Ladies and gentlemen, good day, and welcome to the Indian Energy Exchange Q2 FY '25 Results Conference Call, hosted by Axis Capital Limited. As a reminder, all participants' lines will be in the listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing star, then zero on your touchtone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Sumit Kishore from Axis Capital Limited. Thank you, and over to you, sir. Thank you, Neha. Good afternoon, ladies and gentlemen. On behalf of Axis Capital, I'm pleased to welcome you all for the IEX Q2 FY '25 Earnings Conference Call. We have with us the management team of IEX, which is represented by Mr. Satyanarayan Goel, the Chairman and Managing Director, Mr. Rohit Bajaj, Joint Managing Director, Mr. Vineet Harlalka, Chief Financial Officer, and Ms. Aparna Garg, Head Investor Relations and Corporate Communications. We will begin with the opening remarks from Mr. Rohit Bajaj, followed by an interactive Q&A session. Over to you, sir. Good afternoon, everyone. I welcome you all to the IEX earnings call for Q2 FY twenty-five. With me today on this call are Mr. Satyanarayan Goel, CMD, IEX; Mr. Vineet Harlalka, our CFO and Company Secretary; Mr. Amit Kumar, Head of Market Operations, New Product Initiative and Exchange Technology; Ms. Aparna Garg, Head of Investor Relations and Communications; and Mr. Aditya Wani. Friends, Modi government 3.0 recently concluded 100 days, maintaining its thrust on infrastructure development, innovation push, and economic growth. The Indian economy continues to be the world's fastest major economy, with yet another reported quarter of robust GDP growth. The economy grew 6.7% YOY in Q1 FY twenty-five, allowing the RBI to retain its GDP forecast for FY twenty-five at 7.2%. In the wake of Q1 GDP growth, the World Bank has also revised its GDP growth projections upwards for FY 2025 to 7% from 6.6% projected earlier. On the power sector front, electricity demand growth during the Q2 slowed on the back of better than expected monsoon. Monsoon was 8% higher than long-term annual average. Power demand at 435 billion units in Q2 was largely flat at +0.5% YOY, with a peak demand of 227 gigawatts. However, in the first six months of FY 2025, power demand was higher by 5.6% over the previous year. To meet India's growing energy demand, the Ministry of Power has maintained its focus on capacity addition and strengthening of overall power infrastructure. Almost 28 gigawatts of thermal capacity is under construction, out of which 15 gigawatts is expected to get commissioned in this fiscal, and the balance 13 gigawatts in the next two years. Further, 58 gigawatts of capacity is in various stages of planning, statutory clearances and bidding, and this should come in the system over the next 6 to 7 years. Capacity addition is being regularly monitored by the Ministry of Power. In addition, 40 to 50 gigawatts of renewable capacity is to be added every year till 2030. The government also plans to add 39 gigawatts of pumped storage project, PSP, by 2030, out of a total potential of 184 gigawatts. Recently, in September, MNRE issued guidelines for Viability Gap Funding scheme for offshore wind energy projects, worth 1 gigawatt across the states Gujarat and Tamil Nadu. It is proposed in the scheme that any unrequisitioned surplus from these projects can also be sold on the exchanges. This is expected to increase sell side liquidity on the exchanges. At the recently concluded Global Energy Investors Meet in Gujarat, our honorable Prime Minister also underscored India's strategic goal to expand its renewable capacity to 500 gigawatts by 2030. Energy developers at the meet pledged substantial commitments to capacity creation under their Shapath Patra agreements. At the event, the government also highlighted plans to develop 17 cities as model solar cities. On the fuel side, this fiscal has not seen any shortage so far. Coal is available through the e-auction route at a very nominal premium of 10%-20% with respect to the administered price, and coal inventory today stands at about 14 days. Imported coal prices in Q2 have also been competitive at $52 per ton. Similarly, gas prices at $12 per MMBTU have remained largely stable in the first half of FY 2025. With favorable monsoon this year, high hydro and wind generation and ample availability of fuel has led to higher liquidity on the exchange platform, with sell liquidity increasing by 41% over H1 FY 2024. With these trends in liquidity, volume growth is expected to continue going forward. Let us now talk about important regulatory updates and policy initiatives that helped deepen power markets. Recently, in a draft, the CERC has proposed various changes in Term-Ahead market design, which will align term products across exchanges and also help in improving liquidity. The Deviation Settlement Mechanism Regulation 2024 has made deviation management more stringent. This is likely to promote further discipline, leading to better grid stability. Under the proposed amendments, deviation charges are again linked to grid frequency with regards to solar and wind generators, deviation percentage allowed for levy has been narrowed to 10%. This is expected to further increase RTM volumes at exchanges. With regards to cross-border electricity market, the CEA has allowed generating stations selling cross-border power through a dedicated transmission line to facilitate sale of power within India in case of sustained non-scheduling of capacity or default notice issued by generator for delayed payment under their respective PPA. This has the potential to increase liquidity on the exchanges. To