Okay. Good morning, everybody. Thank you for joining us for the Q4 and FY 2022 post result virtual meeting of Power Grid Corporation of India Limited. On behalf of ICICI Securities, we would like to welcome the Power Grid senior management. Thank you for your time for this meeting. From the management, we have with us Mr. Taj Mukarrum, Director of Finance and CFO, Mrs. Seema Gupta, Director Operations, Mr. Sunil Agarwal, Executive, Corporate Planning. I would like to hand over the floor to the management who will give a detailed presentation, post which we will have a Q&A session. Thank you, and over to you. Very good morning to all, and welcome to the investor meet today of Power Grid Corporation of India for the FY 2022. My name is Taj Mukarram. I am Director of Finance here. I'd like to give you a brief presentation about the financial results and the performance of our company during FY 2022. My presentation will cover Power Grid's overview, major highlights during the year, performance, key points, and then we'll look at what is the business outlook for our power sector. Within power sector, this is how we'll start with. As you all know, Power Grid Corporation of India is a Maharatna CPSE Government of India undertaking, with ownership of Government of India at 51.34%. Within CPSEs in India, we are the third-largest in terms of gross block. Post investment in 5 TBCB companies last FY, the group entity has 24 subsidiaries and we partner with 10 companies in joint venture. As far as international presence is concerned, we have footprint in 23 countries, majorly Africa and near neighboring countries. Power Grid Corporation of India credit rating is AAA rating by all three domestic rating agencies, CRISIL, ICRA and CARE. International rating, Moody's, S&P and Fitch have given us on par with sovereign rating of Baa3 and BBB. As far as our size is concerned, Power Grid Corporation of India has a total 1.7 lakh circuit kilometers of transmission lines, numbering about 1,350 lines, with substation operational assets of 265 substations covering 4.75 lakh MVA. Power Grid Corporation of India's share in the entire country's power flow is approximately 45%-50%. Within that interregional capacity, Power Grid Corporation of India is the leader. Of the total 1,12,000 MW of country's interregional power flow, Power Grid covers almost 97,000 MW, sharing about 85% of the interregional capacity. Next slide. This year's major highlights are, as you all know, we have already informed our investors, up to Q3 that Raigarh-Pugalur-Thrissur HVDC scheme has already been commissioned fully. During this Q4, we have incorporated a new subsidiary towards focusing our growth on consultancy, engineering consultancy services called Powergrid Energy Services Limited. This year, first year, Power Grid has monetized total operational assets worth INR 8,370 crore in two tranches. One, INR 7,700 crore during May 2021, and another INR 600 crore has been monetized towards 26% of one of the TBCB companies which has been monetized last year. Out of the 18 TBCB subsidiaries that Power Grid has, now offsetting the 5 TBCB companies which have been already monetized, six have been commissioned during FY 2022. The names are given here on the slide. Balance 12 TBCB companies are under various advanced stages of construction. In addition to that, Power Grid has acquired three new subsidiaries Power Grid has won this year, Aligarh-Sikar Transmission, Bhadla Transmission Two, and Sikar Transmission. This is as of this date. Three transmissions up to 31st March. We are happy to inform you that last week, Power Grid has won Mohanlalganj, one more intrastate UP, which actually was won last year, FY 2022, but the letter of intent has been issued by UP government last week only. We'll come to the project execution. During construction, Power Grid has made a capital expenditure of INR 9,000 crore on a consolidated basis. On commissioning, we have achieved a total of INR 20,695 crore of commissioning, which includes INR 5,600 crore TBCB-based companies commissioning and INR 15,000 crore regulated assets commissioning. This is for the full year. As far as Q4 is concerned, the CapEx figures on consolidated base stand at INR 1,872 crore and INR 2,100 crore. Next slide. In addition to what has been the cumulative figure, the exact FY 2022 project execution highlights are. We have commissioned more than 5,000 circle kilometers of transmission lines with a MVA capacity of 43,564 MVA. Seven substations have been commissioned during this current year, FY 2022, adding resulting in an inter-regional capacity of more than 7,200 MW. This has been the remarkable construction performance of PowerGrid during FY 2022. Now coming to the operational performance of our corporation. This has been a record year again in terms of both availability of the huge transmission operational assets as well as the reliability, which is measured in terms of trippings per line. As you can see, the operational performance has been more than 99.83% during FY 2022, which is above the benchmark of 99.75% to become eligible for the incentive. PowerGrid has managed to maintain 99.83%. The reliability trippings per lines also have been coming down through various measures that have been taken by PowerGrid, which we'll explain in the next slides. It is only 0.33 trippings per line during FY 2022. There are various operational highlights during this year which PowerGrid has achieved. One of the major ESG compliant measures has been environmentally friendly natural ester oil, which has been commissioned. It is the world's first 400 kV reactor bay at Maithon, which is in our eastern region. We have refurbished old HVDC systems like Vindhyachal Back-to-Back and Rihand-Dadri, which were commissioned very early one of the first HVDC systems. They have been refurbished. These are the two major operational highlights. Now coming to the financial performance. Again, this year has been a record performance in terms of financial results also. As you can see here, on a consolidated basis, the income has recorded at INR 10,942 crores during Q4, and a PAT bottom line of INR 4,321 crores. These are the standalone figures, I'm sorry. Consolidated figures are income is INR 11,068 crore and PAT is INR 4,156 crore. Now we'll go drill down these financial details in the next slide. Particularly, two measures we'll take. One is Q4 performance of financials and year-on-year of FY 2022. If you look at financial performance of 31/3/2022 on a consolidated basis, the total income, operational income is recorded at INR 11,068 crore, which consisted of majorly 97% towards transmission charges, that is INR 10,299 crore, and consultancy of INR 234 crores, telecom INR 153 crores. There is other income which we will explain, which is INR 382 crores. There is a growth of 25% there. Overall, on an income basis, there has been a growth of about 6%. 