Good morning, everyone. On behalf of PL Capital, I'll welcome you all for the webinar on the business update of Power Grid Corporation of India Limited. We'll have a full board and we'll start with the detailed presentation, which will be followed up by Q&A. I'd like to thank the management for giving us this opportunity. Without much delay, I'll hand over the call to Shri Satyaprakash Dash, who is our Company Secretary and Compliance Officer. Thank you and over to you, sir.
Thank you, Vishal. Good morning, ladies and gentlemen. It's my pleasure to welcome you to this webinar of Power Grid Corporation of India Limited, convened to interact with analysts and investors, and to share an update on company's business performance. Now I'd like to introduce our esteemed senior management team present with us today. Dr. R. K. Tyagi, Chairman and Managing Director. Dr. Yatindra Dwivedi, Director of Personnel. Shri Naveen Srivastava, Director of Operations. Shri Vamsi Rama Mohan Burra, Director of Projects. Our Director of Finance, Shri G. Ravisankar, will join us shortly through video conferencing. Now I will invite our Chairman and Managing Director, Dr. Tyagi, to deliver his opening remarks, and which will be followed by a question- and- answer session and further, things. Over to you, sir.
Good morning, dear investors. Thank you for showing confidence in POWERGRID . We are committed to the belief of all the investors in POWERGRID , all the trust in POWERGRID . We thought that for this financial year, whatever we have committed, we have already achieved that, and we are going to achieve better than what we committed. For the future plans also, we will like to share how we are going to contribute towards gRoWth of the nation by investing and by constructing transmission system in India and outside India, and making India a developed nation by 2047. That was the agenda for today. I will just like to share some presentation and details and data.
My presentation will consist of foundation and gRoWth outlook, execution and operational excellence, revised CapEx and capitalization guidance, multi-year CapEx and capitalization runway, like how we are going to go in the future next 10 years or nine years, how we are going to invest. Shareholder value creation, transmission opportunity and gRoWth visibility, SPV merger. As you know, POWERGRID is the foundation of long-term value creation. It consists of India's largest and system critical power transmission utility. We have predominantly the regulated asset base with a gRoWing share of competitive bidding transmission system where the revenues are on an annuity basis. Non-substitutable backbone of India's energy transition. Because everybody knows that energy security requires energy transition, especially for India, which is very heavily dependent on imported fossil fuels. Strong earnings visibility supported by India's transmission CapEx cycle.
Strong balance sheet, dividend visibility and execution excellence. Adaptive execution and superior project implementation. We have 35+ years of execution excellence. What is the opportunity for POWERGRID ? Like, India's transmission system is going to expand leaps and bounds. Electricity demand is going to increase. If we are imagining or if we are considering developed nation by 2047, our power demand is going to increase. Power demand for data centers, power demand for artificial intelligence, power demand for EV and other industrial gRoWth, electrification of economy. Our demand is going to increase, it requires that transmission system also required to be there. Renewable energy expansion as per 2035, CEA guidelines. It says that by 2035–2036, we will have 786 GW renewable capacity, and total capacity will be somewhere about 1,100 GW.
It will have large RE hubs, so it will require long-distance green evacuation transmission systems. Grid complexity. Because of RE penetration, it is going to increase day by day. Unless until we have the balancing mechanism or stabilizers in the grid, like synchronous condensers, use of HVDC, use of 1200 kV network, this grid is going to be a challenge. That opportunity is also there, so it will have inter-regional transfer requirement and balancing and reliability infrastructure. Because RE means it is susceptible to variation, it is susceptible to intermittency. We have to have some reserves, we have to have some stabilizers in the grid. As I told that new demand centers like AI data center and digital infrastructure, transport, electrification, green hydrogen ecosystem will require huge energy demand or huge power demand.
We will have opportunity to construct transmission system for meeting these requirements. As you know that POWERGRID has positioned itself to be the largest transmission company, not in the country, but in the world. We are one of the largest transmission network owner in the world with the 765 kV the backbone transmission system. Today, we have 290 substations. These are 400 kV, 765 kV, and 800 kV HVDC substations with MVA capacity, 6,12,000 MVA capacity , out of 14,00,000 MVA capacity MVA capacity in the country. You can imagine that we are a major contributor in MVA capacity. Our inter-regional capacity is out of 1,20,000 MW , we are about 1,01,000 MW capacity. Across India, we have 11 HVDC projects.
