Mundra SPPA signed with Gujarat (4 states in 4-6 weeks).

What is the IPP RE capacity that you expect to add in FY '27? What will be the phasing of that capacity? And would it be right to expect that for the solar component the module and cell would be supplied from Tata Power's own manufacturing unit?

The second question is very clear forward. That's the whole purpose why we have put up the cell and module manufacturing. And I think that we are kind of quite integrated that we are able to kind of have the entire line-up of cells modules locked in on all the pipelines. And as you can see, we have about 5 gigawatts of pipeline as we speak. And a lot of things will start materializing this time around from quarter 1 onwards. So from a capex phasing point of view, I think you will see in the current year, a lot of consistency coming in. Praveer Sinha added: Also, Sumit, last year, we did a huge amount of third-party projects. This year, we don't have third party. So everything that we will do will be in-house. And last year, we did about 2,500 megawatt of total project implementation. So you can imagine that 2,500 will be virtually internal that we will carry out and maybe a little more. On commissioning: solar and wind combined would be about 2 gigawatts, with solar at about 1.5 to 1.8.

On Odisha, where you've been giving phenomenal performance year-after-year. Do you still see room for more efficiencies, or should we sort of pencil in future growth more from regulated equity growth only?

We get to see much better than this in the next financial year. And I think next financial year possibly will be the best year for Odisha DISCOMS because many of the initiatives that we had taken in the last few years have started showing results. Some of the initiatives were taken last year. And the impact of it, you will see in this year. I think Odisha performance next year should possibly peak in terms of the type of results you would see.

Can you comment on the regulatory asset wind down in Delhi DISCOM. Supreme Court had indicated an intention to wind this down. Any progress there?

Yes. So both the Supreme Court and APTEL are monitoring that. And the regulatory commission has promised that this will be amortized over 6 years up to 2032. And we are closely monitoring that. They have already given an affidavit under which they will amortize it. And we expect that it will get implemented as per the affidavit that they have provided.

For next year, FY '27, the target we have for adding solar capacity, do we have permanent GNA for all those substations or some of it is still on temporary GNA?

So now we are being extra careful, and that is why some of our capex, which we had planned last year got deferred because we do not want to set up the plant and be on temporary GNA. So we have been very cautious now, and we are only commissioning or completing the project if we have certainty on the transmission line and the permanent GNA happening. So that action has been taken now.

On Indonesian coal prices, especially after the West Asian war, the index is backward looking. So what's your take over there? How the prices should move this year as well as there was some news flow around potential tax imposition by the Indonesian government on coal mining. So if we can have some view on that as well?

So one is on the coal prices, there has not been too much of movement. And we expect that prices will be within plus/minus 5% in that range. We're not expecting lot of deviation. The second is that we are hearing that there will be some more taxes that will be imposed on export of coal. But this has been under discussion for the last many months. So, let's see what eventually gets decided. Sanjeev Churiwala added: We have shared some details on the thermal coal prices, also including Indonesian coal prices in Slide 24, the analyst presentation, which is uploaded. Praveer Sinha: It will be virtually flat for Indonesian coal.

In your cash flow statement, there's an item of movement in balance related to service concession agreement. So, what is this regarding because we see it has been a drag on cash flow for this year?

Capex related to HBA, TBCB project. It is related to capex spend on the service concession arrangement. It's onetime of capex only, which is shown in the capex in the presentation of investor presentation.

On the Mundra plant - is the entire plant operating under the supplementary PPA terms? Or is it only the Gujarat part? Is the rest under operating on the section level?

The full plant is operating all the 5 units. The Section 11 is to facilitate the operation of the plant and give time to the procurers to get the necessary approval. The billing that is being done is being done as per the SPPA, as per the overall understanding that has been reached with them as well as with Ministry of Power.

On the RE captive use of modules and cell - as per the order, any new tender after 1st September, the developers have to use domestic cell but there is no mandate before that. So given the tariffs that you bid for don't reflect the domestic cell requirement, why would you look to use domestic cell in your FY '27 commissioning? And on solar rooftop, you executed 1.7 gigawatts (almost 40% market share). Is that something you are looking at in terms of FY '27 also? What is the opportunity and market share you're targeting?

