SJVN LIMITED — Call Transcript 2023

Feb 10, 2023

CIN: L40101HP1988GOI008409

एसजेवीएन �ल�मटेड

SJVN Limited

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(A Joint Venture of GOI & GOHP) A Mini Ratna & Schedule “A” Company

SJVN/CS/93/2023-

Date: 10/02/2023

NSE Symbol: SJVN-EQ BOLT SCRIP ID: SJVN SCRIP CODE: 533206

National Stock Exchange of India Limited BSE Limited Exchange Plaza Phiroze Jeejeebhoy Towers, Bandra Kurla Complex, Dalal Street, Bandra East, Mumbai-400051, India. Mumbai 400001, India.

SUB: Transcript of conference call held with Investors and Analysts to discuss the financial results for the third quarter ended 31[st] December, 2022

Sir/Madam,

In compliance with regulation 30 of Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, kindly find attached herewith transcript of conference call held with Investors and Analysts on Tuesday, 07[th] February, 2023 to discuss the financial results for the third quarter ended 31[st] December, 2022.

Kindly take the above information on record and oblige.

Thanking you,

Yours faithfully,

Digitally signed by SOUMENDRA DAS Date: 2023.02.10 10:19:02 +05'30' 10:19:02 +05'30'

SOUMEN SOUMENDRA DAS DRA DAS Date: 2023.02.10 10:19:02 +05'30' (Soumendra Das) Company Secretary

Encl: As stated above

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पंजीकृत एवं कॉप�रेट काया�लय: एसजेवीएन कॉप�रेट ऑ�फस कॉ��ले�स, शनान, �शमला – 171006 �हमाचल �देश Registered & Corporate Office : SJVN Corporate Office Complex, Shanan, Shimla – 171006 Himachal Pradesh दूरभाष / Tel No.: 0177-2660075, फ़ै�स / Fax : 0177-2660071, ईमेल / Email: cs.sjvn@sjvn.nic.in, वेबसाइट / Website : www.sjvn.nic.in

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“SJVN Limited Q3 FY2023 Earnings Conference Call”

February 07, 2023

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• MANAGEMENT: MR. N L SHARMA CHAIRMAN & MANAGING DIRECTOR - SJVN LIMITED

– – MR. A K SINGH DIRECTOR, FINANCE SJVN LIMITED

ANALYST: MR. RUPESH SANKHE - ELARA SECURITIES (INDIA) PRIVATE LIMITED

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SJVN Limited February 07, 2023

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Moderator :

Rupesh Sankhe :

N L Sharma :

Ladies and gentlemen, welcome to the SJVN Limited Q3 FY2023 Earnings Call hosted by Elara Securities India Private Limited. As a reminder, all participant lines will be in the listen-only mode. There will be an opportunity for you to ask questions at the end of today’s presentation. Should you need assistance during the conference, please signal an operator by pressing ‘*’ then ‘0’ on your touchtone phone. Please note that this conference is being recorded. I would now like to hand the conference over to Mr. Rupesh Sankhe from Elara Securities. Thank you, and over to you, sir.

Good afternoon, everyone. On behalf of Elara Securities we welcome you all for the Q3 FY2023 conference call of SJVN. I take this opportunity to welcome the management of SJVN represented by Mr. N L Sharma – Chairman & Managing Director; Mr. A K Singh – Director, Finance. We will begin the call with a brief overview by the management followed by Q&A session. I will now hand over the call to Mr. N L Sharma for his opening remarks. Over to you, sir.

