Yeah. Hi, sir! I just want to check, you know, on slide 28, you gave some of those competitive bid projects. Now, when I look at the tariff and the NCT costs, it doesn't look as exciting. But I'm guessing, there's a lot of savings versus the NCT estimates. Could you give us a ballpark in terms of, what is the average cost saving versus what NCT believes the estimates ver sus what POWERGRID is able to do those projects at? This is on the competitively bid projects. You gave the estimated cost as per NCT.
No. Whatever.... This, because this is NCT cost. But the cost conside red by POWERGRID will be different from this cost and based on that cost only, w e have bid out this project and we have won. And we will ensure that this project is executed within that limit. Sometimes it is within that, sometimes it exceeds also. Our cost estimate will be closer to that but sometimes it is higher than that cost.
Sir, how large could that quantum be?
Exactly, I cannot tell. But it will be normally, it will be 10% of the total requirement. Suppose we have 50,000 MW. So, normally it is 10 to 15% of the total generation capacity.
Hi, sir. This is Girish from Morgan Stanley. Thanks for the detailed presentation . O n the construction pipeline, that you have right now, I think it's about ₹1,43,000 crore for transmission. If you can just break up the 3-4 year, 5 year plan because you've given capitalization for two years. If you can just help us with, within regulated and for non -regulated and within non -regulated HVDC commissioning like next 4 or 5 years, if you can just spell out the numbers. And the second one was the market share question. In nine months, how much bidding has completely happened thus far, and what's your order market share for this year?
On the HVDC front, as we have one project which is going on, on the TBCB, it will be for the next three years, 2 to 3 years that will be spread across the entire CapEx. And we have one RTM project also under HVDC, which was given to us by the regulator. So that will be taking about another 3 years. So, Bhadravati also is there. Those are the two projects over there which will be there in the next three years - the HVDC part and most of the TBCB projects, the general TBCB projects have a range of about 2 to 3 years of CapEx. So , whatever is there in the TBCB, what has been shown out there, that will be spread across 2 to 3 years. The remaining RTM projects are also on shorter duration. They will also be overlapping in a similar period, about 18 months to 24 months, most of the projects.
How much is intrastate right now?
Intrastate has a smaller share. Intrastate is just opening with states like Maharashtra and Karnataka opening up. We, because these intrastate are projects by and large depends upon the states, how they are keen in trying to move ahead in these projects. So, we see that intrastate will be gaining traction. And since there is significant amount of projects already under the intrastate front, we are also evaluating the, the, the risks, which are associated with intrastate projects and basis that we are going ahead with it. We have, as already as our C hairman has placed it, one of the largest intra state project in the state of Maharashtra , is what we have recently been successful in it. We are awaiting the LoI for it.
Yes, sir. This is Prateek from ICICI Prudential. So just a couple of questions. So in Q3, we saw a big jump in capitalization. So just a clarification on that. So, is this more of a one off thing in terms of quarterly run rate or can we expect that in Q4 and going forward in H1 next year? So how do we think about it? Should we look at it on a quarterly basis? This figure will continue or will it be more of an annual completion target?
Like, the capitalization depend on, the project being commissioned, it depends on the size of that particular project. If it comes in, say, Q4 or Q1 or Q2. So , definitely the percentage of that particular quarter will increase. Otherwise, we will be continuously commissioning the projects. I can tell you the projects like we have Bhadla III to Sikar II, Bhadla III to Ramgarh, we have Navsari to Padghe, we have Kurnool III to Maheshwaram, we have Ananthapuram to Kadappa, we have Navsari to Kala, which are likely to be commissioned, completed in Q4. Then, if we talk of Q1, we will have projects like Koppal Gadag, we will have Koppal to Raichur, we will have Koppal to Narendra, we will have Beawar Dausa . So, these projects will continue, which will be commissioned in phased manner. And percentage of each quarter will be very difficult to tell because it depends on size of the projects which will be commissioned in a particular quarter.
Good afternoon. Hi, this is Shubhdeep from Nuvama. Firstly, congratulations on a great set of numbers and execution for third quarter. So, as you've already charted out the guidance for CapEx and Capitalisations for 26, for FY27 and FY28, can you give us your revised numbers for Capex and capitalization?
Last year, sorry, last meet, we have given ₹28,000 crores for FY26. We are increasing it to ₹32,000 crores as I told and for FY27, CapEx will be ₹37,000 crores. In FY28, it will be ₹45,000 crores. Capitalization, FY27, will be ₹30,000 crores and FY28, it will be ₹35,000 crores.
Sorry, I'll just take the last one. Also, in terms of the pipeline of TBCB projects that you're seeing in terms of fresh tenders, any ballpark number as to how large that number is on an annual basis?