765 kV network, we have world's largest 765 kV transmission network, which we are proud to demonstrate that we can construct transmission system at 765 kV. We can operate efficiently this network. We have system critical national projects. We have proven HVDC leadership in HVDC 765 kV, even 1,200 kV. Technology also it was developed by POWERGRID in 2012, which is the largest voltage of transmission in the world. Difficult to replicate operating scale, technical depth, and execution capability. We have very good technical team, competent team to operate and manage such huge asset base. As always, our reliability and availability of transmission system has been excellent. This financial year, we are having availability of 99.84%.
With the trippings per line 0.25 trippings per line, that means that our line trips, one line trips in every four years on average. Which is a very high reliability indicator. It is enabled by digital and predictive maintenance, AI-based defect detection, drone-based patrolling. Advanced condition monitoring techniques are being used by POWERGRID maintenance engineers and asset management engineers. We have done CapEx of more than INR 100,000 crore in last five years, and capitalized more than INR 90,000 crore projects from 2021 to 2026. Our CAGR asset base has increased at about 10%. Today, we are a company of gross fixed assets more than INR 300,000 crore.
For this financial year, FY 2025-26, I am happy to announce that last investors meet, we have revised our CapEx guideline to INR 32,000 crore. Today, we are now announcing that our CapEx guideline will be INR 35,000+ crore, and already we have achieved INR 35,000 crore. It is a good achievement by POWERGRID team. Investors, we want to thank investors in reposing faith in POWERGRID . Similarly, in capitalization also, last February, we have announced on 2 February that our capitalization will be INR 22,000 crore. We have already achieved INR 22,749 crore with the commissioning of Khetri-Narela, with the commissioning of Bhadla-III, Sikar-II line, with the commissioning of Navsari-Ahmedabad line. We have already achieved more than INR 22,000 crore, which is a record in last so many years.
With the commissioning of Navsari-Vadgam, which is expected to be commissioned by this month end, maybe by 28th, 29th it will be commissioned. Our capitalization will be INR 25,000 crore plus. We are committing today that our capitalization for this financial year is going to be more than INR 25,000 crore. The details of the elements commissioned in this financial year, we are talking about transmission line 4,239 circuit kilometer. Transformation capacity, although it is written 6,370 MVA, but actually so far it is 52,555 MVA, but in next one week it will be more than 62,000 MVA. There is a small change that this transformation capacity...
As on today, it is 52,555 MVA, but by this month end it will be 62,000 MVA capacity. Almost 10,000 MVA capacity in final stages of commissioning. This figure will be surpassed. We will be somewhere about 62,000 MVA. This year we have commissioned eight substations, so one more substation is likely to be commissioned at Bikaner- III. It is going to be nine substations. The elements are Bhadla- III, Sikar- II at 765 kV level. 765 kV Bhadla- III, Ramgarh- II. 765 kV Khetri- Narela. 765 kV Ahmedabad-Lakadia. Ahmedabad-Navsari. Ahmedabad-Banaskantha. Bhadla- II, Sikar- II. Then Khawda II, Khawda III, Maharani Bagh-Narela, Kundah III, Anantapur.
Bhadla- III station, Ramgarh- II station, Narela station, Dausa station, KPS- II, Khawda 2, and Khawda 3 substations. These are the highlights of the transmission elements we have added in this financial year. For multi-year CapEx and capitalization guidance, like as we have told that this year CapEx will be INR 35,000 crore. Next year, we have already committed with Government of India to be INR 37,000 crore. Definitely it is going to be more than INR 37,000 crore. For next financial year it will be INR 45,000 crore. In financial year 2027-28, it is going to be more than INR 82,000 crore CapEx. Similarly, capitalization, this year INR 25,000 crore, next year INR 30,000 crore, then in FY 2028 it is going to be INR 35,000 crore.
Projected capitalization will be somewhere about INR 65,000 crore in next two years. If we talk about our value creation, this market cap has gRoWn from 2021 to 2026 by 2.5x . Similarly, share price appreciation is also 2.5 times. Dividend yield has increased to 3%–4%. In last five years, from FY 2021 to FY 2026, we have paid dividend more than INR 50,000 crore to our investors, to our shareholders. On last February 26, our market cap was about INR 2,77,000 crore . We are among India's top 35 companies by market capitalization, and we have robust pipelines of transmission projects, strong execution track record with consistent TBCB market share.