Thank you. Good afternoon to all. SJVN is here to present its Q3 numbers and the overall nine month numbers to all the investors and analyst present over here. Before I present the numbers, a few highlights. During this quarter Q3, SJVN got the investment approval of its one of the hydro projects in Himachal Pradesh Sunni Dam Hydroelectric project of 382 megawatt, and its estimated cost is Rs.2615 Crores. Cabinet committee on Economic Affairs approved the investment approval of this amount and conveyed this decision, and SJVN awarded the contract to the lowest bidder through a competitive method on January 14, 2023. So this is the addition. As of now we have five hydro projects under construction, one thermal project, and six solar projects. So total 12 generation projects are under construction and two transmission lines, thus making total 14 projects as of now. SJVN has portfolio of 14 projects under construction out of these 14, 12 are generation project and two are transmission projects, and the capacity of generating projects is 4323 megawatt, and projects are under different stages of development.

Now I will come to the numbers for this quarter Q3 of FY2023, and overall nine months of FY2023. For the quarter so for us the numbers in terms of profit after tax are concerned we have positive number. However, there is marginal decrease in the generation. This decrease in generation from overall hydro and renewable projects. The generation if we compare as compared to the last year, generation this quarter is 1394.9 million units, against 1480 million units last year. So there is a decrease of 85 million units, which comes to around 5.7%, there is a decrease in generation. This decrease in generation is because of the lesser rains in the catchment areas of hydro projects, and at the same time marginally lower

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SJVN Limited February 07, 2023

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generation in wind as well as solar projects. So that resulted in decrease in generation. However because of some other changes in the financial number the revenue from operation has slightly increase by 0.2%, last year it was Rs.550.52 Crores during this quarter and this year is 551.67 Crores. So there is increase of Rs.1.15 Crore revenue from operation. So far as total income is concerned, there is an increase of Rs.116.25 Crore that amounts to 19%. The figures of total income during this quarter Rs.723 Crore against Rs.607 Crore last year.

If we come to the figures of profit before tax. The profit before tax has increased by 4.5%, this quarter PBT is 316 as compared to 302 last year. PAT has increased during this quarter by about 25%. The numbers of 290.98 that is almost 291 Crore this year, this quarter against the last year corresponding quarter of Rs.232 Crore. Similarly EPS has also increased, networth has increased from Rs.13581 to Rs.14261 Crore. Generation as I have already explained, so far as plant availability factor of our hydro project is concerned plant availability sector is almost the same as this year as compared to last year. There is marginal increase, it is around 10.22% for Nathpa Jhakri and 109.98% in case of Rampur project this quarter.

So far incentive. In terms of capacity incentives and UI are concerned, there is slight decrease, last year the incentives were to the tune of Rs.74.4 Crores, this year it is Rs.71.89 Crore there is decrease of 3.3% in the incentive.

Now I will share the numbers for the nine months of this FY2023. Revenue from operation has increased by 16%. This year number is 2438 Crore against 2098 Crore last year. Total income, there is increase of 21%, figures are Rs.2715 Crore against Rs.2237 Crore last year. PBT has increased by 11% over a period of nine months of FY2023, the figures are 1501 against last year 1347. So far as PAT is concerns, profit after tax, there is an increase of almost 38%, the numbers are 1349.8 Crores this year compared to 978 Crore last year. So far as generation is concerned, overall generation for the nine months there is an increase of 1.6%, in absolute terms there is an increase of 138 million units and the figures of total generation for the first nine months of FY2023 8458 million units against 8320 million units. So there is an increase of 138 million units during the first nine months. So far as plant availability sector is concerned, it is around 109.8, 109.9 for the Rampur and the Nathpa Jhakri project. So these are the numbers.

Now we are open to the questions of the people present over here in the teleconference.

Moderator :

Thank you very much. We will now begin with the question and answer session. The first question is from the line of Mohit Kumar from DAM Capital. Please go ahead.

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SJVN Limited February 07, 2023

Mohit Kumar : Good afternoon, sir, and congratulations on good set of numbers. The first question is on the status of Buxar and Nepal. Can you just refresh the timeline, which we are expecting and related question is there any update on the PPF on Nepal where we are right now.