meet high power demands, the MOP recently extended Section 11 directive to imported coal-based plants to operate up to thirty-first December 2024. These assets will be utilized to meet country demand and support liquidity on the exchanges. To address challenges posed by seasonal variations in electricity demand, which led to sharp surge in power consumption during crunch periods, the CERC recently issued an order to ensure adequacy of resources, identify generation, demand response capacity, and generation flexibility requirements. Under the amendment to late payment surcharge rules, the government has directed all generating stations which have long-term PPAs to offer unrequisitioned power on the exchange platform. As a result, about 100 million units of URS power from central generating stations is coming to the exchange platform, out of which 15 to 20 million units is getting cleared on daily basis. Soon, generating stations which are within the states will start to offer URS power on the exchange, which will further increase liquidity on the exchanges. Under provisions of Energy Conservation Act, 2001, the Gujarat Electricity Regulatory Commission has introduced stringent compliance norms for obligated entities. In the event an obligated entity does not fulfill its renewable purchase obligation and also does not purchase the certificates, the commission has introduced payment of additional penalty up to INR 3.72 per unit, for shortfall in the specified renewable energy consumption targets. This should promote compliances and help maintain a vibrant REC market. These changes are expectedly positive for exchanges and are bound to improve sell-side liquidity and soften power prices. As prices continue to remain competitive, it is expected to present an opportunity for DISCOMs and commercial and industrial consumers to optimize their power procurement costs. IEX business performance during Q2 FY 2025 has been strong. We recorded a total trading volume of 36.7 billion units in this quarter, with a growth of 38.2% on year-on-year basis. For the first half of FY 2025, IEX traded volume of 67 billion units, a growth of 30% over the same period in FY 2024. Consequent to reduction in REC prices, we revised our transaction fee on RECs from INR 20 per certificate to INR 10 per certificate on either side of transaction with effect from 12th August 2024. In Q1, a total of 63 lakh certificates were traded, a jump of 277% over the same quarter last fiscal. RTM segment has seen strong growth this fiscal. For Q2 FY 2025, RTM volumes were higher by 31% YOY at nearly 11 billion units, showcasing its critical role in developing DISCOMs and open access consumer efficiently manage short-term electricity needs. In September 2024, RTM recorded the highest single-day trade volume of 173 million units, and RTM also achieved its highest ever monthly volume of nearly 3.5 billion units. The share of RTM in our overall product mix has also increased to nearly 30% over the last two quarters, from 27% at the end of FY 2024. RTM's ability to offer flexibility and immediate responsiveness highlights the opportunity to efficiently integrate renewables with the grid. Similarly, for the quarter, green market volumes rose 246% to nearly 2.6 billion units as compared with Q2 FY 2025. In terms of new products, we continue to await approval from CERC for our long duration contracts. We have already filed a petition with them for approval of 11-month contract, on which the hearing has happened and order is resolved. Further, we have filed petition with CERC for approval of green RTM segments. Green RTM would provide opportunity for RE sellers to avail price premium over conventional power and also buyers to avail green attribute of electricity. This segment should also help reduction variation exposure due to weather events by providing an avenue to trade green power just one hour in advance. We are happy to inform that our wholly owned subsidiary, International Carbon Exchange, has been accredited as India's first renewable energy certificate issuer. I-REC is globally recognized digital certificate that serves as a transferable proof of generation of one megawatt hour of energy from renewable sources. Further, the Honorable Minister of Coal, Shri G. Kishan Reddy Ji, earlier this week announced that India's first coal exchange would be set up soon and that the exchange would work under the supervision of Coal Controller's Organization. IEX has been working with stakeholders to explore this diversification opportunity. On another front, in August, the draft guidelines for authorization and functioning of extended producer responsibility, EPR, trading and settlement platform for plastic packaging has been issued by the Central Pollution Control Board. This will help in the transparent and competitive price discovery for EPR certificates through an online platform. EPR certification ensures proper recycling, reuse, end-of-life disposal of waste generated from electronic and plastic products. It is expected that this would be extended to other types of waste, such as e-waste, battery waste, tire waste, used oil waste, et cetera. We are working with stakeholders to evaluate business diversification opportunity in this segment. Let us now summarize the financial performance of the company in this quarter. On a consolidated basis, revenue for the company grew 26.2% on year-on-year basis in Q2 FY 2025, increasing to INR 167.8 crores, from INR 133 crores in Q2 FY 2024. Consolidated PAT increased by 25.2%, rising to 108.3 crores in quarter two of FY 2025, compared with 56.5 crores in quarter two of FY 