Wish all of you a very happy Diwali and a prosperous New Year in advance. I would now take your permission, sir, to start the proceedings. On behalf of Power Grid Corporation of India Limited, we welcome you to the Select Analyst Meet, organized to discuss the company's performance and the way forward post the declaration of financial results for the second quarter as well as the H1 that ended on 30th September 2026, and to interact with the analysts out here. To formally commence today's proceedings, I now invite Shrimati Anjana Luthra. She is the Company Secretary and Compliance Officer. She will introduce the dignitaries on the dais and also initiate the proceedings. Over to you.
Yeah. Thank you, Bakul. Good afternoon, everyone. Today we have our senior management team of Power Grid with us to discuss the company's performance and business outlook post the declaration of Q2 H1 FY 2026/27 financial results. I would take this privilege to introduce our senior management team, to start with Shri Vamsi Rama Mohan Burra, Chairman and Managing Director. Dr. Yatindra Dwivedi, Director Personnel. Shri Amol Taori, Director Finance. Shri Akhilesh Pathak, Director Projects. And Shri Pankaj Pandey, OSD Operations. So, we will commence today's proceedings with a corporate video of the company. Can we have the video, please?
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Thank you. Now I invite Shri Vamsi Rama Mohan Burra, CMD Power Grid, to share his opening remarks and also presentation on the company. Over to you, sir.
Good afternoon, everyone. I am extremely pleased to be before you along with my entire board, with a newly minted Director of Finance, Amol Taori, and Director Projects, Pathakji, and our Director of Operations Designate, Pankaj Pandey, along with our Director of Personnel, Vediji. I would like to introduce, once again, a high-quality infrastructure company entering into its next phase of growth. That is what Power Grid is. Riding on our experience in maintaining one of the largest transmission utilities in the world and aptly recognized in the highest quadrant in terms of maintenance of the transmission systems. This is what the company, what we want to introduce Power Grid as. With a substantial and strong investment pipeline owing to the energy transition and renewable energy integration, and more importantly, the intense growth of electricity.
I should say more appropriately, electricity-intensive growth, what is happening now, both in the industry, agriculture, transport, digitalization, and all these efforts. It is, by and large, it is electricity-intensive growth, which is going to propel the growth of the generation and the offshoot as transmission, because transmission is a common denominator for the movement of electricity from point to point. The mobility, as I always say, the mobility to electricity is given by the transmission line or the system only. That is the industry where we are working in. Known for its financial discipline and highly competent and dedicated workforce. Execution capability, including 765 kV order, one of the highest transmission voltage levels, and also the HVDC projects, remotely or in one of the most toughest conditions. In one single shot, what we should say, the projects are being commissioned.
Opportunities for sustained earnings and expansion and roadmap for long-term growth and shareholder value. Wanted to place this before you, so I take this opportunity to run a small presentation on this. The disclaimer over here. We will be trying to cover the highlights and overview, execution and operations, competition, what is there in the sector, order pipeline, on outlook, financial performance, sustainability, and recognitions. In this pattern, we would like to go forward. As you are aware, we are about INR 3.29 lakh crore of the fixed assets, going much beyond the INR 3 lakh crore, which was there some time back. 1.87 lakh circuit kilometers, almost 6.5 lakh MVA transformation capacity, and availability continues to be in the order of 99% plus. The shareholding pattern continues to remain the same in terms of the shareholding, INR 2.42 lakh crore is the market cap.
The credit profile on the domestic front, highest safety, and on the international front, at par with the sovereign rating. The SPV rationalization also has been undertaken as part of governance, given the nature of the TBCB projects, where every time we win a project, a new TBCB company adds up to us, a new SPV, so we try to consolidate them. One of the fastest approval in the CPSU domain is what we have got recently. So 28 SPVs have been merged into two SPVs so that it is better way of governance of the projects. Major elements which have been commissioned in Q2 FY 2027, 981 circuit kilometers of transmission lines and 14,600 MVA transformation capacity.
Importantly, the transmission lines are Koppal and Raichur in Karnataka, Bidar to Maheshwaram, a link between the Karnataka state and the closer to the Hyderabad-Maheshwaram, and Sikar-Khetri, an important line in the Rajasthan belt. Substations are new substations, Koppal and Bidar, and on the 400 kV, Bikaner to Bikaner in Rajasthan. If you look into the H1 FY 2026/2027, 2,600 circuit kilometers of transmission lines, 25,000 MVA capacity what has been coming over there. The complete TBCB SPV projects which have been commissioned over here are the Ramgarh- II transmission system and the Bidar transmission system. So, like in the TBCB project, multiple elements are there. We are saying that the entire project what has been entrusted to the TBCB has been completed, not one or two elements under the project. All the elements which are concerned with that, these two projects have also been commissioned.