6% on the top line and bottom line there has been a growth of 8.5%. Next slide. We come to a financial performance of FY 2022. Total income recorded is INR 42,698 crores and bottom line of INR 16,824 crores on a consolidated basis. As far as the details of FY 2022, top line and bottom line, transmission charges again are approximately 97% of the total income, recording a growth of 6% year-on-year. PAT has recorded 43% growth. But this 43% growth, if we net off the one-offs, the one-offs are majorly only two. One is the InvIT which we have commissioned, and there has been a INR 3,300 crores profit on the InvIT transaction, net of tax. There has been last year as compared to last year a thousand crores plus one-time rebate given, which amounts to about INR 890 crore net of tax. If we take out these two one-offs, the growth rate is approximately PAT 7.5%. We'll come to the next slide. Cumulative figures of the gross assets. We have shown a growth of INR 2.62 lakh crore of gross blocks. Gross block assets as on 31/3/2022 as against INR 2.41 lakh crore. Earnings per share, again, because of a huge PAT recorded INR 17,000 crore upon the shares is, earnings per share is INR 24 as against INR 17 last year on a consolidated basis. Book value also has aggressively grown from INR 100- INR 109. Due to non-drawal of fresh loans during the year and as well as repayment of debt servicing, the CapEx earlier used to be in terms of INR 20,000 crore and above. Last two years we have seen a tapering on the capital expenditure. Thereby, the debt equity position also has become very comfortable. Now it is 63-37. Return on net worth, again, the PAT INR 17,000 crore has seen that the return on net worth, which is a ratio of PAT to net worth, has shown a 5% growth, 17%-22%. In addition to these, in the next slide talks about other critical key financials. There has been a reduction in the surcharge. Because the receivables collection performance of the corporation during the year has been very good. We have maintained receivables of 43 days as against credit period prescribed by our regulator at 45 days. This has incidentally resulted in a reduction in the surcharge because during March and during the year also, the receivables have shown a good performance, and all the DISCOMs have paid majority of their overdues as well as some of the DISCOMs have paid even the current dues also. That has resulted in a reduction of surcharge. Other highlights are self-explainable, which are available on the slide. We'll come to the shareholders' return in terms of dividend in absolute terms of rupees as well as dividend payout. We are again happy to reiterate the fact that we have started the practice of paying interim dividends instead of paying a lump sum dividend at the end of the year. As per the Government of India guidelines, we have paid three interims. One, in terms of INR 4 we paid first, and then INR 7, which consisted of INR 3 special dividend. Then we paid a third interim dividend of INR 5.50. The management has come out with a proposal that there should be a final dividend during the current year of INR 2.25, subject to the approval of the AGM, which is scheduled in the month of August. If that's subject to the approval of shareholders, the total dividend amounts to INR 14.75, a total of INR 697 crore to our shareholders, which is working out to be just above 60% of the PAT. It is also one of the highest for our corporation as well as a market benchmark. After covering the construction highlights, operational highlights, and financial highlights, now we'll come to our other segment performance during the year. Incidentally, telecom performance has not been very impressive, majorly because, one, we had to offer to liquidate BSNL dues. We had to give them a special rebate. That is how we could liquidate their dues. Second, because of the huge competition in the rates, there has been a reduction in the income of our telecom during current year. It has reduced from INR 708 crore to INR 580 crore. In contrast, our consultancy performance, there has been a record growth from INR 434 crore of consultancy and project management income. From INR 434 crore, it has jumped to INR 671 crore. The major contributor has been the consultancy charges on our northeastern region project, which is a Government of India project, including comprehensive scheme of Arunachal Pradesh and Sikkim. Consultancy international also we are making trying to make inroads. We have entered two new countries in addition to the 23 countries in which we already have presence. Moldova and Guinea, we have entered our footprint with small 2 orders. During FY 2022, we have received six new orders. Totally, we are having 15 ongoing assignments beyond our country's borders. In addition to that, there are opportunities of 26 expressions of interest have been submitted by Power Grid. They are at various stages of discussion and finalization. Domestic also, we have received 21 new orders during the year, and presently, under the operation and at various stages of implementation are 68 assignments as far as within India consultancy projects are concerned. We are happy to note that, in view of the tapered CapEx, Power Grid Corporation has been exploring the various serious opportunities to increase its CapEx numbers, in order to utilize the. Next slide. In order to utilize the huge 14,000+ internal resources as well as the non-cash depreciation. The funds are utilized more productively. There is a great opportunity in one area through the help of Government of India initiative. The total size of smart meters in India is estimated at 25 crore meters. Considering that, we have already tendered for procurement of 1 crore smart meters. We are parallelly at various stages of discussion with specific states to kind of obtain business to implement end-to-end smart meter solution for various states. There is one more opportunity, great opportunity. Of course, it's at a very initial stage, which is battery energy storage systems. This is going to be next big CapEx trigger for the power sector in terms of for both generators as well as transmission, as well as it can be a project on its own. SECI has recently come out with setting up one ISTS connected pilot project on a BOOT basis. It is estimated that aggregated storage capacity with the aggregated capacity of 1,000 MW. That is 500 MW into two hours. Coming to the next slide. We are trying to explore an opportunity to enter into solar generation. We are already at advanced stage of setting up Power Grid's first commercial solar PV project of approximately 100 MW at Nagda substation, where we have a spare land in Madhya Pradesh. There are some activities and exploration going on rooftop solar systems also. In addition to this, Power Grid Corporation of India. Next slide. Power Grid Corporation of India is very actively participating and improvising its compliances of sustainability ESG. The report of Power Grid seventh sustainability report for 2019 to 2021 biannual report is available on the company's website. Coming to the other highlights, as we already mentioned, that this year commercial performance has been very good. Out of the billing of INR 36,000 