutive quarters
of distributions

FY 2021-22# FY 2022-23 FY 2023-24 FY 2021-22# FY 2022-23 FY 2023-24

*Since IPO Including distribution declared on May 22, 2024

# May 13, 2021 to March 31, 2022

Annual Report 2023-24 27

Operational performance

Exemplary Performance,
Demonstrating Excellence
Our Project Manager is geared up to consistently maintain the high standards of availability
and reliability of its transmission system through use of latest state-of-the-art operation
and maintenance (O&M) practices. Maintenance activities are planned well in advance and
an ‘Annual Maintenance Plan’ is chalked out for every asset through live line or shutdown
maintenance, as per technical feasibility. The proactive approach of the O&M team in
managing the maintenance of the transmission assets has minimised the tripping of lines
especially due to equipment failure, human error and other natural causes.

OPERATIONAL PERFORMANCE FY 2023-24

Operations & Safety training AI/ML Based
maintenance and drills applications

The assets are remotely monitored and controlled from Remote

Control Centres enabling real-time visualisation of Substation
assets, Safe & Secured operations with minimum human
intervention and interlocking applicability at multiple stages,
faster restoration in case of tripping through online diagnostics
of real-time parameters & disturbance analysis leading to
avoidance of consequential damage to the assets.

The in-house application of the Project Manager, PGDARPAN

(POWERGRID Digital Application for Routine Patrolling &
Assessment of Network) is designed to aid our operations &
management team to monitor and assess our transmission line
at anytime from anywhere, thus enabling our asset managers to
oversee and take swift remedial decisions.

The health of our transformers and reactors against various risks

associated is being monitored on a real-time basis through Asset
Health Indexing Software PALMS 2.0. The software facilitates
more sophisticated diagnosis through interpretation of results
vis-à-vis various international standards. By incorporating
Circuit Breaker details also into the PALMS system, our Project
Manager has have established a streamlined approach to
monitor and track the health of our Circuit Breakers, enhancing
our operational efficiency and maintenance processes.
Drone-based patrolling of transmission lines with specialised
sensors (Thermal & Video) for aerial inspection including AI/ML
based analytics, capable of operating in diverse and inaccessible
topographies is being taken up by our Project Manager – a
significant step forward in enhancing efficiency, accuracy and
safety of aerial inspections, and heralds a new era of data-driven
decision-making.
Thermo-vision Camera, Corona Camera, high resolution video
and digital camera are also being used to identify the defects.

28 POWERGRID Infrastructure Investment Trust

CORPORATE OVERVIEW STATUTORY REPORTS FINANCIAL STATEMENTS

Considering the nature of our operations,

we are aware that our workers are more
prone to the risk of injuries associated with
construction, operation, and maintenance
of machinery and equipment of substations
and transmission lines. To mitigate potential
safety hazards for the working personnel,
safety rules & regulations are extended to
the erection contractors through the Safety
Pact. Quality assessment of health and safety
conditions provided by the contractors to the
workmen are on regular basis. We religiously
comply with all the regulatory requirements
pertaining to safety to ensure highest safety
standards.

Annual Report 2023-24 29

 To monitor the real time condition of equipment and infrastructure, review of work
progress and critical issues requiring interventions at appropriate level, site visits have
been carried out by PUTL team on regular basis.

Valuable suggestions and Feedback were provided to the site team for betterment and
improvement of the system.

Visit of CEO (PUTL) at 400/220 kV PKATL Kala Amb SS

Newly commissioned 125 MVAR, 420 kV

Bus Reactor at Kala Amb Substation of PKATL

30 POWERGRID Infrastructure Investment Trust

CORPORATE OVERVIEW STATUTORY REPORTS FINANCIAL STATEMENTS

Visit of CEO(PUTL) at 765/400 kV PWTL Warora SS

Glimpses of few activities related to safety at site

Annual Report 2023-24 31

Navigating
ur Strategic
Landscape
33 Opportunity landscape
34 Competitive positioning
36 Strategic positioning
 CORPORATE OVERVIEW STATUTORY REPORTS FINANCIAL STATEMENTS

Opportunity landscape

Expanding opportunities in the

Indian power industry
The power sector in India is experiencing rapid growth, primarily driven by the escalating
demand for electricity over the years. This surge in demand, together with a focussed
effort to expand renewable energy capacity, highlights the need for developing robust
transmission infrastructure. These developments are reshaping the landscape of the
power sector, bolstered by sustainable energy supply, grid reliability, and continued
infrastructure development.

POWER SUPPLY SCENARIO POWER TRANSMISSION

CAPACITY ADDITIONS
240 GW 313 GW
Peak Power demand in
FY 2023-24
Expected power
demand by
1,34, 540 MW
Inter-regional transmission
(as on January 2024) FY 2028-29 capacity by 2029

430 GW 729 GW
Installed capacity in Expected installed
FY 2023-24 capacity by
(as on January 2024) FY 2028-29
(Source: ISTS Rolling Plan 2028-29 of CTUIL) (Source: ISTS Rolling Plan 2028-29 of CTUIL)

GROWTH ENABLERS OF INDIA’S POWER

TRANSMISSION SECTOR

Growing energy demand Renewable energy expansion Cross-border linkages

There is a continuous strong One of the primary drivers for the A strengthened power
growth in demand for electricity expansion of the transmission network transmission network not
in the country. India is expected is the increasing capacity of renewable only supports domestic
to witness a substantial increase energy. This expansion facilitates the demand but also paves the
of over 70% in its electricity evacuation of power from renewable way for cross-border energy
generation over the next decade. energy plants and addresses the trade. By enhancing the
The surge in electricity generation intermittency of renewable sources. transmission infrastructure,
will be propelled by robust A significant part of this development India could potentially export
demand, population growth, is occurring through the Green Energy surplus renewable energy to
urbanisation, and increased needs Corridors (GEC) project. With the neighbouring countries or
in construction, manufacturing, government’s ambitious goal to establish import power during times
and service sectors. 500 GW of renewable energy capacity and of shortage. This capability
meet 50% of its energy requirements from fosters regional energy
renewables by 2030, the transmission cooperation and contributes to
infrastructure will need considerable a more resilient and sustainable
expansion and enhancement. energy sector.

Annual Report 2023-24 33

Competitive positioning

Strategies for a Greener Tomorrow

Enhancing operational efficiency, optimising assets, and driving value-accretive
growth through strategic acquisitions are our key strategic priorities. We are diligently
implementing these strategies within a solid execution framework, supported by
stringent corporate governance practices and robust balance sheet. Our aim is to
provide consistent, stable, and transparent returns to our unitholders.

OUR STRATEGIC PRIORITIES

STRATEGIC
PRIORITY 1
Focussed business model with productive IMPACT
and operational efficiency
Improved operational efficiency
Own, operate and maintain power transmission assets and performance
efficiently leveraging the expertise of our Project
Manager and Investment Manager
Ensure sustained transmission availability above target Increased incentive revenues,
levels and optimise operating costs by deploying revenue generation and life
prudent asset management practices. These include of assets
routine and breakdown maintenance, use of latest
techniques and technologies and having in place
Emergency Restoration System to lower downtime Optimised operating costs and
capital expenditure efficiency

I mplementing best practices in operation &
management, corporate governance, and environment,
health and safety (EHS) practices
Ensure health, well-being and skill development of
people to drive their productivity

34 POWERGRID Infrastructure Investment Trust

CORPORATE OVERVIEW STATUTORY REPORTS FINANCIAL STATEMENTS

STRATEGIC
PRIORITY 2
Driving value accretive growth through acquisitions IMPACT
and non-transmission revenues

Strengthen our position as the preferred asset Increased long-term, regular and
monetisation platform capitalising on the strength of predictable cash flows
our Project Manager and our strong balance sheet
Pursue acquisition opportunities driven by sustained Enhanced returns to unitholders
investments in power transmission, along with potential
asset monetisation from the Sponsor, under the targets
assigned by the NMP and the States
Diversify revenue sources to non-transmission sources
by leasing optical ground wire and transmission towers

STRATEGIC
PRIORITY 3
Optimisation of transmission assets through an IMPACT
efficient capital structure

M aintain an optimal and diverse portfolio of Optimised cost of capital
transmission assets
Deploy appropriate financing policies and diversify
sources of financing to strengthen capital structure Enhanced balance sheet strength
efficiency and minimise cost of capital
Identify both private and public markets to raise funds
at competitive rates

Annual Report 2023-24 35

Strategic positioning

Geared for growth

Our operational domain, power transmission, is experiencing consistent decade-long
growth and is poised to undergo substantial asset expansions by 2028-29 and beyond,
which we anticipate will present fresh avenues for PGInvIT. Policy measures introduced
by the Government will facilitate accelerated asset recycling within the power
transmission sector.

Our minimal debt exposure and status as an appealing investment entity, established
by the Government of India alongside the nation’s leading power transmission company
serving as Sponsor and Project Manager, provide us a natural competitive edge to own,
operate, maintain and invest in transmission assets in the foreseeable future.

WELL-PLACED TO CAPITALISE ON the InvIT Regulations’ threshold of 49% leverage (which

OPPORTUNITIES can extend to 70% under certain conditions). Our Net
Ready investment vehicle debt to Asset Under Management (AUM) ratio stood at
a minimal 0.26%. This financial standing provides us with
We operate as a ready investment platform for asset
considerable room to pursue debt-funded acquisitions
monetisation, enabling shorter turnaround time, an
established pool of investors, and an efficient financial at competitive costs, further enhancing our growth and
structure. These advantages position us to capitalise on value-creation potential.
opportunities effectively, ensuring both growth and
profitability. Confidence of the investors
PGInvIT has successfully garnered the trust of a diverse
Robust balance sheet position range of investors, with a significant number of
We maintain a strong financial position with low leverage institutional investors including foreign investors, global
and clear visibility of cash flows. As of March 31, 2024, pension funds, domestic pension funds, and insurance
our aggregate consolidated borrowings and deferred companies. These substantial investments, coupled with
payments, net of cash and cash equivalents for the a growing number of individual investors, demonstrate
Trust and our Special Purpose Vehicles (SPVs), stood the strong confidence of the investor community
at ₹ 206.31 million. This amount is significantly below in PGInvIT.

36 POWERGRID Infrastructure Investment Trust

CORPORATE OVERVIEW STATUTORY REPORTS FINANCIAL STATEMENTS

OUTLOOK

Acquire the residual 26% equity shareholding in Capitalise on sponsor’s monetisation target
four SPVs Our Sponsor has a robust pipeline of operational and
PKATL completed its 5-year lock-in period in July 2022, under-construction TBCB SPVs and has been assigned
and the lock-in periods for the remaining three assets – annual monetisation targets for the fiscal years 2022-25
PPTL, PWTL, and PJTL – have expired during FY 2023-24. under the National Monetisation Pipeline. Although the
We plan to initiate the process to acquire the remaining Sponsor utilised monetisation methods other than
26% shareholding in these assets. This process will be InvITs to raise funds during FY 2022-23 and 2023-24
consultative, involving close coordination with our as well, our unique competitive strengths position us
Sponsor, and we aim to conclude the acquisitions within advantageously for future monetisation opportunities
the year. if and when it emerges.

Pursue acquisition opportunities All assets proposed for acquisition will be evaluated
We are committed to pursuing viable acquisition for their suitability to PGInvIT on the basis of the
opportunities for operational power transmission assets. operational history in accordance with InvIT Regulations,
However, the availability of operational assets from compliances with InvIT Regulations and statutory
private developers is currently limited. The adoption requirements, PGInvIT’s governance framework and
of the Government of India’s guidelines for asset keeping in mind the overall interest of unitholders.
monetisation by state entities is expected to be a gradual
process. This is primarily due to the novelty of the
proposed mechanisms and the complex steps involved
in implementing such strategies.

Annual Report 2023-24 37

ESG verview
39 Environment PGInvIT remains committed to responsible operations by
integrating Environmental, Social, and Governance (ESG)
40 Social principles. Leveraging our Project Manager’s expertise,
we proactively implement initiatives to reduce our
42 Governance carbon emissions and positively impact the environment.
Our meaningful interventions not only enhance the lives
of citizens and support economic activities but also ensure
community welfare development and value-creation for all
stakeholders.
 CORPORATE OVERVIEW STATUTORY REPORTS FINANCIAL STATEMENTS

Environment

Operating to leave a positive impact

Power transmission operations do not involve chemical processes or generate air
pollutants, except for the occasional use of Diesel Generators in substations for reliability
purposes. In light of the challenges posed by climate change, PGInvIT is committed to
responsible operations. Leveraging the expertise and experience of our Project Manager,
we are proactively implementing various initiatives to reduce our carbon footprint and
positively impact the environment.

We primarily use water for domestic, office, horticulture, firefighting systems, and landscaping
purposes. To reduce our reliance on fresh water, we have implemented rainwater harvesting
systems and interconnected open wells in PWTL Warora SS to form a water grid management
system. These measures improve groundwater levels and advance our goal of achieving
water-positive operations. We plan to install similar structures at our other locations to further
enhance our water conservation efforts.
Digital flow meters with telemetry have been installed at 100% of our sites for tracking
groundwater consumption.

As a preventive measure, highly sensitive SF6

leakage detectors are installed along with provision
of alarm system in all our major equipment to
monitor potential leakage points. We have internally
set a limit of 0.5% on SF6 leakages.
Additionally, we continuously maintain tight
inventory control of SF6 gas and provide
ongoing training to our staff on handling SF6
gas, detecting leaks, and understanding its
environmental impacts.

Although the DG sets at our substations are Our PKATL Kala Amb SS is
primarily run for short durations for testing surrounded by hills on three sides.
purposes, they are subject to systematic and regular The exposed surfaces of these
maintenance as part of our Preventive Maintenance hills are gradually eroding due
System. This is despite having two very reliable and to the effects of wind and water.
stable electricity sources: a dedicated feeder from In our effort to balance operations
DISCOMs and a tertiary power source directly from with environmental stewardship,
the GRID. As a result, emissions from these DG sets we plan to construct gabion walls
are minimal. and undertake stone pitching
for hillside protection. This will
help us achieve both operational
excellence and environmental
Positive behavioural changes towards the protection.
environment and energy conservation are also
We continuously strive to make
encouraged through various measures such as
a positive environmental impact
training and sensitisation via posters, slogans,
through monitoring, assessment,
workshops, and more.
and initiatives targeting our key
Regular cleanliness and plantation drives are focus areas.
conducted to raise awareness about maintaining
a clean and green environment. Additionally, local
get-togethers and events are organised to support
the cause.

Annual Report 2023-24 39

Social

Stepping up for our stakeholders

We recognise the critical importance of prioritising individual welfare, the health
of our planet, and the long-term sustainability of our actions. Our mission is to
empower underprivileged communities, placing them at the heart of all our initiatives.
Our dedication to community engagement drives our efforts to create lasting,
sustainable change.

Our Project Manager has consistently been recognised as one of the best workplaces
and a leader in corporate social responsibility, earning global accolades for its
contributions. This leadership plays a crucial role in enhancing our performance across
various social parameters. Since 2007, our Project Manager has been certified with the
Social Accountability standard SA 8000 by BSI, reflecting our commitment to exemplary
human resource and labour management policies and practices.

We are committed to ensuring the superior performance of our SPVs and the Trust through a highly skilled and empowered
workforce. We continuously provide our team with training in functional, behavioural, and skill enhancement areas.

Our SPVs are committed to strengthening our relationships With occupational health and safety as our priority, we
with communities and engaging in community development provide regular training to our teams to ensure a safe working
to transform lives through various upliftment programmes environment. We conduct periodic safety pep talks and mock
and initiatives. We organised events and competitions in local drills, including fire and snake bite simulations. Basic health
areas to foster stronger engagement and bonding, raising amenities and first aid supplies are available for all team
awareness about environmental and social responsibilities. members, including contract labourers.

40 POWERGRID Infrastructure Investment Trust

CORPORATE OVERVIEW STATUTORY REPORTS FINANCIAL STATEMENTS

We keep our people motivated by fostering an

encouraging and inclusive environment. We offer
activities such as yoga sessions and health and
motivational talks by eminent speakers. To support
work-life balance, we organise get-togethers,
event celebrations, and walkathons. We are
committed to promoting women’s participation
through inclusive policies.

Annual Report 2023-24 41

Governance

Doing business responsibly

Our operations are governed by robust corporate governance and best practices
implemented by our Investment Manager. Our framework not only adheres to the
regulatory standards but also incorporates additional requirements that exceed those
mandated under the InvIT Regulations. This comprehensive approach ensures high
standards of transparency and accountability, strengthening our operational integrity
and stakeholder trust.

ENSURING ETHICAL OPERATIONS COLLABORATING WITH UNITHOLDERS

We are committed to upholding stringent compliance with Our unitholders including both institutional and individual
InvIT Regulations and other applicable laws. Our governance investors from within and outside the country, are crucial to
structure includes a diversified Board, ensuring a balanced our operations. We are dedicated to maintaining effective
oversight. Our robust corporate governance framework, engagement with them by providing necessary information
includes a Code of Conduct and various policies. Additionally, promptly. This commitment not only helps to strengthen our
we have a system and policy in place for the prevention of relationships but also enables us to identify innovative ways
insider trading, as required by law. to unlock new opportunities.

UNITHOLDER ENGAGEMENT IN FY 2023-24

Key expectations Consistent, stable and visible returns

Wealth creation
Long-term sustainable growth through value-accretive acquisitions
Timely disclosures
Regulatory compliance, ethical practices and transparency

Method of Corporate announcements and media updates

Engagement Investor presentations
Post earning calls
Half yearly report and annual report
Annual unitholders’ meeting
Website and e-mail
Grievance redressal

Focus area Financial and asset performance

Risk management
Environment, Social and Governance practices

Other initiatives Regular messages to update e-mail address and bank details
Enabling online facility for downloading various certificates and statements
Taxation-related related FAQs uploaded on website
Communications for claiming unpaid distributions

42 POWERGRID Infrastructure Investment Trust

Statut ry
Rep rts
44 Management Discussion
and Analysis
49 Mandatory Disclosures
54 Report on Corporate
Governance
Management Discussion and Analysis

INDIAN ECONOMY OVERVIEW decarbonisation and leveraging growing investment and trade
The Indian economy maintained a steady growth trajectory, opportunities.
retaining its status as the world’s fifth-largest economy, despite
challenges posed by higher inflation rates, geopolitical turmoil, Power Sector in India
and a volatile global economic landscape. Moreover, India’s India is the third-largest producer of electricity in the world with
G20 presidency in 2023 has demonstrated its capability to a total installed power capacity of 442 GW as on March 31, 2024.
cater to global needs and provided a platform to address The “Power for All” initiative, a cornerstone of India’s energy
global concerns. agenda, is aimed at ensuring universal access to electricity across
the country. Furthermore, the government’s ambitious initiative
As per the Second Advance Estimates of National Income, Pradhan Mantri Suryodaya Yojana (PMSY) aims to install rooftop
2023-24, India’s GDP growth remained strong at 7.6% in solar power systems in one crore households. This initiative is
FY 2023-24 as against 7% in FY 2022-23, supported by robust poised to revolutionise the residential solar market, enabling
domestic demand, moderate inflation, a stable interest these households to receive up to 300 units of free electricity
rate environment, and strong foreign exchange reserves. each month. Guided by the principles of providing affordable
Furthermore, CPI inflation is on a downward trajectory and and sustainable electricity to all, the Indian power sector is
eased to 4.85% in March 2024. The growth observed in the poised to play a pivotal role in addressing challenges associated
Index of Industrial Production (IIP), Goods & Services Tax (GST) with climate change. It aims to meet India’s international
collections, manufacturing Purchasing Managers’ Index (PMI), commitments concerning energy transition primarily by
and increasing private capital expenditure collectively signifies transitioning to cleaner and renewable energy sources.
strong economic momentum.
The government has implemented various schemes such
According to the IMF, the Indian economy is expected to as Deen Dayal Upadhyaya Gram Jyoti Yojana (DDUGJY) and
advance steadily at 6.8% in FY 2024-25 and 6.5% in FY Integrated Power Development (IPDS) schemes to ensure
2025-26. India’s economic outlook remains positive, buoyed uninterrupted power supply by enhancing the transmission and
by factors such as the demographic dividend, increased capital distribution network. Additionally, the government has rolled
expenditure, proactive government policies, robust consumer out the Pradhan Mantri Sahaj Bijli Har Ghar Yojana (SAUBHAGYA),
demand, and improving rural consumption prospects, due to with the goal of achieving universal household electrification
easing inflation. However, the country’s economic outlook faces by providing electricity connections to all willing un-electrified
potential risks stemming from headwinds from geopolitical households in rural areas and all willing poor households in
tensions, volatility in international financial markets, and urban areas across the country. With an investment of ₹ 1.85
geoeconomic fragmentation. Nevertheless, the Indian lakh crores under these schemes, 18,374 villages have been
economy has withstood recent geopolitical upheavals and electrified, and electricity connections have been provided to
seems well-positioned to navigate forthcoming uncertainties. 2.86 crore households. These initiatives have led to an increase
India is also actively pursuing sustainability goals through in power supply availability in both rural and urban areas

Peak Demand (GW) Energy Requirement (BU)

243 245 295 366 1,626 1,695 2,021 2,474

FY 2023-24 (A) FY 2024-25 (E) FY 2027-28 (E) FY 2031-32 (E) FY 2023-24 (A) FY 2024-25 (E) FY 2027-28 (E) FY 2031-32 (E)

(A - Actual E- Estimated)

44 POWERGRID Infrastructure Investment Trust

 CORPORATE OVERVIEW STATUTORY REPORTS FINANCIAL STATEMENTS

while reducing the gap between energy demand and supply. has remained steadfast in its transition towards renewable
Furthermore, the National Electricity Plan (NEP) serves as a capacity addition and ambitious transition goals articulated by
comprehensive roadmap for India’s power sector development, Prime Minister Modi, in India’s Panchamrit declaration at COP26.
encompassing generation, transmission, and distribution.
The country’s commitment to achieving net zero emission by
India is witnessing a surge in power demand fuelled by robust 2070 and its strong power demand are driving the expansion
GDP growth, thriving industrial activities, and the Indian of renewable energy capacities and the corresponding need for
Meteorological Department’s (IMD) prediction of above-average energy storage. “One Sun, One World, One Grid” aims to create a
temperatures during the summer season. The peak energy global solar grid to harness, share, and optimise renewable energy
demand grew by 12.7% from 215.88 GW in FY 2022-23 to 243.27 across borders. India ranks fourth globally in renewable energy
GW in FY 2023-24, while the peak demand met grew by 13.9% installed capacity (including large hydro). The government
from 210.72 GW in FY 2022-23 to 239.93 GW in FY 2023-24. is actively promoting renewable energy through various
The energy requirement grew by 7.5% in FY 2023-24 and the initiatives such as policies on Production Linked Incentive (PLI)
energy availability increased by 7.8%, resulting in a reduction for PV manufacturing, Green Hydrogen, Inter-State Transmission
in total energy shortfall from 0.5% in FY 2022-23 to 0.2% in System (ISTS) waiver, Renewable Purchase Obligation (RPO)
FY 2023-24. The total electricity generation increased by 7.1% trajectory until FY 2029-30, Green Open Access Rules, and
from 1,621 BU in FY 2022-23 to 1,736 BU in FY 2023-24. granting Infrastructure status to Energy Storage Systems.
These measures aim to bolster renewable energy capacity and
India is set to achieve its short-term and long-term targets contribute to India’s goal of transitioning towards sustainable
under the Panchamrit action plan, like – reaching a non-fossil energy. According to the National Electricity Plan 2023, the share
fuel energy capacity of 500 GW by 2030; fulfilling at least half of of non-fossil fuel energy generation is projected to increase
its energy requirements via renewable energy by 2030; reducing to 57.4% by FY 2026-27 and further to 68.4% by the end of
CO2 emissions by 1 billion tonnes by 2030; reducing carbon FY 2031-32. The total installed renewable energy (RE) capacity
intensity below 45% percent by 2030; and finally pave the way increased to 190.57 GW in FY 2023-24 (as of March 31, 2024),
for achieving a Net-Zero emission target by 2070. The country compared to 172 GW in FY 2022-23.

Renewable Energy Progress

210 FY 2023-24 data is till March 31, 2024
190.57
180 172.00
Installed Capacity (in GW)

156.61
150 140.65
132.72
123.04
120 114.32
101.73
88.70
90 75.51 80.21
57.55 63.91 67.56
60

30

0
2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24

Solar Hydro Wind Small Hydro Bio Power

Transmission Sector in India

The transmission sector is integral to India’s power system new renewable energy (RE) resources. Aligned with the goal of
value chain, bridging the gap between generating stations and achieving 500 GW of non-fossil energy capacity by 2030 and a
demand centres. It encompasses the Inter-State Transmission strong commitment to green energy, the government is actively
System (ISTS) and the Intra-State Transmission System strengthening the transmission network to support the ‘Power
(Intra-STS). The transmission network has been growing at a for All, initiative and integrate renewable sources effectively.
significant pace with the addition of transmission capacity at The integration of renewable energy into the grid is poised to
both inter-state and intra-state levels. In FY 2023-24, a total of catalyse remarkable growth in the transmission sector, elevating
14,203 ckm of transmission lines were added, as against 14,625 it to unprecedented levels.
ckm in FY 2022-23. Furthermore, there was an addition of 70,728
MVA in transformation capacity during FY 2023-24. To accomplish the goals of energy transition and facilitate
the extensive integration of renewable energy, the report of
India is currently undergoing a rapid energy transition to meet the Central Electricity Authority (CEA), “Transmission System
the increasing energy demand in a sustainable and eco-friendly for Integration of over 500 GW RE Capacity by 2030’’ outlines
manner, with a significant emphasis on the development of the transmission requirements for RE integration until 2030,

Annual Report 2023-24 45

grid energy storage needs, and requirement for new HVDCs, (SEBI) in January 2021 under the InvIT Regulations. The Trust is
etc. The significant addition in renewable energy generation supported by India’s most experienced and respected Sponsor
necessitates the continual strengthening of a resilient National and Project Manager POWERGRID, an experienced Investment
Grid, integrating high-capacity AC and HVDC systems, along Manager, POWERGRID Unchahar Transmission Limited, and a
with state-of-the-art FACTS (Flexible Alternating Current renowned Trustee, IDBI Trusteeship Services Limited (ITSL).
Transmission Systems) devices for controlling power system
parameters. Initial Portfolio Assets
PGInvIT’s initial portfolio comprises five operational and
The latest CTUIL Rolling Plan, March 2024, estimates that revenue-generating Special Purpose Vehicles (SPVs), each
cumulatively by 2028-29, transmission schemes comprising holding a transmission licence granted by the regulator,
48,619 ckm of transmission lines and transformation capacity the Central Electricity Regulatory Commission, under the
of 4,56,035 MVA at an estimated cost of ₹ 2,94,642 crore are Electricity Act, 2003. The projects, executed under the
expected to be added in the grid. The inter-regional transmission tariff-based competitive bidding mechanism, demonstrate
capacity is expected to grow from the current 1,16,540 MW to a robust operational track record with high availability and
about 1,34,540 MW by FY 2028-29. are eligible for assured transmission charges and incentives,
subject to maintaining operational parameters, for a duration
Transmission projects under the ISTS usually undergo of 35 years from the date of respective commercial operation.
competitive bidding processes, although some projects PGInvIT prioritises the maintenance and optimisation of the
allocated by the government follow a regulated tariff mechanism. performance of these assets through its Project Manager,
States/STUs also conduct competitive bidding processes for POWERGRID.
some of their projects. As per the CTUIL Rolling Plan, March 2024,
projects worth ₹ 1,98,645 crore are in the planning, bidding, or The assets of PGInvIT consist of 11 transmission lines, including
approval stages, projected to be completed by FY 2028-29. six 765 kV transmission lines and five 400 kV transmission lines,
POWERGRID and private sector entities usually participate in with a total length of 3,699 ckm, and 3 substations with an
these bidding processes. Subsequently, some developers may aggregate transformation capacity of 6,630 MVA and 1,955.66
opt to monetise their projects later by selling them to other km of optical ground wire. The assets are located across five
entities, including financial investors or investment vehicles like states in India and can be classified into grid-strengthening
infrastructure investment trusts. links, generation-linked, and linked with inter-regional power
flow. The SPVs, as per the respective Transmission Service
National Monetisation Pipeline (NMP) Agreements, have an average residual life of over 28 years.
The National Monetisation Pipeline (NMP), developed by NITI
Aayog in collaboration with infrastructure ministries, aligns Please refer to Page 19 of this Report for further details.
with the mandate for ‘Asset Monetisation’ to leverage the value
of public assets. This initiative aims to bolster investments Operational Highlights
in infrastructure by utilising investments from public assets The transmission sector relies on efficient operation and
to support the financing and ongoing maintenance of maintenance to deliver value to key stakeholders through
infrastructure projects. optimal availability of transmission assets. Serving as the
Project Manager, POWERGRID is responsible for conducting
The power sector comprises 14% of the total assets on offer operation and maintenance (O&M) activities of the IPAs,
under the NMP. Assets valued at ₹ 85,200 crore have been encompassing routine maintenance activities and preventive
earmarked for monetisation in the power sector, out of which and breakdown maintenance tasks. POWERGRID remains
the monetisation of power transmission assets would amount committed to ensuring the efficient operation and maintenance
to ₹ 45,200 crore, primarily through POWERGRID. The NMP of the IPAs. The integration of various innovative technologies,
prioritises Infrastructure Investment Trusts (InvITs) as a mode including aerial surveillance, app-based patrolling, and
for monetising power transmission assets. The government AI-powered defect identification software, plays a pivotal role
has implemented several beneficial regulatory and taxation in reducing shutdown time for routine maintenance checks and
measures to enhance the appeal of InvITs as an investment breakdown maintenance. This leads to improved availability of
avenue in India, especially for global investors. transmission systems.

Business Overview Since PGInvIT’s inception, the initial portfolio assets have
POWERGRID Infrastructure Investment Trust (PGInvIT), consistently surpassed the normative availability standard
established by POWERGRID, India’s largest transmission company of 98%, guaranteeing the recovery of complete transmission
and a Maharatna CPSE, is dedicated to owning, constructing, charges and associated incentives. Additionally, the Project
operating, maintaining, and investing in power and power Manager has been engaged for implementing new RTM projects
transmission assets in India as an infrastructure investment trust. undertaken by an SPV.
It is the first InvIT sponsored by a governmental entity in India.
With POWERGRID’s support, the IPAs ensure adherence to
PGInvIT was founded as a Trust under the Indian Trusts Act, applicable laws and regulations and foster a safe, healthy, and
1882 in September 2020, and was registered as an infrastructure enriching environment for the workforce engaged in operations,
investment trust with the Securities and Exchange Board of India maintenance, and other tasks.

46 POWERGRID Infrastructure Investment Trust

 CORPORATE OVERVIEW STATUTORY REPORTS FINANCIAL STATEMENTS

During FY 2023-24, all the SPVs reported 100% safe man-hours to renewal according to the terms of the TSA and the CERC
and accident-free operations. regulations.
(` in million)
Average Availability of SPVs during FY 2023-24
Particulars FY 2023-24
99.98% 100% 99.83% 99.89% 99.94% Consolidated
Total Income 13,027.22
Operating Expenses 993.24
EBITDA 12,033.98
EBITDA Margin (%) 92.38%
Net Distributable Cash Flows (NDCF) 10,977.63
Distribution per unit (₹) for FY 2023-24 12
Market Capitalisation* 86,186.02

*As per the closing price on NSE on March 31, 2024

Net Distributable Cash Flow (NDCF) and Distribution

VTL PKATL PPTL PWTL PJTL Per Unit (DPU)
Net Distributable Cash Flow (NDFC) is the free cash flow
Except VTL availability is provisional. Under Approval by RPC
generated from underlying operations. Cash flows received
by PGInvIT are usually in the form of interest income, dividend
income, and principal repayment. As outlined in the InvIT
EFFICIENT AND ACCIDENT-FREE OPERATIONS Regulations and PGInvIT’s Distribution Policy, the Trust is
• Well-established and routinely reviewed Health and obligated to distribute at least 90% of the Distributable Income
Safety Policy to its Unitholders.
• O&M support
• Routine and Preventive maintenance The Net Distributable Cash Flow (NDCF) was ₹ 10,977.63 million
in FY 2023-24. The Trust made an aggregate DPU of ₹ 12 per unit
• Safety drills
for FY 2023-24. DPU is the cash flow distributed on a “per unit”
• Training for O&M teams
basis to the Unitholders. Total cash distribution to unitholders
• Aerial patrolling through drones for FY 2023-24 was ₹ 10,919.99 million.
• Best practices and technology-driven operation and
maintenance Assets Under Management
The registered valuer, M/s INMACS Valuers Private Limited,
carried out the valuation as an independent valuer and valued
assets of PGInvIT at ₹ 84,703.44 million as on March 31, 2024.
PGInvIT’s Project Manager, POWERGRID possess Emergency
Restoration Systems (ERS), situated strategically nationwide. Assets Enterprise Value
During emergencies, these systems along with their skilled (₹ in million)
teams can be quickly mobilised to swiftly restore transmission
services and maintain uninturrupted operations of PGInvIT VTL 18,730.60
assets, subject to availability. PKATL 3,938.61
PPTL 21,427.17
FINANCIAL REVIEW
PWTL 23,539.62
Financial Revenue and EBITDA
PJTL 17,067.44
PGInvIT’s SPVs operate in the power transmission sector,
Total 84,703.44
generating revenue through availability-based transmission
charges as per the TSAs from the DICs irrespective of the
Borrowings
volume of power transmitted through the transmission
line. Furthermore, maintaining asset availability exceeding The consolidated borrowings stood at ₹ 5,698.29 million as on
98% entitles the SPVs to claim incentives under the TSAs. March 31, 2024. During FY 2023-24, no additional borrowing has
The transmission charges are contracted for the duration of been taken by PGInvIT and Loan repayment of ₹ 28.78 million
the relevant TSAs, typically spanning 35 years from the COD has been made in line with the Facility Agreement entered
of the respective power transmission project, and are subject between PGInvIT and HDFC Bank Limited.

Annual Report 2023-24 47

Credit Rating With its solid foundation and fundamental strengths, PGInvIT
PGInvIT maintains its positive ratings, with “CRISIL AAA/Stable” is well-equipped to acquire new assets while safeguarding
by CRISIL, “[ICRA] AAA (Stable)” by ICRA, and “CARE AAA; the interests of unitholders. All potential assets earmarked for
Stable” by CARE. acquisition will undergo comprehensive evaluation, considering
factors such as operational track record in accordance with InvIT
Additionally, the Long-Term Bank facility from HDFC Bank Regulations, adherence to statutory requirements, alignment
Limited maintains its rating of “CARE AAA; Stable” (Triple A; with PGInvIT’s governance framework, and the collective
Outlook: Stable) by CARE. interest of unitholders.

Strategies and Outlook Cautionary Statement

PGInvIT’s business strategies are centered on a focused business The Management Discussion and Analysis may contain some
model aimed at enhancing profitability through operational
statements describing the Trust’s objectives, projections,
efficiencies, exploring growth opportunities through
estimates and expectations, which may be forward-looking
value-accretive acquisitions, and maintaining an efficient
in nature. These statements are made within the meaning of
capital structure while prudently managing risks. PGInvIT holds
applicable laws and regulations and are based on informed
to its commitment to deliver steady and visible returns to its
unitholders. The power transmission sector maintains a lower judgements and estimates. Additionally, words like ‘may’,
risk profile due to its minimal operational risks, well-established ‘will’, ‘should’, ‘expects’, ‘plans’, ‘intends’, ‘anticipates’, ‘believes’,
regulatory framework, and limited counterparty risk. ‘estimates’, ‘predicts’, ‘potential’ or ‘continue’ and similar
These factors contribute to long-term visibility on returns and a expressions have been used to identify forward-looking
consistent cash flow stream. statements. Actual results or prospects of the Trust may differ
substantially or materially from those either expressed or implied
Leveraging its distinct strengths, PGInvIT aims to exploit in such forward-looking statements as future performance also
strategic acquisition opportunities that align with its long-term involves risks, uncertainties and changes beyond the control
objectives. Consistent investments in the transmission sector will of the Trust. Important factors that could make a difference to
pave the way for establishing a pipeline of transmission assets the Trust’s operations include macro-economic developments
across the country, thereby unlocking growth opportunities in the country, improvement in the state of capital markets,
for PGInvIT. The government’s guideline to the states for
changes in the governmental policies, regulations, taxes, laws,
monetisation of power transmission assets to generate funds will
and other statutes and incidental factors. The Trust undertakes
also create opportunities for PGInvIT. Furthermore, additional
no responsibility to publicly amend, modify or revise any
opportunities will emerge if the Trust’s Sponsor, tasked with
forward-looking statements to reflect future/likely events or
yearly monetisation targets by the government, undertakes
such monetisation through InvITs. circumstances.

48 POWERGRID Infrastructure Investment Trust

 CORPORATE OVERVIEW STATUTORY REPORTS FINANCIAL STATEMENTS

Mandatory Disclosures

1. Details of revenue during the year, project-wise Enterprise and Equity Valuation of the five SPVs of PGInvIT,
from the underlying projects namely, VTL, PKTL, PPTL, PWTL and PJTL as of March 31,
2024, considering inter-alia historical performance of the
(` in million) SPVs, Business Plan/ Projected financial statements of the
Particulars April 1, 2023 to SPVs, industry analysis and other relevant factors.
March 31, 2024
VTL 2,193.46 For valuation purposes, the Valuer adopted the Discounted
PKATL 695.89 Cash Flow (‘DCF’) Method under the Income Approach.
PPTL 3,359.32
The Enterprise Value was primarily computed by
PWTL 3,750.40
discounting the free cash flows over the forecast period
PJTL 2,654.31
until the end of the life of project and the terminal value
Total 12,653.38
at the end of the forecast period using an appropriate
Note: Revenue excludes other income Weighted Average Cost of Capital (‘WACC’).

2. Brief summary of the valuation as per full valuation Valuation report of PGInvIT assets as on March 31, 2024
report as at the end of the year issued by Valuer is annexed to this report as Annexure and
In line with the ‘InvIT Regulations’, PGInvIT got the valuation forms part of this report. The valuation report can also be
done for it’s assets through an independent valuer, M/s viewed on the Trust’s website.
INMACS Valuers Private Limited. The Valuer carried out the

The Valuation summary of the Specified SPVs as of March 31, 2024 is as follows:

Initial Portfolio Assets WACC Enterprise Value Equity Value No. of Shares Value per share
(` in million) (` in million) (in `)
VTL 8.79% 18,730.60 11,069.05 209730000 52.78
PKATL 8.79% 3,938.61 2,094.40 61000000 34.33
PPTL 8.79% 21,427.17 9,917.63 322100000 30.79
PWTL 8.79% 23,539.62 9,237.13 393300000 23.49
PJTL 8.79% 17,067.44 5,805.95 226910000 25.59
TOTAL 84,703.44 38,124.16

3. Details of changes during the year pertaining to Loan repayment of ₹ 28.78 million has been made
a. Addition and divestment of assets including during the period, which is in line with Facility
the identity of the buyers or sellers, purchase or Agreement entered into between PGInvIT and
sale prices and brief details of valuation for such HDFC Bank Limited.
transactions
d. Credit rating
No addition and divestment of assets has been
The Trust is rated as “CRISIL AAA/Stable’’ by CRISIL,
made during the year ended on March 31, 2024.
‘’[ICRA] AAA (Stable)’’ by ICRA and “CARE AAA;
Stable” by CARE.
b. Valuation of assets and NAV (as per the full
valuation reports)
Further, Long Term Loan Facility from HDFC Bank
Refer page no. 111 of this report for details of NAV. Limited is rated ‘’CARE AAA; Stable (Triple A;
Outlook: Stable)” by CARE.
c. 
Borrowings or repayment of borrowings
(standalone and consolidated)
During the year ended March 31, 2024, no
additional borrowing has been taken by PGInvIT.

Annual Report 2023-24 49

 e. Sponsor, Investment Manager, Trustee, valuer, f. Clauses in trust deed, investment management
directors of the Trustee or Investment Manager agreement or any other agreement entered into
or sponsor, etc. pertaining to activities of InvIT
There is no change in the Sponsor, Investment Pursuant to Amendment to InvIT Regulations issued
Manager, Trustee and Valuer. Changes in the by SEBI on August 18, 2023 and SEBI Circular dated
Directors of Sponsor, Investment Manager and September 11, 2023 titled ‘Board Nomination Rights
Trustee are given hereunder to Unitholders of Infrastructure Investment Trusts’,
the Investment Management Agreement and Trust
Particulars Name of the Directors of the Entity
Deed have been amended to incorporate provisions
Entity
relating to Unitholder Nominee Directors.
Sponsor POWERGRID Shri Mohammad Afzal
ceased to be Govt. Nominee g. Any regulatory changes that has impacted or may
Director on the Board w.e.f. impact cash flows of the underlying projects
May 17, 2023
Except otherwise specified, during the period
Dr. Saibaba Darbamulla under review, there were no regulatory changes
appointed as Govt. Nominee that have impacted or may impact cash flows of
Director on the Board w.e.f. the underlying projects.
May 18, 2023
h. Change in material contracts or any new risk in
Shri Vinod Kumar Singh performance of any contract pertaining to the
ceased to be Director on the InvIT
Board w.e.f. May 31, 2023
Except otherwise specified, during the period under
Dr. Yatindra Dwivedi review, there were no changes in material contracts
appointed as Director on the or any new risk in performance of any contract
Board w.e.f. August 31, 2023 pertaining to the Trust.

Shri Onkarappa KN ceased i. Any legal proceedings which may have significant
to be Director on the Board bearing on the activities or revenues or cash flows
w.e.f. December 13, 2023* of the InvIT
Shri Sreekant Kandikuppa Except otherwise specified in this report or its
ceased to be Director on Annexures, during the period under review,
the Board w.e.f. December there were no legal proceedings which may have
31, 2023 significant bearing on the activities or revenues or
cash flows of the Trust.
Investment PUTL Shri Purshottam Agarwal
Manager appointed as Director on
j. Any other material change during the year
the Board w.e.f. April 1, 2023
Except otherwise specified, during the period
Shri Onkarappa KN ceased under review, there were no material changes
to be Director on the Board during the year.
w.e.f. December 13, 2023*
Trustee IDBI Shri Jayakumar S. Pillai 4. Revenue of the InvIT for the last 5 years, project-
Trusteeship appointed as Director on wise
Services Ltd. the Board w.e.f. July 18, 2023 Pursuant to PGInvIT IPO in May 2021, PGInvIT acquired
74% equity shareholding in VTL, PKATL, PPTL, PWTL and
Shri J. Samuel Joseph ceased
PJTL from POWERGRID on May 13, 2021. Accordingly, the
to be Director on the Board
revenue of PGInvIT for FY 2021-22 is available for part of
w.e.f. April 18, 2023
the year i.e. from May 13, 2021 to March 31, 2022.
* Cessation – Demise.
S hri Dilip Nigam ceased to be Govt. Nominee Director on the Board Following that, on March 31, 2022, PGInvIT acquired
w.e.f. April 17, 2024. balance 26% equity shareholding in VTL from POWERGRID.
Furthermore, on the same date, PPTL, PWTL and PJTL
(SPVs of PGInvIT) acquired change in law revenue from
POWERGRID. Consequently, the revenue of PGInvIT for
the fiscal year 2022-23 onwards incorporates the revenue
generated by the aforementioned acquisitions.

50 POWERGRID Infrastructure Investment Trust

 CORPORATE OVERVIEW STATUTORY REPORTS FINANCIAL STATEMENTS

(` in million)
Particulars April 1, 2023 to April 1, 2022 to May 13, 2021 to
March 31, 2024 March 31, 2023 March 31, 2022
VTL 2,193.46 2,416.07 2,604.51
PKATL 695.89 689.51 626.98
PPTL 3,359.32 3,361.11 2,975.01
PWTL 3,750.40 3,752.44 3,324.77
PJTL 2,654.31 2,638.72 2,642.12
Total 12,653.38 12,857.85 12,173.39
Note: Revenue excludes other income

5. Update on development of under-construction projects, if any

125 MVAr, 420kV Bus Reactor at Kala Amb substation by PKATL under RTM has been put to commercial operation w.e.f.
February 05, 2024.
Central Transmission Utility of India Limited (CTUIL) has nominated PPTL for implementation of “400 kV line bay at
765/400 kV Parli (New) S/S for RE inter-connection” under RTM with a completion target of December 31, 2025.