Apart from that, after September 2026, major elements commissioned are the Koppal to Narendra line, one of the toughest and challenging lines, and the Koppal to Gadag, linking two of the pooling stations for the RE power, and the Gadag substation, which is of 400 kV. The project execution, CapEx, and capitalization, the guidance as what we have said last year was INR 37,000 crore. We are moving up, and then we should be able to catch up with about INR 40,000 crore. So INR 37,000 crore- INR 40,000 crore is the CapEx, what we are looking at. The capitalization guidance would be about INR 25,000 crore-INR 30,000 crore. The availability, as I said, would be continuing to be in the highest order in terms of 99.81%, and tripping per line less than 0.2, that is 0.17 where we are standing. This is the line of Srinagar to Drass.
This is a line which is connecting to the Leh. Leh is presently connected with the Power Grid transmission line, a radial line which is there, one of the toughest location where these lines have been built. Recently, on 29th of October, there was a challenge in this line having tripped. During, at this, at about 11,800 feet and -10°C , this is what Power Grid employees have been working to make sure this line was restored so as to bring power to the coldest part of the India, was done in record time over here. We have also upgraded our posture in terms of our visibility of our assets in terms of National Transmission Asset Management Centre. We have upgraded it, which requires as per the timeline, which is to be done every time we need to upgrade the system.
This has been upgraded completely. These are the real pictures of it. We also improved upon the posture of cybersecurity by operationalizing this i3 SOC, this Security Operations Centre of Power Grid. On the capability in technology, Power Grid has been closely associated with one of the OEM and has designed and finally got this product out, a 220 kV mobile GIS. Last time it has been said, but this time it has been also put to use. It has not only been developed, but also has been deployed in one of our substations. On the capability front, as we understand, HVDC is one of the critical technologies which is required for evacuation of power in long distances.
Power Grid, under the aegis of Ministry of Power, along with MeitY, that is Information and Technology Ministry, come together, and we are going ahead in trying to indigenously design and develop a silicon carbide MOSFET. For this, a lot of work has already been done. A good amount of traction we see on this development front. About 13,000 SiC power modules are expected to be developed, which will be deployed in a given substation of Power Grid. This also has been the decks have been cleared for this, and we are eagerly looking for the participation, which is quite a good number where people are keen to develop this within the country. This will actually improve upon the indigenization of the technology within the country. These are VSC-based power modules, what we are working upon.
And as well as the operations front, we also deployed the insulated aerial work platform, which will be giving that much ease and also minimize the outage requirements. We have also indigenously, in the country, developed a 100 kg payload capacity for a drone, which is essential for us to take over the material or such other things, including steel and cement, to remote areas where we need to erect it up.
This has already been successfully done. We are deploying this as well. The TBCB outcome for the half yearly 2027, nine projects under the ISTS is what Power Grid has been successful, and two projects under the intra-state. The intra-state stands about INR 7,600 crore is the annual tariff, and the intra-state is about INR 450 crore annual tariff, taking the total to about INR 8,107 crore as annual tariff in the first half of this financial year.
And this, it's interesting to note that we have also got the HVDC project of Barmer and also deployment of the first synchronous condensers, about eight synchronous condensers. The first series of synchronous condensers will be deployed by Power Grid. Looking into the order pipeline, the TBCB stands about INR 1.95 lakh crore, RTM about INR 0.25 lakh crore, and with the total standing as INR 2.20 lakh crore is the total works in hand for Power Grid.
The Pang evacuation scheme is what people were keen to know. This was initially envisaged under the HVDC route, but given the challenges in terms of the altitude, ultraviolet rays, and also the cosmic rays, the complexity of deploying such technologies at high altitudes was reviewed, and an AC solution has been identified. It has been actively discussed in the recently concluded NCT meeting, which will be standing at about INR 31,000 crore.
The other business which Power Grid undertakes in terms of the data center, storage, and smart meters, about INR 0.05 lakh crore, INR 0.04 lakh crore. The ones which are going to come in future under the TBCB bidding pipeline, interstate and intra-state put together is about INR 63,000 crore, which is already under bidding, with most of it under the ISTS and a small part under the intra-state. And to be floated, this number is only of the interstate, INR 4,147 crore is of the interstate. A good number of intra-state projects are also underway. So the bidding pipeline is about INR 67,000 crore. Added to this, with the Green Energy Corridor-III , which is about INR 1.36 lakh crore for the intra-state. This is an intra-state project and INR 50,000 crore for the BESS.
Most of it would be coming under the TBCB route, meaning that there is a good amount of opportunity for the participants to work in this direction. This will be facilitating about 135 GW of RE across the states. This was also an opportunity for the transmission companies. Robust collections revenue, as we are very pleased to inform you that the billing and the realization is always one of the finest what we have been doing. And the number of outstanding dues is also more than 45 days has come down significantly. And the receivable dues, as you see from the graph, stands about 10.54 days. So both in terms of our execution capability, the order book, the pipeline, and the collection part, all these parameters, we thought I should place it before you all.