Our leading global and domestic investors are Capital Group, BlackRock, Shore Capital, then Vanguard, GIC, LIC, UTI, HDFC, ICICI, and then SBI Mutual Fund. Our 45% investment is from institutional ownership only, whether it is foreign or domestic. If we talk of our transmission opportunity or business opportunities for next 10 years, because now the CEA and Ministry of Power has issued guidelines up to 2035. With talks of about INR 7.9 trillion opportunity, which will be because of our peak demand by 459 GW by 2035-36. Installed capacity of non-fossil fuel, it will be 786. And it will have intra-state, interregional capacity. We have a strong policy guidelines, policy backup, policy support by Government of India.
We are sure that transmission network visibility of about INR 8 trillion will be there. We will also play a very important role in this. If we consider HVDC interconnections with Sri Lanka, UAE, Saudi Arabia, Oman, Singapore, Maldives, and in Myanmar, then another INR 3 lakh crore-INR 4 lakh crore visibility is there. Then Brahmaputra Basin, there are about number of HVDC projects, almost INR 4 lakh crore projects are there, which are going to be separate. Total, the visibility for transmission project is.
will be somewhere 15 trillion or 50 lakh crore, investment in transmission system considering national, international, intra-state, interstate. All projects will be somewhere about 15 lakh crore. POWERGRID is going to play very, very important because it involves also One Sun, One World, One Grid concept given by our Honorable Prime Minister. We have a very good future, bright future for POWERGRID investors. If we consider even 50% of this, we are going to play a very major role in building transmission or power infrastructure in the country. If we consider total 1,48,000 crore . We have works in hand about 1,48,000 crore , and CWIP is about more than 49,000 crore.
If we consider 50% of this, we have almost visibility of INR 9,00,000 crore up to 2035. Even if we consider 60% of this, we are going to have almost INR 6,00,000 crore projects to be executed by POWERGRID by 2035, which makes almost INR 60,000 crore per year. We have a very bright future for POWERGRID investors. Recently, with the support of Government of India, we have now approval for merging 19 SPVs into two SPVs. MCA approval has been received. Now, we are also considering merger of 28 wholly owned subsidiaries into two wholly owned subsidiaries. Board approval is already accorded, and we are going to now Ministry of Power.
This governance issue and this will be reduced and we will be able to manage in a better way. This is a good news for our investor that we are going to have reduced numbers of SPVs. Thank you very much for your time and for your support to POWERGRID as always. Thank you everyone.
Thank you, sir. Now we will open the lines for Q&A. From the attendees, I request anyone who has a question to please raise your hand. I'll unmute the line, and then you can introduce yourself and the company name, and then you can go ahead with the question. Sir, first we have Mr. Rajiv Gandhi. I'll unmute the line and request you to go over.
Hi sir. Thanks a lot for the opportunity. Just wanted to understand, given that we are in a very inflationary period, especially energy, and then there might be a lot of cascading impact. On TBCB projects that we have, there is a fixed revenue stream that we will earn, whereas the execution cost, we presume, can see some escalation. How are we placed in such a scenario for the current TBCB projects that we've won? Do you expect any hit to the estimated IRRs there? Thank you.
Should I respond immediately or after, later on?
Uh, so whatever-
Sir, we can have one question and one answer, and then that way we can move, if that is fine, sir.
Okay. Yes, thank you for your query that we are having a very good project management and this execution efficiency, so we are not expecting any price escalation. There have been some price escalation considering this compensation towards land diminution value. In case such force majeure conditions are there, so we are claiming extra tariff from CERC, which is normally given approved by CERC, and we are able to maintain our revenue as per the initial guidance. We are not expecting any price escalation, abnormal price escalation, which is causing our project to be less. These returns will be maintained.
Okay. Even in TBCB, like land compensation and all, you can pass through, even for the bid out TBCB projects?
Yeah. Whatever this government guidelines are there at the time of bidding. In case there are some guidelines issued later on, those expenses are normally passed through and we are giving additional tariff because of those conditions.
Sure. Helpful, sir. Thank you.
Thank you. From Siddharth Gupta. I request you to please unmute and share your company details, and then you can go ahead with the question.
Good morning, sir. Thank you for the update. I had two quick questions. Given that we've had a very positive increase in our CapEx announcements for FY 2026, and we've met our target already, I was just surprised to see that there's no upward revision for the next two years. What is the scope that we envisaged there? Second, at what operational capacity are we presently functioning? And at what ability will we be able to participate in TBCB projects if they are announced over the next couple of years vis-à-vis other private players? Thank you.
