Acme Solar Holdings Ltd — Q4 FY26

Acme Solar Holdings Ltd Q4 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=hrEs3lQlRTA Published: 5 days ago

0:01 1 second Ladies and gentlemen, good day and welcome to the Acme Solar Holdings Limited Q4 and FI26 earnings conference 0:09 9 seconds call. As a reminder, all participant lines will be in the listenon mode and there will be an opportunity for you to ask questions after the presentation 0:18 18 seconds concludes. Should you need assistance during this conference call, please signal an operator by pressing start then zero on your touchstone phone. I 0:27 27 seconds now end the conference or to Mr. Nikon said from MUFG. Thank you and over to you Nikon. 0:34 34 seconds Thank you NRA. Good morning everyone. 0:37 37 seconds Welcome to Q4 and FI26 earnings conference call of Acme Solar Holdings Limited. From the management we have 0:45 45 seconds with us Mr. Manoj Kumar up chairman and managing director, Mr. Nikil Dingra, CEO, Mr. Arun Chopra, CFO and Mr. Ankit 0:53 53 seconds Swarma, head of corporate finance. Now I would like to hand over the call to the management for their opening remarks. 1:00 1 minute Thank you and over to you sir. 1:05 1 minute, 5 seconds Uh thank you Nikoj. Good morning everyone. Uh thank you all for joining us today. I'm Nikil Ningra CEO of the company. 1:13 1 minute, 13 seconds I would like to begin by expressing my sincere gratitude to Rajat Kumar Singh for his valuable contributions to the company during his tenure as the CFO. He 1:22 1 minute, 22 seconds has decided to pursue career opportunities outside of ACME. I wish him all the best in his future endeavors. Arun Chopra has now been 1:30 1 minute, 30 seconds appointed as the company CFO and I would like to invite him to take over and walk us through the highlights of Q4 and FY26 1:38 1 minute, 38 seconds for us. Arun, thanks Nik. It's my pleasure to share the highlights of our 1:44 1 minute, 44 seconds Q4 and FY26 performance. I would like to start with sector highlights. India has observed its all-time highest peak 1:53 1 minute, 53 seconds electricity demand of 256 gawatt on 25th April 26. This milestone surpasses the previous all-time high of 250 gawatt 2:01 2 minutes, 1 second recorded on 30th May 24th and exceeds the peak of 245 gawatt observed on 9th January 26. 2:08 2 minutes, 8 seconds The rise in demand is in line with the progression of summer conditions across the country with electricity consumption witnessing a significant growth of 8.9% 2:17 2 minutes, 17 seconds during the month of April 26. India continues to maintain strong momentum in capacity additions with approx 55 gawatt 2:25 2 minutes, 25 seconds of re added in financial year 26 taking cumulative renewable [clears throat] energy capacity to 283 gawatt 2:34 2 minutes, 34 seconds total power generation during FY26 reached 1845 billion units with share of non-fossil fuels in total generation 2:42 2 minutes, 42 seconds reaching 29% roughly 538.97 billion units in a significant milestone 2:49 2 minutes, 49 seconds India achieved 50% of its cumulative electric power installed capacity from non-fossil fuel sources in June 25, 5 2:56 2 minutes, 56 seconds years ahead of the 2013 target set under its nationality determined contribution to the Paris agreement. In terms of the 3:04 3 minutes, 4 seconds regulatory updates, SEKI has been notified as single REIA by MNE which is expected to drive a more streamlined, 3:12 3 minutes, 12 seconds focused and structured bidding framework going forward. In terms of best installation, the sector has w has witnessed strong regulatory tailwinds. 3:23 3 minutes, 23 seconds MNRE has clarified that best charged from conventional power under FDR bids can sell power in merchant mode without 3:30 3 minutes, 30 seconds buyer NOC till the time corresponding is not commissioned. Speeding up best deployment. Also, CTu has started 3:39 3 minutes, 39 seconds processing best connectivity requests under roofer speeding up commissioning with 36 months of gr charging allowed from the GNA effective date. 3:49 3 minutes, 49 seconds CRC has issued a draft su motorto order to extend SOOD timelines under the connectivity and GNA regulations by up 3:57 3 minutes, 57 seconds to one year with compensation giving regulatory certainty to delayed projects nearing connectivity deadlines. Thus 4:05 4 minutes, 5 seconds transmission delay in brownfield projects provides an opportunity to utilize best merchant operations. Now 4:12 4 minutes, 12 seconds coming to our company's performance in line with our continued focus on early best deployment we successfully 4:19 4 minutes, 19 seconds commissioned 2 approximately 2.23 gawatt best capacity to date. These besties are running on merchant and short-term 4:27 4 minutes, 27 seconds contracts capturing the direct arbitrage between sale and purchase of power during peak and non- peak hours respectively. As of date, it is 4:35 4 minutes, 35 seconds delivering net realization value of approximately 2.2 crores per day. Also from an operational standpoint, the best 4:43 4 minutes, 43 seconds is currently delivering a roundtrip efficiency of approximately 88 to 90% in line or maybe better than our expectations. 4:51 4 minutes, 51 seconds In addition to BES, our operational generation contracted capacity now stands at 2,990 megawatt. 4:58 4 minutes, 58 seconds With respect to our under construction capacity on our on order book front we want 301 megawatt peak power FDR 5:06 5 minutes, 6 seconds projects in the SEI during the quarter expanding our under construction portfolio to 5.1 gawatt and total 5:13 5 minutes, 13 seconds portfolio to 871 megawatt which will also require installation of around 17 gawatt RB 5:21 5 minutes, 21 seconds out of the total under construction capacity the PPA science capacity stands at 3280 megawatt in terms of capital 5:28 5 minutes, 28 seconds deploy employment we have committed total capex of INR 12,475 crores which includes capex incurred of 5:35 5 minutes, 35 seconds INR 6445 crores during the year and purchase orders aggregating to INR 630 crores 5:43 5 minutes, 43 seconds continuing to our financial performance our total revenue for the quarter stands at INR 705 crores and INR 257 crores for 5:52 5 minutes, 52 seconds FY26 a 31% and 59% increase yearonear respectively driven contract capacity addition and higher CUS. Total revenue 6:02 6 minutes, 2 seconds for the quarter includes other income of INR 157 crores. This primary comprises recurring interest income from cash generated from power sales at SPV until it is upstream to SHN. 6:13 6 minutes, 13 seconds It also includes recurring interest from DERA balances maintained in line with debt covenants. Since the desra is 6:20 6 minutes, 20 seconds largely funded from debt proceeds, the corresponding finance cost is accounted for accordingly in the finance cost aid 6:28 6 minutes, 28 seconds margin of over 90% both for the quarter and full year on account of favorably operating leverage and optimized operational efficiency. PAT stood at INR 6:37 6 minutes, 37 seconds 138 cr for the quarter and INR 498 cr for the year with a margin of 19.6% and 19.9% respectively. 6:45 6 minutes, 45 seconds Now at last coming to operational metrics for the quarter we generated 1720 million units in Q4 up 13% and 6:54 6 minutes, 54 seconds 6,464 million units in FI26 up 61% yearon year. Our CUS stood at 26.9% in 7:02 7 minutes, 2 seconds Q4. Further our grid availability and plant availability stand at over 99% for the year. Coming to our debt 7:10 7 minutes, 10 seconds optimization efforts during the year we secured financing of around 15,000 crores for various under construction projects and refinanced debt amounting 7:18 7 minutes, 18 seconds to another 3,300 crores for various operational projects resulting in reduction of rate of interest of the 7:25 7 minutes, 25 seconds refinanced projects by approximately 150 basis points. Also the weighted average cost of debt for the operational projects stands at 8.4% peranom. 