6. Unit price quoted on the exchange at the beginning and end of the financial year, the highest and lowest
unit price and the average daily volume traded during the financial year
(`)
Particulars NSE BSE
Price information
Unit Price at the beginning of the period (April 03, 2023) - opening price 122.52 122.62
Unit Price at the ending of the period (March 28, 2024) - closing price 94.71 94.65
Highest Unit Price 127.45 127.84
Lowest Unit Price 90.90 91.00
Volume Information
Average Daily Volume Traded during the period (in Thousands) 1,270.34 129.35
Total Average Daily Volume Traded (On both NSE and BSE) (in Thousands) 1,399.69

7. Details of outstanding borrowings and deferred payments of InvIT including any credit rating(s), debt
maturity profile, gearing ratios of the InvIT on a consolidated and standalone basis as at the end of the year
Particulars Standalone Consolidated
(a) Outstanding Long Term Debt 5,698.29 5,698.29
(b) Less: Cash and cash equivalents 2,966.50 4,168.61
(c) Net Debt (a-b) 2,731.79 1,529.68
(d) Total Equity 77,602.19 75,412.39
(e) Total Equity plus Net Debt (c+d) 80,333.98 76,942.07
(f ) Gearing Ratio (c/e) 3.40% 1.99%
(g) Credit Rating for Long Term Loan Facility CARE AAA; Stable
(h) Tenure of Loan 16 years

8. The total operating expenses of the InvIT along with detailed break-up, including all fees and charges paid
to the Investment Manager and any other parties, if any during the year
Refer Financial Statements for details.

Annual Report 2023-24 51

9. Past performance of the InvIT with respect to unit price, distributions made and yield for the last 5 years, as
applicable
(` in million)
Particulars FY 2023-24 FY 2022-23 FY 2021-22
Unit Price at the beginning of the period (NSE ₹ 121.66 ₹ 134.17 ₹ 102.99$
Closing Price)
Unit Price at the end of the period (NSE Closing Price) ₹ 94.71 ₹ 122.52 ₹ 133.90
VWAP Unit Price (NSE) ₹ 102.21 ₹ 130.04 ₹ 116.44
Distributions made for the period ₹ 12.00 per unit* ₹ 12.00 per unit ₹ 10.50 per unit**
Yield (Annualised) 11.74% 9.23% 10.19%

$Closing price as on the date of listing.

* Includes DPU of ` 3.00/per unit for the quarter ended March 31, 2024.
** ₹ 10.50 per unit was distributed for the period from May 13, 2021 to March 31, 2022.

10. Details of all related party transactions during the year, value of which exceeds five percent of value of the
InvIT
There are no related party transactions during the period, value of which exceeds five per cent of value of the InvIT Assets.

11. Details regarding the monies lent by the InvIT to the holding company or the special purpose vehicle in which
it has investment in:
(` in million)
Particulars Opening Balance as Loan given during Loan repaid during Closing Balance as
on April 01, 2023 the period the period on March 31, 2024
VTL 7,839.88 - 60.00 7,779.88
PKATL 1,860.00 146.92 90.00 1,916.92
PPTL 13,272.94 - 805.00 12,467.94
PWTL 15,987.07 - 820.00 15,167.07
PJTL 12,237.95 - 465.00 11,772.95
Total 51,197.84 146.92 2,240.00 49,104.76

12. Details of issue and buyback of units during the Manager(s), or any of their associates, sponsor
year, if any group(s) and the Trustee if any, as at the end of
Issues of Units: the year
During the period under review there was no issue of units Except otherwise specified in this report or its Annexures,
by the Trust. there are no material litigation and actions by regulatory
authorities currently pending against the Trust, the
Buyback of Units: Investment Manager, the Sponsor and the Project
Manager, or any of their associates, Sponsor group and
During the period under review there was no buy back of
the Trustee. For the Trust, Investment Manager and for
units by the Trust.
Sponsor or Project Manager and its associates (Sponsor
group) outstanding cases and/or regulatory action which
13. 
Brief details of material and price sensitive
involve an amount exceeding ` 657.65 million, `14.28
information
million and ` 23,302.82 million (being 5% of the total
Except otherwise specified or disclosed to the Exchange consolidated revenue or consolidated net worth of the
from time to time, during the period under review, there respective entity, whichever is lower for the FY 2022-23)
were no material changes, events or material and price have been considered material, respectively for the
sensitive information to be disclosed for the Trust. review period.

14. Brief details of material litigations and regulatory Except otherwise specified, during the period under
actions, which are pending, against the InvIT, review, there were no regulatory changes that have
sponsor(s), Investment Manager, Project impacted or may impact the underlying projects.

52 POWERGRID Infrastructure Investment Trust

 CORPORATE OVERVIEW STATUTORY REPORTS FINANCIAL STATEMENTS

15. Risk factors E. Growth

The Trust constantly monitors the risks associated with Limited availability of acquisition opportunity,
its business and adequate steps are taken to mitigate highly competitive environment of power
these risks. transmission sector and increased competitive
pressure could adversely affect the ability of
Major risks are as follows:
the Investment Manager to execute the growth
A. Financial health of Customers strategy.
Delay in payment of billed transmission charges
by customers (DICs) to the CTU under Sharing F. Unforeseen Events
Regulations may affect the cash flows and results Any force majeure event rendering our project
of operations of the trust. inoperable and not covered by insurance or TSA
can adversely impact the results of operations and
B. Ability to operate and maintain target availability cash flows.
Inability of Project Manager to ensure operate
and maintain our power transmission projects G. Insurance
to achieve prescribed availability may adversely We have taken Industrial All Risk Insurance Policy
impact the cash flows of the trust. for our assets. If our losses significantly exceed our
insurance coverage or cannot be recovered through
C. Distributions to our Unitholders insurance for any reason whatsoever, our results of
Inability to make distributions as per investor operations and cash flows could be materially and
expectations or anticipation could materially and adversely affected.
adversely affect the market price of our Units.
H. Control of Government of India
D. Increase in Costs There is no assurance that the Investment Manager
The transmission charges under TSAs are largely Board will at all times be in compliance with the
fixed. Increase in O&M costs, insurance or any other requirements for board constitution and related
cost could adversely impact profitability. provisions under the InvIT Regulations.

I. Interest Rate Risk

Increase in interest rates may adversely impact the
profitability and distribution to unitholders.

Note: Detailed risk factors are provided in the

Final Offer Document

Annual Report 2023-24 53

Report on Corporate Governance

BACKGROUND the regulator(SEBI) from the corporate governance norms

PGInvIT was settled as a Trust by POWERGRID under Indian Trusts till May 31, 2023. On its subsequent request, the Trust was
Act, 1882 on September 14, 2020 to own, construct, operate, granted exemption from compliance with certain provisions of
maintain and invest as an infrastructure investment trust as the InvIT Regulations including eligibility criteria with regard
permissible in terms of the InvIT Regulations, including in power to investment manager on requirement of not less than half
transmission assets in India. It was registered as an infrastructure of its directors as independent directors; applicability of
investment trust with SEBI on January 7, 2021, under the InvIT certain provisions of Listing Regulations regarding corporate
Regulations, with Registration Number IN/InvIT/20-21/0016. governance; board composition; quorum for board meeting
and submission of compliance report on governance, till
ITSL, the Trustee of PGInvIT is a debenture trustee registered September 30, 2023, which was further extended upto March 31,
with SEBI. The Trustee has appointed PUTL, a wholly owned 2024. Relaxation from the aforesaid provisions has further been
subsidiary of POWERGRID, as the Investment Manager and granted upto March 31, 2025.
POWERGRID as the Project Manager in accordance with the
InvIT Regulations. BOARD OF DIRECTORS
At the beginning of the financial year, the Board of Directors
PHILOSOPHY ON CORPORATE GOVERNANCE of IM comprised four Directors including two Non-Executive
PUTL, appointed as the Investment Manager (“IM”) to PGInvIT (Non-independent) Directors nominated by POWERGRID,
pursuant to the Investment Management Agreement dated the holding company, namely Shri Abhay Choudhary and
December 18, 2020 which stood amended and restated as on Shri Purshottam Agarwal; and two Independent Directors
March 26, 2024, is responsible for day-to-day management namely Shri Onkarappa KN and Shri Ram Naresh Tiwari
and administration of InvIT Assets and making investment appointed by the Government of India.
decisions with respect to the underlying assets or projects of
the Trust, including any further investment or divestment of its Consequent upon the sad demise of an Independent Director
assets, in accordance with InvIT Regulations and the Investment namely Shri Onkarappa KN on December 12, 2023 (night), the
Management Agreement entered into in relation to the Trust. Board of Directors of IM comprises three Directors including
two Non-Executive (Non-independent) Directors nominated
The IM’s Corporate Governance pillars includes: by POWERGRID, the holding company and one Independent
IM’s Board of Directors Director appointed by the Government of India.

IM’s key personnel led by a Chief Executive Officer The collective experience of the directors of the IM covers a
Committees of the IM Board and broad range of commercial experience, particularly experience
Corporate Governance Framework in relation to the Trust, in infrastructure sector (including the applicable sub-sector),
implemented by the IM. investment management or advisory and financial matters.
The brief profiles of the Directors are given on page no. 16 of
The Corporate Governance Framework inter-alia sets out the this report.
Board composition, its quorum and frequency of meetings,
committees to be formed including their composition, terms BOARD COMPOSITION
of reference, frequency of meetings and quorum requirements As on March 31, 2024, the Board of Directors of IM comprised
and various policies including Code of Conduct adopted by the following:
the IM in relation to the Trust and is available on the website
S. Particulars of Designation Date of
of the Trust.
No. the Directors Appointment
1. Shri Abhay Non-Executive 01/06/2022
Pursuant to the corporate governance norms introduced
Choudhary (Non-independent)
through amendment to the InvIT Regulations vide notification
Director & Chairman
dated February 14, 2023, the IM Board adopted amended
Corporate Governance Framework in relation to PGInvIT. 2. Shri Purshottam Non-Executive 01/04/2023
Subsequently, with the introduction of provisions relating to Agarwal (Non-independent)
board nomination rights to unitholders of InvITs, the Corporate Director
Governance Framework was further amended and adopted by 3. Shri Ram Naresh Independent 10/02/2022
the IM Board (“Amended Corporate Governance Framework”). Tiwari Director
The Amended Corporate Governance Framework can be Note: There were four directors on Board of Directors of IM
accessed on the website of Trust at https://www.pginvit.in/. during the financial year 2023-24, until the sad demise of
Initially, the Trust, on its request, was granted exemption by Shri Onkarappa KN, Independent Director on December 12, 2023 (night).

54 POWERGRID Infrastructure Investment Trust

 CORPORATE OVERVIEW STATUTORY REPORTS FINANCIAL STATEMENTS

QUORUM Details of sitting fee payable to Independent Directors during

The quorum for every meeting of the board of directors of the the financial year 2023-24 are given below:
Investment Manager shall be one-third of its total strength Independent Sitting Fee Total
or three directors, whichever is higher, including at least one Directors (`)
Board Meeting of
independent director, provided required number of independent
Meeting Committees
directors are nominated/ appointed on the governing board of
(`) of Board (`)
the Investment Manager by the Government of India.
Shri Onkarappa KN* 2,45,000 3,50,000 5,95,000
MEETINGS OF BOARD OF DIRECTORS Shri Ram Naresh Tiwari 3,85,000 5,00,000 8,85,000
During the financial year ended March 31, 2024, eleven meetings *Cessation of directorship w.e.f. December 13, 2023 due to demise.
of the Board of Directors of IM were held i.e. on April 27, 2023,
May 25, 2023, June 26, 2023, July 27, 2023, September 27, COMMITTEES OF THE BOARD OF DIRECTORS
2023, October 27, 2023, November 08, 2023, January 24, 2024, The IM has constituted following Committees of Board of
January 31, 2024, February 28, 2024 and March 20, 2024. Directors, in relation to the Trust:

Attendance of meetings of Board of Directors i. Investment Committee;

Name of the Directors No. of No. of ii. Audit Committee;

Meetings Meetings iii. Stakeholders’ Relationship Committee;
entitled to Attended
attend iv. Nomination and Remuneration Committee; and
Non-Executive v. Risk Management Committee.
(Non‑Independent) Directors
Shri Abhay Choudhary 11 11 In addition to the aforesaid Committees, IM has voluntarily
Shri Purshottam Agarwal 11 11 formed ‘Committee of Directors for Appointments’ in relation
Independent Directors to the Trust.
Shri Onkarappa KN* 07 07
i. Investment Committee
Shri Ram Naresh Tiwari 11 11
As on March 31, 2024, the Investment Committee
*Cessation of directorship w.e.f. December 13, 2023 due to demise. comprised the following members:

REMUNERATION OF DIRECTORS S. Name of Category Designation

No. Members
Board of IM comprised four directors including two
Non-Executive (Non-independent) Directors nominated by i. Shri Ram Independent Chairman
POWERGRID, the holding company and two Independent Naresh Tiwari Director of the
Directors appointed by the Government of India, until Committee
the sad demise of Shri Onkarappa KN, Independent ii. Shri Abhay Non-Executive Member
Director on December 12, 2023 (night). The Non-Executive Choudhary (Non-independent)
(Non-independent) Directors nominated by POWERGRID Director & Chairman
do not draw any remuneration/sitting fee for attending the iii. Shri Non-Executive Member
meetings of the Board and Committees of Board, from the IM. Purshottam (Non-independent)
Independent Director(s) are paid sitting fee for attending Agarwal Director
Board/ Committee meetings of IM, as fixed by the Board of
Quorum
IM within the ceiling prescribed for payment of sitting fee
under Section 197 of the Companies Act, 2013 read with The quorum shall be at least one-third of the members of
Rule 4 of the Companies (Appointment and Remuneration of the Investment Committee or two members, whichever
Managerial Personnel) Rules, 2014 and in accordance with the is higher. At least 50% of the members present, shall be
Government Guidelines for attending the Board Meetings as independent directors, provided required number of
well as Committee Meetings. independent directors are nominated / appointed on
the governing board of the Investment Manager by the
Government of India.

Annual Report 2023-24 55

 Meetings Meetings
During the financial year ended March 31, 2024, one During the financial year ended March 31, 2024,
meeting of the Investment Committee was held i.e. eight meetings of the Audit Committee were held i.e.
on August 29, 2023. on April 27, 2023, May 25, 2023, June 26, 2023, July 27,
2023, October 27, 2023, November 08, 2023, January 24,
Terms of reference of the Investment Committee include 2024, and March 14, 2024.
the following:
i. review of the investment decisions with respect to Terms of reference of the Audit Committee include the
the underlying assets or projects of the InvIT from following:
the Sponsor including any further investments or i. provide recommendations to the board of directors
divestments to ensure protection of the interest of regarding any proposed distributions;
unitholders;
ii. undertaking all functions in relation to protection of ii. overseeing the InvIT’s financial reporting process
unitholders’ interests and resolution of any conflicts and disclosure of its financial information to ensure
of interest (other than in relation to investors’ that its financial statements are correct, sufficient
grievances) including reviewing agreements or and credible;
transactions in this regard;
iii. giving recommendations to the board of directors
iii. approving any proposal in relation to acquisition of regarding appointment, re-appointment and
assets, further issue of units including in relation to replacement, remuneration and terms of
acquisition or assets;
appointment of the statutory auditor of the InvIT
iv. overseeing activities of the project manager and the audit fee subject to the approval of the
in accordance with the InvIT Regulations and unitholders;
the project implementation and management
agreement; and iv. giving recommendations to the board of directors
regarding appointment, re-appointment and
v. formulating any policy for the Investment Manager
replacement, remuneration and terms of
as necessary, in relation to its functions, as
appointment of the internal auditor of the InvIT;
specified above.

v. reviewing and monitoring the independence and

ii. Audit Committee
performance of the statutory auditor of the InvIT,
As on March 31, 2024, the Audit Committee comprised
and effectiveness of audit process;
the following members:

S. Name of Category Designation vi. approving payments to statutory auditors of

No. Members the InvIT for any other services rendered by such
i. Shri Ram Independent Chairman statutory auditors;
Naresh Tiwari Director of the
Committee vii. reviewing, with the management the annual
ii. Shri Abhay Non-Executive Member financial statements and auditor’s report thereon
Choudhary (Non-independent) of the InvIT, before submission to the board of
Director & directors for approval, with particular reference to:
Chairman
iii. Shri Non-Executive Member matters required to be included in the
Purshottam (Non-independent) director’s responsibility statement to be
Agarwal Director included in the board’s report in terms of
clause (c) of sub-section (3) of Section 134 of
The Company Secretary is the Secretary to the Audit the Companies Act, 2013;
committee.
changes, if any, in accounting policies and
Quorum practices and reasons for such change;
The quorum for Audit Committee meeting shall either
be two members or one-third of the members of the major accounting entries involving estimates
audit committee, whichever is greater, with at least two based on the exercise of judgment by
independent directors, provided required number of management;
independent directors are nominated/ appointed on
the governing board of the Investment Manager by the significant adjustments made in the financial
Government of India. statements arising out of audit findings;

56 POWERGRID Infrastructure Investment Trust

 CORPORATE OVERVIEW STATUTORY REPORTS FINANCIAL STATEMENTS

compliance with listing and other legal xix. reviewing the procedures put in place by the
requirements relating to financial statements; Investment Manager for managing any conflict that
may arise between the interests of the unitholders,

disclosure of any related par ty the parties to the InvIT and the interests of the
transactions; and Investment Manager, including related party
transactions, the indemnification of expenses or
modified opinions in the draft audit report. liabilities incurred by the Investment Manager, and
the setting of fees or charges payable out of the
viii. approving such related party transactions as may InvIT’s assets;
be required under the InvIT Regulations;
xx. 
discussing with statutory auditors prior to
commencement of the audit about the nature and
ix. reviewing, with the management, all periodic
scope of audit as well as post-audit discussion to
financial statements, including but not limited
ascertain any area of concern;
to quarterly, half-yearly and annual financial
statements of the InvIT whether standalone or xxi. reviewing and monitoring the independence and
consolidated or in any other form before submission performance of the valuer of the InvIT;
to the board of directors for approval;
xxii. to look into the reasons for substantial defaults in
x. reviewing, with the management, the statement of the payment to the depositors, debenture holders
uses/application of funds raised through an issue and creditors;
of Units by the InvIT (public issue, rights issue,
preferential issue, etc.) and issue of debt securities xxiii. giving recommendations to the board of directors
and the statement of funds utilised for purposes regarding appointment, re-appointment and
other than those stated in the offer documents/ replacement, remuneration and terms of
notice, and making appropriate recommendations appointment of the valuer of the InvIT;
to the board of directors for follow-up action;
xxiv. evaluating any defaults or delay in payment of
distributions to the unitholders or dividends by
xi. approval or any subsequent modifications of
the SPVs to the InvIT and payments to any creditors
transactions of the InvIT with related parties;
of the InvIT or the SPVs, and recommending
remedial measures;
xii. scrutinising loans and investments of the InvIT;
xxv. reviewing management’s discussion and analysis of
xiii. reviewing valuation reports required to be prepared financial condition and results of operations;
under applicable law, periodically, and as required,
under applicable law; xxvi. reviewing the statement of significant related party
transactions, submitted by the management;
xiv. evaluating internal financial controls and risk
management systems of the InvIT; xxvii. granting omnibus approval to the related party
transactions in accordance with the manner set
xv. reviewing, with the management, the performance out in the SEBI (Listing Obligations and Disclosure
of statutory auditors of the InvIT, and adequacy of Requirements) Regulations;
the internal control systems, as necessary;
xxviii. reviewing on a quarterly basis the details of the
xvi. discussion with internal auditors of any significant related party transactions entered into by the InvIT
findings and follow up thereon; pursuant to the omnibus approval and approving
or suggesting modifications to transactions of
xvii. reviewing the adequacy of internal audit function the Investment Manager with related parties in
if any of the InvIT, including the structure of the accordance with applicable law;
internal audit department, staffing and seniority
of the official heading the department, reporting xxix. reviewing the management letters/internal audit
structure coverage and frequency of internal audit; reports and letters of internal control weaknesses
issued by the statutory auditors or internal auditors;
xviii. reviewing the findings of any internal investigations
by the internal auditors in relation to the InvIT, xxx. 
giving recommendations to the board of
into matters where there is suspected fraud or directors regarding audit fee to be paid to the
irregularity or a failure of internal control systems statutory auditors of the Investment Manager and
of a material nature and reporting the matter to the payments for any other services rendered by such
board of directors; statutory auditors;

Annual Report 2023-24 57

 xxxi. examination of the financial statement of Investment Quorum
Manager and the auditors’ report thereon; T he quorum for a meeting of Stakeholders’ Relationship
Committee shall be either two members or one-third of
xxxii. reviewing the functioning of the vigil mechanism/ the members of the committee, whichever is greater.
whistle blower mechanism;
Meetings
xxxiii. approval of appointment of chief financial officer/ During the financial year ended March 31, 2024, four
finance head after assessing the qualifications, meetings of the Stakeholders’ Relationship Committee
experience and background, etc. of the candidate; were held i.e. on April 18, 2023, July 14, 2023,
October 17, 2023 and January 17, 2024.
xxxiv. reviewing the utilization of loans and/ or advances
from/investment by the InvIT in the SPVs exceeding Terms of reference of the Stakeholders’ Relationship
₹1,000 million or 10% of the asset size of the SPV, Committee include the following:
whichever is lower including existing loans / i. resolving the grievances of the security holders of
advances / investments; the InvIT including complaints related to transfer/
transmission of units, non-receipt of annual report,
xxxv. 
the appointment, removal and terms of non-receipt of declared distributions, issue of new/
remuneration of the chief internal auditor, if any, duplicate certificates, general meetings etc;
shall be subject to review by the audit committee;
ii. review of measures taken for effective exercise of
xxxvi. reviewing the statement of deviations in accordance voting rights by unitholders;
with the InvIT Regulations;
iii. review of adherence to the service standards
xxxvii. r eviewing the compliance under SEBI (Prohibition adopted by the InvIT in respect of various services
of Insider Trading) Regulations, 2015 as amended at being rendered by the Registrar & Transfer Agent;
least once in a financial year and verifying that the
systems for internal control are adequate and are iv. review of the various measures and initiatives
operating effectively; taken by the InvIT for reducing the quantum of
unclaimed distributions and ensuring timely receipt
xxxviii. formulating any policy for the Investment Manager of distributions warrants/annual reports/statutory
as necessary, in relation to its functions, as notices by the unitholders;
specified above;
v. update unitholders on acquisition / sale of assets by
the InvIT and any change in the capital structure of
xxxix. 
p erforming such other activities as may be
the Holding Companies or the SPVs, as applicable;
delegated by the board of directors and/ or are
statutorily prescribed under any law to be attended
vi. review of any litigation related to unitholders’
to by the Audit Committee.
grievances and reporting specific material litigation
related to unitholders’ grievances to the Board;
iii. Stakeholders’ Relationship Committee
As on March 31, 2024, the Stakeholders’ Relationship vii. approve report on investor grievances to be
Committee comprised the following members: submitted to the Trustee; and

S. Name of Category Designation viii. 

performing such other activities as may be
No. Members delegated by the board of directors and/ or are
i. Shri Ram Independent Chairman statutorily prescribed under any law to be attended
Naresh Tiwari Director of the to by the Stakeholders’ Relationship Committee.
Committee
ii. Shri Abhay Non-Executive Member
Choudhary (Non-independent)
Director &
Chairman
iii. Shri Non-Executive Member
Purshottam (Non-independent)
Agarwal Director

58 POWERGRID Infrastructure Investment Trust

 CORPORATE OVERVIEW STATUTORY REPORTS FINANCIAL STATEMENTS

iv. Nomination and Remuneration Committee b. consider candidates from a wide range
As on March 31, 2024, the Nomination and Remuneration of backgrounds, having due regard to
diversity; and
Committee comprised the following members:
c. consider the time commitments of the
S. Name of Category Designation
candidates.
No. Members
i. Shri Ram Independent Chairman iii. formulation of criteria for evaluation of performance
Naresh Tiwari Director of the of independent directors and the board of directors;
Committee
ii. Shri Abhay Non-Executive Member iv. devising a policy on diversity of board of directors;
Choudhary (Non-independent)
Director & Chairman v. identifying persons who are qualified to become
iii. Shri Non-Executive Member directors and who may be appointed in senior
Purshottam (Non-independent) management in accordance with the criteria laid
Agarwal Director down, and recommend to the board of directors
their appointment and removal;
Quorum
vi. whether to extend or continue the term of
The quorum for a meeting of Nomination and
appointment of the independent director, on the
Remuneration Committee shall be either two members
basis of the report of performance evaluation of
or one-third of the members of the committee,
independent directors;
whichever is greater, with at least one independent
director in attendance, provided required number of vii. recommend to the board, all remuneration, in
independent directors are nominated/ appointed on whatever form, payable to senior management; and
the governing board of the Investment Manager by the
Government of India. viii. 
performing such other activities as may be
delegated by the Board of Directors and/ or
Meetings are statutorily prescribed under any law to be
During the financial year ended March 31, 2024, attended to by the Nomination and Remuneration
two meetings of the Nomination and Remuneration Committee.
Committee were held i.e. on September 27, 2023 and
v. Risk Management Committee
January 31, 2024.
As on March 31, 2024, the Risk Management Committee
Terms of reference of the Nomination and Remuneration comprised the following members:
Committee include the following, to the extent S. Name of Category Designation
applicable, in light of the Investment Manager being a No. Members
Government company: i. Shri Ram Independent Chairman
i. formulation of the criteria for determining Naresh Tiwari Director of the
qualifications, positive attributes and independence Committee
of a director and recommend to the board of ii. Shri Abhay Non-Executive Member
directors a policy relating to the remuneration of Choudhary (Non-independent)
the directors, key managerial personnel and other Director &
employees; Chairman
iii. Shri Non-Executive Member
ii. for every appointment of an independent director, Purshottam (Non-independent)
the Nomination and Remuneration Committee Agarwal Director
shall evaluate the balance of skills, knowledge
Quorum
and experience on the Board and on the basis
The quorum for a meeting of the Risk Management
of such evaluation, prepare a description of the
Committee shall be either two members or one third
role and capabilities required of an independent
of the members of the committee, whichever is higher,
director. The person recommended to the Board
including at least one member of the board of directors
for appointment as an independent director shall
in attendance.
have the capabilities identified in such description.
For the purpose of identifying suitable candidates, Meetings
the Committee may:
During the financial year ended March 31, 2024, two
a. use the services of an external agencies, meetings of the Risk Management Committee were held
if required; i.e. on March 14, 2024 and March 20, 2024.

Annual Report 2023-24 59

 Terms of reference of the Risk Management Committee vi. 
the appointment, removal and terms of
include the following: remuneration of the Chief Risk Officer (if any) shall
i. to formulate a detailed risk management policy be subject to review by the Risk Management
which shall include: Committee; and

a. A framework for identification of internal vii. 

performing such other activities as may be
and external risks specifically faced by delegated by the Board of Directors and/ or are
the listed entity, in particular including statutorily prescribed under any law to be attended
financial, operational, sectoral, sustainability to by the Risk Management Committee.
(particularly, ESG related risks), information,
cyber security risks or any other risk as may The Risk Management Committee shall coordinate its
be determined by the Committee. activities with other committees, in instances where there
is any overlap with activities of such committees, as per
b. Measures for risk mitigation including the framework laid down by the board of directors.
systems and processes for internal control of
identified risks. vi. Committee of Directors for Appointments
As on March 31, 2024, the Committee of Directors for
c. Business continuity plan. Appointments comprised the following members:

ii. to ensure that appropriate methodology, processes S. Name of Category Designation
and systems are in place to monitor and evaluate No. Members
risks associated with the business of InvIT; i. Shri Abhay Non-Executive Chairman
Choudhary (Non-independent) of the
iii. to monitor and oversee implementation of the Director & Committee
risk management policy, including evaluating the Chairman
adequacy of risk management systems; ii. Shri Ram Independent Member
Naresh Tiwari Director
iv. to periodically review the risk management policy, iii. Shri Non-Executive Member
at least once in two years, including by considering Purshottam (Non-independent)
the changing industry dynamics and evolving Agarwal Director
complexity;
Meetings
v. to keep the board of directors informed about During the financial year ended March 31, 2024,
the nature and content of its discussions, three meetings of the Committee of Directors
recommendations and actions to be taken; for Appointments were held i.e. on May 25, 2023,
November 08, 2023 and December 05, 2023.

ATTENDANCE OF DIRECTORS AT MEETINGS OF COMMITTEES OF BOARD

Name of the Directors Investment Audit Committee Stakeholders’ Nomination and Risk
Committee (Attended/ Relationship Remuneration Management
(Attended/ Entitled) Committee Committee Committee
Entitled) (Attended/ (Attended/ (Attended/
Entitled) Entitled) Entitled)
Non-Executive (Non-Independent) Directors
Shri Abhay Choudhary Nil/Nil 02/02 01/02 01/01 02/02
Shri Purshottam Agarwal 01/01 08/08 04/04 02/02 02/02
Independent Directors#
Shri Onkarappa KN* 01/01 06/06 02/02 01/01 Nil/Nil
Shri Ram Naresh Tiwari 01/01 08/08 04/04 02/02 02/02

*Cessation of directorship w.e.f. December 13, 2023 due to demise.

#Separate meeting of Independent Directors held on November 08, 2023.

Further, the IM has also constituted a Corporate Social Board, a Corporate Social Responsibility Policy (‘CSR Policy’);
Responsibility (CSR) Committee as required under the recommending the amount of expenditure to be incurred on
Companies Act, 2013. The responsibilities of the CSR Committee the activities to be undertaken by the IM under CSR; monitoring
inter-alia include formulating and recommending to the IM CSR Policy from time to time; formulating and recommending to

60 POWERGRID Infrastructure Investment Trust

 CORPORATE OVERVIEW STATUTORY REPORTS FINANCIAL STATEMENTS

the IM Board, an annual action plan in pursuance of CSR Policy; 8. Code of Conduct for Board of Directors and Senior
and undertaking such matters as are necessary or expedient in Management Personnel of Investment Manager: The
complying with provisions of the Companies Act, 2013 and rules Investment Manager has adopted the Code of Conduct
for Board of Directors and Senior Management Personnel
made thereunder.
of Investment Manager in compliance with the InvIT
Regulations read with applicable provisions of Listing
POLICIES ADOPTED BY THE BOARD OF DIRECTORS
Regulations.
OF INVESTMENT MANAGER IN RELATION TO TRUST
1. Borrowing Policy: The Investment Manager has adopted 9. Nomination and Remuneration Policy: The Investment
the Borrowing Policy in relation to the Trust to ensure Manager has adopted Nomination and Remuneration
that all funds borrowed in relation to the Trust are in Policy to provide a framework for nomination
compliance with the InvIT Regulations. and remuneration of members of the Board, Key
Managerial Personnel and other employees of the
2. Policy on Related Party Transactions: The Investment Investment Manager.
Manager has adopted the Policy on Related Party
Transactions to regulate the transactions of the Trust 10. Policy for familiarisation programmes for Independent
with its related parties based on the laws and regulations Directors of Investment Manager: The Investment
applicable to the Trust and best practices to ensure proper Manager has adopted Policy for familiarisation
approval, supervision and reporting of the transactions programmes for Independent Directors which aims
between the Trust and its related parties. to outline the process for conducting familiarization
programme to facilitate the independent directors on the
3. Distribution Policy: The Investment Manager has Board of Investment Manager to understand details about
adopted the Distribution Policy to ensure proper and the Investment Manager and the Trust, their roles, rights,
timely distribution of Distributable Income of the Trust. responsibilities in the Investment Manager in relation
The Distributable Income of the Trust is calculated in to the Investment Manager and the Trust, nature of the
accordance with the Distribution Policy, InvIT Regulations industry in which the Trust operates, business model of
and any circular, notification or guidelines issued the Trust etc.
thereunder. In line with the Distribution Policy, the InvIT
Assets shall distribute not less than 90% of each of their 11. Risk Management Policy: The Investment Manager has
net distributable cash flows to the Trust and the Trust adopted Risk Management Policy which aims to provide
shall distribute at least 90% of the Distributable Income a framework for management of risks associated with the
to the Unitholders. Distribution shall be declared and business of the Trust.
made not less than once every quarter except for the first
12. Policy on succession planning for the Board and Senior
distribution.
Management of Investment Manager: The Investment
Manager has adopted Policy on succession planning to
4. Policy for Determining Materiality of Information
ensure that vacancies in key positions are filled timely to
for Periodic Disclosures (“Materiality Policy”) of
maintain continuity in leadership and management of
the Trust: The Investment Manager has adopted the
Investment Manager.
Materiality Policy outlining the process and procedures
for determining materiality of information in relation to
13. Whistle Blower and Fraud Prevention Policy: The
periodic disclosures on the Trust’s website, to the stock
Investment Manager has adopted the Whistle Blower
exchanges and to all stakeholders at large, in relation to and Fraud Prevention Policy of its holding company i.e.
the Trust. POWERGRID.

5. Code of Conduct: The Investment Manager has adopted 14. Policy on Diversity of Board of Directors of Investment
a Code of Conduct in relation to the Trust. The Trust and Manager: The Investment Manager has adopted the
the Parties to the Trust shall comply with the Code at all Policy on Diversity of Board of Directors of Investment
times, in accordance with the InvIT Regulations. Manager pursuant to InvIT Regulations read with
applicable provisions of Listing Regulations.
6. Unpublished Price Sensitive Information (“UPSI”)
Policy: The Investment Manager has adopted the UPSI 15. Policy for Unclaimed Distributions: The Investment
Policy to ensure that the Trust complies with applicable Manager has adopted Policy for Unclaimed Distributions
laws, including the InvIT Regulations or such other Indian pursuant to InvIT Regulations read with applicable
laws, regulations, rules or guidelines prohibiting insider circulars issued thereunder, to lay down the framework
trading and governing disclosure of material, unpublished and process to be followed by a claimant for claiming their
price sensitive information. unclaimed or unpaid distribution amount, lying in the
Unpaid Distribution Account or the Investor Protection
7. Policy on Appointment of Auditor and Valuer of the and Education fund.
Trust: The Investment Manager has adopted the Policy
for appointment of auditor and valuer to the Trust in Pursuant to SEBI circular no. SEBI/HO/DDHS/DDHS-PoD/P/
accordance with the InvIT Regulations. CIR/2023/184 dated December 06, 2023 titled ‘Revised

Annual Report 2023-24 61

framework for computation of Net Distributable Cash Flow (“Nomination Right”). Subsequently after the end of FY 2023-34,
(NDCF) by Infrastructure Investment Trusts (InvITs)’, the IM has a further communication was sent to unitholders in April 2024,
adopted amended Distribution Policy of PGInvIT incorporating for subsequent nomination on an annual basis, requesting the
therein the revised framework for computation of NDCF at the Eligible Unitholder(s), to inform the IM of PGInvIT, of its intent to
SPV level as well as at the InvIT level. The amended Distribution exercise the Nomination Right. The IM had not received intent
Policy is effective from April 01, 2024. to exercise Nomination Right from any Eligible Unitholder(s)
The policies are available on the website of the Trust and can be on both the occasions. Initially, the Trust, on its request, was
accessed at https://www.pginvit.in/. granted extension by the regulator(SEBI) from the applicability
of SEBI Circular till March 31, 2024. On its subsequent request,
BOARD NOMINATION RIGHTS TO UNITHOLDERS the Trust has been granted further extension till March 31, 2025.
In August 2023, SEBI had issued amendment to InvIT regulations
SEBI Complaints Redressal System (SCORES)
granting right to Eligible Unitholder(s) (holding ten percent or
more of the total outstanding units of the InvIT, either individually The investor complaints are processed in a centralised
or collectively) to nominate a director on the board of directors web-based complaints redress system. The salient features of
of the investment manager of Infrastructure Investment this system are centralised database of all complaints, online
Trusts. Subsequently, a circular no. SEBI/HO/DDHS-PoD-2/P/ upload of Action Taken Reports by the concerned entities and
CIR/2023/153 titled ‘Board nomination rights to unitholders of online viewing by investors of actions taken on the complaint
Infrastructure Investment Trusts (InvITs)’ was issued by SEBI, on and its current status.
September 11, 2023 (“SEBI Circular”), prescribing the framework
to be put in place within prescribed timelines by the investment PGInvIT has been registered on SCORES and the IM makes
managers to the InvITs for appointment of Unitholder Nominee every effort to resolve all investor complaints received through
Director (who shall be non-independent director) on the board SCORES or otherwise, within the statutory time limit from the
of investment manager. The SEBI Circular became effective from receipt of the complaint.
September 11, 2023.
INVESTOR GRIEVANCES
Pursuant to the SEBI Circular, a communication was sent Various queries/ complaints as received from the investors
to unitholders of PGInvIT for the first time nomination in of the Trust during the financial year ended March 31, 2024
October 2023, requesting the Eligible Unitholder(s), as defined were redressed in a timely manner by the IM/ the Registrar
in the SEBI Circular, to inform the IM of PGInvIT of its intent and Transfer Agent of the Trust. The details of the complaints
to exercise the right to nominate a director on the IM Board received and disposed of during the year are as under:

For Financial Year (FY) 2023-24 - Up to March 31, 2024

Particulars All complaints including SCORES
SCORES complaints Complaints
Number of investor complaints pending at the beginning of the year 0 0
Number of investor complaints received during the year 0 0
Number of investor complaints disposed of during the year 0 0
Number of investor complaints pending at the end of the year 0 0
Average time taken for redressal of complaints 0 0

Further, 2,041 emails were received from the investors in through establishment of a common Online Dispute Resolution
FY 2023-24-Upto March 31, 2024 regarding general query/ (“ODR”) Portal which harnesses online conciliation and online
enquiry about the announcement of financial results/ arbitration for resolution of disputes arising between investors
announcement of distribution/ earnings call details/ profile and listed companies or specified intermediaries/regulated
details/ /price movement related/ Trust’s prospects/ bank entities in the securities market.
account details/ PAN Details/ financial results aspects/ statement
SEBI vide circular no. SEBI/HO/OIAE/OIAE_IAD-1/P/CIR/2023/135
of income/ distribution break up/ TDS on distribution/ TDS
dated August 4, 2023 further clarified that the investor shall
certificate/ annual report/ distribution claims/ unitholding
first take up his/her/their grievance with the Market Participant
pattern/NAV, etc. which have been responded within average
(Listed Companies/specified intermediaries/regulated entities)
time of 1 working day. by lodging a complaint directly with the concerned Market
Participant. If the grievance is not redressed satisfactorily, the
ONLINE DISPUTE RESOLUTION (ODR) PORTAL investor may, escalate the same through the SCORES Portal.
SEBI vide circular no. SEBI/HO/OIAE/OIAE_IAD-1/P/CIR/2023/131 After exhausting the above options, if the investor is not satisfied
dated July 31, 2023 (“Initial ODR Circular”) provided guidelines with the outcome, he/she/they can initiate dispute resolution
for online resolution of disputes in the Indian securities market through the ODR Portal.

62 POWERGRID Infrastructure Investment Trust

 CORPORATE OVERVIEW STATUTORY REPORTS FINANCIAL STATEMENTS

SEBI had earlier issued a Master Circular no. SEBI/HO/OIAE/OIAE_ MEANS OF COMMUNICATION
IAD-1/P/CIR/2023/145 consolidating the above-mentioned The quarterly, half yearly and yearly financial results of the Trust
circulars, which was updated to incorporate amendments were submitted to the Stock Exchanges, after their approval
to Initial ODR Circular, introduced vide circular no. SEBI/HO/ by the Board of IM. The said results, investor presentations,
OIAE/OIAE_IAD-3/P/CIR/2023/191 dated December 20, 2023. earnings call updates and other information/ latest updates/
SEBI has issued an updated Master Circular no. SEBI/HO/OIAE/ announcements made by the Trust can be accessed on the
OIAE_IAD-3/P/CIR/2023/195 to this effect. website of PGInvIT at https://www.pginvit.in. For additional
information, refer page 42.
A communication was sent to unitholders informing them of
the provisions relating to ODR Portal introduced by SEBI. CODE OF CONDUCT FOR BOARD OF DIRECTORS AND
SENIOR MANAGEMENT PERSONNEL
The link to access SMART ODR Portal and ODR related The Board of IM has laid down Code of Conduct for Board of
provisions are: Directors and Senior Management Personnel of IM to PGInvIT.
All Board members and Senior Management Personnel have
SMART ODR Portal- https://smartodr.in/login affirmed compliance with this Code for the financial year ended
March 31, 2024.
ODR related provisions- https://www.pginvit.in/investor_
services_smart.aspx GENERAL UNITHOLDERS’ INFORMATION
1. Annual Meeting
UNITHOLDERS MEETING
Wednesday, June 26, 2024 at 2:30 P.M. (IST) through Video
a) Annual Meeting of the Unitholders:
Conferencing or Other Audio Visual Means (OAVM)
Period Date Time Venue
2. Financial Year
FY 2022-23 July 24, 2023 2:30 P.M. (IST) Through Video
Conferencing Trust’s financial year is from 1st April to 31st March.
3. Listing on Stock Exchanges
b) Other Meeting of Unitholders: PGInvIT’s units are listed on the following Stock Exchanges:
No other Meeting of Unitholders was held during the
NSE BSE
reporting period.
Exchange Plaza, Plot No. C-1, Phiroze Jeejeebhoy
G Block, Bandra-Kurla Complex, Towers, Dalal Street,
c) Postal Ballot(s):
Bandra (E), Mumbai - 400 051, Mumbai – 400 001,
No resolution(s) were passed by Unitholders of PGInvIT Maharashtra. Maharashtra.
through postal ballot during the reporting period.
PGInvIT units are a part of Nifty REITs and InvITs Index.

CREDIT RATING 4. Unit Information

PGInvIT is rated as “CRISIL AAA/Stable’’ by CRISIL, ‘’[ICRA] AAA Symbol & Scrip Codes of units of PGInvIT are given
(Stable)’’ by ICRA and “CARE AAA; Stable” by CARE. Further, the as under:
Long-Term Bank facility from HDFC Bank Limited is rated “CARE NSE Symbol: PGINVIT BSE Scrip ID: PGINVIT
AAA; Stable” (Triple A; Outlook: Stable) by CARE.
BSE Scrip Code: 543290

COMPLIANCE CERTIFICATE Lot Size for Trading: 1 unit

Pursuant to Regulation 26H(5) of the InvIT Regulations, the ISIN: INE0GGX23010

Compliance Certificate duly signed by Chief Executive Officer,
Chief Financial Officer and Compliance Officer was placed before
the Board of Directors of IM at its meeting held on May 22, 2024.

ANNUAL SECRETARIAL COMPLIANCE REPORT

Pursuant to Regulation 26J of the InvIT Regulations, read
with SEBI Master circular no. SEBI/HO/DDHS-PoD-2/P/
CIR/2024/44 dated May 15, 2024, IM has submitted a Secretarial
Compliance Report for the year ended March 31, 2024 given by
Ms. Niti Sethi, Practising Company Secretary, to the Stock
Exchanges i.e. BSE and NSE on May 24, 2024 and the same
is annexed as Annexure - A. There are no adverse remarks
mentioned in the said Report.

Annual Report 2023-24 63

5. Unit Market Price Data 6. Distribution
The details of monthly High-Low price(s) of Units of The details of Distribution made by the Trust for financial
the Trust and number of Units traded on NSE and BSE year ended March 31, 2024 are as under:
are as under:
Date of Type of Distribution Record Date /
Month NSE BSE Board Distribution per unit (₹) Payment Date
Price (`) No. of units Price (`) No. of Meeting
(High/ traded (High/ units July 27, 2023 First 3.00 August 02,2023/
Low) Low) traded August 09,2023
April, 2023 123.65/ 85,04,685 123.64/ 3,73,431 November 08, Second 3.00 November 14,
121.50 120.50 2023 2023/ November
May, 2023 127.45/ 1,20,14,273 127.84/ 18,37,856 21, 2023
115.97 116.00 January 24, Third 3.00 January 30,
June, 2023 119.98/ 1,20,37,470 120.89/ 14,19,625 2024 2024/ February
113.66 113.05 06, 2024
July, 2023 118.75/ 1,44,02,509 118.89/ 11,70,270 May 22, 2024 Fourth 3.00 May 28, 2024/(*)
114.80 114.90 *shall be paid within fifteen days from the date of declaration.
August, 119.30/ 2,11,93,248 119.05/ 32,67,264 Detailed break-up of Distribution made during the year is indicated on the
2023 109.90 109.90 page 4 of the Report.
September, 110.93/ 2,47,75,671 111.00/ 36,47,219
2023 102.25 102.29 7. UNCLAIMED/ UNPAID DISTRIBUTION
October, 103.80/ 2,70,30,699 103.49/ 29,07,348 Pursuant to Regulations 18(6)(e) and 18(6)(f ) of the
2023 97.25 97.55 InvIT Regulations read with the SEBI circular no.
SEBI/HO/DDHS/DDHS-RAC-1/P/CIR/2023/178 dated
November, 101.15/ 2,33,86,912 101.20/ 26,90,779 November 08, 2023 on ‘Procedural framework for dealing
2023 94.43 94.40 with unclaimed amounts lying with Infrastructure
December, 96.95/ 3,25,42,666 96.96/ 38,37,303 Investment Trusts (InvITs) and manner of claiming such
2023 94 94.06 amounts by unitholders’, the IM has adopted Policy for
January, 104/ 2,96,19,217 103.93/ 37,73,011 Unclaimed Distributions which specifies the framework
2024 96.46 96.50 and process to be followed by a claimant for claiming
their unclaimed or unpaid distribution amount, lying
February, 99.40/ 3,18,42,832 99.30/ 29,19,827
in the Unpaid Distribution Account or the Investor
2024 95.69 95.20
Protection and Education Fund. IM has designated
March, 2024 99.50/ 7,51,53,595 99.54/ 39,76,332 Shri Amit Garg, Chief Financial Officer (Email id:
90.90 91.00 [email protected], Contact details: +91 124 282 3170)
as Nodal Officer for the purpose of said policy.

