On the 100% equipment ordered for the upcoming 23.7 GW capacities - how much has gone to BHEL versus L&T?
We have given 8 machines of 800 MW to L&T and the balance to BHEL. Can give the broader number, not exactly.
On bids - timelines for Rajasthan and Uttarakhand bids that were in advanced stages?
Cannot estimate on behalf of states. For Rajasthan, the bid submission date is in the next month. In case of Uttarakhand, the documents are under approval of the regulator. That is the present status.
On pre-ordered equipment pricing vis-a-vis what you have paid before - does it change return dynamics due to inflationary equipment costs?
It would not be appropriate to discuss the pricing of the equipment on a public platform. This is confidential information and in the competitive market, it is not appropriate to disclose these numbers.
Expectations on merchant and PPA tariff realizations in the second half given softness in merchant pricing seen so far? Big picture H2 vs H1?
PPA rates will not change as they are long-term rates - lower demand only impacts off-take, not rates. Achieved Rs. 5.70 per unit average realization this quarter and expect the same to continue. Merchant realization was Rs. 5.37 per unit in Q2 FY26; for the balance period, expect average realization of around Rs. 6, which used to be the rate over the last few years.
On PPAs portion (currently at 88%), are there plans to increase it to avoid pricing volatility?
Recently signed a medium term PPA with Maharashtra DISCOM for 5 years at Rs. 5.55 per unit, and received an LOI from Karnataka at Rs. 5.78 per unit. Already tied up around 1,100 MW. Considering the overall portfolio, it is now around 91%. Taking steps to tie up more capacity under long term or medium term PPAs to reduce volatility impact.
On CAPEX - how should we think about CAPEX in 26 and beyond, and the funding mix between internal and external?
Generating significant cash flow from operating assets - will fund a significant portion from internal accruals. Over the next 2-3 years, there will be an interim bridge requirement which will be taken from a mix of short term and long term financing from the domestic capital market or domestic banks.
On the Assam bid - has the bid for 3.2 GW been floated, what is the status?
The bids have been concluded and we are the L1 party there. The approval of the commission has also been received. We hope to get a positive communication shortly. Whatever is in the public domain is that the commission has passed the order.
Can you share revenue, EBITDA, PAT numbers for the two acquired plants, Coastal and Amarkantak in H1?
For Mahan, Q2 revenue was Rs. 1,049 crores and EBITDA Rs. 521 crores. For Tuticorin, revenue Rs. 677 crores and EBITDA Rs. 54 crores. For Korba, revenue Rs. 339 crores and EBITDA Rs. 84 crores. These are operating revenues from the plants.
Could you break up the 17 GW of bids at various stages by states?
Rajasthan 3,200 MW, Uttarakhand 1,320 MW, Maharashtra 1,600 MW, Uttar Pradesh 4,000 MW and West Bengal 2,260 MW totaling 12,000 MW. Apart from that, Karnataka 1,600 MW, Gujarat 4,000 MW and Assam 3,200 MW are at advanced stages. Including the recently floated Gujarat bid of 4,000 MW, the total works out to around 22,000 MW rather than 17,000 MW.
Out of the 42 GW target, about 25 GW is tied up under PPAs currently? Just want to clarify.
The new capacity planned is 23.72 GW, out of which 8.52 GW is already tied up under PPAs. Over and above this, 3.2 GW Assam bid where we are L1 bidder, plus around 1,100 MW recently tied up from existing capacities (500 MW Maharashtra and 570 MW Karnataka).
From the operating capacity of 18.15 GW, how much is currently tied up under PPA, including the 1.1 GW recently signed? Want a GW number for clarity between 91% and 88%.
Broadly the figure is around 16,300 MW. Sometimes the agreement is at the busbar, sometimes at the state periphery, so there are minor changes here and there. But broadly it is 16,300 MW out of 18,150 MW.
Are we on track for 30 GW by FY30 ramping to 42 GW by FY32? How much of the 30 GW plan is PPA tied up?
30 GW means an addition of 12 GW. First 12 GW is on track - planning to commission around 3 GW next year, then 2.4 GW, then 3.2 GW, and 7.2 GW in FY29-30, totaling more than 12 GW. Some capacity from the second 12 GW stage will also be commissioned before FY 29-30. PPAs already signed are part of this up to FY29-30.