Yes, normally, these are our guidelines of INR 37,000–INR 45,000 for next year, and similarly for capitalization INR 30,000–INR 35,000. Normally we have these targets, and we normally surpass our targets given to us. We will change in between the years whenever, suppose, we meet after six months of FY 2027, then accordingly we can change our guidelines depending on the progress on ground. As of now, we are giving this guidance only. Regarding your next question, I think we have sufficient funds to complete the projects which are going to be available for bidding in the next two years, three years, four years. We don't see any challenge in this regard.
Sir, what about the execution abilities? In that context, will we be able, like, with the execution delays, if at all any that come up at end?
There have been concerns about execution delays as we told that there were issues of transformer supply. There were issues of RoW. There were issues of this skilled manpower. All the three issues have been addressed. First, RoW issue has been addressed by Government of India by announcing the revised guidelines for compensation. For land diminution value, they have increased to 30% for rural area, 45% of semi-urban area, 60% for urban area, metro cities, and at market rate. How market rate is to be decided, that is also now. A procedure has been given by Ministry of Power.
We don't expect that there will be the severe RoW issues, because if we pay compensation as per these guidelines, RoW issues will be taken care of. It cannot be reduced to zero. Definitely there will be some issues, but now we have sufficient experience considering last three to four years of our struggle. Now we don't see much problem in this area. We have a dedicated RoW cell in each region. Even at corporate office, we have a big team of RoW who are taking care of only RoW. We have now trained the manpower to handle these issues. Second issue was skilled manpower.
We have already five numbers of skill development centers and which are training about 50 fitters or technicians in three months. Now two more are coming, so we will have almost seven skill development centers. 350 technicians and fitters will be trained in three months. 350 into 4, almost 1400– 1500 technicians or fitters will be trained, which will make almost 100+ erection gangs each year. More and more gangs will be available for execution of transmission system. This manpower shortage or shortage of skilled manpower will be taken care. We don't see any problem in this area also.
Similarly, for transformers and reactors supply and other equipment supply, all manufacturers are now going for augmentation of their capacity. The augmentation capacities will be more than 4 lakh MVA capacity each year, and that, which will be more than the demand of these equipment. There also, we see that this challenge also will be met. Moreover, Government of India is very proactive now, and wherever problems are there, it is being addressed by Government of India. We don't see any execution challenge in next 2 years or 3 years.
If I just understood correctly, what you've said is that you may revise your CapEx guidance further. As of now, you are sticking to that.
Yeah.
Second, that you don't anticipate any execution problems that we were facing in the past couple of years going forward into the next few years, and you will be in a position to take on additional orders and at least bid for them and compete for them. Correct?
Actually, why we have given this INR 37,000 crore or INR 35,000 crore, we have given considering whatever projects we have in hand. TomorRoW, how many projects are going to be with POWERGRID that today we don't know. Suppose tomorRoW I win more projects, so definitely in FY 2026 and FY 2027, I will invest more money. Similarly, in 2027, 2028 also I will invest more money. Our CapEx may go high. Because considering projects in hand, we have given visibility based on the projects in hand. Whatever projects we are sure that these will be with POWERGRID , considering that only we have given this guidance.
Okay. Thank you so much, sir.
Yeah. Next we have, Mohit Kumar. Please go ahead.
Please carry on.
Yeah. Hi.
Mohit, yeah.
Good morning, sir. Am I audible?
Yeah, please carry on.
Yeah. Sir, so my first question is: Is it possible to define the savings from the new corporate structure? Why do we have two new SPV rather than one SPV?
Also this, does this mean that the new assets will get built in these two new SPVs, and we won't require a separate licence for each SPV?
Actually, for a SPV, as per the DIPAM guidelines, our limit for each project was initially INR 5,000 crore. We could merge only SPVs as per this equity should not be more than INR 5,000 crore. Now this guideline or this limit has been increased to INR 7,500 crore, so accordingly we can merge more SPVs. Depending on the size of the SPV. Okay. More and more SPVs are like merged, and still we are discussing with DIPAM. The other day we had meeting with DPIIT also, and now we are asking that this limit should be increased to more than INR 10,000 crore, even INR 15,000.
They are considering even INR 15,000 crore. In case it is further increased, then more and more SPVs will be merged into one.
Understood. Any quantum of savings there which are possible? Do we need any approval from CERC for undergoing this change?
Satyaprakash Dash?
Yes, sir. Yeah, I'll take this, sir. Sir, for any merger, we used to take the approval of the regulators. Yeah. Last time also, when we merged these 19 companies into two, we took the approval of the regulator in addition to DIPAM. Similarly, we will approach our administrative ministry, who will forward it to DIPAM, and then simultaneously we will approach the CERC as well as the MCA for these type of mergers.