2024. IGX traded volume of 118 lakh MMBtu for Q2 FY 2025, compared with 195 lakh MMBtu traded in Q2 last fiscal. Profit after tax for IGX for Q2 FY 2025 came in at INR 6.1 crores, compared with 7.8 crores in Q2 FY 2024. For the first half of FY 2025, IGX recorded a PAT of INR 13.6 crores, higher by 20.7% compared with the same period last fiscal. Gas prices have remained stable over the last two quarters, and volumes are expected to pick up as we approach the winter months. Way forward. Since the power sector is undergoing rapid physical shift, a year ago, battery storage rates were almost about 10 lakh INR per megawatt per month, but rates in the recent tender of NVVN have came down to about INR 2.37 lakh per megawatt per month under the BESS scheme. The competitive rates in BESS make a promising case for market development. Prices on the exchange provide enough arbitrage to make BESS commercially viable at the current prices. This will improve liquidity during non-solar hours and will help in meeting peak hour demand. With the CEA forecast of peak power demand of 458 gigawatts by 2032, power consumption growth will continue to drive exchange volume growth. On the liquidity side, MoP's initiative on renewables and thermal capacity addition will keep power procurement costs stable. The regulatory environment and government initiative to facilitate the path of energy transition shall continue to support market development. IEX shall also continue with the diversification initiative within the sector to grow them to significant value. As India marches towards achieving its net zero target, there is bound to be a growing role of power exchanges in the country, energy landscape, and IEX shall continue to be part of this journey. Thank you, and now we can have question and answers. Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on their touchtone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handset while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is from the line of Mohit Kumar from ICICI Securities Limited. Please go ahead. Hi. Good afternoon, sir, and congratulations on a very good set of numbers. My first question will be, sir, what is your market share in the, this quarter vis-a-vis other exchanges? Our market share has been almost about 83% now. Understood, sir. My second question, sir, will be on the transaction fees. When we take the revenues and divide the number of units, it seems like the transaction fees for the quarter is three point seven per unit. Are we giving a discount? Are we giving a discount? In case of REC market, the rates have come down. REC rates are now almost about INR 110-INR 120. So we have reduced the transaction fees on the REC, and this is because of that. Right. My last question, sir, my third question will be, where is the long-term trading volume? I think, we are looking to, start the new product, usually more than three months. Where it is right now? When do you expect the, to launch the product? CERC hearings are complete. Order is reserved, so we are waiting for the CERC order. Understood, sir. My last question, sir: Has the Grid-India started a pilot study for market coupling, or where is it right now? We are yet to submit the report. Have you started the pilot or it's still awaited? We are really not aware about it. Okay, understood, sir. Thank you, and all the best, sir. Thank you. What we understand is that they were in the process of developing the software. They were taking the data from us to validate the software, but, what has happened on the simulation, we are not aware about that. Understood, sir. Thank you, and all the best, sir. Thank you. Thank you. Ladies and gentlemen, you may press star and one to ask a question. The next question is from the line of Sumit Kishore from Axis Capital Limited. Please go ahead. ... Thanks. My first question is in relation to volume growth that you're seeing in REC in Q2. I mean, during the quarter from July to August, from August to September, from- There's some interruption in the voice. Going forward? I could not hear your question. Can you repeat it? Hearable now? Not, not. Okay, I will go back in the queue in that case. Now it is better. Please continue. So I was asking that during the September quarter, the REC volumes kept coming off from July, which was a very good month, followed by a lower number in August and a further decline in September. What were the dynamics here? Although, you know, REC, you know, in each of these months were much higher than the prior periods, on a year-on-year basis. And what is the likely roadmap going forward now that REC prices have come off so substantially? Volumes were significantly higher in the month of July because Bihar is one state where there was a lot of deficit, and they purchased good amount of RECs, and since they completed their RPO compliance in the month of July by buying a significantly high number of RECs. So in August, September, they were not there, Bihar was not there, and because of that, the numbers have reduced. But, I'm sure the trend with respect to last year, increasing trend, that will definitely continue because the REC rates have come down, and there are many interested parties who are willing to do their RPO compliance and purchase these RECs. Very clear. The second question is that in a quarter where India's power demand growth was barely at 0.5%, you know, IEX electricity volume growth was up 23%. So aside from the factors of better fuel availability, lower cost, better liquidity, were there any other factors or anything structural which would imply that the momentum of growth would continue