So we are definitely looking to enhance our market share. And our target is that in next 3 years, we will do 20%. And having said that, we expand our rooftop business. So, you have seen last year, it has grown by 100%. And I definitely expect in this year also, it will grow substantially more than what is expected from the market at this time. So, I do expect that in FY '27, the rooftop market, the rooftop business will grow, if not by 100%, at least by 50%, 60%. So, you will see exceedingly good performance from rooftop business going forward. I also expect that most of our rooftop and you know that for rooftop, if you have to get the government subsidy, then it has to use Indian-made cell and module. That will be catered from our existing manufacturing plant. Also going forward, effective 1st June 2026, you have to use only Indian-made cell. And many of the projects are not grandfathered. So, some of the projects, which will get implemented in FY '27 will require Indian-made cells and modules. So, I think our manufacturing plant is very well positioned to cater to large utility scale as well as to rooftop solar.

I missed the FY '27 capex guidance. Could you please repeat it?

It's about INR25,000 crores. That is what we are expecting. As I mentioned to you, those projects, which we missed out last year, we'll ensure that those get completed in this financial year. And these are a range of projects. These are not just large utility scale, but it is also including the distribution projects and the transmission projects and the hydro projects where work is going.

My first question on the Note number 5 of the consolidated P&L. There is an amount mentioned of INR250 crores deferred tax assets. Can you clarify whether we need to adjust or increase the taxes by INR250 crores to arrive at the profit for the quarter?

So, as you are aware, this is a deferred tax noncash. So basically, given our future profitability projections, so I think that will give you some genesis as to where it is coming from. We have, of course, carry forward losses. And of course, when you look at the stand-alone book, everything has to be adjusted against the stand-alone to fully recognize this. We have better visibility of profits in the subsequent years now. And we feel that some of the carry forward losses can now be utilized within the time frame. And as such, from a statutory purpose, we have to recognize the deferred tax in the books, which we have done in quarter 4 now. This has impacted our consol profit positively as well.

Tata Projects has been making losses for - prior to FY '24. '24 was the first year, I think, where we have started making profit. FY '26 again, I think there's a loss. FY '25, they lost. FY '26 again, they lost. What is your outlook on the same for as we enter FY '27, '28? Do you think the losses will get restricted now?

What has happened in Tata Projects is they had legacy projects such as the dedicated freight corridor project from the refining project in Barmer and some other projects which are there. Fortunately, all those projects have now been completed and very little of it is left. And we expect that those legacy projects impact will be very minimal going forward. The subsequent projects that Tata Projects have got have good margins. And I do expect that in FY '27, it will be back, and it will start making profit from FY '27.

We haven't seen accretion to the under-development RE portfolio for a long time. How are you thinking about bidding for new assets for renewables given the structural headwinds right now? Do you still want to remain on the pause? Or do you think we can start adding to the portfolio from FY '27 onwards?

Yes. So, as we mentioned to you that many of the places, there were 2 challenges. One was the transmission lines have got delayed and there is no point in taking a project and not able to implement it because the transmission system or the power evacuation system is not ready. Secondly, we have now come up with a unique solution where we can offer renewable projects along with the storage projects, the pumped hydro project. And going forward, we are looking for that sort of arrangement. These types of arrangements are not only with utilities but also with large C&I customers, steel companies. We are in discussions with Tata Steel and some of the other large data centres, which are coming up. And we do expect that going forward, we will not do pure solar or pure wind, but it will be hybrid with storage. And those will be much attractive in terms of the returns compared to the type of projects, which have been bid out in the last 2 years.

In terms of commissioning, you mentioned we'll be adding 2.5 gigawatts this year and 2.5 similar number next year and further like 1.5 to 1.7 gigawatt is solar. But if I look at the pipeline, then solar number is pretty small, like 600-odd megawatts only. So are we adding FDRE or complex FDRE? Can you give a breakup of 2.5 between this?

So those details are there. In which slide it is there? In Slide 7, we have given the breakup. And those are the type of projects that you would see, which will be a combination of solar and wind. I agree that there are large number of wind projects, which are there. And for that, we have already tied up all the wind turbines, which have to go, and we are going to implement all those wind projects apart from the solar project. But these are all hybrid projects. These are not stand-alone solar or stand-alone wind but these are all part of the hybrid FDRE projects that we are. Sanjeev Churiwala added: In case you are only referring to this and looking at pure solar, you also look at FDRE and hybrid. They will also have component of solar as well. Larger chunk would be towards hybrid and FDREs.

Anything that we can share that we are doing at Tata Power for nuclear as such? And anything that you're seeing any traction that is happening on the ground?