The financial performance, in the consolidated front for the quarter, the profit after tax is 8%, which has already been shared with you, and the PBT is at about 6%. We wanted to give you a feel as to what has happened in this entire part. On the operating income, INR 887 crore on the operating income is the plus, that is more than 7%, 7.7% is the growth on the operating front for transmission.
Because of the regulatory part, this is what last time also we have taken pains in trying to explain you, that it is the regulatory assets which we have, the trajectory of the regulatory tariff is that -INR 354 crore is on account of the regulatory tariff which moves there. -INR 193 crore are just one-off kind of things which we would be getting because of the difference in the order from the regulator.
The time taken by the regulator to give the orders and the differential tariff is that INR 193 crore and such other aspects. Effectively, the growth stands about 3%, while the operating income, as you see, stands at about 7.7%. As far as PAT growth, again, even here we see a 9% growth in the PAT, but because of the regulatory asset, because the trajectory of the tariff for the regulatory assets, that is the one which has an impact on the income. But on the PAT, you see it has a 1.7%, and the other issues are -INR 82 crore, and put together it is 8% over here. So translating that about 8% of the top-line growth and roughly the 8% under the, even on the PAT. On the standalone, we see that it is about 7% for the PAT on the standalone front.
The gross fixed assets, as on date, about INR 2.8 lakh crore standalone and consolidated INR 3.29 lakh crore. The debt equity is of 59.41, which is having enough room for us to actually work upon the massive projects pipeline which we are envisaging, one is to 1.5% . The other key financial information, interest from subsidiaries increased from INR 794 crore to INR 1,201 crore, incentive INR 159 crore-INR 98 crore, dividend from JVs from INR 24 crore to INR 60 crore, dividend from subsidiaries INR 300 crore to INR 345 crore.
So these are the figures, other key financial parameters. We also tied up with the JBIC green loan for about Japanese yen, about JPY 80 billion, term loan from SBI about INR 10,000 crore, UBI INR 5,000 crore, and bonds about INR 2,000 crore. Something more is also in offering. On the telecom and consultancy, we have about INR 300 crore, INR 283 crore under telecom, and on the consultancy also close to INR 400 crore.
This is the kind of revenue what we are getting from both these locations, because we are riding strong on the telecom footprint, what we have across the country, and also our expertise in providing the consultancy to within the country and beyond the borders. This is the data center. Almost this is the shape what it is standing now as we speak. We are shortly going to also bring this data center into operation. Maybe in terms of weeks, we should be bringing this into operation. It is 100% Indian-owned infrastructure by a government company. Seven-layer security system, about 1,000 racks and 14 MW. It is a commercial data center to be utilized under a Tier III certified data center. Expected commissioning, as I was saying, in a couple of, in few weeks, we are going to get this through.
It is a MeitY empanelled cloud service provider and a sovereign cloud. This would be the characteristics of this data center. Sustained commitment to ESG on one of the targets which we have set for ourselves, that is 50% from RE, this already we achieved last year itself, and zero waste to landfill, 90%, more than 90% has been achieved. Net water positive, we are more than 50%, and net zero target, we are very well onto the track there. The CRISIL ESG score has moved us from 58 up to 66. We have moved up the ladder, and the same thing with NSE Sustainability, we are standing at 70.
As far as accolades, we are selected as the finalist in three categories in S&P Global Energy Awards, one of the finest awards in this industry, on Excellence in Energy, Infrastructure Project of the Year, Targeted Program, Corporate Impact Award, and TERI- UNDP 5th Water Sustainability Award also has been taken up by Power Grid. Thank you, everyone. Thank you.
That was a fantastic overview, sir. We now move on to the next segment, which is questions and answers. A gentle reminder for all of you to raise your hand, introduce yourself, and the house that you. The first one is over here. We will try our best to ensure that we answer all your questions. In the interest of your own time, we will not be taking repetitive or the duplicate questions. Over to you, sir.
Hi. Good afternoon, sir. I am Mohit Kumar from ICICI Securities. My question is, I think that I saw on the slide, I think I have cut the guidance for capitalization from INR 30,000 crore to a INR 25,000 crore- INR 30,000 crore range, right? My question is, are you seeing more challenges on the ground, and is it related to supply chain issues or with the land acquisition or right-of-way issues?
See, as you understand, the Ministry has come up with the guidelines for providing compensation to the landowners. This was the way how we had to go forward, which was asked also by everyone. A set of guidelines have been issued, notified by the Ministry of Power, wherein its market-based compensation is what they are looking at it. A few of the states have adopted, and we will have to work through the process. A couple of states which have adopted, we will have to work through the process, which they are almost done. With that coming in, the right-of-way will be that much eased. With the compensation being paid to the landowners as per the market rate, we see that is going to ease the situation, and that is going to improve upon the fronts which will be available for building up the transmission lines.