going forward, as possibly power demand actually may pick up at the all India level? Your thoughts there, please. Yeah, demand is definitely expected to increase. I mean, India is a growing economy. Our GDP is increasing at a rate of 7%. If GDP is increasing, power demand is also going to increase. And, government also has taken many initiatives to, I mean, increase the electricity consumption, because, this is a most convenient method of transporting energy. And, I'm sure demand, the projected projections are the demand for electricity is going to increase at a rate of almost about 7% for the next seven, eight years. And, if that is the case, then definitely exchange transactions also will increase, because 7% of increase, that is virtually almost about 130 billion units increase. And I'm sure a good part of this incremental demand will come to the market. Sure. Electricity volume growth? Pardon? How is the month of October panning out so far in terms of electricity volume growth? There is a growth, but October demand is slightly lower because of the temperature dip in the northern region, and also rains in the South and East. But there is a, I think, almost about 8% kind of volume growth. Thank you so much. Thank you. The next question is from the line of Bharani, from Avendus Spark. Please go ahead. Good afternoon. Am I audible? Yes. Yes, yes. Thank you. So my first question is on the transaction fee. Now, in April 2023, when the transaction fee was approved by CERC for IEX, the document talked about the regulator asking the commission to come out with a discussion paper outlining global best practices on transaction fee, and after that, it will take a call on the transaction fee if needed. So just wanted to get your sense on, one, where is this process? And second, in your opinion, whether the transaction fee for all the electricity products will be changed in the future, especially given now, even we ourselves have decreased transaction fee in REC products where prices have come down. Yeah. I mean, April 2023 order did not specify any timeline for the discussion paper. So as of now, I mean, to our knowledge, nothing has happened and nothing is happening on that. But as far as transaction fee is concerned, I think this issue has been deliberated multiple times in CERC. In 2018 also, CERC order came, and there also they had allowed the two paisa per unit transaction fees. It was again allowed in the 2021 regulation, and then again in 2023 order. I mean, you rightly said that in case of REC, since the rate has reduced, we reduce the transaction fees. In case of electricity, our transaction fees is continuing as INR 0.02 on either side, right from 2011, when the electricity rates were almost about INR 2.5. Today, electricity clearing price is almost in the range of INR 5. In spite of that, we have not increased the transaction fees. So, and even if you look at the trading activities, what is happening in the sector, where regulator has allowed transaction fees up to INR 0.07 per unit. Government of India companies like SECI, when they are buying power from the renewable generators and distribution company, they are also allowed a transaction fees of a trading margin of INR 0.07. So if that is the case, I don't see any reason why this INR 0.04 transaction fees will not be allowed or will be considered as high. Sure. I think that is good to know. Second question is on market coupling. Now, in February 2024, when the result of the initial pilot study was given by CERC, the document talked about doing further pilot studies, especially focusing on whether coupling RTM markets with SCED markets is beneficial. Now, my question is, in layman terms, why should coupling in RCC, sorry, RTM and SCED be considered? If you can conceptually explain rather than coupling in the overall market. See, GERC in their order, which was issued in the month of February, they have very clearly mentioned that they did simulations for three months, and based on the data, they did not find any merit in coupling only RTM market or only the market of the three exchanges. So they said that one of the suggestions which they received was to couple the RTM and the SCED, and just to explore it further, they had given an order to Grid-India to do the simulations and see if there is a merit in that. But let me tell you, SCED and RTM are two different kind of markets. SCED is basically among the generating stations who have long-term power purchase agreement, where the fixed cost is assured under the PPA. They bid, they sell the power on the basis of, on the basis of a variable cost, regulated variable cost. In case of RTM market, the generators are merchant generators, and they have to recover the fixed and variable costs to the market. And even the coal which is given to the PPA generators is through the FSA route at the administered price, whereas the merchant generators buy coal from the auction route. So I think these two are two different set of generators. So theoretically speaking, coupling between these two generators, two set of generators, is something not desirable, but then some simulation studies are going on. And what we, I mean, we can also, we also know about that, what kind of benefits they are getting in the SCED and how much the volume is getting cleared in the SCED. All these data are available in the public domain, and if you couple these two markets, significant benefit is not going to happen. The incremental benefit is going to be very, very low, and I don't think for that kind of a small benefit, GERC will go ahead with the, let's say... I mean, implementing this kind of a