8. Top 10 Unitholders as on March 31, 2024

Total no. of Percentage of total
S. No. Name of Unitholders
units held outstanding units (%)
1 POWER GRID CORPORATION OF INDIA LIMITED- Sponsor 13,65,00,100 15.00
2 CPP INVESTMENT BOARD PRIVATE HOLDINGS 4 INC 91,844,500 10.09
3 NPS TRUST 64,645,370 7.10
4 CAPITAL INCOME BUILDER 46,435,100 5.10
5 HDFC MUTUAL FUND 39,567,474 4.35
6 TATA AIG GENERAL INSURANCE COMPANY LIMITED 16,135,875 1.77
7 ICICI LOMBARD GENERAL INSURANCE COMPANY LTD 12,384,900 1.36
8 UTILICO EMERGING MARKETS TRUST PLC 9,284,098 1.02
9 VANGUARD TOTAL INTERNATIONAL STOCK INDEX FUND 8,513,961 0.94
10 VANGUARD EMERGING MARKETS STOCK INDEX FUND 7,745,845 0.85
None of the Directors or Key Managerial Personnel of IM held any units of the Trust during the financial year March 31, 2024.

64 POWERGRID Infrastructure Investment Trust

 CORPORATE OVERVIEW STATUTORY REPORTS FINANCIAL STATEMENTS

9. Unitholding pattern as on March 31, 2024

Units held by different categories of unitholders and according to the size of the unitholdings as on March 31, 2024 are
given below:

a. Distribution of unitholding according to size as on March 31, 2024:

Number of Percentage of Total Units for Percentage of
S No. Unit Range
Unitholders Unitholders (%) the range Total Units (%)
1 1-5000 1,52,254 95.3 6,16,33,392 6.77
2 5001-10000 3,151 2.0 2,32,13,261 2.55
3 10001-20000 1,824 1.1 2,57,92,328 2.83
4 20001-30000 736 0.5 1,79,68,175 1.97
5 30001-40000 337 0.2 1,18,57,680 1.30
6 40001-50000 304 0.2 1,37,44,472 1.51
7 50001-100000 496 0.3 3,62,86,330 3.99
8 100001 and above 627 0.4 71,95,03,562 79.07
Total 1,59,729 100.0 90,99,99,200 100.0

b. Unitholding pattern as on March 31, 2024:

As a % of No. of units Number of units pledged or
Category of No. of Units Total Out- mandatorily held otherwise encumbered
Category
Unit holder Held standing As a % of total As a % of total
No. of units No. of units
Units units held units held
(A) Sponsor(s) / Investment
Manager / Project
Manager(s) and their
associates/related parties
(1) Indian
(a) Individuals / HUF - 0.00 - 0.00 - 0.00
(b) Central/State Govt. - 0.00 - 0.00 - 0.00
(c) Financial Institutions/Banks - 0.00 - 0.00 - 0.00
(d) Any Other - 0.00 - 0.00 - 0.00
BODIES CORPORATES 13,65,00,100 15.00 13,65,00,100 100.00 - 0.00
Sub- Total (A) (1) 13,65,00,100 15.00 13,65,00,100 100.00 - 0.00
(2) Foreign
(a) Individuals (Non Resident 0.00 - 0.00 - 0.00
Indians / Foreign
Individuals)
(b) Foreign government - 0.00 - 0.00 - 0.00
(c) Institutions - 0.00 - 0.00 - 0.00
(d) Foreign Portfolio Investors - 0.00 - 0.00 - 0.00
(e) Any Other (BODIES - 0.00 - 0.00 - 0.00
CORPORATES)
Sub- Total (A) (2) - 0.00 - 0.00 - 0.00
Total unit holding of 13,65,00,100 15.00 13,65,00,100 100.00 - 0.00
Sponsor & Sponsor Group
(A) = (A)(1)+(A)(2)
(B) Public Holding
(1) Institutions
(a) Mutual Funds 4,16,41,890 4.58
(b) Financial Institutions/Banks 14,20,333 0.15
(c) Central/State Govt. 0 0.00
(d) Venture Capital Funds 0 0.00
(e) Insurance Companies 6,36,55,161 7.00
(f) Provident/pension funds 6,73,80,845 7.40
(g) Foreign Portfolio Investors 18,91,65,255 20.79
(h) Foreign Venture Capital 0 0.00
investors

Annual Report 2023-24 65

 As a % of No. of units Number of units pledged or
Category of No. of Units Total Out- mandatorily held otherwise encumbered
Category
Unit holder Held standing As a % of total As a % of total
No. of units No. of units
Units units held units held
(i) Any Other (specify) 0.00
BODIES CORPORATES 76,51,000 0.84
ALTERNATIVE INVESTMENT 54,37,053 0.60
FUND
Sub- Total (B) (1) 37,63,51,537 41.36
(2) Non-Institutions
(a) Central Government/State 0 0.00
Governments(s)/President
of India
(b) Individuals 28,14,96,668 30.93
(c) NBFCs registered with RBI 4,59,400 0.05
(d) Any Other (specify)
TRUSTS 23,52,133 0.26
NON RESIDENT INDIANS 1,01,51,831 1.12
CLEARING MEMBERS 0 0.00
BODIES CORPORATES 10,26,87,531 11.28
Sub- Total (B) (2) 39,71,47,563 43.64
Total Public Unit holding 77,34,99,100 85.00
(B) = (B)(1)+(B)(2)
Total Units Outstanding 90,99,99,200 100.00
(C) = (A) + (B)

10. Depositories 14. Address for Correspondence including Investors

The name and addresses of the Depositories are as under: Grievances
Principal Place of Business and Contact Details of the
National Securities Depository Limited: Trade World, Trust
A Wing, 4th floor, Kamala Mills Compound, Senapathi POWERGRID Infrastructure Investment Trust
Bapat Marg, Lower Parel, Mumbai – 400 013, Maharashtra. SEBI Reg. No.- IN/InvIT/20-21/0016
Plot No. 2, Sector 29, Gurgaon - 122 001, Haryana.
Central Depository Services (India) Limited: Marathon Company Secretary & Compliance Officer:
Ms. Anjana Luthra
Futurex, A-Wing, 25th floor, NM Joshi Marg, Lower Parel,
Tel: +91 124 282 3177
Mumbai - 400 013, Maharashtra.
E-mail: [email protected]
Website: www.pginvit.in
11. Name and Designation of Compliance Officer
Registered Office and Contact Details of the Investment
Ms. Anjana Luthra
Manager
Company Secretary & Compliance Officer
POWERGRID Unchahar Transmission Limited
Plot No. 2, Sector - 29, Gurgaon - 122 001, Haryana.
CIN: U65100DL2012GOI246341
Tel: +91 124 282 3177 B-9, Qutab Institutional Area,
E-mail: [email protected] Katwaria Sarai, New Delhi – 110 016
Website: www.pginvit.in Contact Person: Ms. Anjana Luthra
Tel: +91 124 282 3177
12. Statutory Auditors E-mail: [email protected]
M/s. S.K. Mittal & Co. Chartered Accountants Website: www.putl.in
Firm Registration Number: 001135N
Registered Office and Contact Details of Registrar &
13. Valuer Transfer Agent
KFin Technologies Limited
M/s INMACS Valuers Private Limited, registered as a
Selenium Tower-B, Plot No. 31 & 32, Financial District,
Valuer with Insolvency and Bankruptcy Board of India in
Nanakramguda, Serilingampally, Rangareddy, Hyderabad,
accordance with applicable laws.
Telangana - 500 032, India.
Registration number: IBBI/RV-E/02/2021/141 Tel: +91 040-67162222
E-mail: [email protected]
Investor Grievance
E-mail: [email protected]
[email protected]
[email protected]

66 POWERGRID Infrastructure Investment Trust

 CORPORATE OVERVIEW STATUTORY REPORTS FINANCIAL STATEMENTS

Annexure-A

Secretarial Compliance Report of POWERGRID Infrastructure Investment Trust (PGInvIT)

(SEBI Registration No.: IN/InvIT/20-21/0016)
for the financial year ended March 31, 2024

I, Niti Sethi, Practicing Company Secretary, have examined: (ii) the Securities Contracts (Regulation) Act, 1956
(“SCRA”), rules made thereunder and the
all the documents and records of POWERGRID
(a)  Regulations, circulars and guidelines issued
Infrastructure Investment Trust (“PGInvIT”/ “Listed thereunder by the Securities and Exchange Board
Entity”) made available to us and explanation provided of India (“SEBI”);
by POWERGRID Unchahar Transmission Limited, acting
as Investment Manager to PGInvIT (the “Investment The specific Regulations, whose provisions and the circulars/
Manager”), guidelines issued thereunder, have been examined, include: -

(b) the filings / submissions made by the Investment Manager (a) Securities and Exchange Board of India (Infrastructure
to the stock exchanges, Investment Trusts) Regulations, 2014;

(c) website of PGInvIT, (b) Securities and Exchange Board of India (Listing Obligations
and Disclosure Requirements) Regulations, 2015, to the
(d) any other document/ filing, as may be relevant, which extent applicable;
has been relied upon to make this certification, for the
financial year ended March 31, 2024 (“Review Period”) (c) Securities and Exchange Board of India (Prohibition of
in respect of compliance with the provisions of : Insider Trading) Regulations, 2015;

(i) the Securities and Exchange Board of India Act, (d) other Regulations as applicable;
1992 (“SEBI Act”) and the Regulations, circulars,
and circulars/ guidelines issued thereunder.
guidelines issued thereunder; and

Based on the above examination, I hereby report that, during the Review Period:
(a) The Investment Manager of PGInvIT has complied with the provisions of the above Regulations and circulars/ guidelines
issued thereunder, except in respect of matters specified below:

Sr. No. Compliance Requirement (Regulations/ Deviations Observations/ Remarks of the

circulars/ guidelines including specific clause) Practicing Company Secretary
NIL

(b) The Investment Manager of PGInvIT has maintained proper records under the provisions of the above Regulations and circulars
/ guidelines issued thereunder insofar as it appears from my examination of those records.

(c) The following are the details of actions taken against PGInvIT, parties to PGInvIT, its promoters, directors, either by SEBI or by
Stock Exchanges (including under the Standard Operating Procedures issued by SEBI through various circulars) under the
aforesaid Acts/Regulations and circulars / guidelines issued thereunder:

Sr. No. Action taken by Details Details of action taken Observations/Remarks of

of Violation e.g. fines, warning letters the Practicing Company
debarment, etc. Secretary, if any.
NIL action taken against PGInvIT
Please refer Appendix-I for details of action taken against parties to PGInvIT

Annual Report 2023-24 67

(d) The Investment Manager of PGInvIT has taken following actions to comply with the observations made in previous reports:

Sr. No. Observations of Observations made in the Actions Comments of the Practicing
the Practicing secretarial compliance taken by the Company Secretary on the
Company Secretary report for the year ended… Investment actions taken by the InvIT
in the previous reports Manager, if any
Not Applicable

Sd/-
Niti Sethi
Place: New Delhi Company Secretary in Practice
Date: May 23, 2024 ACS No.:3211
UDIN: A003211F000420529 CP No. :17100

Appendix-I

Details of actions taken against PGInvIT, parties to PGInvIT, its promoters, directors, either by SEBI or by Stock Exchanges (including
under the Standard Operating Procedures issued by SEBI through various circulars) under the aforesaid Acts/ Regulations and
circulars/ guidelines issued thereunder:
i. Trustee to PGInvIT i.e. IDBI Trusteeship Services Limited
Sr. No. Action taken by Details Details of Action Taken Observations/Remarks of
of Violation e.g. fines, warning letters the practicing Company
Debarment etc. Secretary, if any
NIL

ii. Investment Manager to PGInvIT i.e. POWERGRID Unchahar Transmission Limited

Sr. No. Action taken by Details Details of Action Taken Observations/Remarks of
of Violation e.g. fines, warning letters the practicing Company
Debarment etc. Secretary, if any
NIL

iii. Sponsor and Project Manager to PGInvIT i.e. Power Grid Corporation of India Limited (“POWERGRID”)
Sr. Action taken by Details of Details of Action Observations / Remarks of the practicing Company
No. Violation Taken e.g. fines, Secretary, if any
warning letters
Debarment etc.
1. National Stock Non- Imposition of fine of As per disclosure made by POWERGRID to NSE and BSE
Exchange of India compliance ` 5,36,900/- each by (vide letter dated August 25, 2023), the following inter-
Limited (“NSE”) of Regulation NSE & BSE alia is noted:
and BSE Limited 17(1) of the
“POWERGRID, vide letter dt. 22.08.2023, has
(“BSE”) SEBI (LODR)
requested NSE & BSE to grant waiver of the fine
Regulations,
w.r.t. non-compliance of Regulation 17(1) of the
2015
SEBI (LODR) Regulations, 2015. POWERGRID, being a
Government Company within the meaning of Section
2(45) of the Companies Act, 2013, the power to
appoint functional/ Official Part-time Directors/ non-
Official Part-time Directors (Independent Directors)
vests with the President of India. The said non-
compliance of Regulation 17(1) of the SEBI (LODR)
Regulations, 2015 for the quarter ended 30th June,
2023 was not a lapse on the part of the Company.
The matter has been regularly taken up with
Administrative Ministry i.e. Ministry of Power for filling
up the vacant posts of Independent Directors (including
one woman Independent Director).”

68 POWERGRID Infrastructure Investment Trust

CORPORATE OVERVIEW STATUTORY REPORTS FINANCIAL STATEMENTS

Sr. Action taken by Details of Details of Action Observations / Remarks of the practicing Company
No. Violation Taken e.g. fines, Secretary, if any
warning letters
Debarment etc.
2. NSE & BSE Non- Imposition of fine of As per disclosure made by POWERGRID to NSE and BSE
compliance ` 5,42,800/- each by (vide letter dated November 24, 2023), the following
of Regulation NSE & BSE inter-alia is noted:
17(1) of the
“POWERGRID, vide letter dt. 22.11.2023, has requested
SEBI (LODR)
NSE & BSE to grant waiver of the fine w.r.t. non-compliance
Regulations,
of Regulation 17(1) of the SEBI (LODR) Regulations,
2015
2015. POWERGRID, being a Government Company
within the meaning of Section 2(45) of the Companies
Act, 2013, the power to appoint functional / Official
Part-time Directors / non-Official Part-time Directors
(Independent Directors) vests with the President of
India. The said non-compliance of Regulation 17(1) of
the SEBI (LODR) Regulations, 2015 for the quarter ended
30th September, 2023 was not a lapse on the part of the
Company. The matter has been regularly taken up with
Administrative Ministry i.e. Ministry of Power for filling
up the vacant posts of Independent Directors (including
one woman Independent Director).”
3. NSE & BSE Non- Imposition of fine of As per disclosure made by POWERGRID to NSE and
compliance ` 5,42,800/- each by BSE (vide letter dated February 23, 2024), the following
of Regulation NSE & BSE inter-alia is noted:
17(1) of the
“POWERGRID vide letter dt. 23.02.2024 has requested NSE
SEBI (LODR)
& BSE to grant waiver of the fine w.r.t. non-compliance
Regulations,
of Regulation 17(1) of the SEBI (LODR) Regulations,
2015
2015. POWERGRID, being a Government Company
within the meaning of Section 2(45) of the Companies
Act, 2013, the power to appoint functional/ Official
Part-time Directors/ non-Official Part-time Directors
(Independent Directors) vests with the President of
India. The said non-compliance of Regulation 17(1) of
the SEBI (LODR) Regulations, 2015 for the quarter ended
December 31, 2023 was not a lapse on the part of the
Company. The matter has been regularly taken up with
Administrative Ministry i.e. Ministry of Power for filling
up the vacant posts of Independent Directors (including
one woman Independent Director).”

Annual Report 2023-24 69

Financial
Statements
71 Standalone Financials
104 Consolidated Financials
 CORPORATE OVERVIEW STATUTORY REPORTS FINANCIAL STATEMENTS

Independent Auditor’s Report

To, accepted in India, of the state of affairs of the Trust as at 31
The Unit Holders of POWERGRID Infrastructure Investment Trust March 2024, its profit and total comprehensive income, change
in unit holders’ equity Trust and its cash flows for the year ended
 EPORT ON THE AUDIT OF THE STANDALONE
R 31 March 2024, its net assets at fair value as at 31 March 2024, its
FINANCIAL STATEMENTS total returns at fair value and the net distributable cash flows for
the year ended on that date.
Opinion
 e have audited the accompanying standalone financial
W Basis for Opinion
statements of POWERGRID Infrastructure Investment Trust
 e conducted our audit of the standalone financial statements
W
(“the Trust”/”PGInvIT”), which comprise the Balance Sheet as
in accordance with the Standards on Auditing (SAs) issued
at 31 March 2024, the Statement of Profit and Loss including
by Institute of Chartered Accountants of India (“ICAI”).
the Other Comprehensive Income, the statement of change in
Our responsibilities under those Standards are further described
Unit Holders’ equity, the Statement of Cash Flows for the year
in the Auditor’s Responsibility for the Audit of the Financial
then ended, the Statement of Net Assets at fair value as at 31
Statements section of our report. We are independent of the
March 2024, the Statement of Total Returns at fair value, the
Trust in accordance with the Code of Ethics issued by the
Statement of Net Distributable cash Flows (‘NDCFs’) for the year
ICAI and we have fulfilled our other ethical responsibilities in
then ended and notes to the standalone financial statements
accordance with the ‘ICAI’s Code of Ethics. We believe that the
including a summary of significant accounting policies and
audit evidence we have obtained is sufficient and appropriate to
other explanatory information (hereinafter referred to as “the
provide a basis for our audit opinion on the standalone financial
standalone financial statements”).
statements.
In our opinion and to the best of our information and according
Key Audit Matters
to the explanations given to us, the standalone financial
statements give the information required by the Securities Key audit matters are those matters that, in our professional
and Exchange Board of India (Infrastructure Investment Trusts) judgment, were of most significance in our audit of the
Regulations, 2014 as amended from time to time including any standalone financial statements of the current period.
guidelines and circulars issued thereunder in the manner so These matters were addressed in the context of our audit of the
required and give a true and fair view in conformity with Indian standalone financial statements as a whole, and in forming our
Accounting Standards (Ind AS) and/or any addendum thereto as opinion thereon, and we do not provide a separate opinion on
defined in the Rule 2(1)(a) of the Companies (Indian Accounting these matters. We have determined the matters described below
Standards) Rule, 2015 and other accounting principles generally to be the key audit matters to be communicated in our report.

S.No Key Audit Matters How our audit addressed the key audit matter
1 Assessing Impairment of investments in subsidiaries In making the assessment of the recoverable amount,
As at 31 March 2024, the carrying value of Trust’s investment in we relied on the valuation report issued by the
subsidiaries amounted to `31,089.84 million. independent valuer appointed by the Investment
Manager in accordance with SEBI InvIT Regulations.
Management reviews regularly whether there are any indicators of
impairment of such investments by reference to the requirements
under Ind AS. Management performs its impairment assessment
by comparing the carrying value of these investments made to
their recoverable amount to determine whether impairment
needs to be recognized.

For impairment testing, value in use has been determined by

forecasting and discounting future cash flows of subsidiaries.
Further, the value in use is highly sensitive to changes in critical
variable used for forecasting the future cash flows including
discounting rates. The determination of the recoverable amount
from subsidiaries involves significant judgment and accordingly,
the evaluation of impairment of investments in subsidiaries has
been determined as a key audit matter.
2 Computation and disclosures as prescribed in the InvIT Our audit procedures include the following:
regulations relating to Statement of Net Assets at Fair • Read the requirements of SEBI InvIT regulations
Value and Total Returns at Fair Value for disclosures relating to Statement of Net Assets
As per the provisions of InvIT Regulations, the Trust is required at Fair Value and Statement of Total Returns at
to disclose Statement of Net Assets at Fair Value and Statement Fair Value.

Annual Report 2023-24 71

S.No Key Audit Matters How our audit addressed the key audit matter
of Total Returns at Fair Value which requires fair valuation of • Reviewed and verified the disclosures in the
assets. For this purpose, fair value is determined by forecasting standalone financial statements for compliance
and discounting future cash flows. The inputs to the valuation with the relevant requirements of InvIT
models are taken from observable markets where possible, but Regulations.
where this is not feasible, a degree of judgement is required in
•  Relied on the valuation report issued by
establishing fair values. Judgements include considerations of
the independent valuer appointed by the
inputs such as WACC, Tax rates, Inflation rates etc.
Investment Manager in accordance with SEBI
Accordingly, the aforementioned computation and disclosures InvIT Regulations.
are determined to be a key audit matter in our audit of the
standalone financial statements
3 Related party transactions and disclosures Our audit procedures, included the following:
The Trust has undertaken transactions with its related parties in • Obtained, read and assessed the Trust’s policies,
the normal course of business. These include providing loans to processes and procedures in respect of identifying
SPVs, interest on such loans, fees for services provided by related related parties, evaluating of arm’s length,
parties to Trust etc. as disclosed in Note no. 26 of the standalone obtaining necessary approvals, recording and
financial statements. disclosure of related party transactions, including
compliance of transactions and disclosures in
We identified the accuracy and completeness of related party
accordance with InvIT regulations.
transactions and its disclosure as set out in respective notes to
the standalone financial statements as a key audit matter due to • We tested, on a sample basis, related party
the significance of transactions with related parties during the transactions with the underlying contracts and
year ended 31 March 2024 and regulatory compliance thereon. other supporting documents for appropriate
authorization and approval for such transactions.
• We read minutes of Board and its relevant
committee meetings in connection with
transactions with related parties affected during
the year and Trust’s assessment of related party
transactions being in the ordinary course of
business at arm’s length and in accordance with
the InvIT regulations.
• Assessed and tested the disclosures made in
accordance with the requirements of Ind AS and
InvIT regulations.

INFORMATION OTHER THAN THE STANDALONE therein, we shall communicate the matter to those charged with
FINANCIAL STATEMENTS AND AUDITOR’S REPORT the governance.
THEREON
MANAGEMENT’S RESPONSIBILITY FOR THE
The management of POWERGRID Unchahar Transmission Limited
STANDALONE FINANCIAL STATEMENTS
(“Investment Manager”) is responsible for the preparation of the
other information. The other information comprises the information The Management of POWERGRID Unchahar Transmission Limited
that may be included in the Management Discussion and Analysis, (‘Investment Manager’), is responsible for the preparation of these
Investment Manger’s report including Annexures to Investment standalone financial statements that give a true and fair view of
Manager’s Report and Investment Manager’s Information but the financial position as at 31 March 2024, financial performance
does not include the standalone financial statements and our including other comprehensive income, movement of the unit
auditor’s report thereon. The other information as identified holders’ equity and cash flows for the year ended 31 March 2024,
above is expected to be made available to us after the date of this its net assets at fair value as at 31 March 2024, its total returns at fair
Auditor’s Report. value and the net distributable cash flows of the Trust for the year
ended 31 March 2024, in accordance with accounting principles
Our opinion on the standalone financial statements does not cover generally accepted in India, including the Indian Accounting
the other information and we do not express any form of assurance Standards (Ind AS) and/or any addendum thereto as defined in
conclusion thereon. Rule 2(1)(a) of the Companies (Indian Accounting Standards) Rules,
In connection with our audit of the standalone financial statements, 2015, as amended read with the Securities and Exchange Board
our responsibility is to read the other information identified above of India (Infrastructure Investment Trusts) Regulations, 2014 as
when it becomes available and, in doing so, consider whether the amended from time to time including any guidelines and circulars
other information is materially inconsistent with the standalone issued thereunder (together referred to as the” InvIT Regulations”).
financial statements or our knowledge obtained during the course Responsibility also includes maintenance of adequate accounting
of our audit or otherwise appears to be materially misstated. records in accordance with the provisions of InvIT Regulations
for safeguarding of the assets of the Trust and for preventing
When we read those documents including annexures, if any and detecting frauds and other irregularities; selection and
thereon, if we conclude that there is a material misstatement application of appropriate accounting policies; making judgments

72 POWERGRID Infrastructure Investment Trust

 CORPORATE OVERVIEW STATUTORY REPORTS FINANCIAL STATEMENTS

and estimates that are reasonable and prudent; for ensuring the • Evaluate the overall presentation, structure and content
accuracy and completeness of the accounting records, relevant to of the financial statements, including the disclosures, and
the preparation and presentation of the financial statements that whether the standalone financial statements represent the
give a true and fair view and are free from material misstatement, underlying transactions and events in a manner that achieves
whether due to fraud or error. fair presentation.

In preparing the standalone financial statements, management Materiality is the magnitude of misstatements in the standalone
is responsible for assessing the Trust’s ability to continue as financial statements that, individually or in aggregate, makes
going concern, disclosing as applicable, matters related to going it probable that the economic decisions of a reasonably
concern and using the going concern basis of accounting unless knowledgeable user of the financial statements may be influenced.
management either intends to liquidate the Trust or to cease We consider quantitative materiality and qualitative factors in
operations, or has no realistic alternative but to do so. (i) planning the scope of our audit work and in evaluating the
results of our work; and (ii) to evaluate the effect of any identified
The Investment Manager is also responsible for overseeing the misstatements in the standalone financial statements.
Trust’s financial reporting process.
We communicate with those charged with governance regarding,
AUDITOR’S RESPONSIBILITIES FOR THE AUDIT OF among other matters, the planned scope and timing of the audit
STANDALONE FINANCIAL STATEMENTS and significant audit findings, including any significant deficiencies
in internal control that we identify during our audit.
Our objectives are to obtain reasonable assurance about whether
the financial statements as a whole are free from material We also provide those charged with governance with a statement
misstatement, whether due to fraud or error, and to issue an that we have complied with relevant ethical requirements regarding
auditor’s report that includes our opinion. Reasonable assurance independence, and to communicate with them all relationships
is a high level of assurance but is not a guarantee that an audit and other matters that may reasonably be thought to bear on our
conducted in accordance with SAs will always detect a material independence, and where applicable, related safeguards.
misstatement when it exists. Misstatements can arise from fraud or
error and are considered material if, individually or in the aggregate, From the matters communicated with those charged with
they could reasonably be expected to influence the economic governance, we determine those matters that were of most
decisions of users taken on the basis of these financial statements. significance in the audit of the standalone financial statements
of the current period and are therefore, the key audit matters.
As part of an audit in accordance with SAs, we exercise professional We describe these matters in our auditor’s report unless law or
judgment and maintain professional scepticism throughout the regulation precludes public disclosure about the matter or when,
audit. We also: in extremely rare circumstances, we determine that a matter
should not be communicated in our report because the adverse
• Identify and assess the risks of material misstatement of the consequences of doing so would reasonably be expected to
standalone financial statements, whether due to fraud or outweigh the public interest benefits of such communication.
error, design and perform audit procedures responsive to
those risks, and obtain audit evidence that is sufficient and Report on Other Legal and Regulatory Requirements
appropriate to provide a basis for our opinion. The risk of not Based on our audit and as required by InvIT Regulations, we
detecting a material misstatement resulting from fraud is report that:
higher than for one resulting from error, as fraud may involve
a) We have obtained all the information and explanations which,
collusion, forgery, intentional omissions, misrepresentations,
to the best of our knowledge and belief were necessary for
or the override of internal control.
the purpose of our audit;
• Obtain an understanding of internal financial controls b) The Balance Sheet, the Statement of Profit and Loss including
relevant to the audit in order to design audit procedures Other Comprehensive Income, Statement of Changes in Unit
that are appropriate in the circumstances, but not for the Holder’s Equity and the Statement of Cash Flow dealt with by
purpose of expressing an opinion on the effectiveness of this report are in agreement with the books of account of the
such controls. Trust; and

• Evaluate the appropriateness of accounting policies used c) In our opinion, the aforesaid standalone financial statements
and the reasonableness of accounting estimates and related comply with the Accounting Standards (Ind AS) and/or any
disclosures made by management. addendum thereto as defined in Rule 2(1)(a) of the Companies
(Indian Accounting Standards) Rules, 2015, as amended.
• Conclude on appropriateness of management’s use of the
going concern basis of accounting and, based on the audit d) There were no amounts which were required to be transferred
evidence obtained, whether a material uncertainty exists to the Investor Education and Protection Fund by the Trust.
related to events or conditions that may cast significant doubt
on the Trust’s ability to continue as a going concern. If we For S.K.Mittal & Co.
conclude that a material uncertainty exists, we are required Chartered Accountants
to draw attention in our auditor’s report to the related
FRN: 001135N
disclosure in the financial statement or, if such disclosures
are inadequate, to modify our opinion. Our conclusions are
based on the audit evidence obtained up to date of our Place: New Delhi (CA Gaurav Mittal)
auditor’s report. However, future events or conditions may UDIN: 24099387BKBEMK3472 Partner
cause the Trust to cease to continue as a going concern. Dated: 22 May 2024 Membership No.: 099387

Annual Report 2023-24 73

Standalone Balance Sheet
as at 31 March 2024

` in million
Particulars Note As at As at
No 31 March 2024 31 March 2023
ASSETS
Non-current assets
Financial Assets
 Investments 3 31,089.84 29,778.25
 Loans 4 49,092.52 51,197.84
Other non-current assets 5 8.43 2.64
80,190.79 80,978.73
Current assets
Financial Assets
 Loans 6 12.24 -
 Cash and cash equivalents 7 2,966.50 2,911.23
 Bank balances other than Cash and cash equivalents 8 125.51 123.14
 Other current financial assets 9 3.18 1.66
3,107.43 3,036.03
Total Assets 83,298.22 84,014.76
EQUITY AND LIABILITIES
Equity
Unit capital 10 90,999.92 90,999.92
Other Equity 11 (13,397.73) (12,707.63)
77,602.19 78,292.29
Liabilities
Non-current Liabilities
Financial Liabilities
Borrowings 12 5,663.71 5,692.00
Other Non-current liabilities 13 0.02 -
5,663.73 5,692.00
Current liabilities
Financial Liabilities
 Borrowings 14 28.78 28.78
 Trade payables
Total outstanding dues of micro enterprises - -
and small enterprises
 Total outstanding dues of creditors other than micro - -
enterprises and small enterprises.
 Other current financial liabilities 15 3.31 1.48
Other current liabilities 16 0.21 0.21
Provisions 17 - -
Current Tax Liabilities (Net) 18 - -
32.30 30.47
Total Equity and Liabilities 83,298.22 84,014.76
The accompanying notes (1 to 34) form an integral part of financial statements.

As per our report of even date For and on behalf of Board of Directors of POWERGRID Unchahar Transmission Limited in
For S.K.Mittal & Co. the capacity as Investment Manager to POWERGRID Infrastructure Investment Trust.
Chartered Accountants
FRN: 001135N Anjana Luthra Abhay Choudhary Purshottam Agarwal
Company Secretary Chairman Director
PAN: ABYPL2312H DIN: 07388432 DIN: 08812158
Place: Gurugram Place: Mumbai Place: Mumbai

(CA Gaurav Mittal) A Sensarma Amit Garg

Membership Number: 099387 CEO CFO
Place: New Delhi PAN: AEXPS3591K PAN: ACSPG1833F
Place: Gurugram Place: Gurugram
Date: 22 May 2024

74 POWERGRID Infrastructure Investment Trust

 CORPORATE OVERVIEW STATUTORY REPORTS FINANCIAL STATEMENTS

Standalone Statement of Profit and Loss

for the year ended 31 March 2024

` in million
Particulars Note For the Year ended on For the Year ended on
No 31 March 2024 31 March 2023
INCOME
Revenue From Operations 19 9,454.02 10,490.36
Other Income 20 79.46 57.00
Total Income 9,533.48 10,547.36
EXPENSES
Valuation Expenses 0.46 0.19
Payment to Auditor
 - Statutory Audit Fees 0.13 0.12
 - Other Services (Including Tax Audit & Certifications) 0.12 0.11
Investment manager fees 99.57 93.08
Trustee fee 0.35 0.35
Other expenses 21 11.84 13.04
Finance costs 22 468.71 414.33
Impairment/(Reversal of Impairment) of Investment in Subsidiaries (1,311.59) 12,762.76
Total Expenses (730.41) 13,283.98
Profit for the period before tax 10,263.89 (2,736.62)
Tax Expense:
Current Tax - Current Year 34.00 24.36
- Earlier Years - -
Deferred Tax - -
34.00 24.36
Profit for the period after tax 10,229.89 (2,760.98)
Other Comprehensive Income
Items that will not be reclassified to profit or loss - -
Items that will be reclassified to profit or loss - -
Total Comprehensive Income for the period 10,229.89 (2,760.98)
Earnings Per Unit
Basic (In Rupees) 11.24 (3.03)
Diluted (In Rupees) 11.24 (3.03)
The accompanying notes (1 to 34) form an integral part of financial statements.

As per our report of even date For and on behalf of Board of Directors of POWERGRID Unchahar Transmission Limited in
For S.K.Mittal & Co. the capacity as Investment Manager to POWERGRID Infrastructure Investment Trust.
Chartered Accountants
FRN: 001135N Anjana Luthra Abhay Choudhary Purshottam Agarwal
Company Secretary Chairman Director
PAN: ABYPL2312H DIN: 07388432 DIN: 08812158
Place: Gurugram Place: Mumbai Place: Mumbai

(CA Gaurav Mittal) A Sensarma Amit Garg

Membership Number: 099387 CEO CFO
Place: New Delhi PAN: AEXPS3591K PAN: ACSPG1833F
Place: Gurugram Place: Gurugram
Date: 22 May 2024

Annual Report 2023-24 75

Standalone Statement of Changes in
Unitholders’ Equity
for the year ended 31 March 2024

A. UNIT CAPITAL ` in million

Balance as at 01 April 2023 90,999.92
Units issued during the year -
Balance as at 31 March 2024 90,999.92
Balance as at 01 April 2022 90,999.92
Units issued during the year -
Balance as at 31 March 2023 90,999.92

B. OTHER EQUITY ` in million

Retained Earnings
Balance as at 01 April 2023 (12,707.63)
Profit for the year 10,229.89
Distribution during the year*^ (10,919.99)
Balance as at 31 March 2024 (13,397.73)
Balance as at 01 April 2022 973.34
Profit for the year (2,760.98)
Distribution during the year*^^ (10,919.99)
Balance as at 31 March 2023 (12,707.63)
The accompanying notes (1 to 34) form an integral part of financial statements.
* The distributions made by Trust to its Unitholders are based on the Net Distributable Cash flows (NDCF) of PGInvIT under the InvIT Regulations which includes repayment of
debt by SPVs to PGInvIT.
^ The distribution for year ended 31 March 2024 does not include the distribution relating to the quarter ended 31 March 2024, as the same will be paid subsequently.
^^ The distribution for year ended 31 March 2023 does not include the distribution relating to the quarter ended 31 March 2023, as the same was paid subsequent to the year
ended 31 March 2023.

As per our report of even date For and on behalf of Board of Directors of POWERGRID Unchahar Transmission Limited in
For S.K.Mittal & Co. the capacity as Investment Manager to POWERGRID Infrastructure Investment Trust.
Chartered Accountants
FRN: 001135N Anjana Luthra Abhay Choudhary Purshottam Agarwal
Company Secretary Chairman Director
PAN: ABYPL2312H DIN: 07388432 DIN: 08812158
Place: Gurugram Place: Mumbai Place: Mumbai

(CA Gaurav Mittal) A Sensarma Amit Garg

Membership Number: 099387 CEO CFO
Place: New Delhi PAN: AEXPS3591K PAN: ACSPG1833F
Place: Gurugram Place: Gurugram
Date: 22 May 2024

76 POWERGRID Infrastructure Investment Trust

 CORPORATE OVERVIEW STATUTORY REPORTS FINANCIAL STATEMENTS

Standalone Statement of Cash Flows

for the year ended 31 March 2024

` in million
Particulars For the Year ended on For the Year ended on
31 March 2024 31 March 2023
A. CASH FLOWS FROM OPERATING ACTIVITIES
Profit before tax 10,263.89 (2,736.62)
Adjustments for:
Impairment of investment in subsidiary (1,311.59) 12,762.76
Interest income on loans given to subsidiaries (7,344.28) (7,545.27)
Finance cost 468.71 414.33
Interest income on fixed deposits (63.79) (46.35)
Dividend received from subsidiaries (2,109.74) (2,945.09)
Operating Profit/ (loss) before changes in Assets and Liabilities (96.80) (96.24)
Adjustment for changes in Assets and Liabilities:
- (Increase)/Decrease in Other current financial assets (0.01) 2.38
- (Increase)/Decrease in Earmarked balance with banks (2.37) 1.28
- Increase/(Decrease) in Other current financial liabilities 1.83 (6.67)
- Increase/(Decrease) in Other current liabilities - (0.78)
- Increase/(Decrease) in Provisions - (1.49)
- Increase/(Decrease) in Other non-current liabilities 0.02 (0.05)
Cash generated from operations (97.33) (101.57)
Direct taxes paid (net of refunds) (39.79) (27.11)
Net cash flow used in operating activities (137.12) (128.68)
B. Cash flows from investing activities
Loans given to subsidiaries (146.92) -
Repayment of Loans given to subsidiaries 2,240.00 1,185.00
Interest income on loans given to subsidiaries 7,344.28 7,545.27
Investment in Fixed Deposits (Net) - (122.68)
Interest income on fixed deposits 62.28 45.37
Dividend received from subsidiaries 2,109.74 2,945.09
Net cash flow from investing activities 11,609.38 11,598.05
C. Cash flow from financing activities
Repayment of borrowings (28.78) (28.78)
Payment of interest on long term borrowings (468.22) (413.83)
Payment of distribution on unit capital (10,919.99) (10,919.99)
Net cash flow used in financing activities (11,416.99) (11,362.60)
Net increase in cash and cash equivalents (A + B + C) 55.27 106.77
Cash and cash equivalents as at beginning of year 2,911.23 2,804.46
Cash and cash equivalents as at year end 2,966.50 2,911.23

Components of Cash and cash equivalents: ` in million

Balances with banks As at As at
31 March 2024 31 March 2023
On current accounts 0.12 0.52
Deposit with original maturity of 3 months or less 2,966.38 2,910.71
Total cash and cash equivalents 2,966.50 2,911.23

The accompanying notes (1 to 34) form an integral part of financial statements.

Annual Report 2023-24 77

Standalone Statement of Cash Flows
for the year ended 31 March 2024

Reconciliation between opening and closing balances for liabilities arising from financing activities (including current
maturities) :-
₹ in million
Particulars As at As at
31 March 2024 31 March 2023
Long term borrowings
Balance at the beginning of the year 5,720.78 5,749.06
Cash flow
- Interest (468.22) (413.83)
- Proceeds/(repayments) (28.78) (28.78)
Accrual 468.71 414.33
Balance at the end of the year 5,692.49 5,720.78

As per our report of even date For and on behalf of Board of Directors of POWERGRID Unchahar Transmission Limited in
For S.K.Mittal & Co. the capacity as Investment Manager to POWERGRID Infrastructure Investment Trust.
Chartered Accountants
FRN: 001135N Anjana Luthra Abhay Choudhary Purshottam Agarwal
Company Secretary Chairman Director
PAN: ABYPL2312H DIN: 07388432 DIN: 08812158
Place: Gurugram Place: Mumbai Place: Mumbai

(CA Gaurav Mittal) A Sensarma Amit Garg

Membership Number: 099387 CEO CFO
Place: New Delhi PAN: AEXPS3591K PAN: ACSPG1833F
Place: Gurugram Place: Gurugram
Date: 22 May 2024

78 POWERGRID Infrastructure Investment Trust

 CORPORATE OVERVIEW STATUTORY REPORTS FINANCIAL STATEMENTS

Statement of Net Assets at Fair Value

as at 31 March 2024

A. STATEMENT OF NET ASSETS AT FAIR VALUE

₹ in million
Sl. No. Particulars As at 31 March 2024 As at 31 March 2023
Book value Fair value* Book value Fair value*
A Assets 83,298.22 83,298.22 84,014.76 84,014.76
B Liabilities (at book value) 5,696.03 5,696.03 5,722.47 5,722.47
C Net Assets (A-B) 77,602.19 77,602.19 78,292.29 78,292.29
D Number of units 910.00 910.00 910.00 910.00
E NAV (C/D) 85.28 85.28 86.04 86.04

*Fair value of the assets as disclosed in the above tables are derived based on the fair valuation report issued by the independent valuer appointed under
SEBI (Infrastructure Investment Trusts) Regulations, 2014.

The Trust holds investment in SPVs in the form of equity and debt and SPVs in turn hold the projects. Hence, the breakup of property
wise fair values has been disclosed in the Consolidated financial statements.

B. STATEMENT OF TOTAL RETURNS AT FAIR VALUE

₹ in million
Particulars As at As at
31 March 2024 31 March 2023
Total Comprehensive Income (As per the Statement of Profit and Loss)# 10,229.89 (2,760.98)
Add/(less): Other Changes in Fair Value (e.g., in investment property, property, - -
plant & equipment (if cost model is followed)) not recognized in Total
Comprehensive Income
Total Return 10,229.89 (2,760.98)

#Total comprehensive income as per Profit & Loss statement captures the impact of fair valuation through impairment of Investment in subsidiaries.
Same is based on the fair valuation report of the independent valuer appointed under SEBI (Infrastructure Investment Trusts) Regulations, 2014.

Annual Report 2023-24 79

Additional disclosures as required by SEBI Master Circular No. SEBI/HO/DDHS-PoD-2/P/CIR/2023/115 dated July 06, 2023

A) STATEMENT OF NET DISTRIBUTABLE CASH FLOWS (NDCFS) OF PGINVIT

₹ in million
Particulars For the year ended For the year ended
31 March 2024 31 March 2023
Cash flows received from Portfolio Assets in the form of interest/accrued 7,344.28 7,545.27
interest/ additional interest
Add: Cash flows received from Portfolio Assets in the form of dividend 2,109.74 2,945.09
Add: Cash flows/ Proceeds from the Portfolio Assets towards the repayment of 2,240.00 1,185.00
the debt issued to the Portfolio Assets by the Trust
Add: Cash Flow / Proceeds from the Portfolio Assets for a capital reduction by - -
way of a buy back or any other means as permitted, subject to applicable law
Add: Cash Flow / Proceeds from the sale of the Portfolio Assets not distributed - -
pursuant to an earlier plan to reinvest, or if such proceeds are not intended to
be invested subsequently
Less: Costs/retentions associated with sale of the Portfolio Assets - -
(a) Related debts settled or due to be settled from sale proceeds of Portfolio
Assets
(b) Transaction costs paid on sale of the assets of the Portfolio Assets; and
(c) Capital gains taxes on sale of assets/shares in Portfolio Assets/other
investments
Add: Any other income accruing at the Trust level and not captured above, 79.46 57.00
including but not limited to interest/return on surplus cash invested by the
Trust
Total cash inflow at the InvIT level (A) 11,773.48 11,732.36
Less: Any payment of fees, interest and expenses incurred at the Trust level, (578.84) (527.65)
including but not limited to the fees of the Investment Manager, Trustee,
Auditor, Valuer, Credit Rating Agency
Less: Reimbursement of expenses in relation to the Initial Public Issue of units - -
of the Trust, if any
Less: Repayment of external debt (principal), net of any debt raised by (28.78) (28.78)
refinancing of existing debt or/and any new debt raised
Less: Net cash set aside to comply with DSRA under loan agreements, if any. - (122.68)
Less: Income tax (if applicable) at the standalone Trust level and payment of (39.79) (27.11)
other statutory dues
Less: Proceeds reinvested or planned to be reinvested as per Regulation 18(7)(a) - -
of the InvIT Regulations
Less: Amount invested in any of the Portfolio Assets for service of debt or (146.92) -
interest
Less: Any provision or reserve deemed necessary by the Investment Manager - -
for expenses which may be due in the intervening period till next proposed
distribution, but for which there may not be commensurate amounts available
by the date such expenses become due.
Add: Net proceeds from fresh issuance of units by the Trust
Add/Less: Any other adjustment to be undertaken by the IM Board to ensure (1.52) 0.62
that there is no double counting of the same item for the above calculations
Total cash outflow/retention at the InvIT level (B) (795.85) (705.60)
Net Distributable Cash Flows (C) = (A+B) 10,977.63 11,026.76

80 POWERGRID Infrastructure Investment Trust

 CORPORATE OVERVIEW STATUTORY REPORTS FINANCIAL STATEMENTS

Notes
to the Standalone Financial Statements for the year ended March 31, 2024

1. TRUST INFORMATION 2. MATERIAL ACCOUNTING POLICY INFORMATION


POWERGRID Infrastructure Investment Trust A summary of the material accounting policy information
(“PGInvIT”/”Trust”) was set up on 14 September applied in the preparation of the financial statements
2020 as an irrevocable trust, pursuant to the Trust Deed, are as given below. These accounting policies have
under the provisions of the Indian Trusts Act, 1882. been applied consistently to all periods presented in the
The Trust was registered with SEBI on 7 January 2021 as financial statements.
an infrastructure investment trust under Regulation 3(1)
of the InvIT Regulations having registration number IN/ 2.1 Basis for Preparation
InvIT/20-21/0016. i) Compliance with Ind AS and InvIT Regulations
These financial statements are the separate financial
Power Grid Corporation of India Limited (“POWERGRID”)
statements of the Trust and comprise of the
is the Sponsor to the Trust. IDBI Trusteeship Services
Balance Sheet as at 31 March 2024, the Statement
Limited is the Trustee to the Trust. POWERGRID Unchahar
of Profit and Loss including the Statement of Other
Transmission Limited (“PUTL”) is appointed as the
Comprehensive Income, the Statement of Cash
investment manager and POWERGRID is appointed as the
Flow and the Statement of Changes in Unitholders’
project manager to the Trust.
Equity for the year then ended and the Statement
of Net Assets at fair value as at 31 March 2024 and
The investment objectives of the Trust are to carry
the Statement of Total Returns at fair value and the
on the activities of and to make investments as an
Statement of Net Distributable Cash Flows (‘NDCFs’)
infrastructure investment trust as permissible in terms
for the year then ended and a summary of significant
of SEBI (Infrastructure Investment Trusts) Regulations,
accounting policies and other explanatory notes
2014 read with circulars and guidelines, notifications
prepared in compliance with Indian Accounting
and amendments issued thereunder (collectively the
Standards (Ind AS) notified under Section 133 of
“InvIT Regulations”), and in accordance with the Trust
the Companies Act, 2013 (the Act), Companies
Deed. The investment of the Trust shall be in any manner
(Indian Accounting Standards) Rules, 2015 and InvIT
permissible under, and in accordance with the InvIT
Regulations, in each case, to the extent applicable
Regulations and applicable law including in holding
and as amended thereafter
companies and/or special purpose vehicles and/or
infrastructure projects and/or securities in India.
ii) Basis of Measurement
PGInvIT is holding special purpose vehicle (“SPV”) / The financial statements have been prepared on
subsidiaries which are infrastructure projects engaged in accrual basis and under the historical cost convention
the power transmission business in India. Details of the except certain financial assets and liabilities measured
same as on 31 March 2024 are as follows: at fair value (Refer Note no. 2.7 for accounting policy
regarding financial instruments).

