Ladies and gentlemen, good day and welcome to the Power Grid Corporation of India Q2 FY 2026 Earnings Conference Call hosted by ICICI Securities. As a reminder, all participant 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 touch-tone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Mohit Kumar from ICICI Securities. Thank you, and over to you. Thank you [crosstalk]. Good evening. On behalf of ICICI Securities, I welcome you all to the Q2 FY 2026 Earnings Call of Power Grid Corporation of India Limited. We'll start with a detailed presentation, which will be followed by Q&A, and I would like to thank the management for giving us the opportunity. Without much delay, now I hand over the call to Shri Satya Prakash Dash, Company Secretary and Compliance Officer at Power Grid. Thank you, and over to you, sir. Yeah. T hank you, Mohit. [crosstalk]. This meeting is being recorded. Good afternoon, ladies and gentlemen. It's my pleasure to welcome you all to this webinar for analysts and investors of Power Grid Corporation of India Limited. Today, our [functional] director and senior management team will discuss the company's business, and share our performance outlook based on our recently announced financial results. I would like to introduce our esteemed [Functional] Director, Dr. R. K. Tyagi, Chairman and Managing Director. Good evening. Shri G. Ravisankar, Director of Finance and CFO. Good evening. Dr. Yatindra Dwivedi, Director of Personnel. Good evening. Shri Naveen Srivastava, Director of Operations. Good evening. Shri Burra Vamsi Rama Mohan, Director of Projects. Good evening. I would now like to invite our Chairman and Managing Director, Dr. R. K. Tyagi, to deliver the opening remarks and presentations, following that with the [crosstalk] Q&A session. Over to you, sir. Good evening, all. I will give a brief presentation about Q2 results. My presentation will consist of key highlights, project execution, next, operations, financials, other businesses, business outlook, then ESG, CSR, and awards which we got. India, as you know, that Power Grid is India's flagship power transmission utility, where the Government of India shares about 51.34%. We have MOU rating excellent since 1993- 1994, and we are a dividend-paying company since 1993. Our current credit ratings have been at par with the sovereign credit rating, which is in domestic, it is AAA and in international, it is BBB-. Next, we have our board, Director of Finance, Shri G. Ravisankar, Dr. Y atindra Dwivedi [crosstalk], Srivastava, Director of Operations, and Independent Directors, Shri Tapasya Paswanji, Shri Rohit Vaswani ji, Shri Smt. Sajal Jha, and the Government Nominee Director, Dr. Saibaba Dharamulla, and Shri Abhay Bakre ji. Next, we have a transmission system about 181,000 circuit kilometers, 287 substations. Power Grid is the world's largest 765 kV transmission network. It is being operated by Power Grid. We have the largest 765 kV transmission network in the world. Next, we have an innovation milestone. We have developed insulated cross-arm for 400 kV transmission lines, which will reduce the right-of-way. Apart from that, even trees are being cut in various areas, so it will be good for the environment also. It is a step towards Atmanirbhar Bharat. This insulated cross-arm is being used in our 400 kV transmission line between Narela to Maharani Bagh in Delhi. It will enable about 20% reduction in right-of-way, apart from saving trees. Yeah, next. To take care of any damage because of natural calamities and disasters, we have developed India's first 220 kV mobile GIS in collaboration with Toshiba. This 220 kV mobile bay can be used anywhere in any station. It is mobile. It can be even, a flood-hit station or any other natural calamity, w e can immediately use within 48 hours. In case of RE generation, where the bay is immediately required for evacuation of power, this can be used as a spare bay also. It will be good for evacuation of renewable power from RE generations. This has been used, and we are in the process of procurement of another 220 kV and 132 kV also, trailer-mounted. Next, recently, we have been accorded a principal approval for upgradation of Sasaram HVDC project, at an estimated cost of INR 3,440 crores under RTM. This will be from 500 MW capacity. It was LCC-based HVDC. It will be 1,000 MW VSC-based HVDC. The unique feature will be that it will be by developing indigenous semiconductors, and supply chain will be from India for HVDC technology. Our asset management practices have been benchmarked by international utility, OHROS Consulting Group from Netherlands. Power Grid has been ranked in the first quadrant. That was a high score in asset management practices, with high operational performance in overall benchmark. 