Tata Power Company

“One will get completed, the Jalpura-Khurja line in the next few days. The other one, the Bikaner-Neemrana line will also get commissioned by October.”

“And we do expect that this plant will also become operational in the calendar year 2030.”

“Yes. So the whole lot of projects are under implementation.”

“And all these projects are under implementation, and we do expect we'll be in a position to implement all of them within the cost and within the time lines that we have set for ourselves.”

“the balance is divided between our FGD projects as well as the transmission and distribution projects, which are also in pipeline.”

“As we speak, while in the first quarter, we have commissioned 226 megawatts, but we already have a line of sight for 500 megawatts where the project is almost ready.”

“I think in next 12 months, we will come out with the next set of projects because we have these 2,800 megawatts, which is coming up in 2029 and 2031.”

“Almost half of that will go in the renewable business because as we mentioned, we're trying to commission almost 800 megawatts to 900 megawatts in quarter 2.”

“We already have 5.5 gigawatts in pipeline plus some of the solutioning along with PSP that is required.”

“Secondly, the cell has reduced because there was a line change that happened.”

“We have been fortunate to win a bid through SECI with a very attractive tariff and for 1 unit of 330 megawatt. And for the balance 2, we are in discussions with Tata Steel and other procurers to supply to them.”

“No, we don't have new order book. We're just completing whatever the remaining work is there.”

“Right now, like for 1,000 megawatts, there are 3 units of 334 megawatts. The first one we have tied up through a bid process on an annuity base.”

“the transmission business has shown a revenue increase of 45% CAGR, 19% in EBITDA, and 27% in PAT.”

“Similarly, if we see our renewable cluster, it has done exceedingly well on an overall basis. The revenue has gone up by 22%, the EBITDA by 23% and the PAT by 37%.”

“Our revenue has grown from last year to this year by nearly 100%.”

“And we are very confident that we will run this plant continuously now up to 2038.”

“So you will see a huge amount of improvement in Odisha DISCOM. These are only timing issues, which has nothing to do primarily with the business arrangement.”

“The power demand growth has been very strong in the first quarter. It was nearly 8.5% increase.”

“We continue to see similar demand in this month also, July has been consistently in the range of 260 to 270 gigawatts.”

“We also see that going forward, there will be a large increase in demand because it's not only the cooling, but also industrial growth has picked up, and there is good demand in the industrial sector.”

“So the renewable auctions have been muted because, as you know, there were a large number of PPAs, which were auctioned by with the central agencies like SECI, NHPC and NTPC.”

“Secondly, they now want the FDRE or RTC bids to happen and not just solar or even the hybrid that have been taking place.”

“So that's why the pricing difference you are seeing. So average will be very, very wrong interpretation of what sort of realization.”

“So one is that coal prices have gone up, but not very much. I would say about 5% to 7%.”

“And we don't expect too much of changes happening. But yes, up to 5% over the next 9 months, you can expect.”

“So presently, the supplementary PPA is on actual cost of coal, and all parameters, including heat rate, also will be on actual. So it's more towards cost reimbursement and cost reflective without any margin to be made from the plant.”

“I said fixed cost is covered, but it is cost reflective. That means whatever is your fixed cost for operating the plant, you will get that paid, but you will not get a return on equity.”

“Our net debt to underlying EBITDA is 3.41 and our net debt to equity is 1.25. This is within the guardrails that we have set for ourselves for the investment.”

“And that was because the allocation from the state government and the central government got delayed. We expect to collect all of them in this quarter.”

“So if you look on a 12-month basis, you will find that we are on track.”

“That period is over and now we are collecting all the payments. So the collection efficiency will be improving in this quarter.”

“And we expect that in this quarter, many of that issues will get covered. So in distribution, we should always look at 12 months rollover rather than seeing on a quarter-to-quarter basis”

“We expect to start work on the 1,125 megawatt Dorjilung project where World Bank is financing, and we are in the process of completing the financial closure in the next 2 months' time with PFC, IFC and some of the other lenders.”

“now that we have added to rooftop battery storage, especially for residential and industrial purpose, you will see the impact of that also coming in the combined solution.”

“We are looking at new opportunities, including nuclear where a lot of preliminary work has happened. But I think once these rules are notified by the government, we'll be in a position to come up with a firm plan.”

“We had about INR 100-odd crores of PAT coming through that. But this year, we are kind of wrapping up some of the remaining work. And as a result, we have booked some losses.”

“Rithala Plant was closed a long time back in 2016. So that's why it's not an operating plant. It had issues on tariff and its depreciation issues and all that. And that has now been finalized and we have made provision for that.”

“The delay was not from our side. We were ready on 30th June, we had done all the testing.”

“The second is because of acute heat wave, the government asked that don't disconnect supply up to 15th of June and these payments are not made.”

“We are at something like just 10% of the legacy projects in last stage there and cost to correction takes place because of that reason. And you will find that possibly maybe one more quarter will have an impact on Tata Projects.”

“there's been a general curtailment of roughly about 5%. And that we think is also the industry trend. But given that a lot of transmission lines and evacuation lines are in fast progression, we think that this curtailment will settle in, in the next few quarters.”

“So it would be maybe 10% of the total requirement. So I think majority continues to be under the ALMM-II arrangement. And that is not actually moving the needle or having any impact as far as we are concerned.”

“Tata Power has done exceedingly well, INR 1,401 crores of PAT in the quarter, which is an 11% increase.”

“And so also the EBITDA increase has been 8% to INR 4,249 crores.”

“This is the 27th consecutive quarter where we have seen increase in our PAT and EBITDA.”

“We are in very advanced stage of getting approval from 3 states, expecting that in the month of August. So we should have the cabinet approval for 3 states and the fourth state will happen in September.”

“Now coming to some of the other areas, Mundra, we have concluded SPPA with Gujarat.”