Yeah. There are about, projects worth ₹55,000 crore. Projects are already under bidding, and there are about ₹15,000 crore projects which are approved but yet to be , up for bidding. So , it becomes almost ₹70,000 crores and we, out of six lakh sixty thousand c rore, the pipeline of projects up to 2032. So, we have already considering this, we have the three lakh crore projects will be already available for bidding and balance three lakh sixty thousand crore will be available for bidding, which are yet to be approved by NCT and Government of Ind ia, and which are likely to be bid out in next four years. So , there will be almost , on an average ₹90,000 crore projects each year will be bid out. ₹2,30,000 crores is already under execution or commissioned, ₹55,000 crores up for bidding. They are available for bidding. ₹15,000 crore yet to be available for bidding and balance will be approved and subsequently available for bidding. So those will be ₹3,60,000 crores in 4 years. Next four years, so that they are completed before 2032.
Hi, sir. This is Apurva from IIFL. In your comments, you mentioned about company sort of getting aggressive on the battery storage. T here was also a recent C ERC draft proposing inclusion of storage in cost plus model. Any thoughts over there, sir or if you can share some plans?
Yeah. There is only draft paper on this and actually for grid reliability. Now, we have almost 50,000 MW RE power in grid. So, which is being generated and because, this variability and intermittency of renewable energy, there will be some grid stability storage required also. So, we are considering that, this is the idea behind grid stability that as a transmission element, the battery energy storage will also be a part of the transmission. And if once this, CERC draft document is approved or it is ava ilable, then there will be p rojects for battery energy storage in RTM also. So that is under discussion.
Understood. So another question on the budget yesterday. There was a change in regime for MAT. Does it have any impact on the tax liability or treatment of tax for our SPVs? The TBCB one specifically?
Actually, all the TBCBs already are under the new tax regime only. So, there is no, already all the TBCBs are not paying MAT, if there is no profit on the income tax rule, and we are following only the old tax regime for POWERGRID because we have 80(IA) benefits. So, we will have to evaluate that, how long it will be beneficial to switch over from old ta x regime to new tax regime for POWERGRID. Otherwise, all other SPVs are already under th e new tax regime only. And for POWERGRID, anyhow, whatever you pay the taxes, it is pass through only.
Government of India is working on some Chinese relaxation. Can you just help us with the kind of supply chain relaxation from the government? And we expect and can we just also highlight the challenges which are happening, which are happening in component wise?
Especially for transformers and reactors, as a component level, a s of now, there is no challenge . Only for manufacturing and assembly of transformer compone nts like core , winding, bushing, there is a challenge . As per the present capacity of our transformer manufacturers, OEMs like T&R, Hitachi, Toshiba, CG and other manufacturers, t oday we have capacity of 2,28,000 MVA capacity. And even if we consider their augmentation in next 2 to 3 years, the capacity become 3,98,000 MVA, whereas demand in 26 -27 itself, it is 4,21,000 MVA. So, unless until the Chinese companies available in India, if relaxation by Government of India is given, then it is going to boost the transmission sector. So, it should be a good move for everybody.
Sir, one clarification. I was looking also for import, no, right? Import of....?
Like, already whatever components like copper , then paper, these components will be or core. These will be coming from outside only. Today also, they are coming from outside. Tomorrow also they are coming because all the manufacturers, they are importing these components and assembling in India. So, they will continue to be important.
Yeah. Hi, sir. Hi! I am Nikhil from Bernstein. The first question is right of way, had been a consistent challenge for us over the last one year or so and you highlighted it still being a challenge. But was there a change this quarter and in January , that we could see such big and impr ovement in capitalization.
Yes. There was, like, when we talk of this change or modific ation in guideline in March 25 . So, these guidelines were issued by Government of India. Then subsequently, they were adopted by Government of Delhi, Government of Haryana, Government of Rajasthan, Government of Gujarat. And that time took almost, some state s adopted in July, some state s adopted in August. And finally, the orders for this MRC rate or land rate were issued by respective District Collector or District Magistrate in September and October. So after that only, work started happening. So that is why progress now, it is increasing. So now in Q3, Q4 progress will be better.
So would you say it's not a temporary change we have seen? It's a structural shift we are seeing in ROW getting much better than the last couple of years?
Yes, yes, because earlier days, there was only, RoW area was considered 30% and now it is not only 30% in rural area, in semi urban it is 45%. And this urban area like Delhi or cities, it is 60% of RoW area. We have to compensate for land value. And earlier it was the circle rate to be paid multiplied by area. Now it is market rate. And methodology also has been issued by Government of India which says that there will be three valuer, one will be by the farmer, one will be by POWERGRID. And these t wo valuers will give the rate, m arket rate and average of this will be taken as market rate. If the farmers are not agreeing to this rate, because there can be difference between farmer and POWERGRID valuer rate. Then there will be third valuer nominated by DM, then rate of that will be considered for coming out with the market rate , so that procedure has been now streamlined.
