Ladies and gentlemen, good day, and welcome to GMR Airports Limited's Conference Call to Discuss Q2 FY 2021 Results. As a reminder, all participant lines will be in the listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing star then zero on your touchtone phone. Please note that this conference is being recorded. We have with us today Mr. Saurabh Chawla, Executive Director of Finance and Strategy. Before we begin, I would like to state that some of the statements made in today's discussion may be forward-looking in nature and may involve risks and uncertainties. Also, recording or transcribing of this call without prior permission of the management is strictly prohibited. I now hand the conference over to Mr. Saurabh Chawla for the opening remarks.
Thank you, and over to you, sir.
Thank you so much. Good afternoon, ladies and gentlemen. I welcome you all to the Q2 FY 2022 earnings call. I hope everyone on the call and their families are safe. As you know, economic activity indicators had peaked in March 2021, but they took a hit during Q1 FY 2022 due to the second COVID wave. Our second COVID wave has receded much faster than what was anticipated. Economic activities and businesses are now back, as COVID daily cases are now significantly down below the 13,000 mark against the second wave peak of almost 400,000 cases a day. This all goes well for our businesses during the quarter. Before briefing you about the business performance, I would like to highlight key focus areas which have kept us busy during Q2 FY 2022.
Firstly, on demerger, we have received all approvals from the financial creditors and shareholders. The rest of the steps in the demerger process are procedural in nature. We expect the final order from NCLT soon, most likely by end of December 2021, and fixing a record date of GPUIL listing and subsequent listing on the stock exchanges by quarter four FY 2022. Secondly, we have made significant progress on our CapEx programs. Delhi, Hyderabad, and Goa airports have achieved 50%, 67%, and 44% completion as of October 31, 2021. In Goa, we are targeting to achieve a COD by mid-March 2022. Thirdly, we have executed industrial partnership agreement with Groupe ADP. This is a significant step into building the world's largest airport alliance to welcome passengers and leverage both the groups' expertise to continuously improve operations.
Fourthly, on the liquidity raising and cost-saving initiatives, we have completed the divestiture of Kakinada land parcel and the port. From this transaction, we received the first tranche of considerations, which is about INR 700 crores out of a total INR 2,700 crores. In order to cater to rising demand, we have resumed operations at Terminal 2 in July 2021 and Terminal 1 on October 2021 at Delhi Airport. We had earlier closed these terminals to save costs amidst lower passenger footfalls due to the first and the second COVID wave. We also agreed to restructure the transaction with Bharti Realty for 5 million sq ft, primarily dividing into two phases, phase one A of 2.73 million sq ft and phase two or one B of 2.16 million sq ft. These rentals for the phase one A is effective from September 1, 2021.
Phase 1B is expected to be effective by FY 2023. We have received significant amounts from this transaction prior to September 30. In order to improve the performance of the power business, we have entered into a PPA with Gujarat Urja Vikas Nigam Limited for 150 MW in Warora. We have also pursued resolution of receivables at Warora and Kamalanga and received favorable order from APTEL with respect to the Bihar Discom. Coming to the business front, GMR's businesses have recovered significantly post second wave of COVID. I want to first talk about the airport business, which contributes significant numbers to our revenue and EBITDA. As highlighted earlier, traffic has rebounded quickly post second COVID wave than initially anticipated, and it is on a fast-paced recovery path.
In Delhi Airport, domestic and international daily average passengers have turned around and has reached 81% and 42% during the week ended November 7. In Hyderabad Airport, domestic and international daily average passenger has reached 73% and 50% during the week ended November 7. Cargo business continues to be resilient and is now above 100% of pre-COVID level for both Delhi and Hyderabad airports. It is encouraging considering Government of India has imposed curbs on the capacity for airlines which were at about 50% in June 1. Later revised to 65% from July and 72.5% in August. Now the government has lifted the capacity restrictions for all domestic flights, and they can operate up to a 100% capacity.
International destinations and frequencies were also increased during the bubble arrangements, and more destinations are expected to be added in the near term. Passenger confidence to travel is on the rise with a decline in COVID cases, increased pace of vaccination, and relaxation of the testing norms. Passenger profile mix is also shifting, with increased passenger travel from tier two and tier three cities versus metros, friends and family or leisure travel versus corporate travel. Even corporate travel has also recovered to about 50-odd% levels compared to pre-COVID, and corporate travel is gaining momentum in the near term as executives have started to travel for meetings and conferences. On the international side, there is more and more structural shift happening on the nonstop flights.