Name of the SPV Equity

iii) Functional and presentation currency
Holding
The financial statements are presented in Indian
1. Vizag Transmission Limited (“VTL”) 100%
Rupees (Rupees or ₹), which is the Trust’s functional
(formerly POWERGRID Vizag
and presentation currency and all amounts are
Transmission Limited (“PVTL”))
rounded to the nearest million and two decimals
2. POWERGRID Kala Amb Transmission 74% thereof, except as stated otherwise.
Limited (“PKATL”)
3. POWERGRID Parli Transmission 74% iv) Use of estimates
Limited (“PPTL”)
The preparation of financial statements requires
4. POWERGRID Warora Transmission 74% estimates and assumptions that affect the reported
Limited (“PWTL”) amount of assets, liabilities, revenue and expenses
5. POWERGRID Jabalpur Transmission 74% during the reporting period. Although, such
Limited (“PJTL”) estimates and assumptions are made on a reasonable
and prudent basis taking into account all available
The standalone financial statements for the year ended 31 information, actual results could differ from these
March 2024, were approved by the Board of Directors of estimates. The estimates and underlying assumptions
Investment manager on 22 May 2024. are reviewed on an on-going basis. Revisions to

Annual Report 2023-24 81

Notes
to the Standalone Financial Statements for the year ended March 31, 2024

accounting estimates are recognised in the period that the transaction to sell the asset or transfer the liability
in which the estimate is revised if the revision effects takes place either:
only that period or in the period of the revision and
future periods if the revision affects both current • In the principal market for the asset or liability, or
and future years (Refer Note no. 24 on Significant
• In the absence of a principal market, in the most
accounting judgements, estimates and assumptions).
advantageous market for the asset or liability.

v) Current and non-current classification

The principal or the most advantageous market must be
The Trust presents assets and liabilities in the balance accessible by the Trust.
sheet based on current/non-current classification.
An asset is current when it is: The fair value of an asset or a liability is measured using
the assumptions that market participants would use
• Expected to be realized or intended to be sold when pricing the asset or liability, assuming that market
or consumed in normal operating cycle; participants act in their economic best interest.

• Held primarily for the purpose of trading;

A fair value measurement of a non-financial asset takes
• Expected to be realized within twelve months into account a market participant’s ability to generate
after the reporting period; or economic benefits by using the asset in its highest and
best use or by selling it to another market participant that
• Cash or cash equivalent unless restricted would use the asset in its highest and best use.
from being exchanged or used to settle a
liability for at least twelve months after the The Trust uses valuation techniques that are appropriate
reporting period. in the circumstances and for which sufficient data are
available to measure fair value, maximising the use of
All other assets are classified as non-current. relevant observable inputs and minimising the use of
unobservable inputs.
A liability is current when:

• It is expected to be settled in normal All assets and liabilities for which fair value is measured
operating cycle; or disclosed in the financial statements are categorised
within the fair value hierarchy, described as follows, based
• It is held primarily for the purpose of trading; on the lowest level input that is significant to the fair value
measurement as a whole:
• It is due to be settled within twelve months after
the reporting period; or Level 1- Quoted (unadjusted) market prices in active
markets for identical assets or liabilities;
• There is no unconditional right to defer
settlement of the liability for at least twelve
Level 2- Valuation techniques for which the lowest level
months after the reporting period.
input that is significant to the fair value measurement is
All other liabilities are classified as non-current. directly or indirectly observable;

Deferred tax assets/liabilities are classified as Level 3- Valuation techniques for which the lowest level
non-current. input that is significant to the fair value measurement is
unobservable.
The Trust recognizes twelve months period as its
operating cycle. For assets and liabilities that are recognised in the
financial statements on a recurring basis, the Trust
2.2 Fair value measurement determines whether transfers have occurred between
The Trust measures financial instruments at fair value at levels in the hierarchy by re-assessing categorisation
each balance sheet date. (based on the lowest level input that is significant to the
fair value measurement as a whole) at the end of each
Fair value is the price that would be received to sell an reporting period.
asset or paid to transfer a liability in an orderly transaction
between market participants at the measurement date. In estimating the fair value of investments in subsidiaries,
The fair value measurement is based on the presumption the Trust engages independent qualified external

82 POWERGRID Infrastructure Investment Trust

 CORPORATE OVERVIEW STATUTORY REPORTS FINANCIAL STATEMENTS

Notes
to the Standalone Financial Statements for the year ended March 31, 2024

valuers to perform the valuation. The management any indication of impairment considering the provisions
works closely with the external valuers to establish the of Ind AS 36 ‘Impairment of Assets’. If any such indication
appropriate valuation techniques and inputs to the model. exists, then the asset’s recoverable amount is estimated.
The management in conjunction with the external valuers
also compares the change in fair value with relevant The recoverable amount of an asset or cash-generating unit
external sources to determine whether the change is is the higher of its fair value less costs to disposal and its
reasonable. The management reports the valuation report value in use. In assessing value in use, the estimated future
and findings to the Board of the Investment Manager half cash flows are discounted to their present value using a
yearly to explain the cause of fluctuations in the fair value discount rate that reflects current market assessments of
of the projects. the time value of money and the risks specific to the asset
for which the estimates of future cash flows have not been
At each reporting date, the management analyses the
adjusted. For the purpose of impairment testing, assets
movement in the values of assets and liabilities which are
that cannot be tested individually are grouped together
required to be remeasured or reassessed as per the Trust’s
into the smallest group of assets that generates cash
accounting policies. For this analysis, the management
inflows from continuing use that are largely independent
verifies the major inputs applied in the latest valuation by
of the cash inflows of other assets or groups of assets (the
agreeing the information in the valuation computation
“cash-generating unit”, or “CGU”).
based upon relevant documents.

For the purpose of fair value disclosures, the Trust has An impairment loss is recognized if the carrying amount
determined classes of assets and liabilities on the basis of of an asset or its CGU exceeds its estimated recoverable
the nature, characteristics and risks of the asset or liability amount. Impairment losses are recognized in the
and the level of the fair value hierarchy, as explained above. statement of profit and loss. Impairment losses recognized
in respect of CGUs are reduced from the carrying amounts
This note summarises accounting policy for fair value. of the assets of the CGU.
Other fair value related disclosures are given in the
relevant notes. Impairment losses recognized in prior periods are assessed
at each reporting date for any indications that the loss
• Quantitative disclosures of fair value measurement
has decreased or no longer exists. An impairment loss is
hierarchy (Note 25)
reversed if there has been a change in the estimates used
• Disclosures for valuation methods, significant to determine the recoverable amount. An impairment
estimates and assumptions (Note 24 and Note 25) loss is reversed only to the extent that the asset’s carrying
amount does not exceed the carrying amount that would
• Financial instruments (including those carried at have been determined, net of depreciation or amortization,
amortised cost) (Note 3,4,6,9) if no impairment loss had been recognized.

2.3 Borrowing Cost 2.5 Cash and cash equivalents

Borrowing costs directly attributable to the acquisition Cash and cash equivalents include cash on hand and at
or construction of qualifying assets are capitalized (net of bank, and deposits held at call with banks having a maturity
income on temporary deployment of funds) as part of the of three months or less from the date of acquisition that
cost of such assets till the assets are ready for the intended are readily convertible to a known amount of cash and are
use. Qualifying assets are assets which take a substantial subject to an insignificant risk of changes in value.
period of time to get ready for their intended use.
2.6 Leases
All other borrowing costs are recognised in Statement of
Profit and Loss in the period in which they are incurred. Lease is a contract that conveys the right to control the
use of an identified asset for a period of time in exchange
Borrowing costs includes interest expenses, other costs for consideration.
in connection with borrowing of fund and exchange
differences to the extent regarded as an adjustment to To assess whether a contract conveys the right to control
borrowing costs. the use of an identified asset, the Trust assesses whether:
(i) the contract involves use of an identified asset, (ii) the
2.4 Impairment of non-financial asset customer has substantially all the economic benefits from
The carrying amounts of the Trust’s non-financial assets are the use of the asset through the period of the lease and (iii)
reviewed at least annually to determine whether there is the customer has the right to direct the use of the asset.

Annual Report 2023-24 83

Notes
to the Standalone Financial Statements for the year ended March 31, 2024

i) As a Lessee Net investment in leased assets is recorded as

 t the date of commencement of the lease,
A receivables at the lower of the fair value of the leased
the Trust recognises a right-of-use asset (ROU) property and the present value of the minimum lease
and a corresponding lease liability for all lease payments as Lease Receivables under current and
arrangements in which it is a lessee, except for lease non-current other financial assets.
with a term of twelve months or less (i.e. short term
leases) and leases for which the underlying asset The interest element of lease is accounted in the
is of low value. For these short-term and leases for Statement of Profit and Loss over the lease period
which the underlying asset is of low value, the trust based on a pattern reflecting a constant periodic rate
recognizes the lease payments on straight-line basis of return on the net investment.
over the term of the lease.
b) Operating leases
Certain lease arrangements includes the options to
An operating lease is a lease other than a finance
extend or terminate the lease before the end of the
lease. Leases in which a significant portion of the
lease term. ROU assets and lease liabilities includes
these options when it is reasonably certain that they risks and rewards of ownership are retained by the
will be exercised. lessor are classified as operating leases.

For operating leases, the asset is capitalized as

The right-of-use assets are initially recognized at
property, plant and equipment and depreciated over
cost, which comprises the amount of the initial
measurement of the lease liability adjusted for any its economic life. Rental income from operating lease
lease payments made at or before the inception is recognized over the term of the arrangement.
date of the lease along with any initial direct costs,
2.7 Financial Instruments
restoration obligations and lease incentives received.
A financial instrument is any contract that gives rise to
Subsequently, the right-of-use assets is measured at a financial asset of one entity and a financial liability or
cost less any accumulated depreciation, accumulated
equity instrument of another entity.
impairment losses, if any and adjusted for any
remeasurement of the lease liability. The trust applies Financial Assets
Ind AS 36 to determine whether a ROU asset is
impaired and accounts for any identified impairment Classification
loss as described in the accounting policy 2.4 on
“Impairment of non-financial assets”. The Trust classifies its financial assets in the following
categories:
The lease liability is initially measured at present value
of the lease payments that are not paid at that date. • at amortised cost,

• at fair value through other comprehensive income

The interest cost on lease liability is expensed in
the Statement of Profit and Loss, unless eligible • at fair value through profit and loss
for capitalization as per accounting policy 2.3 on
“Borrowing costs”. The classification depends on the following:

Lease liability and ROU asset have been separately • the entity’s business model for managing the
presented in the financial statements and lease financial assets and
payments have been classified as financing
cash flows. • the contractual cash flow characteristics of the
financial asset
ii) As a Lessor
Initial recognition and measurement
A lease is classified at the inception date as a finance
lease or an operating lease. All financial assets are recognised initially at fair value
plus, in the case of financial assets not recorded at fair
a) Finance leases value through profit or loss, transaction costs, if any, that
A lease that transfers substantially all the risks are attributable to the acquisition of the financial asset.
and rewards incidental to ownership of an asset However, trade receivables that do not contain a significant
is classified as a finance lease. financing component are measured at transaction price.

84 POWERGRID Infrastructure Investment Trust

 CORPORATE OVERVIEW STATUTORY REPORTS FINANCIAL STATEMENTS

Notes
to the Standalone Financial Statements for the year ended March 31, 2024

Subsequent measurement the contractual rights to receive the cash flows

Debt Instruments at Amortised cost: Assets that are held of the financial assets, but assumes a contractual
for collection of contractual cash flows where those cash obligation to pay the cash flows to one or more
flows represent solely payments of principal and interest recipients and
are measured at amortised cost. A gain or loss on a debt
b) the trust has transferred substantially all the
investment that is subsequently measured at amortised
risks and rewards of the asset (or) the trust has
cost is recognised in profit or loss when the asset is
neither transferred nor retained substantially
derecognised or impaired. Interest income from these
all the risks and rewards of the asset, but has
financial assets is included in finance income using the
transferred control of the asset.
effective interest rate method.
T he difference between the carrying amount and the
Debt Instruments at Fair value through other
amount of consideration received/receivable is recognised
comprehensive income (FVOCI): Assets that are held for
in the Statement of Profit and Loss.
collection of contractual cash flows and for selling the
financial assets, where the assets’ cash flows represent Impairment of financial assets:
solely payments of principal and interest, are measured at
fair value through other comprehensive income (FVOCI). F or trade receivables and contract assets, the trust applies
On derecognition of the asset, cumulative gain or loss the simplified approach required by Ind AS 109 Financial
previously recognised in OCI is reclassified from the equity Instruments, which requires expected lifetime losses to be
to profit and loss. Interest income from these financial recognised from initial recognition of the receivables.
assets is included in finance income using the effective
F or recognition of impairment loss on other financial assets
interest rate method.
and risk exposure, the trust determines whether there has
Debt instruments at Fair value through profit or loss been a significant increase in the credit risk since initial
(FVPL): Assets that do not meet the criteria for amortised recognition. If credit risk has not increased significantly,
cost or FVOCI are measured at fair value through profit 12-month Expected Credit Loss (ECL) is used to provide
or loss. Interest income and net gain or loss on a debt for impairment loss. However, if credit risk has increased
instrument that is subsequently measured at FVPL are significantly, lifetime ECL is used. If, in a subsequent period,
recognised in statement of profit and loss and presented credit quality of the instrument improves such that there
within other income in the period in which it arises. is no longer a significant increase in credit risk since
initial recognition, then the entity reverts to recognizing
Equity investments impairment loss allowance based on 12 -month ECL.

All equity investments in scope of Ind AS 109 ‘Financial Financial Liabilities

Instruments’ are measured at fair value. The trust may,
on initial recognition, make an irrevocable election to Financial liabilities of the Trust are contractual obligation
present subsequent changes in the fair value in other to deliver cash or another financial asset to another entity
comprehensive income (FVOCI) on an instrument or to exchange financial assets or financial liabilities with
by-instrument basis. another entity under conditions that are potentially
unfavourable to the Trust.
For equity instruments classified as at FVOCI, all fair value
changes on the instrument, excluding dividends are The Trust’s financial liabilities include loans & borrowings,
recognized in the OCI. There is no recycling of the amounts trade and other payables.
from OCI to Profit or Loss, even on sale of investment. Classification, initial recognition and measurement
However, the Trust may transfer the cumulative gain or
loss within equity. Financial liabilities are recognised initially at fair value
minus transaction costs that are directly attributable to
Derecognition of financial assets the issue of financial liabilities.
A financial asset is derecognized only when Subsequent measurement
i) The right to receive cash flows from the asset have After initial recognition, financial liabilities are
expired, or subsequently measured at amortised cost using the
EIR method. Amortised cost is calculated by taking into
ii) a) The trust has transferred the rights to receive account any discount or premium on acquisition and
cash flows from the financial asset (or) retains fees or costs that are an integral part of the effective

Annual Report 2023-24 85

Notes
to the Standalone Financial Statements for the year ended March 31, 2024

interest rate (EIR). Any difference between the proceeds Exchange differences arising on settlement or translation
(net of transaction costs) and the redemption amount is of monetary items are recognised in profit or loss.
recognised in the Statement of Profit and Loss over the
period of the borrowings using the EIR. Gains and losses Non-monetary items that are measured in terms of
are recognised in Statement of Profit and Loss when the
historical cost in a foreign currency are translated using
liabilities are derecognised.
the exchange rates at the dates of the initial transactions.
The EIR amortisation is included as finance costs in the
Statement of Profit and Loss. 2.10 Income Tax

Derecognition of financial liability Income tax expense represents the sum of current and
deferred tax. Tax is recognised in the Statement of Profit
A financial liability is derecognised when the obligation and Loss, except to the extent that it relates to items
under the liability is discharged or cancelled or expires. recognised directly in equity or other comprehensive
When an existing liability is replaced by another from the
income. In this case the tax is also recognised directly in
same lender on substantially different terms, or the terms
of an existing liability are substantially modified, such an equity or in other comprehensive income.
exchange or modification is treated as the derecognition
of the original liability and the recognition of a new Current income tax
liability. The difference between the carrying amount of a The Current Tax is based on taxable profit for the year
financial liability that has been extinguished or transferred under the tax laws enacted and applicable to the reporting
to another party and the consideration paid, including
period in the countries where the trust operates and
any non-cash assets transferred or liabilities assumed, is
recognised in Statement of Profit and Loss as other income generates taxable income and any adjustment to tax
or finance cost. payable in respect of previous years.

Offsetting of financial instruments Deferred tax

Financial assets and financial liabilities are offset and the Deferred tax is recognised on temporary differences
net amount is reported in the Balance Sheet if there is a between the carrying amounts of assets and liabilities
currently enforceable legal right to offset the recognised in the trust’s financial statements and the corresponding
amounts and there is an intention to settle on a net basis, tax bases used in the computation of taxable profit
to realise the assets and settle the liabilities simultaneously.
and is accounted for using the Balance Sheet method.
2.8 Investment in subsidiaries Deferred tax assets are generally recognised for all
deductible temporary differences, unused tax losses and
T he Trust accounts for its investments in subsidiaries at
unused tax credits to the extent that it is probable that
cost less accumulated impairment losses (if any) in its
separate financial statements. The cost comprises price future taxable profits will be available against which those
paid to acquire investment and directly attributable cost. deductible temporary differences, unused tax losses and
unused tax credits can be utilised. The carrying amount of
Investments accounted for at cost are accounted for in
deferred tax assets is reviewed at each Balance Sheet date
accordance with Ind AS 105, ‘Non-current Assets Held for
and reduced to the extent that it is no longer probable that
Sale and Discontinued Operations’, when they are classified
as held for sale. sufficient taxable profits will be available against which the
temporary differences can be utilised.
2.9 Foreign Currencies Translation
Deferred tax assets and liabilities are measured at the tax
T he Trust’s financial statements are presented in INR,
which is its functional currency. The Trust does not have rates that are expected to apply in the period in which the
any foreign operation. liability is settled or the asset realised, based on tax rates
(and tax laws) that have been enacted or substantively
Transactions and balances enacted by the Balance Sheet date.
Transactions in foreign currencies are initially recorded by
the Trust at the exchange rate prevailing on the date of Deferred tax assets and liabilities are offset if there is a
transaction. Monetary assets and liabilities denominated legally enforceable right to offset current tax liabilities and
in foreign currencies are translated with reference to the assets, and they relate to income taxes levied by the same
rates of exchange ruling on the date of the reporting date. tax authority.

86 POWERGRID Infrastructure Investment Trust

 CORPORATE OVERVIEW STATUTORY REPORTS FINANCIAL STATEMENTS

Notes
to the Standalone Financial Statements for the year ended March 31, 2024

2.11 Revenue These are reviewed at each balance sheet date and are
Interest income adjusted to reflect the current management estimate.

For all debt/debt instruments measured at amortised cost,

Contingent liabilities are disclosed when there is a
interest income is recorded using the effective interest rate
possible obligation arising from past events, the existence
(EIR). EIR is the rate that exactly discounts the estimated
of which will be confirmed only by the occurrence or
future cash payments or receipts over the expected life
non-occurrence of one or more uncertain future events
of the financial instrument or a shorter period, where
not wholly within the control of the Trust or a present
appropriate, to the gross carrying amount of the financial
obligation that arises from past events where it is either
asset or to the amortised cost of a financial liability.
not probable that an outflow of resources will be required
When calculating the effective interest rate, the Trust
to settle or a reliable estimate of the amount cannot be
estimates the expected cash flows by considering all the
made. Information on contingent liability is disclosed in
contractual terms of the financial instrument (for example,
the Notes to the Financial Statements.
prepayment, extension, call and similar options) but does
not consider the expected credit losses.
Contingent assets are possible assets that arise from past
events and whose existence will be confirmed only by the
Dividends
occurrence or non-occurrence of one or more uncertain
Income from dividend on investments is accrued in the future events not wholly within the control of the Trust.
year in which it is declared, whereby the Trust’s right to Contingent assets are disclosed in the financial statements
receive is established. when inflow of economic benefits is probable on the
basis of judgment of management. These are assessed
2.12 Cash distributions to unitholders continually to ensure that developments are appropriately
The Trust recognises a liability to make cash distributions to reflected in the financial statements.
unitholders when the distribution is authorised, and a legal
obligation has been created. As per the InvlT Regulations, a 2.14 Prior Period Items
distribution is authorised when it is approved by the Board Material prior period errors are corrected retrospectively
of Directors of the Investment Manager. A corresponding by restating the comparative amounts for prior period
amount is recognised directly in equity presented in which the error occurred or if the error
occurred before the earliest period presented, by restating
2.13 Provision and contingencies the opening balance sheet.
Provisions
Provisions are recognised when the Trust has a present 2.15 Earnings per unit
obligation (legal or constructive) as a result of a past event, Basic earnings per unit is computed using the net
it is probable that an outflow of resources embodying profit or loss for the year attributable to the unitholders
economic benefits will be required to settle the obligation and weighted average number of shares outstanding
and a reliable estimate can be made of the amount of during the year.
the obligation. If the effect of the time value of money
is material, provisions are discounted. Unwinding of the Diluted earnings per unit is computed using the net profit
discount is recognised in the Statement of Profit and or loss for the year attributable to the unitholders and
Loss as a finance cost. Provisions are reviewed at each weighted average number of units and potential units
Balance Sheet date and are adjusted to reflect the current outstanding during the year, except where the result
best estimate. would be anti-dilutive.

Contingencies 2.16 Statement of Cash Flows

Contingent liabilities are disclosed on the basis of Statement of Cash flows is prepared as per indirect method
judgment of the management / independent experts. prescribed in the Ind AS 7 ‘Statement of Cash Flows’.

Annual Report 2023-24 87

Notes
to the Standalone Financial Statements for the year ended March 31, 2024

NOTE 3/ INVESTMENTS
₹ in million
Particulars As at As at
31 March 2024 31 March 2023
Investment in Equity Instruments (Fully paid up) at cost
Unquoted
Subsidiary Companies
Vizag Transmission Limited
20,97,30,000 Shares of ₹ 10 each. 11,091.91 14,453.20
Less: Impairment/(Reversal of Impairment) 22.86 3,361.29
11,069.05 11,091.91
POWERGRID Kala Amb Transmission Limited
4,51,40,000 Shares of ₹ 10 each. 1,513.31 1,985.20
Less: Impairment/(Reversal of Impairment) (36.55) 471.89
1,549.86 1,513.31
POWERGRID Parli Transmission Limited
23,83,54,000 Shares of ₹ 10 each. 6,836.46 9,409.17
Less: Impairment/(Reversal of Impairment) (502.59) 2,572.71
7,339.05 6,836.46
POWERGRID Warora Transmission Limited
29,10,42,000 Shares of ₹ 10 each. 6,298.49 9,748.17
Less: Impairment/(Reversal of Impairment) (536.99) 3,449.68
6,835.48 6,298.49
POWERGRID Jabalpur Transmission Limited
16,79,13,400 Shares of ₹ 10 each. 4,038.08 6,945.27
Less: Impairment/(Reversal of Impairment) (258.32) 2,907.19
4,296.40 4,038.08
TOTAL 31,089.84 29,778.25

Further Notes:
Details of the subsidiaries are as follows:
Name of Subsidiary Country of Ownership Interest % Ownership Interest %
Incorporation as on 31 March 2024 as on 31 March 2023
Vizag Transmission Limited India 100% 100%
POWERGRID Kala Amb Transmission Limited India 74% 74%
POWERGRID Parli Transmission Limited India 74% 74%
POWERGRID Warora Transmission Limited India 74% 74%
POWERGRID Jabalpur Transmission Limited India 74% 74%

POWERGRID Infrastructure Investment Trust (the “Trust”) has paid the consideration for acquisition of 74% equity share capital of
Vizag Transmission Limited (‘VTL’), POWERGRID Kala Amb Transmission Limited (‘PKATL’), POWERGRID Parli Transmission Limited
(‘PPTL’), POWERGRID Warora Transmission Limited (‘PWTL’) and POWERGRID Jabalpur Transmission Limited (‘PJTL’) from Power Grid
Corporation of India Limited on 13 May 2021 pursuant to separate share purchase agreements.

Remaining 26% equity share capital of VTL was acquired by the Trust on 31 March 2022 as per share purchase agreement dated 22
April 2021 and now trust hold 100% equity share of VTL.

88 POWERGRID Infrastructure Investment Trust

 CORPORATE OVERVIEW STATUTORY REPORTS FINANCIAL STATEMENTS

Notes
to the Standalone Financial Statements for the year ended March 31, 2024

NOTE 4/ LOANS
₹ in million
Particulars As at As at
31 March 2024 31 March 2023
Unsecured, Considered good
Loans to Related Parties
Loans to Subsidiaries* 49,092.52 51,197.84
TOTAL 49,092.52 51,197.84

Further Notes:

* Details of loans to related parties is provided in Note 26.

*Loans are non-derivative financial assets. The Loan amounting to ` 48,957.84 million to SPVs presently carries an interest rate of 14.5% (Fourteen
and half per cent) per annum payable quarterly, however, the same can be reset by mutual agreement between Parties. The loans are repayable by the
subsidiaries upon expiry of period of their respective Transmission Services Agreement. Further, the subsidiaries are entitled to prepay all or any portion of
the outstanding principal with a prior notice.

The Loan amounting to ₹ 146.92 million (Current maturities amounting to ₹ 12.24 million- Refer Note no.6) to PKATL presently carries an interest rate of
10.5% (Ten and half per cent) per annum payable quarterly however, the same can be reset by mutual agreement between Parties. The loan shall be repaid
through equal quarterly installment in 12 years starting from First quarter of FY 2024-25. The SPV is entitled to prepay all or any portion of the outstanding
principal amounts of the Loan without any prepayment penalty or premium.

NOTE 5/ OTHER NON-CURRENT ASSETS

₹ in million
Particulars As at As at
31 March 2024 31 March 2023
Advance Tax and Tax Deducted at Source 78.03 38.24
Less: Tax Liabilities (Refer Note 18) (69.60) (35.60)
Total 8.43 2.64

NOTE 6/ LOANS
₹ in million
Particulars As at As at
31 March 2024 31 March 2023
Unsecured, Considered good
Loans to Related Parties
Loans to Subsidiaries* 12.24 -
TOTAL 12.24 -

Further Notes:
* Details of loans to related parties is provided in Note 26
*Refer note no.4 for Loans to Subsidiaries.

Annual Report 2023-24 89

Notes
to the Standalone Financial Statements for the year ended March 31, 2024

NOTE 7/ CASH AND CASH EQUIVALENTS

₹ in million
Particulars As at As at
31 March 2024 31 March 2023
Balance with banks-
-In Current accounts 0.12 0.52
-In term deposits (with maturity of 3 months or less) 2,966.38 2,910.71
Total 2,966.50 2,911.23

Further Notes:

Balance in current account does not earn interest. Surplus money is transferred into Term Deposits.

NOTE 8/ BANK BALANCES OTHER THAN CASH AND CASH EQUIVALENTS

₹ in million
Particulars As at As at
31 March 2024 31 March 2023
Earmarked balance with banks (For Distribution Payments)* 2.83 0.46
In Term Deposits having maturity over 3 months but upto 12 months (DSRA) 122.68 122.68
Total 125.51 123.14
Further Notes:

*Earmarked balance with banks pertains to unclaimed distribution to unitholders.

NOTE 9/ OTHER CURRENT FINANCIAL ASSETS

₹ in million
Particulars As at As at
31 March 2024 31 March 2023
Unsecured, Considered good
Interest accrued on term deposits 3.17 1.66
Others 0.01 -
Total 3.18 1.66

NOTE 10/ UNIT CAPITAL

₹ in million
Particulars As at As at
31 March 2024 31 March 2023
Unit Capital
Issued, subscribed and paid up
909,999,200 units (Issue Price of ₹ 100 Each) 90,999.92 90,999.92
Total 90,999.92 90,999.92

Further Notes:

Terms/rights attached to Units

The Trust has only one class of units. Each Unit represents an undivided beneficial interest in the Trust. Each holder of unit is entitled to one vote per unit.
The Unitholders have the right to receive at least 90% of the Net Distributable Cash Flows of the Trust at least once in every six months in each financial
year in accordance with the InvIT Regulations.

90 POWERGRID Infrastructure Investment Trust

 CORPORATE OVERVIEW STATUTORY REPORTS FINANCIAL STATEMENTS

Notes
to the Standalone Financial Statements for the year ended March 31, 2024

A Unitholder has no equitable or proprietary interest in the projects of PGInvIT and is not entitled to any share in the transfer of the projects (or any part
thereof) or any interest in the projects (or any part thereof) of PGInvIT. A Unitholder’s right is limited to the right to require due administration of PGInvIT in
accordance with the provisions of the Trust Deed and the Investment Management Agreement.

Reconciliation of the number of units outstanding and the amount of unit capital:

Particulars No. of Units ₹ In million

As on 01 April 2023 909,999,200 90,999.92
Issued during the year - -
As on 31 March 2024 909,999,200 90,999.92
As on 01 April 2022 909,999,200 90,999.92
Issued during the year - -
As on 31 March 2023 909,999,200 90,999.92

During the FY 2021-22 the Trust has issued 909,999,200 units at the rate of ₹ 100.00 per unit. Out of which, Fresh issue comprised of 499,348,300 no. of units
and 410,650,900 no. of units allotted to the Sponsor. In compliance with InvIT Regulations, Sponsor retained 136,500,100 no. of units and made an Offer
for Sale for 274,150,800 no. of units.

Details of Sponsor holding:

Particulars No. of Units ₹ In million
Power Grid Corporation of India Limited (Sponsor) 136,500,100 15.00%

UNITHOLDERS HOLDING MORE THAN 5 (FIVE) PERCENT UNITS IN THE TRUST:

₹ in million
Name of Unitholder As at 31 March 2024 As at 31 March 2023
Nos. in million % holding Nos. in million % holding
POWER GRID CORPORATION OF INDIA LIMITED 136.50 15.00% 136.50 15.00%
(SPONSOR)
CPP INVESTMENT BOARD PRIVATE HOLDINGS 4 INC 91.84 10.09% 91.84 10.09%
NPS TRUST 64.65 7.10% 65.12 7.16%
CAPITAL INCOME BUILDER 46.44 5.10% 59.15 6.50%
HDFC TRUSTEE COMPANY LTD 39.57 4.35% 46.17 5.07%

NOTE 11/ OTHER EQUITY

₹ in million
Particulars As at As at
31 March 2024 31 March 2023
Retained Earnings
Balance at the beginning of the year (12,707.63) 973.34
Net Profit for the year 10,229.89 (2,760.98)
Distribution during the year (10,919.99) (10,919.99)
Balance at the end of the year (13,397.73) (12,707.63)

Retained earnings

Retained earnings are the profits earned till date, less any transfers to reserves and distributions paid to unitholders.

Annual Report 2023-24 91

Notes
to the Standalone Financial Statements for the year ended March 31, 2024

NOTE 12/ BORROWINGS

₹ in million
Particulars As at As at
31 March 2024 31 March 2023
Secured Indian Rupee Loan from Banks
Term loan from HDFC BANK LTD 5,698.29 5,727.07
Less: Current maturities 28.78 28.78
5,669.51 5,698.29
Less: Unamortised transaction cost 5.80 6.29
Total 5,663.71 5,692.00

Further Notes:

The term loan is secured by (i) first pari passu charge on entire current assets including loans and advances, any receivables accrued/realized from those
loans and advances extended by the Trust to its subsidiaries (direct or indirect) including loans to all project SPVs and future SPVs; (ii) First pari-passu
charge on Escrow account of the Trust and (iii) First and exclusive charge on Debt Service Reserve Account.

The term loan from bank was raised at the interest rate of 3 months T-Bill rate plus spread of 194 basis point and repayable in 64 quarterly installments of
varying amounts commencing from 30 June 2022. The spread has been revised to 127 basis points w.e.f. 9th July 2023

There have been no breaches in the financial covenants with respect to borrowings.

There has been no default in repayment of loans or payment of interest thereon as at the end of the year.

NOTE 13/ OTHER NON-CURRENT LIABILITIES

₹ in million
Particulars As at As at
31 March 2024 31 March 2023
Deposit/Retention money from contractors and others 0.02 -
Total 0.02 -

NOTE 14/ BORROWINGS

₹ in million
Particulars As at As at
31 March 2024 31 March 2023
Secured Indian Rupee Loan from Banks
Current maturities of Term loan from HDFC Bank Ltd. 28.78 28.78
Total 28.78 28.78

Refer Note no.12 for Borrowings.

NOTE 15/ OTHER CURRENT FINANCIAL LIABILITIES

₹ in million
Particulars As at As at
31 March 2024 31 March 2023
Unclaimed Distribution 2.83 0.46
Deposit/Retention money from contractors and others - 0.05
Others 0.48 0.97
Total 3.31 1.48

92 POWERGRID Infrastructure Investment Trust

 CORPORATE OVERVIEW STATUTORY REPORTS FINANCIAL STATEMENTS

Notes
to the Standalone Financial Statements for the year ended March 31, 2024

NOTE 16/ OTHER CURRENT LIABILITIES

₹ in million
Particulars As at As at
31 March 2024 31 March 2023
Statutory Dues 0.21 0.21
Total 0.21 0.21

NOTE 17/ PROVISIONS

₹ in million
Particulars As at As at
31 March 2024 31 March 2023
Provisions
As per last balance sheet - 1.49
Additions during the year 0.35 -
Adjustments during the year (0.35) (1.49)
Closing Balance - -

NOTE 18/ CURRENT TAX LIABILITIES (NET)

₹ in million
Particulars As at As at
31 March 2024 31 March 2023
Taxation (Including interest on tax)
As per last balance sheet 35.60 11.24
Additions during the year 34.00 24.36
Amount adjusted during the year - -
Total 69.60 35.60
Net off against Advance tax and TDS (Note 5) (69.60) (35.60)
Total - -

NOTE 19/ REVENUE FROM OPERATIONS

₹ in million
Particulars For the Year ended For the Year ended
on 31 March 2024 on 31 March 2023
Operating Revenue
Interest Income on Loans given to Subsidiaries 7,344.28 7,545.27
Dividend Income from Subsidiaries 2,109.74 2,945.09
Total 9,454.02 10,490.36

Further Note:

Disclosure with regard to Transactions with related parties is given in Note 26.

Annual Report 2023-24 93

Notes
to the Standalone Financial Statements for the year ended March 31, 2024

NOTE 20/ OTHER INCOME

₹ in million
Particulars For the Year ended For the Year ended
on 31 March 2024 on 31 March 2023
Other Income
Interest on Fixed Deposits 63.79 46.35
Miscellaneous Income 15.67 10.65
Total 79.46 57.00

NOTE 21/ OTHER EXPENSES

₹ in million
Particulars For the Year ended For the Year ended
on 31 March 2024 on 31 March 2023
Legal Expenses 1.69 1.90
RTA Fee 0.52 0.52
Professional Charges 1.87 2.26
Rating Fee 1.76 2.06
Listing Fee 4.72 4.72
Custodial Fee 0.58 0.46
Annual Meeting Expenses 0.43 0.38
Miscellaneous Expenses 0.27 0.74
Total 11.84 13.04

NOTE 22/ FINANCE COST

₹ in million
Particulars For the Year ended For the Year ended
on 31 March 2024 on 31 March 2023
Interest and finance charges on financial liabilities at amortised cost
Interest on Secured Indian Rupee Term Loan from Banks 468.22 413.83
Amortization of Upfront fee 0.49 0.50
Total 468.71 414.33

23. EARNINGS PER UNIT (EPU)

 asic EPU amounts are calculated by dividing the profit for the year attributable to unitholders by the weighted average number
B
of units outstanding during the year.

 iluted EPU amounts are calculated by dividing the profit attributable to unitholders by the weighted average number of units
D
outstanding during the period plus the weighted average number of units that would be issued on conversion of all the dilutive
potential units into unit capital.

The following reflects the profit and unit data used in the basic and diluted EPU computation:

₹ in million
Particulars For the Year ended For the Year ended
on 31 March 2024 on 31 March 2023
Profit after tax for calculating basic and diluted EPU (₹ in million) 10,229.89 (2,760.98)
Weighted average number of units in calculating basic and diluted EPU (No. in 910.00 910.00
million)
Earnings Per Unit
Basic (₹ /unit) 11.24 (3.03)
Diluted (₹ /unit) 11.24 (3.03)

94 POWERGRID Infrastructure Investment Trust

 CORPORATE OVERVIEW STATUTORY REPORTS FINANCIAL STATEMENTS

Notes
to the Standalone Financial Statements for the year ended March 31, 2024

24. 
SIGNIFICANT ACCOUNTING JUDGEMENTS, a) Fair Valuation and disclosure
ESTIMATES AND ASSUMPTIONS  SEBI Circulars issued under the InvIT Regulations
The preparation of the Trust’s financial statements require disclosures relating to net assets at fair
requires management to make judgments, estimates and value and total returns at fair value. In estimating
assumptions that affect the reported amounts of revenue, the fair value of investments in subsidiaries (which
expenses, assets and liabilities and the accompanying constitute substantial portion of the net assets),
disclosures. Uncertainty about these assumptions and the Trust engages independent qualified external
estimates could result in outcomes that require a material valuer, as mandated under InvIT Regulations, to
adjustment to the carrying amount of assets or liabilities perform the valuation. The management works
affected in future periods. closely with the valuers to establish the appropriate
valuation techniques and inputs for valuation.
Judgement The management reports the valuation report and
In the process of applying the Trust’s accounting policies, findings to the Board of the Investment Manager
management has made the following judgements, which half yearly to explain the cause of fluctuations
have the most significant effect on the amounts recognized in the fair value of the projects. The inputs for the
in the financial statements. valuation are taken from observable markets where
possible, but where this is not feasible, a degree of
a) Classification of Unitholders’ Funds judgement is required in establishing fair values.
Judgements include considerations of inputs such
 Under the provisions of the InvIT Regulations, PGInvIT
as WACC, Tax rates, Inflation rates, etc. Changes in
is required to distribute to unitholders not less than
assumptions about these factors could affect the
ninety percent of the net distributable cash flows of
fair value.
PGInvIT for each financial year. Accordingly, a portion
of the unitholders’ funds contains a contractual
b) Impairment of Investment in Subsidiaries
obligation of the Trust to pay to its unitholders
cash distributions. The unitholders’ funds could The provision for impairment/ (reversal of impairment)
therefore have been classified as compound financial of investments in subsidiaries is made based on the
instrument which contain both equity and liability difference between the carrying amounts and the
components in accordance with Ind AS 32 – ‘Financial recoverable amounts. The recoverable amount of
Instruments: Presentation’. However, in accordance the investments in subsidiaries has been computed
with SEBI Master Circular No. SEBI/HO/DDHS-PoD- by external independent valuation experts based on
2/P/CIR/2023/115 dated 06 July 2023 issued under value in use calculation for the underlying projects
the InvIT Regulations, the unitholders’ funds have (based on discounted cash flow model). On a periodic
been classified as equity in order to comply with the basis, according to the recoverable amounts of
mandatory requirements of Section H of Chapter 3 of individual portfolio assets computed by the valuation
the SEBI Master Circular dated 06 July 2023 dealing experts, the Trust tests impairment on the amounts
with the minimum disclosures for key financial invested in the respective subsidiary companies.
statements. In line with the above, the distribution
payable to unitholders is recognized as liability when c) Provisions and contingencies
the same is approved by the Investment Manager. The assessments undertaken in recognizing provisions
and contingencies have been made in accordance
Estimates and Assumptions with Ind AS 37 “Provisions, Contingent Liabilities
The key assumptions concerning the future and other key and Contingent Assets”. The evaluation of the
sources of estimation uncertainty at the reporting date, likelihood of the contingent events has required best
that have a significant risk of causing a material adjustment judgment by management regarding the probability
to the carrying amounts of assets and liabilities or fair value of exposure to potential loss. Should circumstances
disclosures within the next financial year, are described change following unforeseeable developments, this
below. The Trust based its assumptions and estimates likelihood could alter.
on parameters available when the financial statements
were prepared. Existing circumstances and assumptions d) Income Taxes:
about future developments, however, may change due to Significant estimates are involved in determining
market changes or circumstances arising that are beyond the provision for current and deferred tax, including
the control of the Trust. Such changes are reflected in the amount expected to be paid/recovered for uncertain
assumptions when they occur. tax positions.

Annual Report 2023-24 95

Notes
to the Standalone Financial Statements for the year ended March 31, 2024

25. FAIR VALUE MEASUREMENTS The inputs to the valuation models for computation of fair
value of assets for the above mentioned statements are
The management has assessed that the financial assets
taken from observable markets where possible, but where
and financial liabilities as at year end are reasonable
this is not feasible, a degree of judgement is required in
approximations of their fair values. establishing fair values. Judgements include considerations
of inputs such as WACC, Tax rates, Inflation rates, etc.
The Trust is required to present the statement of total
assets at fair value and statement of total returns at fair The significant unobservable inputs used in the fair
value as per SEBI Master Circular No. SEBI/HO/DDHS-PoD- value measurement required for disclosures categorised
2/P/CIR/2023/115 dated 06 July 2023 as a part of these within Level 3 of the fair value hierarchy together with a
financial statements- Refer Statement of Net Assets at Fair quantitative sensitivity analysis as at 31 March 2024 and 31
Value and Statement of Total Returns at Fair Value. March 2023 are as shown below:

₹ in million
Increase/(Decrease)
Input for Sensitivity of input
Significant unobservable input in fair value
31 March 2024 to the fair value
31 March 2024
9.00% (1,553.11)
WACC 8.79%
8.50% 2,201.61

₹ in million

Increase/(Decrease)
Input for Sensitivity of input in fair value
Significant unobservable input
31 March 2023 to the fair value
31 March 2023
9.50% (2,768.30)
WACC 9.01%
8.50% 3,134.54

Quantitative disclosures fair value measurement hierarchy for assets :

₹ in million
Particulars Date of valuation Level 1 Level 2 Level 3 Total
Assets for which fair values are 31 March 2024 - - 80,194.60 80,194.60
disclosed:
Investment in subsidiaries (Including loan 31 March 2023 - - 80,976.09 80,976.09
to subsidiaries)

There have been no transfers among Level 1, Level 2 and Level 3.