On Godda - when will the Godda Power Plant be connected to the Indian grid? Can we sell power from Godda to the Indian market despite the Bangladesh PPA?
Expected to get connected by December 2025. Selling in the Indian grid is allowed under two specific conditions per regulations - either persistent no scheduling from Bangladesh due to no demand, or payment default under the PPA. Otherwise, there would be no reason to sell in the Indian grid.
On Godda - what was the PLF for Q2 and what are the total receivables now for Godda?
PLF was 72% at end of Q2, vs 73% last year, more or less the same. PLF of Godda is much better than Indian grid where most thermal projects are 60-65%. As regards outstanding payment, it is around 1-1/2 months outstanding; one month is not due, so only half month is overdue.
Merchant tariff this quarter was about 5.37 - what was it for the same quarter last year?
Last year average realization for the same quarter was Rs. 5.88 and this year it was Rs. 5.37. Realization has been roughly 50 paisa lower in this quarter, approximately 10% of the tariff.
What is the total estimated CAPEX for the 23 GW expansion that we are planning?
It is approximately Rs. 2 lakhs crore.
Out of the additional 23 GW capacity, regarding fuel linkages - are we providing fuel linkages along with the PPA or applying for them?
Will be tying up capacities through the PPAs. Each bid nowadays comes with attached fuel linkage given to the state utilities. So for all this capacity, fuel linkage availability will be provided by the utility under the bid.
On new PPAs - will capacity charge and fuel charge be passed through, not a single levelized tariff like Mundra issues earlier?
Under the new standard bidding documents, we only quote tariffs for the first year - cannot quote any fixed number for 25 years. Fuel is completely passed through based on a formula including station heat rate. Capacity charge has slight variations - in some states it goes up by 30% of WPI with 2% reduction every year, and in others 30% WPI with 1% reduction. So capacity charge will remain more or less flat and fuel charge is passed through.
There was a news report dated 11th September where management gave guidance of reaching Rs. 70,000 crores EBITDA in 6 years. Is this for the entire 42 GW capacity or just 30 GW?
This was a media report. The management has not given any such guidance. It was the media's own analysis. We hope to actually achieve a better EBITDA than what they had projected.
On equipment delivery timelines - will they meet your timelines based on conversations with partners?
Deliveries agreed are ranging from 38 months to 75 months in total - staggered deliveries. Confident of getting deliveries as per schedule because four projects under construction are ahead of time in delivery and execution. There is no likelihood of any cost overrun.
On Dhirauli mine - the cess was already completely waived; in what form will we be incentivized on the mining now?
Dhirauli mine is very close to the plant at Mahan where we already have one operating unit and two more phases coming. Apart from compensation cess, there will be huge logistics advantages from Dhirauli mine. By end of this year, box cutting will be done, and from next year coal production will start from the mine.
So the Rs. 400 incentive for consuming coal within the state will no longer be there - is that fair to say?
It was a comparative incentive, not in real terms an incentive, and as per the new structure there is no negative impact. In most domestic markets, the impact is positive, but since positive or negative changes in law are passed on to the customer as change in law, to the company it is hardly anything.
Why are renewable rich states like Gujarat also coming for thermal PPAs given how cheap batteries have become?
It is for baseload. Tenders for battery backup so far are for token quantum and won't meet baseload requirement. Even the Government of India's projection of installing batteries up to 2030 is a fraction of total demand. Thermal power will only be supplying baseload power. The state tenders have already considered the battery installation possibility per resource adequacy reports.
On these tenders, is there a need to set up the thermal plant within the state or are they fine with it elsewhere with coal allocated?
Every state is taking its own call as there are positives and negatives. Pithead saves transportation but pays transmission charges and losses. In-state plant brings GST revenue on CAPEX and OPEX, employment generation, ancillary industries. Negative side: coal-bearing states ask for variable cost power - 5% in Chhattisgarh, 12% in Odisha - which loads capacity charge on the rest. Each state takes its own calculated decision.
Has the discussion started from states to reflect GST/cess change in fuel cost as change in law in tariffs?
It is different state to state. Some states have issued change in law notices, some may issue in due course since it happened just last month. In any case, since it is from date of notification, it has to be passed on - it is only a process matter requiring notice and petition before regulatory commissions. CERC has already initiated a suo motu petition to pass an order in this regard.