While the targets, what we are seeing is INR 25,000 crore-INR 30,000 crore, there is no challenge as far as most of the equipment, absolutely no challenge in terms of supplies part of it, we do not see. With the transformers and all, which were sometime back was a challenge, no longer we with the active approach what we have undertaken in trying to bring a bulk procurement what we started. That has helped to bring a certainty to the industry of, for transformer manufacturers, and we are getting supplies at their disposition. It is basically the fronts which have to be made clear by the state local administration, should there be a pushback a little. That is the reason we are seeing, but otherwise, most of the projects what we are planning will be on time.
Should things go forward right, then we should be able to catch up with one of the finest figures.
My second question is, given the fact that you are sitting now on INR 2.2 lakh crore, and the BESS is also coming up, so your total order book will be roughly around INR 2.5 lakh crore. How do you expect the CapEx commissioning will move in FY 2028 and FY 2029? Just how the CapEx and capitalization and CapEx expenditure will move in FY 2028 and FY 2029 based on the current order book?
Yes. You see, these projects, as you see, we have also secured a couple of projects recently in this pipeline. So with the initial expenditures on the projects and all, they are good, and the CapEx will be continuing to be in the range much beyond INR 40,000 crore.
Is it possible to put numbers on the CapEx and commissioning for FY 2028, FY 2029?
Definitely they will be very encouraging, let me say that. Yes. Not very specific numbers over here, but you see with the massive HVDC project with us, with a lot of synchronous condensers also there, and a couple of intra-state projects which are there with us, the numbers are going to be much better only.
My last question, sir. Is it possible
CapEx, one also, another issue also what I would like to draw your attention here, with the market rate being played for the compensation, land compensation, that is also a component which is going to improve the, drive the CapEx up. That is the reason we need to identify what will be the quantum of that element, which is unknown, which as we move forward, the clarity will be coming that much. So the CapEx is going to increase.
And just my last question, is it possible to share the gross block of TBCB projects at end of Q2 FY 2027, and the run rate EBITDA for that asset? Is it possible?
Yeah. So basically, if you have seen, we have started giving the breakup between the operational income going up, and mostly you can see it's mostly because of the TBCB income. Exact numbers with respect to the gross block on TBCB and EBITDA margin, normally that's what normally we don't share because of competitive reasons. But then, we have given the bridge, that bridge is mainly on account of TBCB because you know, the acting projects as such are not coming down. So, I think that bridge should, which was not there last quarter, should be helpful this time to figure out the numbers.
Thank you.
We have given you the feel as what is the operating income primarily what we have shown under the transmission bracket is that of TBCB.
Understood, thank you.
Fine, Mohit, thanks .
Thank you and all the best.
Thank you.
Sumit Kishore from Axis Capital. You mentioned that the annual tariff won in H1 FY 2027 is somewhere around INR 8,100 crore.
Yeah.
What is the associated project cost for these set of projects?
Each of the project is quite different.
Cumulative project cost.
I think we will allow that. You can estimate that. This is the costing part what is going to be done. This is entirely based on the public domain estimates.
See, the idea is to gauge whether the flurry of project wins that you have had-
We have given you the quantum of order book and pipeline what we are giving you, right? About INR 2.2 lakh crore. In that we said primarily it is TBCB. That could give an indicative cost as to what kind of a project which are already in the pipeline, also accommodating for these projects for which tariff has been set. As a whole, this is what it is. Whether we have won it this quarter or previous quarter, put together we have about INR 2.2 lakh crore of projects which are being built by us.
The idea is to gauge whether the IRR profile of the newer TBCB projects and the larger ones that you have won is similar or better than what you had won earlier.
It would be in the best interest of everyone, these numbers are there. I can assure that.
Okay. One more question is on HVDC project pipeline hereon. You know, you have won a large HVDC project. What are the next few projects which are likely to come under tendering, and what is likely to get awarded, say, by FY 2028, 2029? Do you have any such sort of visibility that you can share with us?
Okay. As you understand, CTUIL is a separate entity which undertakes the planning, CTUIL and CEA. Having said that, a good number of projects have already been envisaged under the HVDC front. About 22 projects of HVDC, both domestic and the international connection- projects in about 127 GW, I'm understanding. They're both in Brahmaputra basin, and also to evacuate power from the Khavda and through the Rajasthan areas to the mainland. These are the HVDC projects which have been planned, and from Brahmaputra basin. Exact timeline and all, once they get mature enough, which can be placed in the public domain, I'm sure that will be coming up. Presently, it is not so, but then there are a couple of projects which are being actively being considered.
They should be placed under the bidding route or maybe being discussed actively into the NCT, which would be obviously known. That will be the time when we are sure of what project is going to.
Can two projects get awarded in FY 2028?
2028, maybe yes. With the quantum of generation coming up massively in these locations, both in Khavda and Rajasthan, they should be working on that. FY 2028, yes.
Yes.