crores, we have realized INR 35,295 crores, which is approximately 98%. Thereby, the total receivables at the end of the year has stood at 43.69 days. Of course, there are a few states where we have slight difficulty in collecting dues, majorly J&K. J&K is a major kind of defaulter in terms of paying us our dues, which is standing at more than INR 1,500 crores. Other states where we are finding slight difficulty, but of course, we are able to liquidate our Uttar Pradesh, Tamil Nadu and Maharashtra. Other than this, rest of the discoms have been regularly paid, and that's how we have been able to achieve this kind of record receivables. Coming to the business outlook, future plans. Not very attractive, but present works in hand are about half a lakh of crores, out of which, six thousand seven hundred crores are in various advanced stages of implementation and expected to be commissioned during this year and next year. In addition to our work is six thousand seven hundred crores. In addition to that, as you all know, Pang-Kaithal HVDC has been given to Power Grid on nomination basis by Government of India approximately at INR 27,000 crores. Another four thousand crores plus project has been given to Power Grid in Navsari in Gujarat? Yeah. Gujarat. Various TBCB projects, which approximately amount to INR 15,000 crore. Though these three put together, we have a work in hand value of approximately INR 54,000 crore, which includes various projects under implementation as well as given to Power Grid, implementation is at very initial stages. This also includes the Mohanlalganj intrastate UP project that I have mentioned and Narela also. Narela also. Upcoming opportunities. In addition to the present order book, there is another immediate opportunity of approximately INR 31,000 crore seen in the TBCB area, which has a breakup of ISTS, approximately 30,000 and 2,000 of intrastate. This is very clearly indicating that even though there is a huge potential in the intrastate space, but various states are not very actively forthcoming. Presently, only there are two projects under bidding. I think these are MP. One MP and one Rajasthan. Even though we have been talking about the intrastate potential in terms of big opportunity for Power Grid to enter into still TBCB opportunities, as you can see from this slide, are majorly in interstate only in the states of Gujarat and Rajasthan, majorly. Intrastate, we are still slightly struggling. Coming to a bigger picture of sectoral growth outlook. Very clearly, there are various macro level drivers of growth of power sector in terms of Government of India initiatives to provide 24/7 clean power and shift of energy transition from fossil fuel-based generation to renewable energy and decarbonization of transport and electric mobility. There are shifting demand patterns also. A major trigger and game changer is expected to be the energy storage, both in terms of solar as well as wind. As I already mentioned, we are depending, counting a lot on smart meter stake size. Government of India also is helping us by way of coming out of ease of operation and simplification of policy reforms. There have been various policy reforms that have been already implemented. Like, there has been a delegation of the authorities that sanction the TBCB projects. Earlier, all the projects used to be sanctioned by Government of India, but now there has been a delegation and CTU as well as the. NCT, National Committee on Transmission, have been delegated. Beyond a number of more than INR 500 crores each project, then only it will go to Ministry of Power, Government of India. As far as the project projections of growth are concerned for our sector, these are the various numbers. The installed capacity is about 400 GW, out of which renewables are about 110. Peak demand this year has touched a record of 203 GW. The total energy requirement is 1,566, and per capita consumption is only a mere 1,208 units per capita per head in India. From these mere small numbers, you can see the projections for up to FY 2027 and FY 2030. 400 GW is expected to grow more than double by FY 2030 to 840 GW. Installed capacity of RE share out of these 840 GW is expected to be approximately 500 GW, which Government of India has already declared. Peak demand from the present 200, it may touch even more than 340 GW. Per capita income, per capita consumption of energy, Government of India is pushing to take it from 1,200 to 1,600 and 2,100 by FY 2030, and even beyond that up to 3,000 by FY 2040. These triggers are expected to give a potential growth to both generation and consequentially to transmission also. Within that, up to FY 2026 and 2027, sectoral growth in terms of circuit kilometers, MVA addition, and in terms of estimated investment in INR crores is given in this slide. It is expected that by 2026-2027, we should reach a CapEx of INR 27 crores, which we have been doing till 3-4 years back. We are coming to a conclusion of my presentation. Power Grid Corporation of India has always been in the limelight. During this year, we have been fortunate enough to we have been conferred various awards and recognitions by international as well as national organizations. Now I'll take a pause and welcome any questions and answers and clarifications that you may have. Thank you. Thank you, sir, for the detailed presentation. We will now begin the Q&A session. Divya from our team will be coordinating it for us. Thank you, Divya, and over to you. Thank you, Rahul. I would request all the participants to raise hand if you have any questions. Once the questions are answered, kindly put your hand down so that we can know the question queue. We take the first question from the lineup, Mohit Kumar. Mohit, please go ahead. Am I audible? Yes. Yes. Thanks for the opportunity, sir. My first question is, what is your commissioning guidance for FY 2023 and FY 2024, given the, you know, dwindling CWIP numbers? CapEx and commissioning numbers for FY 2023 and FY 2024, the guidance are same. We are projecting that the CapEx for the FY 2023 is INR 8,000 crores. We'll put our best efforts to increase it by approximately 5%-10%, but the present guidance is INR 8,000 crores. FY 2024 also approximately INR 8,000. As far as commissioning is concerned, we are expecting that the commissioning, including looking at the present scenario and the CapEx and the order book in hand, there should be approximately INR 10,000 crores for FY 2023 and FY 2024 also. There has been a Government of India NIP which estimated that by FY 2025, we should have a total CapEx of INR 65,000 crores. Keeping in line with that, the commissioning should be INR 10,000 crore every year for FY 2023 and 2024. Is it possible to break up this between TBCB and the standalone? Standalone. Uh. Yeah. The TBCB share, looking at the present work in hand, is approximately INR 18,000 crore. For FY 2023 and 2024, it should be 40% TBCB and 60% RTM. Understood, sir. These are the slightly rough numbers. There could be a slight percentage change. Sir, last year we saw