Is it possible to define the savings, sir, saving quantum?
Moreover, this is for administrative purposes and governance. We wanted to do this type of mergers more than any cost savings. Ultimately, the line has to function independently for any technical features that will remain as it is. The license, everything will remain as it is. As such, we have not quantified anything, but definitely this will be helpful in maintaining a lesser number of SPVs rather than. Because already we have 78, maybe going forward when, like, Chairman sir was projecting as, like, the pipeline of, like, INR 7 trillion–INR 15 trillion. Even if we have half of that, maybe out of 78, another 100 companies will be there.
That's mainly the focus is on to have a more administrative control rather than the financial savings.
Understood, sir. My second question is that the CapEx required to evacuate RE capacity. CEA has come out with a paper that the CapEx requirement is overall INR 7.9 trillion or roughly INR 8 trillion. Is it possible to define the investment requirement to evacuate each RE capacity?
Okay. Let me respond. As I told that for next 10 years, we are on an average, we will have requirement of INR 60-70 crore. Considering even if we have, say, INR 70,000 crore . We will have somewhere about 70, means equity will be, say, 20% (16–20%) somewhere, we will have about a INR 12,000 crore requirement of equity. Today we have profit of INR 15,000 crore+, and as we go ahead, this profit will go to, say, INR 17,000 crore, INR 18,000 crore, INR 20,000 crore . Even considering our, the compulsory dividend payout, which is about INR 5,000 crore. INR 5,000 crore plus INR 12,000 crore will be INR 17,000 crore.
We are expecting our profit will be INR 17,000 crore by the time we require INR 60,000 crore as CapEx. If we require INR 70,000 crore, then maybe 14,000 crore will be the CapEx required for equity. 14 plus 5, we will have 19,000. Before that, our profit is going to be more than INR 19,000 crore. We don't see any issue in meeting this challenge. Even if there is a challenge, the equity, we can reduce less than 20%, it can become 19% or 18%. We don't see any challenge in meeting the CapEx requirement as per the guidance given by Ministry of Power or CEA.
Understood, sir. Thank you.
Okay.
All the best.
Yeah, please carry on.
Hi, sir. My dear compliments and regards to CMD sir for your dedicated service to the nation, leading POWERGRID , and my best wishes for future as you carry your super ambitions on the company. Sir, I have two questions. The first-
Yes, please carry on.
The first question is in relation to the Brahmaputra scheme-related transmission investments of INR 4 trillion and the OSOWOG, which by implication is about INR 3 trillion. When do you expect associated projects under both these schemes to start getting awarded? When will the tendering activity for this start, given that Brahmaputra at least 2035+, but when will the awarding start for this? That's my first one.
Excuse me, can you repeat a little slower? There is some disturbance. Yeah.
My first question is in relation to the Brahmaputra scheme-related transmission investments of INR 4 trillion and the OSOWOG related investment requirement of INR 3 trillion plus. When will the project start getting awarded under these two schemes? Or if-
The Brahmaputra, as such, like, already a transmission system has been already planned and one project is already available for bidding. Like, Niglok is a station in Arunachal Pradesh, which will be connected to this Lower Subansiri to our Vishwanath Chariali point, and it will be also connected to Upper Arunachal Pradesh. Because Arunachal is having lot of hydro potential, so it is almost + 35,000 MW hydro potential is there. Number of HVDC stations are planned. HVDC schemes are planned at 800 kV. Total outlook for Brahmaputra basin is INR 6 lakh crore. I am considering only INR 4 lakh crore up to 2035.
Okay, that is regarding this HVDC. Already, this is planned by CTUIL and CEA, so maybe in next one year or so, these projects will be available for bidding. Similarly, for One Sun, One World, One Grid, yesterday also our Honorable Minister has mentioned that these projects with Oman, UAE and Saudi Arabia. These are being discussed at government level. We are expecting that maybe another two to three years, these projects will also start materializing. By 2035, these projects should be available for execution. That is why we have considered these as a part of this INR 15 lakh crore.
My second question is on the Leh–Kaithal project, which is part of your work in hand of INR 1.48 lakh crore. That is almost close to INR 240 billion–INR 250 billion rupees. When is the sort of execution on that part?
Sumit, I think, it seems like, you know, your network is a little unstable. Your voice is not clear.
Sorry. Am I audible right now?