FY 2028 is a big thing from now what we are talking, one and a half year. It could happen. It could happen.
Thank you, sir.
Namit. Yeah. Namit Arora.
Hello. Yeah. Thank you for the opportunity. Good afternoon, sirs. Namit Arora from Indgrowth Capital. Thank you for a very insightful presentation. My question is on the new initiatives, especially data centers and BESS. I understand in a few weeks you will be commissioning this particular data center. It has all the sovereign specs. Could you give us some more background on what are the future plans for further activity on the data center side, some indication on timelines and the capacities you are considering?
Okay. You see, while we are a transmission company, we see a good opportunity in the communication front. That's the reason Power Grid is having a decent position, a niche position in the telecom sector. Power Grid provides bandwidth to one of the major players, OTT players, and also for the government entities. Power Grid provides the telecom infrastructure, the bandwidth. Having said that, both being in the power domain as well as the communication domain, we moved into the data center domain, because as you see, data center is measured in terms of the power, megawatts, and also we find that we understand this business. We have a good strength of IT team also with Power Grid, and there is a lot of domestic requirement. In-house requirement is also substantial.
Keeping that and also the sector's requirement, we found that there is a good amount of space which is left untapped, which is owned by a government company to be provided to government companies or others for both of them. We found an opportunity over here, and we christened this as our first data center and as a pilot data center so that we can actually work upon ourselves directly. This particular data center primarily was done by the Power Grid engineers predominantly over there. This data center in our own premises in Manesar, this has been done. Since the land was a part of the substation, a little initial challenge, I am talking about four to five years ago, in getting the clearance from the regulators and all, that is done. The pilot data center is standing. It is fully ready now.
We are just looking for an opportune time to introduce that into the market. As far as the other projects, we are also ready with another data center in the southern part of the country to have a different location. We already secured the land over there, and we are also actively pursuing the potential in other locations. But we wanted to first get this pilot data center, the complete grip of that data center. So, as far as the future plans are there, we are very excited about it. The first data center of Power Grid owned by government. Because we also have the telecom connectivity, the understanding of the power sector, a good strength of the IT engineers in Power Grid, and in-house requirement itself, we see a great potential in this data center over here.
Thank you, sirs. All the best for the imminent commissioning of this data center.
Thank you.
Thank you. Sir, my second question was on BESS. You mentioned about it in one of the slides.
Yes.
Do you foresee that going forward also that would be an integral part and you will see a lot of these integrated initiatives?
One is in isolation where the states, given the kind of VGF which the Government of India is giving, few of the states have embarked upon it. Quite a little challenges in that trying to actually be reality, the battery part. A good potential in the country. Having said that, the regulator in a couple few months ago has come up with the regulations, modified the existing tariff regulations, wherein they came up with the option of an integrated storage system. These systems, that is the storage systems, can also be developed by the transmission service provider under the Section 62 route, that is under the RTM model. We are also pursuing actively, and we got the clearances from the northern region and the western region. We filed our petitions before the regulator.
Should there be a requirement for them to have a storage need, which is there very much over there, we see a good traction on this front, wherein we will be able to develop the storage facilities under the Section 62 route, under the RTM route, which will be available for the grid stability. This will be very helpful over here. We are ready with that. We are ready with that solution. This can open a new window for Power Grid to enter into the storage systems. Because under the 62, we can actually create an ecosystem for subsequently being scaled up to the competitive nature. We feel that this is a good opportunity for us to work along with all the stakeholders so that we can improve upon the storage requirements of the country.
Thank you very much for the detailed responses and all the best to the entire team.
Thank you so much.
Thank you, sir.
Over here. Yeah. We will get it from your right side.
Yes, sir. Sir, this is Atul Tiwari from JPMorgan Research. Sir, just two questions. Sir, first is on the right-of-way issue. The right-of-way issues we thought had been broadly resolved because I think in the previous couple of analyst meets, it was communicated that, you know, the system has gone through the necessary adjustments, you know, and the new, you know, rules are in place. But it does look like that the issue is still dragging on. Could you please elaborate on this, that when do we expect the final resolution so that we don't have these kind of negative surprises on the capitalization front? That is the first question.
The second question is that in your work in hand, INR 2.2 lakh crore, how much will be the transformation capacity that you will need, and by what time you will be able to award it on your transformer vendors?
Second question part of it, yes, we are working on the bulk procurement model. Anticipating the requirement, existing in hand, put together, and then we are working upon this. We are very well comfortably placed in terms of our orders, and we are moving very, very comfortable in terms of not only inviting the tenders, placing orders, and also obtaining the units also on time. We are not finding much of challenge as far as the transformers go there. Coming to the right-of-way, as you all must be aware, prior to 2017 and all, their compensation was paid only limited to the damages which were occurring for the crop or any other particular, maybe a building or something, only damages what have occurred. That was the only compensation what was envisaged under the Section 164 of the Act.