the monetization of at least INR 7,000 crore worth of projects. What we see FY 2023 and FY 2024 in terms of monetization, do we have, you know, if you can quantify the numbers of projects in terms of crore, which is possible to be transferred to InvIT in FY 2023 and 2024 separately? Yeah. The National Monetization Plan of Government of India has already declared the numbers of asset monetization for Power Grid Corporation of India. As you already know, we have commissioned more than INR 8,300 crores monetization during FY 2022. There has been a kind of spillover of about INR 640 crores, which we have monetized recently during- March. Considering that FY 2023 target of monetization is INR 7,500 crores, out of which we have already done INR 640 crores pertaining to FY 2023 in March 2022. If we consider that, we should be doing approximately the balance INR 6,900 crores monetization. We are ready with the identification of the projects, as well as our consultant has finalized the financial model. FY 2023 target should be able to met through TBCB projects. FY 2024 also, as I already mentioned, there are 12, presently 12 TBCB projects under various stages of implementation. By FY 2023 and for FY 2024. Both the years, we should be, TBCB projects should be sufficient in terms of value to achieve the monetization targets. FY 2023 target is INR 7,500 crores and FY 2024 target is INR 15,000 crores. Understood, sir. Thank you, sir. Thank you. All the best. Thank you. Next question is from the line of Sumit. Sumit, please go ahead. Thank you so much for the opportunity. I have three questions. The first question is for FY 2022, in your cash flow statement, which is part of the exchange disclosures, the cash generated from operations is down year-on-year, mainly because of increase in working capital, from INR 21.5 billion in FY 2021 to INR 64.8 billion in FY 2022. Can you give us an explanation for the increase in working capital? Yeah, that's my first question. Yeah. As you know, we are in the process of increasing dividend payout ratio as well as the regularity of paying the dividend instead of at the end of the year. This year only we have started off paying the dividend in 3 interims and 1 final. In order to kind of generate the requirement of cash flow for paying of dividend, there is sometimes a timing difference between the receivables that get liquidated and the quarterly interim dividends that we have been declaring that we have declared during the current year. The total dividend payout itself is approximately 14.25 into 700 crores, is approximately INR 8,000 crores has already been paid. In addition to that, we have been regularly paying off expensive commercial loans that are on the books since earlier years. On and off, whenever there is a permit, the internal resources permit, we have been paying off the commercial loans. These are the two major factors. The base has increased, you know. The total top line has gone to almost INR 42,000 crore. At the same time, the size of the operational assets has also gone up. The various transmission and administrative expenses, which include O&M, has gone up because of commissioning of various assets, more than 2.27 lakh crore of operational assets. These are year-on-year regular growth only. There are no exceptional working capital requirements other than what I've explained. Just a follow-up on your answer. If I specifically look at the increase in other financial assets, which was, you know, a decrease in FY 2021 of INR 22 billion, it has become an increase of INR 27.8 billion in FY 2022. Similarly, there is a decrease in liabilities and provisions, you know, from INR 1,197 crore to INR 3,200 crore. Specifically, what are these variances attributable to in working capital? Is it because the scale of operations and the scale of CapEx is falling? You know, the advances that you were giving to your contractors, those are also. Being released, okay. Uh, can you- Yeah. I am looking at the BSE filing. Yeah, yeah, I know. I know. Yeah. Yeah. Which page? Page four of 49 on the PDF. I'm looking at the lines which are increase in other financial assets, and increase or decrease in liabilities and provisions. Cash flow. Cash flow. From? You're talking about operating activities or? Yes. Operating activities. Operating profit before changes in assets and liabilities, and you have adjustments for changes in assets and liabilities. Within that, I'm looking at increase in other- Yeah. Financial assets and increase in liabilities and provisions. Yeah. Financial assets. You're talking about INR 2,789 versus INR 2,189. Okay? Yes. Yes. From 2189 to 2789. As far as the explanation, I don't have a ready answer for the change from 2189 to 2789. I am flagging this, and we'll be able to clarify this separately to you. Sure. Uh- Sir, liabilities and provisions also. There is increase from INR 1,197-INR 3,218. Yeah. 1197 to 3218. Yes. Yes. My second question is, you know, in relation to, you know, what is the total project cost of the 6 TBCB projects where COD has been achieved? If you could also add the TPC for the 12 projects which are under construction. Those which have been acquired post Q4. Yeah. Your 6 commissioned projects. Yeah. You wanted the value? Yeah, the total project cost. Yeah. INR 5,599 crores. The total value of commissioned projects is INR 5,500 crores. Okay. Which have been commissioned during current year. Yes. Yes, sir. 12 under construction projects. The total value of 12 under construction TBCB projects? Yes. Actually, they are under various stages of implementation and the cost cannot be frozen at this cost. As we go ahead during the construction, there could be some highs and lows in terms of site conditions and scope changes, as well as there could be some ROW issues also. Because these projects have been won not based on the project cost, they are basically won by Power Grid based on the tariff. Yes, sir. It is not possible to disclose the cost of the project during construction. Once they are fully commissioned, then only we will be able to tell you. The commissioned value as mentioned, it is INR 5,500 crores for the commissioned 6 projects during this year. When you say that the works in hand for TBCB are INR 13,800 crores. Yeah. Can you come again? When you say that the works in hand for TBCB are about? Yeah. INR 13,800 crore, I am assuming that the total project cost of roughly, you know, for these 12 under construction projects, plus whatever you have won post Q4 is in that number. Yeah. That can be drawn, but that will be a ballpark figure. Yeah. Sure, sure. Last question. What is Powergrid Energy Services Limited? What is the mandate? You know, how do you plan to scale up the business in this particular unit? Thank you. Yeah. As I already mentioned, our business unit major 77% growth is, size is from transmission, and balance 3% is shared equally between telecom is 1.7%, and consultancy is only less than 1.5%. In order to focus more in terms of, providing ESCO services as well as, possible investment in the consultancy, we