You are audible, but the voice is not very, very clear. Okay, you can go ahead. Try.
Just on the Leh–Kaithal project, the question is that this forms almost INR 230 billion-INR 250 billion in your work in hand of INR 1.48 lakh crore. When is the execution of this particular project now that it is not under HVDC? When is it likely to start? What kind of CapEx are you assuming for that project in FY 2027, 2028?
No, we told that we already have these projects in hand, so we are considering these only. HVDC, we have Khavda to Nagpur already. The one HVDC is there, which is being executed by POWERGRID , which is costing almost INR 35,000 crore. This is a part of this 1,48,000 crore. Moreover, this Leh–Kaithal is not part of this. Leh–Kaithal we have excluded from INR 1,48,000 crore.
Okay. That is very clear. Thank you.
Yeah. Thank you. Next, we have Abhishek Taparia. Request you pretty please introduce your firm name and then go ahead with the question.
Hello. I'm Abhishek from Emkay Global. My question is, what is the status of the ongoing CapEx of INR 9.16 trillion that was announced in 2023, which is the 2023 to 2032 plan? And now this new plan of CapEx of INR 7.9 trillion, which is from 2027 to 2036, which has been announced. Are we envisaging a revision in the existing plans?
Yeah, yeah. Because earlier this plan was up to 2032, now it is being revised to 2035. Now, because guidance or planning is based on the different conditions. Now, considering 786 GW of RE power or non-fossil power by 2035. This has been revised to 9.1. This INR 9.1 trillion or INR 9.1 lakh crore will be required up to 2035.
Oh, okay.
Earlier INR 9 lakh crore has been revised. Which is because.
Okay
... a lot of projects are already executed or they have been already tendered out.
Okay, sir. Thank you.
Thank you. Next, we have Mr. Christopher James. Please, introduce yourself and go ahead with the question.
Sir, thank you for your time. I'm Christopher James from 4D Infrastructure. Just one question as to what you see as your ultimate capacity to deliver, and you give that great example on your visible execution pipeline that says at an assumed 50% win rate, it could yield projects up to INR 7.5 trillion. To the extent you were successful in 50% or more, what is your true execution capability? You mentioned things like skilled manpower, but there's procurement challenges as well, and also your own balance sheet in being able to deliver these projects. Clearly things are done over time, but if we look at today and what you're able to deliver, what is your true capacity? Thank you.
In last 3–4 years, we have been doing CapEx of about INR 8,000–9,000 crore. Last to last year, we have done INR 12,500 crore. Last year we did INR 26,000 crore. This year we have done INR 35,000 crore. As the demand is increasing, demand for execution is increasing, our capacity is also increasing. We are continuously increasing our capability for execution. We are developing more and more vendors. We are developing more and more trained manpower, including our capability within POWERGRID also, we are continuously increasing. We are very sure that whatever challenge or whatever execution requirement will be there, we are going to achieve. From 8,000 crore– 35,000 crore in three years, which is almost more than 4 times.
We are very sure that whatever challenge is given to POWERGRID , we are going to achieve that.
That's right. To the extent that you had a higher success rate, it won't prohibit you from participating in additional bids?
Yeah. Because already, whatever projects we have won under TBCB, our winning percentage has been more than 50% till today. We would like to maintain that 50%.
Perfect. Thank you, sir.
Yeah. Thank you. Next we have a question from S. Praveen Vishesh. Please unmute and go ahead with the question.
Sir, this is Praveen here from PPFAS. I just wanted, your take on, I mean, last year we had seen a slowdown in project tendering, so I just wanted to unders... Hello?
Please carry on. Carry on.
Yeah.
Yeah. Yeah, Praveen.
Yeah. Last year we saw a slowdown in project tendering. Was it more on the ISTS side, or was it intra-state projects?
Actually, there have been some issues in planning of evacuation system from Rajasthan because initially the planning was for 115 GW from Rajasthan itself, and so far only 73 GW transmission system has been tendered out and most of this transmission system is under execution beyond 73 GW including two HVDC. One HVDC is from Barmer to Fatehpur, second is Barmer to South Kalam. Beyond this, through AC network, there have been challenges in studies as to how to evacuate this power.
There were some consideration for considering HVDC, but for HVDC, the landing point, say in Chhattisgarh or in Odisha, the landing point was the CTUIL or CEA was not able to finalize those projects because landing point was not getting finalized. Because landing point means there should be demand in that particular area. That demand was not getting finalized. There were some delays in this tendering of these projects or planning beyond 73 GW. Now CTUIL has come out with a number of projects even including AC projects in towards Chandigarh, towards Haryana, towards Punjab, towards Western UP, and even in MP.