So, on nuclear, we have shared with you that we have working with 3 state governments. We have identified the land. We have also taken up for water allocation for which necessary approvals have been given to us and are in pipeline. We are also carrying out detailed geotechnical studies of each of these. And then nuclear plants require different types of geotechnical studies. Those are under progress. We are now doing detailed DPR of projects to be set up, and this will be done in collaboration with NPCIL. These are small modular 2 x 220 megawatt plants. And we do expect that some of them, especially some of the states, we will be able to do DPR in next 6 months' time. And we are also parallelly working on some of the other aspects, which needs to be finalized with Nuclear Power Corporation. So quite detailed discussions but it will take some more time for us to finalize the arrangement. It is 2 x 220 megawatts, so 440 megawatt.

On your Slide 7, the current operational capacity is 16.7 gigawatts and including pipeline is 26.3, which means an addition of 10 gigawatts. So is this the FY30 figure, 26.3 or how should we take this figure?

This is the current pipeline. So this includes the 2,800-megawatt pump hydro at Shirwata, where the work will start in this financial year. And all the existing, that means the Bhutan hydro, 600 plus 1,125 where we have already signed the financing arrangement with World Bank. So this takes care of all. Some of them will come up in 2031, '32, that is the 1125 Bhutan project will come in that year. Some will come in '30, '31. So -- but of course, all these solar and wind projects will come by 2030.

Your capex figure of INR25,000 crores - if you take an addition of 2 gigawatts per annum, then the capex is roughly about, say, on the higher side, maybe INR12,000 crores to INR15,000 crores. Does this mean that INR10,000 crores of regulated capex will happen in FY27? For FY28 as well?

No, I think it's not about regulated capex, but a combination of all the capex that Dr. Sinha spoke about. Of course, 2.5 gigawatt of solar and wind, that as you rightly said, that INR15,000 crores. But then you have capex coming up in pumped storages, capex coming up in pure hydro, so a combination of all of this -- transmission as well, so I think a combination of all of this, next year is INR25,000 crores, our sense is probably going forward also, we'll have a similar kind of capital outlay. For FY28 as well, yes.

We have signed the SPPA with Gujarat, of course. But now if there is an export duty or royalty, which comes from Indonesia, then how does that work with the SPPA, and how does it impact the negotiations with the other states going forward? Including a major royalty change?

Coal cost is pass-through. So, whatever is the cost of coal will be paid for. So that's the type of arrangement that we have. It's a coal cost, FOB cost, it has to be passed through what is included in that.

How should we read Slide 7 and Slide 32 together? Slide 7 highlights 5 gigawatt of renewable capacity, of which 1 gigawatt is a combination of plain wind and solar capacity, whereas 4 gigawatt a combination of 2.5 of FDRE and rest the hybrid project at the RTC. But if I see your FY32 slides, where we have highlighted the timeline of the FDRE and hybrid wind getting commissioned, the contracted capacity comes only to the tune of 1,200 megawatt. So does the 5,000 gigawatt of renewable capacity is the actual installed capacity or the contracted installed capacity? Because to the prior question, you have mentioned that we'll be adding 2.5 gigawatt each of IPP projects. So is this the contracted 2.5 or the actual capacity?

This is the installed capacity. Installed capacity given the Slide 34. Praveer Sinha: Installed capacity there in the third row. Management added: Slide 32, Anuj, we have given the installed capacity and the heading gives the contracted capacity. So contracted will be lower than the installed. When we give the guidance, we gave it on the installed capacity.

On Odisha projects - to a prior question, you mentioned that next year probably we'll be peaking out in terms of the performance. So apart from Northern circle, I believe other areas still have in the range of 18% kind of an AT&C. So what kind of loss reduction trajectory we can assume for the other 3 circles and to what level it can go? North Odisha is already at around 10%, whereas others are already at 18%. To what level we can expect the loss to further go down and by what timeline?

There is a trajectory that has been agreed with the Odisha regulator. And based on that, we do expect that all of them will come in 12% to 13% range in the next 4 to 5 years. So, you can expect that you will reduce about 2% every year in that sort of reduction will be a ballpark number.

In your Q4 profitability for IEL, we see an increase of almost INR63 crores. And then similarly for Mumbai Transmission as well of around INR50 crores. Given the nature, regulatory nature of these businesses, is it safe to assume that there was a significant asset capitalization? Or are there any one-offs? So this increase is recurring for transmission business?

This is more the deferred tax part. One of the plants got commissioned. So it's an asset, which has been added because of that - this is for IEL. No, that depends upon the asset capitalization timing and the deferred tax that is created because of that. So yes, I think it's not a yearly phenomenon but depends upon the asset capitalization and the profitability of that particular plant. For Mumbai Transmission - it's based on capex only. That is also capex. Mumbai transmission adds every year INR1,000 crores of capex. So, on a 70-30, you will have a return on equity on 30%. So that's what you need to consider plus certain O&M.