have. It is better that it is, identified as a 100% owned subsidiary, so that there could be, total 100% focus and, special efforts can be made. This is only a beginning. Smart meter and solar we The smart metering initiative that we are tendered for 1 crore meters. Solar. Solar energy, which we have also tried to venture, we'll be operating through our 100% subsidiary, Energy Efficiency Services Limited. Okay. Okay. Thank you so much. Thank you. Thank you. Next question is from the line of Akhilesh Madan from ICICI. Please speak up. Good morning, sir. My first question is on the Leh-Ladakh project. By when would the CapEx begin by FY 2024, and what would be the phasing of the CapEx for this project? If you can give an idea about that. Yeah. As far as the in-principle approval of Government of India is concerned, the Pang-Kaithal is the starting point. Leh is Pang, and in Haryana there is a place called Kaithal. This Pang-Kaithal project estimated cost is approximately INR 26,000 crore, including one gigawatt of s torage. Storage. Out of this INR 26,000 crores, it is estimated that it will be. Government of India is considering to give a grant of approximately 40%. Because of the high cost of the transmission project in terms of complexity and technology challenges, Government of India has not yet finalized the grant, but it is estimated that approximately 40 thousand, approximately INR 9,000 crores will be the grant. The net project cost will work out to approximately INR 17,000 crores. This INR 17,000 crores, you are right, the initial works will start during FY 2024. FY 2024, we are tendering out the transmission line in the next month. We will be ready so that as soon as the cabinet approval comes, we can start. There is a limited working season available. Government of India in the project report itself has given five years for the completion. The major investment will be coming in FY 2024 onwards only. Onwards only. That too, the major expenditure is bifurcated between HVDC terminals and transmission lines. As you know, the HVDC terminals and substations will take lesser time, so they will be coming in the back end of these five years. Even though you can roughly say that the annual CapEx should be approximately INR 3,000 crores-INR 4,000 crores, but during the second half of this project execution of five years, the major expenditure should occur. We have, however, started the tendering activities for the transmission systems already. Okay. Tendering for substation will happen later. Is that understanding correct? Yes. You're right. Okay. The storage will be coming in the last phase only. Yeah. 1 GW storage also is there included, and it will also come in the later part of the project. Because the gestation period is relatively less as compared to the transmission lines. Understood. Sir, my second question is with respect to the ISTS expansion plan which you had shown in the slide. Whatever projects Power Grid is, you know, till now you have, I think, received two projects under nomination. All those like Leh-Ladakh project and other Navsari project which you had mentioned, all that is included in this, in the INR 27,000 crore-INR 29,000 crore number which you're mentioning, right? There is nothing excluded from this number. You are right. Understood. Sir, your best guess estimate of what can be the CapEx at the intrastate level, if you can give an idea about that as well? Intrastate, we are trying to involve various some selected states like Gujarat, Himachal, Maharashtra, and down south also Telangana. For various discussions, there can be any possible whether Power Grid will make a investment and there can be a JV route also. We have been at various stages of discussions, but as I already mentioned, there has not been a very keen response from the states. However, Government of India is pushing the possible development in the intrastate through various commercial incentives. Even though we don't have anything concrete in hand, it is expected that, the potential being very high, it is expected to be INR 1.9 lakh crores as per the Government of India estimates. However, we have not yet fructified any deal with any of the states. However, it is at various advanced stages. That is one more reason why we have formed our subsidiary Energy Efficiency Services Limited, which will kind of focus through a dedicated expert manpower and we'll approach various states and kind of explore various possible models of joining hands. Understood. Sir, just one last clarification. On this ISTS plan assumes what renewable capacity addition? Can you come again, please? Renewable? The expansion plan where you're talking about INR 27,000 crore kind of CapEx, what is the kind of renewable capacity addition which has been assumed to happen in the industry for this CapEx to actually, you know, play out? See, out of that 500 MW renewables by 2030. 500 GW. Oh, yeah. Gigawatts. 500 GW renewables. Presently up to about 230 GW, renewables transmission lines have been. For that, balance, things, still the potentials are being identified, by the MNRE. Depending on the source where the renewables be coming, the transmission planning will be done by the CTU and the CEA. What the figures Seema Gupta has already told for the next 5 years is based on the CTU rolling plan, which has just come in the month of March. This is what we are protected till 230 GW. If beyond that the planning is yet to happen. Yeah. Yeah, yeah. Okay. Thank you so much. I'll get back in with you. Thank you. Thank you. Thank you. Next question is from the line of Apoorva Bahadur from Investec. Apoorva, please go ahead. Hi, sir. Sir, you highlighted that your work in hand includes the Leh-Kaithal line. Wanted to know if that is net of the government support or gross of the government support. I'm sorry. Can you please come again, sir? Sir, your work in hand number of 53. Does it include full INR 26,000 crore for Leh line of the INR 9,000 crore government support? The breakup is given in the slide. If you can see the slide, there is a breakup given that the INR 53,300 crores, there is a breakup that presently under execution projects is approximately INR 7,000 crores and new projects which is given at INR 31,800. This includes majorly two projects. That is Leh-Ladakh HVDC line and Navsari. There could be some augmentation, small value. The third one is TBCB projects, INR 14,800. All these three put together, it's INR 53,000 crores work in hand. Right, sir. I got that. In this INR 31,800 crore, this includes full INR 26,000 crore for Leh line. Yes, yes. It is a full value of Leh Ladakh. Okay, sir. Fair enough. Sir, also if you can come to this last slide of the ISTS expansion plan, right? Yeah. While on a CKM addition, on MVA addition by 26%-27%, the figure declines significantly. The CapEx or expected investment is still around INR 30,000 crore, INR 25,000 crore-INR 30,000 crore. Sir, why is this divergence? See, at the end of these things might be there is a activity systems has to be planned for this from Raisen to the t o