7:36 7 minutes, 36 seconds As of date 2.2 2 gawatt of operational projects have an assigned credit rating of aa minus stable. Going forward, our 7:44 7 minutes, 44 seconds key focus remains on timely execution alongside healthy order book additions with the following priorities. We will continue to focus on advancing 7:53 7 minutes, 53 seconds commission commissioning and operation of large scale best capacity which will utilize transmission infra of existing operational projects and will run on 8:00 8 minutes merchant on short-term basis. Upcoming future operational capacity is expected to have an operating battery portfolio 8:07 8 minutes, 7 seconds of around 10 gawatt hour along with 1.5 gawatt of contracted generation capacities subject to timely availability of transmission 8:15 8 minutes, 15 seconds connectivity and other external factors in terms of orderbook additions. While we remain focused on long-term 25-year 8:22 8 minutes, 22 seconds contracts, we also intend to actively participate in short and medium-term best opportunities to capitalize on evolving market demand and merchant 8:31 8 minutes, 31 seconds market dynamics. With that, I now open the floor for questions. Our team would be happy to take them. Thank you. 8:39 8 minutes, 39 seconds Thank you very much. We'll now begin with the question and answer session. 8:44 8 minutes, 44 seconds Anyone who wishes to ask a question may press star and one on the telephone. If you wish to remove yourself from the question queue, you may press R and two. 8:54 8 minutes, 54 seconds Participants are requested to use handsets while asking a question. 8:58 8 minutes, 58 seconds Ladies and gentlemen, we will wait for a moment while the question Q assemble. 9:04 9 minutes, 4 seconds Participants, you may press star and one to ask a question. 9:11 9 minutes, 11 seconds The first question comes from the line of Pune from HSBC. Please go ahead. 9:20 9 minutes, 20 seconds Uh yeah, thank you so much uh for the opportunity and congratulations on on good performance. My first question is on your uh battery side. Uh can you talk 9:29 9 minutes, 29 seconds about how much of the battery cost you capitalized in the previous year and how much have you spent uh so far in the uh 9:36 9 minutes, 36 seconds in the 2.3 gawatt that is now fully commissioned. 9:44 9 minutes, 44 seconds Hi Ponit uh thanks for the query. Uh so in terms of uh last quarter uh this quarter we have uh done approximately 9:52 9 minutes, 52 seconds around 1 1200 crores of cipex on the battery I think for the this quarter it is still going on so we will update you once this quarter finishes but in the 10:00 10 minutes last quarter we did around in this quarter so far current quarter currently last quarter was around 10:08 10 minutes, 8 seconds 1,000,000 to 1200 crores and and how much was commissioned till last quarter yeah just in capacity terms 10:15 10 minutes, 15 seconds as 1.3 1.3 okay uh second is if you can also give a 10:23 10 minutes, 23 seconds sense of what is the run rate a bit you are making out of your existing capacity uh with and without best so far 10:33 10 minutes, 33 seconds so 87 u 87% is our uh aida for this year right uh it is in the range of 88 89% uh 10:42 10 minutes, 42 seconds I think uh 90% No, I mean is run rate from the 2990 capacity. 10:52 10 minutes, 52 seconds If you look at FI26, so majorly you know whatever this 3 gawatt is operational. 10:58 10 minutes, 58 seconds So that was primarily running in 26. So give or take for the last full year including other income has been around 11:06 11 minutes, 6 seconds 2200 odd cr. This primarily includes revenue from uh you know sale of power only from the PP projects. However, 11:13 11 minutes, 13 seconds given that uh the batteries uh you know came in various phases in the last quarter especially in March so probably 11:20 11 minutes, 20 seconds the run rate you will realize you know in this quarter itself but having said that like I mentioned uh you know 2.3 GW 11:28 11 minutes, 28 seconds is uh currently operational and of course u it is running on merchant basis 11:35 11 minutes, 35 seconds and as uh Arun highlighted earlier so it is delivering give or take uh average 11:42 11 minutes, 42 seconds net relation of 2.2 cr per day which is effectively more than 60 cr per month this capacity which is running and last quarter there was almost 11:50 11 minutes, 50 seconds nothing from the battery. Yeah. This quarter we have uh in March quarter there almost negligible amount of battery because it just uh was getting started. It was not even started at various places. 12:00 12 minutes Yeah. 12:01 12 minutes, 1 second So 2.2 cr per day on a 2300 megawatt hour battery right? Yeah. Yeah. Yeah. 12:08 12 minutes, 8 seconds Okay. And lastly, if you can also talk about how have your new solar plants been operating in terms of PLF. So what was commissioned in FI25? What sort of 12:17 12 minutes, 17 seconds PLF did they end up generating for 26? 12:22 12 minutes, 22 seconds So our seeker plant basically got commissioned uh in in uh in this year right and it is uh doing close to around 12:30 12 minutes, 30 seconds uh 29 uh to 30% a year for the overall year. So majority of the projects pane uh are in Rajasthan uh and roughly that capacity is roughly 2200 200 megawatt. 12:42 12 minutes, 42 seconds So for the last quarter I think the CPLF has been around 28% plus for these plants 12:48 12 minutes, 48 seconds on on a full year basis 29 to 30 sorry for full year basis you said 29 to 30% 12:56 12 minutes, 56 seconds from the new plants number see yeah for the new plant it is because we have a higher DC installed 13:04 13 minutes, 4 seconds there so it has a higher CUF yeah for the full it's been close to 26% for the entire portfolio 13:11 13 minutes, 11 seconds he's asking about Rajasthan You got it. Yeah. Yeah. 13:16 13 minutes, 16 seconds So, got it. And and lastly, there was this SEISTS hybrid trans 6 scheme which got a regulatory approval uh for 3.25 13:25 13 minutes, 25 seconds and and now it says that there's a battery inclusion. Can you talk about how has the economics changed there? 13:33 13 minutes, 33 seconds You're talking about the not yet signed, right? 13:37 13 minutes, 37 seconds Yeah. But it it got approved, right? I mean uh that yeah yeah yeah it got approved right. So 13:45 13 minutes, 45 seconds basically it is u what happens is uh most of the states want battery installation along with the uh project. 13:53 13 minutes, 53 seconds So uh it it basically uh keeps the return in uh in uh high teens only. So it does not impact really uh the returns 14:02 14 minutes, 2 seconds uh from uh this thing. But of course we need to uh we need to uh satisfy the customer requirement in terms of the power mix they want because everybody 14:10 14 minutes, 10 seconds needs peak power now. So that is where we need to offer uh that 1 hour of battery. Yeah. 14:17 14 minutes, 17 seconds Okay. Understood. That's also my thank you so much and all the best. Thank you Punit. 14:23 14 minutes, 23 seconds Thank you. Next question is from the line of Karthik Sharma from Arandati. Please go ahead. 14:32 14 minutes, 32 seconds Hello sir. Congrats on a great set of numbers. Um do you I hope I'm audible. 14:38 14 minutes, 38 seconds Yes, please. Yes. 14:41 14 minutes, 41 seconds Yes sir. Given the just continuing from uh the previous participant uh given the rising concentration of projects in 14:49 14 minutes, 49 seconds Rajasthan and ongoing transmission and grid constraints in the strait. uh is there any uh curtailment impact that 14:56 14 minutes, 56 seconds we've had or and if yes could you quantify uh in in like what happens in Q4 or the full year in Abidal loss or 15:05 15 minutes, 5 seconds and how are you thinking about future project allocations uh like Gujarat or Maharas if there is any 15:13 15 minutes, 13 seconds right right now that's a very relevant point uh the key thing is uh in terms of the curtailment uh which uh where are 15:22 15 minutes, 22 seconds you connected in terms terms of the transmission system. So uh we have uh you can say around two projects only out 15:29 15 minutes, 29 seconds of our whole portfolio uh which are in Rajasthan connected to the state grid. 15:34 15 minutes, 34 seconds Uh rest of our portfolio by and large is on the central grid where you are compensated for the curtailment uh through uh through the regulatory 15:42 15 minutes, 42 seconds mechanism. So in the whole year we were uh of course uh and in in curtailment also there are two kind of curtailments where