Adani Power Ltd (NSE: ADANIPOWER) Q3 2025 Earnings Call dated Jan. 30, 2025
Corporate Participants:
Shersingh B. Khyalia — Chief Executive Officer
Dilip Kumar Jha — Chief Financial Officer
Analysts:
Pranav Furia — Analyst
Mohit Kumar — Analyst
Puneet Gulati — Analyst
Bharat Shah — Analyst
Vinod Chari — Analyst
Nikhil Nigania — Analyst
Bharanidhar Vijayakumar — Analyst
Presentation:
Operator
Ladies and gentlemen, good day and welcome to the Post-Results Q3 FY ’25 Earnings Conference Call of Adani Power Limited. 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 touchstone phone. Please note that this conference is being recorded.
I now hand the conference over to Mr Pranav Furya from Antique Stock Broking. Thank you, and over to you, sir.
Pranav Furia — Analyst
Thank you thank you. Good afternoon, everyone. We are pleased to welcome you all to the Q3 FY ’25 earnings call of Adani Power Limited.
Today, we have with us the management team represented by Mr S.P. Khalia, CEO; Mr Cha, CFO; and Mr Nishit Dave, Head, Investor Relations. We’ll start with the brief opening remarks, which will be followed by Q&A. Over to you, sir.
Shersingh B. Khyalia — Chief Executive Officer
Thank you. Good afternoon, everyone. Thank you for joining us today to discuss our financial results for the 3rd-quarter of financial year ’25. I have with me our CFO, Cha; and Investor Relations Head, Dave. I’m sure you must-have downloaded and gone through our results announcement and presentation. Adani Power has continued its strong operational and financial performance in-quarter three with higher operating capacity after the recent acquisition of Power that was coastal and a gen, Power and the Hanu Power Plant. As you all know, India’s power demand has been growing strongly, barring some impact to seasonability and weather in recent months. Our fleet is well-positioned to address this demand, both under PPAs and in the merchant market.
As a result of this, we have continued with a strong PLR performance in-quarter three and the nine-month period till December 2024. While our power supply under PPS continues to enjoy a good merit order position, we have expressed higher volumes in the market, short-term as well as merchant. On a nine-month basis, APL achieved a PLF of 69% and dispatch of 69.5 billion units till December ’24. It is a growth of 22% over the corresponding period of ’24. Our revenues also registered a growth of 13% on a recurring basis for this period to reaches INR41,951 crores. The revenue under PPAs incorporates an element of lower import fuel prices. In the case of merchant sales, while tails have come down in the recent year, we were able to increase our volumes by more than 50% by leveraging our competitive advantages and earned substantial contribution. As a result, we have achieved a growth of 22% in recurring EBITDA for the nine-month period ended December ’24 to INR16,478 crores.
We have been able to resolve all our major regulatory matters successfully in the previous two fiscal years, due to which our recognition of prior-period revenues has gone down. We recognized INR2,420 crores of one-time revenue only in the nine-month period December ’24 as compared to INR9,227 crore in the corresponding period of 2024. Our profit-after-tax for the nine-month period is at a strong level of INR10,150 crore as against INR2,940 crores for quarter three 2025. This robust profitability and healthy liquidity are helping us to fuel our expansion plans to achieve more than 30 gigawatt of operating capacity by 2030. We have already given out the main plant equipment orders for 11.2 gigawatt capacity and secured the most critical part of the project supply-chain.
We are now giving out orders for civil war erection and commissioning and balance of plant in a phased manner for the upcoming projects. Our ongoing expansion project at Mahan for 1,600 megawatt is well underway and on-schedule with more than 40% physical. We have also started work at Raipur side for 1,600 megawatt expansion project, which will supply power to Maharash for which we have signed a PPA for net capacity of 1,496 megawatts. In addition to this, we are also in discussion with OEMs and other contractors for reviving and completing the 1,320 megawatt expansion project at which was earlier known as Lanco. More states are expected to come up with bids for long-term PPAs for sourcing base road power. We are keen to participate in these bids and are confident of leveraging our key competitive strengths successfully. We have selected our plant locations and various acquisitions very strategically.
Their locational advantage and availability of land will enhance our competitive edge for the upcoming PPH. Apart from this, we are also focusing on bolstering our school security by acquiring commercial mines in coal boats that are in the vicinity of our power plant. We have recently-acquired Mineral Resources from Adani Enterprises Limited and amalgamated it into Mahan Ener. The acquired entity is the licensee Diroli mine, which is just next door to the Mahan power plant at. It will supply 5 million ton of coal after two years, which will be utilized by the untied capacity of the Mahan power plant.