We expect the traffic to gain further momentum with the reducing trend in COVID cases, lifting of government restrictions on airline capacity, and increased pace of vaccination. India's daily new COVID cases are now below 13,000, and vaccination pace has picked up, where almost 1 billion doses or more than 1 billion doses have been given, as on November 10, 2021. Metro cities which are core to our business have recorded over 95% vaccine coverage. Most states in India have lifted travel restrictions with COVID cases receding, and various states have also lifted RTPCR testing requirements for fully vaccinated citizens.
Globally, too, weekly COVID cases have declined to 1.3 million as of November 8 versus peak of 5.7 million in April 2021 as vaccination drive is in a full swing, which will further boost international traffic. Globally, about 7.3 billion vaccine doses have been administered so far. Significant part of the populations in various countries are inoculated with at least one dose. U.S. is about 66%, U.K. about 74% and 79% in Canada. Air bubble arrangements will continue for next few months, aiding recovery of international traffic. Currently, air bubble arrangements are with 28 nations, including U.S., U.K., Canada, Germany, France, UAE, etc. International countries have also started to ease travel restrictions. For instance, U.S. has lifted travel restrictions for fully vaccinated travelers.
Far East countries, especially Singapore, Australia, Thailand, are now opening up for fully vaccinated passengers. U.K. is set to lift travel restrictions for passengers vaccinated with WHO-listed vaccines. While Covishield vaccine is already approved by most countries, Covaxin has recently received WHO approval. U.K., including 96 countries, will start accepting Covaxin. This will enable more Indians to travel outside India. Fleet addition by major Indian airlines, takeover of Air India by Tata, entry of new airlines, including restarting of Jet Airways, will aid expansion of the operating capacity. Financially strong airlines will aid for further growth in the future. We anticipate domestic traffic to reach pre-COVID levels by end of this current fiscal year 2022 and international by end of fiscal year 2023 in our Indian airports. On the energy business, power demand and coal supply are improving as the lockdown is easing up.
Kamalanga clocked the best operational performance in first half with a PLF of 82%. PLF improved to 90% in October and 96% in November as we speak. Warora's PLF of 51% in first half was impacted by lower supply of linkage coal from the mines, lower exchange rates, and delayed realization from discoms. However, post first half, PLF has improved to 66% and 89% in October and November respectively, due to better availability of coal. On Kamalanga, we've also received a favorable order from APTEL. As per the APTEL order passed in August sixth, all amounts due and payable to Kamalanga by Bihar Discom due to various change in law events shall be paid along with the carrying costs in accordance with law.
Kamalanga is entitled to recover expenditure involved in procurement of alternate coal due to shortfall in domestic coal supply corresponding to scheduled generation pertaining to Bihar PPA, thereby restoring Kamalanga to the same economic position as before, as if no change in law event had occurred. Bihar Discom has filed an appeal in the Supreme Court against the APTEL order and appeal is currently pending with the Supreme Court. It is yet to be listed for admission. PT Golden Energy Mines Tbk is truly a gem in our portfolio today. Performance continues to be strong in this mining business despite volumes being impacted by unseasonal rains. EBITDA margins was up from $5 per ton year-on-year to $9 per ton in Q2 FY 2022, driven by a 42% YOY increase in realizations.
GEMS has paid record dividend of $180 million in first half of calendar year 2021. Subsequently, it has also paid dividend of about $60 million during August 2021. GMR, as you know, has 30% stake in this mine company. On the highway business, Hyderabad-Vijayawada Expressway traffic increased by 27% year-on-year to about 10.4 million vehicles during quarter 2 FY 2022 period. On quarter-on-quarter basis, traffic has increased by 24% in quarter 2 of this year. Toll at Ambala-Chandigarh Expressway has been suspended since October 12, 2020 due to the farmer agitation. In this regard, GMR Ambala-Chandigarh Expressway has declared a force majeure event under the concession agreement and has notified NHAI. As per the concession agreement, GMR Ambala-Chandigarh Expressway is entitled to compensation for this force majeure event by way of extension in the concession period, reimbursement of O&M costs, etc.