Thereafter, the compensation towards the land which was getting damaged, the diminution value of land, that one between the towers and across the corridor. Just imagine, between the towers, as you see in the picture, in between the four legs of the tower, and from tower to tower, there is a corridor again. So there is a significant amount of land apart from the crop. Crop was paid, but the land compensation, there is a challenge, because you need to identify the exact landowner over here. And land being a state subject, while we have earlier said that the guidelines have been notified by the Government of India, guidelines are notified by Government of India, but will have to be adopted by the respective state, which is going to notify those guidelines. Such notifications will then be applied.
So few of the states have been taking up this new model, wherein there is an effort which is being made to identify the market rate. That particular unknown factor of what is a market rate in a given area, so they are working upon that. There is an independent market values are being appointed. Their averages, I mean, different solutions are being thought of, that is as per the guidelines, and the states are adopting it. This particular process will have to culminate so that we are able to identify the appropriate rate so that it can be made payable to that landowner. Identification of landowner is also an issue over here.
Unlike crop compensation, where there could be a farmer who must be tilling that soil, but here identification of the landowner, the real owners in terms of brother, son, and all, we have to undertake all that exercise. That we have almost digitized. Power Grid has also, parallelly we have digitized all that activity also, so as to have a clear track as to what's being paid across. Power Grid has been working on this.
The state governments, whenever a new state government adopts, it takes a little time for them to realign their state machinery to understand these new guidelines, notify them appropriately, and also adopt them. The moment that is done, we expect there could be better traction. But having said that, there cannot be one magic wand which is going to say that there is not going to be any more ROW in the country.
If there is any country in the world where transmission lines are being built at this pace, I should say that is India where it is being built. Such massive transmission lines. Power Grid almost built about 5,500 circuit kilometers of transmission lines last year. I think nowhere in the world you'll see. And even in India, I should say we have almost 6,500 circuit kilometers. No, last year. About 7,000 circuit kilometers in the ISTS which have been commissioned. Power Grid has done about 5,500 circuit kilometers. Now, I'm not talking about any market share here. I'm talking about what we actually delivered on site. We have completed our Koppal, our Gadag, our Kurnool, our Anantapuram. All of these projects have been completely done. Our Bidar, all these projects are done. Despite these challenges, we are inching and not only moving fast also.
Wherever it is there, even for example, after MRC, we see in certain locations, things are becoming that much more easier also. Some places it is getting very easy, but then people have to adopt it, and we have a good number of holidays, right? We need to account for the Diwali, the Chhath, and all. That also sometimes not transmission projects. Every infrastructure project has a pushback during this holiday season. We will also have to account for all of that.
Sir, could these issues impact your FY 2028 capitalization as well? Or do you believe that all this will be sorted out within FY 2027?
It will. I mean, you have to believe that there is not a single project of Power Grid which has been put on hold. Everything is going ahead. We have never stopped or stalled any project or delayed project. Every project is going on. Should we have another interesting thing, what I would like to say is that the transmission project is not that every year we have it automatically throws off projects coming in. It has a gestation period. It is not linked to the financial year exactly by March 31st, few projects will come up. Absolutely no. The timeline for the projects are as much as what is given in the TSA.
Sometimes the delays which are also well recognized by the regulator, all of that put together, should there be a delay in a couple of weeks or so in a project, that is going to get in the next quarter, it is going to be done so. No project has been left. No project. You may identify if there is any project, you may say, "Sir, [Non-English content] Let me know. If there is one company which has done every project in the last part, it is Power Grid. Check up anything. [Non-English content] There are projects, for example, even in Koppal area, which is one of the toughest thing, Power Grid is the one who completed the project.
Koppal to Gadag project, Koppal to Narendra project, Koppal to Raichur, all these projects have been completed by Power Grid people. Other parties who are working over there, they also face the challenges. It is not that there is a magic wand with Power Grid or with anybody else. I would say yes, our teams are very well inspired. They understand they are on the ground to get the project done. We do not have any projects which are not come. So your concern that, "Sir, next year [Foreign language] mein kya hoga?" Should we miss the bus, there is next bus immediately is which we are going to board that. No issue. Because our projects are not definitely quarterly-wise a project should come. That is not the way how the industry is.
Okay, sir. Thank you.
Thank you. Gentleman over here. Yep, go ahead. Please. We can't hear you.
Hello.
Yeah.
Yeah, this is Mahesh Patil from ICICI Securities. My question is on the bidding that we are seeing this year. There are a lot of construction, road EPC players that are bidding almost, they're having almost 1/4 of the bids done by project cost.
Yeah.
How do you see that, and especially in intra-state, is there increase in competitive intensity, and do we see any impact on our return profiles because of that?