you don't get a long-term open 15:51 15 minutes, 51 seconds access like which happened with our seeker plant before the full commissioning because the long-term open access was not active. So that is like a 15:59 15 minutes, 59 seconds precood or a preNA kind of a curtailment which is not usually uh grid related curtailment that is where the infrastructure is not yet ready but you 16:06 16 minutes, 6 seconds are ready with the plant. So I would not that call that a curtailment but adjusted for that for the whole year we have only five to six crores of impact 16:14 16 minutes, 14 seconds on the curtailment which is the real curtailment and of course on SEU uh um it was only 3 crores uh in Rajasthan for 16:22 16 minutes, 22 seconds the whole year state connected projects and 23 cr was on the account of maintenance done by the grid operator on 16:30 16 minutes, 30 seconds account of the uh uh on account of you can say the onm which they do uh for for that so that was the impact on 16:37 16 minutes, 37 seconds curtailment on our project during the year. 16:41 16 minutes, 41 seconds Understood. And the future project allocation if you could give any. 16:45 16 minutes, 45 seconds So all of our projects are in the uh CTU. Uh so uh we have consciously built a portfolio with uh uh you can say all 16:53 16 minutes, 53 seconds the uh all the central counterparties on CTU. So uh we don't have uh and also that is another reason we have not gone 17:02 17 minutes, 2 seconds aggressive on the CNI because they are all state uh projects we have to do. if you wanted to serve the actual consumer. 17:09 17 minutes, 9 seconds Uh so uh in terms of the uh all our CPU connected projects with CPU connected substations where you are regulatory 17:16 17 minutes, 16 seconds protected from the customer uh uh payments are there uh irrespective of uh you can say the grid curtailment. So uh 17:24 17 minutes, 24 seconds they are all uh on on the uh you can say various substations in uh Rajasthan, Gujarat, Madhya Pradesh, Andhra Pradesh, 17:32 17 minutes, 32 seconds Karnataka. So once once the long-term open access is granted then you are protected from curtailment uh on on a 17:39 17 minutes, 39 seconds CTO connected substation undersc I would I would like to clarify my name 17:50 17 minutes, 50 seconds is Manoj uh most of the CTU connected project we are installing the battery so in fact such curtailment sometimes provides you 17:59 17 minutes, 59 seconds opportunity to sell the power in the peak or in the evening. 18:03 18 minutes, 3 seconds So all our CPU connected uh plants that's what we are focusing all our CPU connected plant will have a battery 18:11 18 minutes, 11 seconds available. So whenever that cutment will happen we will charge the battery and we will use that power right while we will get compensated for the curtailment but 18:20 18 minutes, 20 seconds we will use the free power also to charge the battery. 18:24 18 minutes, 24 seconds Got it. Got it sir. Thank you. And as the battery installation happens uh just on that just to uh finish that point as the battery installation happens the 18:32 18 minutes, 32 seconds curtailment issue will be further reduced because u uh as as more and more battery gets installed in Rajasthan and it is by and large happening in 18:41 18 minutes, 41 seconds Rajasthan because they have the largest uh operational uh solar so so you will see that the transmission system uh 18:48 18 minutes, 48 seconds improves a lot with the battery installation. 18:52 18 minutes, 52 seconds Understood. Understood sir. So uh we highlighted that there was a sharp improvement in receivables and the DSO 18:59 18 minutes, 59 seconds has come down to 14 days which was uh at at one point in time 180 days. Uh so despite the significant scale up could 19:06 19 minutes, 6 seconds you help us understand whether this is largely driven by like one time collections or is this like a structural shift that you are seeing in the portfolio mix when you say that it's 19:15 19 minutes, 15 seconds going to be more central offtakers and how sustainable this working capital profile is going forward. 19:23 19 minutes, 23 seconds So see our uh portfolio as as it gets more operational uh it is shifting towards uh uh 100% central uh all of our 19:32 19 minutes, 32 seconds under construction projects are 100% central where they take a cash discount. 19:36 19 minutes, 36 seconds So it essentially and they pay in 10 days uh basically in 30 days if you pay you get a cash discount. So uh so that is where uh they take a cash discount. 19:47 19 minutes, 47 seconds So that is why we are getting a 15 days kind of a receivable cycle today. So which is more or less not because of oneoff it is it is the norm. 19:55 19 minutes, 55 seconds Yeah. So Ankish you want to add? Yeah, earlier I think the high receivable days you are talking about so that pertains to very you know you can say FI23 and 20:04 20 minutes, 4 seconds before that and I think uh that point of time like Nicl mentioned the contribution of central optica was less and there of course some payment issues 20:13 20 minutes, 13 seconds especially from couple of discoms as well especially Tangana and Andra even that uh payment has normalized now right 20:20 20 minutes, 20 seconds uh even from the is that the effect that we've seen in the trade receivables which have gone down 13% year on Yes. 20:29 20 minutes, 29 seconds Yeah. Yeah. Actually that you know uh that there was a regulatory reform which was government has implemented called 20:35 20 minutes, 35 seconds LPS right under that LPS late payment search charge scheme. Two three states were which were delayed actually because 20:43 20 minutes, 43 seconds of the various regulatory issue there were there some court cases in Andhra Pradesh all those dues are now settled and they're paying on time because this 20:51 20 minutes, 51 seconds LPS scheme is very strict. If they don't pay on time, you inform to capi portal and they will get disconnected from the power. So this discipline is helping 20:59 20 minutes, 59 seconds especially for the state project. But mostly now we what has happened are our projects are central projects. So 21:07 21 minutes, 7 seconds central projects technically they are paid in just six seven days because they want to take a cash discount. 21:15 21 minutes, 15 seconds Understood. Thank you so much. Thank you. 21:22 21 minutes, 22 seconds Next question is from line of Anikit Mal from SBI mutual fund. Please go ahead. 21:27 21 minutes, 27 seconds Nice. Thank you. Um first question was just on the cash flow. Um so when I look um at the cash flow statement, they're 21:35 21 minutes, 35 seconds seeing a very large increase in the non-current assets um and some other balance sheet items which is impacting the cash flow from 21:43 21 minutes, 43 seconds operations. Just wanted to understand that. 21:49 21 minutes, 49 seconds So they are mean an could you point out which are the which number you're referring to and 21:56 21 minutes, 56 seconds what is the number? So if I look at the non-current assets in the balance sheet so I was looking at the cash flow statement cash flows from operations 22:05 22 minutes, 5 seconds have come in lower on a Y basis partly I think because the base for last year was higher but when I look at the balance sheet there's been a sharp jump in the 22:13 22 minutes, 13 seconds other non-current assets and also on the other financial non-current assets um so just trying to understand what is 22:22 22 minutes, 22 seconds mainly because of the capex buying which is happening so Uh the these are mainly it mainly include the capital credits actually. 22:31 22 minutes, 31 seconds Okay. So and what is the capital advances number then? 22:36 22 minutes, 36 seconds The capital advances of uh 22:47 22 minutes, 47 seconds just roughly 323 course. 23:05 23 minutes, 5 seconds Okay. 320 and this is this is pertaining to what? Like 23:10 23 minutes, 10 seconds so uh this advances basically given to for the procurement of material which 23:18 23 minutes, 18 seconds has been given to various uh and and that the material will come in over a period of time. So these advances have been given to them. Maybe a partial advance let's say 10% 20%. 