Claims for the force majeure up to 31 March 2021 have been filed, and Ambala-Chandigarh has received part payment from NHAI. Balance claim amount is under verification and is expected to be received in due course. On the status of arbitration award on Hyderabad-Vijayawada project, the sole arbitrator has reserved his findings on the quantification of claims under change in law and is expected to publish his report on the claim quantification by end of this quarter. On the dedicated freight corridor project, construction work has picked up pace. As you know, GMR along with its partner, SEW Infra, have been executing an EPC contract to construct a part of the eastern corridor. That is 181 km of Mughalsarai to New Karchana in U.P., and 236 km of New Karchana to New Bhaupur, again in U.P.
Around 76% of package 201 and around 89% of package 202 have been completed. I would also like to briefly touch upon the best practices and recognitions received on the ESG front by GMR Group. On the airports front, Delhi Airport has won prestigious awards of National Energy Leader and Excellent Energy Efficient Unit at the 22nd National Award Ceremony for Excellence in Energy Management, organized by the Confederation of Indian Industry Green Business Center. Hyderabad Airport successfully renewed the ACI Airport Health Accreditation program for the year 2021, 2022, and has also commissioned its second 5 MW solar power plant in July 2021. On energy business front, some of the safety performance highlights are Kamalanga plant's lost time injury frequency rate and the lost time injury severity rate of 0.00 continues in Q2. Same goes with Warora.
Both plants expanded efforts towards sustainable ash utilization by sending by-product to cement manufacturers and brick manufacturing through railway rakes. Ash utilization achieved in both plants is more than 100%. GEMS was also awarded as one of the Best of the Best Top Fifty companies in 2021 by Forbes Indonesia. President Director of the company received the Top Leader on CSR Commitment in 2021. The presentations with all these information and all financial numbers are already available with you. If not, it can be downloaded from our investor relations section of our website. We are available to respond to your questions on this call and also offline post the call. I would like to now open the forum where my colleagues from the corporate finance and the businesses, the sector CFOs can answer your queries. Thank you so much.
Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on the touchtone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is from the line of Apoorva Bahadur from Investec. Please go ahead.
Hi, sir. Thank you so much for the opportunity, and congratulations on the current merger. Now that we are so close to the event, can you please share what is the plan for splitting the corporate guarantee which we have given for Rajahmundry? How much between airport and non-airport businesses?
As you're aware, Rajahmundry restructuring happened a few years back, right?
Right.
The corporate guarantee is on GMR Infra for the non-sustainable portion of it. This guarantee will continue both on GMR Airports and also on GMR non-airports, so after the demerger. This shall continue.
For the full amount on both?
Yes. Naturally from a credit perspective, the first recovery goes to the entity which owns the business directly. Yes, as a credit enhancement, the GMR Airports guarantee will continue.
Okay. Secondly, on this FCCB, which has not been converted yet, how should we look at the split of this and then the obligation of conversion of shares between, again, both airport and non-airport businesses? Basically, how much could be the potential dilution in the airport business because of FCCB conversion in future?
It's a very simple math on this. You should assume if you were to assume on a fully diluted basis, you can assume FCCB to be fully converted, and the same proportion allocated to both the airport and the non-airport. As you're aware, this is a vertical demerger, so there is no specific allocation. It's the same proportion of shareholding that the FCCB holder will get on both the sides of the businesses if they have converted the whole instrument. That's how you should take it for.
Okay. Sir, in case we continue with the debt servicing like we do, and there is no conversion, the debt split would be because I believe most of the FCCB went towards non-airport debt.
Correct.
For the debt split, how much would that be between Airport and non-Airport?
Suresh, you wanna highlight this aspect?
Since a large part of that debt actually is gonna go towards the power sector and other businesses, and the airport sector would be very minimal. To the extent of INR 150 crores, we would probably come to the airport side. These are like numbers that we have actually gone through in the first quarter financials. The final numbers actually will wait till the auditors approve of it. Most likely around INR 150 crores of debt portion go to the power sector.