12 other major utilities from Asia, Europe, Australia, South America, and the Middle East also participated. Our score was 4.14 out of five, wh ereas the global average is 3.68. In 2023, in the last benchmarking, we got about 3.22, so there is an improvement in our asset management performance. Next, i n project execution and commissioning, next, w e have done a CapEx of INR 15,385 crores as against INR 10,002 crores in the last financial year. As far as capitalization, it is INR 4,587 crores till date, as against INR 4,006 crores in the last financial year. These are the elements which have been commissioned s o far. Transformation capacity at Khavda III, three-number 1,500 MVA ICTs have been commissioned. At Ahmedabad, two-number 1,500 MVA ICTs have been commissioned, then two-number ICTs at Navsari, two-number 1,500 MVA ICT at Fatehgadh- 3 a nd one-number 1,500 MVA ICT at Bikaner. S ix-number at 400 kV in Kurnool- III, two-number at New Navsari, then one-number at Nalagarh, one-number at Hasan substation, and one-number at Fatehgadh- 3 station. In transmission line, we have commissioned Khavda II, Khavda III line, then Banaskanta to Ahmedabad 765 kV line, then Banaskanta to Sankhari. Jaipur-Jagdalpur, it is an inter-regional link between Western Region and Eastern Region. LILO of Agra-Jaipur at Dosa, then Namsai-Kathalguri Circuit 1 and Circuit 2 was c ommissioned about five months b efore scheduled date, ahead of schedule. Substations, what we have commissioned is 765 kV by 400 kV Khavda III, 765 kV by 400 kV Khavda II and then Ahmedabad substation and Dosa substation. This 220 kV underground cable in Zojil a pass, it was a very critical project. It has been commissioned yesterday. Narela also has been commissioned 765 kV by 400 kV. Kishanpur- Kishtwar and ICT 4 at Kurnool- III, these have also been commissioned. Next, o ur availability is g ood. Normally, it is more than 99.75%, at which we get maximum i ncentive. This time also, it is 99.83%. Trippings per line is also within limit. It is 0.17 trippings per line. Next, in h alf-yearly, r esult is total income INR 23,115 crores. EBITDA is INR 19,109 crore. Profit after tax is INR 7,197 crore. Net worth is INR 98,932 crores. Our gross fixed asset is INR 295,148 crores. Debt to equity ratio is 58 to 42. If you see from here, that t ransmission charges h alf-yearly, first half is INR 21,356 crores. Consultancy services 821, telecom 495 and o ther income 443. Total income is INR 23,115 crores, o perating expenses, 3,903. After depreciation, profit after tax is INR 7,197 crores. Next, o n a standalone basis, our income is INR 22,605 crore. EBITDA is INR 19,330 crores and p rofit after tax is INR 7,208 crores. These are some financial performance parameters. Gross fixed asset, INR 295,148 crores. Capital work in progress, INR 47,782 crore. We have debt as of today, INR 135,000 crores. Net worth, INR 98,932 crores. Earning per share, INR 7.74 per share. Book value per share is 106.37. Debt to equity, 58 to 42. Return on net worth is about 7.27. These are some other key financial information. For Q2 financial year 2026, income for previous period is INR 93 crores. Interest on differential tariff, INR 296 crore. Interest from subsidiaries and joint ventures, INR 794 crore. Incentive, [crosstalk]. Dividend from JVs, INR 24 crores. Dividend from subsidiaries, INR 300 crores. Dividend from associate and others, INR 18 crores. [FERV], INR 491 crores. Equity in TBCB, it is INR 4,956 crores. Equity in TBCB under construction, it is INR 3,448 crores. Short-term loan, we have INR 2,209 crores. Commercial performance has been good. Against billing of INR 18,248 crores, a realization, INR 18,737 crores, which is 102% of percent realization. Outstanding dues is INR 2,899 crore, as against Q1 of INR 3,151 crore. Major dues are from Tamil Nadu, Uttar Pradesh, and Telangana. In telecom, our revenue is INR 570 crores, as compared to last financial year H1 results, which was INR 544 crores. We got orders worth INR 84 crores for a multi-year project. Customer added 22 numbers. Backbone availability has been 100% as always. We have telecom network of about 100,000 km. Next, in consultancy, our income has increased up to INR 821 crores from INR 255 crores, mainly because of smart meter business being done by PSL. In domestic, we have opportunities in RE, intrastate, diversion, BSS, green hydrogen. In international, we are pursuing transmission opportunities across South Asia, Africa, America, Europe, and Australia. We got 15 new orders domestically and ongoing, about 81. TBCB and other projects, we have 187. In international, we got three orders, ongoing 14 numbers. We have footprints in 25 countries. Next, as you know, key enablers for our growth are a $10 trillion economy. This is vision of our honorable prime minister, which will require rapid industrialization and urbanization. There will be a lot of EVs, green hydrogen, data center, which will demand electricity. There will be a huge requirement for energy storage. There will be BESS 47 GW by 2032, and pump hydro storage will be about 36 GW by 2032. In global energy integration, One Sun, One World, One Grid, that will require a lot of opportunities for Power Grid also. Next please, in Brahmaputra basin, recently there is a scheme or plan announced by the Ministry of Power, which will require about INR 191,000 crores up to 