Some AC network and also HVDC projects are being considered, and beyond which there will be 1,100 kV projects in Maharashtra and Chhattisgarh and in Odisha, that area. That means we will have this evacuation of power through HVDC. Further through 1,200 kV AC network, it will be further transmitted to this Maharashtra and to Odisha and Andhra Pradesh. These plans, in between there was some breakage. Now we are hopeful that it will be now available for bidding.
Sir, on RoW, how are things now? I think there was a major improvement in the last quarter, but now how are you seeing things? Again, just if you could recap, it would be great.
RoW, as I told that, it is a challenge. Always it is going to be a challenge, but there are, now methodology is already finalized, and we also know how to, now tackle these RoW issues. Our team is also trained, and we are able to manage now. Now you see in last six months after, government has, come out with the clear guidelines, we have, executed a number of projects. Similarly, this speed will continue now. RoW will come and it will get resolved with the help of Government of India. Our minister, Honorable Minister is very positive, so whatever problem is being faced by us, immediately, there is a good support from Government of India.
We are hopeful that whatever RoW issues are going to be encountered, there will be some solution and we'll be able to execute these projects.
Thank you.
Thank you. Next we have a follow-up from Mr. Rajiv Gandhi.
Thanks for the opportunity again. I just needed to know what we've heard is, you know, till date participating in inter-state projects. Now we intend to also participate in intra-state projects and also battery projects. If you could highlight some of these opportunities which are coming up. Also with the emergence of battery and BESS in a big way, how does it alter the transmission CapEx? I presume, you know, with battery you don't need to build as much redundancy versus a pure solar. If you could just highlight some of these, how is it changing on the planning? Thanks.
Yes, you told that intra-state and battery energy storage. Intra-state, we are participating, but generally intra-state projects are smaller projects, so we are not very aggressive in intra-state small projects because we have so many projects and because it will require similar effort to bigger projects. We are not very aggressive in intra-state. Regarding the battery energy storage, we are participating, but we are not able to win best projects because competition. There are a number of smaller players and we have won only one project. Now we are working out our revised methodology, how we can be more competitive. We want to have a tie-ups with the battery suppliers in advance so that our cost can be further optimized.
Regarding this requirement of transmission system, definitely if we had to increase the utilization of transmission system, battery energy storage system at the generating station itself or RE developer's station itself, it is going to be the requirement tomorRoW. Number of BESS projects are coming for this storage of energy which will be fed in the transmission system in the peak hours or in the evening hours. Demand is so much that transmission system is going to increase day by day. That is why CEA has come out with this INR 9.1 trillion requirement of transmission system by 2035.
Thank you, sir.
Thank you. Next we have Satyadeep Jain.
Hi, am I audible?
Yep, please carry on.
Sir, just firstly wanted to ask about the impact of the GIB court ruling on GIB on POWERGRID . Did it? Were there some projects that got cleared because of this, the Raigarh–Bhadla? Just trying to understand the increase in capitalization and all, how much of the impact was there on ruling and overall impact of POWERGRID on this.
We don't have any impact of GIB in Rajasthan or Ramgarh that area. Our projects were whatever projects, transmission projects were there, it is outside that area. Whatever guidance has been given by Hon'ble Supreme Court. In future, all projects, CTUIL is taking care that all projects are outside GIB area. We don't see any impact of GIB on POWERGRID transmission projects.
Fair enough. Secondly, just wanted to understand. There are a lot of these pending issues which would help clear up some transmission projects. For, based on what you're saying on improving skilled labor force, RoW issues, do we assume that new projects will have 2-year commissioning timeline? Because recent projects have taken 3 and a half years for AC. What is, based on what you see, the timeline commissioning for new projects for AC and HVDC?
Based on our experience, we have given feedback to Government of India that 18 months or 24 months is not feasible. This timeline is not right. At least we should get 30 months or 36 months for this transmission project to be executed. You see that whatever projects are coming now. They are either 30 months or 36 months. Now we will not have this 18 months or 24 months. By that time, 30 months or 36 months, we will be able to execute these projects in that timeline. Whatever delays you have seen earlier, these were like Bhadla-Sikar, Bhadla- III to Sikar, Bhadla- II to Sikar- II. These were all 18 months. Narela–Khetri.
18 months were not possible to be executed considering these RoW issues and the supply chain issues.