Okay, only INR 150 crores of debt, but full dilution potential. Got it. Okay. Fair enough. Sir, on this Bharti Realty deal, I understand that because of COVID, probably the timeline changed. I just wanted to know the security deposit which we have received for the overall first phase, that remains untouched, right? Despite the delay in this second, so when we start payment for that. Yeah. GRC, sir, you want to highlight this?
Yeah. As far as the Bharti deal is concerned, the first is 4.89 million, which we have contracted in February 2019. That has been negotiated, is now made into two stages, 2.73 million now and 2.16 million in a year from 2023. So 2.73 million only we have received the payment. If you are talking about the second tranche, as said, the original, another 5 million sq ft, now that is not there in the picture right now.
Okay. That same sum of the deal initially is not there in the picture anymore?
I mean, there is not much discussion on that, but that price which we are adding after five years, I mean, on completion of the first deal, that has not been renegotiated. Just to clarify, the option for the phase two continues with Bharti. It's a total contract of INR 10 million. First INR 5 million has been divided into two subphases. The balance INR 5 million, that option continues with Bharti.
Okay. The security deposit for the first phase was received in full?
Yes. Entire security deposit as well as the advance development cost, including the annual license fee for one year has been released.
Okay. What impact does this have on our annual CPD rentals now? Because I believe you are accounting for the full payment.
Yes, we have accounted the full payment, but annual fee, anyhow, we have not made any provision in the books because of the stay which we are enjoying from the Delhi High Court.
Right. Okay. Sir, just one more question, if I may, then I'll get back in touch with you probably. This is on the force majeure issue on revenue share with Airports Authority of India. So just wanted to check what is the total amount which is under dispute right now?
There is no dispute. I mean, the amount which has not been paid till date is about INR 720 crore.
Okay. Just INR 720 crore, sir?
Around INR 720-INR 730 crores. That's what we have not paid till today.
Oh, okay. Fine, sir. I'll get back in touch. Thank you very much.
Okay.
Thank you. The next question is from the line of Mohit Kumar from DAM Capital. Please go ahead.
Hi, good morning. Good evening, sir. Congratulations to the team on getting almost all the major approvals and demerger. My first question is on the couple of monetization plans which we have been talking about in the recent past. First, the PT Golden Energy Mines. Is there something you have at work right now, given that the price they have moved up, it is one of the most profitable venture right now. Second one, Krishnagiri SEZ. When you say a substantial amount of land is getting, you know, into where we are into some kind of negotiation, what is the kind of timeline we are looking at, you know, monetizing roughly half of our land parcel?
Is it something we can expect by the end of FY 2022, that all the land parcel you mentioned, the entire thing can be closed by end of FY 2022? Thirdly, on the Warora, when you say 1-3 MW you have tied up, is this a short-term or long-term?
I'll answer the PT GEMS question first. Yes, we are always open to any offers that we receive to monetize that asset. As you're aware, that asset is doing extremely well. There is, interestingly, coal shortage in Asia. We are open to any possible monetization of our share or actually the whole asset, if our majority shareholder also agrees. It's not that we are fussed about holding that investment going forward.
Although from a yield perspective, it's an excellent asset to have on our books. As a going concern, whilst we wait for a potential buyer, we will be harvesting the cash flows more aggressively from this particular asset. As we speak right now, you know where the coal prices are, this particular operation is throwing significant amounts of cash, and our agreement with our majority shareholder is to harvest maximum amount of cash. This asset itself is not levered too much. It's a very lightly levered asset, and hence, you know, enough cash is available for monetization.
Today, we have in our acquisition financing, we have about $205 million is pending, you know, for settlement, the acquisition financing for this particular 30%, which if today's run rate were to be applied, then this asset will be without debt. Our investment will be without debt in next 12 odd months' time. So it's turned out to be a jewel in the crown. Again, in infrastructure business, you know, those who wait patiently get to reward and reap the rewards in a period of time. As we speak forward, the strategy would be to harvest this asset and because this asset will go into GPUIL, which is the non-airport vertical.
This should start giving about 150 million US cash flows to the non-airport side of the business for it to financially strengthen themselves and also to start to grow that business as we go forward. That's the broad strategy as far as PT GEMS is concerned. What is your second question? Krishnagiri SEZ.
Yeah.