2035. Beyond 2035, it will require about INR 451,935 crores. Put together, we will have opportunity for INR 642,944 crores. It will have HVDC. 42 GW of HVDC corridors will be there. It will mainly have HVDC stations at Namsai in Arunachal, Roing in Arunachal, Niglok, Silapathar, Gogamukh, and [route] for bulk power transfer from North Eastern Region to the rest of the country. There will be PSP integration, 3.7 GW by 2035 and 7.4 GW beyond 2035. There is a huge opportunity in Brahmaputra basin. This is what we have works in hand. We have about INR 152,000 crores worth projects in hand, out of which INR 103,000 crore projects are from TBCB. Next, these are the details of our works in hand, so INR 152,287 crore, out of which INR 102,992 crores in TBCB. The new, under RTM is INR 37,100 crores. Ongoing RTM is INR 9,542 crores. Others, about data center and cross-border smart metering, is about INR 2,653 crores. Our commitment for CapEx for financial year 2025, 2026 is about INR 28,000 crores, which will have TBCB projects worth INR 19,062 crores, and RTM projects, INR 3,554 crores and others will be about INR 5,384 crores. We are having eight pink stations, which are headed and operated, managed by only female employees. Four were announced in last financial year, and four have been added recently. These are mainly in Gurgaon, then Lucknow, Pune, and Bidadi. Eight stations, four were earlier there. Today we have eight pink stations, which are headed by female employees. In environmental energy management, we have 29% of power from green tariff, 33% share of renewables in total power consumption. In water management, we have 43% capacity, we have increased for rainwater harvesting. Our 90% of waste generated is being diverted from disposal, through recycling and reuse. In green mobility, we have recently donated electric buses to AIIMS New Delhi. In Homi Bhava Cancer Hospital and Research Institute, Vizag, we have donated India's first ring gantry linear accelerator machine at this center. Our honorable President of India conferred a SCOPE Eminence Award for Human Resource Management to Power Grid. Rajbhasha Keerti, first prize was given to Power Grid on the occasion of Hindi Divas. Our Director of Personnel was conferred People's Leader of the Year 2025 Award. Exceptional Employee Experience PSUs, we got award in ET HR World Awards 2025. Education for Violence- Affected Children in Chhattisgarh, we also got award in that. Star Performer Award was also given to Power Grid. Thank you. Should we begin with the question- and- answer session, sir? Please carry on. Thank you. Ladies and gentlemen, we will now begin the question- and- answer session. Anyone who wishes to ask a question may press star and one on the touch-tone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. We'll take our first question from the line of Mahesh Patil from ICICI Securities. Please go ahead. Yeah. Hi sir, t hanks for the opportunity. Sir, my first question is on the capitalization number. Given that we had achieved around INR 46 billion of capitalization in the first half and we have guided about INR 220 billion for the full year, do we still maintain the [crosstalk]. Question is, what are the challenges we are facing to get this number and what are you doing to kind of accelerate the execution? Okay. As far as capitalization is concerned, we are committed for increasing capitalization or commissioning of our projects. Mainly, we are facing problems from ROW, from landowners. The Government of India is very positive. They are helping us. We have got one guideline issued by the Government of India on this 21st March 2025, for increasing land compensation rates. As against 30% for ROW in urban areas, from 30%- 60%, and 45% in semi-urban area. Earlier, ROW and land compensation was paid based on circle rates. Now it is based on the actual market rate. For market rate, there is also methodology given in the guideline, that there will be three valuers. First valuer will be selected by farmers. Second valuer will be selected by Power Grid. Third valuer will be selected by district magistrate. First valuer of farmer and second valuer of Power Grid, they will submit the report. Average of these two will be considered as the base value for market rate. If difference is more than 20%, in that case, the third valuer rate will be opened. If third valuer is closer to say, farmer's valuer, then it will be average of farmer's valuer and the third valuer. If the rate is closer to say, Power Grid valuer, the average of these two valuers will be taken. This methodology is being used by Delhi, Haryana, and now other states. Based on the Government of India guidelines issued in March, the State of Haryana and Delhi have issued somewhere in June and July. Other states are also issuing such guideline [crosstalk]. I'm sorry, sir, we cannot hear you. Sir, you're on mute, management line. Yeah. Yes, we can hear you now. Please go ahead, sir. These Government of India guidelines are being adopted by various states. Based on those guidelines, the rates by valuers are