N L Sharma :

So far as the status of these two projects Buxar and Nepal is concerned, these projects are almost on the track with some difficulties. In Buxar project there were some law and order issues regarding the land and land compensation issues. So work remained closed because of these law and order issues for about 10 days, and now work activities on the project are resuming. At the time when this took place, the second week of January, the labor at that time about 5000 people on all fronts of Buxar but due to that law and order issue labors fled and now the work started after 10 days now there are almost 2000-2500 labors and we expect that the remaining labors will also come and work in full swing will start, but we are targeting the commissioning of this project by the end of next financial year FY2023 though there are many odds what we are trying to manage the things to our best. Regarding the Nepal project, Nepal project also there are issues, communication regarding the road condition Costal Highway which is the lifeline of the Arun three project we have already taken up the issue of Costal Highway of handing the critical portion of 60 kilometres to SJVN for its repair and maintenance, but we expect that by the end of next financial year by March 2023 we are fixing the target for the commissioning of the project. So far as PPA is concerned, we are in discussion with the different modes to sell the power but anyway that power we were not able to sign PPAs and we have the option to sell the power through power exchange also because with the increased quantum of injection of solar power in the grid the hydro power demand is also increasing. So we can sell the power through open exchange also but at the same time we are trying to have PPAs for the power of Nepal.

Mohit Kumar : So I think the timeline is March 2024 for the Nepal and March 2025 for the Buxar am I right.

N L Sharma :

No, March 2024 for Buxar also both.

Mohit Kumar : March 2024 both the power plant. Okay, understood. The second question is of course you have raised 10 billion for securitization what is the use of proceeds are we thinking of paying more dividend.

N L Sharma : Not at all, dividend we are paying as per the guidelines of the Government of India, but we are using this amount, which we got through securitization for infusion of equity also as well as the requirement of debt requirement in the case various project because 4323 megawatt projects are under construction, which require almost more than 30000 Crore

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SJVN Limited February 07, 2023

investment. So we have used the equity upfront, most of the equity we are utilizing the debt portion and this mode can be used for investment in the form of equity as well as debt also.

Mohit Kumar : Last question. So why the decision to return the money back on Kholongchhu project why are we not part of it.

N L Sharma : Yes. Kholongchhu project was in a JV mode and JV mode that is in 50/50 ratio with one of the PSU's of Bhutan, and the management structure was like this that most of the issues in the management there was equal number of directors from our side and equal number of director from their side and the Chairman was not having the voting right. So most of the issues were just not decided because of some stalemates. So that structure did not succeed and Government of Bhutan was also not comfortable with the JV mode for the long time they were demanding that Government of India should device some other mechanism of management of the project. So ultimately we decided when issues are just hanging in the air and no decision is being taken better to come out of that JV mode, but our equity we have invested along with the interest we got it back. We had invested Rs.240 Crore equity and the interest calculated at the rate of 9% rate of interest it comes to around Rs.114 Crore so the entire amount equity invested along with the interest we got back.

Mohit Kumar : Understood, sir. That is all. Thank you.

Moderator : Thank you. The next question is from the line of Santosh Kumar Khemka, an individual investor. Please go ahead.

• Santosh K Khemka : Sir, I am a shareholder, I along with my son Vinit Khemka. I am a big shareholder of your SJVN. I am happy to observe that an interim dividend of Rs.1.15 has been declared same as last year. I have mainly two queries. In the profit and loss statement of the quarter under item 4, an exceptional item of Rs.17.5 Crores have been stated. What is the exceptional item relate to that is what I want to know.

N L Sharma : Yes. The exceptional item here, one administrative tribunal award has come from Rampur project related, about 33 Crores. In this 33 Crores 17 Crores is interest. So that is why the 17 Crores exceptional item has been included in the P&L segment.

Santosh K Khemka : Another question I have is it has been planned to achieve a power generation capacity of 500 megawatt by December this year, I wish to know which are the projects that will be commissioned to achieve this target by this year end.