Krishnagiri SEZ, we have about 1,900 odd acres of land left there. About 500 is currently contracted, and about 200 out of that is being currently developed with a partner. So we expect that during this current fiscal year, I think, we should be able to monetize around 300 to 500.
That's the range that I would be comfortable giving you as on date. The balance will be developed, and we can look at a medium-term timeline that the next 2 odd years, this whole 1,900 odd acres will be sold to third-party industrial houses who want to set up their industries in that region. That's the plan.
Third one, Warora sir, long term or short term?
The Warora, if I may, the Warora PP which we have with GUVNL currently is for 23 months, and we have started in October. JVNL of course has expressed intent to procure 3,000 megawatt on competitive basis related the draft bid documents.
Understood.
We intend to complete that.
Understood. There's two bookkeeping question. The Bharti Realty new deal, does it affect our accounting in any way, given that the timeline has changed? Secondly, what is this exceptional item of INR 211 crore in this quarter?
Jagdish Rao, you wanna highlight?
Sir, the Bharti deal.
As far as the Bharti deal is concerned, 2.63 million sq ft income has been recognized. And with regard to the 2.6 million sq ft land, which we have considered in our balance sheet as revenue on straight-line basis earlier, has been reversed. That is the exceptional item, which is coming below the EBITDA of INR 335 crore.
Okay. So INR 325 crore is a special item related to reversal of Bharti Realty deal. Am I right?
Yes. That is with regard to the INR 16 million.
Okay, understood, sir. Thank you and all the best, sir. Thank you.
Yes. Yeah. Yes.
Thank you. The next question is from the line of Anshuman from ICICI Securities. Please go ahead.
Thank you for the opportunity, sir. The first question is on clarification on the revenue share discontinuation which you had mentioned INR 720 crores. Sir, could you please explain for which period is it? Is it for FY 2021? Have you started the revenue share from Q2 onwards, is it?
No. This is pertaining to basically the last quarter of FY 2021 and 2 quarters of FY 2022.
By when do we expect to start the revenue share again?
No. The revenue share now we are currently enjoying the stay given by the Delhi High Court, and the case is the Airports Authority of India has gone for appeal before the division bench, which has yet to hear the cases in detail. The case is posted to the end of this month. The second point is we are also agitating the case before the tribunal which is already hearing the case, and they have already heard the case, and they have posted the case for December 2022. So as long as the stay is there, we continue to enjoy. We are expecting the final outcome maybe out of the tribunal only in around the 22 June or July.
Sir, the second question is on the restructure of the Bharti deal. I believe that the CapEx which we were doing, in particular, at DIAL was being funded by the security deposit from the CPD and from the Bharti deal as well. Will this, in any case, see some change or will this be hit in any case? Will this restructuring have any impact on the CapEx going forward?
No, I think that will not have an impact, sir. We have considered about the INR 14,140 crore as the deposits as part of our CapEx program. We have currently received already INR 800 crore and expecting to receive the balance amount by, I think, April 2022. Since our expansion program is going up to September 2023, we do not find any difficulty.
Okay. Sir, the third question is on the strategic partnership with Groupe ADP. Could you just share some more details about what this partnership is about and how will it help the airports business?
Sorry? Yeah. On the industrial partnership, Ashish, why don't you go ahead? That is half the question I heard before I got disconnected. Sorry. He wanted to understand how this is going to help the airports because of the industry partnership.
Yes, sir. Details about the partnership.
Yeah. The way it's structured is that, ADP is a strategic partner, and they have significant operations in Europe and other parts of the world. GMR has strength in India and Southeast Asia. We are looking to see how we can leverage the know-how of each other and work together in the partnership. We have agreed to work in various areas, which includes on the operation side, airline marketing, the digital and the innovation side, sustainability side. There are six to seven areas that we have identified to work together on different projects so that we can benchmark and learn from each other and progress. That's the basic construct of the industrial partnership.
Okay. Finally, just on the earn outs, which was declared earlier, related to the partnership with the group, the INR 1,060 crore earn outs. Could you help us understand where we stand currently in relation to the metrics which were laid before us for these earn outs? And also for the INR 4,400 crore earn outs related to increasing our stake to 59% in GMR Airports. Where do we currently stand in that case?