coupling is very, very, I mean, cumbersome activity, and it also involves cumbersome financial and physical settlement process, so I don't think it is worth taking of that time, but then we are waiting for the study report and then GERC order thereafter. So that is very clear. Thanks for answering. I'll talk to you later. Thank you. Thank you. The next question is from the line of Chirag from Keynote Capitals. Please go ahead. Hello? Hello. Yes. Hello. Yes, thank you for the opportunity. Sir, will it be possible for you to give market share product-wise? Yeah. Do you have the data? Yeah. So, in day-ahead market and real-time market, which are collective transactions, our market share is 99.5%. In the bilateral market, let me just bring it out. Just allow me. So in the Term-Ahead Market, our market share is about 40%. So which overall, on a total basis, it makes it 82.7, then 83% in electricity. In certificates, it is, fifty-six, it is 60%, and overall market share in H1, first six months, is 79%. Electricity, it is 83%, and certificates it is 60%, and total is 79%. Right. So second, I wanted to understand, one thing, as the earlier participant also asked related to market coupling. There was one simulation taking place related to RTM and DAM, which didn't, made it through because majority of the volumes were used to come from RTM. So even if there is a market coupling, if this RTM and time-based market coupling goes forward also, does that mean all the products will be coupled or it will be just two of these products? ... We don't want to comment on that. Let CERC decide about it first, and thereafter, and we will talk about this. But as of now, the simulation is basically for RTM and schedule. Okay. So third question, I just wanted to have a view. Is there any internal discussion in the management team going on related to change in dividend policy? As you don't require this much amount of cash for bringing new products itself, has there been any talks related to slab-based dividend model taking place and changing from the current 65% of the profit? As of now, there is no, no such thinking about it. We are giving 65%-70% kind of profit in the form of dividend, and that's a good dividend payout. We are also working on other initiatives. As I told you in the past, gas exchange is doing well. We are also working on coal exchange, which is government of Ministry of Coal is talking about that. And there are EPR trading discussions going around. Carbon exchange is another opportunity. So I think for all these things, money will be required, so we are keeping that money for that purpose. Sir, and will it be possible for you to just lend a broad ballpark number for what kind of money would be required for bringing such kind of things? See, even in case of power exchange also, since we are counterparty to both the sides, we have to make payment to the sellers even if we are not getting payment from the buyer. And there have been some instances where there was a one or two days delay in making the payment by the buyer. So we have to have enough surplus fund with the company to take care of this kind of eventuality. So I think, the present surplus is about INR 900 crore, is the investors' money, which is available with the company. It is not very high, but then, yes, in future, we can think about a special dividend if there is a need. Fair enough. Thank you. Thank you so much, sir. Thank you. The next question is from the line of Viraj Mithani from Jupiter Financial. Please go ahead. Yes. Congratulations, sir, for the good set of numbers. Thank you. My question is again on coupling. In case the coupling goes through, how are we going to be affected? Like, any... Because we are the leading exchange in the, we are first mover advantage, too. Can you give some color on that? I know it's too early to comment, but if you can give. I am very sure coupling is not going to happen, so let us not worry about that. And in case coupling happens, we have ways and means to ensure that we are able to retain our market share. Mm-hmm. When it comes to that. Okay? Okay. Thank you, sir. All other questions are answered. Thank you. Thank you. Thank you. Thank you. The next question is from the line of Devesh Agarwal from IIFL Securities. Please go ahead. Good afternoon, sir, and thank you for the opportunity. Good afternoon. Again, on continuing on market coupling, if you could help us understand whether this URS power that has been coming into the RTM market, in any way, does that kind of bring down the benefit that could have possibly come out by coupling the SCED with RTM market, or it doesn't impact? See, number one, SED volume itself is very less. It was earlier about 30-35 million units per day, whereas the RTM market volume is about 100 million units. And after this government new rule of sale of URS power on the exchange platform, we are seeing that in the RTM market, on an average daily, about 20 million units of this URS power is being sold to the market itself. So that means that opportunity available for further optimization in the schedule market is further reduced. So today, the schedule market is less than 20 million units per day. So I think, the optimization opportunity is definitely further reduced. And, if all generators, they participate in the DAM and RTM market, the URS power is sold, there will be practically no optimization opportunity by coupling SCED and RTM. Understood, sir. And secondly, sir, if we see the numbers for the October, you said there is some growth, but if we see for our numbers in the month of October, we are seeing that there is a month-on-month decline, and