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N L Sharma :

Santosh K Khemka :

Moderator :

Aniket Mittal :

N L Sharma :

SJVN Limited February 07, 2023

My target here that is 5000 not 500, it is 5000 megawatt. Right now we have 2100, we have in the last quarter we commenced a 750 megawatt was commissioned or what I told that our tunnel generation project is under construction of 4323 megawatt. What we are still to commission in this financial year which we believe will be commissioned, our Buxar thermal project that will be commenced at the end of the financial year. Similarly 900 megawatt project on three project in Nepal that will be commissioned, and on the other side solar project 60 megawatts of project Naitwar Mori project in Uttarakhand in a couple of months that will be commissioned. So far as solar projects are concerned one of the major solar projects Bikaner solar project 1000 megawatt it will also be completed in the December, January period similarly, Bagodara Solar Power Project of 70 megawatt, and Gurhah and Gujrai project in Uttar Pradesh. Raganesda project 100 megawatt in Gujarat, Omkareshwar floating solar project in Madhya Pradesh. All these will be completed in this financial year and we expect the financial year at 2023-2024 you see our capacity will cross 5000 megawatt.

Thank you, sir. Very nice. Thank you.

Thank you. The next question is from the line of Aniket Mittal from SBI Mutual Fund. Please go ahead.

Thank you for the opportunity. A few questions. One is on Buxar, just wanted to understand I think there is some land acquisition that is pending over there and in turn that has led to some labor issues. If you could just elaborate on that, what is that type of land that we still need to acquire and what is that regarding?

Regarding Buxar for the main plant 1060 acres of land was for the mainland which we have already acquired. But for railway siding and water corridor, the land is around 238 acres land this was under process of acquisition. So all these formalities of acquisitions are completed because land acquisition has to be done by the state administration district authority so that district authority asked for the money to be deposited with them for the land compensation and it is their duty to disburse the money to the landowners. We have deposited all the money which is due with the district administration. So when possession of the land was to be handed over by the district administration to our project, the local people, the land owners they demanded a higher compensation. So we said that we are nowhere in the picture. The compensation has to be determined by the local administration, local authority, district authority and we are supposed to deposit the amount with them and to discuss the amount but local people only a few people came forward to receive the amount, rest of the people demanded a higher compensation. So thereby, there was a law

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SJVN Limited February 07, 2023

and order issue, people tried to stop the work, there were some damages also, they came in mob. So there was confrontation with the police and the local people. So work remained closed for about 10 days and all the labor because local they also threatened the labor most of the labor is also the local people, they were also the part of agitators. So now with the intervention of the state government and the district administration, the law and order position is under control, but the labor in full has not turned up. Now slowly, slowly, gradually they are coming and we are persuading the people that there is no danger they have already got our industrial security force personnel about 100 personnel for the safety and security of the people and now almost 2000 labor have returned and rest of the labor about more 3000 will come in the next week or 10 days. So we are expecting that work will start in with full swing.

Aniket Mittal :

In terms of resolution of this land acquisition how do you see that panning out.

N L Sharma :

Yes the local administration and the state administration intervened, their additional chief secretary revenue visited the site, he interacted with the people and he said that once district collector has announced the award the only remedy is reviewing it by the next higher authority, land acquisition that is higher authority that appeal lies with them so he educated the people and explained to the people you come to that appellate form and state government will look at it sympathetically.

Aniket Mittal :

My second question was on Arun-3 there were certain tower packages within some hilly areas that were yet to be awarded what is the progress on that front and how is the total erection right now on the tower.

N L Sharma :

In the tower that package #1 which is in a hilly area two types of land is involved. One is private land, another is forestland. So progress on both the tranches for the forest land the issue has already reached the highest authority their secretary and they will decide it and approved it and private land things are also in the advanced stage and we expect that by the end of this month we will get the entire land both forest land as well as private land.

Aniket Mittal :

Then we will award those packages.

N L Sharma : Package has already been awarded, but handing over the site, handing over of the site will take place.