The first earn out will be tested actually end of this fiscal year. I think we should wait it out. I really can't speculate, you know, where our accounting EBITDA will reach, because as you can see, there are sometimes additions and sometimes subtractions. We'll have to wait it out till March. From an operations perspective, we are on track. But from accounting standard and accounting treatment perspective, only time should tell. As far as the INR 4,500 crore EBITDA, again, that has to be tested after completion of FY 2024. You know, again, early stages in that process. We still have about three odd years to complete the achievement of earn outs on that scale.
Okay. Thank you, sir. Thank you. That was it from my side. Thank you so much.
Thank you. The next question is from the line of Abhiram Iyer from Deutsche CIB Center Private Limited. Please go ahead.
Yes, sir. Thank you for taking my question. Apologies if these are multiple on similar avenues. Just wanted to know on Bharti deal. You mentioned that INR 805 crores have been received as deposit so far. How much of this would be in the September quarter? Was this received in the September quarter or post, you know, September 30? You also mentioned that the annual fee for the year has been received. Again, what is the quantum and was this received post September 30 or after September 30?
See, Bharti deal, we have earlier received INR 359 crore in February and March 2019 itself.
Yes.
In addition to that, we have now received INR 603 crore of RSD and annual fee pertaining to 2.73 million sq ft of INR 203 crore for one year fully. We have received both items.
Got it, sir. Just wanted to know from an accounting perspective, sir, should this be treated as being received in Q2 or would we see a cash flow in Q3?
No. In the cash flow, as far as the RSD is not a P&L account, it is a balance sheet item.
Okay.
Cash has been received. As far as ALF is concerned, INR 203 crores, though we have received fully, we have accounted only for one month in the quarter two, that is from September to September, because this new agreement is valid from September 1, 2021.
Got it, sir. The second question is, are all governmental and regulatory approvals achieved now? I mean, basically, can we consider the deal to be ongoing and in full effect?
Yes. We have received all approval. DGCA approval, which is a very critical. Concept master plan approval has been completely received. We'll be now submitting the detailed plans.
Got it, sir. Again, what would be the run rate of annual fee that you're expecting from post the phase two completion for the 523 then?
You are talking about the Bharti annual fee?
Yes, sir. Just in general, the entire CPD revenue or annual fee.
No. If it is of 4.9 million, the total annual fee will be INR 367 crores per annum.
Got it, sir. Got it. We are expecting once the phase two is completed in 2023, we will be receiving, we'll be adjusting that.
Phase two, it is mandatory that Bharti has to pick up by April 2023. That is a condition. They will start making the payment a maximum date of September 2023 onwards they will make full payments. Again, subject to.
Sorry, sir. Maybe I'm confusing a bit here. I'm talking about phase 1A and phase 1B. Basically the 2.16 million sq ft here.
Phase 1 A, we have received now. Phase 1 B is also mandatorily they have to pay by September 2023. That's why in the previous question when the people have asked whether your project cost, whether you have any impact, since this money mandatorily Bharti has to pay before September 2023. They will pay for phase 1 B by September 2023.
Got it, sir. Just one last question, sir. I believe the other avenue of funding that was sort of mentioned in previous calls was through asset leasing towards, you know, the CapEx. Could you just give us a bit more color on the entity which is providing the financing, and are the plans for, you know, the facility still going through?
The facility is still going through. It is Pushpak Leasing & Finance Limited. It was a consortium which has been bid.
Got it, sir. Got it. Again, there are no implications related to SREI default on the financing facility, right? There are no issues with any drawdowns or issues with any cash flow coming from the facility?
No. It doesn't have. SREI was only providing technical support.
Okay.
Pushpak has already taken over the responsibility and arranged the funds.
Got it, sir. Got it. All right. Thanks a lot for taking my questions, sir. I'll get back in the queue .
Thank you. The next question is from the line of Atul Tiwari from Citigroup. Please go ahead.
Yes. Thanks a lot for the opportunity and congratulations on getting all the approvals for the demerger sale. Just two questions. Now that, you know, obviously we are very close to seeing, you know, increasing number of international travelers. Can you give some idea about the relative profitability of the per passenger revenue between, you know, international passenger and domestic passenger historically, pre-pandemic? I mean, on a per passenger basis both on the aero side and the non-aero side, you know, how much would be the revenue differentiate?
