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POWERGRID has diversified into the telecommunication business by creating a telecommunication network using their overhead transmission infrastructure. POWERGRID owns and operates a fibre-optic cable network which in March 2007 consisted of over 19,000 kilometres and connected over 60 Indian cities, including all major metropolitan areas. We have been leasing bandwidth on this network to more than 60 customers, including major telecom operators such as Bharat Sanchar Nigam Limited, Videsh Sanchar Nigam Limited, Tata Teleservices Limited, Reliance Communications Limited and Bharti Airtel Limited.Our telecommunication network benefits from the extensive geographic reach of our power transmission network. Our telecommunication network covers substantially all the main territories of India. In addition, we are currently one of the few telecommunications network providers that has a presence in remote areas of India, such as Jammu & Kashmir, Himachal Pradesh and the North Eastern region (Assam, Manipur, Meghalaya, Nagaland and Tripura).The total capital expenditure approved by the Cabinet Committee on Economic Affairs (“CCEA”) for the establishment of our telecommunications network is Rs. 9,34.23crore. POWERGRID has been granted the Infrastructure Provider-I (“IP-I”) and Internet Service Provider Category-A (“ISP-A”) licences. In July 2006 we acquired a National Long Distance (“NLD”) License, which increases our target market by enabling us to offer our services to non-licensed service providers such as entities in the corporate, government and defence sectors. Since then, we have added such end-user customers as the Indian Army, Indian Intelligence Bureau, Central Reserve Police Force, National Infomatics Centre and a number of corporations, including Infosys Technologies Ltd. and Ericsson India Pvt. Ltd. Under our NLD License, we may participate further in the national long distance business through tie-ups with other telecom service providers.

         
 
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