Aniket Mittal : The other question was while you did briefly mention on Kholongchhu. You mentioned that there were some stalemate between you and the Bhutan side of the equation could you

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SJVN Limited February 07, 2023

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elaborate on that on what issues was this stalemate being caused that led us to exiting the project itself.

N L Sharma :

There were many issues not one, but culmination of all the issues resulted in the withdrawing of our stake from that company like Government of India approved the investment for this project way back in 2013. So thereafter that company was to be formed JV company. JV company was formed in 2015, then one concession agreement was to be approved by the Government of Bhutan. So there were issues of cross-border trade off electricity. Government of Bhutan had some reservations on the CVT guidelines issued by Ministry of Power Government of India. So that took about 2-3 years that CVT guidelines were revised and because of these CVT guidelines government of Bhutan kept that concession agreement pending for four years. It was matured to be approved by them in the September 2016. But that was ultimately signed in March 2020. So say after three and a half years, so that took some time and thereafter when actual practical issues, when we awarded with different packages. So they put the condition that any contractor who is the lowest bidder had to offload 20% work to their Bhutanese company at the rate which the L1 bidder got. So there were some practical issues that if we give work to one other company or they were demanding in, so interfacing issues were there. So on these issues Government of Bhutan representative in the board they were demanding and the issues even by way of voting could not be solved 4 directors from their side, 4 from our side, there are equal voting and chairman had no voting right and so such issues partly last four five years there was no work at all on the actual construction of the project. Few pre construction activities were there, so both the sides sat together there were bilateral talks also and it was decided that in such a situation when it is 50/50 JV company decision paralysis is there, so better to find out another way of doing the project.

So we also though that we are no short of business, SJVN has many projects in its kitty so why to keep this equity idol there and without any decision. We had infused 240 Crores equity, so with the permission and consent of the Government of India and the Government of Bhutan also agreed that better we quit and find out other way of doing the project. So that was the reason. So these were only two issues, but there were many other smaller, smaller issues which culminated into such a decision.

Aniket Mittal :

N L Sharma :

That is helpful. Just to follow up the 9% compounding interest was a clause within the JV contract itself is it.

I think there was not the clause, because 9% was not written there. So we just worked on different modalities of interest, it was decided that given the equity will be returned with

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SJVN Limited February 07, 2023

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reasonable rate of interest. So one possibility was that whatever interest we got for our surplus funds in our company one was that, that comes around 7% to 8% here. What other benchmark was that the Power Finance Corporation or RAC which were funding other projects in Bhutan also at what rate. So that rate was found out and that reasonable was founded 9% and that too compounded.

Aniket Mittal :

The other question was with respect to Naitwar Mori. Have we signed the PPA.

N L Sharma :

Not yet.

Aniket Mittal : So more likely because you mentioned that Naitwar Mori should be commissioned in a couple of months.

N L Sharma : Yes. We will commission, we are targeting by the end of March. So until unless the PPA is signed with any DISCOM or any other utility. We can sell the power through open exchange also.

Aniket Mittal : Just one last question. If I look over the past three months you won a fair amount of renewable projects, I think that is the MSEDCL 200 megawatt, I think also one in the REMS. If you could give broad ideas for the three or four projects that you won in terms of the capital cost involved and the PLF that you are looking from this project that would be helpful.

N L Sharma :

At PLF we are looking at around 24% to 25% PLF. So far our investment in these projects is concerned, for this Floating Solar Power Project is 105 megawatt in Maharashtra and the tariff is Rs.2.90 then other project Floating Solar Project in Madhya Pradesh that is to Omkareshwar project that is 83 megawatt and Omkareshwar tariff is 3.26 but we have yet to get ratification from the state electricity regulatory commission. So far as Maharashtra project is concerned, Maharashtra the tariff is Rs.3.93 it is not 2.93, Rs.3.93. MP the tariff is Rs.3.70 then again solar power project in Maharashtra Ground Mounted the capacity of 200 megawatt the tariff is Rs.2.95. We also got one wind project 100 megawatt wind project the tariff is Rs.2.90. so these are the few projects which we got during the last couple of months.