26. RELATED PARTY DISCLOSURES

(A) Disclosure as per Ind AS 24 - “Related Party Disclosures”
(i) Subsidiaries
Name of entity Place of business/ Proportion of Proportion of
country of Ownership Interest Ownership Interest
incorporation as at 31 March 2024 as at 31 March 2023
Vizag Transmission Limited India 100% 100%
POWERGRID Kala Amb Transmission Limited India 74% 74%
POWERGRID Parli Transmission Limited India 74% 74%
POWERGRID Warora Transmission Limited India 74% 74%
POWERGRID Jabalpur Transmission Limited India 74% 74%

96 POWERGRID Infrastructure Investment Trust

 CORPORATE OVERVIEW STATUTORY REPORTS FINANCIAL STATEMENTS

Notes
to the Standalone Financial Statements for the year ended March 31, 2024

(ii) Other related parties

Name of entity Place of business/ Relationship Proportion of Proportion of
country of with Trust Ownership Interest Ownership Interest
incorporation as at 31 March 2024 as at 31 March 2023
Power Grid Corporation of India Sponsor and Project 15% 15%
India Limited Manager / Entity with
significant influence

(B) Disclosure as per Regulation 2(1) (zv) of the InvIT Regulations

(i) Parties to Trust
Name of entity Place of business/ Relationship Proportion of Proportion of
country of with Trust Ownership Interest Ownership Interest
incorporation as at 31 March 2024 as at 31 March 2023
Power Grid Corporation of India Sponsor and Project 15% 15%
India Limited Manager
POWERGRID Unchahar India Investment Manager NA NA
Transmission Limited
IDBI Trusteeship Services India Trustee NA NA
Limited

(ii) Promoters of the parties to Trust specified in (i) above

Name of entity Promoter

Power Grid Corporation of India Limited Government of India

POWERGRID Unchahar Transmission Limited Power Grid Corporation of India Limited
IDBI Trusteeship Services Limited IDBI Bank Limited
Life Insurance Corporation of India
General Insurance Corporation of India

(iii) Directors of the parties to Trust specified in (i) above

a) Directors of Power Grid Corporation of India Limited:
Shri Ravindra Kumar Tyagi (Assumed charge of Chairman & Managing Director, POWERGRID w.e.f. 01.01.2024)
Shri Abhay Choudhary
Shri G. Ravisankar
Dr. Yatindra Dwivedi (Appointed as Director w.e.f. 31.08.2023)
Dr. Saibaba Darbamulla (Appointed as Director w.e.f. 18.05.2023)
Shri Chetan Bansilal Kankariya
Shri Ram Naresh Tiwari
Shri K. Sreekant (Ceased to be Director w.e.f. 31.12.2023)
Shri Vinod Kumar Singh (Ceased to be Director w.e.f. 31.05.2023)
Shri Korachara Nagappa Onkarappa (Ceased to be Director w.e.f. 13.12.2023)
Shri Mohammad Afzal (Ceased to be Director w.e.f. 17.05.2023)
Shri Dilip Nigam (Ceased to be Director w.e.f. 17.04.2024)

Annual Report 2023-24 97

Notes
to the Standalone Financial Statements for the year ended March 31, 2024

b) Directors of POWERGRID Unchahar Transmission Limited

Shri Abhay Choudhary
Shri Purshottam Agarwal (Appointed as Director w.e.f. 01.04.2023)
Shri Ram Naresh Tiwari
Shri Korachara Nagappa Onkarappa (Ceased to be Director w.e.f. 13.12.2023)
c) Key Managerial Personnel of POWERGRID Unchahar Transmission Limited
Shri A Sensarma (Appointed as CEO w.e.f. 01.02.2024)
Shri Sanjay Sharma (CEO) (Ceased as CEO w.e.f. 31.01.2024)
Shri Amit Garg (CFO)
Smt. Anjana Luthra (Company Secretary)
d) Directors of IDBI Trusteeship services Limited
Shri Jayakumar S. Pillai (Appointed as Director w.e.f. 18.07.2023)
Shri Pradeep Kumar Jain
Smt Jayashree Ranade
Shri Pradeep Kumar Malhotra
Ms. Baljinder Kaur Mandal
Shri J. Samuel Joseph (Ceased to be Director w.e.f. 18.04.2023)
(C) Related Party Transactions
(i) The outstanding balances of related parties are as follows:
₹ in million
Particulars As at As at
31 March 2024 31 March 2023
Loans given to subsidiaries (Unsecured)
Vizag Transmission Limited 7,779.88 7,839.88
POWERGRID Kala Amb Transmission Limited 1,916.92 1,860.00
POWERGRID Parli Transmission Limited 12,467.94 13,272.94
POWERGRID Warora Transmission Limited 15,167.07 15,987.07
POWERGRID Jabalpur Transmission Limited 11,772.95 12,237.95
Total 49,104.76 51,197.84

(ii) The transactions with related parties during the period are as follows: -
₹ in million
Particulars For the Year ended For the Year ended
on 31 March 2024 on 31 March 2023
Income - Interest on loans to subsidiaries
Vizag Transmission Limited 1,139.80 1,136.78
POWERGRID Kala Amb Transmission Limited 276.38 269.70
POWERGRID Parli Transmission Limited 1,895.05 1,962.94
POWERGRID Warora Transmission Limited 2,275.41 2,343.17
POWERGRID Jabalpur Transmission Limited 1,757.64 1,832.68
Total 7,344.28 7,545.27

98 POWERGRID Infrastructure Investment Trust

 CORPORATE OVERVIEW STATUTORY REPORTS FINANCIAL STATEMENTS

Notes
to the Standalone Financial Statements for the year ended March 31, 2024

₹ in million
Particulars For the Year ended For the Year ended
on 31 March 2024 on 31 March 2023
Income - Dividend received from subsidiaries
Vizag Transmission Limited 964.76 1,270.96
POWERGRID Kala Amb Transmission Limited 149.86 189.59
POWERGRID Parli Transmission Limited 429.04 560.14
POWERGRID Warora Transmission Limited 369.62 605.36
POWERGRID Jabalpur Transmission Limited 196.46 319.04
Total 2,109.74 2,945.09
Loans to Subsidiaries
POWERGRID Kala Amb Transmission Limited 146.92 -
Total 146.92 -
Repayment of Loan by Subsidiaries
Vizag Transmission Limited 60.00 -
POWERGRID Kala Amb Transmission Limited 90.00 -
POWERGRID Parli Transmission Limited 805.00 295.00
POWERGRID Warora Transmission Limited 820.00 185.00
POWERGRID Jabalpur Transmission Limited 465.00 705.00
Total 2,240.00 1,185.00
Payment of Investment Manager fee (Including Taxes)
POWERGRID Unchahar Transmission Limited (Investment Manager) 99.57 93.08
Payment of Trustee fee (Including Taxes)
IDBI Trusteeship Services Limited (Trustee) 0.35 0.35
Distribution Paid
Power Grid Corporation of India Limited 1,638.00 1,638.00

27. INVESTMENT MANAGER FEES 29. CAPITAL AND OTHER COMMITMENTS

Pursuant to the Investment Management Agreement The Trust has entered into separate Share Purchase
dated 18 December 2020, Investment Manager fees is agreements with POWERGRID for acquisition of balance
aggregate of 26% equity shareholding in each of the subsidiary i.e.
PKATL, PPTL, PWTL and PJTL.
a. 
₹ 72,500,000 per annum, in relation to the
initial SPVs; and Other commitments related to services to be rendered /
procurements made in the normal course of business are
b. 0.10% of the aggregate Gross Block of all Holding not disclosed to avoid excessive details.
Companies and SPVs acquired by the InvIT after the
execution of this agreement. 30. SEGMENT REPORTING
The Trust’s activities comprise of owning and investing in
Further, the management fee set out above shall be subject transmission SPVs to generate cash flows for distribution
to escalation on an annual basis at the rate of 6.75% of to unitholders. Based on the guiding principles given in Ind
the management fee for the previous year. Any applicable AS - 108 “Operating Segments”, this activity falls within a
taxes, cess or charges, as the case may be, shall be in single operating segment and accordingly the disclosures
addition to the management fee. of Ind AS -108 have not separately been given.

Trust has not acquired any assets during the period.

31. FINANCIAL RISK MANAGEMENT
28. CONTINGENT LIABILITY The Trust’s principal financial liabilities comprises of
borrowings denominated in Indian rupees, trade payables
The Trust has no contingent liability to be reported.
and other financial liabilities. The main purpose of these

Annual Report 2023-24 99

Notes
to the Standalone Financial Statements for the year ended March 31, 2024

financial liabilities is to finance the Trust’s investments and The Trust is exposed to credit risk from its investing
operations. activities including loans to subsidiaries, deposits
with banks and other financial instruments. As at 31
The Trust’s principal financial assets include investments, March 2024, the credit risk is considered low since
loans, cash and cash equivalents and other financial assets substantial transactions of the Trust are with its
that are generated from its operations. subsidiaries.

The Trust’s activities expose it to the following financial (B) LIQUIDITY RISK
risks, namely, Liquidity risk management implies maintaining
sufficient cash and marketable securities for meeting
(A) Credit risk, its present and future obligations associated with
financial liabilities that are required to be settled by
(B) Liquidity risk, delivering cash or another financial asset. The Trust’s
objective is to, at all times, maintain optimum levels
(C) Market risk. of liquidity to meet its cash and collateral obligations.
The Trust requires funds for short term operational
The Investment Manager oversees the management of needs as well as for servicing of financial obligation
these risks. under term loan. The Trust closely monitors its liquidity
position and deploys a robust cash management
This note presents information regarding the Trust’s system. It aims to minimise these risks by generating
exposure, objectives and processes for measuring and sufficient cash flows from its current operations.
managing these risks.
Maturities of financial liabilities
The management of financial risks by the Trust is The table below analyses the Trust’s financial
summarized below: - liabilities into relevant maturity groupings based
on their contractual maturities for all non-derivative
(A) CREDIT RISK financial liabilities.
Credit risk is the risk that counterparty will not
meet its obligations under a financial instrument The amount disclosed in the table is the contractual
or customer contract, leading to a financial loss. undiscounted cash flows.

₹ in million
Contractual maturities of financial liabilities Within a year Between 1-5 years Beyond 5 years Total
As at 31 March 2024
Borrowings (including interest outflows) 489.04 2,086.96 9,107.83 11,683.83
Other financial liabilities 3.31 - - 3.31
Total 492.35 2,086.96 9,107.83 11,687.14
As at 31 March 2023
Borrowings (including interest outflows) 507.45 2,080.23 9,289.62 11,877.30
Other financial liabilities 1.48 - - 1.48
Total 508.93 2,080.23 9,289.62 11,878.78
(C) MARKET RISK (i) Currency risk
As on Reporting date the Trust does not have any
Market risk is the risk that the fair value of future cash exposure to currency risk in respect of foreign
flows of a financial instrument will fluctuate because currency denominated loans and borrowings and
of changes in market prices. Market risk comprises procurement of goods and services.
three types of risk:
(ii) Interest rate risk
Interest rate risk is the risk that fair value or future cash
(i) Currency risk
flows of a financial instrument will fluctuate because
of changes in market interest rates. The Trust’s
(ii) Interest rate risk exposure to the risk of changes in market interest
rates relates primarily to the Trust’s long-term debt
(iii) Equity price risk obligations with floating interest rates.

100 POWERGRID Infrastructure Investment Trust

 CORPORATE OVERVIEW STATUTORY REPORTS FINANCIAL STATEMENTS

Notes
to the Standalone Financial Statements for the year ended March 31, 2024

The Trust’s exposure to interest rate risk due to variable interest rate borrowings is as follows:

₹ in million
Particulars Amount Impact on profit / loss before tax for the year due to
Increase or decrease in interest rate by 50 basis points
As at 31 March 2024
Term Loan from Bank 5,698.29 28.66
As at 31 March 2023
Term Loan from Bank 5,727.07 28.73

(iii) Equity price risk • maintain an optimal capital structure to reduce the
The Trust has investments in equity shares of cost of capital.
subsidiaries. Future value of the investment in For the purpose of trust’s capital management,
subsidiaries are subject to market price risk arising unit capital includes issued unit capital and all
due to fluctuation in the market conditions. other reserves attributable to the unitholders of
Reports on the fair value of investment in subsidiaries the Trust. Trust manages its capital structure and
are submitted to the management on periodic basis. makes adjustments in light of changes in economic
conditions. To maintain or adjust the capital structure,
At the reporting date, the exposure to equity trust may adjust the distribution to unitholders (subject
investments in subsidiary at carrying value to the provisions of InvIT regulations which require
was ₹ 31,089.84 million. Sensitivity analyses of distribution of at least 90% of the net distributable
significant unobservable inputs used in the fair value cash flows of the Trust to unitholders), return capital
measurement are disclosed in Note 25. to unitholders or issue new units. The Trust monitors
capital using a gearing ratio, which is the ratio of Net
32. Capital management Debt to total Equity plus Net Debt. The Trust’s policy
Trust’s objectives when managing capital are to is to keep the gearing ratio optimum. The Group
• maximize the unitholder value; includes within Net Debt, interest bearing loans and
borrowings and current maturities of long term debt
• safeguard its ability to continue as a going concern; less cash and cash equivalents.

The gearing ratio of the Trust was as follows: -

Particulars As at As at
31 March 2024 31 March 2023
(a) Long term debt (₹ in million) 5,698.29 5,727.07
(b) Less: Cash and cash equivalents 2,966.50 2,911.23
(c) Net Debt (a-b) 2,731.79 2,815.84
(d) Total Equity (₹ in million) 77,602.19 78,292.29
(e) Total Equity plus net debt (₹ in million) (c+d) 80,333.98 81,108.13
(f ) Gearing Ratio (c/e) 3.40% 3.47%
The Trust’s capital management, amongst other things, aims to ensure that it meets financial covenants attached to the
interest-bearing loans and borrowings that define capital structure requirements. There have been no breaches in the financial
covenants of any interest-bearing loans and borrowing in the current period.

Distributions

Particulars ₹ in million
Distributions made during the year ended 31.03.2024 of ₹ 12.00 per unit (Comprising Taxable 10,919.99
Dividend – ₹ 1.19, Exempt Dividend – ₹ 0.95, Interest – ₹ 7.87, Repayment of SPV Debt–₹ 1.95 and
Treasury Income – ₹ 0.04)
Distributions made during the year ended 31.03.2023 of ₹ 12.00 per unit (Comprising Taxable 10,919.99
Dividend – ₹ 2.37, Exempt Dividend – ₹ 1.01, Interest – ₹ 7.86, Repayment of SPV Debt–₹0.73 and
Treasury Income – ₹ 0.03)

Annual Report 2023-24 101

Notes
to the Standalone Financial Statements for the year ended March 31, 2024

Distribution not recognized at the end of the reporting period:

In addition to above distribution, the Board of Directors of POWERGRID Unchahar Transmission Limited in its capacity as the
Investment Manager to POWERGRID Infrastructure Investment Trust (“PGInvIT”) on 22 May 2024 recommended distribution
related to last quarter of FY 2023-24 of ₹ 3.00 per unit.

33. OTHER INFORMATION

a) There are no cases of immovable properties where title deeds are not in the name of the Trust.
b) No loans or advances in the nature of loans have been granted to promoters, directors, KMPs and the related parties
(as defined under Companies Act, 2013,) either severally or jointly with any other person, which are either repayable on
demand or without specifying any terms or period of repayment.
c) The Trust has no Capital Work-in Progress, hence disclosure of CWIP completion schedule is not applicable.
d) The Trust do not have Intangible asset under development.
e) The Trust do not have Intangible assets under development, whose completion is overdue or has exceeded its cost
compared to its original plan.
f ) The Trust does not hold benami property and no proceeding has been initiated or pending against the Trust for holding
any benami property under the Prohibition of Benami Property Transactions Act, 1988 (as amended) and rules made
thereunder as at the end of the financial year.
g) The Trust is not sanctioned any working capital limit secured against current assets by any Finance Institutions.
h) The Trust does not have any transactions, balances, or relationship with struck off companies.
i) The Trust was not declared as a wilful defaulter by any bank or financial Institution or other lender during the financial year.
j) The Trust does not have any subsidiary to comply with the number of layers prescribed under clause (87) of section 2 of
the Act read with the Companies (Restriction on number of Layers) Rules, 2017 during the financial year.
k) Ratios

Ratio Numerator Denominator Current Year Previous Year Variance (%) Reason for variance
>25%
(a) Current Current Assets Current 96.21 99.64 (3.44) -
Ratio Liabilities
(b)  Debt-Equity Total Debt Shareholder’s 0.07 0.07 - -
Ratio Equity
(c) Debt Service Profit for the Interest & Lease 18.94 23.56 (19.61) Earning during
Coverage period before tax Payments current year got
Ratio + Depreciation + Principal reduced and interest
and amortization Repayments expenditure got
expense + increase due to
Finance costs + increase in T bill
Impairment
(d) Interest Earnings Interest & 20.10 25.20 (20.24) Earning during
Service before Interest, Finance Charges current year got
Coverage Depreciation, net of amount reduced and interest
Ratio Impairment and transferred to expenditure got
Tax expenditure increase due to
during increase in T bill
construction
(e) Return on Profit for the Average 0.13 (0.03) 533.33 Due to reversal
Equity Ratio period after tax Shareholder’s of Impairment of
Equity Investments in
Subsidiaries

102 POWERGRID Infrastructure Investment Trust

 CORPORATE OVERVIEW STATUTORY REPORTS FINANCIAL STATEMENTS

Notes
to the Standalone Financial Statements for the year ended March 31, 2024

Ratio Numerator Denominator Current Year Previous Year Variance (%) Reason for variance
>25%
(f ) Inventory Revenue from Average - - - -
turnover Operations Inventory
ratio
(g) Trade Revenue from Average Trade - - - -
Receivables Operations Receivables
turnover (before
ratio deducting
provision)
(h) Trade Gross Other Average Trade - - - -
payables Expense (–) FERV, payables
turnover Provisions, Loss
ratio on disposal of PPE
(i) Net capital Revenue from Current Assets 3.07 3.49 (12.03) -
turnover Operations – Current
ratio Liabilities
(j) Net profit Profit for the Revenue from 1.08 (0.26) 515.38 Due to reversal
ratio period after tax Operations of Impairment of
Investments in
Subsidiaries
(k) Return on Earnings before Tangible Net 0.13 (0.03) 533.33 Due to reversal
Capital interest and taxes Worth + Total of Impairment of
employed Debt + Deferred Investments in
Tax Liability Subsidiaries
(l) Return on Income from Average NA NA NA -
investment Investment Investments
+ Capital
Appreciation
l) The Trust has not received/advanced or loaned or invested funds (either borrowed funds or share premium or any other
sources or kind of funds) through Intermediaries during the financial year.
m) The Trust does not have any transaction that was not recorded in the books of accounts and has been surrendered or
disclosed as income during the year in the tax assessments under the Income Tax Act, 1961.
n) The Trust has not traded or invested in Crypto currency or Virtual Currency during the financial year.

34. OTHER NOTES

a) Figures have been rounded off to nearest rupees in million up to two decimals.
b) Previous year figures have been regrouped/ rearranged wherever considered necessary.

As per our report of even date For and on behalf of Board of Directors of POWERGRID Unchahar Transmission Limited in
For S.K.Mittal & Co. the capacity as Investment Manager to POWERGRID Infrastructure Investment Trust.
Chartered Accountants
FRN: 001135N Anjana Luthra Abhay Choudhary Purshottam Agarwal
Company Secretary Chairman Director
PAN: ABYPL2312H DIN: 07388432 DIN: 08812158
Place: Gurugram Place: Mumbai Place: Mumbai

(CA Gaurav Mittal) A Sensarma Amit Garg

Membership Number: 099387 CEO CFO
Place: New Delhi PAN: AEXPS3591K PAN: ACSPG1833F
Place: Gurugram Place: Gurugram
Date: 22 May 2024

Annual Report 2023-24 103

Independent Auditors’ Report
To and/or any addendum thereto as defined in the Rule 2(1)(a) of
the Companies (Indian Accounting Standards) Rules, 2015 and
The Unit holders of POWERGRID Infrastructure Investment
other accounting principles generally accepted in India, of the
Trust (“PGInvIT”)
consolidated state of affairs of the Group as at 31 March 2024,
its consolidated profit and total comprehensive income, its
REPORT ON THE AUDIT OF THE CONSOLIDATED consolidated movement of the unit holders’ equity and its
FINANCIAL STATEMENTS consolidated cash flows for the year ended 31 March 2024, its
Opinion consolidated net assets at fair value as at 31 March 2024, its
We have audited the accompanying Consolidated Financial consolidated total returns at fair value and the net distributable
Statements of POWERGRID Infrastructure Investment Trust cash flows of the Trust and each of its subsidiaries for the year
(“PGInvIT”) (hereinafter referred to as “the Trust”) and its ended 31 March 2024.
subsidiaries (the Trust and its subsidiaries together referred
to as “the Group”), which comprise the consolidated Balance Basis of Opinion
Sheet as at 31 March 2024, the consolidated Statement of We conducted our audit of consolidated financial statements
Profit and Loss (including other comprehensive income), the in accordance with the Standards on Auditing (SAs) issued
consolidated Statement of Changes in Unit Holders’ Equity, the by Institute of Chartered Accountants of India (“ICAI”).
consolidated Statement of cash flows for the year then ended, Our responsibilities under those Standards are further described
the consolidated Statement of Net Assets at fair value as at in the Auditor’s Responsibilities for the Audit of the Consolidated
31 March 2024, the consolidated Statement of Total Returns Financial Statements section of our report. We are independent
at fair value, the Statement of Net Distributable Cash Flows of the Group in accordance with the Code of Ethics issued by
(‘NDCFs’) of the Trust and each of its subsidiaries for the year ICAI and we have fulfilled our other ethical responsibilities in
then ended, and notes to the consolidated financial statements accordance with the ICAI’s Code of Ethics. We believe that the
including a summary of significant accounting policies and audit evidence we have obtained is sufficient and appropriate
other explanatory information (hereinafter referred to as “the to provide a basis for our audit opinion on the consolidated
consolidated financial statements”). financial statements.

In our opinion and to the best of our information and according Key Audit Matters
to the explanations given to us and based on the consideration Key audit matters are those matters that, in our professional
of reports of other auditors on separate financial statements judgment, were of most significance in our audit of the
and on the other financial information of the subsidiaries, the consolidated financial statements of the current period.
aforesaid consolidated financial statements give the information These matters were addressed in the context of our audit of the
required by the Securities and Exchange Board of India consolidated financial statements as a whole, and in forming
(Infrastructure Investment Trusts) Regulations, 2014 as amended our opinion thereon, and we do not provide a separate opinion
from time to time including any guidelines and circulars issued on these matters. We have determined the matters described
thereunder, in the manner so required and give a true and fair below to be the key audit matters to be communicated in
view in conformity with Indian Accounting Standards (Ind AS) our report.

Sr.No Key Audit Matter How our audit addressed the key audit matter
1 Assessing Impairment of Goodwill, Property, In making the assessment of the Enterprise Value, we relied
Plant & Equipment (PPE) and Intangible Assets on the valuation report issued by the independent valuer
The Group records Goodwill, Property, Plant & Equipment appointed by the Investment Manager in accordance with SEBI
(PPE) and Intangible Assets (IA) at a carrying value of Rs. InvIT Regulations.
Nil, Rs. 86,495.67 million and Rs 3,921.15 million as at Impact of the same has been duly accounted for in the financial
31st March 2024. statement.
Management reviews regularly whether there are any
indicators of impairment of goodwill, PPE and IA by
reference to the requirements under Ind AS.
Goodwill, PPE and IA is tested for impairment by the
Group using enterprise value of respective subsidiaries
to which the goodwill PPE and IA relates to.

104 POWERGRID Infrastructure Investment Trust

 CORPORATE OVERVIEW STATUTORY REPORTS FINANCIAL STATEMENTS

Sr.No Key Audit Matter How our audit addressed the key audit matter
Enterprise value calculation involves use of future
cashflow projections, discounted to present value,
terminal value and other variables and accordingly, the
evaluation of impairment of goodwill, PPE and IA has
been determined as a key audit matter.
2 Computation and disclosures as prescribed in Our audit procedures include the following-
the InvIT regulations relating to Statement of Net • Read the requirements of SEBI InvIT regulations for
Assets and Total Returns at Fair Value disclosures relating to Statement of Net Assets at Fair Value
As per the provisions of InvIT Regulations, the Trust is and Statement of Total Returns at Fair Value.
required to disclose a Statement of Net Assets at Fair
Value and Statement of Total Returns at Fair Value which • Read/Assessed the disclosures in the consolidated financial
requires fair valuation of assets. For this purpose, fair statements for compliance with the relevant requirements
value is determined by forecasting and discounting of InvIT Regulations.
future cash flows. The inputs to the valuation models • Relied on the valuation report issued by the independent
are taken from observable markets where possible, valuer appointed by the Investment Manager in accordance
but where this is not feasible, a degree of judgement is with SEBI InvIT Regulations.
required in establishing fair values. Judgements include
considerations of inputs such as WACC, Tax rates, Inflation
rates etc.
Accordingly, the aforementioned computation and
disclosures are determined to be a key audit matter in
our audit of the consolidated financial statements.

INFORMATION OTHER THAN THE CONSOLIDATED MANAGEMENT’S RESPONSIBILITY FOR THE

FINANCIAL STATEMENTS AND AUDITOR’S REPORT CONSOLIDATED FINANCIAL STATEMENTS
THEREON The Management of POWERGRID Unchahar Transmission
The management of POWERGRID Unchahar Transmission Limited (‘Investment Manager’), is responsible for the
Limited (“Investment Manager”) is responsible for the preparation of these consolidated financial statements that give
preparation of the other information. The other information a true and fair view of the consolidated financial position as at 31
comprises the information that may be included in the March 2024, consolidated financial performance including other
Management Discussion and Analysis, Investment Manger’s comprehensive income, consolidated movement of the unit
report including Annexures to Investment Manager’s Report holders’ equity, the consolidated cash flows for the year ended
and Investment Manager’s Information but does not include 31 March 2024, its consolidated net assets at fair value as at 31
the consolidated financial statements and our auditor’s March 2024, its consolidated total returns at fair value of the
report thereon. The other information, as identified above, Trust, the net distributable cash flows of the Trust and each of its
is expected to be made available to us after the date of this subsidiaries in accordance with accounting principles generally
Auditor’s Report. accepted in India, including the Indian Accounting Standards
(Ind AS) and/or any addendum thereto as defined in Rule 2(1)(a)
Our opinion on the consolidated financial statements does not of the Companies (Indian Accounting Standards) Rules, 2015, as
cover the other information and we do not express any form amended read with the Securities and Exchange Board of India
of assurance conclusion thereon. (Infrastructure Investment Trusts) Regulations, 2014 as amended
from time to time including any guidelines and circulars issued
In connection with our audit of the consolidated financial thereunder (together referred to as the “InvIT Regulations”).
statements, our responsibility is to read the other information
identified above when it becomes available and, in doing The respective Board of Directors of the companies included
so, consider whether the other information is materially in the Group are responsible for maintenance of adequate
inconsistent with the consolidated financial statements or accounting records in accordance with the provisions of the Act
our knowledge obtained during the course of our audit or for safeguarding of the assets of the Group and for preventing
otherwise appears to be materially misstated. and detecting frauds and other irregularities; the selection
and application of appropriate accounting policies; making
When we read those documents including annexures, if any judgments and estimates that are reasonable and prudent;
thereon, if we conclude that there is a material misstatement and the design, implementation and maintenance of adequate
therein, we shall communicate the matter to those charged internal financial controls, that were operating effectively for
with the governance. ensuring the accuracy and completeness of the accounting

Annual Report 2023-24 105

records, relevant to the preparation and presentation of the • Conclude on the appropriateness of management’s use of
consolidated financial statements that give a true and fair view the going concern basis of accounting and, based on the
and are free from material misstatement, whether due to fraud audit evidence obtained, whether a material uncertainty
or error, which have been used for the purpose of preparation exists related to events or conditions that may cast
of the consolidated financial statements by the management of significant doubt on the ability of the Group to continue as
the Trust, as aforesaid. a going concern. If we conclude that a material uncertainty
exists, we are required to draw attention in our auditor’s
In preparing the consolidated financial statements, the report to the related disclosures in the consolidated
respective Board of Directors of the Companies included in the financial statements or, if such disclosures are inadequate,
Group are responsible for assessing the ability of the Group to to modify our opinion. Our conclusions are based on the
continue as a going concern, disclosing, as applicable, matters audit evidence obtained up to the date of our auditor’s
related to going concern and using the going concern basis report. However, future events or conditions may cause
of accounting unless management either intends to liquidate the Group to cease to continue as a going concern.
the Group or to cease operations, or has no realistic alternative
but to do so. • 
Evaluate the overall presentation, structure and content
of the consolidated financial statements, including the
The respective Board of Directors of the Companies included disclosures, and whether the consolidated financial
in the Group are also responsible for overseeing the financial statements represent the underlying transactions and
reporting process of the Group. events in a manner that achieves fair presentation.

AUDITOR’S RESPONSIBILITIES FOR THE AUDIT OF • 

Obtain sufficient appropriate audit evidence regarding the
THE CONSOLIDATED FINANCIAL STATEMENTS financial information of the entities or business activities
Our objectives are to obtain reasonable assurance about within the Group of which we are the independent
whether the consolidated financial statements as a whole auditors, to express an opinion on the consolidated financial
are free from material misstatement, whether due to fraud or statements. We are responsible for the direction, supervision
error, and to issue an auditor’s report that includes our opinion. and performance of the audit of the financial statements
Reasonable assurance is a high level of assurance but is not of such entities included in the consolidated financial
a guarantee that an audit conducted in accordance with SAs statements of which we are the independent auditors.
will always detect a material misstatement when it exists. For companies included in the consolidated financial
Misstatements can arise from fraud or error and are considered statements, which have been audited by other auditors,
material if, individually or in aggregate, they could reasonably be such other auditors remain responsible for the direction,
expected to influence the economic decisions of users taken on supervision and performance of the audits carried out by
the basis of these consolidated financial statements. them. We remain solely responsible for our audit opinion.

As part of an audit in accordance with SAs, we exercise Materiality is the magnitude of misstatements in the
professional judgment and maintain professional skepticism consolidated financial statements that, individually or in
throughout the audit. We also: aggregate, makes it probable that the economic decisions of
a reasonably knowledgeable user of the financial statements
• Identify and assess the risks of material misstatement of the may be influenced. We consider quantitative materiality and
consolidated financial statements, whether due to fraud qualitative factors in (i) planning the scope of our audit work
or error, design and perform audit procedures responsive and in evaluating the results of our work; and (ii) to evaluate
to those risks, and obtain audit evidence that is sufficient the effect of any identified misstatements in the consolidated
and appropriate to provide a basis for our opinion. The risk financial statements.
of not detecting a material misstatement resulting from
fraud is higher than for one resulting from error, as fraud We communicate with those charged with governance of
may involve collusion, forgery, intentional omissions, the Trust included in the consolidated financial statements
misrepresentations, or the override of internal control. of which we are the independent auditors regarding, among
other matters, the planned scope and timing of the audit and
• 
Obtain an understanding of internal financial controls significant audit findings, including any significant deficiencies
relevant to the audit in order to design audit procedures in internal control that we identify during our audit.
that are appropriate in the circumstances, but not for the
purpose of expressing an opinion on the effectiveness of We also provide those charged with governance with a statement
such controls. that we have complied with relevant ethical requirements
regarding independence, and to communicate with them all
• 
Evaluate the appropriateness of accounting policies used relationships and other matters that may reasonably be thought
and the reasonableness of accounting estimates and to bear on our independence, and where applicable, related
related disclosures made by management. safeguards.

106 POWERGRID Infrastructure Investment Trust

 CORPORATE OVERVIEW STATUTORY REPORTS FINANCIAL STATEMENTS

From the matters communicated with those charged with REPORT ON OTHER LEGAL AND REGULATORY
governance, we determine those matters that were of most REQUIREMENTS
significance in the audit of the consolidated financial statements
Based on our audit and as required by InvIT Regulations, we
of the current period and are therefore the key audit matters.
report that;
We describe these matters in our auditor’s report unless law
or regulation precludes public disclosure about the matter
a) We have obtained all the information and explanations
or when, in extremely rare circumstances, we determine that
which, to the best of our knowledge and belief were
a matter should not be communicated in our report because
necessary for the purpose of our audit;
the adverse consequences of doing so would reasonably be
expected to outweigh the public interest benefits of such
b) The Consolidated Balance Sheet, and the Consolidated
communication.
Statement of Profit and Loss including other comprehensive
income dealt with by this report are in agreement with
OTHER MATTERS
the books of account maintained for the purpose of
We have audited the financial statements and other financial
preparation of the consolidated financial statements; and
information of 3 out of 5 subsidiaries of PGInvIT, i.e. VTL, PKATL
and PJTL. Further, we have carried out the Limited Review of
c) In our opinion, the aforesaid consolidated financial
the audit of the other 2 subsidiaries, i.e PPTL and PWTL. On the
statements comply with the Accounting Standards (Ind
Consolidated basis the financial statements reflect total assets
AS) and/or any addendum thereto as defined in Rule 2(1)
of Rs. 66,724.11 million and net worth of Rs. 12,565.56 million as
(a) of the Companies (Indian Accounting Standards) Rules,
at 31 March 2024, total revenue from operation of Rs 12,653.38
2015, as amended.
million and net cash inflows amounting to Rs. 527.52 million
for the FY 2023-24 before giving effect to elimination of
d) There were no amounts which were required to be
intra-group transactions. The financial statements and other
transferred to the Investor Education and Protection Fund
financial information for PPTL and PWTL have been audited by
by the Trust
other auditors whose reports have been furnished to us by the
management and our opinion on the consolidated financial
statements, in so far as it relates to the amounts and disclosures
For S.K.Mittal & Co.
included in respect of these subsidiaries and our report in
terms of InvIT regulations, in so far as it relates to the aforesaid Chartered Accountants
subsidiaries is based solely on the reports of the other auditors FRN: 001135N
and Limited Review of audit carried out by us.

Our opinion above on the consolidated financial statements, and

our reports on the Legal and Regulatory Requirements below, Place: New Delhi (CA Gaurav Mittal)
is not modified in respect of the above matters with respect to UDIN: 24099387BKBEMJ1348 Partner
our reliance on the work done and reports of the other auditors. Dated: 22 May 2024 Membership No.: 099387

Annual Report 2023-24 107

Consolidated Balance Sheet
as at 31 March 2024
₹ in million
Particulars Note As at As at
No 31 March 2024 31 March 2023
ASSETS
Non-current assets
Property, Plant and Equipment 3 86,495.67 86,745.51
Capital work-in-progress 4 74.84 151.22
Goodwill on Acquisition 5 - -
Other Intangible assets 6 3,921.15 3,990.44
Financial Assets
Trade receivables 7 66.37 -
Other non-current assets 8 424.65 624.52
90,982.68 91,511.69
Current assets
Inventories 9 309.29 308.15
Financial Assets
Trade receivables 10 2,693.22 3,263.05
Cash and cash equivalents 11 4,168.61 3,585.82
Bank balances other than Cash and cash equivalents 12 1,448.88 1,532.19
Other current financial assets 13 38.12 32.01
Other current assets 14 185.57 199.75
8,843.69 8,920.97
Total Assets 99,826.37 1,00,432.66
EQUITY AND LIABILITIES
Equity
Unit Capital 15 90,999.92 90,999.92
Other Equity 16 (15,587.53) (13,935.03)
Non Controlling Interest 6,361.56 6,214.03
81,773.95 83,278.92
Liabilities
Non-current liabilities
Financial Liabilities
Borrowings 17 5,663.71 5,692.00
Deferred tax liabilities(Net) 18 12,112.15 11,154.98
Other non current liabilities 19 0.02 -
17,775.88 16,846.98
Current liabilities
Financial Liabilities
Borrowings 20 28.78 28.78
Trade payables
total outstanding dues of micro enterprises - -
and small enterprises.
total outstanding dues of creditors other 21 15.40 17.37
than micro enterprises and small enterprises
Other current financial liabilities 22 214.65 243.25
Other current liabilities 23 17.71 17.31
Provisions 24 - 0.05
Current Tax Liabilities (Net) 25 - -
276.54 306.76
Total Equity and Liabilities 99,826.37 1,00,432.66
The accompanying notes (1 to 52) form an integral part of financial statements.
As per our report of even date For and on behalf of Board of Directors of POWERGRID Unchahar Transmission Limited in
For S.K.Mittal & Co. the capacity as Investment Manager to POWERGRID Infrastructure Investment Trust.
Chartered Accountants
FRN: 001135N Anjana Luthra Abhay Choudhary Purshottam Agarwal
Company Secretary Chairman Director
PAN: ABYPL2312H DIN: 07388432 DIN: 08812158
Place: Gurugram Place: Mumbai Place: Mumbai

(CA Gaurav Mittal) A Sensarma Amit Garg

Membership Number: 099387 CEO CFO
Place: New Delhi PAN: AEXPS3591K PAN: ACSPG1833F
Place: Gurugram Place: Gurugram
Date: 22 May 2024

108 POWERGRID Infrastructure Investment Trust

 CORPORATE OVERVIEW STATUTORY REPORTS FINANCIAL STATEMENTS

Consolidated Statement of Profit and Loss

for the year ended at 31 March 2024
₹ in million
Particulars Note For the Year ended on For the Year ended on
No 31 March 2024 31 March 2023
INCOME
Revenue From Operations 26 12,653.38 12,857.85
Other Income 27 373.84 295.06
Total Income 13,027.22 13,152.91
EXPENSES
Valuation Expenses 0.46 0.19
Payment to Auditor
- Statutory Audit Fees 0.48 0.50
- Other Services (Including Tax Audit & Certifications) 0.45 0.35
Insurance expenses 267.12 241.42
Project manager fees 46.60 44.94
Investment manager fees 99.57 93.08
Trustee fee 0.35 0.35
Repairs and maintenance of Transmission assets 312.16 300.05
Other expenses 28 256.20 196.95
Employee benefits expense 29 9.85 11.40
Finance costs 30 468.71 414.33
Depreciation and amortization expense 31 3,154.12 3,148.15
Impairment/(Reversal of Impairment) of Goodwill, (2,541.43) 15,098.10
Property Plant and Equipment and Intangible Assets
Total expenses 2,074.64 19,549.81
Profit for the period before tax 10,952.58 (6,396.90)
Tax expense:
Current tax - Current Year 178.09 210.15
- Earlier Years - -
Deferred tax 957.17 (2,142.95)
1,135.26 (1,932.80)
Profit for the period after tax 9,817.32 (4,464.10)
Other Comprehensive Income
Items that will not be reclassified to profit or loss - -
Items that will be reclassified to profit or loss - -
- -
Total Comprehensive Income for the period 9,817.32 (4,464.10)
Net Profit Attributable to:
Owners of the Trust 9,267.49 (1,951.38)
Non-Controling Interest 549.83 (2,512.72)
Total Comprehensive Income attributable to:
Owners of the Trust 9,267.49 (1,951.38)
Non-Controling Interest 549.83 (2,512.72)
Earnings per Unit
Basic (in Rupees) 10.18 (2.14)
Diluted (in Rupees) 10.18 (2.14)
The accompanying notes (1 to 52) form an integral part of financial statements.

As per our report of even date For and on behalf of Board of Directors of POWERGRID Unchahar Transmission Limited in
For S.K.Mittal & Co. the capacity as Investment Manager to POWERGRID Infrastructure Investment Trust.
Chartered Accountants
FRN: 001135N Anjana Luthra Abhay Choudhary Purshottam Agarwal
Company Secretary Chairman Director
PAN: ABYPL2312H DIN: 07388432 DIN: 08812158
Place: Gurugram Place: Mumbai Place: Mumbai

(CA Gaurav Mittal) A Sensarma Amit Garg

Membership Number: 099387 CEO CFO
Place: New Delhi PAN: AEXPS3591K PAN: ACSPG1833F
Place: Gurugram Place: Gurugram
Date: 22 May 2024

Annual Report 2023-24 109

Consolidated Statement of Changes in
Unitholders’ Equity
for the year ended 31 March 2024

A. UNIT CAPITAL ₹ In million

Balance as at 01 April 2023 90,999.92
Units issued during the year -
Balance as at 31 March 2024 90,999.92
Balance as at 01 April 2022 90,999.92
Units issued during the year -
Balance as at 31 March 2023 90,999.92

₹ In million
B. OTHER EQUITY Reserves and Surplus
Capital Reserve Retained Earnings Total
Balance as at 01 April 2023 330.15 (14,265.18) (13,935.03)
Total Comprehensive income for the year - 9,267.49 9,267.49
Distribution during the year*^ - (10,919.99) (10,919.99)
Balance as at 31 March 2024 330.15 (15,917.68) (15,587.53)
Balance as at 01 April 2022 330.15 (1,393.81) (1,063.66)
Total Comprehensive income for the year - (1,951.38) (1,951.38)
Distribution during the year*^^ - (10,919.99) (10,919.99)
Balance as at 31 March 2023 330.15 (14,265.18) (13,935.03)
The accompanying notes (1 to 52) form an integral part of financial statements.
* The distributions made by Trust to its Unitholders are based on the Net Distributable Cash flows (NDCF) of PGInvIT under the InvIT Regulations which
includes repayment of debt by SPVs to PGInvIT.
^ The distribution for year ended 31 March 2024 does not include the distribution relating to the quarter ended 31 March 2024, as the same will be
paid subsequently.
^^ The distribution for year ended 31 March 2023 does not include the distribution relating to the quarter ended 31 March 2023, as the same was paid
subsequent to the year ended 31 March 2023.

As per our report of even date For and on behalf of Board of Directors of POWERGRID Unchahar Transmission Limited in
For S.K.Mittal & Co. the capacity as Investment Manager to POWERGRID Infrastructure Investment Trust.
Chartered Accountants
FRN: 001135N Anjana Luthra Abhay Choudhary Purshottam Agarwal
Company Secretary Chairman Director
PAN: ABYPL2312H DIN: 07388432 DIN: 08812158
Place: Gurugram Place: Mumbai Place: Mumbai

(CA Gaurav Mittal) A Sensarma Amit Garg

Membership Number: 099387 CEO CFO
Place: New Delhi PAN: AEXPS3591K PAN: ACSPG1833F
Place: Gurugram Place: Gurugram
Date: 22 May 2024

110 POWERGRID Infrastructure Investment Trust

 CORPORATE OVERVIEW STATUTORY REPORTS FINANCIAL STATEMENTS

Consolidated Statement of Cash Flows

for the year ended 31 March 2024
₹ In million
Particulars For the year ended For the year ended
31 March 2024 31 March 2023
A. Cash Flow from Operating Activities:
Profit before Tax 10,952.58 (6,396.90)
Adjustments:
Impairment of Goodwill, Property Plant and (2,541.43) 15,098.10
Equipment and Intangible Assets
Interest income (261.91) (164.74)
Depreciation & Amortization Expenses 3,154.12 3,148.15
Finance Cost 468.71 414.33
Operating Profit before Changes in Assets & Liabilities 11,772.07 12,098.94
Adjustment for Changes in Assets and Liabilities
- Increase/(Decrease) in Trade Payables (1.97) 3.92
- Increase/(Decrease) in Other current financial liabilities (5.60) 30.30
- Increase/(Decrease) in Other Current Liabilities 0.40 1.35
- Increase/(Decrease) in Provisions (0.05) (0.90)
- Increase/(Decrease) in Other Non Current liabilities 0.02 (0.05)
- (Increase)/Decrease in Trade Receivables 522.92 71.72
- (Increase)/Decrease in Other Current Financial Assets (0.88) 5.67
- (Increase)/Decrease in Inventories (1.14) 0.13
- (Increase)/Decrease in Earmarked balance with banks (2.37) 1.28
- (Increase)/Decrease in Other Current Assets 14.18 (38.81)
- (Increase)/Decrease in Non-Current Financial Assets (19.46) -
- (Increase)/Decrease in Other Non Current Assets (0.04) 0.03
Cash Generated from Operations 12,278.08 12,173.58
Direct taxes (Paid)/Refund 20.58 (370.39)
Income Tax refund received 1.23 2.67
Net cash from operating activities 12,299.89 11,805.86
B. Cash Flow from Investing Activities:
Property Plant & Equipment and Capital Work in Progress (240.17) (172.97)
Investment in Fixed Deposits (Net) 85.68 (1,531.73)
Interest income received 256.68 166.87
Net cash used in investing activities 102.19 (1,537.83)
C. Cash Flow from Financing Activities:
Repayment of Borrowings (28.78) (28.78)
Finance Cost Paid (468.22) (413.83)
Payment of Distribution to Unitholders (10,919.99) (10,919.99)
Dividend paid to Non Controlling Interest holder (402.30) (588.20)
Net cash used in financing activities (11,819.29) (11,950.80)
Net increase in cash and cash equivalents (A + B + C) 582.79 (1,682.77)
Cash and cash equivalents as at beginning of year 3,585.82 5,268.59
Cash and cash equivalents as at year end 4,168.61 3,585.82

Annual Report 2023-24 111

Consolidated Statement of Cash Flows
for the year ended 31 March 2024
Components of Cash and cash equivalents: ₹ In million
Balances with banks As at As at 31
31 March 2024 March 2023
On current accounts 24.47 112.04
Deposit with original maturity of 3 months or less 4,144.14 3,473.78
Total cash and cash equivalents 4,168.61 3,585.82

Reconciliation between opening and closing balances for liabilities arising from financing
activities :- ₹ In million
Particulars As at As at
31 March 2024 31 March 2023
Long term borrowings
Balance at the beginning of the year 5,720.78 5,749.06
Cash flow
- Interest (468.22) (413.83)
- Proceeds/(repayments) (28.78) (28.78)
Accrual 468.71 414.33
Balance at the end of the year 5,692.49 5,720.78
The accompanying notes (1 to 52) form an integral part of financial statements.