being finalized, which are being adopted or notified by respective DMs. Based on that, we are working in various lines. This has taken some considerable time, b ecause of that, some projects have been delayed, which are likely to be commissioned in Q3 and Q4. We are still targeting about INR 20,000 crore projects to be capitalized, about INR 20,000 crores by this financial year 2025, 2026. By March 2026, we should be in position to commission up to INR 20,000 crore projects. Okay, sir. Thanks for the detailed update. My second question is on the equipment ordering. Have we tied up for the equipment for the, let's say, next two, three years of our execution? Is there any shortage in terms of transmission equipment, HVDC, etc.? Yes, you are right that t here is a shortage of some equipment like transformer, GIS, and HVDC equipment. For transformer especially, which delivery time is more than one year because manufacturing and testing itself takes more than one year, w hat we are doing, we are procuring these transformer and reactors well in advance as bulk procurement. These procured transformers and reactors are allocated for various projects to be what we win in future, so this constant of transformer supply is not there. As far as HVDC equipment are there, so they cannot be procured in advance because they are specific to a specific project. For that, the Government of India is giving us four years to five years for commissioning. In that period, we are able to get these HVDC equipment also. Similarly, GIS also, there is a shortage, but still we are getting these equipment on time. We will be able to commission our projects on time. Thank you. Okay, sir. Okay, sir. Thank you. Sir, my last question. [crosstalk]. Yeah, if I may, my last question is, sir, have you started tendering for the Leh-Ladakh HVAC project? Leh-Ladakh HVDC project, actually we have gone to the market. We came out with the tender. W e also got one bid, but that bid was not acceptable to us because there were so many queries. We came to a conclusion that HVDC project may not be feasible in this Leh-Ladakh to Kathal project. Now, Government of India is considering this project to be replaced by AC project. We will have 400 kV transmission line from Leh-Pang to Kathal. That project is under discussion. Very shortly, we will get some information about that. Okay, sir. Thank you so much. Thank you. Next question is from the line of Puneet from HSBC. Please go ahead. Yeah, thank you so much. My first question is just on Leh-Ladakh. When you move from HVDC to AC, will your commissioning timeline increase or reduce and your CapEx goes up, goes down? How should one think about this? [crosstalk]. Actually, this project, when we considered HVDC project about three years back, that time, cost was about INR 20,000 crores. Now, considering this supply chain constraint, even if we consider that this is a feasible project, we took even cost estimate from our various bidders. Now, cost is coming about INR 42,000 crores. Considering various challenges and constraints shown by manufacturers or suppliers, it may not be possible for us to continue with HVDC. We have already done detailed studies. AC is another option which we are considering, and the cost of AC will be close to INR 30,000 crores. CapEx will not be less as compared to earlier estimate of INR 20,000 crores. It will be more than that. Okay, a nd timeline? Timeline will be able to maintain as of now, because all 400 kV and these technologies are already available in the market, except synchronous condensers which may take some time. Still, we are expecting that by 2029, this project can be commissioned. Understood. On your standalone accounts, you, in a way, end up paying effective tax rate of 20% or even less than that. How long will that benefit last? I request Director of Finance to [crosstalk]. Pardon. Please c an you come again? Yeah. T he effective tax rate, when I look at your standalone balance P&L, it comes to less than 20% over the last few quarters, almost eight, nine quarters. When do you think this will revert to normalized 25% rate? You see, it will come to normal when the capitalization comes down, w hen the income tax profit is more than your profit as per the CER period. Again, we do not foresee that because once the capitalization picks up, again we will be going into the same MAT and then the profit as per IT will come down, and then again, we will be switching over to the MAT only. Understood, t hat' s helpful. Lastly, any progress on the Rajasthan JV or the transmission side? Can you repeat? Rajasthan JV [crosstalk]. Yeah. Rajasthan JV, Joint Venture Company, yes. Actually, their regulator has put some limit on the projects which are to be considered on nomination basis, beyond which they are considering under TBCB. They were trying to take some exemption, so that those projects can be executed by this JV company. So far, we have not got any communication from Rajasthan Government. As of now, there is no progress. Okay, t hat' s helpful. Lastly, your participation on the