It will be difficult to provide the data on the call. I think we can provide offline.
Okay. No worries. Sir, my second question is on the conversion of the FCCBs. I mean, we understand, you know, from your responses to some previous questions that, you know, there is a upper limit price, you know, above which GMR can force the conversion of the FCCB. I think, if I'm not mistaken, that price is about INR 23-INR 24. Obviously the stock is at INR 40+. You know, what is holding us back, you know, from forcing the conversion of the FCCB?
Relationship with the Kuwait Investment Authority, which is the FCCB holder. We are in conversation with them. Whenever they are comfortable, you know, converting it, we will surely go ahead and convert it. We don't want to force something because that's not the way we are structured over here, you know. In difficult times, they help us out, and in good times, we heed to their views also. Hopefully in a short period of time, they can take a final call as to whether they want to hold it as a debt instrument or want to convert it to equity. From their perspective, honestly speaking, they would surely like to keep having the mark-to-market profits, and yet get some yield out of it, right?
We'll have that conversation soon after our demerger has been completed. We'll have that conversation with them.
Okay.
You are right that the right to convert GMR can force that conversion. That's not the way we are gonna take it forward. We'll have a conversation with them before a final decision is taken.
My last question is, what is the holding company level debt as of now? The parent company debt.
Which parent company? I'm, can you-
GMR. GMR is standalone. GMR Infrastructure is standalone.
Okay. Suresh, can you highlight that?
The current as of September 30, I guess. It'll be about little more than INR 1,000 crore.
The standalone.
Standalone debt.
Yeah. The standalone debt is close to INR 1,500 crore at GMR Infrastructure level.
Okay. Only INR 1,500 crore then. Okay. Thank you, sir. Thank you.
Thank you. The next question is from the line of Apoorva Bahadur from Investec. Please go ahead.
Hi, sir. Thank you for the opportunity again. Sir, on this AAI revenue share part, where you highlighted that INR 720 crore is the number which we have not paid till date. I believe this is only for FY 2022, right? Till date.
No. What we said is the total amount not paid till September is about INR 720-723 crore, which from January 2021 onward, right? Some portion. Sorry, 2 quarters of the current year and last quarter of the previous year.
Okay. Fine. Fair enough. Then, sir, in this Bharti Realty deal, now that the controls have changed, we were recognizing the full amount of these rentals. Are we going to reverse anything? I mean, do we have to reverse anything?
We did reverse. We have shown it INR 325 crore as an exceptional item, as a reversal portion.
That's the full amount?
Yeah, that is the full amount, which is pertaining to the 2.16 million sq ft, which will come into force only beyond March, April 2023. Entire amount pertaining to that has been reversed, which is INR 325 crore.
Okay. Sir, I can also see an exceptional income of INR 530-odd crore in your energy business. Can you highlight what was that pertaining to?
Yeah. That basically is an accounting entry or adjustment. What happened, Kamalanga, we had investor. In the GMR Kamalanga Energy, there was investor, and it was under joint control. In September, we became 90% holder, and Kamalanga is now consolidated. In fact, this is the difference between net book value and fair valuation. Fair valuation of the asset being higher than net book value, the difference is taken in consolidation as an exceptional gain.
Okay. Sir, how did we become 90% holder? Did we buy someone out?
Yes. We, the infrastructure partner shares, we have got into an agreement to acquire their shares. In that process, we have by September acquired 3.79 out of their 10+ shares, and GMR Energy now holds 90% of Kamalanga. This will go up to around 97.5% because of this agreement which we have.
Okay. Sir, what is the consideration for it be? How much are we paying?
It was disclosed in the last conference settlement with GIP. The amount I will get back to you. Yeah.
Okay. Sir, on this Gujarat PPA with Warora, I'm sorry I missed it. Arif posed this. Can you please repeat?
What we are receiving at our busbar is 3.07, 3.01+. We had a long-term transmission increment where we were incurring INR 0.55 per unit. That also will be paid by Gujarat. Effectively, it's an increase in revenue plus reduction in cost. The net impact is INR 3.56.
Okay. That's good. Sir, any chances of increasing it beyond 23 months as well? I mean, is Gujarat keen on that, on a longer-term agreement?
I missed the question. The line was not clear. Can anybody repeat it?