23:28 23 minutes, 28 seconds Let's say uh battery uh contracts we have typically 10% advance up front where we get a bank guarantee against it. Similarly the turbines also we give 23:37 23 minutes, 37 seconds 20% advance. So these are capital advances uh you need to give to supplier where they give a give you a BG against that. 23:44 23 minutes, 44 seconds Got it. This is largely because of battery and probably some weight. Okay. 23:49 23 minutes, 49 seconds Yeah. Yeah. on services and domestic procurement. Typically we don't give any advance but from a international procurement perspective and large 23:56 23 minutes, 56 seconds equipment uh we have to because it helps you to bind the supplier also uh in terms of the uh contract honoring and uh 24:04 24 minutes, 4 seconds and also giving him advance to purchase raw material because if you don't pay advance he will not have money to purchase the raw material. 24:12 24 minutes, 12 seconds Okay. And um when I look at the pl number on a y basis I see a 1% decline. 24:18 24 minutes, 18 seconds Uh what's the reason for that for this quarter? 24:28 24 minutes, 28 seconds For this quarter an uh could be a function of of course the uh lower radiation or and cartilagement. These 24:35 24 minutes, 35 seconds these two could be the only two factors which would have impacted on a yi basis. 24:39 24 minutes, 39 seconds Of course the larger capacity it is a larger capacity. So of course the denominator uh is higher but uh these are the two uh only factors because it 24:48 24 minutes, 48 seconds is determined by seasonality as well. So these are the factors in terms of we can give you a sidebyside I think uh 24:55 24 minutes, 55 seconds analysis uh but broadly it is uh it is because of these factors. 25:01 25 minutes, 1 second Fair in the presentation within the under construction portfolio I also see a merchant of 654 megawatt hour. Um are 25:11 25 minutes, 11 seconds we putting some books purely on a merchant basis? What does this put into? 25:17 25 minutes, 17 seconds Actually it is it is uh merchant as of now uh it is it is uh slated to go to a PPA uh which we are supposed to sign 25:25 25 minutes, 25 seconds very shortly. U most likely because it is pure battery uh which is taking uh power from the grid and giving to the 25:33 25 minutes, 33 seconds grid. uh it it can be fitted in any of these peak power projects uh PPA we have which we have not yet signed uh with a 25:40 25 minutes, 40 seconds tariff of either 6.28 or or uh similar and there are a lot of bids coming in where we can uh deploy this best it 25:48 25 minutes, 48 seconds gives us some flexibility and we also wanted to uh get it financed on a merchant basis because it gives us some flexibility uh in terms of getting ready 25:57 25 minutes, 57 seconds uh for a early installation uh because it does not tie you to a specific PPA. 26:01 26 minutes, 1 second So in terms of the financing and in terms of the uh early commissioning uh we we've uh we have installed it uh like 26:09 26 minutes, 9 seconds this uh but of course it will go to a PPA. 26:13 26 minutes, 13 seconds Okay. And and on for for FI27 um how are we placed in terms of the commissioning of the SGB and FDR project and the NTPC hybrid project? 26:25 26 minutes, 25 seconds Right. So uh there are on the whole commissioning during the year I would like to uh explain uh there are uh 26:32 26 minutes, 32 seconds neutation which will be the first uh uh commissioning from our side uh because that's the substation which is more or 26:40 26 minutes, 40 seconds less ready uh and it is will be charged in June uh because you know the commissionings are uh determined by u uh the FDR commissioning since you are 26:49 26 minutes, 49 seconds asking they are determined by the uh solar connectivity being ready. So uh that's that's where the uh that is on the uh that will commission our two 26:58 26 minutes, 58 seconds plants. One is the NHPC and another is the Tata. So that is the first commissioning from our side on the FDR. 27:04 27 minutes, 4 seconds Then of course there's a substation at Fatigar which will have the SGV and whole 570 that has a short-term open access available right now. The 27:12 27 minutes, 12 seconds long-term open access as per CTU is in uh March 27. So the full FDR uh for SGVN 27:19 27 minutes, 19 seconds but uh will be ready by uh FI27 end. So that's the FDR and the NTPC we are ready 27:26 27 minutes, 26 seconds with the solar uh so uh uh but of course there is a long-term open access there also which is slated to be commissioned 27:32 27 minutes, 32 seconds by December 26. So uh and our pura wind component is also ready but that is also slated for you can say uh uh couple of 27:42 27 minutes, 42 seconds quarters later. So by March 27 all this will be commissioned. In terms of the other commissionings we are targeting 27:50 27 minutes, 50 seconds there is Pavagara Anandpur which are also going to come up during this year as per the CTO timeline. What we are trying to do is commission the batteries 27:58 27 minutes, 58 seconds at our operational substations uh in Fatigar 1 which we have a,000 megawatt. 28:02 28 minutes, 2 seconds Then Fatigar 2 which is uh again uh the fatigar one sorry is 1200 megawatt. 28:07 28 minutes, 7 seconds Fatiger 2 is 1,000 megawatt where we have a SDA in ST you can transmit all the battery. So these uh and then we 28:15 28 minutes, 15 seconds have behanate 3 again where bay is ready so you can transmit the battery power and and of course uh uh so so these uh 28:23 28 minutes, 23 seconds you can say around aggregating to around 2500 megawatt of uh ready connectivity for selling battery power during night 28:31 28 minutes, 31 seconds is what is ready with us from where we are trying to transmit 10 gawatt hour of uh battery uh during the uh next of the calendar year. So in terms of 28:39 28 minutes, 39 seconds commissionings, so the battery commissionings are going to happen early because we have ordered uh battery the battery is arriving every month and also 28:48 28 minutes, 48 seconds in parallel as and when the CTU uh substations are getting charged we will commission the solar also. uh in terms of the preparedness uh the transmission 28:56 28 minutes, 56 seconds line uh the balance of system the equipment delivery they are all on track uh and we are trying to co- terminus 29:03 29 minutes, 3 seconds with the uh CTU uh timelines of the substance and we want to also want to prep our revenue from the battery sales because the from the power sales through 29:12 29 minutes, 12 seconds nighttime power which is now allowed as per uh the PPA construct and as per the uh clarification given by Minari. So we will have we will see a good jump on the 29:21 29 minutes, 21 seconds revenue side because of uh the nighttime installations which will more than compensate for you can say the CTU uh uh 29:28 29 minutes, 28 seconds timelines getting shifted from one quarter to another. Uh so that is the reason we have preponed the battery installation. Uh and and we are 29:36 29 minutes, 36 seconds commissioning it at the operational substations and not in the green field substations. That is the a key uh thing and we have 2500 megawatts of ready 29:43 29 minutes, 43 seconds substations and connectivity which are going to uh go uh live uh in the in the near future. 29:51 29 minutes, 51 seconds What would be our battery um total installed base let's say 6 months down the line and one year down the line. 29:59 29 minutes, 59 seconds So 10 gawatt hour is our uh total target. uh and of course it is completely dependent on a number of factors uh in terms of the uh supply of 30:08 30 minutes, 8 seconds material in terms of the connectivities but as far as connectivity is concerned uh we we can do this 10 gawatt hour because we do have the connectivities uh 30:17 30 minutes, 17 seconds we do have the financing available uh we do have the supplier type available but of course uh in terms of the various uh 30:24 30 minutes, 24 seconds factors which uh which are interplay in terms of the supply of material in terms of you can say geopolitical factors those are the only uncertainty ities but 30:32 30 minutes, 32 seconds as far as the CTU linked is concerned and as far as the uh other dependencies go it has much less external dependencies than you can say a CTu connected solar plant. 