the decline is largely in the RTM segment, where volumes have come down by 20-25 MUs on a daily basis. So any particular reason for this, sir? Yeah, month on month, there is a decline, but if you look at year on year, there is a positive number. And month on month, actually, month of September is slightly hot and humid month. Agricultural demand is also there. Because of that, the demand was high in the country. Our demand also has reduced, and fortunately, availability of generating units is high. So that is why I think, volume is on month on month basis reduced, but, our comparison is mainly on year-on-year basis. Because you see, on every month, we mean, next year, November is going to be further colder month and the demand may further go down. But if you compare with respect to last year, that is the basic comparison what we do. Understood, sir. And sir, I think you touched upon in your introductory remark, this, CERC regulation, which came at the start of the month, around time pricing. Could you just explain a bit better, what does the draft paper talks about, and how would this impact the TAM market? And does this benefit or impact us in any ways, if this were to be implemented? It was, it is basically to streamline the transactions in the TAM market. Today, there are multiple products, and exchanges were given the flexibility to introduce whatever product they feel like, and as a result of that, different exchanges have introduced different kind of products. So there is no standardization in that. And then that's why the liquidity in this market is getting fragmented across these different products. So CERC has now decided to streamline this activity, and there will be standard products available in the market so that buyers and sellers can see what is there available for sale and what they want to buy. And I think this is a very good initiative of the CERC, and it is good for the market. But does it impact any of our segment volumes or no? Not really. It doesn't impact that, and I'm sure we'll be a larger beneficiary of this. Understood. Lastly, sir, you talked about diversification, and you spoke about EPR trading and Coal Exchange. Among this one, which one do you think has the largest potential in terms of becoming sizable? And secondly, which is the one that you think will be started first or will come into operation soon? So both questions are difficult to answer, because, both these initiatives are dependent on the government decision. Coal Exchange, I mean, I've been hearing about it from the last one year, and, Honorable Minister of Coal also has made statement earlier that it is a part of the hundred days, and the hundred days are over. In the last week also, he said that, "Yes, we are going ahead with the Coal Exchange." So I think only after a decision is taken by the government in this regard, then only we will be able to start work on that. And then after that, we will have to approach the regulator, whoever is the party identified for this purpose, and take approval and thereafter launch. Yes, I think it will need some time, and dependent on the government approval. But once approval is there, after that, we will need maybe about six months to eight months time to start. Similar case is in the EPR trading. EPR trading also, draft regulations have been issued, and we have received the public comments. We are in the process of finalizing the regulations. Once the regulations are finalized, then they will appoint an agency for the purpose of EPR trading. So, and there, multiple parties may, may apply, and then it depends whom they select. So we have good chances to get selected, but then it, there is, opportunities are available to everybody. Understood, sir. That's all from my side. Thank you so much. Thank you. Thank you. The next question is from the line of Vishal Pariwal from Antique Stock Broking. Please go ahead. Yes, sir. Thanks for the opportunity. Sir, on this REC transaction fee that we provide, I mean, just wanted to understand the rationale for it. When the volume for any product, when it's going strong, what was the reason of, I mean, reducing the fee that we charge? Now, since the rate for the REC, those rates substantially reduced, and so we felt that transaction fees should also be reduced, because rates earlier were INR 1,000, it came down to almost about INR 120. Okay. No, but we are not seeing a similar thing for even like, you know, power products that we have, when maybe like, you know, the tariff moves to maybe eight rupees, nine rupees. Yeah, yeah, I agree with you. In case of electricity, when the rates increase from INR 2.5-INR 5, our transaction fees should have increased there, but we did not increase that. But this time we, to pass on the, I mean, give benefit to the distribution companies, we decided to reduce the transaction fees for REC. Okay. So maybe I can ask it in another way. Is there any other players they have done or maybe like changes in the fee that made probably the industry to follow it, maybe one player started, or how exactly it works? Or you were the first one? We wanted to be rational in charging our fees. Okay. Sure, sir, and one last thing is on this, the TAM product, the three months to 11 months, so I know, I mean, like, you know, it has been pending from quite some time, so anything that you are hearing which is probably delaying the whole process, any color that you can provide will be helpful. We were expecting that it will happen within one month of the order, when the order was reserved, but now significant time has passed, so I don't know what is the issue behind that. Maybe when