As per our report of even date For and on behalf of Board of Directors of POWERGRID Unchahar Transmission Limited in
For S.K.Mittal & Co. the capacity as Investment Manager to POWERGRID Infrastructure Investment Trust.
Chartered Accountants
FRN: 001135N Anjana Luthra Abhay Choudhary Purshottam Agarwal
Company Secretary Chairman Director
PAN: ABYPL2312H DIN: 07388432 DIN: 08812158
Place: Gurugram Place: Mumbai Place: Mumbai

(CA Gaurav Mittal) A Sensarma Amit Garg

Membership Number: 099387 CEO CFO
Place: New Delhi PAN: AEXPS3591K PAN: ACSPG1833F
Place: Gurugram Place: Gurugram
Date: 22 May 2024

112 POWERGRID Infrastructure Investment Trust

 CORPORATE OVERVIEW STATUTORY REPORTS FINANCIAL STATEMENTS

Statement of Net Assets at Fair Value

as at 31 March 2024

A. STATEMENT OF NET ASSETS AT FAIR VALUE

₹ in million

Sl. As at 31 March 2024 As at 31 March 2023

Particulars
No.
Book value Fair value* Book value Fair value*
A Assets 99,826.37 1,02,688.93 1,00,432.66 1,02,011.50
B Liabilities (at book value) 18,052.42 18,052.42 17,153.74 17,153.74
C Net Assets (A-B) 81,773.95 84,636.51 83,278.92 84,857.76
D Non Controlling Interest 6,361.56 7,034.33 6,214.03 6,565.47
E Net Assets attributable to PGInvIT (C-D) 75,412.39 77,602.18 77,064.89 78,292.29
F Number of units 910.00 910.00 910.00 910.00
G NAV 82.87 85.28 84.69 86.04

*Fair value of the assets as disclosed in the above table has been derived based on the equity value as per the fair valuation report issued by the independent
valuer appointed under SEBI (Infrastructure Investment Trusts) Regulations, 2014, book value of debt and book value of other assets and liabilities.

Project wise break up of Fair value of Assets:

₹ in million
Particulars As at As at
31 March 2024 31 March 2023
Vizag Transmission Limited 18,964.08 19,088.89
POWERGRID Kala Amb Transmission Limited 4,454.84 4,341.60
POWERGRID Parli Transmission Limited 24,119.12 24,031.44
POWERGRID Warora Transmission Limited 26,180.08 26,096.77
POWERGRID Jabalpur Transmission Limited 18,564.60 18,584.73
92,282.72 92,143.43
Assets of PGInvIT 3,103.62 3,038.67
Add/(Less): Elimination and Other Adjustments** 7,302.59 6,829.40
Total Assets 1,02,688.93 1,02,011.50

**It includes eliminations primarily pertaining to inter group lending / borrowing and consolidation adjustments

B. STATEMENT OF TOTAL RETURNS AT FAIR VALUE

₹ in million
Particulars As at As at
31 March 2024 31 March 2023
Total Comprehensive Income (As per the Statement of Profit and Loss)*** 9,267.49 (1,951.38)
Add/(less): Other Changes in Fair Value (e.g., in investment property, property, plant & - -
equipment (if cost model is followed)) not recognized in Total Comprehensive Income
Total Return 9,267.49 (1,951.38)

***Total comprehensive income as per Profit & Loss statement captures the impact of fair valuation through impairment of Investment in subsidiaries.
Same is based on the fair valuation report of the independent valuer appointed under SEBI (Infrastructure Investment Trusts) Regulations, 2014.

Annual Report 2023-24 113

Additional disclosures as required by SEBI Master Circular No. SEBI/HO/DDHS-PoD-2/P/CIR/2023/115 dated
July 06, 2023

A) STATEMENT OF NET DISTRIBUTABLE CASH FLOWS (NDCFS) OF PGINVIT

₹ in million
Particulars For the year ended For the year ended
31 March 2024 31 March 2023
Cash flows received from Portfolio Assets in the form of interest/accrued interest/ 7,344.28 7,545.27
additional interest
Add: Cash flows received from Portfolio Assets in the form of dividend 2,109.74 2,945.09
Add: Cash flows/ Proceeds from the Portfolio Assets towards the repayment of the 2,240.00 1,185.00
debt issued to the Portfolio Assets by the Trust
Add: Cash Flow / Proceeds from the Portfolio Assets for a capital reduction by way - -
of a buy back or any other means as permitted, subject to applicable law
Add: Cash Flow / Proceeds from the sale of the Portfolio Assets not distributed - -
pursuant to an earlier plan to reinvest, or if such proceeds are not intended to be
invested subsequently
"Less: Costs/retentions associated with sale of the Portfolio Assets - -
(a) Related debts settled or due to be settled from sale proceeds of Portfolio Assets
(b) Transaction costs paid on sale of the assets of the Portfolio Assets; and
(c) Capital gains taxes on sale of assets/shares in Portfolio Assets/other
investments"
Add: Any other income accruing at the Trust level and not captured above, 79.46 57.00
including but not limited to interest/return on surplus cash invested by the Trust
Total cash inflow at the Trust level (A) 11,773.48 11,732.36
Less: Any payment of fees, interest and expenses incurred at the Trust level, (578.84) (527.65)
including but not limited to the fees of the Investment Manager, Trustee, Auditor,
Valuer, Credit Rating Agency
Less: Reimbursement of expenses in relation to the Initial Public Issue of units of - -
the Trust, if any
Less: Repayment of external debt (principal), net of any debt raised by refinancing (28.78) (28.78)
of existing debt or/and any new debt raised
Less: Net cash set aside to comply with DSRA under loan agreements, if any. - (122.68)
Less: Income tax (if applicable) at the standalone Trust level and payment of other (39.79) (27.11)
statutory dues
Less: Proceeds reinvested or planned to be reinvested as per Regulation 18(7)(a) of - -
the InvIT Regulations
Less: Amount invested in any of the Portfolio Assets for service of debt or interest* (146.92) -
Less: Any provision or reserve deemed necessary by the Investment Manager - -
for expenses which may be due in the intervening period till next proposed
distribution, but for which there may not be commensurate amounts available by
the date such expenses become due.
Add: Net proceeds from fresh issuance of units by the Trust -
Add/Less: Any other adjustment to be undertaken by the IM Board to ensure that (1.52) 0.62
there is no double counting of the same item for the above calculations
Total cash outflows / retention at Trust level (B) (795.85) (705.60)
Net Distributable Cash Flows (C) = (A+B) 10,977.63 11,026.76

*During the period, Trust has given loan to PKATL for the construction of RTM project.

114 POWERGRID Infrastructure Investment Trust

 CORPORATE OVERVIEW STATUTORY REPORTS FINANCIAL STATEMENTS

Additional disclosures as required by SEBI Master Circular No. SEBI/HO/DDHS-PoD-2/P/CIR/2023/115 dated

July 06, 2023

B) STATEMENT OF NET DISTRIBUTABLE CASH FLOWS (NDCFS) OF VTL

₹ in million
Particulars For the year ended For the year ended
31 March 2024 31 March 2023
Profit after tax as per profit and loss account (standalone) (A) 536.54 764.49
Add: Depreciation, impairment and amortisation as per profit and loss account. 317.07 317.03
In case of impairment reversal, same needs to be deducted from profit and loss.
Add: Interest on loans availed from Trust as per profit and loss account 1,139.80 1,136.78
Add: Interest on unpaid interest (on account of loans availed from Trust) as per - -
profit and loss account
Add/Less: Decrease/Increase in working capital affecting the cash flow 104.51 21.36
Add/less: Loss/gain on sale of infrastructure assets - -
Add: Net Proceeds (after applicable taxes) from sale of infrastructure assets - -
adjusted for the following:
- related debts settled or due to be settled from sale proceeds; - -
- directly attributable transaction costs; - -
- proceeds reinvested or planned to be reinvested as per Regulation 18(7)(a) of the - -
InvIT Regulations
Add: Net Proceeds (after applicable taxes) from sale of infrastructure assets not - -
distributed pursuant to an earlier plan to re-invest, if such proceeds are not
intended to be invested subsequently.
Less: Capital expenditure, if any (0.13) -
Less: Investments made in accordance with the investment objective, if any - -
Add/less: Any other item of non-cash expense / non cash income (net of actual cash - -
flows for these items), if deemed necessary by the Investment Manager, including
but not limited to
- any decrease/increase in carrying amount of an asset or a liability recognised in - -
profit and loss account on measurement of the asset or the liability at fair value;
- interest cost as per effective interest rate method (difference between accrued - -
and actual paid);
- deferred tax, lease rents, etc. (41.09) (56.41)
Less: Any provision or reserve deemed necessary by the Investment Manager - -
for expenses which may be due in the intervening period till next proposed
distribution, but for which there may not be commensurate amounts available by
the date such expenses become due
Less: Repayment of external debt (principal) / redeemable preference shares / - -
debentures, etc. / net cash set aside to comply with borrowing requirements under
agreements including DSRA, net of any debt raised by refinancing of existing debt
or/and any new debt raised
Add/ less: Amounts added or retained to make the distributable cash flows in - -
accordance with the Transaction Documents or the loan agreements
Add/Less: Any other adjustment to be undertaken by the board of directors of the (10.15) 1.09
Investment Manager (the “IM Board”) to ensure that there is no double counting of
the same item for the above calculation*
Total Adjustments (B) 1,510.01 1,419.85
Net Distributable Cash Flows (C)=(A+B) 2,046.55 2,184.34

Note: During the period, amount not less than 90% of NDCF has already been distributed to PGInvIT.

* Other adjustments are with respect to changes in other non-current assets/liabilities which are not part of Working Capital.

Annual Report 2023-24 115

Additional disclosures as required by SEBI Master Circular No. SEBI/HO/DDHS-PoD-2/P/CIR/2023/115 dated
July 06, 2023

C) STATEMENT OF NET DISTRIBUTABLE CASH FLOWS (NDCFS) OF PKATL

₹ in million
Particulars For the year ended For the year ended
31 March 2024 31 March 2023
Profit after tax as per profit and loss account (standalone) (A) 139.00 142.72
Add: Depreciation, impairment and amortisation as per profit and loss account. 66.84 63.56
In case of impairment reversal, same needs to be deducted from profit and loss.
Add: Interest on loans availed from Trust as per profit and loss account* 276.39 269.70
Add: Interest on unpaid interest (on account of loans availed from Trust) as per - -
profit and loss account
Add/Less: Decrease/Increase in working capital affecting the cash flow 11.10 108.91
Add/less: Loss/gain on sale of infrastructure assets - -
Add: Net Proceeds (after applicable taxes) from sale of infrastructure assets - -
adjusted for the following:
- related debts settled or due to be settled from sale proceeds; - -
- directly attributable transaction costs; - -
- proceeds reinvested or planned to be reinvested as per Regulation 18(7)(a) of the - -
InvIT Regulations
Add: Net Proceeds (after applicable taxes) from sale of infrastructure assets not - -
distributed pursuant to an earlier plan to re-invest, if such proceeds are not
intended to be invested subsequently.
Less: Capital expenditure, if any (148.78) (95.42)
Less: Investments made in accordance with the investment objective, if any - -
Add/less: Any other item of non-cash expense / non cash income (net of actual - -
cash flows for these items), if deemed necessary by the Investment Manager,
including but not limited to
- any decrease/increase in carrying amount of an asset or a liability recognised in - -
profit and loss account on measurement of the asset or the liability at fair value;
- interest cost as per effective interest rate method (difference between accrued - -
and actual paid);
- deferred tax, lease rents, etc. 20.82 23.25
Less: Any provision or reserve deemed necessary by the Investment Manager - (29.60)
for expenses which may be due in the intervening period till next proposed
distribution, but for which there may not be commensurate amounts available by
the date such expenses become due**
Less: Repayment of external debt (principal) / redeemable preference shares / - -
debentures, etc. / net cash set aside to comply with borrowing requirements under
agreements including DSRA, net of any debt raised by refinancing of existing debt
or/and any new debt raised
Add/ less: Amounts added or retained to make the distributable cash flows in 108.73 -
accordance with the Transaction Documents or the loan agreements
Add/Less: Any other adjustment to be undertaken by the board of directors of the (5.91) 5.39
Investment Manager (the “IM Board”) to ensure that there is no double counting of
the same item for the above calculation***
Total Adjustments (B) 329.19 345.79
Net Distributable Cash Flows (C)=(A+B) 468.19 488.51

Note: During the period, amount not less than 90% of NDCF has already been distributed to PGInvIT.
*Includes capitalised interest of ₹ 5.67 million against the loan for the purpose of funding the project awarded to PKATL under Regulated Tariff Mechanism.
** Retention is for the purpose of funding the project awarded to PKATL under Regulated Tariff Mechanism
** *Other adjustments are with respect to changes in other non-current assets/liabilities which are not part of Working Capital.

116 POWERGRID Infrastructure Investment Trust

 CORPORATE OVERVIEW STATUTORY REPORTS FINANCIAL STATEMENTS

Additional disclosures as required by SEBI Master Circular No. SEBI/HO/DDHS-PoD-2/P/CIR/2023/115 dated

July 06, 2023

D) STATEMENT OF NET DISTRIBUTABLE CASH FLOWS (NDCFS) OF PPTL

₹ in million
Particulars For the year ended For the year ended
31 March 2024 31 March 2023
Profit after tax as per profit and loss account (standalone) (A) 455.60 403.64
Add: Depreciation, impairment and amortisation as per profit and loss account. 371.64 370.62
In case of impairment reversal, same needs to be deducted from profit and loss.
Add: Interest on loans availed from Trust as per profit and loss account 1,895.05 1,962.94
Add: Interest on unpaid interest (on account of loans availed from Trust) as per - -
profit and loss account
Add/Less: Decrease/Increase in working capital affecting the cash flow 97.36 (84.59)
Add/less: Loss/gain on sale of infrastructure assets - -
Add: Net Proceeds (after applicable taxes) from sale of infrastructure assets adjusted - -
for the following:
- related debts settled or due to be settled from sale proceeds; - -
- directly attributable transaction costs; - -
- proceeds reinvested or planned to be reinvested as per Regulation 18(7)(a) of the - -
InvIT Regulations
Add: Net Proceeds (after applicable taxes) from sale of infrastructure assets not - -
distributed pursuant to an earlier plan to re-invest, if such proceeds are not
intended to be invested subsequently.
Less: Capital expenditure, if any 0.38 (5.44)
Less: Investments made in accordance with the investment objective, if any - -
Add/less: Any other item of non-cash expense / non cash income (net of actual cash - -
flows for these items), if deemed necessary by the Investment Manager, including
but not limited to
- any decrease/increase in carrying amount of an asset or a liability recognised in - -
profit and loss account on measurement of the asset or the liability at fair value;
- interest cost as per effective interest rate method (difference between accrued and - -
actual paid);
- deferred tax, lease rents, etc. 159.29 142.64
Less: Any provision or reserve deemed necessary by the Investment Manager - -
for expenses which may be due in the intervening period till next proposed
distribution, but for which there may not be commensurate amounts available by
the date such expenses become due
Less: Repayment of external debt (principal) / redeemable preference shares / - -
debentures, etc. / net cash set aside to comply with borrowing requirements under
agreements including DSRA, net of any debt raised by refinancing of existing debt
or/and any new debt raised
Add/ less: Amounts added or retained to make the distributable cash flows in - -
accordance with the Transaction Documents or the loan agreements
Add/Less: Any other adjustment to be undertaken by the board of directors of the 83.11 (46.29)
Investment Manager (the “IM Board”) to ensure that there is no double counting of
the same item for the above calculation*
Total Adjustments (B) 2,606.83 2,339.88
Net Distributable Cash Flows (C)=(A+B) 3,062.43 2,743.52

Note: During the period, amount not less than 90% of NDCF has already been distributed to PGInvIT.
* Other adjustments are with respect to changes in other non-current assets/liabilities which are not part of Working Capital.

Annual Report 2023-24 117

Additional disclosures as required by SEBI Master Circular No. SEBI/HO/DDHS-PoD-2/P/CIR/2023/115 dated
July 06, 2023

E) STATEMENT OF NET DISTRIBUTABLE CASH FLOWS (NDCFS) OF PWTL

₹ in million
Particulars For the year ended For the year ended
31 March 2024 31 March 2023
Profit after tax as per profit and loss account (standalone) (A) 380.62 365.18
Add: Depreciation, impairment and amortisation as per profit and loss account. 452.13 452.09
In case of impairment reversal, same needs to be deducted from profit and loss.
Add: Interest on loans availed from Trust as per profit and loss account 2,275.41 2,343.17
Add: Interest on unpaid interest (on account of loans availed from Trust) as per - -
profit and loss account
Add/Less: Decrease/Increase in working capital affecting the cash flow 102.87 (182.33)
Add/less: Loss/gain on sale of infrastructure assets - -
Add: Net Proceeds (after applicable taxes) from sale of infrastructure assets adjusted - -
for the following:
- related debts settled or due to be settled from sale proceeds; - -
- directly attributable transaction costs; - -
- proceeds reinvested or planned to be reinvested as per Regulation 18(7)(a) of the - -
InvIT Regulations
Add: Net Proceeds (after applicable taxes) from sale of infrastructure assets not - -
distributed pursuant to an earlier plan to re-invest, if such proceeds are not
intended to be invested subsequently.
Less: Capital expenditure, if any (12.28) (27.15)
Less: Investments made in accordance with the investment objective, if any - -
Add/less: Any other item of non-cash expense / non cash income (net of actual cash - -
flows for these items), if deemed necessary by the Investment Manager, including
but not limited to
- any decrease/increase in carrying amount of an asset or a liability recognised in - -
profit and loss account on measurement of the asset or the liability at fair value;
- interest cost as per effective interest rate method (difference between accrued and - -
actual paid);
- deferred tax, lease rents, etc. 134.20 129.70
Less: Any provision or reserve deemed necessary by the Investment Manager - -
for expenses which may be due in the intervening period till next proposed
distribution, but for which there may not be commensurate amounts available by
the date such expenses become due
Less: Repayment of external debt (principal) / redeemable preference shares / - -
debentures, etc. / net cash set aside to comply with borrowing requirements under
agreements including DSRA, net of any debt raised by refinancing of existing debt
or/and any new debt raised
Add/ less: Amounts added or retained to make the distributable cash flows in - -
accordance with the Transaction Documents or the loan agreements
Add/Less: Any other adjustment to be undertaken by the board of directors of the 126.07 (31.93)
Investment Manager (the “IM Board”) to ensure that there is no double counting of
the same item for the above calculation*
Total Adjustments (B) 3,078.40 2,683.55
Net Distributable Cash Flows (C)=(A+B) 3,459.02 3,048.73

Note: During the period, amount not less than 90% of NDCF has already been distributed to PGInvIT.
* Other adjustments are with respect to changes in other non-current assets/liabilities which are not part of Working Capital.

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 CORPORATE OVERVIEW STATUTORY REPORTS FINANCIAL STATEMENTS

Additional disclosures as required by SEBI Master Circular No. SEBI/HO/DDHS-PoD-2/P/CIR/2023/115 dated

July 06, 2023

F) STATEMENT OF NET DISTRIBUTABLE CASH FLOWS (NDCFS) OF PJTL

₹ in million
Particulars For the year ended For the year ended
31 March 2024 31 March 2023
Profit after tax as per profit and loss account (standalone) (A) 209.04 157.96
Add: Depreciation, impairment and amortisation as per profit and loss account. 323.48 323.41
In case of impairment reversal, same needs to be deducted from profit and loss.
Add: Interest on loans availed from Trust as per profit and loss account 1,757.64 1,832.68
Add: Interest on unpaid interest (on account of loans availed from Trust) as per - -
profit and loss account
Add/Less: Decrease/Increase in working capital affecting the cash flow 66.43 203.66
Add/less: Loss/gain on sale of infrastructure assets - -
Add: Net Proceeds (after applicable taxes) from sale of infrastructure assets - -
adjusted for the following:
- related debts settled or due to be settled from sale proceeds; - -
- directly attributable transaction costs; - -
- proceeds reinvested or planned to be reinvested as per Regulation 18(7)(a) of the - -
InvIT Regulations
Add: Net Proceeds (after applicable taxes) from sale of infrastructure assets not - -
distributed pursuant to an earlier plan to re-invest, if such proceeds are not
intended to be invested subsequently.
Less: Capital expenditure, if any 0.05 -
Less: Investments made in accordance with the investment objective, if any - -
Add/less: Any other item of non-cash expense / non cash income (net of actual - -
cash flows for these items), if deemed necessary by the Investment Manager,
including but not limited to
- any decrease/increase in carrying amount of an asset or a liability recognised in - -
profit and loss account on measurement of the asset or the liability at fair value;
- interest cost as per effective interest rate method (difference between accrued - -
and actual paid);
- deferred tax, lease rents, etc. 74.24 57.70
Less: Any provision or reserve deemed necessary by the Investment Manager - -
for expenses which may be due in the intervening period till next proposed
distribution, but for which there may not be commensurate amounts available by
the date such expenses become due
Less: Repayment of external debt (principal) / redeemable preference shares / - -
debentures, etc. / net cash set aside to comply with borrowing requirements under
agreements including DSRA, net of any debt raised by refinancing of existing debt
or/and any new debt raised
Add/ less: Amounts added or retained to make the distributable cash flows in - -
accordance with the Transaction Documents or the loan agreements
Add/Less: Any other adjustment to be undertaken by the board of directors of the (43.57) (42.51)
Investment Manager (the “IM Board”) to ensure that there is no double counting of
the same item for the above calculation*
Total Adjustments (B) 2,178.27 2,374.94
Net Distributable Cash Flows (C)=(A+B) 2,387.31 2,532.90

Note: During the period, amount not less than 90% of NDCF has already been distributed to PGInvIT.
* Other adjustments are with respect to changes in other non-current assets/liabilities which are not part of Working Capital.

Annual Report 2023-24 119

Notes
to the Consolidated Financial Statements for the year ended March 31, 2024

1. GROUP INFORMATION:
POWERGRID Infrastructure Investment Trust 2. MATERIAL ACCOUNTING POLICY INFORMATION
(“PGInvIT”/”Trust”) was set up on 14 September 2020 as A summary of the material accounting policy information
an irrevocable trust, pursuant to the Trust Deed, under applied in the preparation of the consolidated financial
the provisions of the Indian Trusts Act, 1882. The Trust was statements are as given below. These accounting policies
registered with SEBI on 7 January 2021 as an infrastructure have been applied consistently to all periods presented in
investment trust under Regulation 3(1) of the SEBI
the consolidated financial statements. The Consolidated
InvIT Regulations having registration number IN/
financial statements of the group are consisting of the
InvIT/20-21/0016.
Trust and its subsidiaries.

Power Grid Corporation of India Limited (“POWERGRID”)

2.1 Basis of Preparation
is the Sponsor to the Trust. IDBI Trusteeship Services
Limited is the Trustee to the Trust. POWERGRID Unchahar i) Compliance with Ind AS and InvIT Regulations
Transmission Limited (“PUTL”) is appointed as the The consolidated financial statements comprise of
investment manager and POWERGRID is appointed as the the Consolidated Balance Sheet as at 31 March 2024,
project manager to the Trust. the Consolidated Statement of Profit and Loss
including the Statement of Other Comprehensive
The investment objectives of the Trust are to carry on the Income, the Consolidated Statement of Cash Flow
activities of and to make investments as an infrastructure and the Consolidated Statement of Changes in Unit
investment trust as permissible in terms of the SEBI Holders’ Equity for the year then ended and the
(Infrastructure Investment Trusts) Regulations, 2014 Consolidated Statement of Net Assets at fair value as
read with circulars and guidelines, notifications and at 31 March 2024 and the Consolidated Statement
amendments issued thereunder (collectively the “InvIT of Total Returns at fair value and the Statement of
Regulations”) and in accordance with the Trust Deed. Net Distributable Cash Flows (‘NDCFs’) of the Trust
The investment of the Trust shall be in any manner and each of its subsidiaries for the year then ended
permissible under, and in accordance with the InvIT and a summary of significant accounting policies and
Regulations and applicable law including in holding other explanatory notes prepared in compliance with
companies and/or special purpose vehicles and/or Indian Accounting Standards (Ind AS) notified under
infrastructure projects and/or securities in India. Section 133 of the Companies Act, 2013 (the Act),
Companies (Indian Accounting Standards) Rules,
PGInvIT is holding special purpose vehicle (“SPV”) / 2015 and InvIT Regulations, in each case, to the
subsidiaries which are infrastructure projects engaged in extent applicable and as amended thereafter.
the power transmission business in India. Details of the
same as on 31 March 2024 are as follows: ii) Basis of Measurement
The consolidated financial statements have been
Name of the SPV Equity Holding
prepared on accrual basis and under the historical
1. Vizag Transmission Limited 100%
cost convention except certain financial assets
(“VTL”) (formerly POWERGRID
and liabilities measured at fair value (Refer Note
Vizag Transmission
no. 2.15 for accounting policy regarding financial
Limited (“PVTL”))
instruments).
2. POWERGRID Kala Amb 74%
Transmission Limited (“PKATL”)
iii) Functional and presentation currency
3. POWERGRID Parli Transmission 74%
The consolidated financial statements are presented
Limited (“PPTL”)
in Indian Rupees (Rupees or ₹), which is the Group’s
4. POWERGRID Warora 74%
functional and presentation currency and all amounts
Transmission Limited (“PWTL”)
are rounded to the nearest million and two decimals
5. POWERGRID Jabalpur 74%
Transmission Limited (“PJTL”) thereof, except as stated otherwise.

The consolidated financial statements, comprise of iv) Use of estimates

the financial statement of PGInvIT and its subsidiaries The preparation of consolidated financial statements
(collectively, “the Group”) for the year ended 31 March 2024, requires estimates and assumptions that affect the
were approved by the Board of Directors of Investment reported amount of assets, liabilities, revenue and
manager on 22 May 2024. expenses during the reporting period. Although, such

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 CORPORATE OVERVIEW STATUTORY REPORTS FINANCIAL STATEMENTS

Notes
to the Consolidated Financial Statements for the year ended March 31, 2024

estimates and assumptions are made on a reasonable on which control is transferred to the Group. They are
and prudent basis taking into account all available deconsolidated from the date that control ceases.
information, actual results could differ from these
estimates. The estimates and underlying assumptions The Group combines the financial statement of the
are reviewed on an ongoing basis. Revisions to subsidiaries line by line adding together like items of
accounting estimates are recognised in the period assets, liabilities, equity, income, and expenses. Inter Group
in which the estimate is revised if the revision effects transactions, balances and unrealized gains on transactions
only that period or in the period of the revision and between companies are eliminated. Unrealized losses are
future periods if the revision affects both current also eliminated unless the transaction provides evidence of
and future years (Refer Note no. 33 on Significant an impairment of the transferred asset. Accounting policies
accounting judgements, estimates and assumptions). of subsidiaries are harmonised to ensure consistency with
the policies adopted by the Group.
v) Current and non-current classification
The Group presents assets and liabilities in the The acquisition method of accounting is used to account
balance sheet based on current/non-current for business combination by the group.
classification. An asset is current when it is:
Non-controlling interest represents that part of the total
• Expected to be realized or intended to be sold comprehensive income and net assets of subsidiaries
or consumed in normal operating cycle; attributable to interests which are not owned, directly or
• Held primarily for the purpose of trading; indirectly, by the Trust.

• Expected to be realized within twelve months The consolidated financial statements have been prepared
after the reporting period; or in accordance with Indian Accounting Standard (Ind AS)
• Cash or cash equivalent unless restricted 110 – ‘Consolidated Financial Statements’
from being exchanged or used to settle a
liability for at least twelve months after the 2.3 Business Combinations
reporting period. Business combinations are accounted for using the
acquisition method. The cost of an acquisition is measured
All other assets are classified as non-current.
as the aggregate of the consideration transferred measured
A liability is current when: at acquisition date fair value and the amount of any
• It is expected to be settled in normal non-controlling interests in the acquiree. For each business
operating cycle; combination, the Group elects whether to measure the
non-controlling interests in the acquiree at fair value or
• It is held primarily for the purpose of trading; at the proportionate share of the acquiree’s identifiable
• It is due to be settled within twelve months after net assets. Acquisition related costs are recognised in the
the reporting period; or statement of profit and loss as incurred.

• There is no unconditional right to defer The acquiree’s identifiable assets, liabilities and contingent
settlement of the liability for at least twelve liabilities that meet the condition for recognition are
months after the reporting period. recognised at their fair values at the acquisition date.
All other liabilities are classified as non-current. Goodwill arising on business combination is initially
measured at cost, being the excess of the aggregate of the
Deferred tax assets/liabilities are classified as
consideration transferred and the amount recognised for
non-current.
non-controlling interests, and any previous interest held,
The Group recognizes twelve months period as its over the fair value of net identifiable assets acquired and
operating cycle. liabilities assumed. After initial recognition, Goodwill is
tested for impairment annually and measured at cost less
2.2 Principles of Consolidation any accumulated impairment losses if any. Any impairment
Subsidiaries are entities over which the Group has control. loss for goodwill is recognised in the statement of profit
The Group controls an entity when the Group is exposed and loss.
to, or has right to, variable returns from its involvement
with the entity and has the ability to affect those returns 2.4 Fair value measurement
through its power to direct the relevant activities of the The Group measures financial instruments at fair value at
entity. Subsidiaries are fully consolidated from the date each balance sheet date.

Annual Report 2023-24 121

Notes
to the Consolidated Financial Statements for the year ended March 31, 2024

Fair value is the price that would be received to sell an In estimating the fair value of investments in subsidiaries,
asset or paid to transfer a liability in an orderly transaction the Group engages independent qualified external
between market participants at the measurement date. valuers to perform the valuation. The management
The fair value measurement is based on the presumption works closely with the external valuers to establish the
that the transaction to sell the asset or transfer the liability appropriate valuation techniques and inputs to the model.
takes place either: The management in conjunction with the external valuers
also compares the change in fair value with relevant
• In the principal market for the asset or liability, or
external sources to determine whether the change is
• In the absence of a principal market, in the most reasonable. The management reports the valuation report
advantageous market for the asset or liability. and findings to the Board of the Investment Manager half
yearly to explain the cause of fluctuations in the fair value
The principal or the most advantageous market must be of the projects.
accessible by the Group.
At each reporting date, the management analyses the
The fair value of an asset or a liability is measured using movement in the values of assets and liabilities which are
the assumptions that market participants would use required to be remeasured or reassessed as per the Group’s
when pricing the asset or liability, assuming that market accounting policies. For this analysis, the management
participants act in their economic best interest. verifies the major inputs applied in the latest valuation by
agreeing the information in the valuation computation
A fair value measurement of a non-financial asset takes based upon relevant documents.
into account a market participant’s ability to generate
economic benefits by using the asset in its highest and For the purpose of fair value disclosures, the Group has
best use or by selling it to another market participant that determined classes of assets and liabilities on the basis of
would use the asset in its highest and best use. the nature, characteristics and risks of the asset or liability
and the level of the fair value hierarchy, as explained above.
The Group uses valuation techniques that are appropriate
in the circumstances and for which sufficient data are This note summarises accounting policy for fair value.
available to measure fair value, maximising the use of Other fair value related disclosures are given in the
relevant observable inputs and minimising the use of relevant notes.
unobservable inputs.
• Quantitative disclosures of fair value measurement
All assets and liabilities for which fair value is measured hierarchy (Note 39)
or disclosed in the financial statements are categorised
within the fair value hierarchy, described as follows, based • Disclosures for valuation methods, significant
on the lowest level input that is significant to the fair value estimates and assumptions (Note 33 and 39)
measurement as a whole:
• Financial instruments (including those carried at
Level 1- Quoted (unadjusted) market prices in active amortised cost) (Note 7,10,13,17,20,21,22)
markets for identical assets or liabilities;
2.5 Property, Plant and Equipment
Level 2- Valuation techniques for which the lowest level
Initial Recognition and Measurement
input that is significant to the fair value measurement is
directly or indirectly observable; Property, Plant and Equipment is initially measured at
cost of acquisition/construction including any costs
Level 3- Valuation techniques for which the lowest level directly attributable to bringing the asset to the location
input that is significant to the fair value measurement is and condition necessary for it to be capable of operating
unobservable. in the manner intended by management. After initial
recognition, Property, Plant and Equipment is carried at
For assets and liabilities that are recognised in the cost less accumulated depreciation / amortisation and
financial statements on a recurring basis, the Group accumulated impairment losses, if any.
determines whether transfers have occurred between
levels in the hierarchy by re-assessing categorisation In the case of commissioned assets, where final settlement
(based on the lowest level input that is significant to the of bills with contractors is yet to be effected, capitalization
fair value measurement as a whole) at the end of each is done on provisional basis subject to necessary
reporting period. adjustments in the year of final settlement.

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 CORPORATE OVERVIEW STATUTORY REPORTS FINANCIAL STATEMENTS

Notes
to the Consolidated Financial Statements for the year ended March 31, 2024

Transmission system assets are considered as ready for 2.6 Capital Work-In-Progress (CWIP)
intended use after meeting the conditions for commercial Cost of material, erection charges and other expenses
operation as stipulated in Transmission Service Agreement incurred for the construction of Property, Plant and
(TSA) and capitalized accordingly. Equipment are shown as CWIP based on progress of
erection work till the date of capitalization.
The cost of land includes provisional deposits, payments/
liabilities towards compensation, rehabilitation and other Expenditure of office and Projects, directly attributable
expenses wherever possession of land is taken. to construction of property, plant and equipment are
identified and allocated on a systematic basis to the cost
Expenditure on levelling, clearing and grading of land is of the related assets.
capitalized as part of cost of the related buildings.
Interest during construction and expenditure (net)
Spares parts whose cost is ₹5,00,000/- and above, standby allocated to construction as per policy above are kept
equipment and servicing equipment which meets the as a separate item under CWIP and apportioned to the
recognition criteria of Property, Plant and Equipment are assets being capitalized in proportion to the closing
capitalized. balance of CWIP.

Subsequent costs Deposit works/cost-plus contracts are accounted for on

the basis of statement received from the contractors or
Subsequent expenditure is recognized as an increase in
technical assessment of work completed.
carrying amount of assets when it is probable that future
economic benefits deriving from the cost incurred will flow Unsettled liability for price variation/exchange rate
to the group and cost of the item can be measured reliably. variation in case of contracts is accounted for on estimated
basis as per terms of the contracts.
The cost of replacing part of an item of Property, Plant
and Equipment is recognized in the carrying amount of 2.7 Intangible Assets and Intangible Assets under
the item if it is probable that future economic benefits development
embodied within the part will flow to the group and its Intangible assets with finite useful life that are acquired
cost can be measured reliably. The carrying amount of the separately and are carried at cost less any accumulated
replaced part is derecognized. amortisation and accumulated impairment losses.

If the cost of the replaced part or earlier inspection Subsequent expenditure on already capitalized Intangible
component is not available, the estimated cost of assets is capitalised when it increases the future economic
similar new parts/inspection component is used as an benefits embodied in an existing asset and is amortised
indication of what the cost of the existing part/ inspection prospectively.
component was when the item was acquired or inspection
was carried out. The cost of software (which is not an integral part of the
related hardware) acquired for internal use and resulting
The costs of the day-to-day servicing of property, plant and in significant future economic benefits is recognized as an
equipment are recognised in the Statement of Profit and intangible asset when the same is ready for its use.
Loss as incurred.
Afforestation charges for acquiring right-of-way for laying
Derecognition transmission lines are accounted for as intangible assets
on the date of capitalization of related transmission lines.
An item of Property, Plant and Equipment is derecognized
when no future economic benefits are expected from their Expenditure on development shall be recognised as
use or upon their disposal. intangible asset if it meets the eligibility criteria as per Ind
AS 38 “Intangible Assets”, otherwise it shall be recognised
The gain or loss arising from derecognition of an item as an expense.
of property, plant and equipment is determined as the
difference between the net disposal proceeds and the Expenditure incurred, eligible for capitalization under the
carrying amount of the asset and is recognised in the head Intangible Assets, are carried as “Intangible Assets
Statement of Profit and Loss on the date of disposal or under Development” till such assets are ready for their
retirement. intended use.

Annual Report 2023-24 123

Notes
to the Consolidated Financial Statements for the year ended March 31, 2024

An item of Intangible asset is derecognised upon disposal Where the cost of depreciable property, plant and
or when no future economic benefits are expected from its equipment has undergone a change due to increase/
use or disposal. Gains or losses arising from derecognition decrease in long term monetary items on account of
of an intangible asset are measured as the difference exchange rate fluctuation, price adjustment, change in
between the net disposal proceeds and the carrying duties or similar factors, the unamortized balance of such
amount of the asset and are recognised in the Statement asset is depreciated prospectively.
of Profit and Loss when the asset is derecognised.
Depreciation on additions to/deductions from Property,
2.8 Depreciation / Amortisation Plant and Equipment during the year is charged on
pro-rata basis from/up to the date on which the asset is
Property, Plant and Equipment
available for use/disposed.
Depreciation/Amortisation on the items of Property, Plant
and Equipment related to transmission business under The residual values, useful lives and methods of
Tariff Based Competitive Bidding (TBCB) mechanism is depreciation for items of property, plant and equipment
provided on straight line method based on the useful life are reviewed at each financial year-end and adjusted
specified in Schedule II of the Companies Act, 2013. prospectively, wherever required

Depreciation/Amortisation on items of Property, Plant Right of Use Assets:

and Equipment related to transmission business under Right of Use assets are fully depreciated from the lease
Regulated Tariff Mechanism (RTM) mechanism is commencement date on a straight line basis over the
provided on straight line method following the rates and lease term.
methodology notified by the CERC for the purpose of
recovery of tariff Leasehold land is fully amortized over lease period or life
of the related plant whichever is lower. Leasehold land
Depreciation/Amortisation for the following items acquired on perpetual lease is not amortized.
of Property, Plant and Equipment is provided based
Intangible Assets
on estimated useful life as per technical assessment
considering the terms of Transmission Service Agreement Cost of software capitalized as intangible asset is amortized
entered with Long Term Transmission Customers/ CERC over the period of legal right to use or 3 years, whichever is
Regulations: less with Nil residual value.

Afforestation charges are amortized over thirty-five years

Particulars Useful life
a. Computers and Peripherals 3 Years from the date of capitalization of related transmission
b. Servers and Network Components 5 years assets following the straight line method, with Nil
c. Buildings (RCC frame structure) 35 years Residual Value.
d. Transmission line 35 years
e. Substation Equipment 35 years Amortisation on additions to/deductions from Intangible
Assets during the year is charged on pro-rata basis from/up
Depreciation on spares parts, standby equipment and to the date on which the asset is available for use/disposed.
servicing equipment which are capitalized, is provided on
straight line method from the date they are available for The amortization period and the amortization method for
use over the remaining useful life of the related assets of an intangible asset are reviewed at each financial year-end
transmission business and are accounted for as change in accounting estimates
in accordance with Ind AS 8 “Accounting Policies, Changes
Mobile phones are charged off in the year of purchase. in Accounting Estimates and Errors”

Residual value is considered for all items of Property, Plant 2.9 Borrowing Costs
and Equipment in line with Companies Act, 2013 except Borrowing costs directly attributable to the acquisition
for Computers and Peripherals and Servers and Network or construction of qualifying assets are capitalized (net of
Components for which residual value is considered as Nil. income on temporary deployment of funds) as part of the
cost of such assets till the assets are ready for the intended
Property, plant and equipment costing ₹5,000/- or less, are use. Qualifying assets are assets which take a substantial
fully depreciated in the year of acquisition. period of time to get ready for their intended use.

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 CORPORATE OVERVIEW STATUTORY REPORTS FINANCIAL STATEMENTS

Notes
to the Consolidated Financial Statements for the year ended March 31, 2024

All other borrowing costs are recognised in Statement of 2.12 Inventories

Profit and Loss in the period in which they are incurred. Inventories are valued at lower of the cost, determined on
weighted average basis and net realizable value.
Borrowing costs includes interest expenses, other costs
in connection with borrowing of fund and exchange Spares which do not meet the recognition criteria as
differences to the extent regarded as an adjustment to Property, Plant and Equipment including spare parts whose
borrowing costs. cost is less than ₹5,00,000/- are recorded as inventories.

2.10 Impairment of non-financial assets Surplus materials as determined by the management are
The carrying amounts of the Groups’ non-financial assets held for intended use and are included in the inventory.
are reviewed at least annually to determine whether there
The diminution in the value of obsolete, unserviceable
is any indication of impairment considering the provisions
and surplus stores and spares is ascertained on review
of Ind AS 36 ‘Impairment of Assets’. If any such indication
and provided for.
exists, then the asset’s recoverable amount is estimated.
2.13 Leases
The recoverable amount of an asset or cash-generating unit
Lease is a contract that conveys the right to control the
is the higher of its fair value less costs to disposal and its
use of an identified asset for a period of time in exchange
value in use. In assessing value in use, the estimated future
for consideration.
cash flows are discounted to their present value using a
discount rate that reflects current market assessments of
To assess whether a contract conveys the right to control
the time value of money and the risks specific to the asset
the use of an identified asset, the group assesses whether:
for which the estimates of future cash flows have not been (i) the contract involves use of an identified asset, (ii) the
adjusted. For the purpose of impairment testing, assets customer has substantially all the economic benefits from
that cannot be tested individually are grouped together the use of the asset through the period of the lease and (iii)
into the smallest group of assets that generates cash the customer has the right to direct the use of the asset.
inflows from continuing use that are largely independent
of the cash inflows of other assets or groups of assets (the i) As a Lessee
“cash-generating unit”, or “CGU”). At the date of commencement of the lease, the
group recognises a right-of-use asset (ROU)
An impairment loss is recognized if the carrying amount and a corresponding lease liability for all lease
of an asset or its CGU exceeds its estimated recoverable arrangements in which it is a lessee, except for lease
amount. Impairment losses are recognized in the with a term of twelve months or less (i.e. short term
statement of profit and loss. Impairment losses recognized leases) and leases for which the underlying asset
in respect of CGUs are reduced from the carrying amounts is of low value. For these short-term and leases for
of the assets of the CGU. which the underlying asset is of low value, the group
recognizes the lease payments on straight-line basis
Impairment losses recognized in prior periods are assessed over the term of the lease.
at each reporting date for any indications that the loss
has decreased or no longer exists. An impairment loss is Certain lease arrangements includes the options to
reversed if there has been a change in the estimates used extend or terminate the lease before the end of the
to determine the recoverable amount. An impairment lease term. ROU assets and lease liabilities includes
loss is reversed only to the extent that the asset’s carrying these options when it is reasonably certain that they
amount does not exceed the carrying amount that would will be exercised.
have been determined, net of depreciation or amortization,
The right-of-use assets are initially recognized at
if no impairment loss had been recognized.
cost, which comprises the amount of the initial
measurement of the lease liability adjusted for any
2.11 Cash and cash equivalents
lease payments made at or before the inception
Cash and cash equivalents include cash on hand and at date of the lease along with any initial direct costs,
bank, and deposits held at call with banks having a maturity restoration obligations and lease incentives received.
of three months or less from the date of acquisition that
are readily convertible to a known amount of cash and are Subsequently, the right-of-use assets is measured at
subject to an insignificant risk of changes in value cost less any accumulated depreciation, accumulated

Annual Report 2023-24 125

Notes
to the Consolidated Financial Statements for the year ended March 31, 2024

impairment losses, if any and adjusted for any 2.14 Employee benefits
remeasurement of the lease liability. The group Employee benefits are all forms of consideration given by
applies Ind AS 36 to determine whether a ROU asset is an entity in exchange for service rendered by employees
impaired and accounts for any identified impairment or for the termination of employment.
loss as described in the accounting policy 2.10 on
“Impairment of non-financial assets”. Short-term employee benefits are employee benefits
(other than termination benefits) that are expected to be
The lease liability is initially measured at present value settled wholly before twelve months after the end of the
of the lease payments that are not paid at that date. annual reporting period in which the employees render
the related service.
The interest cost on lease liability is expensed in
the Statement of Profit and Loss, unless eligible Employee benefit obligations are measured on an
for capitalization as per accounting policy 2.9 on undiscounted basis and are expensed as the related
“Borrowing costs”. service is provided

Lease liability and ROU asset have been separately 2.15 Financial Instruments
presented in the financial statements and lease A financial instrument is any contract that gives rise to
payments have been classified as financing a financial asset of one entity and a financial liability or
cash flows. equity instrument of another entity.

ii) As a Lessor Financial Assets

A lease is classified at the inception date as a finance Classification
lease or an operating lease.
The group classifies its financial assets in the following
categories:
a) Finance leases
A lease that transfers substantially all the risks • at amortised cost,
and rewards incidental to ownership of an asset • at fair value through other comprehensive income
is classified as a finance lease.
• at fair value through profit and loss
Net investment in leased assets is recorded The classification depends on the following:
as receivables at the lower of the fair value
• the entity’s business model for managing the
of the leased property and the present value
financial assets and
of the minimum lease payments as Lease
Receivables under current and non-current • the contractual cash flow characteristics of the
other financial assets. financial asset

The interest element of lease is accounted in Initial recognition and measurement

the Statement of Profit and Loss over the lease All financial assets are recognised initially at fair value
period based on a pattern reflecting a constant plus, in the case of financial assets not recorded at fair
periodic rate of return on the net investment. value through profit or loss, transaction costs, if any, that
are attributable to the acquisition of the financial asset.
b) Operating leases However, trade receivables that do not contain a significant
An operating lease is a lease other than a finance financing component are measured at transaction price.
lease. Leases in which a significant portion of
the risks and rewards of ownership are retained Subsequent measurement
by the lessor are classified as operating leases. Debt Instruments at Amortised cost: Assets that are held
for collection of contractual cash flows where those cash
For operating leases, the asset is capitalized as flows represent solely payments of principal and interest
property, plant and equipment and depreciated are measured at amortised cost. A gain or loss on a debt
over its economic life. Rental income from investment that is subsequently measured at amortised
operating lease is recognized over the term of cost is recognised in profit or loss when the asset is
the arrangement. derecognised or impaired. Interest income from these

126 POWERGRID Infrastructure Investment Trust

 CORPORATE OVERVIEW STATUTORY REPORTS FINANCIAL STATEMENTS

Notes
to the Consolidated Financial Statements for the year ended March 31, 2024

financial assets is included in finance income using the all the risks and rewards of the asset, but has
effective interest rate method. transferred control of the asset.