the Bhiwadi to the Haryana side transmission system has to be planned. When this transmission system will be coming, then it will be a huge investment thing. For that, planning is being done by CTU right now. Mm-hmm. Okay. Got it, sir. Sir, last question from my side. I think there was a deferred tax reversal during Okay. Any specific reason for this or was this a one-off or should it be seen- Deferred tax liability majorly on account of the fact that there is one: we are still under MAT. PowerGrid is still under MAT, and it is expected that the MAT credit is growing, but we will not be coming under normal tax till 2027. One is that the MAT credit is growing, and second, we are not able to utilize. Then in addition, there is one 80IA, Section 80IA benefit given by government here for the projects that have been commissioned up to March 2017. There, the value of assets which have been commissioned up to March 2017, we can utilize under the infrastructure provision for the next fifteen years, that is up to 2032. Any 10 years profit there we can utilize our MAT credit, 80IA benefit. In general, during these 15 years, from 2017 we have not triggered the 80IA benefit till now. That is, out of the 15 first 5 years, the accelerated depreciation itself kind of is enough not to avail the benefit of 80IA. This is the first year, 2022. After 5 years, we have made an effort, you know, and calculations have been modified to see whether we can avail 80IA benefit. The 80IA estimate methodology for 2021 has resulted in an increase of approximately INR 591 crores. That is one. And a similar approximately INR 570 crores has been observed during current year, FY 2022. Both, extra provision, extra expense, made in 2021, that error of INR 591 crores has come, recognized during this year, as well as the current year's, 80IA benefit of INR 570 crores has been considered. Both of these put together, there has been a double effect of approximately INR 1,100 crores. These are the adjustments that happen because of, the tax audit takes time. 2021 tax audit has been completed only in October 2021. That is why this year, this disclosure has come this year. Okay. This is not affecting the PAT, because what happens is, whatever 80IA benefit I take, that is passed on to the DISCOMs only because anyway, tax is a pass-through, so it is shown, it has been passed under the deferral account. On the net, PowerGrid's results, there is no impact. Okay, sir. This benefit will continue for some years. Yeah, you're right. I'll take one minute. One gentleman asked about the cash flow changes. If he is available, I would like to just clarify. This is operating profit before changes in assets and liabilities. One doubt that was asked is what is the change in the decrease in the other financial assets from INR 2,100 to -INR 2,700? What happened is, we have, as you know, we have commissioned Raigarh-Pugalur project has been commissioned approximately INR 21,000 crore in various stages. Our regulator, CERC, has heard the petition and the order has been reserved. However, approximately the tariff is expected in the range of INR 2,500 crore-INR 2,700 crore per annum. It is a contracted asset. That is how the INR 2,700 crore, even though the order is reserved, because it is commissioned, we have brought it under the increase in financial asset. Yeah. Yeah. That is one. That is the reason for the change from 2,189 to 2,789-. The second reason the gentleman has asked is: Why is there a decrease in the liabilities and the provision from - 1,197 to - 3,218? During the year, our CTU, CTUIL, 100% subsidiary has been formed, and whatever liabilities are shown here into the PowerGrid account, those liabilities have been shifted to CTUIL. It's a separate legal entity, even though it's a 100% subsidiary. The transfer of liability on account of various transmission licenses amounting to approximately INR 3,000 crore has been moved from PowerGrid books liabilities to CTUIL liabilities. Thank you. I hope this answers the question, and if any further clarification is required, we'll be available. Thank you so much, sir. That is very clear. Just one follow-up on the other financial assets clarification. This INR 25 billion-INR 27 billion range, you know, which you said, so is this going to be a recurring item till the regulator acts on this petition? This will definitely continue. However Yes. We are expecting that the order is reserved for last more than a month. We are expecting that we have been pursuing, because the number of petitions with CERC or regulator are very high. They also have orally assured us that the order should come anytime soon during the current year. In this quarter it should come. Otherwise it would be an annual tariff. Basically. Yeah, it is an annual tariff. Yeah. Yeah. It is an annual tariff. Because of the project size, it's an annual tariff. Billed monthly, of course. Got it. This is very clear. Thank you. That is why, you can also see that there is an increase in the unbilled income of Power Grid, which is accounted, paid tax on, and dividend also is distributed. That is another reason why we are carrying a slightly escalated burden of unbilled income, on which we are both paying tax also and distributing dividend also. That is one more reason why there has been an increase in the working capital during the year. Thank you. Thank you. Thank you, sir. Next question is from the line of Anuj Upadhyay from HDFC Securities. Anuj, please go ahead. Yeah. Hi, sir. Thanks for the opportunity. Am I audible? Yes, please. Yeah, fine, sir. You mentioned about the upcoming opportunities to the tune of INR 31,850 crore. Any timeline when we expect the bidding to be out for this project? It's INR 31,800 crore, opportunities are- Yeah. See, for this, Leh system, we'll be able to start the work only after the cabinet approval for the. No, no, no. Opportunities, Sunil. Opportunities. -Opportunity. Opportunity. Opportunity. Okay, opportunity. ISTS is the Page 26. Yeah. Whatever. It will be tendering out, right? You mentioned that majority of them are coming in Gujarat. Yeah, yeah. Just one minute, please. Yes. See, basically around up to 27,000 ISTS, it's INR 21,000 crore under bidding already, and this INR 8,600 crore is still to come. That is where the schemes have been cleared in the various NCT meetings. But for that, still, REC/PFC has to come out with the bids. Similarly, for the intrastate only there are two projects, one in Rajasthan and one in MP. For that again, they are under bidding. Expected timeline. He's asking. It is expected between 6 to 12 months. Okay, sir. Does this area also include a site where we are already facing an issue related to GIB? Or this something which is in different location? These are mostly in. Yes, there are some projects in basically Rajasthan also, mostly in Gujarat. However, I would like to clarify that the GIB issue, even though we are there in the picture, but at our rating 400 and above. Yeah. Technically, the GIB issue does not exist. Because the transmission projects are looked at