they finalize this, I mean, they have also issued a draft order about the TAM market. Once they get the comment on this, and maybe along with this, they will finalize that also. Okay. Sure, sir, sure. Yeah, thanks. That's all from my side. Thank you. Thank you. The next question is from the line of Rucheeta Kadge, from IWealth Management. Please go ahead. Hello, Ruchita- Hello, sir. Good afternoon, so my question was on the REC segment. I just wanted to know, sir, what is the opportunity size in this segment in terms of volume? Yeah. Opportunity is very high because the Government of India has specified RPO compliance norms, and there are many states, many distribution companies, many industries who are not meeting that. And earlier, the inventory was not available, now the inventory also is there. Almost about 3.5-4 crore rupees, or 4 crore REC inventory is available. Rates also have come down, so it is the right time for these entities to meet their RPO obligation. So I'm sure that it's a big opportunity, but again, depends on the market participants and also the enforcement, which is done by the state regulators, because state regulators are the agencies who are monitoring these things and ensuring compliance. [crosstalk]Okay. Okay, thank you. Thank you. you. The next question is from the line of Nikhil Abhyankar from UTI Mutual Fund. Please go ahead. Thank you, sir. Just one question. So you mentioned that we are an accredited to issue carbon certificates. So can you just brief us about that? What exactly is this about? Or, like, all the carbon credits issued in India will be through us, and do they have to trade only with us or- No, no, no, no. no. It is not carbon credits. It is I-REC. It is International Renewable Energy Certificates. Okay. We have a REC market in India, which is a compliance market. There is another market, which is a voluntary market, which is operating, which are operated by one of the international agency. And earlier, they had one agency which was doing issuance of the I-RECs, and now they have given the job to ICX, our subsidiary company. Okay. And so when should we expect any operations on ICX then? No, activities have started, but the opportunity is very small here. Okay. Yeah. Sure. Thank you. Thank you. Ladies and gentlemen, you may press star and one to ask a question. The next follow-up question is from the line of Chirag from Keynote Capitals. Please go ahead. Yeah, thank you for the follow-up. Sir, actually, I wanted to build clarity on IGX. As the prices of spot, prices of gas have come stable to twelve rupees, twelve dollars, prices, what's the reaction on the volume trading taking place platform? Secondly, which type of gas is being traded? Is it the domestic gas or is it the international gas that is traded more on IGX? See, we have basically three kind of gas in the Indian market: RLNG, APM gas, and non-APM gas. Non-APM gas is gas produced by Reliance, gas produced by Cairn, TNT, et cetera. So trading on exchange platform is basically happening in other than APM gas, whether it is domestic or RLNG, both kind of gases are traded here, because for the domestic gas also, the field allocation document says that the gas can be sold through the competitive bidding route or through the exchange. So good part of the gas is also sold through the exchange. And as far as the gas price is concerned, yes, prices are about $12-$13, but very recently I saw a report that there is going to be a significant increase in the LNG capacity in the world, and in 2025 and in 2026, we are expecting the gas prices to come down. It should, it will come down to almost about $6-$7. And when that happens, I'm sure the gas consumption in India is going to increase, and particularly in the power sector. So we see good opportunity, big opportunity in the gas exchange. Okay, that is it. That is from my side. Thank you, sir. Thank you. The next question is from the line of Rushabh Shah from Birla PMS. Please go ahead. Yeah, hello... Hello? Yeah. How would you- Hello? Hello. Yeah, yeah. Am I able to hear you? Yeah, yeah. Am I audible, sir? Yes, sir. Yeah. So how would you attract new customers so that more and more trading possible on our platform? Can you repeat your question, please, and talk slightly louder? Sure. I'm asking, how would you attract new customers so that more and more trading is possible on our exchange? Yeah. Number one is that, customer side, one is seller and other is buyer. On sell side, we have almost all generating thermal generators who are... They are registered with us. On renewable side also, most of the renewable capacities are registered with us. On buy side, 100% of the distribution companies of the country are registered with us. Industrial consumers, we have more than 4,500 large industries, they're all registered with us. And we continue to work with industries, tell them what kind of benefits they can take. So every year we find that there is an increase in number in that. So So it's a continuous business development activity on which we are working. Okay. And sir, my next question is the open access volumes have only been contributed by a few states. So what necessary actions are we taking so that those volumes increase, and all states are participating in these volumes? Yeah. Open access volume is basically purchased by the industry, and purchased by the industry is dependent on the state open access regulations, particularly the Cross-Subsidy Surcharge, additional surcharge, and billing charges. And, looking at the exchange clearing price, which is about INR 4 these days, INR 4, INR 4.5, with this, on top of