Aniket Mittal :

Sir what would be the capital cost let us say the 100 megawatt wind project.

N L Sharma :

100 megawatt project will be around 650 to 700 Crore that is yet to be determined we will issue the bid tender and through competitive bidding that will be determined. But tentatively it is between Rs.650 to Rs.700 Crores.

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SJVN Limited February 07, 2023

Aniket Mittal : Thank you those were my questions.

Moderator : Thank you. The next question is from the line of Divya Daga from Vijit Global Securities Private Limited. Please go ahead. Divya Daga : My question is related to solar power projects for better understanding. Can you explain me what is the operating margin of solar projects. Because as I saw the hydro projects have a margin of around 70% to 80%.

• N L Sharma : What is your question for the solar project what is the…

• Divya Daga : Operating profit margin what are the expenses and what is the margin we are getting out of that.

• N L Sharma : Thought I am not ready with the figure, but operating margin will be around, I think 60%.

• Divya Daga : Can you explain me how much is the sales realization per megawatt from solar projects.

• N L Sharma : See, it is in terms of energy, so it is around 25% then 1 megawatt project will generate what 2.5 million units of energy. So there is per unit of energy and the tariff is competitive bidding. So whatever the capacity we installed and energy will be sold at that rate that again see is that DISCOM or with the respective state government or any agency will sign a PPA and that will pay us at that rate. So far as return on equity, equity IRR is concerned that is in between 10% to 12% about 13% for these solar projects.

• Divya Daga : What will be the sales realization from the 75 megawatt plant that we have commissioned in October.

• N L Sharma : Yes that 75 megawatt project Parasan Solar Power Project total is 42 Crores.

• Divya Daga : Can you explain me the four projects that you have told you have transferred to SJVN what are those projects.

• N L Sharma : These are like this Parasan, Parasan which was allotted SJVN parent company now we are transferring it to SJVN and then the Bikaner solar project that also will transfer to SJVN then Gurhah and Gujrai in UP and Bagodara also, Bagodara in Gujarat.

Divya Daga : Okay sir. Thanks so much.

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SJVN Limited February 07, 2023 Moderator : Thank you. The next question is from the line of Apoorva Bahadur from Goldman Sachs. Please go ahead. Apoorva Bahadur : Hi! Sir, thank you for the opportunity. Sir, wanted to understand for the solar project the EPC ordering which we do. Does that have a module cost pass through or it includes module cost.

• N L Sharma : In solar project there is no concept of pass through, because you will have a cost plus tariff, it is a tariff based competitive bidding. So whatever costs is there that is totally to be borne by the company and we have done the business exercise back-to-back basis for this project how much costs including modules or balance of plant in that. So there is no concept of pass through items in EPC solar project, tariff based competitive bidding projects.

• Apoorva Bahadur : Sir, I apologies in case, I mean, I was not very clear. I wanted to know that the orders which we have given to the various EPC developers for setting up these solar projects. So in case if there is a change in the module price will the benefit or the cost of that come to us or will the EPC developer bear it.

• N L Sharma : That EPC developer will bear the cost whether there is increase or decrease in the cost it is on the account of EPC developer.

• Apoorva Bahadur : Okay sir, understood. Secondly there are a couple of hydro projects with us without any PPAs. So do we intend to utilize those for blending with our solar and sort of giving around the clock type of participating around the clock tenders?

• N L Sharma : Yes, we are keeping all the options open we are just weighing the dynamics in the power trading market whether it is appropriate to go for PPA or whether for RTC power we keep this power available and we can go with a hybrid model partly it is long-term PPAs and partly keeping it open for the RTC power.

• Apoorva Bahadur : Okay sir, understood. Thank you so much.

• Moderator : Thank you. The next question is from the line of Pramod Dangi from Unifi Investment Management. Please go ahead.