battery side, last time you said you would look at it as it progresses. Any further thoughts there? [crosstalk] Battery energy storage participation. Battery energy storage, we have participated in some tender, but we lost that. We are again participating in some other projects. We will continue participation, and hopefully, we will execute some projects in days to come. Understood, that' s very helpful. Thank you so much, and all the best. Thank you. Ladies and gentlemen, in order to ensure management is able to answer queries from all participants, kindly restrict your question to two at a time. You may join back the queue for follow-up questions. We'll take our next question from the line of Ketan Jain from Avendus. Please go ahead. Thank you. Good evening, sir. Thank you for your opportunity. My first question is on the other expenses. We've seen an increase of 77% of other O&M expenses. What is the primary reason for this, and is this passed on or how is it? The other expenses actually include the FERV, which is the pass-through. That is covered in the net moment of the regulatory deferral. You see, now we are in the business of the smart metering, where we are doing the accounting through the service concession agreement, where it is shown as the income side as well as the expenses side. E xpenses side, i n the console, around INR 450 crores is included in that. Corresponding to that, we have an income also. That is why it is appearing to be on the higher side, but not like that. Understood. Also, sir, I have a question. Do we have any O&M expense impact from the new CERC regulations which cap the O&M expenses, and we are actually incurring more expenses? Is there any impact from that? No. Last time, there was impact, that we got less O&M charges, O&M recovery, what we got from these various constituents as per the new regulation. This year, there is no change from last year. The impact was only last year. This year, it is only incremental change because of increased DA and n ormal expenditure will increase every year. It is only nominal expenses which have increased. Otherwise, there is no impact of CERC regulation. Understood. G oing forward, we will be recovering all the O&M expenses. There won't be any additional under-recoveries on that, a m I right, sir? Yeah. Understood. Sir, also, what is your guidance on capitalization for 2026? You told INR 20,000 crores. W hat would be that for 2027 and 2028, a ny guidance? Sir, 2027, l ike last year, we did a CapEx of about INR 26,000 crores. This year, we are expecting about INR 28,000 crores, and next year, it will be about INR 35,000 crores. From CapEx to capitalization, there will be a gap of about two years. This year, we will have, INR 20,000 crore projects are likely to be commissioned, capitalized. Next year, it will follow. It may be about INR 25,000-26,000, because last year, we got CapEx of INR 26,000. We expect that about INR 25,000 work projects will be capitalized next year. Similarly, in 2026-2027 also, 2027-2028 also, it will be around INR 28,000. It will be in that range. INR 25,000 crores next year, INR 28,000 crores next to next year. Understood. Just one last question, sir. Just one last question, ma'am. [crosstalk]. Ketan, I request you to join back the queue, please, as we have other participants waiting for their turn. Okay. Yeah. Thank you. We'll take our next question from the line of Dhruv Muchhal from HDFC AMC. Please go ahead. Yes, sir. Thank you so much. Sir, in the consolidated numbers, the other income say, last year was about INR 560 crores, and this year is about INR 190 crores, a sharp drop. Anything abnormal probably in this quarter or last year quarter? I could not get [crosstalk]. Dhruv, can you use your handset mode, please, and repeat the question? Yeah. Sir, in your consolidated numbers, the other income last year, same quarter was INR 560 crores, and this year quarter is about INR 190 crores. There is a sharp drop here. Anything abnormal probably in the last year quarter or this quarter? Normally, the other income includes some of the [interest] and differential tariffs on the CERC orders and all, which are all normally used to be one time. On a yearly basis, the difference of variations of around INR 100 crore-INR 200 crores is the normal one. Oka, s o nothing abnormal in the numbers, e ither last quarter or current quarter? Nothing. O kay, b ecause if I adjust for the other income, your consolidated part is showing a decline in YOY. If I adjust for the other income, the part is showing an increase. I'm just wondering, probably it's all because of the other income. Just trying to understand if there was something. No worries, sir. Sir, the other thing was the awarding. Seems to have slowed down a bit. Tendering has slowed down a bit. Any particular reason why this is happening, or probably just the tenders will happen and we will start seeing momentum pick up again? Yeah. TBCB tendering slowed down. TBCB, yeah. It is a cycle. Basically, sometimes it is very fast, sometimes it takes some time. It is likely to pick up. We