Sir, Sumeet Kishore from Axis Capital. So, my first question is, a follow up on what you explained to Mohit. So, the whole transformer in no situation will get imported. They will have to be localization of manufacturing and then components will get imported. Is that the right understanding?
Yeah. So, Government of India is not considering importing transformer as a total item. It is only assemblies. The way it is happening now, it will continue to be like that.
Okay. Okay. Sir, my two questions. First one is, you know, when we look at the CEA website data on physical progress of projects. So up to December , when I saw the data for progress o n transmission lines for POWERGRID was 33% of the full year target, and we saw across the categories. Similarly, for substations, it was some 56% of target. So, I thought that maybe, you know, the capitalization will also be weak. But how is, how does that work? How do we track that using the physical data on progress on the CEA website? And the second question is on HVDC. So, we've seen that the number two player now is, almost half the works in hand of POWERGRID. At least they claim to be Rs.750 billion. They've taken two HVDC projects. So, what are the next 2 or 3 HVDC projects that are going to be awarded in the country? What is their size and timeline? If you can please cover that and your strategy going forward. Thank you.
Okay. The CEA website, yes, there were issues earlier as I told that by Q2 FY26 our, the results were not good. In Q3FY26 also, you can see that it was only 12,000 crores capitalization. So, as of today, we have 3300 ckm, we have already achieved. Our target, annual target is 5500 ckm, circuit kilometer, out of which we have achieved, already achieved 3300 ckm. In transformers, our target as given to CE A or Government of India, i t is 60,000 MVA capacity. We have already achieved 42,000 MVA and we are sure that we will be achieving almost 1500 to 2000 ckm by end of this financial year. So, we will be very close to the target which has been given by CEA or Government of India and similarly, in transformation also, we will have almost 18,000 to 20,000 MVA capacity will be added in next two months, so we will be very close to 60,000 MVA capacity. In case of HVDC, there are only th ree manufacturers. Hitachi, GE and Siemens are there. So we have already given a project of this Khavda Nagpur and they are all also executing this Fatehpur to Bhadla project and then Khavda to the South Olpad, all part of Adani. Although it is a different TSP, it is again .... it is by another GIS, sorry HVDC supplier. So, we have projects like Bika ner, Barmer to South Kala Amb, which will cost almost ₹35,000 worth crore project, which is already up for bidding and OBD will be done on 1st April 2026. There are number of more projects like Bikaner V to Begunia, this should be shortly approved. Then there is a discussion about 320 kV, 500 MW Paradeep to Andaman. This is likely to be commissioned by 2031 to 2032. Again, it is almost ₹ 31,000 crores. Then there are some projects in Brahmaputra basin. It is in Niglok in Arunachal Pradesh , then Namsai , Roing, Silapathar, Gogamukh, Rauta. So , these are some projects which are likely to be , in any are depending on the hydropower generation in Northeastern region, that the timeline will vary depending on the progress of hydro project, because hydro project time is almost, say, 8 to 10 years and HVDC project is almost four years. So, depending on the progress, these projects will be available for bidding. There is one more project which is already discussed in NCT. It is Kurnool to Vishakhapatnam.
Can two LCCs get awarded this year? The two projects that you said first, one and two. Can they get awarded this year? They are both LCC, right?
Hopefully, Barmer II to South Kala Amb, it is sure and there should be, I think Bikaner V to Begunia. Also, it should be possible to be awarded this financial, next financial year.
And Bikaner V to Begunia is ₹300 billion or smaller?
It is 6000 MW. Almost, it will be again ₹35,000 crores.
Thank you so much. Puneet from HSBC. My first question is , with respect to the increase in commodity prices, how is that impacting your projects?
Yeah. As you know, there are about the transmission lines and substations, whatever the transmission contracts we are awarding on a firm price only. So, the metal prices are not going to impact our returns in respect to the transmission line contracts. And for substations, we have a certain PV clause in the contracts which we actually consider during our bidding. So, I don't think we are going to be impacted much on the commodity prices variation.
Understood. Secondly, and do you also see increase in repair and maintenance contracts on your regulated business increasing in near future, or do you think that's still a few years away?
Next to five years, i t's already fixed. It's , they have already given the O&M charges for the next five years. So next revision will be after 2029.
Sir, I meant capacity augmentation for your existing RTM projects. Is there a room for those projects to come in at a higher price?
The capacity, at whatever we are increasing at all there, we are doing it in ad cap which is, suppose the life is over, that we are already, we are putting in the regulator CERC and we will get the tariff on that.
And any comment on the market share for the new projects one in this fiscal year?