While we focus hardly on business growth and performance, we also pay equal attention to our responsibilities as a good corporate citizen. We make consistent efforts to fulfill our ESG commitments and improve our performance on various parameters. I’m happy to note that our whole round efforts have our recognition in the form of improved ESG ratings awarded by various Indian and international ESG rating agency. Recently, we have improved our score from 48 out of 100 to 68 out of 100 in corporate sustainability assessment by S&P Global. This puts us among the top 15% in the TF set, which has an average rating of only 42 out of 100. We have received other similar high ratings and continue to improve our performance year-on-year. Going-forward, we are fully committed to enhancing the value created for our all stakeholders through a relentless focus on duality and efficiency in all aspects of our operations. Thank you for your continued support. I look-forward to your questions.
I now hand the call over to our CFO, Mr. Dilip.
Dilip Kumar Jha — Chief Financial Officer
Over to you, Mr. Thank you, and good afternoon, everyone. As has put in, our performance for nine months and quarter three of financial year ’25 continues to reflect our strategic initiatives and operational excellence. On the operational side, APL generating capacity during quarter three FY ’25 was 17,550 megawatt as compared to 15,250 megawatt in-quarter three FY ’24 and this is mainly due to acquisitions. It achieved a consolidated PLF of 63.9% in the recently concluded quarter in comparison to 68.6% in the corresponding period of last year. Year. The main reason for the lower PLF was demand variability due to weather conditions apart from a strong base effect.
However, we have maintained excellent declared availability of our plants on the strength of our O&M excellence and fuel management expertise. Power sales volume grew by 8% for quarter three FY ’25 as compared to FY ’24, supported by higher operating capacity and a strong growth in merchant volumes. In the 3rd-quarter of FY ’24-’25, our continuing revenue stood at INR13,434 crores, showing a stable performance compared to previous year. Our continuing EBITDA for the quarter was INR4,786 crores, reflecting our ability to maintain profitability despite market challenges like seasonability and variability of demand. The continuing profit before-tax for the quarter was INR2,659 crore, while one-time prior-period income was INR1,400 crore in-quarter three FY ’25 as compared to a derecognition of comparatively very lower amount of INR50 crores in the same-period of last year.
On the base of this strong operating profitability and recovery of past dues, we posted a strong profit-after-tax of INR2,940 crores for the quarter. For the first-nine months of FY ’24-’25, our continuing revenue grew by 13% year-on-year to INR41,951 crores. This growth was primarily driven by higher sales volume, supported by improved power demand as compared to the previous year and larger operating capacity. Our continuing EBITDA for the same-period increased by 22% year-on-year basis to INR16,478 crores. This robust growth was mainly due to higher recurring revenues and lower fuel prices. Our focus on cost-control and operational efficiency has enabled us to achieve this significant improvement in EBITDA.
Furthermore, our continuing profit before-tax for the first-nine months of FY ’24, ’25 also grew by an impressive 33% year-on-year basis to INR10,679 crores. This increase was driven by the improved EBITDA and effective management of finance costs also. One-time prior-period recognition was comparatively lower, that is at INR2,420 crores in the nine months ended December ’24 as compared to INR9,227 crores for the corresponding period of the previous year. And this is primarily due to our — having received a majority of our regulatory claims in the previous couple of years. As you may be able to appreciate, the recurring financial performance we are reporting regularly now as ample demonstration of the core earning potential of our portfolio. We are also adding value-accretive capacity by organic means. Our recent acquisitions have been made at attractive valuations. They present us with an opportunity to turn them around quickly utilizing our sector-leading capabilities.
These results underscore our commitment to delivering consistent and sustainable growth. We remain focused on enhancing our operational capabilities, optimizing our cost structure and capitalizing on the opportunities in the Indian power sector. Thank you for your continued support and confidence in Adani Park. We look-forward to discussing our performance in more detail and addressing any questions you may have, please. Over to moderator.
Questions and Answers:
Operator
Thank you very much, sir. We will now begin the question-and-answer session. Anyone who wishes to ask a question may press star and one on their touchtone iPhone. If you wish to withdraw yourself from the question queue, you may press star and 2. 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 have our first question from the line of Mohit Kumar from ICICI Securities. Please go-ahead.