Just quickly we'll take, sir, the last one question. Next, we have Parth Nanavati. Please go ahead with the question.
Hi. Thank you so much for taking my question. You know, congratulations on, you know, out-delivering again. My question is more macro in nature. Just wanted to understand, you know, given we're sort of sitting in an El Niño situation, where temperatures are expected to go up materially, how should we think of grid utilization, part one. Part two of the question is, you know, vis-à-vis last year, what are we sort of thinking of in terms of power deficit, both from gas and hydro, given there is news flow that snow build-up, especially in hydro, is not adequate? Gas, of course, we know from the Middle East situation that we are going through. That's it from me. Thanks.
Yeah. In this regard, our Hon’ble Union Power Minister has reviewed the situation. Yesterday also there was a review meeting by Honorable Prime Minister regarding this energy challenge and energy crisis, possible energy crisis in India. In turn, our Hon’ble Union Power Minister has taken a review of all the stakeholders like Ministry of Power, CEA and NTPC and other things. As per the discussion, as per this Grid Controller of India Limited or CEA, we are going to have almost 270 GW requirement in May or June, and for which we have sufficient resources to meet that requirement.
Like last to last year, we had about 250 GW of demand in summertime, which was on, say, I think May 24, 2024. Again, now in May, June, July, that time, this demand is going to increase somewhere about 270–75 GW. We are prepared, grid is prepared to meet that requirement as per the discussion and review taken by our Hon’ble Union Power Minister .
Thank you. Sir, we will take last question from the line of Mr. Shirom Kapoor.
Hi, sir. Thanks for the opportunity. Just want to ask you on this new INR 7.9 trillion plan that we are talking about. You know, you mentioned that the earlier INR 9.1 trillion plan has now been revised. On your earlier call, you had mentioned that of that INR 9.1 trillion, around INR 2.4 trillion has already been bid out, and over the next four years or so, we could expect another, you know, another INR 4 trillion worth of projects coming into the bid pipeline over the next four to five years. Sir, how has that changed with the new revised sort of transmission opportunity from FY 2027–2036? One, could you know, comment on of that original INR 9.1 trillion, how much has already been bid out?
You know, how much of that has been, you know, that requirement has been met? Subsequent from here till FY 2036, how you see the upcoming bid pipeline over the next 3–4 years? Whether there's any changes in that given the new plan by CEA?
As per this report, which was released on March 19 in the Bharat Electricity Summit, this report is recently prepared. Whatever ongoing projects were there earlier before this report, they will continue to be there. Additional projects which have been identified, we, the CTUIL and CEA will further work out on these projects. When they will be available, that will be known only after some time. Today I cannot comment on that. Regarding this, let me clarify that ₹1.48 lakh crore work in progress is considering that Leh–Pang. Earlier we have considered Leh–Pang that Pang–Kaithal project, HVDC project, into our account. But now we are not.
We are excluding that project because it's still in fluid condition because in between there was a discussion that it will be changed to AC network. That is why we have excluded from our guidance. Now 148 is including CWIP, so it is not excluding CWIP. 148– 49, so we have about INR 1 lakh crore projects practically for CapEx. Unless and until we win more projects or unless and until we get this Leh–Pang Kaithal AC or HVDC project given to POWERGRID again. That clarification I wanted to give.
Sure, sir. You know, the number that you mentioned in your presentation that from FY29– FY36, you're expecting average CapEx of about INR 40,000 crore and capitalization of INR 35,000 crore.
Yeah.
You know, depending on the bid pipeline. What is the kind of bid pipeline that you are looking at least in the near term for the next 3–4 years? You know, normally you give a number. Last time you mentioned about INR 70,000 crore worth of projects are in the near-term pipeline and another 3.6 lakh crore over the next 4 years, where you might average INR 90,000 crore worth of bids over the next 4 years. Is there any update to this pipeline that you are seeing? In terms of annually, what bids are coming up, what projects are coming up for bidding?
After February 2, because I told that this report is recently announced and this is released recently only. Any change because of that will be known after some time. We are maintaining whatever we have discussed on February 2, in Mumbai during that investors' meet. It will remain unchanged as of now. It may change after some time.
Sure, sir. I think this was quite a detailed presentation and, you know, updating on what is the development at POWERGRID . We have come to an end of this webinar, and I'll hand it over the mic to you for any closing comment from your side, sir.
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Sure, sir. Thank you. With this, the webinar on Power Grid Corporation, and you may all disconnect the lines now. Thank you.