30:43 30 minutes, 43 seconds Got that. I I'll join back um in queue for further questions. Thank you. Thank you. Thank you. 30:50 30 minutes, 50 seconds Next question is from the line of Isan from Antic Stock Broking. Please go ahead. 30:57 30 minutes, 57 seconds Yeah. Uh good morning sir. Thank you for taking my question. uh CNC has recently proposed a new mechanism uh for all 31:05 31 minutes, 5 seconds based connectivity. So wherein the the capacities have been delayed for one year there there is a surrendering of 31:14 31 minutes, 14 seconds exit option for those connectivity. So I just wanted to know how much of connectivity inventory falls under this 31:21 31 minutes, 21 seconds and what is your strategy to uh basically convert it. 31:27 31 minutes, 27 seconds Right. Right. Right. No, that's a very uh welcome move from CRC which CRC has done. It's a discussion paper right now 31:34 31 minutes, 34 seconds and they they will formalize it uh after getting comments from all. So that's a good move. uh in terms of uh how it will 31:42 31 minutes, 42 seconds work is uh if you are not able to sign PPAs uh for for a certain amount of LOA and you have been and and the uh 31:50 31 minutes, 50 seconds renewable energy implementation agency really clarifies that these PPAs cannot be signed uh then of course that developer is free to develop it in a 31:58 31 minutes, 58 seconds merchant basis or free to use it in another LOA. As far as we are concerned uh you know uh we have around 62 gawatt 32:06 32 minutes, 6 seconds of signed PPA which we are constructing uh and uh so which is a very sort of uh so our LOAs are more or less converted 32:15 32 minutes, 15 seconds into PPA 3.2 uh yeah in terms of the uh construction three if you remove the three operational for us we have 3.2 gawatt of 32:23 32 minutes, 23 seconds LOA which have converted into PPA uh which we are constructing there is 1.8 8 GW of uh PPAs we have won recently and 32:31 32 minutes, 31 seconds there are some which are older you can say around uh around uh uh 850 megawatt of older PPAs uh which are in various 32:39 32 minutes, 39 seconds stages of uh discussions uh but we we are not anywhere near to that timeline where we the RIA will say that uh right 32:48 32 minutes, 48 seconds PPA will not be signed because they are trying their best and all the agencies are trying their best to get it signed. 32:53 32 minutes, 53 seconds uh there are various discussions at various forums to get it signed. But just in case if uh if this happens, these will be for us our strategy will 33:00 33 minutes be to uh to use them for future bits uh and uh or to use them for uh you can say 33:07 33 minutes, 7 seconds uh for for uh uh for a battery connected projects uh in future. So we will use this connectivity in any case because we 33:14 33 minutes, 14 seconds have a good pipeline of PPS where there is lot of bits which are coming which are now backed by a solid demand from 33:21 33 minutes, 21 seconds states like a uh thermal mimic uh which is coming which will require large amount of uh uh capeex and large amount 33:28 33 minutes, 28 seconds of solar and battery. So and and there are a lot of uh other uh bits which are coming uh which we will use the connectivity for. So we will keep the 33:35 33 minutes, 35 seconds connectivity with us uh and we don't foresee that our LOAs will uh we will have to surrender uh but just in case it 33:44 33 minutes, 44 seconds happens we will have a uh backup plan ready by then. 33:48 33 minutes, 48 seconds Got it. That's very clear. Uh just to follow up on that and um on the industry level only uh we have seen like around 33:55 33 minutes, 55 seconds three 3 plus gawatt of EPA conversion from LO capacity and overall of the industry there was a huge build up of LO 34:03 34 minutes, 3 seconds capacity. So how what do you see like discom uh what what types of capacity are the discom preferring to convert 34:10 34 minutes, 10 seconds from lo to PPA and also what is your overall view on the rearing momentum in FY27 given the peak demand is growing 34:19 34 minutes, 19 seconds strong right so the uh the good thing is uh the because of the huge amount of bids which 34:27 34 minutes, 27 seconds they did of course more than the demand u most of the developers have a sizable uh PPAs to execute and and that is 34:35 34 minutes, 35 seconds giving everybody a sizable uh you can say uh capeex opportunity or a revenue opportunity. Uh and of course there are 34:43 34 minutes, 43 seconds lot of unsigned PPAs. Uh so in terms of the PPAs getting signed and demand coming up there is a demand for peak power. So nothing uh which does not have 34:52 34 minutes, 52 seconds a battery uh is is hard sell uh as far as the uh states are concerned. So everybody needs some amount of peak 34:59 34 minutes, 59 seconds power at least if not four hours at least 1 hour 2 hour so something which and and if if not uh uh so plain solar 35:08 35 minutes, 8 seconds is the hardest to sell right uh but some states uh have a typical demand for solar because they are putting up their PSP or they are putting up their u uh 35:16 35 minutes, 16 seconds their thermal is bit some distance away so very few states have a plain solar demand so in terms of the packing order you can say peak power is selling 35:23 35 minutes, 23 seconds fastest uh the partial peak power is second, second, fastest and then the uh wind is selling well uh but wind 35:31 35 minutes, 31 seconds opportunities are very less and people are doing less wind and the solar is selling the slowest. In terms of the bids for this year, we see that the bids 35:39 35 minutes, 39 seconds will be lesser than last year but uh the PPS should be uh faster again because they are not doing bids until the 35:46 35 minutes, 46 seconds previous ones get at least allocated or signed in some way. Uh so that is and the RIA is one. So focus will come in 35:53 35 minutes, 53 seconds terms of uh there is only SEI which will now be aggregating demand. So they'll have some sort of you can say aggregation power uh which being a sole 36:01 36 minutes, 1 second entity gives them uh in terms of the with the states. Uh so they are aggregating demand for uh let's say the thermal kind of tender or or peak power 36:10 36 minutes, 10 seconds tender or a CFD tender which is which will find takers because that is purely basis demand. They are doing wind tender. They're doing PSP tenders. There 36:17 36 minutes, 17 seconds are at least 5 GW of tender currently open from with SEI which has uh which is one 2 GW of wind around some 1 G of PSP. 36:26 36 minutes, 26 seconds Then there is this uh thermal mimic there is CFD. So uh so so you will see 36:33 36 minutes, 33 seconds bits of a level of 15 to 20 GW. Uh of course this can change depending on uh the shortage this year. So uh the states 36:40 36 minutes, 40 seconds can change their uh behavior. uh and not all states can afford to do state level bids because there little uh renewable 36:48 36 minutes, 48 seconds in some states. So they'll continue to buy from SEI because of the competitive rates uh which uh these uh go and also 36:55 36 minutes, 55 seconds there are some states which will do uh on their own where also they'll be successful uh like southern states or or 37:03 37 minutes, 3 seconds Maharashtra or you can say Gujarat. So, so there also you'll see some growth and bids coming up. Uh like UP recently 37:10 37 minutes, 10 seconds called for a bid wherein they called for a peak power in their own uh where you could charge from anywhere in the country but the battery installed in their place. So those kind of bits you 37:18 37 minutes, 18 seconds will see uh so lot of uh lot of peak power uh is peak power is the something which everybody wants. So bits focused around that will be successful. 37:30 37 minutes, 30 seconds I would like to add here that uh that uh although the bit size will be one is big capacities in next year this year adding 37:38 37 minutes, 38 seconds state and ki will be 20 to 30 gawatt but the overall solar or overall the capacity requirement will be higher than the last year because what is going to 37:47 37 minutes, 47 seconds happen in the plain manila source the solar you need 3 4 cr 4 cr per megawatt but the current bid which is happening 37:55 37 minutes, 55 seconds for example mimicking the um thermal power or mimicking that long 38:03 38 minutes, 3 seconds or duration storage solar storage they will be actually they will carry a very large solar behind the battery. So 38:11 38 minutes, 11 seconds technically maybe 25 to 30 gawatt will technically mean solar of 40 50 gawatt. 