Mohit Kumar
Hi. Hi, good. Good afternoon, sir and thanks for the opportunity. My first question is, sir, can you please help us with the timelines for 1.4 gigawatt PPA, which is signed at AMC DCL when it is going to kick up.
Dilip Kumar Jha
Can you repeat your question please?
Mohit Kumar
My question was what is the timelines for 1.4 gigawatt PPA which is signed with MECDCL and. What was the timeline which you have to start supplying?
Shersingh B. Khyalia
Sure. You are talking about Maharashtra.
Mohit Kumar
Maharashtra. Yes.
Shersingh B. Khyalia
Okay. As per — as per the PPA, there is a type period of 42 months for the commissioning of the unit and before that there is a period of 18 months available for a financial closure. So let us say total 60 months are available, but we are planning to commission this within a period of four years. So as per PPA five years is available, but our retail plans is to commission within a period of four years.
Mohit Kumar
Understood, sir. And on the Lanco, I think you’ve acquired in this quarter, is that right understanding? And secondly, what is the — when do you expect this 1.3 gigawatt to be operational in your opinion? And how much — is and how much is the capex which we need to incur?
Shersingh B. Khyalia
Commissioning of the balance work will be around 30 months. It will take around 30 months from let’s say two day and as regards to capex is concerned I think it should be around 1,000 crores. That is what the estimated cost.
Mohit Kumar
Understood, sir. And have you sir acquired the Lanco completely in this quarter? Are you — is that right understanding?
Dilip Kumar Jha
Yeah. So we have acquired the Lanco on 6th September, so partially one month forward in the quarter two and then three months in-quarter three. Yeah. And we have acquired 100% of that, in case that is what you are asking.
Mohit Kumar
Understood. And sir, can you please explain the one-time booking of INR40 billion, INR14 billion and the nature of it? In the notes to accounts, we see only INR5c which talks about INR880 crore of INR871.82 crore of recognition towards tariff compensation claims.
Dilip Kumar Jha
Yeah. So this is pertaining to one-time income we kind of booked related to pole thoughtful for Ariana Discom. This is more than INR750 crore. DSM, more than — so this is around INR420 crore and the LPS charges in the rest of the discounts. So in total, you can say Haryana discom, whole shortfall 750, DSM 442 and on the LPS for rest of the discoms and mainly pertaining to Bangladesh.
Mohit Kumar
And is this a note number seven, sir, which is talked about the company has claimed compensation of alternate costs for 1.2 gigawatt of supplementary PPA at discount. It speaks about INR782 crore recognized revenues. Is this equated as to INR300 crores?
Dilip Kumar Jha
Yeah. So that is what — you know. So this is part of this is part of that and Haryana has accepted our 50% claim. So this is this is what you know the.
Mohit Kumar
This is only 50% claim is still…
Dilip Kumar Jha
This is 50%. Yes. We have raised a bill of up to this INR1,908 crores. Out of that, we have received INR966 crores. This is almost 50% of that. And so with minor adjustment related to taxes and duties, duties net amount of INR752 crore — INR782 crore we have recognized during the quarter. And we have received full payment against INR782 crore from Haryana Disco.
Mohit Kumar
Understood, sir. Thank you, sir. Thank you.
Dilip Kumar Jha
Thank you.
Operator
Thank you. We have our next question from the line of Puneet Gulati from HSBG Mutual Funds. Please go-ahead.
Puneet Gulati
Yeah, thank you so much, sir. My question is again just on this Haryana government acquisition of INR782 crores. So INR916 was not accounted as income earlier in our P&L at all. Is that understanding correct?
Dilip Kumar Jha
Yeah. The understanding is correct because what we do, we first ensure about the consistency of this income. In-quarter one we had received, then we waited to make it consistency. In-quarter two also we received. And finally, we saw that we are continuously receiving 50% payment. That is why in this quarter we recognized and it will be continued.
Puneet Gulati
Understood. So how much more should we expect from this going into next few quarters.
Dilip Kumar Jha
So we have received deal of INR1,908 crore and we have received half of the amount and let’s see.
Puneet Gulati
Okay. My second question is in your presentation, you talk about the PPA for signed for 1,500 megawatt. But my understanding was for the 2,000 megawatt thing. So is 500 still to go or is it scrapped?