• Pramod Dangi : Thanks Sharmaji. So two questions. One is on the dividend, while our profit for the nine months have increased significantly year-on-year we have kept the dividend same. So any thought like how our dividend policy will be going forward and will it maintain at the same rate or it will increase with the new project coming on online will we increase the dividend.

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SJVN Limited February 07, 2023

N L Sharma :

• Yes. So far as dividend is concerned, this is the interim dividend and final dividend we will see before that annual general meeting, keeping in view all the aspects the requirement of capacity expansion then at the same time the guidelines issued by Government of India regarding the payment of the dividend, but this is assured that we will at least pay what is required under the Government of India guidelines 5% of net worth or 30% of the PAT. We will surely meet that guideline.

Pramod Dangi :

Second on the Naitwar Mori. I think this is about to commission in March right, you said a couple of months, so March 2023 or is there any change in the guidelines for that.

N L Sharma :

• Yes. We are still targeting it by March 2023 though there are many odd but our team is totally geared up and we will try that machine are sent and synchronized by the end of this March 2023.

Pramod Dangi :

• One more question if I may ask. Regarding the new project which you said it is just issued in the Jan for the 2600 Crores. On the bidding basis. So over that what the IRR or the HIRR we are looking on the equity how it works. Is it that based on the per unit price how the economy works over there.

• N L Sharma : I believe you are talking about the Sunni Damn project, hydro project, which the Government of India gave the investment approval. The IRR is more than 12%, IRR is more than 12%, and it seems that the equity IRR is even more than 15%.

• Pramod Dangi :

Thanks.

• Moderator : Thank you. The next question is from the line of Anshuman Ashit from ICICI Securities. Please go ahead.

• Anshuman Ashit : Thank you, sir for the opportunity. The first question is on the finance cost for the quarter. So it was again, so was there any FERB component can you let us know on that.

• N L Sharma :

• Yes. Finance costs to that has increased over this quarter because we have taken the loan from various banks. So, FERB sharing Rs.45 Crore.

• Anshuman Ashit : 45 Crores which was not pass through, and what is the current cost of borrowing for us.

• N L Sharma :

• Current cost of borrowing average is around 6.5%.

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Anshuman Ashit : Sir, broadly on the renewable front. So could you let us know the current portfolio that we have in our hand and the break up in terms of once FY2023 passes what will be the total operational capacity and what is under construction currently.

N L Sharma : So far as renewables are concerned the operational portfolio is of five projects of 179.5 megawatts capacity and the project under construction renewal there are six projects under construction of capacity of 1385 megawatt capacity these are under construction.

• Anshuman Ashit : Most of these or in fact all of this will get commissioned by FY2024 end.

• N L Sharma : Yes FY2024 will be commissioned in that financial year, next financial year. All projects.

Anshuman Ashit : Going forward whenever we are bidding for the renewal projects will we bid under SGEL or will the present process continue.

N L Sharma : I could not understand your question.

• Anshuman Ashit : Sir the SJVN Green Energy Limited, subsidiary.

• N L Sharma : SGEL our new subsidiary for it.

• Anshuman Ashit : So whenever we are going to bid for the upcoming projects we will bid it under SGEL.

• N L Sharma : SGEL yes.

• Anshuman Ashit : But the debt raising will be under SJVN itself.

• N L Sharma : No debt raising is not by SJVN wherever required we will give the guarantee SJVN will give the guarantee but otherwise debt raising is also through SGEL.

• Anshuman Ashit : Okay understood sir. Thank you so much.

• Moderator : Thank you. The next question is from the line of Chinmay Kabra from Emkay Global Financial Services. Please go ahead.

Chinmay Kabra : I just wanted to know one thing. I might have missed it in the early part of the call. Could you please repeat what was the incentive for this period.

• N L Sharma : Incentive.