Our return profile will not be dictated by other companies or their participating. That is what I have assured to the team. Our returns will be very well encouraging. That is what I am saying. As far as the other players are coming, competition is welcome. We have been standing as a PSU, I should say one PSU which has been an extremely regulated company. If there is one company from the extremely regulated front, we have moved into the completely competitive domain, I should say it is Power Grid. A government company from that extremely regulated front to a competitive world, we have not only moved into the competitive world, we have started winning projects also. Not only we won the projects, we have completed them also. Not only have we completed the projects, we have successfully commissioned and also earned good returns on these projects.
The entire cycle, if there is one company, we are there. Should there be new parties who are participating in that, they are welcome. The more they understand what transmission is, the better they will be faring in their next projects, for sure.
Okay. My second question is on the timelines, right? I think we sometime back mentioned that the transmission project timelines you have requested and the government has approved increasing the timelines from 18- 24 months to 24- 30 months. How do we see the CapEx phasing? Are we pushing some CapEx going forward, and is that applicable in retrospective for the existing projects or only for the new projects that we are bidding?
The simple answer is for the old projects, no. It is prospective-
Okay
after all. For the new projects, yes. As far as the timelines are there, it was initially the few of the private players who were thinking that they can do projects fast. We were saying no. They brought it down to 18 months. If there is one company which has done the projects in about 18 months, it is Power Grid again. We have only done a 765 kV system in 18 months. No other player except Power Grid has completed within 18 months. Having said that, it is not possible with the kind of clearances what we need to obtain from multiple agencies to build a project within 18 months. Technically, yes, we can do it. Power Grid has the capability. Even a substation, after getting a land, we have done within nine months. Nine months, a 765 kV substation is impossible.
It looks like this is not true. To that extent, Power Grid has the capabilities. We are able to stitch these things together. More importantly, I am very glad to note that every substation what we have commissioned, be it Kurnool, Bidar, Anantapur, and all, one single shot they come on the bar. It is not that we have been struggling, sir. We have no issue here. We are not talking about small systems. It is not that erstwhile 500 MVA substation. We are talking about each substation having a capability of 4,500 MVA or even 8,000 MVA. One single shot they are coming on bar. So the capabilities of understanding the nuances of commissioning also is very important over here, and Power Grid has been doing good on all these fronts.
Okay. Sir, lastly on the status of the Khavda and Nagpur project, if you can share, let's say in the first two years, firstly, are we on track for the four-year timeline? In the first two years, what is the CapEx that we are envisaging here?
CapEx figures, I may not be able to exactly state you that, but the progress is fantastic. Should somebody would like to visit Khavda, they can see it for themselves. They can see all the units also going there. All these projects are visible on our screen. Every day we monitor these projects are there. Even from any part of the I mean, in our cabins we see into this, and one of the largest HVDC now center. This epicenter of Khavda will be our KPS2, Power Grid's own KPS2, where there will be HVDC apart from the existing AC substation. Yes, should you be visiting there, you can see it for your eyes, one of the finest projects which is coming over there. Works are going on schedule, if I have to say.
Yes, transmission line, there is good amount of time, but then step by step we will be closing it.
Okay, sir. Thank you. Thank you.
All the units and all are being supplied. Already the transformers are being supplied. The firewalls are being built. Everything is going as per schedule. Yes, please.
Yeah, sir. Amit Bhinde from Axis Capital. I just wanted to understand, like earlier the Government target was INR 9.16 trillion of CapEx from FY 2022-2032. So bidding was being done according to that. Now we have this new 135 GW GEC corridor coming in. So how much is the pipeline left, and is there an overlap between the two plans? Any projects that are going out in this process?
Can I get that question? I couldn't get that.
Sorry. Earlier, Government of India had put out a plan of INR 9.16 trillion from FY 2022-2032. The bidding was happening according to that.
Yes.
Now this new plan has come in for 135 GW RE connectivity. Is there an overlap between the two plan, and is there some net off that we should take, one? Of the earlier plan, how much has been done and how much is remaining for bidding to come up in the next two to three years?
What is bidding, I already said you in the ISTS part of it. Intra-state is about INR 63,000 crore of ISTS and intra-state. Intra-state now it depends upon how much the state is looking at it. Most of the states are also catching up with the intra-state. Coming up with this GEC-III, GEC-III what you're talking about-
Yes.
Corridor-III , this in all probabilities an offshoot of that particular plan, wherein the Government of India is pushing in providing fund for these projects, which will inevitably have to be discharged under the TBCB route. This is carved out from that.
Right. It is a part of that 9.16 itself, given some-
Because these are intra-state subjects.
Right.
For me to comment upon it and give an emphatic answer would be wrong, but then yes, you have to naturally draw the correlation that. The big picture is drawn by CEA and this final funding arrangements is done under the GEC, Green Energy Corridors.
Right. Right. On the second part of the question that I was asking, of the 9.16, how much is done and how much is left, if you have any idea?
Specific number I need to give it to you. Should you are looking for-
All right. Got it. Okay.
The potential is so much high that the more we, as we speak also, every state is declaring more and more of RE coming in.