Debt Instruments at Fair value through other The difference between the carrying amount and the
comprehensive income (FVOCI): Assets that are held for amount of consideration received/receivable is recognised
collection of contractual cash flows and for selling the in the Statement of Profit and Loss.
financial assets, where the assets’ cash flows represent
solely payments of principal and interest, are measured at Impairment of financial assets:
fair value through other comprehensive income (FVOCI). For trade receivables and contract assets, the group applies
On derecognition of the asset, cumulative gain or loss
the simplified approach required by Ind AS 109 Financial
previously recognised in Other Comprehensive Income
Instruments, which requires expected lifetime losses to be
(OCI) is reclassified from the equity to profit and loss.
recognised from initial recognition of the receivables.
Interest income from these financial assets is included in
finance income using the effective interest rate method.
For recognition of impairment loss on other financial assets
and risk exposure, the group determines whether there
Debt instruments at Fair value through profit or loss
has been a significant increase in the credit risk since initial
(FVPL): Assets that do not meet the criteria for amortised
recognition. If credit risk has not increased significantly,
cost or FVOCI are measured at fair value through profit
or loss. Interest income and net gain or loss on a debt 12-month Expected Credit Loss (ECL) is used to provide
instrument that is subsequently measured at FVPL are for impairment loss. However, if credit risk has increased
recognised in statement of profit and loss and presented significantly, lifetime ECL is used. If, in a subsequent period,
within other income in the period in which it arises. credit quality of the instrument improves such that there
is no longer a significant increase in credit risk since
Equity investments initial recognition, then the entity reverts to recognizing
All equity investments in scope of Ind AS 109 ‘Financial impairment loss allowance based on 12 -month ECL.
Instruments’ are measured at fair value. The group may,
on initial recognition, make an irrevocable election to Financial Liabilities
present subsequent changes in the fair value in other Financial liabilities of the group are contractual obligation
comprehensive income (FVOCI) on an instrument to deliver cash or another financial asset to another entity
by-instrument basis. or to exchange financial assets or financial liabilities with
another entity under conditions that are potentially
For equity instruments classified as at FVOCI, all fair value unfavourable to the group.
changes on the instrument, excluding dividends are
recognized in the OCI. There is no recycling of the amounts The group’s financial liabilities include loans & borrowings,
from OCI to Profit or Loss, even on sale of investment. trade and other payables.
However, the group may transfer the cumulative gain or
loss within equity. Classification, initial recognition and measurement
Financial liabilities are recognised initially at fair value
Derecognition of financial assets
minus transaction costs that are directly attributable to
A financial asset is derecognized only when the issue of financial liabilities.

i) The rights to receive cash flows from the asset have Subsequent measurement
expired, or
After initial recognition, financial liabilities are subsequently
ii) a) The group has transferred the rights to receive measured at amortised cost using the effective interest
cash flows from the financial asset (or) retains rate (EIR) method. Amortised cost is calculated by taking
the contractual rights to receive the cash flows into account any discount or premium on acquisition
of the financial assets, but assumes a contractual and fees or costs that are an integral part of the effective
obligation to pay the cash flows to one or more interest rate. Any difference between the proceeds (net
recipients and of transaction costs) and the redemption amount is
recognised in the Statement of Profit and Loss over the
b) the group has transferred substantially all the period of the borrowings using the EIR. Gains and losses
risks and rewards of the asset (or) the group has are recognised in Statement of Profit and Loss when the
neither transferred nor retained substantially liabilities are derecognised.

Annual Report 2023-24 127

Notes
to the Consolidated Financial Statements for the year ended March 31, 2024

The EIR amortisation is included as finance costs in the Current income tax
Statement of Profit and Loss. The Current Tax is based on taxable profit for the year
under the tax laws enacted and applicable to the reporting
Derecognition of financial liability period in the countries where the group operates and
A financial liability is derecognised when the obligation generates taxable income and any adjustment to tax
under the liability is discharged or cancelled or expires. payable in respect of previous years.
When an existing liability is replaced by another from the
same lender on substantially different terms, or the terms Deferred tax
of an existing liability are substantially modified, such an Deferred tax is recognised on temporary differences
exchange or modification is treated as the derecognition between the carrying amounts of assets and liabilities in
of the original liability and the recognition of a new the group’s financial statements and the corresponding
liability. The difference between the carrying amount of a tax bases used in the computation of taxable profit
and is accounted for using the Balance Sheet method.
financial liability that has been extinguished or transferred
Deferred tax assets are generally recognised for all
to another party and the consideration paid, including
deductible temporary differences, unused tax losses and
any non-cash assets transferred or liabilities assumed, is
unused tax credits to the extent that it is probable that
recognised in Statement of Profit and Loss as other income
future taxable profits will be available against which those
or finance cost. deductible temporary differences, unused tax losses and
unused tax credits can be utilised. The carrying amount of
Offsetting of financial instruments deferred tax assets is reviewed at each Balance Sheet date
Financial assets and financial liabilities are offset and the and reduced to the extent that it is no longer probable that
net amount is reported in the Balance Sheet if there is a sufficient taxable profits will be available against which the
currently enforceable legal right to offset the recognised temporary differences can be utilised.
amounts and there is an intention to settle on a net basis,
to realise the assets and settle the liabilities simultaneously. Deferred tax assets and liabilities are measured at the tax
rates that are expected to apply in the period in which the
2.16 Foreign Currencies Translation liability is settled or the asset realised, based on tax rates
(and tax laws) that have been enacted or substantively
The Group’s financial statements are presented in INR,
enacted by the Balance Sheet date.
which is its functional currency. The Group does not have
any foreign operation. Deferred tax assets and liabilities are offset if there is a
legally enforceable right to offset current tax liabilities and
Transactions and balances assets, and they relate to income taxes levied by the same
Transactions in foreign currencies are initially recorded by tax authority.
the group at the exchange rate prevailing on the date of
transaction. Monetary assets and liabilities denominated Deferred tax assets include Minimum Alternative Tax
in foreign currencies are translated with reference to the (MAT) paid in accordance with the tax laws in India, which
rates of exchange ruling on the date of the reporting date. is likely to give future economic benefits in the form of
availability of set off against future income tax liability.
Exchange differences arising on settlement or translation MAT is recognised as deferred tax asset in the balance
sheet when the asset can be measured reliably and it is
of monetary items are recognised in profit or loss.
probable that the future economic benefit associated with
the asset will be realised.
Non-monetary items that are measured in terms of
historical cost in a foreign currency are translated using
2.18 Revenue
the exchange rates at the dates of the initial transactions.
Revenue for transmission business under TBCB route is
2.17 Income Tax measured based on the transaction price to which the
Group expects to be entitled in a contract with a customer
Income tax expense represents the sum of current and and excludes amounts collected on behalf of third parties.
deferred tax. Tax is recognised in the Statement of Profit
and Loss, except to the extent that it relates to items Revenue for transmission business under RTM route is
recognised directly in equity or other comprehensive accounted for based on tariff order notified by CERC.
income. In this case the tax is also recognised directly in In case of transmission projects where final tariff orders are
equity or in other comprehensive income. yet to be notified, revenue is accounted for on provisional

128 POWERGRID Infrastructure Investment Trust

 CORPORATE OVERVIEW STATUTORY REPORTS FINANCIAL STATEMENTS

Notes
to the Consolidated Financial Statements for the year ended March 31, 2024

basis as per tariff regulations and orders of the CERC in Revenue from rentals and operating leases is
similar cases. Difference, if any, is accounted on issuance recognized on an accrual basis in accordance with
of final tariff orders by the CERC. the substance of the relevant agreement.

The Group recognises revenue when it transfers control of Income from dividend on investments is accrued in
a product or service to a customer. the year in which it is declared, whereby the Group’s
right to receive is established.
Significant Financing Component
Where the period between the transfer of the promised 2.19 Cash distributions to unit holders
goods or services to the customer and payment by the
The group recognises a liability to make cash distributions to
customer exceeds one year, the Company assesses the
unit holders when the distribution is authorised, and a legal
effects of significant financing component in the contract.
obligation has been created. As per the InvlT Regulations, a
As a consequence, the Company makes adjustment in the
distribution is authorised when it is approved by the Board
transaction prices for the effects of time value of money.
of Directors of the Investment Manager. A corresponding
2.18.1 Revenue from Operations amount is recognised directly in equity.
Transmission Income is accounted for based on
orders issued by CERC u/s 63 of Electricity Act 2003
2.20 Provision and contingencies
for adoption of transmission charges. As at each Provisions
reporting date, transmission income includes an Provisions are recognised when the group has a present
accrual for services rendered to the customers but obligation (legal or constructive) as a result of a past event,
not yet billed. it is probable that an outflow of resources embodying
economic benefits will be required to settle the obligation
Rebates allowed to beneficiaries as early payment
and a reliable estimate can be made of the amount of
incentives are deducted from the amount of revenue.
the obligation. If the effect of the time value of money is
The Transmission system incentive / disincentive is material, provisions are discounted. Unwinding of the
accounted for based on certification of availability discount is recognised in the Statement of Profit and Loss as
by the respective Regional Power Committees (RPC) a finance cost. Provisions are reviewed at each Balance Sheet
and in accordance with the Transmission Service date and are adjusted to reflect the current best estimate.
Agreement (TSA) entered between the Transmission
Service Provider and long term Transmission Contingencies
Customers. Where certification by RPCs is not Contingent liabilities are disclosed on the basis of
available, incentive/disincentive is accounted for on judgment of the management / independent experts.
provisional basis as per estimate of availability by These are reviewed at each balance sheet date and are
the group and differences, if any, is accounted upon adjusted to reflect the current management estimate.
certification by RPCs.
Contingent liabilities are disclosed when there is a
2.18.2 Other Income possible obligation arising from past events, the existence
Interest income is recognized, when no significant of which will be confirmed only by the occurrence or
uncertainty as to measurability or collectability exists, non-occurrence of one or more uncertain future events
on a time proportion basis taking into account the not wholly within the control of the group or a present
amount outstanding and the applicable interest rate, obligation that arises from past events where it is either
using the effective interest rate method (EIR). not probable that an outflow of resources will be required
to settle or a reliable estimate of the amount cannot be
Surcharge recoverable from trade receivables,
made. Information on contingent liability is disclosed in
liquidated damages, warranty claims and interest
the Notes to the Financial Statements.
on advances to suppliers are recognized when
no significant uncertainty as to measurability and Contingent assets are possible assets that arise from past
collectability exists. events and whose existence will be confirmed only by the
Income from Scrap is accounted for as and when sold. occurrence or non-occurrence of one or more uncertain
future events not wholly within the control of the group.
Insurance claims for loss of profit are accounted Contingent assets are disclosed in the financial statements
for in the year of acceptance. Insurance claims are when inflow of economic benefits is probable on the
accounted for based on certainty. basis of judgment of management. These are assessed

Annual Report 2023-24 129

Notes
to the Consolidated Financial Statements for the year ended March 31, 2024

continually to ensure that developments are appropriately and weighted average number of shares outstanding
reflected in the financial statements. during the year.

2.21 Prior Period Items Diluted earnings per unit is computed using the net profit
Material prior period errors are corrected retrospectively or loss for the year attributable to the unitholders and
by restating the comparative amounts for prior period weighted average number of units and potential units
presented in which the error occurred or if the error outstanding during the year, except where the result would
occurred before the earliest period presented, by restating be anti-dilutive.
the opening balance sheet.
2.23 Statement of Cash Flows
2.22 Earnings per unit Statement of Cash Flows is prepared as per indirect method
Basic earnings per unit is computed using the net prescribed in the Ind AS 7 ‘Statement of Cash Flows.
profit or loss for the year attributable to the unitholders

130 POWERGRID Infrastructure Investment Trust

 NOTE 3/PROPERTY, PLANT AND EQUIPMENT
₹ in million
Cost Accumulated depreciation Net Book Value
Particulars As at Additions Disposal Adjustment As at As at Additions Disposal Impairment As at As at As at
01 April during during 31 March 01 April during 31 March 31 March 31 March
Notes
2023 the year the year 2024 2023 the year 2024 2024 2023
Land
CORPORATE OVERVIEW

Freehold 309.04 - - - 309.04 - - - - - 309.04 309.04

Buildings
Sub-Stations & Office 322.75 - - - 322.75 47.92 9.17 - (4.50) 52.59 270.16 274.83
Township 14.31 0.07 - - 14.38 1.81 0.47 - (0.17) 2.11 12.27 12.50
Plant & Equipment
Transmission 94,863.70 - 1.00 0.20 94,862.50 20,928.95 2,571.85 0.20 (2,204.66) 21,295.93 73,566.56 73,934.75
Substation 15,281.71 280.06 - - 15,561.77 3,138.15 417.68 - (252.11) 3,303.73 12,258.04 12,143.56
Unified Load Dispatch & Communication 42.41 - - - 42.41 12.20 1.95 - (0.63) 13.52 28.89 30.21
Furniture and Fixtures 21.11 - - - 21.11 7.20 1.87 - (0.26) 8.81 12.30 13.91
STATUTORY REPORTS

Office equipment 2.68 - - - 2.68 1.50 0.37 - (0.03) 1.83 0.85 1.18
Electronic Data Processing & Word 0.73 8.79 - - 9.52 0.71 1.49 - - 2.20 7.32 0.02
Processing Machines
Construction and Workshop equipment 0.14 - - - 0.14 0.03 - - - 0.04 0.10 0.11
Electrical Installation 4.06 - - - 4.06 1.40 0.34 - (0.04) 1.70 2.36 2.66
Workshop & Testing Equipments 25.04 5.16 - - 30.20 2.35 0.94 - (0.33) 2.96 27.24 22.69
Miscellaneous Assets/Equipments 0.18 0.49 - - 0.67 0.13 0.02 - (0.02) 0.13 0.54 0.05
Total 1,10,887.86 294.57 1.00 0.20 1,11,181.23 24,142.35 3,006.15 0.20 (2,462.75) 24,685.55 86,495.67 86,745.51
Further Note :
FINANCIAL STATEMENTS

The Group owns 72.53 Hectare of Freehold Land amounting to ₹ 201.19 million based on available Documentation.
to the Consolidated Financial Statements for the year ended March 31, 2024

Annual Report 2023-24

131
 ₹ in million

132
Cost Accumulated depreciation Net Book Value
As at 01 Additions Disposal Adjustment As at 31 As at 01 Additions Disposal Impairment As at 31 As at 31 As at 31
Particulars April during during March April during March March March
2022 the year the year 2023 2022 the year 2023 2023 2022
Notes
Land
Freehold 309.04 - - - 309.04 - - - - - 309.04 309.04
Buildings
Sub-Stations & Office 314.14 8.61 - - 322.75 29.96 9.22 - 8.74 47.92 274.83 284.18
Township 14.31 - - - 14.31 1.23 0.41 - 0.17 1.81 12.50 13.08
Plant & Equipment
Transmission 94,856.07 7.63 - - 94,863.70 10,672.11 2,571.81 - 7,685.03 20,928.95 73,934.75 84,183.96
Substation 15,236.67 45.04 - - 15,281.71 1,749.82 413.32 - 975.01 3,138.15 12,143.56 13,486.85
Unified Load Dispatch & Communication 42.41 - - - 42.41 6.15 1.96 - 4.09 12.20 30.21 36.26
Furniture and Fixtures 21.11 - - - 21.11 3.61 1.88 - 1.71 7.20 13.91 17.50
Office equipment 2.46 0.22 - - 2.68 1.01 0.39 - 0.10 1.50 1.18 1.45

POWERGRID Infrastructure Investment Trust

Electronic Data Processing & Word 0.73 - - - 0.73 0.71 - - - 0.71 0.02 0.02
Processing Machines
Construction and Workshop equipment 0.14 - - - 0.14 0.02 - - 0.01 0.03 0.11 0.12
Electrical Installation 4.06 - - - 4.06 1.02 0.34 - 0.04 1.40 2.66 3.04
Workshop & Testing Equipments 25.04 - - - 25.04 1.09 0.90 - 0.36 2.35 22.69 23.95
Miscellaneous Assets/Equipments 0.18 - - - 0.18 0.09 0.03 - 0.01 0.13 0.05 0.09
Total 1,10,826.36 61.50 - - 1,10,887.86 12,466.82 3,000.26 - 8,675.27 24,142.35 86,745.51 98,359.54

Further Note :
The Group owns 72.53 Hectare of Freehold Land amounting to ₹ 201.19 million based on available Documentation.
to the Consolidated Financial Statements for the year ended March 31, 2024
 CORPORATE OVERVIEW STATUTORY REPORTS FINANCIAL STATEMENTS

Notes
to the Consolidated Financial Statements for the year ended March 31, 2024

NOTE 4/CAPITAL WORK IN PROGRESS

₹ in million
Particulars As at Additions Adjustments Capitalised As at
01 April 2023 during the year during the year 31 March 2024
Buildings
Sub-Stations & Office - - - - -
Township 48.89 15.89 - - 64.78
Plant & Equipments (including
associated civil works)
Transmission - - - - -
Sub-Station 36.44 272.81 - 299.19 10.06
Furniture & Fixtures - - - - -
Construction Stores (Net of Provision) 65.89 145.86 211.75 - -
Total 151.22 434.56 211.75 299.19 74.84

₹ in million
Particulars As at Additions Adjustments Capitalised As at
01 April 2022 during the year during the year 31 March 2023
Buildings
Sub-Stations & Office - 5.72 - 5.72 -
Township 24.76 27.02 - 2.89 48.89
Plant & Equipments (including
associated civil works)
Transmission - 7.63 - 7.63 -
Sub-Station 13.94 67.54 - 45.04 36.44
Furniture & Fixtures - - - - -
Construction Stores (Net of Provision) 1.05 64.84 - - 65.89
Total 39.75 172.75 - 61.28 151.22

Ageing of Capital work in progress is as follows: ₹ in million

Particulars <1 Year 1-2 Years 2-3 Years >3 Years Total
As at 31 March 2024
Buildings
Township 15.89 24.13 24.76 - 64.78
Plant & Equipments (including associated civil works)
Sub-Station 0.57 2.32 7.17 - 10.06
Expenditure pending allocation
Construction Stores (Net of Provision) - - - - -
Total 16.46 26.45 31.93 - 74.84
As at 31 March 2023
Buildings
Township 24.13 19.76 5.00 - 48.89
Plant & Equipments (including associated civil works)
Sub-Station 28.69 7.72 0.03 - 36.44
Expenditure pending allocation
Construction Stores (Net of Provision) 64.84 1.05 - - 65.89
Total 117.66 28.53 5.03 - 151.22

NOTE 5/ GOODWILL ON ACQUISITION

₹ in million
Particulars As at As at
31 March 2024 31 March 2023
Goodwill due to acquisition of Projects - 5,896.50
Less: Impairment - 5,896.50
Total - -
Refer Note 49 for Disclosures pursuant to Ind AS 103 “Business Combinations”.

Annual Report 2023-24 133

 NOTE 6/OTHER INTANGIBLE ASSETS

134
₹ in million
Cost Accumulated Amortisation Net Book Value
As at Additions Adjustment As at As at Additions As at As at As at
Notes
Particulars
01 April during Disposal during 31 March 01 April during Disposal Impairment 31 March 31 March 31 March
2023 the year the year 2024 2023 the year 2024 2024 2023
Right of Way-Afforestation Expenses 1,802.66 - - - 1,802.66 423.52 50.64 - (24.82) 449.34 1,353.32 1,379.14
Rights to Additional Revenue 3,041.50 - - - 3,041.50 430.20 97.33 - (53.86) 473.67 2,567.83 2,611.30
Total 4,844.16 - - - 4,844.16 853.72 147.97 - (78.68) 923.01 3,921.15 3,990.44

₹ in million
Cost Accumulated Amortisation Net Book Value

Particulars As at Additions Adjustment As at As at Additions As at As at As at

POWERGRID Infrastructure Investment Trust

01 April during Disposal during 31 March 01 April during Disposal Impairment 31 March 31 March 31 March
2022 the year the year 2023 2022 the year 2023 2023 2022
Right of Way-Afforestation Expenses 1,802.66 - - - 1,802.66 179.23 50.65 - 193.64 423.52 1,379.14 1,623.43
Rights to Additional Revenue 3,041.50 - - - 3,041.50 0.27 97.24 - 332.69 430.20 2,611.30 3,041.23
Total 4,844.16 - - - 4,844.16 179.50 147.89 - 526.33 853.72 3,990.44 4,664.66
to the Consolidated Financial Statements for the year ended March 31, 2024
 CORPORATE OVERVIEW STATUTORY REPORTS FINANCIAL STATEMENTS

Notes
to the Consolidated Financial Statements for the year ended March 31, 2024

NOTE 7 / TRADE RECEIVABLES

₹ in million
Particulars As at As at
31 March 2024 31 March 2023
Trade receivables - Unsecured
Unsecured Considered good
Considered good 66.37 -
Total 66.37 -

Further Notes:
Refer Note 50 for disclosure as per Ind AS 115 ‘Revenue from Contracts with Customers’.

Electricity (late Payment Surcharge and Related Matters) Rules, 2022 as notified by Ministry of Power on 03 June 2022, provides
that at the option of the Distribution licensees, the outstanding dues including the Late Payment Surcharge (LPSC) upto the date
of 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 Group’s 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 ₹ 64.28 million
has been charged as Other Expense (refer Note 28) in FY 2023-24 and unwinding thereon amounting to ₹ 36.85 million accounted
for as Other Income in Current Year (Previous Year ₹ Nil) (refer Note 27)

Ageing of Trade Receivables is as follows:

₹ in million
Particulars Unbilled Not Due 0-6M 6M-1Y 1Y-2Y 2Y-3Y >3Y Total
As at 31 March 2024
Undisputed - 66.37 - - - - - 66.37
Considered – Good
Disputed - - - - - - - -
Undisputed - - - - - - - -
Significant increase in Credit Risk
Disputed - - - - - - - -
Undisputed - - - - - - - -
Credit Impaired Disputed - - - - - - - -
- 66.37 - - - - - 66.37
As at 31 March 2023
Undisputed - - - - - - - -
Considered – Good
Disputed - - - - - - - -
Undisputed - - - - - - - -
Significant increase in Credit Risk
Disputed - - - - - - - -
Undisputed - - - - - - - -
Credit Impaired
Disputed - - - - - - - -
- - - - - - - -

NOTE 8 /OTHER NON-CURRENT ASSETS

(Unsecured considered good unless otherwise stated)
₹ in million
Particulars As at As at
31 March 2024 31 March 2023
Advances for Other than Capital Expenditure
Security deposits - Unsecured 3.30 3.27
Balance with Customs Port Trust and other authorities 0.01 -
3.31 3.27
Others
Advance Tax and Tax Deducted at Source 2,218.26 2,240.08
Less: Tax Liabilities - (From Note 25) 1,796.92 1,618.83
421.34 621.25
TOTAL 424.65 624.52

Annual Report 2023-24 135

Notes
to the Consolidated Financial Statements for the year ended March 31, 2024

NOTE 9 /INVENTORIES
₹ in million
Particulars As at As at
31 March 2024 31 March 2023
(For mode of valuation refer Note 2.12)
Components, Spares & other spare parts 308.50 307.36
Loose tools 0.79 0.79
309.29 308.15
Less: Provision for Shortages/damages etc - -
TOTAL 309.29 308.15

NOTE 10 /TRADE RECEIVABLES

₹ in million
Particulars As at As at
31 March 2024 31 March 2023
Trade receivables
Unsecured Considered good 2,693.22 3,263.05
Considered doubtful(Credit Impaired) 18.96 18.96
2,712.18 3,282.01
Less: Provision for doubtful trade receivables 18.96 18.96
TOTAL 2,693.22 3,263.05

Further Notes:
Ageing of Trade Receivables is as follows: ₹ in million
Particulars Unbilled Not Due 0-6M 6M-1Y 1Y-2Y 2Y-3Y >3Y Total
As at 31 March 2024
Undisputed 1388.28 458.52 210.87 230.27 239.03 154.36 11.89 2693.22
Considered – Good
Disputed - - - - - - - -
Undisputed - - - - - - - -
Significant increase in Credit Risk
Disputed - - - - - - - -
Undisputed - - - - - 0.06 18.90 18.96
Credit Impaired
Disputed - - - - - - - -
1388.28 458.52 210.87 230.27 239.03 154.42 30.79 2,712.18
As at 31 March 2023
Considered – Good Undisputed 1624.95 - 813.86 181.04 628.49 13.91 0.80 3263.05
Disputed - - - - - - - -
Significant increase in Credit Risk Undisputed - - - - - - - -
Disputed - - - - - - - -
Credit Impaired Undisputed - - - - - 0.08 18.88 18.96
Disputed - - - - - - - -
1624.95 - 813.86 181.04 628.49 13.99 19.68 3,282.01

Trade receivables includes receivables from various DICs through CTUIL.

Refer Note 50 for disclosure as per Ind AS 115 “ Revenue from Contract With Customer”.

*Trade Receivable includes Unbilled receivables representing Transmission Charges for the month of March 2024 including arrear bills for previous quarters,
incentive and surcharge amounting to ₹ 1388.28 million (Previous year ₹ 1624.95 million) billed to beneficiaries in the subsequent month i.e. April 2024.”

136 POWERGRID Infrastructure Investment Trust

 CORPORATE OVERVIEW STATUTORY REPORTS FINANCIAL STATEMENTS

Notes
to the Consolidated Financial Statements for the year ended March 31, 2024

NOTE 11 /CASH AND CASH EQUIVALENTS

₹ in million
Particulars As at As at
31 March 2024 31 March 2023
Balance with banks-
In Current accounts 24.47 112.04
In term deposits (with maturity of 3 months or less) 4,144.14 3,473.78
Total 4,168.61 3,585.82

Further Notes:
Balance in current account does not earn interest. Surplus money is transferred into Term Deposits.

NOTE 12 /BANK BALANCES OTHER THAN CASH AND CASH EQUIVALENTS

₹ in million
Particulars As at As at
31 March 2024 31 March 2023
Balance with banks-
In designated Current accounts (For Distribution Payments)* 2.83 0.46
In Term Deposits having maturity over 3 months but upto 12 months 1,446.05 1,531.73
Total 1,448.88 1,532.19

Further Notes:
*Earmarked balance with banks pertains to unclaimed distribution to unitholders.

NOTE 13 /OTHER CURRENT FINANCIAL ASSETS

(Unsecured considered good unless otherwise stated)

₹ in million
Particulars As at As at
31 March 2024 31 March 2023
Interest accrued on Term Deposits 36.35 31.76
Others 1.77 0.25
Total 38.12 32.01

NOTE 14 /OTHER CURRENT ASSETS

(Unsecured considered good unless otherwise stated)

₹ in million
Particulars As at As at
31 March 2024 31 March 2023
Advances recoverable in kind or for value to be received
Balance with Customs Port Trust and other authorities 0.16 0.16
Service Tax Demand Pre-Deposit * 3.77 3.77
Others** 33.70 33.77
37.63 37.70
Prepaid Expenses 147.94 162.05
Total 185.57 199.75

*One of the SPVs of the Trust had received Order from Commisioner of CGST & Central Excise, Nagpur-II Commissionerate with respect to the Non-Payment
of Service Tax on Deposits of Rs. 335.01 million in Compensatory Afforestation Management and Planning Authority (CAMPA) Fund. The Order was against
the SPV and the Department raised demand to pay the due Service Tax of Rs. 50.25 million along with penalty and applicable interest. We have filed appeal
against the order in Customs Excise and Service tax Appellate Tribunal (CESTAT), Mumbai on 23 March 2023 and as a pre-requisite to the Appeal u/s 35F
of the Excise Act read with Section 83 of the Finance Act 1994, a pre-deposit of Rs.3.77 million (7.5 % of the total demand amount) was deposited with the
Department on 15 March 2023.
**Others include Entry tax deposit as per Orders of Appellate authority for stay, part of contingent liability Refer Note no. 45.

Annual Report 2023-24 137

Notes
to the Consolidated Financial Statements for the year ended March 31, 2024

NOTE 15 / UNIT CAPITAL

₹ in million
Particulars As at As at
31 March 2024 31 March 2023
Unit Capital
Issued, subscribed and paid up
909,999,200 units (Issue Price of ₹ 100 Each) 90,999.92 90,999.92
Total 90,999.92 90,999.92

Further Notes:
Terms/rights attached to Units
The Trust has only one class of units. Each Unit represents an undivided beneficial interest in the Trust. Each holder of unit is entitled to one vote per unit.
The Unitholders have the right to receive at least 90% of the Net Distributable Cash Flows of the Trust at least once in every six months in each financial
year in accordance with the InvIT Regulations.
A Unitholder has no equitable or proprietary interest in the projects of PGInvIT and is not entitled to any share in the transfer of the projects (or any part
thereof) or any interest in the projects (or any part thereof) of PGInvIT. A Unitholder’s right is limited to the right to require due administration of PGInvIT in
accordance with the provisions of the Trust Deed and the Investment Management Agreement.

Reconciliation of the number of units outstanding and the amount of unit capital:
Particulars No. of Units ₹ In million
As at 01 April 2023 909,999,200 90,999.92
Issued during the year - -
As at 31 March 2024 909,999,200 90,999.92
As at 01 April 2022 909,999,200 90,999.92
Issued during the year - -
As at 31 March 2023 909,999,200 90,999.92

During the FY 2021-22 the Trust has issued 909,999,200 units at the rate of ₹ 100.00 per unit. Out of which, Fresh issue comprised of 499,348,300 no. of units
and 410,650,900 no. of units allotted to the Sponsor. In compliance with InvIT Regulations, Sponsor retained 136,500,100 no. of units and made an Offer
for Sale for 274,150,800 no. of units.

Details of Sponsor holding:

Particulars No. of Units % holding
Power Grid Corporation of India Limited (Sponsor) 136,500,100 15.00%

Unitholders holding more than 5 (five) percent units in the Trust:

31 March 2024 31 March 2023
Name of Unitholder
Nos. in million % holding Nos. in million % holding
POWER GRID CORPORATION OF INDIA LIMITED (SPONSOR) 136.50 15.00% 136.50 15.00%
CPP INVESTMENT BOARD PRIVATE HOLDINGS 4 INC 91.84 10.09% 91.84 10.09%
NPS TRUST 64.65 7.10% 65.12 7.16%
CAPITAL INCOME BUILDER 46.44 5.10% 59.15 6.50%
HDFC TRUSTEE COMPANY LTD 39.57 4.35% 46.17 5.07%

138 POWERGRID Infrastructure Investment Trust

 CORPORATE OVERVIEW STATUTORY REPORTS FINANCIAL STATEMENTS

Notes
to the Consolidated Financial Statements for the year ended March 31, 2024

NOTE 16 /OTHER EQUITY

₹ in million
Particulars As at As at
31 March 2024 31 March 2023
Reserves and Surplus
Capital reserve 330.15 330.15
Retained Earnings (15,917.68) (14,265.18)
Total (15,587.53) (13,935.03)

Capital Reserve
₹ in million
Particulars As at As at
31 March 2024 31 March 2023
Balance at the beginning of the year 330.15 330.15
Addition during the year - -
Deduction during the year - -
Balance at the end of the year 330.15 330.15

Retained Earnings
₹ in million
Particulars As at As at
31 March 2024 31 March 2023
Balance at the beginning of the year (14,265.18) (1,393.81)
Add: Additions
Net Profit for the period 9,267.49 (1,951.38)
9,267.49 (1,951.38)
Less: Appropriations
Distribution during the year 10,919.99 10,919.99
10,919.99 10,919.99
Balance at the end of the year (15,917.68) (14,265.18)

Retained earnings are the profits earned till date, less any transfers to reserves and distributions paid to unitholders.

NOTE 17 / BORROWINGS
₹ in million
Particulars As at As at
31 March 2024 31 March 2023
Secured Indian Rupee Loan from Banks
Term loan from HDFC Bank Ltd. 5,698.29 5,727.07
Less: Current maturities 28.78 28.78
5,669.51 5,698.29
Less: Unamortised transaction cost 5.80 6.29
Total 5,663.71 5,692.00

Further Notes:
The term loan is secured by (i) first pari passu charge on entire current assets including loans and advances, any receivables accrued/realized from those
loans and advances extended by the Trust to its subsidiaries (direct or indirect) including loans to all project SPVs and future SPVs; (ii) First pari-passu
charge on Escrow account of the Trust and (iii) First and exclusive charge on Debt Service Reserve Account.
The term loan from bank was raised at the interest rate of 3 months T-Bill rate plus spread of 194 basis point and repayable in 64 quarterly installments of
varying amounts commencing from 30 June 2022. The spread has been revised to 127 basis points w.e.f. 9th July 2023.
There have been no breaches in the financial covenants with respect to borrowings.
There has been no default in repayment of loans or payment of interest thereon as at the end of the year.

Annual Report 2023-24 139

Notes
to the Consolidated Financial Statements for the year ended March 31, 2024

NOTE 18 / DEFERRED TAX LIABILITIES (NET)

₹ in million
Particulars As at As at
31 March 2024 31 March 2023
Deferred Tax Liability
Difference in book depreciation and tax depreciation 16,373.23 15,212.94
16,373.23 15,212.94
Deferred Tax Assets
Unused Tax Losses 2,644.26 2,553.19
MAT Credit Entitlement 1,609.51 1,504.62
Provisions 0.14 0.14
Fair Value Loss on Financial Asset 7.16 -
Others 0.01 0.01
4,261.08 4,057.96
Net Deferred tax liability 12,112.15 11,154.98

Movement in Deferred Tax Liability

₹ in million
Particulars Property, Plant & Equipment
As at 01 April 2022 16,855.75
Charged/ (Credited) to Profit or Loss (1,642.81)
As at 31 March 2023 15,212.94
As at 01 April 2023 15,212.94
Charged/ (Credited) to Profit or Loss 1,160.29
As at 31 March 2024 16,373.23

Movement in Deferred Tax asset

₹ in million
Particulars Unused Provisions MAT Credit Fair Value Loss on Others Total
Tax Losses Financial Asset
As at 01 April 2022 2,202.96 0.14 1,354.71 - 0.01 3,557.82
Charged/ (Credited) to Profit or Loss 350.23 - 149.91 - - 500.14
As at 31 March 2023 2,553.19 0.14 1,504.62 - 0.01 4,057.96
As at 01 April 2023 2,553.19 0.14 1,504.62 - 0.01 4,057.96
Charged/ (Credited) to Profit or Loss 91.07 - 104.89 7.16 - 203.12
As at 31 March 2024 2,644.26 0.14 1,609.51 7.16 0.01 4,261.08

Amount taken to Statement of Profit and Loss

₹ in million
Particulars As at As at
31 March 2024 31 March 2023
Increase/(Decrease) in Deferred Tax Liabilities 1,160.29 (1,642.81)
(Increase)/Decrease in Deferred Tax Assets (203.12) (500.14)
Net Amount taken to Statement of Profit and Loss 957.17 (2,142.95)

140 POWERGRID Infrastructure Investment Trust

 CORPORATE OVERVIEW STATUTORY REPORTS FINANCIAL STATEMENTS

Notes
to the Consolidated Financial Statements for the year ended March 31, 2024

NOTE 19 /OTHER NON CURRENT LIABILITIES

₹ in million
Particulars As at As at
31 March 2024 31 March 2023
Deposit/Retention money from contractors and others 0.02 -
Total 0.02 -

NOTE 20 / BORROWINGS
₹ in million
Particulars As at As at
31 March 2024 31 March 2023
Secured Indian Rupee Loan from Banks
Current maturities of Term loan from HDFC Bank Ltd. 28.78 28.78
Total 28.78 28.78

Refer Note no.17 for Borrowings.

NOTE 21/TRADE PAYABLES

₹ in million
Particulars As at As at
31 March 2024 31 March 2023
For goods and services
Total outstanding dues of Micro enterprises and small enterprises - -
Total outstanding dues of creditors other than Micro enterprises and small enterprises
Related Party 11.14 10.77
Others 4.26 6.60
Total 15.40 17.37

Disclosure with regard to Micro and Small enterprises as required under “The Micro, Small and Medium Enterprises Development Act, 2006” is
given in Note No 38.

Further Note :
₹ in million
1. Ageing of Trade Payables is as follows: Not Billed <1Y 1Y-2Y 2Y-3Y >3Y Total
As at 31 March 2024
MSME
Disputed - - - - - -
Undisputed - - - - - -
Total
Others
Disputed - - - - - -
Undisputed 15.40 - - - - 15.40
Total 15.40 - - - - 15.40
As at 31 March 2023
MSME
Disputed - - - - - -
Undisputed - - - - - -
Total
Others
Disputed - - - - - -
Undisputed 17.37 - - - - 17.37
Total 17.37 - - - - 17.37

Annual Report 2023-24 141

Notes
to the Consolidated Financial Statements for the year ended March 31, 2024

NOTE 22/OTHER CURRENT FINANCIAL LIABILITIES

₹ in million
Particulars As at As at
31 March 2024 31 March 2023
Unclaimed Distribution 2.83 0.46
Others
Dues for capital expenditure 165.88 224.55
Deposits/Retention money from contractors and others. 37.54 15.12
Related parties 6.45 0.89
Others 1.95 2.23
211.82 242.79
Total 214.65 243.25

NOTE 23/OTHER CURRENT LIABILITIES

₹ in million
Particulars As at As at
31 March 2024 31 March 2023
Statutory dues 17.71 17.31
Total 17.71 17.31

NOTE 24/ PROVISIONS

₹ in million
Particulars As at As at
31 March 2024 31 March 2023
Provisions
As per last balance sheet 0.05 1.53
Additions during the year 0.38 0.05
Adjustments during the year (0.43) (1.53)
Closing Balance 0.00 0.05

NOTE 25/ CURRENT TAX LIABILITIES (NET)

₹ in million
Particulars As at As at
31 March 2024 31 March 2023
Taxation (Including interest on tax)
Opening Balance 1,618.83 1,431.22
Addition due to acquisitions of Projects - -
Additions during the year 178.09 210.15
Adjustments during the year - (22.54)
Total 1,796.92 1,618.83
Net off against Advance tax and TDS (Note 8) (1,796.92) (1,618.83)
Closing Balance - -

142 POWERGRID Infrastructure Investment Trust

 CORPORATE OVERVIEW STATUTORY REPORTS FINANCIAL STATEMENTS

Notes
to the Consolidated Financial Statements for the year ended March 31, 2024

NOTE 26/REVENUE FROM OPERATIONS

₹ in million
Particulars For the period ended For the period ended
31 March 2024 31 March 2023
Sales of services
Transmission Business
Sales of services
Transmission Charges 12,653.38 12,857.85
Total 12,653.38 12,857.85

Refer Note 50 for disclosure as per Ind AS 115 “Revenue from Contracts with Customers’’

NOTE 27 /OTHER INCOME

₹ in million
Particulars For the period ended For the period ended
31 March 2024 31 March 2023
Interest
Indian Banks 261.91 164.74
Unwinding of Discount on Financial Assets 36.85 -
Others 55.73 2.39
354.49 167.13
Others
Surcharge 1.53 76.54
Liquidated damage recovery 0.47 -
Miscellaneous income 17.35 51.39
19.35 127.93
Total 373.84 295.06

NOTE 28 / OTHER EXPENSES

₹ in million
Particulars For the period ended For the period ended
31 March 2024 31 March 2023
Power Charges 14.48 13.44
System and Market Operation Charges 24.98 17.12
CERC license fee & Other charges 13.50 14.22
Director Sitting Fee 3.92 2.59
Security Expenses 17.87 17.17
Legal Expenses 1.69 1.94
Professional Charges(Including TA/DA) 2.61 3.29
RTA Fee 0.52 0.52
Rating Fee 1.76 2.06
Internal Audit and Physical verification Fees 0.17 0.09
Cost Audit Fees 0.15 0.14
Inland Travelling Expenses 0.28 0.30
Annual Meeting Expenses 0.43 0.38
Listing Fee 4.72 4.72
Miscellaneous Expenses 1.76 2.87
Rates and Taxes 1.02 0.56
FV loss on Financial Asset 64.28 -
CDSL Fee 0.18 0.09
Custodial Fee 0.58 0.46
Expenditure on Corporate Social Responsibility (CSR) 101.30 114.99
Total 256.20 196.95

Annual Report 2023-24 143

Notes
to the Consolidated Financial Statements for the year ended March 31, 2024

NOTE 29 /EMPLOYEE BENEFITS EXPENSE

₹ in million
Particulars For the period ended For the period ended
31 March 2024 31 March 2023
Salaries, wages, allowances & benefits 9.85 11.40
Total 9.85 11.40

NOTE 30/FINANCE COSTS

₹ in million
Particulars For the period ended For the period ended
31 March 2024 31 March 2023
Interest and finance charges on financial liabilities at amortised cost
Interest on Secured Indian Rupee Term Loan from Banks 468.22 413.83
Other Finance charges
Amortization of Upfront fee 0.49 0.50
Total 468.71 414.33

NOTE 31 /DEPRECIATION AND AMORTIZATION EXPENSE

₹ in million
Particulars For the period ended For the period ended
31 March 2024 31 March 2023
Depreciation of Property, Plant and Equipment 3,006.15 3,000.26
Amortisation of Intangible Assets 147.97 147.89
Total 3,154.12 3,148.15

32. EARNINGS PER UNIT (EPU)

Basic EPU amounts are calculated by dividing the profit for the year attributable to unitholders by the weighted average
number of units outstanding during the year.

Diluted EPU amounts are calculated by dividing the profit attributable to unitholders by the weighted average number of
units outstanding during the period plus the weighted average number of units that would be issued on conversion of all the
dilutive potential units into unit capital.

The following reflects the profit and unit data used in the basic and diluted EPU computation:

Particulars For the period ended For the period ended

31 March 2024 31 March 2023
Profit after tax for calculating basic and diluted EPU (₹ in million) 9,267.49 (1,951.38)
Weighted average number of units in calculating basic and diluted EPU 910.00 910.00
(No. in million)
Earnings Per Unit
Basic (₹ /unit) 10.18 (2.14)
Diluted (₹ /unit) 10.18 (2.14)

33. SIGNIFICANT ACCOUNTING JUDGEMENTS, ESTIMATES AND ASSUMPTIONS

The preparation of the Group’s financial statements requires management to make judgments, estimates and assumptions that
affect the reported amounts of revenue, expenses, assets and liabilities and the accompanying disclosures. Uncertainty about
these assumptions and estimates could result in outcomes that require a material adjustment to the carrying amount of assets
or liabilities affected in future periods.