38:17 38 minutes, 17 seconds So overall if we see that the name of the actually configuration of the cap procurement will change but deployment of solar will remain 40 to 50 gawatt. 38:31 38 minutes, 31 seconds Just to add here even if you look at the CRC connectivity rules when they have asked to put batteries they have made it 38:38 38 minutes, 38 seconds mandatory to put solar uh in the 3 years uh once you take a connectivity. So the solar is mandatory to be installed if 38:46 38 minutes, 46 seconds you are taking connectivity under certain uh guidelines like 5.2 regulation. So they they also want their uh connectivity to be appropriately 38:54 38 minutes, 54 seconds utilized. So you'll see battery in uh linked solar installations coming up very fast and pure battery installations will be very less. 39:02 39 minutes, 2 seconds Yeah sure. Uh just one last question on the standalone battery. uh uh just know 39:09 39 minutes, 9 seconds what is our you know IR accepted IR from that 550 megawatt project and what is the end of the life value for the BSS in that particular project. 39:22 39 minutes, 22 seconds So the 550 megawatt hour project uh is is currently um uh basically the tariff is uh is uh adopted with a caveat. So it 39:32 39 minutes, 32 seconds is not yet started. Uh but uh in terms of the uh uh uh in terms of the IR for 39:39 39 minutes, 39 seconds that project you were asking IR is in again uh in terms of mid to high teens uh for that uh project uh because there is not much transmission infrastructure 39:48 39 minutes, 48 seconds to be put. It's a 33 KV uh level installation and uh uh but but the zero date for that project has not started 39:55 39 minutes, 55 seconds for us. So we have not really finalized the capex because uh the state regulator has really asked that u uh on the 40:02 40 minutes, 2 seconds trading margin of NHPC because in this case uh it's a pure leasing and they are getting a VGF. So uh it is it is uh in 40:09 40 minutes, 9 seconds terms of the whether they should get a.5% margin or or a 7 pesa margin. So that is being debated. So it is zero data has not yet started for us. We'll 40:18 40 minutes, 18 seconds uh be able to update you once the zero date has started. But broadly uh we are telling you the bid return when we bid it. And also in terms of the end of life 40:27 40 minutes, 27 seconds uh assumptions these uh batteries are basically slated to run for 8,000 to 10,000 cycles. Right. Uh so in terms of 40:35 40 minutes, 35 seconds I think that depends on the PPA. It's a single cycle or a double cycle. I think it's a single single cycle or a double 40:41 40 minutes, 41 seconds cycle. depends on it's a very small project in the overall portfolio because 40:48 40 minutes, 48 seconds this is 550 megawatt hours but correspondingly for other projects that we have which are 5 G construction that 40:55 40 minutes, 55 seconds will require installation of around 17 G of battery. So it's more just like the small project that you're talking about. 41:03 41 minutes, 3 seconds It's more like a leasing model wherein you are not putting any generation source. You're just storing the power which is you are getting from the dis 41:10 41 minutes, 10 seconds from the discom and then you are just discharging the batteries. So those are the bits we have uh it's a one bit uh out of the overall portfolio of 8 g 41:18 41 minutes, 18 seconds hour. So we are not focusing at all on uh those bits and uh so so and uh like 41:25 41 minutes, 25 seconds Ankit mentioned uh the the the batteries which are part of the overall solar wind and uh FDR mix the peak power mix those 41:34 41 minutes, 34 seconds uh will be you can say 99% of the GE this is less than 1% of the GP got it sir thank you those are my 41:43 41 minutes, 43 seconds questions thank you next question is from line of roof Machel from HTCMC please go ahead. 41:51 41 minutes, 51 seconds Uh yeah sir thank you so much. Uh so if I look at your gross block uh increase for the year it's about 3,400 crores y 41:58 41 minutes, 58 seconds approximately uh what you have reported and your run rate would have increased by about I think uh 300 odd crores 42:07 42 minutes, 7 seconds uh y so it was 1 1700 kores last year and it's about 2,000 crores this year. 42:12 42 minutes, 12 seconds So uh the gross block to beta run rate is about 11x which is very worse off versus what you typically do. Uh I'm just trying to understand what am I missing here. 42:28 42 minutes, 28 seconds So gross block has increased by yeah uh around 3,000 odd crores uh right in terms of the capitalization right. So in 42:36 42 minutes, 36 seconds terms of the uh what you are seeing not seeing is uh the uh you can say the uh wind wind has not really started 42:44 42 minutes, 44 seconds performing uh first of all because wind is got installed in the in phases and yeah but that's included in your run 42:52 42 minutes, 52 seconds rate aid of 2,000 odds right no no uh see the run rate aida uh is uh basically in terms of the last month uh 43:01 43 minutes, 1 second it it basically got commissioned at the end of the I think it got commissioned at the end of per year and uh so run rate abida is what you're 43:08 43 minutes, 8 seconds talking about is the reported a bit or the run rate a bit the run rate abida so in Q3 a reported run rate a bit of about 2,100 I think largely all your projects were 43:17 43 minutes, 17 seconds commissioned by then uh including the probably small portion was remaining so or is it probably the gross block number 43:26 43 minutes, 26 seconds includes the battery which was commissioned by the end of the year for which the generated bita is not part of it definitely includes uh it definitely 43:33 43 minutes, 33 seconds includes the we can give you the commission projects uh for the full basically the run rate aida uh is for 43:40 43 minutes, 40 seconds the 12 months number we have uh I think so we don't have that number in this year because these uh the whole gross 43:48 43 minutes, 48 seconds block will not be operating for the 12 months so so out of this 3,460 cr roughly uh 1,000 to 1100 is related to battery with 43:57 43 minutes, 57 seconds ah okay I think that explains yeah yeah yeah that so that explains it very well so th000 if I remove thousand that's the uh your gross block is increased by about 2,300 and that explains it. 44:08 44 minutes, 8 seconds Yeah. 44:08 44 minutes, 8 seconds Got it. So, perfect. So, the second question is on the uh MRE clarification that you highlighted. Now, does it mean that for a FDR project if you're 44:17 44 minutes, 17 seconds commissioning a battery early uh the charging of the battery can happen through a non uh through a conventional 44:24 44 minutes, 24 seconds power um which is now allowed. Is that the approval which we have got or the regulation which has changed? 