have so many projects in pipeline, but b ecause of various approvals, and you understand that there will be a lot of approvals required for any bidding process, so there will be variations in the speed of this bidding process. It is likely to improve now, so t here is nothing to worry. Okay. S ir, last quick small question is, your CapEx for first half is about INR 15,000. Generally, I believe two H is much better than one H, given monsoons and everything. Is it possible that we will exceed our INR 28,000 crore CapEx number or INR 28,000 is safe to assume? It will be 28,000+. Also, that we can assure. It may go up. We are [crosstalk]. Okay. I was trying to understand the degree of plus here. How much higher than 28,000? It may be somewhere between 28,000-30,000. Okay, sir. Thank you so much. That is all, and a ll the best. Thank you. Next question is from the line of Atul Tiwari from JPMorgan. Please go ahead. Yeah, sir. Thanks a lot. Sir, you gave a guidance of about INR 25,000 crore-INR 26,000 crore capitalization in FY 2027 and INR 28,000 crore in FY 2028. I believe in some of the previous conference calls, you have guided to INR 35,000 crores-INR 40,000 crore of capitalization in those years. I s there some persistent slowdown in the pace of capitalization that the company is seeing because of this right of the issue, or is this issue limited to this year only? What we are seeing is that there is a time lag of about two years from CapEx to capitalization. That is only because there will be many challenges of ROW and other things will be there. Considering that, you can assume that there will be two years of lagging. Last year, it was INR 26,000 crores. Capitalization after two years will be about INR 25,000 crores-INR 26,000 crores. Since we are considering INR 28,000 crore CapEx, so I am saying that this will be 2027-2028, capitalization will be about INR 28,000 crores. Okay, sir. How much of transmission awarding is yet to be done as per NEP over next three years? The exact figure, I will check, but it is somewhere about INR 350 crores billion out of INR 915 billion tha t's still pending. T he exact figure, I can confirm. Yes, so INR 3.5 lakh crore and all belonging to ISPS? Atul, would you join back the queue, please? Yeah. I just have this one doubt on the answer. Thank you. 3.5 is the ISPS or it includes [crosstalk]? Only ISPS. ISPS, yeah. Only ISPS. Only ISPS. [Got it]. Thank you. Thank you. Next question is from the line of Sumit Kishore from Axis Capital. Please go ahead. Thanks for the opportunity. My first question is, in relation to, what is the big pipeline at the moment for the next second half of the fiscal? What is the status of the two HVDC projects which you had mentioned, and we expected to get awarded in this fiscal? Are they still on track, or are there delays in their tendering? That's my first question. Sumit, why is this not audible? Why is this not clear? Can you please? Sumit, please use your handset mode and repeat the question, please. Is this better? Yes. No. Yeah. M y question was in relation to the big pipeline for the balanced fiscal second half for the market for transmissions. The status of the two HVDC projects that were expected to be awarded this fiscal, is the tendering and award activity on track or is there a risk of spillover done exponentially? That's my first question. Yeah. [crosstalk] You are talking about this Khavda to Nag, this South Olpad is already finalized. This Barmett to South Kalam, it is likely to be completed in this financial year. We are expecting very soon that it is already approved in NCT, and it is likely to be finalized in this financial year itself. Other projects may take some time. Okay. What is the total big pipeline now for the balanced fiscal for transmission? Current year, [crosstalk]? Let me check the figure. We will come back. Around INR 45,000 crores. We will exactly tell, but it may be around INR 45,000 crores. It may be more. Actually, considering HVDC, it will be more. We will revert. We should not give wrong feedback. We will revert [crosstalk]. Okay. W hen you said that Khavda [crosstalk]. I request you to join back the queue please, as we have other participants waiting for their turn. Yeah. Thank you. Thank you. Next question is from the line of Nikhil Nigania from Bernstein. Please go ahead. Hi. Thank you for taking my question, sir. My first question is on the ROW point. The process you laid out on three different valuers assessing, it seems quite arduous. If you could tell us how much time is it adding to a project timeline [crosstalk] i n months or so? For this finalization of valuer and giving report by this valuer, will be somewhere about one month. That's it, okay. We are in the learning process, so it took more time in Delhi. The Government of India is in the process of issuing guidelines that within one month, t his should be finalized. Are other states also close to adopting this guideline, Rajasthan, Gujarat, etc.? Yes, we are following up with all the states, including Ministry of Power, who is also considering and