We need to actually integrate them, and to integrate them, we need more better solutions. Not only we have transmission lines, we need the support systems. We need synchronous condensers, STATCOMs, Battery Energy Storage Systems, as in all of that also will be required because to integrate the RE, we need these new systems coming in.
Right. Just one question is that, earlier your target, I think, was INR 37,000 crore is what you were looking on the intra-state transmission, I believe, one or two years ago. Now, with you participating in the bids more, are you seeing more capital allocation or more targets, the targets being expanded on the intra-state kind of the business, part of the business?
No, for us, intra-state, yes, it is picking up in terms of the number of tenders, but then inter-state is also quite a good number of tenders in the inter-state as well. We are looking into the merit of the project and see where we can have a better sync with the project. Those are the projects we will be working on.
Right. Got it. Thank you. Those were my questions.
Last few questions, I think we can wrap up. Yes.
Sir, this is Mohit Pandey from Citi Research. Sir, my question is around what are we doing to protect ourselves, our returns against commodity inflation? I understand for a lot of our projects, we enter into pre-bid tie-ups with equipment suppliers. If there are any further, say, for example, copper goes up another 20% over next one year, then what exactly are we doing to protect our returns? Yeah.
See, while in some of the points, it is fixed, some of the supplies are fixed in nature, but some are also having the price variation provision. Meaning that if there is a variation in the market, we are also having to accommodate that particular variation. Having said that, we have factored in such kind of variations in multiple projects. It is not one single project what we are talking about. In multiple projects, we have the kind of the appropriate cushions what we have provided in each of the project. So we are sure that all of that will be adequate enough for us to push the projects through. Because we cannot obviously look into this increase in copper or aluminum in a given year, but then at the same time, we are accommodating these costs in different projects and different heads.
Yeah. Sir, any broad sense you can provide what proportion would be fixed and what on the, yeah, with these variation clauses? Also if, for example, copper falls 20% next year, do we get to retain the benefits or how does it work?
We do get to retain the benefits, price variation, yes.
Okay.
The price variation, there is a definitive price variation formula which is based upon certain indices which are predetermined. The movement of the index, the quantum of that particular material in that equipment, the weightage which is given to it, that is the one which will dictate the price, the one which is already finalized or agreed upon. It may move up or down, but we have to accommodate or properly take care of that positive movements, we take care of it, and the negative movements will be a windfall to the power plant.
Okay. Thank you, sir.
Okay. I think we should now move to the next. One last? Okay. Over there.
Hi, sir. This is Darshan Parmar from Jefferies. I just had one question regarding the bidding pipeline. If you could just give a sense on how the bidding pipeline would trend going ahead, because it was INR 1.2 lakh crore in Q1, and now it's INR 63,000 crore. So going ahead, how do you see the bidding pipeline?
Okay. INR 1.2 lakh crore, something is already taken under bidding, right? One HVDC moves, it takes a big chunk out of that. The new chunk will have to add. Like somebody was asking, when the new HVDC come, the moment the HVDC gets materialized, again, it just pushes that forward. So the market is continuing to reinvent itself and is going to come up, is going to be there. And apart from that, the intra-state is another one which has moved up, INR 1.36 lakh crore of intra-state which is coming. Yeah, apart from the INR 63,000. And a lot of intra-state, as we speak, a lot of states are also coming up with the projects. And most of them under the bidding route. So the pipeline, there is no dearth in the quantum of projects.
As I'm saying you, the more the RE is going to be injected into the country, there will have to be again a transmission system to evacuate. And transmission system is a common denominator for every single megawatt which is going to be put into the grid, you need a transmission system. So it is a common denominator. So whether it is an intra-state or an inter-state, any new generation coming up, there is a need for transmission to be there, because there is no other way how electricity can be moved from point A to point B. So this is the industry where we are talking about.
Well, on that note, I now invite Mr. Sanjay Sharma, Executive Director, Corporate Planning, to give the vote of thanks. We will have two quick segments after that. One is a photograph of the gentlemen sitting here on the dais, and the other one is when I'll call up all the team members of Power Grid to be on the stage. Sanjay, sir.
Thank you, Mr. Bakul. Respected Chairman and Managing Director, members of the Board of the Directors, other members of Power Grid family, that is our investors, analysts, and friends. On behalf of Power Grid, I thank all of you for joining us today for the Quarter 2 FY 2026/2027 Analyst Meet. I must say, at the peak of the results season, thanks for taking out time for this. To our investors and analysts, your questions are always valuable to us, and your continued faith in Power Grid motivates us to doing better. The numbers we have shared today speaks for themselves, and we are continuously working towards coming out with better numbers. I thank the team from Adfactors, our team from Western Region 2, for helping us organize this event in a successful manner. Thank you, everyone.
On behalf of Power Grid family, I would like to extend you a from Deepavali greetings to everyone, and thank you all for being here with Power Grid. Thank you.