44:32 44 minutes, 32 seconds Yes. uh it is allowed to be sold in uh in the merchant. Basically, it is allowed to be sold outside of the uh because since it's a non-renewable 44:41 44 minutes, 41 seconds power, you can sell it outside the um to to your uh not to your optaker to anybody you you want till the time you 44:48 44 minutes, 48 seconds have not installed renewable uh behind the battery. It is not a renewable power. So, it is that is the clarification they have uh explained 44:55 44 minutes, 55 seconds which was already part of the PPA but they have clarified it. 44:58 44 minutes, 58 seconds Got it. So, for example, for an FD project. Yeah. 45:02 45 minutes, 2 seconds No, no, just I would like to add it here that even if you have installed the solar panel if you have not connected with the battery for example if your D 45:11 45 minutes, 11 seconds if your LT L if your LTA is not right now operational you most of our projects are actually connected with the 45:19 45 minutes, 19 seconds brownfield of power gate substation that means we can energize the our transmission line we can energize the 45:27 45 minutes, 27 seconds project well before our uh connectivity timeline or our TPA timeline. What we are doing is actually 45:34 45 minutes, 34 seconds we are installing the solar and we are installing the entire power generation also but we are not 45:42 45 minutes, 42 seconds connecting it because the moment we connect it it will be treated as the part of FDR because the right now in the summer the price is very good. We are 45:51 45 minutes, 51 seconds not connecting that we are just connecting the battery and charging from the grid and selling it. Got it. 45:56 45 minutes, 56 seconds That is giving us a very good return. So we are we are doing purposely but the day that COD uh timeline comes in LTBA 46:03 46 minutes, 3 seconds LTA uh date comes in the whole thing will get integrated and go. Got it. 46:10 46 minutes, 10 seconds Yeah. And and we are differing the cipex also on the solar side because it is not doesn't make sense to call modules at site and keep them here because what we 46:18 46 minutes, 18 seconds are doing is we are differing the uh solar part of cex. We are not installing the modules. uh we because of course uh 46:26 46 minutes, 26 seconds you can get it cheaper you can get the cheaper merchant power from exchanges and and also the interest during construction is saved so there is no uh 46:33 46 minutes, 33 seconds reason to do a solar capex uh until your LTO is operational so we are referring that also which is helping us uh improve 46:41 46 minutes, 41 seconds our returns sure last question is uh you mentioned about the commissioning target of your generation assets for this year uh you 46:50 46 minutes, 50 seconds but if you can give the number what you're targeting to commission based on of generation assets based on whatever transmission visibility you have in megawatt terms. 47:00 47 minutes So we are targeting 1.5 G of uh projects uh in this financial year right and around 10 G of battery. 47:08 47 minutes, 8 seconds So this 10 G of battery may be for those uh projects which are not included in this 1.5 because for 1.5 it will be 47:16 47 minutes, 16 seconds maybe 5 G but we are charging the battery ahead of time. All right. Yeah. Perfect. Great sir. Thank you so much and all the best. Thank you. 47:24 47 minutes, 24 seconds Thank you sir. Thank you. Thank you sir. 47:27 47 minutes, 27 seconds Next question is from the line of Duven Sha from HDFC Securities. Please go ahead. 47:33 47 minutes, 33 seconds Yeah. Hi sir. I think uh my question was answered in the previous question but uh I just wanted to clarify the 10 gawatt that you said we are planning to 47:41 47 minutes, 41 seconds commission this year. uh how much of it would be on merchant basis and what is the kind of evida margins that we can 47:48 47 minutes, 48 seconds expect on these capacities that operate on merchant basis. That's it. 47:54 47 minutes, 54 seconds Yeah. So see uh uh uh in terms of the uh the all of it will start on a uh other than the uh you can say around 1 1200 48:03 48 minutes, 3 seconds megawatt hour to 1500 megawatt hour which will be commissioned on the FDR format because of the neimat substation which I mentioned earlier. Rest of it 48:12 48 minutes, 12 seconds will be start on the merchant basis in this financial year. Uh because the uh the subsessions will get gets start charging in the f end of the year only. 48:21 48 minutes, 21 seconds Uh so you will see around 8 and 1/2 gawatt hour out of this 10 gawatt hour would be on uh merchant and 1 and a half gawatt hour would be in the fd format. 48:32 48 minutes, 32 seconds In terms of the aida realization Ankit I'll request you do. Right on the with the margin loop it's a function of at what cost you are procuring and of 48:40 48 minutes, 40 seconds course at what price you are selling but uh assuming you know a tariff arbitrage of 6 rupees which means selling the 48:48 48 minutes, 48 seconds power at 8 rupees which of course more than that that we are currently seeing and purchasing the power at 2 rupees so give or take the margin will be around 48:55 48 minutes, 55 seconds 75 to 80%. Ba margin all right that was very impressive. Thank you. Thank you. 49:04 49 minutes, 4 seconds Thank you. 49:06 49 minutes, 6 seconds Next question is from the line of Hal Jalan from Lotus Well. Please go ahead. Hello. Thank you for taking my question. 49:15 49 minutes, 15 seconds So sir, in the first slide for under construction portfolio a total of 3,28 plus 49:23 49 minutes, 23 seconds sorry to interrupt you're sounding distant. Can you come closer towards the four and talk? Am I audible now? Yes, go ahead. 49:31 49 minutes, 31 seconds Yeah. So my question is that in the first slide for under construction portfolio a total of 3,280 megawatt plus 49:39 49 minutes, 39 seconds 1200 gawatt R of best portfolio is given. So by when will this com this be completely commercialized the whole under construction portfolio? 49:50 49 minutes, 50 seconds Yeah there is a second slide also which is which is PPA yet to be signed but on the PPA signed. Yeah. So these will be commissioned by FY28. 50:00 50 minutes We are putting up early like you can mention earlier. Yes. Yes. Okay sir. Thank you. Thank you. 50:07 50 minutes, 7 seconds Thank you. 50:09 50 minutes, 9 seconds Next question is from Lana J from Anandraati. Please go ahead. Uh thank you for taking the questions. 50:16 50 minutes, 16 seconds Couple of questions uh on this best arbitrage that we're talking about you know using conventional power and then discharging at peak demand. How long do 50:25 50 minutes, 25 seconds we see that this arbitrage situation should sustain into the future? 50:32 50 minutes, 32 seconds So this is anybody's guess uh in terms of that uh let me let me let me let me take this 50:39 50 minutes, 39 seconds answer. Yeah, actually right now the current calculation of CA is you need around 200 gawatt hour of battery to 50:46 50 minutes, 46 seconds come to this. If you don't add any more solar but what is happening is also another 40 50 gawatt of FDR and this one 50:54 50 minutes, 54 seconds where the tender has happened they will get added in the daytime. So technically what is happening as long as you are adding more and more daytime solar you 51:02 51 minutes, 2 seconds need a more battery in the evening. So that's a formula right now that formula tells we need a 200 gawatt hour. What has also happened is that the thermal 51:11 51 minutes, 11 seconds power in the evening they have it is already at 6 and a half rupees if you run at full capacity and most of the 51:18 51 minutes, 18 seconds capacity thermal power cannot come up fast and cannot go down. So they operate around 60 70% capacity. So considering 51:26 51 minutes, 26 seconds their capital cost some capital cost in this one they are around 9 and 10 rupees. So battery will remain my my guess is battery will remain at 9 to 10 51:35 51 minutes, 35 seconds rupees in the peak hour time and the and as a country we will need around the two 200 to 300 gawatt hour considering the 51:44 51 minutes, 44 seconds current installation and the plan installation of this year but as and when we are adding more and more solar it will keep on going up. 51:54 51 minutes, 54 seconds So if you look at the last uh history uh if you look at the last few years we have seen that the annual price remains 52:01 52 minutes, 1 second at around 7 7 to 8 rupees. Uh for the last few years even when we have low demand uh in terms of the uh last few 52:09 52 minutes, 9 seconds years we had relatively less demand than before. But even in those slow years we had a realization for peak power for around 7 8 years. But now that the gas 52:17 52 minutes, 17 seconds is a constraint uh it is it is slightly elevated and it is likely to be elevated. So uh and we are seeing some 52:25 52 minutes, 25 seconds uh peak demand which is much much higher than uh last year. So we see that like uh like Manoji mentioned at least for 52:33 52 minutes, 33 seconds around four five years we don't see this going down. 52:38 52 minutes, 38 seconds That's helpful. Uh secondly sir on when you mentioned that you know majority like almost 80% of our projects would be on the CTU uh side of the business 52:47 52 minutes, 47 seconds wanted to understand uh the transmission and distribution