144 POWERGRID Infrastructure Investment Trust

 CORPORATE OVERVIEW STATUTORY REPORTS FINANCIAL STATEMENTS

Notes
to the Consolidated Financial Statements for the year ended March 31, 2024

Judgement techniques and inputs for valuation. The management

In the process of applying the Group’s accounting policies, reports the valuation report and findings to the Board
management has made the following judgements, which of the Investment Manager half yearly to explain the
have the most significant effect on the amounts recognized cause of fluctuations in the fair value of the projects.
in the financial statements. The inputs for the valuation are taken from observable
markets where possible, but where this is not feasible,
a) Classification of Unitholders’ Funds a degree of judgement is required in establishing
fair values. Judgements include considerations of
Under the provisions of the InvIT Regulations, Group
inputs such as WACC, Tax rates, Inflation rates, etc.
is required to distribute to unitholders not less than
Changes in assumptions about these factors could
ninety percent of the net distributable cash flows of
affect the fair value.
Group for each financial year. Accordingly, a portion
of the unitholders’ funds contains a contractual
b) Useful life of property, plant and equipment
obligation of the Group to pay to its unitholders
cash distributions. The unitholders’ funds could The estimated useful life of property, plant and
therefore have been classified as compound financial equipment is based on a number of factors including
instrument which contain both equity and liability the effects of obsolescence, demand, competition
components in accordance with Ind AS 32 – ‘Financial and other economic factors (such as the stability of
Instruments: Presentation’. However, in accordance the industry and known technological advances) and
with SEBI Master Circular No. SEBI/HO/DDHS-PoD- the level of maintenance expenditures required to
2/P/CIR/2023/115 dated 06 July 2023 issued under obtain the expected future cash flows from the asset.
the InvIT Regulations, the unitholders’ funds have
been classified as equity in order to comply with the The group reviews at the end of each reporting date
mandatory requirements of Section H of Chapter 3 of the useful life of property, plant and equipment and
the SEBI Master Circular dated 06 July 2023 dealing are adjusted prospectively, if appropriate
with the minimum disclosures for key financial
statements. In line with the above, the distribution c) Provisions and contingencies
payable to unitholders is recognized as liability when The assessments undertaken in recognizing provisions
the same is approved by the Investment Manager. and contingencies have been made in accordance
with Ind AS 37 “Provisions, Contingent Liabilities
Estimates and Assumptions and Contingent Assets”. The evaluation of the
The key assumptions concerning the future and other key likelihood of the contingent events has required best
sources of estimation uncertainty at the reporting date, judgment by management regarding the probability
that have a significant risk of causing a material adjustment of exposure to potential loss. Should circumstances
to the carrying amounts of assets and liabilities or fair value change following unforeseeable developments, this
disclosures within the next financial year, are described likelihood could alter.
below. The Group based its assumptions and estimates
on parameters available when the financial statements d) Income Taxes:
were prepared. Existing circumstances and assumptions Significant estimates are involved in determining
about future developments, however, may change due to the provisions for current and deferred tax, including
market changes or circumstances arising that are beyond amount expected to be paid/recovered for uncertain
the control of the Group. Such changes are reflected in the tax positions.
assumptions when they occur.
34. PARTY BALANCES AND CONFIRMATIONS
a) Fair Valuation and disclosure a) Some balances of Trade Receivables and recoverable
SEBI Circulars issued under the InvIT Regulations require shown under Assets and Trade and Other Payables
disclosures relating to net assets at fair value and total shown under Liabilities include balances subject
returns at fair value. In estimating the fair value, the to confirmation/ reconciliation and consequential
Group engages independent qualified external valuer, adjustments if any. However, reconciliations are
as mandated under InvIT Regulations, to perform carried out on ongoing basis. The management does
the valuation. The management works closely with not expect any material adjustment in the books of
the valuers to establish the appropriate valuation accounts as a result of the reconciliation.

Annual Report 2023-24 145

Notes
to the Consolidated Financial Statements for the year ended March 31, 2024

b) In the opinion of the management, the value of any of 36. DISCLOSURE AS PER IND AS 116 – “LEASES”
the assets other than Property, Plant and Equipment The group does not have any lease arrangements either
on realization in the ordinary course of business will as a lessor or lessee therefore Ind AS 116 “leases” does not
not be less than the value at which they are stated in apply to the Trust”
the Balance Sheet.
37. CORPORATE SOCIAL RESPONSIBILITY (CSR)
EXPENSES
35. Central Transmission Utility of India Limited (CTUIL) was
notified as CTU w.e.f. 01 April 2021 by GOI vide Notification As per Section 135 of the Companies Act, 2013 along with
Companies (Corporate Social Responsibility Policy) Rules,
No. CG-DL-E-09032021-225743 and is entrusted with the
2014 and Companies (CSR Policy) Amendment Rules, 2021,
job of centralized Billing, Collection and Disbursement
the Subsidiaries of the Trust are required to spend, in every
(BCD) of transmission charges on behalf of all the IST financial year, at least two percent of the average net profits
licensees. Accordingly, CTUIL is raising bills for transmission of the Subsidiaries made during the three immediately
charges to DICs on behalf of IST licensees. The debtors preceding financial years. Accordingly, subsidiaries of the
and their recovery are accounted based on the list of DICs Trust have spent ₹ 101.30 million during the year (₹ 114.99
given by CTUIL. million during the previous year).

38. DETAILS OF DUES TO MICRO, SMALL AND MEDIUM ENTERPRISES AS DEFINED UNDER MSMED ACT, 2006
₹ in million
Sr. Particulars As at As at
No 31 March 2024 31 March 2023
1 Principal amount and interest due there on remaining unpaid to any supplier
as at end of each accounting year:
Principal - -
Interest - -
2 The amount of Interest paid by the buyer in terms of section 16 of the - -
MSMED Act, 2006 along with the amount of the payment made to the
supplier beyond the appointed day during each accounting year
3 The amount of interest due and payable for the period of delay in making - -
payment (which have been paid but beyond the appointed day during the
year) but without adding the interest specified under MSMED Act, 2006
4 The amount of interest accrued and remaining unpaid at the end of each - -
accounting year
5 The amount of further interest remaining due and payable even in the - -
succeeding years, until such date when the interest dues as above are
actually paid to the small enterprise for the purpose of disallowance as a
deductible expenditure under section 23 of the MSMED Act 2006

39. FAIR VALUE MEASUREMENTS

The management has assessed that the financial assets and financial liabilities as at year end are reasonable approximations
of their fair values.

The Trust is required to present the statement of total assets at fair value and statement of total returns at fair value as per SEBI
Master Circular No. SEBI/HO/DDHS-PoD-2/P/CIR/2023/115 dated 06 July 2023 as a part of these financial statements- Refer
Statement of Net Assets at Fair Value and Statement of Total Returns at Fair Value.

The inputs to the valuation models for computation of fair value of assets for the above mentioned statements are taken from
observable markets where possible, but where this is not feasible, a degree of judgement is required in establishing fair values.
Judgements include considerations of inputs such as WACC, Tax rates, Inflation rates, etc.

The significant unobservable inputs used in the fair value measurement required for disclosures ategorized within Level
3 of the fair value hierarchy together with a quantitative sensitivity analysis as at 31 March 2024 and 31 March 2023 are as
shown below:

146 POWERGRID Infrastructure Investment Trust

 CORPORATE OVERVIEW STATUTORY REPORTS FINANCIAL STATEMENTS

Notes
to the Consolidated Financial Statements for the year ended March 31, 2024

₹ In million
Increase/(Decrease)
Input for 31 Sensitivity of input
Significant unobservable input in fair value
March 2024 to the fair value
31 March 2024
9.00% (1,553.11)
WACC 8.79%
8.50% 2,201.61

₹ In million
Increase/(Decrease)
Input for 31 Sensitivity of input
Significant unobservable input in fair value
March 2023 to the fair value
31 March 2023
9.50% (3,440.89)
WACC 9.01%
8.50% 3,894.31

Quantitative disclosures fair value measurement hierarchy for assets:

₹ in million
Particulars Date of valuation Level 1 Level 2 Level 3 Total
Assets for which fair values are disclosed:
Property Plant and Equipment, Intangible Assets 31 March 2024 - - 90,416.82 90,416.82
and Goodwill*
31 March 2023 - - 90,735.95 90,735.95

*Statement of Net assets at fair value and total return at fair value require disclosure regarding fair value of assets (liabilities are considered at book
value). Since the fair value of assets other than the Property Plant and Equipment, Intangible Asset and Goodwill, approximate their book value
hence these have been disclosed above.
The Value disclosed above represents 100% value of the Property Plant and Equipment, Intangible Assets and Goodwill without adjustment for
Non-Controlling Interest.

There have been no transfers among Level 1, Level 2 and Level 3.

40. RELATED PARTY DISCLOSURES

(A) Disclosure as per Ind AS 24 – “Related Party Disclosures”
(a) Entity with significant influence over trust
Place of Proportion Proportion
business/ of Ownership of Ownership
Name of entity Relationship with Trust
country of Interest as at Interest as at
incorporation 31 March 2024 31 March 2023
Power Grid Corporation of India Sponsor and Project 15% 15%
India Limited Manager / Entity with
significant influence

(B) Disclosure as per Regulation 2(1)(zv) of the InvIT Regulations

(a) Parties to Trust
Place of Proportion Proportion
business/ of Ownership of Ownership
Name of entity Relationship with Trust
country of Interest as at Interest as at
incorporation 31 March 2024 31 March 2023
Power Grid Corporation of India Sponsor and 15% 15%
India Limited Project Manager
POWERGRID Unchahar India Investment Manager NA NA
Transmission Limited
IDBI Trusteeship Services Limited India Trustee NA NA

Annual Report 2023-24 147

Notes
to the Consolidated Financial Statements for the year ended March 31, 2024

(b) Promoters of the parties to Trust specified in (a) above

Name of entity Promoter
Power Grid Corporation of India Limited Government of India
POWERGRID Unchahar Transmission Limited Power Grid Corporation of India Limited
IDBI Trusteeship Services Limited IDBI Bank Limited
Life Insurance Corporation of India
General Insurance Corporation of India

(c) Directors of the parties to Trust specified in (a) above

(i) Directors of Power Grid Corporation of India Limited:
Shri Ravindra Kumar Tyagi (Assumed charge of Chairman & Managing Director, POWERGRID w.e.f. 01.01.2024)
Shri Abhay Choudhary
Shri G. Ravisankar
Dr. Yatindra Dwivedi (Appointed as Director w.e.f. 31.08.2023)
Dr. Saibaba Darbamulla (Appointed as Director w.e.f. 18.05.2023)
Shri Chetan Bansilal Kankariya
Shri Ram Naresh Tiwari
Shri K. Sreekant (Ceased to be Director w.e.f. 31.12.2023)
Shri Vinod Kumar Singh (Ceased to be Director w.e.f. 31.05.2023)
Shri Korachara Nagappa Onkarappa (Ceased to be Director w.e.f. 13.12.2023)
Shri Mohammad Afzal (Ceased to be Director w.e.f. 17.05.2023)
Shri Dilip Nigam (Ceased to be Director w.e.f. 17.04.2024)
(ii) Directors of POWERGRID Unchahar Transmission Limited
Shri Abhay Choudhary
Shri Purshottam Agarwal (Appointed as Director w.e.f. 01.04.2023)
Shri Ram Naresh Tiwari
Shri Korachara Nagappa Onkarappa (Ceased to be Director w.e.f. 13.12.2023)
(iii) Key Managerial Personnel of POWERGRID Unchahar Transmission Limited
Shri A Sensarma (Appointed as CEO w.e.f. 01.02.2024)
Shri Sanjay Sharma (CEO) (Ceased as CEO w.e.f. 31.01.2024)
Shri Amit Garg (CFO)
Smt. Anjana Luthra (Company Secretary)
(iv) Directors of IDBI Trusteeship services Limited
Shri Jayakumar S. Pillai (Appointed as Director w.e.f. 18.07.2023)
Shri Pradeep Kumar Jain
Smt Jayashree Ranade
Shri Pradeep Kumar Malhotra
Ms. Baljinder Kaur Mandal
Shri J. Samuel Joseph (Ceased to be Director w.e.f. 18.04.2023)

148 POWERGRID Infrastructure Investment Trust

 CORPORATE OVERVIEW STATUTORY REPORTS FINANCIAL STATEMENTS

Notes
to the Consolidated Financial Statements for the year ended March 31, 2024

(C) The outstanding balances of related parties are as follows:

₹ in million
Particulars As at As at
31 March 2024 31 March 2023
Amounts Payable
Power Grid Corporation of India Limited (Sponsor and Project Manager)
Incentive on O&M Consultancy fees and PIMA fees thereon 11.15 10.77
Other Payable – Construction consultancy charges 2.68 0.89
CAMPA Appeal Pre-deposit 3.77 -
Total 17.60 11.66
Amount Receivable
Power Grid Corporation of India Limited (Sponsor and Project Manager)
CAMPA Appeal Filing with CESTAT Fees paid by the Group but to be - 0.01
indemnified by Power Grid Corporation of India Limited as per the Share
Purchase Agreement entered with it

(D) The transactions with related parties during the period are as follows:
₹ in million
Particulars For the year ended For the year ended
31 March 2024 31 March 2023
Power Grid Corporation of India Limited (Sponsor and Project Manager)
Distribution paid 1,638.00 1,638.00
Dividend paid 402.30 588.20
Payment of Operation & Maintenance Charges (Including Taxes) 310.65 299.54
Payment of Project Implementation & Management Charges 46.60 44.94
(Including Taxes)
Consultancy Fees 16.09 2.31
Sale of 1kM (1000Mtr), 11kV, 3 Core 240 sqmm XLPE power cable 1.55 -
Legal Expenses Recovered from Power Grid Corporation of - 1.06
India Limited
Receipt of CAMPA appeal pre deposit made by the Group 3.77 -
POWERGRID Unchahar Transmission Limited (Investment Manager)
Payment of Investment Manager fee (Including Taxes) 99.57 93.08
IDBI Trusteeship Services Limited (Trustee)
Payment of Trustee fee (Including Taxes) 0.35 0.35

(E) Remuneration to Key Managerial Personnel: -

₹ in million
Particulars For the year ended For the year ended
31 March 2024 31 March 2023
Short Term Employee Benefits 9.85 11.40

Annual Report 2023-24 149

Notes
to the Consolidated Financial Statements for the year ended March 31, 2024

41. INVESTMENT MANAGER FEES availability of transmission line over the period of the TSA.
Pursuant to the Investment Management Agreement The TSA contains provision for disincentives and penalties.
dated 18 December 2020, Investment Manager fees is
aggregate of Other commitments related to services to be rendered /
procurements made in the normal course of business are
a. Rs. 72,500,000 per annum, in relation to the not disclosed to avoid excessive details.
initial SPVs; and
45. CONTINGENT LIABILITY
b. 0.10% of the aggregate Gross Block of all Holding
a) Claims against the Group not acknowledged as debts in
Companies and SPVs acquired by the InvIT after the
respect of Disputed Income Tax/Sales Tax/Excise/Municipal
execution of this agreement.
Tax/Entry Tax Matters
Further, the management fee set out above shall be subject
to escalation on an annual basis at the rate of 6.75% of i) 
Disputed Entry Tax Matters amounting to
the management fee for the previous year. Any applicable ₹96.28 million (For the Year FY 2022-23 ₹ 96.28
taxes, cess or charges, as the case may be, shall be in million) contested before the Appellant Deputy
addition to the management fee. Commissioner.

During the period, Trust has not acquired any assets other In this regard, the ADC vide order dt.26 July 2018 in
than initial SPVs. ADC Order No.777 had granted a conditional stay
upon the Group depositing 35% of the disputed
42. PROJECT MANAGER FEES tax, i.e., ₹ 33.70 million. In hearing of the case, ADC
Pursuant to the Project Implementation and Management (CT) has dismissed the appeal vide order dated
Agreement dated January 23, 2021, Project Manager is 17 June 2020. The Group filed writ petition with
entitled to fees @ 15% of the aggregate annual fees payable Hon’ble High Court of the state of Telengana on 17
under the O&M Agreements. Any applicable taxes, cess or August 2020 and Hon’ble High Court grant stay for
charges, as the case may be, shall be in addition to the fee. all further proceedings against the ADC order dated
17 June 2020. The Group is confident that this matter
43. SEGMENT REPORTING will be disposed off in favour of the Group.
The Group’s activities comprise of transmission of electricity
ii) Intimation from Income Tax Department Under
in India. Based on the guiding principles given in Ind AS -
Section 143(1)(a) received with demand of ₹ 3.11
108 “Operating Segments”, this activity falls within a single
million (For the Assessment Year 2019-20) by
operating segment and accordingly the disclosures of Ind
disallowing part TDS claimed. Appeal has been made
AS -108 have not separately been given.
to IT Department against the same and is pending
with CIT(A).
44. CAPITAL AND OTHER COMMITMENTS
₹ in million iii) Order received from Income Tax Department Under
Particulars As at As at Section 154 read with Section 143(1a) with demand
31 March 2024 31 March 2023 of Rs. 7.99 million (For the Assessment Year 2023-24)
Estimated amount of 102.83 280.51 considering the return of income to be defective.
contracts remaining Appeal has been made to IT Department against the
to be executed on same and is pending with CIT(A).
capital account and
not provided for (net iv) In respect of claims made by various State/Central
of advances) Government Departments/Authorities from 2016 to
2018 towards building permission fees, penalty on
The Group has entered into separate Share Purchase diversion of agriculture land to non-agriculture use,
agreements with POWERGRID for acquisition of balance Nala tax, water royalty etc. and by others, contingent
26% equity shareholding in each of the subsidiary i.e. liability of ₹ 3.56 million (Previous Year ₹ 5.89 million)
PKATL, PPTL, PWTL and PJTL. has been estimated. Same has been pending with
concerned Tehsildar.
The Group has entered into transmission services
agreement (TSA) with long term transmission customers v) We have received Order from Commissioner of
pursuant to which the Group has to ensure minimum CGST & Central Excise, Nagpur-II Commissionerate

150 POWERGRID Infrastructure Investment Trust

 CORPORATE OVERVIEW STATUTORY REPORTS FINANCIAL STATEMENTS

Notes
to the Consolidated Financial Statements for the year ended March 31, 2024

with respect to the Non-Payment of Service Tax This note presents information regarding the Group’s
on Deposits of Rs. 335.01 million in Compensatory exposure, objectives and processes for measuring and
Afforestation Management and Planning Authority managing these risks.
(CAMPA) Fund. The Order was against the Group
and Department raised demand to pay the due The management of financial risks by the Group is
Service Tax of Rs. 50.25 million along with interest summarized below: -
at appropriate rate u/s 75 of the Finance Act, 1994
(‘’Act’’) as amended from time to time, penalty of Rs. (A) Credit Risk
50.25 million and Rs. 0.01 million u/s 78 and 77 of the Credit risk is the risk that counterparty will not meet its
Act respectively. Appeal has been made and pending obligations under a financial instrument or customer
with CESTAT Mumbai. contract, leading to a financial loss. The group is exposed
to credit risk from its operating activities on account of
vi) In respect of land acquired for the projects, the land trade receivables, deposits with banks and other financial
losers have claimed higher compensation before instruments.
various authorities/courts which are yet to be settled.
In such cases, contingent liability of ₹ 4.01 million A default on a financial asset is when the counterparty fails
(Previous Year 0.01 million) has been estimated. to make contractual payments within 3 years of when they
fall due. This definition of default is determined considering
b) Other contingent liabilities amount to ₹ 198.81 million the business environment in which the Group operates and
(Previous Year ₹ 67.34 million) related to arbitration other macro-economic factors.
cases/RoW cases & land compensation cases have been
estimated. Assets are written-off when there is no reasonable
expectation of recovery, such as a debtor declaring
As per the separate Share Purchase Agreements between bankruptcy or failing to engage in a repayment plan with
POWERGRID (the ’Seller’) and PGInvIT, acting through its the Group. Where loans or receivables have been written
Trustee and Investment Manager (the ‘Buyer’), POWERGRID off, the Group continues to engage in enforcement activity
has undertaken to indemnify, defend and hold harmless to attempt to recover the receivable due. Where such
the Trust and the Investment Manager from and against recoveries are made, these are recognized in the statement
losses which relate to or arise from (i) actual or alleged of profit and loss.
breach of or inaccuracies or misrepresentations in any of
the Seller Warranties or breach of any covenant of the Seller (i) Trade Receivables
herein; or (ii) any pending or threatened claims against the The Group primarily provides transmission facilities
Company from the Period prior to and including the First to inter-state transmission service customers
Closing Date i.e. May 13, 2021. (DICs) comprising mainly state utilities owned by
State Governments and the main revenue is from
46. FINANCIAL RISK MANAGEMENT transmission charges. CERC (Sharing of Inter-State
The Group’s principal financial liabilities comprises of Transmission Charges and Losses) Regulations, 2020
borrowings denominated in Indian rupees, trade payables (“CERC Sharing Regulations”) allow payment against
and other payables. The main purpose of these financial monthly bills towards transmission charges within
liabilities is to finance the Group’s investments and due date i.e., 45 days from the date of presentation
operations. of the bill and levy of surcharge on delayed payment
beyond 45 days. However, in order to improve the
The Group’s principal financial assets include trade cash flows, a graded rebate is provided for payments
receivables, cash and cash equivalents and other financial made within due date. If a DIC fails to pay any bill or
assets that are generated from its operations. part thereof by the Due Date, the Central Transmission
Utility (CTU) may encash the Letter of Credit provided
The Group’s activities expose it to the following financial by the DIC and utilise the same towards the amount
risks, namely, of the bill or part thereof that is overdue plus Late
Payment Surcharge, if applicable.
(A) Credit risk,
Trade receivables consist of receivables relating to
(B) Liquidity risk, transmission services of ₹ 2,778.55 million as on 31
March 2024 (₹ 3,282.01 million as on 31 March 2023).
(C) Market risk.

Annual Report 2023-24 151

Notes
to the Consolidated Financial Statements for the year ended March 31, 2024

(ii) Other Financial Assets (excluding trade receivables) (iv) Provision for expected credit losses
a) Cash and cash equivalents (a) Financial assets for which loss allowance is
The Group held cash and cash equivalents of ₹ measured using 12 month expected credit
4,168.61 million as on 31 March 2024 (₹ 3,585.82 losses
million as on 31 March 2023). The cash and cash The Group has assets where the counter- parties
equivalents are held with reputed commercial have sufficient capacity to meet the obligations
banks and do not have any significant credit risk. and where the risk of default is very low. At initial
recognition, financial assets (excluding trade
b) 
Bank Balance Other than Cash and cash receivables) are considered as having negligible
equivalents credit risk and the risk has not increased from
The Group held Bank Balance Other than Cash initial recognition. Therefore, no loss allowance
and Cash equivalents of ₹ 1,448.88 million as for impairment has been recognized.
on 31 March 2024 (₹ 1,532.19 million as on 31
March 2023). The Bank Balance other than Cash (b) Financial assets for which loss allowance is
and cash equivalents are term deposits held measured using life time expected credit
with public sector banks and high rated private losses
sector banks and do not have any significant The Group has customers most of whom are
credit risk. state government utilities with capacity to meet
the obligations and therefore the risk of default
c) Other Current Financial Assets
is negligible. Further, management believes that
The Group held other current financial assets the unimpaired amounts that are 30 days past
as on 31 March 2024 of ₹ 38.12 million (₹ 32.01 due date are still collectible in full, based on
million as on 31 March 2023). The other current the payment security mechanism in place and
financial assets do not have any significant historical payment behavior.
credit risk.
Considering the above factors and the prevalent
(iii) Exposure to credit risk regulations, the trade receivables continue to
₹ in million have a negligible credit risk on initial recognition
Particulars As at As at and thereafter on each reporting date.
31 March 31 March
2024 2023 (B) Liquidity Risk
Financial assets for Liquidity risk management implies maintaining sufficient
which loss allowance cash and marketable securities for meeting its present and
is measured using 12 future obligations associated with financial liabilities that
months Expected Credit are required to be settled by delivering cash or another
Losses (ECL) financial asset. The Group’s objective is to, at all times,
Cash and cash equivalents 4,168.61 3,585.82 maintain optimum levels of liquidity to meet its cash and
Bank Balance other than 1,448.88 1,532.19 collateral obligations. The Group requires funds for short
cash & cash equivalents term operational needs as well as for servicing of financial
Other current 38.12 32.01 obligation under term loan. The Group closely monitors its
financial assets liquidity position and deploys a robust cash management
Total 5,655.61 5,150.02 system. It aims to minimize these risks by generating
Financial assets for sufficient cash flows from its current operations.
which loss allowance
is measured using Life Maturities of financial liabilities
time Expected Credit The table below analyses the Trust’s financial liabilities into
Losses (ECL) relevant maturity groupings based on their contractual
Trade receivables 2,778.55 3,282.01 maturities for all non-derivative financial liabilities.

152 POWERGRID Infrastructure Investment Trust

 CORPORATE OVERVIEW STATUTORY REPORTS FINANCIAL STATEMENTS

Notes
to the Consolidated Financial Statements for the year ended March 31, 2024

The amount disclosed in the table is the contractual undiscounted cash flows.

₹ in million
Contractual maturities of financial Within a year Between 1-5 years Beyond 5 years Total
liabilities
As at 31 March 2024
Borrowings (including interest outflows) 489.04 2,086.96 9,107.83 11,683.83
Trade Payables 15.40 - - 15.40
Other financial liabilities 214.65 - - 214.65
Total 719.09 2,086.96 9,107.83 11,913.88
As at 31 March 2023
Borrowings (including interest outflows) 507.45 2,080.23 9,289.62 11,877.30
Trade Payables 17.37 - - 17.37
Other financial liabilities 243.25 - - 243.25
Total 768.07 2,080.23 9,289.62 12,135.78

(C) MARKET RISK

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in
market prices. Market risk comprises three types of risk:
(i) Currency risk
(ii) Interest rate risk
(iii) Equity price risk

(i) Currency risk

As on Reporting date the Group does not have any exposure to currency risk in respect of foreign currency denominated
loans and borrowings and procurement of goods and services.

(ii) Interest rate risk

Interest rate risk is the risk that fair value or future cash flows of a financial instrument will fluctuate because of changes in
market interest rates. The Group’s exposure to the risk of changes in market interest rates relates primarily to the Group’s
long-term debt obligations with floating interest rates.

The Group ‘s exposure to interest rate risk due to variable interest rate borrowings is as follows:
₹ in million
Particulars Amount Impact on profit / loss before tax for the year due to
Increase or decrease in interest rate by 50 basis points
As at 31 March 2024
5,698.29 28.66
Term Loan from Bank
As at 31 March 2023
5,727.07 28.73
Term Loan from Bank

(iii) Equity price risk

The Group does not have any investments in equity shares which may be subject to equity price risk.

Annual Report 2023-24 153

Notes
to the Consolidated Financial Statements for the year ended March 31, 2024

47. CAPITAL MANAGEMENT

Group’s objectives when managing capital are to
• maximize the unitholder value;
• safeguard its ability to continue as a going concern;
• maintain an optimal capital structure to reduce the cost of capital.

For the purpose of Group’s capital management, unit capital includes issued unit capital and all other reserves attributable
to the unitholders of the Trust. Group manages its capital structure and makes adjustments in light of changes in economic
conditions. To maintain or adjust the capital structure, Group may adjust the distribution to unitholders (subject to the
provisions of InvIT regulations which require distribution of at least 90% of the net distributable cash flows of the Trust to
unitholders), return capital to unitholders or issue new units. The Group monitors capital using a gearing ratio, which is the
ratio of Net Debt to total Equity plus Net Debt. The Group’s policy is to keep the gearing ratio optimum. The Group includes
within Net Debt, interest bearing loans and borrowings and current maturities of long term debt less cash and cash equivalents.

The gearing ratio of the Group was as follows: -

Particulars As at As at
31 March 2024 31 March 2023
(a) Long term debt (₹ in million) 5,698.29 5,727.07
(b) Less: Cash and cash equivalents 4,168.61 3,263.05
(c) Net Debt (a-b) 1,529.68 2,464.02
(d) Total Equity (₹ in million) * 75,412.39 77,064.89
(e) Total Equity plus net debt (₹ in million) (c+d) 76,942.07 79,528.91
(f ) Gearing Ratio (c/e) 1.99% 3.10%

*Total Equity includes unit capital and other equity.

The Group’s capital management, amongst other things, aims to ensure that it meets financial covenants attached to the
interest-bearing loans and borrowings that define capital structure requirements. There have been no breaches in the financial
covenants of any interest-bearing loans and borrowing in the current period.

Distributions
Particulars ₹ in million
Distributions made during the year ended 31.03.2024 of ₹ 12.00 per unit (Comprising Taxable Dividend 10,919.99
– ₹ 1.19, Exempt Dividend – ₹ 0.95, Interest – ₹ 7.87, Repayment of SPV Debt–₹ 1.95 and Treasury
Income – ₹ 0.04)
Distributions made during the year ended 31.03.2023 of ₹ 12.00 per unit (Comprising Taxable Dividend 10,919.99
– ₹ 2.37, Exempt Dividend – ₹ 1.01, Interest – ₹ 7.86, Repayment of SPV Debt–₹0.73 and Treasury
Income – ₹ 0.03)

Distribution not recognized at the end of the reporting period:

In addition to above distribution, the Board of Directors of POWERGRID Unchahar Transmission Limited in its capacity as the
Investment Manager to POWERGRID Infrastructure Investment Trust (“PGInvIT”) on 22 May 2024 recommended distribution
related to last quarter of FY 2023-24 of ₹ 3.00 per unit.

154 POWERGRID Infrastructure Investment Trust

 CORPORATE OVERVIEW STATUTORY REPORTS FINANCIAL STATEMENTS

Notes
to the Consolidated Financial Statements for the year ended March 31, 2024

48. INCOME TAX EXPENSE

This note provides an analysis of the group’s income tax expense, and how the tax expense is affected by non-assessable and
non-deductible items. It also explains significant estimates made in relation to the Group’s tax position.

(a) Income tax expense

₹ in million
Particulars For the year ended For the year ended
31 March 2024 31 March 2023
Current Tax
Current tax on profits for the year 178.09 210.15
Adjustments for current tax of prior periods
Total current tax expense (A) 178.09 210.15
Deferred Tax Expense
Origination and reversal of temporary differences 957.17 (2,142.95)
Previously unrecognized tax credit recognized as Deferred Tax - -
Asset this year
Total deferred tax expense /benefit (B) 957.17 (2,142.95)
Income tax expense (A+B) 1,135.26 (1,932.80)

(b) Reconciliation of tax expense and the accounting profit multiplied by India’s tax rate:
₹ in million
Particulars For the year ended For the year ended
31 March 2024 31 March 2023
Profit before income tax expense including movement in Regulatory 10,952.58 (6,396.90)
Deferral Account Balances
Tax at the Group's domestic tax rate 4,218.34 (3,195.43)
Tax effect of:
Non-Deductable tax items 423.99 420.13
Deductable tax items (1196.91) (1,477.45)
Impact of exemption u/s 10(23FC) of the Income Tax Act, 1961 (3,463.29) 3,962.57
Deferred Tax Expense/(Income) 957.17 (2,142.95)
Minimum alternate tax adjustments 104.89 149.91
Unabsorbed Tax Expenses 91.07 350.42
Income tax expense 1,135.26 (1,932.80)

(c) MAT Credit / Current Tax

As Group have option to avail MAT credit in future against Income Tax payable and hence MAT paid during earlier and
in current year are carried forward.

49. DISCLOSURES PURSUANT TO IND AS 103 “BUSINESS COMBINATIONS”

During the financial year ended 31 March 2024 and 31 March 2023, the Trust has not acquired any assets.

Annual Report 2023-24 155

Notes
to the Consolidated Financial Statements for the year ended March 31, 2024

50. DISCLOSURE AS PER IND AS 115 - “REVENUE FROM CONTRACTS WITH CUSTOMER”
a) The Group does not have any contract assets or contract liability as at 31st March 2024 and 31 March 2023.

b) The entity determines transaction price based on expected value method considering its past experiences of refunds or
significant reversals in amount of revenue. In estimating significant financing component, management considers the
financing element inbuilt in the transaction price based on imputed rate of return. Reconciliation of Contracted Price
vis-a-vis revenue recognized in profit or loss statement is as follows:

₹ in million
Particulars For the year ended For the year ended
31 March 2024 31 March 2023
Contracted price 12,273.96 12,500.76
Add/ (Less)- Discounts/ rebates provided to customer (63.44) (59.68)
Add/ (Less)- Performance bonus 442.86 417.26
Add/ (Less)- Adjustment for significant financing component - -
Add/ (Less)- Other adjustments - (0.49)
Revenue recognized in profit or loss statement 12,653.38 12,857.85

Project wise break up of revenue from contracts with Customers

₹ in million
Particulars For the year ended For the year ended
31 March 2024 31 March 2023
Vizag Transmission Limited 2,193.46 2,416.07
POWERGRID Kala Amb Transmission Limited 695.89 689.51
POWERGRID Parli Transmission Limited 3,359.32 3,361.11
POWERGRID Warora Transmission Limited 3,750.40 3,752.44
POWERGRID Jabalpur Transmission Limited 2,654.31 2,638.72
Total 12,653.38 12,857.85

51. OTHER INFORMATION

a. There are no cases of immovable properties where title deeds are not in the name of the Group.

b. No loans or advances in the nature of loans have been granted to promoters, directors, KMPs and the related parties (as defined
under Companies Act, 2013,) either severally or jointly with any other person, which are either repayable on demand or without
specifying any terms or period of repayment.

c. Ageing of CWIP
Particulars <1 Year 1-2 Years > 2 Years Total
As at 31 March 2024
Buildings
Township 15.89 24.13 24.76 64.78
Plant & Equipments (including associated civil works)
Sub-Station 0.57 2.32 7.17 10.06
Expenditure pending allocation
Construction Stores (Net of Provision) - - - -
Total 16.46 26.45 31.93 74.84

156 POWERGRID Infrastructure Investment Trust

 CORPORATE OVERVIEW STATUTORY REPORTS FINANCIAL STATEMENTS

Notes
to the Consolidated Financial Statements for the year ended March 31, 2024

Particulars <1 Year 1-2 Years > 2 Years Total

As at 31 March 2023
Buildings
Township 24.13 19.76 5.00 48.89
Plant & Equipments (including associated civil works)
Sub-Station 28.69 7.72 0.03 36.44
Expenditure pending allocation
Construction Stores (Net of Provision) 64.84 1.05 - 65.89
Total 117.66 28.53 5.03 151.22

d. Completion of capital-work-in progress (CWIP) is neither overdue nor has exceeded its cost compared to its original plan.

e. The Group do not have Intangible asset under development.

f. The Group do not have Intangible assets under development, whose completion is overdue or has exceeded its cost compared
to its original plan.

g. The Group does not hold benami property and no proceeding has been initiated or pending against the Group for holding any
benami property under the Prohibition of Benami Property Transactions Act, 1988 (as amended) and rules made thereunder
as at the end of the financial year.

h. The Group is not sanctioned any working capital limit secured against current assets by any Finance Institutions.

i. The Group does not have any transactions, balances, or relationship with struck off companies.

j. The Group was not declared as a wilful defaulter by any bank or financial Institution or other lender during the financial year.

k. The Trust does not have any subsidiary to comply with the number of layers prescribed under clause (87) of section 2 of the
Act read with the Companies (Restriction on number of Layers) Rules, 2017 during the financial year.

l. Ratios
Ratio Numerator Denominator Current Previous Variance Reason for
Year Year (%) variance >25%
(a) Current Ratio Current Assets Current Liabilities 31.98 29.08 9.97 -
(b) Debt-Equity Ratio Total Debt Shareholder’s Equity 0.07 0.07 - -
(c) Debt Service Coverage Profit for the Interest & Lease 24.19 27.68 (12.61) -
Ratio period before Payments + Principal
tax+ Depreciation Repayments
and amortization
expense + Finance
costs+ Impairment
(d) Interest Service Earnings Interest & Finance 25.67 29.60 (13.28) -
Coverage Ratio before Interest, Charges net of
Depreciation, amount transferred
Impairment and Tax to expenditure
during construction
(e) Return on Equity Ratio Profit for the Average 0.13 (0.05) (360.00) Due to reversal
period after tax Shareholder’s Equity of Impairment
in Current Year.
(f ) Inventory turnover ratio Revenue from Average Inventory 40.99 41.72 (1.75) -
Operations

Annual Report 2023-24 157

Notes
to the Consolidated Financial Statements for the year ended March 31, 2024

Ratio Numerator Denominator Current Previous Variance Reason for

Year Year (%) variance >25%
(g) Trade Receivables Revenue from Average Trade 4.20 3.90 7.69 -
turnover ratio Operations Receivables
excluding
unbilled revenue
(h) Trade payables Gross Other Average 89.08 185.98 (52.10) Due to
turnover ratio Expense (–) FERV, Trade payables increase in
Provisions, Loss on trade payables
disposal of PPE
(i) Net capital turnover Revenue from Current Assets – 1.48 1.49 (0.67) -
ratio Operations Current Liabilities
(j) Net profit ratio Profit for the Revenue from 0.78 (0.35) (322.86) Due to reversal
period after tax Operations of Impairment
in Current Year.
(k) Return on Earnings before Tangible Net Worth 0.11 (0.06) (283.33) Due to reversal
Capital employed interest and taxes + Total Debt + of Impairment
Deferred Tax Liability in Current Year.
(l) Return on Investment Interest from Average NA NA NA -
Investment Investments

m. The Group has not received/advanced or loaned or invested funds (either borrowed funds or share premium or any other
sources or kind of funds) through Intermediaries during the financial year.

n. The Group does not have any transaction that was not recorded in the books of accounts and has been surrendered or disclosed
as income during the year in the tax assessments under the Income Tax Act, 1961.

o. The Group has not traded or invested in Crypto currency or Virtual Currency during the financial year.

52. OTHER NOTES

a) Figures have been rounded off to nearest rupees in million up to two decimals.

b) Previous year figures have been regrouped/ rearranged wherever considered necessar

As per our report of even date For and on behalf of Board of Directors of POWERGRID Unchahar Transmission Limited in
For S.K.Mittal & Co. the capacity as Investment Manager to POWERGRID Infrastructure Investment Trust.
Chartered Accountants
FRN: 001135N Anjana Luthra Abhay Choudhary Purshottam Agarwal
Company Secretary Chairman Director
PAN: ABYPL2312H DIN: 07388432 DIN: 08812158
Place: Gurugram Place: Mumbai Place: Mumbai

(CA Gaurav Mittal) A Sensarma Amit Garg

Membership Number: 099387 CEO CFO
Place: New Delhi PAN: AEXPS3591K PAN: ACSPG1833F
Place: Gurugram Place: Gurugram
Date: 22 May 2024

158 POWERGRID Infrastructure Investment Trust

 CORPORATE OVERVIEW STATUTORY REPORTS FINANCIAL STATEMENTS

Glossary
AI/ML Artificial Intelligence/Machine Learning ISTS Inter State Transmission System
AP Andra Pradesh ITSL IDBI Trusteeship Services Limited
AUM Assets Under Management kV kilovolt
BSE Bombay Stock Exchange kWh kilowatt-hour
BU Billion Units LILO Loop-In-Loop-Out
CARE CARE Ratings Limited Listing SEBI (Listing Obligations and Disclosure
CEA Central Electricity Authority Regulations Requirements) Regulations, 2015, as amended
CEO Chief Executive Officer MVA Mega Volt Ampere
CERC Central Electricity Regulatory Commission NAV Net Asset Value
ckm circuit kilometer NCT National Committee on Transmission
CMD Chairman and Managing Director NDCF Net Distributable Cash Flows
COD Commercial Operation Date NIT National Institute of Technology
CPSE Central Public Sector Enterprise NMP National Monetisation Pipeline
CRISIL CRISIL Ratings Limited NRSS Northern Region System Strengthening
CSR Corporate Social Responsibility NSE National Stock Exchange
CTUIL Central Transmission Utility of lndia Ltd NTPC NTPC Limited
D/C Double Circuit O&M Operation & Maintenance
DCF Discounted Cash Flow OPGW Optical Ground Wire
DG Diesel Generator PAS Publicly Available Specification
DIC Designated ISTS Customer PAT Profit After Tax
DISCOM Distribution Company PFRDA Pension Fund Regulatory and Development
DPE Department of Public Enterprises Authority
DPU Distribution Per Unit PG POWERGRID
DSRA Debt Service Reserve Account PGInvIT POWERGRID Infrastructure Investment Trust
EBITDA Earnings Before Interest, Taxes, Depreciation, PJTL POWERGRID Jabalpur Transmission Limited
and Amortization PKATL POWERGRID Kala Amb Transmission Limited
EHV Extra High Voltage POWERGRID Power Grid Corporation of India Limited
EPU Earnings per Unit PPTL POWERGRID Parli Transmission Limited
ESG Environment, Social and Governance PSU Public Sector Undertaking
Final Final Offer Document of PGInvIT dated PUTL POWERGRID Unchahar Transmission Limited
Offer Document May 6, 2021 PWTL POWERGRID Warora Transmission Limited
FY Financial Year RBI Reserve Bank of India
GIS Gas Insulated Substation RE Renewable Energy
GoI Government of India REIT Real Estate Investment Trust
GW Gigawatt RoW Right of Way
ICRA ICRA Limited RPC Regional Power Committee
IM Investment Manager RTM Regulated Tariff Mechanism
IMT Ghaziabad Institute of Management Rupees or ₹ The Indian Rupee
Technology, Ghaziabad SEBI Securities and Exchange Board of India
Ind AS Indian Accounting Standards SA Social Accountability
InSTS Intra-State Transmission System SPV Special Purpose Vehicle
InvIT Infrastructure Investment Trust TBCB Tariff-Based Competitive Bidding
InvIT SEBI (Infrastructure Investment Trusts) TDS Tax Deducted at Source
Regulations Regulations, 2014, as amended Trust POWERGRID Infrastructure Investment Trust
or SEBI InvIT
TSA Transmission Service Agreement
Regulations
VTL Vizag Transmission Limited
IPA Initial Portfolio Asset
WACC Weighted Average Cost of Capital
IPO Initial Public Offer
ISO International Organization for Standardization

Annual Report 2023-24 159

DISCLAIMER
This report is prepared for the consumption of the unitholders of POWERGRID Infrastructure Investment Trust (“PGInvIT”) pursuant to the
Securities and Exchange Board of India (Infrastructure Investment Trusts), 2014, as amended, and issued by POWERGRID Unchahar Transmission
Limited (the “Investment Manager”) in its capacity as the Investment Manager of PGInvIT. This report (a) is for information purposes only without
regards to specific objectives, financial situations or needs of any particular person, (b) should not be construed as legal, tax, investment or other
advice, (c) should not be considered as a prospectus, an offer/offer document, an advertisement or a recommendation to any person to purchase/
subscribe to any units or any other securities / instruments issued or proposed to be issued by PGInvIT, and (d) should not be disclosed, reproduced,
retransmitted, summarized, distributed or furnished, in whole or in part, to any other person or persons.
We do not assume responsibility to publicly amend, modify or revise any statements in the Report on the basis of any subsequent development,
information or events, or otherwise. No representation, warranty or undertaking, express or implied, is made or assurance given that any
statements, opinions, views, projections or forecasts, if any, are correct or that any objectives specified herein will be achieved. Neither we, nor
any of our affiliates, as such, make any representation or warranty, express or implied, as to, and do not accept any responsibility or liability with
respect to, any loss, howsoever, arising from any use or reliance on this Report or its content or otherwise arising in connection therewith.
This report comprises information given in summary form and does not purport to be complete and it cannot be guaranteed that such
information is true and accurate. The information contained herein is only current as of the date specified herein, has not been independently
verified and is subject to change without notice and past performance is not indicative of future results. Unless otherwise stated in this report,
the information contained herein is based on management information and estimates. This report includes statements that are, or may deemed
to be, “forward-looking statements”. By their nature, forward-looking statements involve risks and uncertainties because they relate to events
and depend on circumstances that may or may not occur in the future. Forward-looking statements are not guarantees of future performance
including those relating to general business plans and strategy, future outlook and growth prospects, and future developments in its businesses
and its competitive and regulatory environment. In addition to statements which are forward looking by reason of context, the words ‘may’, ‘will’,
‘should’, ‘expects’, ‘plans’, ‘intends’, ‘anticipates’, ‘believes’, ‘estimates’, ‘predicts’, ‘potential’ or ‘continue’ and similar expressions identify forward-
looking statements. Any projection of future income or performance should be viewed merely as a fair estimate of the management of PGInvIT,
which may be dependent on several factors and in no manner should be construed as an indication of its reflection in the market price of units or
any other securities / instruments issued or proposed to be issued by PGInvIT.
Any recipient of this report will be solely responsible for their own assessment of the market and the market position of PGInvIT and the recipient
will conduct their own analysis/assessment of the relevance, accuracy and adequacy of the information contained in this report and must make
such independent investigation as you may consider necessary or appropriate for such purpose and be solely responsible for forming their own
view of the potential future performance of the business of PGInvIT.
Furthermore, no person is authorized to give any information or make any representation which is not contained in, or is inconsistent with, this
report. Any such extraneous or inconsistent information or representation, if given or made, should not be relied upon as having been authorized
by or on behalf of PGInvIT or the Investment Manager on behalf of PGInvIT.
The distribution of this report in certain jurisdictions may be restricted by law. Accordingly, any persons in possession of this report should inform
themselves about and observe any such restrictions.
POWERGRID INFRASTRUCTURE INVESTMENT TRUST
Principal Place of Business:
Plot No. 2, Sector 29,
Gurgaon 122 001
Email: [email protected]

Tel: +91 124 282 3177

Fax: +91 124 282 3180
Website: www.pginvit.in