Sir.
Longer-term period.
Yeah. I asked about this Gujarat PPA for 23 months which we have, the short-term one. Are there any chances of increasing the tenure? I mean, does Gujarat seem keen on this?
Not increasing tenure of this agreement, but Gujarat is already, it's in the public domain, has come out with its intent to acquire 3,000 MW long-term, and it has already circulated draft bid documents for comment. We would be participating in that and expect hopefully to have a favorable outcome. That's our attempt would be so.
Sure, fair enough. Sir, lastly on this Bajoli- Holi, we are seeing 98%-99% completion for past many months. When can we expect this full completion?
It would definitely be completed before the end of December.
Okay. Thank you so much, sir. Thank you for your time.
Thank you. The next question is from the line of Mohit Kumar from DAM Capital. Please go ahead.
Yes, sir. Thanks for the opportunity once again. 3 questions. What is process timeline for the merger? Let's say you get the NCLT approval today. How many days it will take for the separate listing of both the companies?
If we were to get the approval today, then before December 31, we should have both the entities listed. Roughly around 45 days. These are best estimates because you have government agencies that are involved in it. Yes. You know, you don't have too much control on timeline, but I'm giving you best estimates.
Thank you, sir. Understood, sir. Secondly, on Delhi Airport, how much of the land is, you know, in terms of acre, which is still available to be monetized? Progress with the Bharti Realty.
The hospitality district we have leased about 45 acres and the IRDC project.
The current Bharti Realty deal which is on square foot, the land will be, I mean, the exact number is difficult for me to say. It could be around 50 acres. So all together, we have utilized about 130-140 acres. Still we have got about 80-90 acres of land, sir.
Lastly on the status of financial close of Goa, has it happened and what is the total CapEx?
Financial close of Goa was completed long back. It is INR 2,615 crore. With the rating that has been already closed.
You need to file the petition for tariff, right? When this will happen for Goa?
Tariff filing, we will be most probably likely to file by end of this month.
Understood, sir. Thank you, sir. Understood. Thank you.
Thank you. The next question is from the line of Abhimanyu Dahiya from GrowthX Capital. Please go ahead.
Hi. Thanks for taking my question, and congratulations on this recovery. My question was actually regarding this national monetization plan. The government is planning to monetize about 25 airports. Not monetize, privatize, 25 airports. There was another announcement recently that by the end of FY 2022, probably 13 of them will get privatized. Do you have any timeline on which airports you might be bidding? Has anything already taken place?
No, it's early days right now in the process. The government has just appointed a consultant. Let's wait it out before the formal process begins. Right now not even an RFP is out there. But yes, we will be surely looking at many of these airports, if not all, very carefully. It's our stated position that we would like to grow our portfolio within India. Like last time where we had bid for six airports, we did not win any. We will still seek other growth opportunities as and when the Government of India puts it out. Our intent is there. The process is in early stage.
I think this will be somewhere in February, March of this year when this whole process will start to take much more completion.
Okay. I just had one more question.
Regarding your Vizag airport, could you give me an expected pax which you could be serving?
Sorry, which airport?
The construction has finally happened.
Bhogapuram you are talking?
Yeah. Bhogapuram.
Bhogapuram Airport construction is yet to start. We are in the detailed designing work is going on. That is expected to start with about 4.5 million passengers by the time it start operations.
Okay. Any timeline how much time it may probably take?
No, once the land is with the government, land is yet to be handed over by the government otherwise we are free. Once they hand over the land appointed date is announced, within 3 years the construction has to be completed. Even we expect by next March, if the government is fully handing over the land, then by 2025 the project will be on.
Okay. Thank you so much. Very well.
Thank you. Participants, to ask a question, please press star and one. As there are no further questions from the participants, I would now like to hand the conference over to Mr. Saurabh Chawla for closing comments.
Thank you. Thank you, everybody, for joining on a Saturday evening. The team is of course available for any further questions you may have, which are more granular in nature. We will answer whatever is possible. You can contact the IR team, Amit Jain, or send him an email. Thank you so much. Have a wonderful evening.
Thank you.
Thank you. On behalf of GMR Infrastructure Limited, that concludes this conference. Thank you for joining us and you may now disconnect your lines.