talking with all the states to adopt similar guidelines. Nikhil, I request you to join back the queue, please. Okay. Thank you. Next question is from the line of Apurva Bhadr from IIFL Capital. Please go ahead. Hi, sir. Two questions. Firstly, on the equipment supply. You said it is improving, and we are ordering in advance. Any chances of Chinese imports again being allowed in, especially in certain categories? Secondly, sir, we have been one of the early movers in the data center business. Any update on that, now that we are finally seeing the traction over there, a ny plans? Yeah. The Chinese import, a s far as the present situation is there, we are not expecting it will continue, but we will have some progress. Like the Chinese companies which have set up their companies in India, s o there is some progress or there is some development in that area. We may have some approval for manufacturers, Chinese manufacturers who have developed factories in India. There may be some development in that area. Direct import from China, so far, we are not hearing anything. Okay, sir. O n the data center bit? Data center. For data center, actually it is a learning curve for us. There have been some issues being faced, and there are so many clarifications and it is delayed. Data center is delayed. Maybe by Q4 only, we should be able to commission this, not in Q3. What size is this? It is 1,400 racks or what? 1,000. 1,000 racks. Thank you. [crosstalk]. Thank you so much. We'll take a next question from the line of Bharani from Avendus. Please go ahead. Am I audible? Yes, you are. Please go ahead. Yeah. First question is a little bit conceptual. Though we had close to INR 9,000 crores of capitalization last year, the first half revenue, EBITDA, PAT is flat to down in a minor way. How should one understand it conceptually? A s a fixed cost plus ROE model, there should be growth. That is my first question. Actually, s o far, we have been executing projects under RTM. N ow we are executing projects under TBCB. There is a difference in financial modeling or revenue modeling of these two types of projects. In RTM, we used to get about 17% revenue on any project. Breakup was that we will get about 15.5% return on equity, which is about 30%. 15.5 into 30%, which will be about 4.65%. T here will be 70% loan, s o there will be about say, 7%, assuming 7% interest rate. A bout 4.9% will be interest on loan. D epreciation for initial 12 years will be 5.28%. T here will be O&M charges in the range of about 1.8%-2%, a nd then interest on working capital may be about 0.2%-0.3%. This makes about 17% or 17%+ of revenue against any projects. After 12 years, because we have projects which have been commissioned in 2010, 2011, 2012, 2013, in that range, which are getting completed 12 years of age, so a fter 12 years, 5.28% depreciation will reduce to about 1.2%-1.3%. B y 12 years, most of the depreciation has been recovered, s o only balance may be about 27%. 27% in 23 years, so making it about 1.1%-1.2% per year depreciation, as against 5.28% depreciation in initial 12 years. There will be net difference of about 4% revenue reduction, only because of this. Second point will be that interest on loan, because after 12 years, we will be paying most of the loan. I nterest on loan component will also become almost zero. This 4.9% plus 4%, so almost 9% reduction will be there in our revenue. Assuming that say, last 12 years back, we commissioned about say, INR 15,000 crore projects. INR 15,000 crore projects into 9%, it makes about INR 1,350 crore, revenue will reduce each year. F inancially, also our revenue has come down because of these two reasons, of depreciation and interest on loan. Whereas whatever projects we have commissioned, so normally, we will get projects because our tariff is fixed for 35 years. We get about 11%-12% of project cost as revenue. If we commissioned projects last year, about INR 9,500 crore worth projects, so maybe about INR 900 crore will be the increase in revenue because of these commissioned projects. Net difference will be, INR 400 crores-INR 500 crores difference will be there in revenue. That difference, you will see in our revenue also. These are the basic, you can say, the rough calculations. The details we can share with you. Yeah, I'd like to add to this. Actually, in the regulatory framework, EBITDA is not actually a right parameter to monitor, in the sense that when we commissioned a new project, as the chairman was explaining, the EBITDA used to be in the range of 89%. When you complete the life at the 35 years, the EBITDA will come down to 74%. Your profit will remain same, because I have a return on equity constant for the entire period. There is no worry that the profit is going to come down, t he EBITDA is not the right parameter to monitor. Another added to that, if you see the half year to half year when you are comparing, last half year actually, we have spent CSR of about INR 1 billion lesser than the current half year, which actually will get normalized over the full year. Last half year, we got