Yeah, we are having that guidance. We are about 50 to 60%. It is there. We are getting a lot of intra-state projects also. So, but then, if you look into the interstate projects, we are maintaining our market share.
Right Sir. And the second question, so there appears to be some policy hesitation regarding HVDC projects because they are quite costly. So how do we look at this? So , will it impact the CapEx? Can it impact the Cap Ex guidance, let's say, from FY 28 to 30, and can the overall transmission CapEx outlook be impacted because of this?
Like I told that, we have now ₹32,000 crores for FY26. We have already committed to Government of India for next financial year, FY27, ₹37000 crores and FY28, ₹45000 crores. So when I'm talking about ₹37,000 crores and ₹45,000 crores. So definitely our HVDC projects, major expenditure will be during that period. So, once it is commissioned, because this project already , it has already completed one year. So , the timeline is about four years. So , after three years , it will be commissioned. So, in after two years, the major expenditure will happen because all equipment will start coming to India and they will be supplied. And finally, it will be commissioned after say, three years from now. So, it will vary depending on the supply and expenditure.
Thank you. Good afternoon, Dr. Tyagi. Firstly, since it may be our last opportunity to interact with you in such a forum. Many congratulations on a very illustrious career and all the contributions to the nation. Sir, my question, I'm Namit Arora from InGrowth Capital. Sir, my question was, in the last 3.5-4 years, there may be a lot of initiatives that you would have taken to build on the foundation, which may not have fully borne fruit so far, but will obviously benefit the organization over the next 5 to 10 years. If you could give us some color on that? Thank you.
Thank you. Thank you very much. So, like, POWERGRID is a company which was born in 1989 and we have started operations in 1991-92. So we have been taking initiatives all these years. So, there is no last three years or four years , we have been taking initiatives and it is keeping on adding value to POWERGRID. So, similarly, in last three years or yo u talk of any thre e years. So , there have been additions of new initiatives and we shall help POWERGRID in achieving our CapEx and capitalization and growth of POWERGRID like we had in FY24, we had this CapEx of about ₹12,500 crores. Last year, we had ₹26,000 crores. This year we are going to have ₹32,000 crores. Similarly, we will have capitalization a lso, like last year, it was not much, but this year it will be ₹22,000 crores. Next year, again it will increase. So, the initiatives which we have taken in recent past, we have made dedicated RoW cell. So, the ROW cell, it is being handled from corporate office, where it is being monitored on day-to-day basis from corporate office. So, and in each region, there will be RoW c ell. So , they are discussing RoW issues of each and every tower, each and every transmission line. So, that is helping us in a big way to take care that management is aware that what is happening in this particular line and immediately action is taken. Second is, like transformers and reactors, we are taking in advance. Like suppose, I know that so many projects are coming for bidding and after two years or three years, so many transformers will be required for commissioning, so I should have those transformers in hand. So, there should not be uncertainty. That project is won, but transformer is not there. So , we are procuring as a bulk transformer and each package we are having 30 transformers, one package we are procuring which will be require ment for maybe 2 or 3 , substations requirement will be taken in advance only in one package and such package, we are maybe 10 to 12 package. Each year, we are coming out with these packages. Then we also have a land acquisition cell or land acquisitio n department. Whenever any project is coming for bidding. So, immediately our land acquisition cell becomes active and they are going to ground and they are talking to various for each projects, we are four options will be there.... 3 to 4 option so that in case we win the project immediately, the land should be available.
Hi sir! Thank you. Shirom Kapoor from Jefferies. So just want to understand the numbers that you shared on the capitalization guidance now and going forward, it has been raised. So , could you maybe help us understand what has driven this acceler ation in the capitalization and maybe quantify between RTM and TBCB, what will be the rough split in the capitalization for 26, 27, and 28? And other than that, what has driven the increase in guidance? Is it, you know, are you expecting some projects which are sched uled to commission later coming forward, or is it just your overall works in hand expanded? If you could help with that, sir?
Yeah. If you see from the data that it is ₹1,45,000 crores, if we remove ₹2000 crores worth projects for data center and other areas, it becomes ₹1,43,000 crores. So, most of the projects are under TBCB only, and the ongoing RTM is hardly ₹9000 crores, ₹10,000 crores. And one RTM project, which we are talking is the Leh Pang, which is yet to be launched basically. So, in next 2 to 3 years, we will have mainly TBC B projects. So, I can say that 80 to 90% will be TBC B, 10 to 20% will be RTM. And you are saying , like what trigger or why suddenly there is a n increase in this? Because RE projects are very critical projects which are commissioned and we don't want that any power RE power, Green power, which is almost free given by nature. So, it should not be curtailed at any cost. So, we want to focus on these projects so that no power is curtailed in India.