on a holistic basis on this issue by the Honorable Supreme Court, we are also involved and our works are also slightly delayed. Otherwise, it is technically very clear that it is only applicable below 220 KV. Yeah. Our lines are 400 KV and above only. We should be coming clear of this issue. Thanks for the clarification, sir. Another thing, sir, you have mentioned about few of the smart metering opportunity DISCOMs. Any progress which we have made with any particular states out here? No, nothing concrete has happened. We are in discussion with, as I mentioned, 2 or 3 states, and they are taking internal approvals to give 1 or 2 DISCOMs to begin with. In order to prepare, because there is a gestation period in the smart meter manufacturing of about 7-8 months. Okay. We have taken an advanced action and without having a confirmed order in hand, we have already tendered through GEM. We are in the process of tendering for 1 crore meters. So that the moment we get a confirmed order, because the total size is expected to be about 25 crore meters. We are very confident that we should be able to strike a deal and a contract with because this will be implemented across India, definitely. Presently we are in- The 4 crore meters are through the MoU route where we Out of these 25 crores, Government of India also has proposed that 4 crore meters should be allocated to CPSEs through MoU route. We are trying to avail that 4 crore meter opportunity which is reserved for CPSEs. Got it, sir. Got it. Any quantum or the specs you would like to quantify, sir, for this opportunity of 1 crore smart meter? Yeah. Approximately the total project estimate, if you are asking, it should be somewhere around INR 8,000 crore-INR 9,000 crore. Fine, sir. Lastly, sir, on the debt-equity contribution which we are looking to invest in the Leh-Ladakh project, sir. Again, one clarification, would that debt equity be on the entire INR 26,000 crore or ex the grant amount which the government has given to us? No, no. Debt equity will be only on the INR 18,000 crore minus the government grant of 40%. Yeah. Yeah. That is on INR 17,000 crore, you are saying debt equity. Yeah, yeah. For all practical purposes, the project cost, let us take it as INR 17,000 crore only. Yeah. That has been an approved methodology with our regulator, CERC, in for earlier one or two projects also. Yeah. Yeah. Fair enough, sir. What would be the ratio, sir? It is not yet finalized. It is an RTM project, so it should be normally 70-30 only. It's not a TBCB project where we have- Right. Fair point. Fair point. That's all, sir. Thanks for the opportunity. Thank you. Next question is from the line of Swati Jhunjhunwala. Swati, please go ahead. Good morning. Thank you for taking my question. I had three questions. Firstly, regarding the 1 lakh smart meters that we have tendered, in how many months do we expect the agreement to be signed? Second, are we tendering only for smart meters, or are we open to the AMI ASP solutions as well? Lastly, are there any plans for divestment or reduction in stake for the Powergrid Energy Services Limited subsidiary? Ma'am, thank you. First of all, there are no concrete agreements, and we are not in a position to give you a specific timeline which you asked. We are only at the various stages of advanced discussions with the selected states because we also don't want to go to every state and do this business because we need to be very careful of the slightly higher risk involved in comparison to the transmission, intrastate transmission under RTM that we do. Payment security mechanism, credibility of the particular state and the guarantees that we can get, and also the rate of return that can be negotiated with the states. These are the various parameters that will decide based on which only we'll be able to go ahead and sign. First, we will not be able to give you any timeline. We are only looking and acting this as this opportunity. We are very confident that it will definitely come out, but we don't have anything concrete now. Second, I actually, thanks for correcting me. It's not just procurement of smart meters. It is end-to-end solution. Yeah. Including the integration and maintenance of the smart meters also will be in the scope of Power Grid for seven and a half years. Yeah. The total project is expected to be approximately for 10 years. First 2.5 years will be spent on procurement and implementation and execution. Once it becomes operational over a period of 2.5 years progressively from the date of award, next 7.5 years we'll have to do the operation and services also for these meters. At the end of the 10th year, the smart meters will become owner, the DISCOM will become the owner, and by that time we would have received our money through, let us say, annuity model. That is number two. Only thing I can say about this offer 25 crore meters. The Government of India target is 10 crore meters by FY 2023 and balance 15 crore meters by FY 2025. All 25 crore meters are to be installed and commissioned by FY 2025, basically. Right now the various states have submitted their detailed project reports to the nodal agency, which is REC and PFC, and they are under various stages of approval. Only the few states have just come out with the tenders, and we are under discussion with them. What is your third question on divestment of our Energy Services subsidiary? Can you come out please? Yes, sir. Yes, sir. My question was, are we planning for any divestment or any reduction in stake in future years for our Powergrid Energy Services Limited subsidiary? Subsidiary. No, no. There are two things, ma'am. One is, Energy Efficiency Services Limited, EESL, is a joint venture in which we have increased our stake from 4% to 33%. EESL is a joint venture partner in which Power Grid is one-third shareholder. There we are increasing our presence and presently, the operational top management is including Power Grid's chairman is the chairman and we are actively involved in that. Second is, in the current year, we have incorporated one subsidiary for our own engineering efficiency and consultancy services. We have instead of business segment incorporated a new company and just have started the activities. Whatever consultancy projects Power Grid will win, we will operate through our subsidiary. These two are different. There is no question of divestment anywhere. Thank you, sir. Just to follow up, if I can. Can you disclose any states that you are in discussions with right now regarding the tendering of meters? No, ma'am. We are. We are discussing with ma'am. Again, based on the things we are just discussing with many states. Let us say 45, then only we can disclose. Okay? Okay. Thank you so much, sir. Thank you. Next question is from the line of Swarnim Maheshwari from Edelweiss. Swarnim, please go ahead. Okay. Yeah. Hi, sir. Good morning, and thanks for the opportunity. Hi, Maheshwari. Yes, sir. Sir, you did mention about, you know, the plan to monetize INR 7,500 crore worth of assets in FY 2023. If you can also clarify what mode