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Chinmay Kabra : Yes, if you could just give it. N L Sharma : Yes. So far as incentives are concerned. During this quarter we got incentives, the capacity incentives and UI to the extent of 71.89 million almost Rs.72 Crore incentives. Capacity incentives out of the 72, 63.47 Crore capacity incentives and Rs.8.42 Crore UI that is DSM so total of 72 Crores. Chinmay Kabra : And if I am not wrong you did mention there is a decrease of 3.3% in it right. N L Sharma : Yes. Last year it was Rs.74.4 Crore. Chinmay Kabra : One more thing sir, I am a little confused, if you can just clarify. You have a target of 5000 megawatt for end of FY2023 right. N L Sharma : By 2023-2024. Chinmay Kabra : That is by end of FY2024. N L Sharma : Yes.

Chinmay Kabra : Alright. So currently we have completed 2100 worth of projects if I am not wrong. N L Sharma : Yes, 2100 capacity is already there and more than 4000 megawatt projects are under construction and out of this we will definitely commission projects worth more than 3000 megawatt projects. So we will definitely cross 5000.

Chinmay Kabra : The Buxar and Nepal will be commissioned by end of FY2024 right.

N L Sharma : Yes by FY2024 yes. Chinmay Kabra : I just wanted to clarify that. Thank you. Moderator : Thank you. Ladies and gentlemen, due to time constraints we will take the final question from the line of Mohit Kumar from DAM Capital. Please go ahead. Mohit Kumar : Sir, two questions. How much is our renewable portfolio at this point of time including whatever you have won in the last quarter in megawatt terms and what is expected EBITDA in that portfolio.

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N L Sharma :

Yes. I have already told that 179.5 megawatt is under operation, 1320 megawatt is under renewal, 1385 megawatt is under construction, and around 1100 megawatt projects are under various stages of development of renewal. There are few other projects we have been given two solar project in Himachal Pradesh of 1300 megawatt there is the issue of forest land diversion. So we have already taken up with the Ministry of Environment and moreover we have signed MOU of 10000 megawatt solar power projects in Rajasthan. So we are keeping our attention there for RTC how much power we can generate and all these things. There is some other requirement by other states that you can establish or install projects in other states and supply power to them for example Punjab, Punjab has issued the tender that the developer can install, establish solar project in Punjab also or, solar power project in other states and supply power to Punjab also. So we are participating in such type of bidding also.

Mohit Kumar : But how much is the portfolio where we have it PPA already signed or we are L1 in the bids, total portfolio.

• N L Sharma : Total portfolio out of 1385 megawatt project which are under construction. PPA of more than I think 1000 megawatts have already been signed or likely to be signed. So the project which we get through competitive bidding, PPA is obligatory on the part of the bidding agency, we will supply power to them at the lowest determined rate. So issue of PPA is not there, when it is open-ended like if we produce power to supply through RTC. So then we will install the project at our rate and we will keep our fingers crossed to meet the demand which is unforeseen supplies to RTC or other bundling with the other available power.

• Mohit Kumar : Last question, is there some EPC tender for hydro project which are still pending which you are looking to award in FY2024 or FY2023.

• N L Sharma :

• Not yet. Now all the tenders which were there in the pipeline have been awarded, major one for the Sunni Dam Project this major civil package and hydro mechanical package. So now for that electromechanical package will be there, that is also kind of EPC, but that is under process.

• Mohit Kumar : Who are the contractors for Sunni Dam.

• N L Sharma : Sunni Dam project Rithvik Power is the lowest bidder.

• Mohit Kumar : Understood. Thank you, sir. Thank you and best of luck. Thank you.

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Moderator : Thank you. I now hand the conference over to Mr. Rupesh Sankhe for closing comments. Over to you, sir. Rupesh Sankhe : We thank Mr. N L Sharma for giving us an opportunity to host this call. We also thank all the investors and analysts for joining this call. Good day and take care. N L Sharma : Thank you very much. Thank you all. Moderator : Thank you. On behalf of Elara Securities India Private Limited, that concludes this conference. Thank you for joining us, you may now disconnect your lines.

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