angle. uh are we facing lack in terms of substation connectivity 52:55 52 minutes, 55 seconds at the SQ level or the CTU level from an industry perspective and how do you see the projects getting commissioned when 53:02 53 minutes, 2 seconds we shift the portfolio to this 80% mark that we're looking at so see uh in terms of the CTU 53:10 53 minutes, 10 seconds substations uh what happens is uh there is a lot of linkages they they are mostly on time with regards to their local infrastructure regarding bay 53:18 53 minutes, 18 seconds construction and equipment ordering Where they lag is the components relating to transmission line uh interconnection and right-of-way issues 53:27 53 minutes, 27 seconds because of which there is a timeline delay at their end and uh the central transmission utility is in turn dependent on the various uh various 53:35 53 minutes, 35 seconds companies which uh bid for them. So they get a uh timeline basis the uh delay on their part. So the CTU is a very 53:43 53 minutes, 43 seconds structured entity where they keep give you a firm date uh every quarter uh when their subsession is coming up. So as far 53:50 53 minutes, 50 seconds as we are concerned we plan our project basis that declared date because that's the uh obligation on our part to commission the project by that date and we get extension uh till the time that 53:59 53 minutes, 59 seconds uh thing is coming up. So till date they have done a wonderful job of give and take 6 months delay they have done a wonderful job of coming up with the 54:07 54 minutes, 7 seconds transmission capacity and we have also been in sync with that uh let's say a delay of 6 months we also try and sync 54:14 54 minutes, 14 seconds our capeex and sync our work along with that. So as a renewable player uh we can't really function without the transmission. So we have to sync up. So 54:22 54 minutes, 22 seconds uh there there has been a delay but for a grid of this size and scale which is the largest in the world single grid I think there are done a good job. So 6 54:31 54 minutes, 31 seconds months delay is uh I think uh very much uh should be taken in a good light. As far as ST is concerned we are not 54:39 54 minutes, 39 seconds building any projects on STU. Uh the Gujarat project of wind we did was the only project uh we have done on the state grid. There is no project in our 54:47 54 minutes, 47 seconds pipeline other than that battery we are installing on the Andhra Pradesh very small 550 megawatt hour. There is no project on the state grid and state grid 54:54 54 minutes, 54 seconds is a different uh organization structure depends on each and every uh different states are some states are more efficient some states are not and uh 55:02 55 minutes, 2 seconds some states don't have renewable energy potential so they don't really uh develop their grid as much but states like uh Gujarat are quite good I must 55:10 55 minutes, 10 seconds say and of course in terms of getting the transmission up and running on time but it varies from state to states but as far as we are concerned state uh STU 55:20 55 minutes, 20 seconds are not a factor And as far as our uh the the portfolio realization and risk and everything is concerned, CTU is a much better place to be in terms of the 55:28 55 minutes, 28 seconds curtailment and in terms of the uh predictability of uh the subsession coming up on time and in terms of central grants and monitoring uh at every level. 55:39 55 minutes, 39 seconds Got it. And just lastly the so the are project blueprints already uh factor in the six month kind of a delay on a nominal basis. 55:49 55 minutes, 49 seconds Yeah. So what we see typically this can't be generalized this is on a uh this is on a generic overall portfolio 55:56 55 minutes, 56 seconds level but some substations you can say around 60% are on time the maximum delay is typically 6 months in some cases 56:04 56 minutes, 4 seconds because of some unfortunate event it could be more but typically uh some uh like I mentioned our substation is on 56:12 56 minutes, 12 seconds time right some substations are delayed so uh not every substation is delayed but where wherever it is delayed and we know it from How we will not call for our modules. We will defer our capeex. 56:22 56 minutes, 22 seconds What we can do about it? I can tell you what we can do about it. We can defer our sizable capeex of modules because there is no uh because modules are available just in time and there is 56:31 56 minutes, 31 seconds sufficient capacity of that available in India. So we will not call for modules because it's around 60% of a solar plant capex or in sometimes more. So you don't 56:39 56 minutes, 39 seconds do that. You keep the uh service related work ready, the transmission line ready, the substation ready because those are typically you can say 20 25% of the 56:47 56 minutes, 47 seconds overall project cost. But these are long lead items. So you do that. You don't call your modules. You keep your everything uh else ready and and that's 56:54 56 minutes, 54 seconds how you defer the cipex and that is how the industry has been doing and uh syncing up uh with the uh with the power grid or CTU and also you get extensions 57:03 57 minutes, 3 seconds also. The good thing is you don't get any penalty because of the uh delay because of this because uh and that's how the central uh renewal program has 57:11 57 minutes, 11 seconds been running uh because uh the in sync with the grid. 57:15 57 minutes, 15 seconds So just one last question. So there's no risk in such cases then on an there would be no risk in terms of PPS getting not signed or you know getting the 57:24 57 minutes, 24 seconds discounts not uh uh not eager to sign the PPS from the developers perspective. Developers perspective. 57:32 57 minutes, 32 seconds So see uh that's a different question. 57:34 57 minutes, 34 seconds See uh in terms of the uh if you don't have a connectivity there are uh there are two things on PPA signing bit right. 57:41 57 minutes, 41 seconds PPA signing when you go to a discom they look for what is the declared date of your substation right and they look for a declared date of substation getting 57:49 57 minutes, 49 seconds charged in near term right so if you are somebody who has a substation getting charged in 2027 you'll get a better 57:57 57 minutes, 57 seconds priority from a discount because customers have more visibility to your project right because but if you if there is somebody whose substation is coming up in if the connectivity he has 58:05 58 minutes, 5 seconds is for 2029 then he'll get a second priority he'll not get a seat at the table right because the state will say I don't want power in 29, I want in 27. And there are 58:14 58 minutes, 14 seconds certain ISTS wavers also which are expiring in 2028. So this determines your uh attractiveness to the customers, 58:21 58 minutes, 21 seconds right? Uh in terms of the connectivity date, right? So but if they get delayed in future, the states also don't get penalized because they are also part of 58:30 58 minutes, 30 seconds the same uh sync up formula where the ISTS waiver also uh they are eligible for depending on the original date 58:38 58 minutes, 38 seconds declared by CTU. So that's a good regulatory setup where nobody is basically penalized for the delay on beha on on the on the behalf of CTU 58:47 58 minutes, 47 seconds neither the states nor the developer right uh gets penalized because it is something beyond their control right so 58:54 58 minutes, 54 seconds the only thing which which a state needs to take care of when they are signing PPA what is the declared date of that substation right as long as that is 27 59:03 59 minutes, 3 seconds they will get that uh get the same window of ISTS waver which is applicable during that particular year even if the subition gets delayed to 28 and 29. 59:14 59 minutes, 14 seconds Okay. Okay. That's helpful. Thank you so much sir. Thank you so much. Thank you. 59:20 59 minutes, 20 seconds Thank you very much. 59:23 59 minutes, 23 seconds Ladies and gentlemen, that will be the last question for today. On behalf of At Solar Holdings Limited, that concludes this conference. Thank you for joining 59:32 59 minutes, 32 seconds us and you may now disconnect your lights. Thank you.