an order of Power Grid that is Southern Interconnected System, where we appealed to the regulatory authorities for waiving of the penalties and where we got around INR 209 crores as a one-time order impact in the last half year. These things added to only, you are seeing a decline of around INR 300 crores. It is only because of this one-time impact. Otherwise, as such, there is no worry that the EBITDA is coming down or something. Added to that, you see going forward also, we have a smart metering business where the EBITDA is hardly 10%-15%. We are merging that in the console, so where the income and expenditure side was added. That is why you are seeing a lesser EBITDA of like 3%-4%, i t is declining. As such, there is no worry that the profits are taken away by any expenditure or something like that. Thank you. I request you to join back the queue please. Next question is from the line of Anuj Upadhyay from Invest ec. Please go ahead. Yeah, hi. Thanks for the opportunity, sir. Two questions. One is on a clarification. When you mentioned that the Leh-Ladakh project price has now been revised to INR 30,000 croreso is this INR 30,000 crore factored in our working hand of INR 153,000 crores or is it yet to be factored in? Secondly, any further comment on the Brahmaputra opportunity which you mentioned t hrows a robust opportunity? When can we expect the tendering to be out or it would be directly allotted to Power Grid or would it be on a TBCB basis? Yeah. As far as Leh-Ladakh, we are still maintaining INR 20,000 crores only, because we have not gotten this direction from the Government of India, about DC or AC. As we get this communication regarding the AC network, then we will accordingly revise this guideline also for our CapEx. As far as this Brahmaputra, it is still in the study stage and it is likely to take some time. Third point, what you mentioned, whether it will be nominated to Power Grid, it is unlikely because these are normal HVDC projects in plain area and it may be under TBCB. So far, we are not expecting that it will be based on nomination to Power Grid. Thank you, sir. That's quite helpful. Thank you. We'll take a next question from the line of Mahesh Patil from ICICI Securities. Please go ahead. Yeah. Sir, my first question is on the FY 2028 CapEx number. You have mentioned INR 35,000 crores for next year. Sir, what is the estimate for FY 2028? Estimated? [crosstalk] CapEx for FY 2028. [crosstalk]. Yeah. FY 2028? FY 2028, we said it is 45. 35. 45. 35 is FY 2027. 2027. FY 2028 is 45. Okay, sir. Thank you. Sir, lastly, on this Andaman [crosstalk] project, what is the status there? If you can share some info. Still, there are discussions and approvals being taken by Government of India, and there is no formal communication. You are talking about Andaman HVDC project under sea? Yes, sir. Yes, c orrect. Yeah. There is no clear approval or direction from Government of India so far. Thank you. [crosstalk]. Okay, [crosstalk]. Yeah. If I may say lastly, in terms of, s ir, EESL, if you can share some update, what were the losses in this quarter and what are our plans regarding EESL, Energy Services? Yeah. I request Director of Finance to respond. Yeah, [crosstalk]. Current half year, a round INR 126 crores in the half year has been included as the last from EESL compared to INR 92 crores in the last half year. There is an additional INR 29 crores. against the last quarter of around INR 58 crores, which is again on the adjustment of the final accounts. You can say that around INR 30 crores has been added last, on account of EESL in our console. Okay, sir. Thank you. Thank you. Ladies and gentlemen, due to time constraints, we'll take that as the last question for today. I now hand over the call to management for closing comments. Over to you, sir. Yes. Thank you very much, all investors for participation, for your valuable time. Power Grid is committed to take care of your interest, and we thank your support and your support in promoting Power Grid in India. Whatever challenges we are having today, because in power sector, especially in transmission business, when we go for erecting any tower in land of any landowner, there will be obvious resistance by landowner. We are facing, on daily basis, problems everywhere, wherever we are working. We have a very dedicated team of our engineers and Power Grid officials to take care, and to improve efficiency of our execution. As far as challenges of the supply of various equipment because of a lot of demands in power sector, in ISPS, interstate, then RE generation, and now we will be having more demand because of green hydrogen transmission network, data center transmission network, these challenges are going to increase in days to come. Rest assured that we are very competent. We have a very competent team to take these challenges, and work for the interest of our shareholders. Thank you very much. Thank you, members of the management team. On behalf of ICICI Securities, that concludes this conference. Thank you for joining us. You may now disconnect your lines.