it, this, if you add these charges, the viability in many of the states is not there, because in those states, the charges are higher. But in few states, where the Cross-Subsidy Surcharge and extra surcharge is lower, there is still viability, and they participate on the exchange platform. We regularly interact with the state regulatory commissions. We submit our comments also, suggestions also, in the hearings, and our endeavor has been to ensure that there is a rationalization of Cross-Subsidy Surcharge, so that open access is promoted, and that is the objective of the Government of India also, the basic spirit of the Act also. And my, our next question is, sir, if I remember clearly, in FY 2022, we had a market share of 94%, and FY 2023, we came down to 88.4% something, in FY 2024, we were 84%, and now we are on a consolidated basis, like all the products mixed on 83% something. Am I correct? Yeah, yeah. See, in eighty-two- My just question is, what is happening, sir? Why are we losing that market share? Is it because more competitors are coming into our market, or what is it? No, in 2022, these long duration contracts for delivery beyond 11 days were not there. Hmm. So these products were introduced in June 2022, July 2022, and thereafter, in these products also, significant volume transactions have started happening. The DAM market and RTM market, which are our, I mean, key market segments, where our market share is practically 100%, there is a volume increase in these two segments, that some volume shift has happened from the trading companies to the long duration contracts on the exchange platform. And in those contracts, all three exchanges have reasonable market share. So market share has reduced because of that. But if you look at our volumes, our volumes are increasing. Our volumes increased in 2023, 2024 was also there, and 2024 to 2025 is also there. Okay. Sir, how is the market share distributed among the three exchanges in totality and in the real-time market? I told you, in totality, it is 83% in electricity, whereas it is in DAM, RTM and G-RTM, it is 100%. Practically 100%, 99.5%, you can say. Okay. And what would be your top three priorities going ahead for the next four to five years? Yeah. One is electricity exchange. Continue to introduce more products on this and do business development activities, policy advocacy, so that we are able to deepen this market. Second is our gas exchange. There also, we are working to ensure that there is the volume increase happen there, because the opportunity size is much bigger there. Third is, I told you, diversification initiatives, coal exchange, API trading, these are the new initiatives on which we are working. So you said new products. So any new products are in pipeline? What kind of thinking are we going into these new products? 11-month contract is under approval. We have also filed petition for Green RTM market, so these are the two new things. Okay. Okay. Thank you. Thank you so much. Thank you. Thank you. The next question is from the lineup, Lokesh Manik from Vallum Capital. Please go ahead. Yes, good afternoon, sir. My question is the clarification. What is the volume you would be doing in long duration contracts today, which are beyond one month? The question? Question is not clear. Long... Volume in long duration contracts, how much would we have done this quarter? Just a minute. Sure. 5.2 billion units in this quarter we have done. Sorry, say for the six-month time. Okay, six months, we've done five point two. And do you have just clarification, we have 40% market share in this segment. Am I clear on that? Yes, yes, you are right. You are right. Okay, so 40% at 5.2-10, that's about INR 20 billion is the total industry. So the trading would be INR 50-60 billion, the power trading market, long duration? Long duration is about thirteen billion units in all three exchanges taken together. Okay. And if you looked at that, trading companies also, they do long duration, so accounting for that also, it becomes 50-60 billion. Okay. Do you have more products in the pipeline to capture more market share from there, or do you think, you know, we are reasonably positioned to grow from here? Yeah, I mean, eleven-month contract is the next item, because up to three months we have all kind of contracts available. Okay. 11-month contract, we have already applied to CERC for approval. With that, we will be able to offer the complete range of products. Understood. So when is that expected, sir? Difficult to say. It is under regulatory approval. Okay. Sir, the second question was on the, What was the question? Lokesh, are you- Hello? Hello. Yes, sir. Yes, sir. So I'll come back in the queue for any follow-up questions. Thank you. Okay. I think, we can have another one more question. We have no further questions, sir. Okay, thank you. That's great. Yes. I have another meeting. Thank you. Ladies and gentlemen, we'll take this as the last question. I would now like to hand over the conference to the management for closing comments. Thank you, friends. I would like to thank each one of you for being part of today's call. We have had a good first half of this fiscal on the business front. We have witnessed several efforts announced by the government and regulators to further develop the market. We remain committed to contribute to the development of a sustainable and efficient energy future for India. Thank you, have a wonderful evening, and happy Diwali to all of you. Thank you. On behalf of Axis Capital Limited, that concludes this conference. Thank you for joining us, and you may now disconnect your lines. Thank you.