are we going to actually look at? Is it going to be through a competitive bidding or is it going to be on a negotiated basis? Only I will say it, the last InvIT what we have done, the model which has been now specified in the NMP has been changed completely. In the last InvIT, we have transferred the ownership to the PGInvIT. On BOOM basis. On BOOM basis. Now the present guidelines of the NMP are basically it is, ownership is to be transferred for a limited period, and it has to come back after a particular period. Right now the basic guidelines for this, how to move forward for this new NMPs are still under approval with the cabinet. As soon as these guidelines will be finalized, because now, lot of decision-making is being given to the secretary level committees. Once they are finalized, we will be able to disclose further. Yes. We are planning to come out with our monetization on Q3 and Q4 only. Yeah. It is not exactly 7,500, out of which 640 is already done. Balance 6,780 shall be done. We have proposed a model that it should be on similar lines as last year, but only with the things that instead of BOOM, the asset will come back at the end of the transaction period with scrap value as a nominal INR 1 or something, which fulfills the condition that the asset should come back after the transaction period. We are still awaiting for the specific Cabinet approvals, which are expected anytime. Got it, sir. Got it. Thank you. Sir, my second question is, you mentioned about your foray into the renewable generation side also. What is your thought process over here? I mean, what's the total amount of capacity that you envisage, say, two years, three years down the line? Renewables. Solar. See, basically, we have got surplus land, parcels in our various substations. The bigger one was this in Nagda. We are going with the 100 MW solar plant in Nagda. We have identified 3-4 more stations where we can have a potential of around 30-40 MW. We are also studying that with our consultant, and we'll be coming out with. Yeah, there is a word of caution that this is only a test point where we are testing the ground as to how because of the severe competition in the generation, solar generation also. This is because we have spare land, and we are coming out with a test project. Looking at the competition and the maturity and the opportunities with respective states to connect to the grid, the power that we'll generate, we'll take a step very cautiously forward. Basically towards our sustainability initiative, so that our own carbon footprint also we can reduce through them. That is also one of the thing. We may consider using this solar power, renewable power for the data center what we are planning in Manesar. Yeah. At the moment, if I understand this right, this is more of a pilot project and testing the waters rather than a commercial entry. Yeah, yeah. Also, as Sunil has mentioned, it is towards, you know, complying with the, it's an ESG initiative and also to reduce the carbon footprint of our own, auxiliary power consumption for various, substations. You are right that, we are not formulated or pledged capital aggressive, investment, policy for, renewables generation. Right, sir. Thank you so much, and wish you all the best. Thank you. Thank you. Due to time constraint, we'll take one last question from Mohit Kumar. Mohit, please go ahead. Yes, sir. Hi. Thanks for the opportunity once again, sir. Sir, have you changed the classification trade receivables in this fiscal? Are you putting unbilled receivable, unbilled under the trade receivables? Is that fair? Yes. Yes, sir. Unbilled accounts. Actually, during the year, there has been change in this policy Ind AS guidelines. Accordingly, whatever contracts we are having with certainty and we are having the right to bill. There is just a passage of time. Just like for billing for March, we do in April. That was going in unbilled debtors previously. Now as per new guidelines, wherever we have the undisputed right to bill, it is passage of time, we will bill later on. That is why there is an increase in the. That is included in the receivables. Accordingly, that part has been reduced from the unbilled debtors and has gone to the receivables. Other than that, the credit period is 45 days. March bill, generally, will be paid after May 15th only. Because the March bill is billed on 5th of April with a 45-day credit period, so it becomes due only on the May 20th. However, because of the change in the Ind AS guidelines, just because, the passage of time is the only reason where, nothing else is preventing us, then because of the latest, policy guideline, we have moved this amount of March billing, approximately INR 3,200 crores from unbilled to, trade receivables. That is why you are seeing the jump. It is in compliance with the Ind AS, which has been changed this year only. Sorry, if I may squeeze one more question, sir. Do you think there is upside risk to the CapEx target and the CTU plan? Because I see that there is tapering in FY 2026 and FY 2027 in circuit kilometer and MVA terms. CTU plan. No, see, again, it is a rolling plan. What I have told you, there's still around 270 GW renewables transmission planning is still to be done. That is basically, this plan will come in every six months. In the next plan, when it's, in December comes for the future years, it may, it will increase. Okay. As soon as the, generation resources for the 270 GW are finalized. What is happening is earlier the generation used to be on a traditional, which had a gestation period of more than 2-3 years. Presently there is a shift from fossil fuel project execution to renewables. Gestation is very less. It's about 10-12, 13 months generation come for a solar or a wind project. That is why the visibility is not very extensive. It's not beyond more than one and a half years. There is one more thing. Now it's a big focus on the storage also. When the investment towards the storage will be coming up, the investment in the transmission will be proportionally reducing. The cost for all the renewables transmission line can carry 24/7 power if sufficient storage is provided at that end. That is also thinking going on. Roughly around 27 GW storage is planned for 2000 by 2030. With all that things, in the next plan, you'll be getting a more clear picture. Yeah. Understood. Thank you, sir. Thank you. Thank you, sir. Over to Rahul. Yeah. I would like to thank the management for the time for this excellent call. We've had a long discussion. Hope all the queries have been satisfied of the investors. For any further queries, you can write to the company or to me, and we can forward it. I would like to thank the entire management of Power Grid for their time today. Over to you, Mr. Mohammed Taj Mukarrum. Thank you. Best wishes to all. We are always available and, thanks once again all investors for, reposing so much confidence and supporting us. Thank you. Thank you, sir. Thank you, everyone. You can now disconnect. Thanks, Rahul. Thank you, Divya. Thank you, sir. Thank you, sir.