Dear Shareholders,
The financial year 2023-24 dawned amidst promising signs of economic
recovery, yet geopolitical tensions cast a shadow, leading to a surge in commodity prices
and global inflation. Nevertheless, concerted efforts paved the way for the global economy
to navigate through these challenges, fostering an environment conducive to achieving
energy transition goals.
The power sector in India is witnessing a notable surge in electricity
demand, driven by rapid economic growth and the increasing adoption of renewable energy
sources. In this dynamic landscape, your Company has demonstrated commendable performance
during the fiscal year. As we continue to adapt and innovate in this changing environment,
we remain steadfast in our pursuit of excellence and sustainable growth.
As a leading distribution licensee in West Bengal, your Company remains
steadfast in its commitment to sustainable energy initiatives and ensuring a reliable,
affordable power supply. With an aggregate technical and commercial loss of approximately
2.47%, IPCL boasts one of the lowest T&D losses in the country, complemented by
exceptional collection efficiency and supply reliability. Noteworthy accomplishments
include the completion of a 33 kV and 132 kV transmission line, augmenting power delivery
efficiency. Embracing digitalisation, your Company introduced the e-Bill Payment System to
streamline payment processes for customers, showcasing its dedication to innovation and
customer service.
Your Company stands at the forefront of the renewable revolution in the
power distribution sector. With an unwavering commitment to sustainable energy
initiatives, your Company is spearheading the transition towards a greener, more resilient
energy ecosystem.
Your Company has established a sustainable energy portfolio, meeting
around 50% of its energy needs through renewables. Pioneering the renewable revolution,
your Company is implementing strategic initiatives aimed at integrating renewable energy
sources into the grid. Its ambitious target of achieving 75% renewable energy integration
by 2025 underscores its dedication to sustainable energy practices. To surpass the green
energy mix of 75%, your Company is procuring 200 MW of renewable power from the Solar
Energy Corporation of India (SECI) and promoting distributed renewable energy systems for
industrial and commercial consumers. The Company actively seeks opportunities in the
renewable power sector to further enhance its green energy contributions. Your
Company's renewable energy initiatives, including the contracted 200 MW Renewable
Energy capacity, are projected to save 1.44 million tons of CO2 emissions annually. This
substantial environmental impact underscores IPCL's commitment to environmental
sustainability and combatting climate change.
Despite commendable progress, your Company faces challenges associated
with the intermittency of renewable energy and the procurement of brown power during
non-solar hours. To address these challenges, IPCL has initiated a pre-feasibility study
for the "Green Island" project. This endeavour aims to enhance grid stability
and reliability through the deployment of battery energy storage systems with a capacity
of 40MW/160MWh and enhance Green footprint of your Company.
Your Company reiterates its unwavering commitment to sustainable energy
initiatives and grid resilience. Through strategic initiatives such as renewable energy
integration and innovative projects like the BESS project, IPCL continues to lead the way
towards a greener, more sustainable energy future for West Bengal and beyond.
Your Company is at the forefront of Advanced Metering Infrastructure
(AMI) initiatives, securing projects to implement smart meters in Madhya Pradesh. Through
its subsidiary MP Smart Grid Private Limited, your Company has already installed meters
and aims to complete the project by the end of the financial year. By embracing smart
metering technology, your Company seeks to enhance operational efficiency and customer
service while capitalising on the growth potential in this vertical.
Recognising our workforce as the cornerstone of our accomplishments, we
prioritise substantial investment in talent management and development. With an commitment
to fostering a culture of continuous growth and empowerment, we continue to cultivate a
workforce that is not only highly motivated but also exceptionally skilled, positioning us
for sustained success in the long term.
Furthermore, your Company stands resolute in its pledge to diminish its
carbon footprint and uplift communities through various initiatives. These endeavours
encompass women's empowerment, skill enhancement, educational support, environmental
preservation, and beyond. By channelling resources into these vital spheres, your Company
endeavours to foster meaningful change in people's lives, fostering their enduring
welfare and contributing to a brighter future for all.
In conclusion, I extend sincere gratitude to our shareholders,
customers, employees, and stakeholders for their unwavering support. Your trust and
collaboration empower us to navigate business challenges with confidence. As we move
forward, our commitment to strengthening our foundation remains unwavering. We are
dedicated to sustainable growth and value creation for all stakeholders. Our success
hinges on investments in assets, people, processes, and technology. Together, let's
advance towards a future defined by innovation, inclusivity, and prosperity.
Warm regards,
| RAGHAV RAJ KANORIA |
| Managing Director |