Shersingh B. Khyalia
Which talking about?
Puneet Gulati
The MSC, DCL,?
Shersingh B. Khyalia
No, MSDCL, the bid itself was for growth 1,600 megawatt, that is two units of 800 megawatt. And our plant is also — the expansion is also of 200 to 800 units. And this is net capacity at the Maharashtra boundary after all the consumption. So there is neither surplus in that expansion and nor there is any further availability under that project.
Puneet Gulati
Understood. And if you can also talk about which states are you expecting to get bids from for your future tie-ups?
Shersingh B. Khyalia
Many of the states has the coal allocation under B4, which is the scheme under which state is getting a core for doing the competitive bidding for procurement of long-term power, under which Uttar Pradesh has got the coal, Pradesh has got the coal, Pradesh is in the process, then Assam has got the court, Karnataka has got the court. So many of the states have either got the call or have applied to Ministry of Power. So those are the target states where we expect that the bids will come and we will tie-up.
Puneet Gulati
And that’s and lastly, the status of Bangladesh power plant, what’s happening there?
Shersingh B. Khyalia
Bangladesh power plant is running as per the PPA, as per us, there is absolutely no issue and we have not received any communication from other side, which has any issue related to PPA. The payment position is concerned, we are getting from last three, four months slightly more than the regular bill. So in the process, some part of old outstanding is also getting liquidated.
Puneet Gulati
Okay.. Understood that. That’s helpful. And lastly, on the merchant power side, are you seeing lower tariffs, especially during the solar hours and if you want and do you shut-down your plans during solar or are you able to run it that time as well?
Shersingh B. Khyalia
During solar hours it is obvious that the tariff has to be lower and will go down lower because the solar power is available, let’s say, with reference to cost at INR50 per so. So obviously tariffs, tariff has to be lower, but this is a trend from last two, three years and going to be more or less same. But average the rate of supply, particularly during 3rd-quarter was lower on account of lower demand in this year 3rd-quarter, which is a bit abnormal situation because of — the temperature was not as high as it used to be. The demand from agriculture side was also lower. So this may be an aberration otherwise the average tariff is going to be to be good because during solar hours the rate may be lower, but other than solar hours because the thermal capacity has not been added and therefore, during peak hours, the country will continue to have shortages. And during those hours, the rate of power has to be almost INR10 and overall, the average should be good.
Puneet Gulati
So my question is how easy is it to shut-down during solar hours and we start in the evening or do you continue to run during solar as well?
Shersingh B. Khyalia
No, there is no need of shutting down, only the rate will go down. And secondly, we are not operating on day-to-day basis. Even the merchant power plants, we are tying up in, let’s say, weekly, monthly, six monthly, short-term, medium-term. So to a large extent to the extent of, let’s say, technical minimum, it is always ensured that the capacity is tied-up so that the plant will always run at technical minimum at least. And so during solar hours, the plant may be running at technical minimum so many times. If the rate is not available, higher rates are not available. But during peak hours, then you can immediately ramp-up and operate at full capacity. So plants are not shut-down during solar hours. They are — they are operated at lower capacity.
Puneet Gulati
Understood. That’s very helpful. Thank you so much and all the best.
Shersingh B. Khyalia
Thank you.
Operator
Thank you. We have our next question from the line of Bharat Shah from Ask Investment Managers. Please go-ahead.
Bharat Shah
Good morning, Shap in. I’m little confused about your initial comments about 3rd-quarter numbers being strong and robust, but the volumes having gone up 8% on the — in the 3rd-quarter compared to the last year 3rd-quarter, our operating revenues have declined 3%, operate continuing EBITDA has declined 5% and profit before-tax from the continuing activity has declined 18%. So I couldn’t correlate to both the
Robustness we were referring to or did I hear wrong? I don’t know, but I’m a bit confused on this.
Shersingh B. Khyalia
Good afternoon. While the initial remark I would give and then in detail, will explain, the robust — robustness is with reference to the total supply which we have done. And therefore, our PLF has been. However, with reference to the EBITDA, EBITDA is a function of the quantity and the price. Obviously, the price has been lower during the — this 3rd-quarter because of, as I explained that because of various reasons, the demand in the country was not that good as it used to be during this quarter. Last year quarter, last year the same quarter, the demand was quite high and therefore the market prices were at least INR1 and INR1.5 rupees higher than this year. So the prices in the market has gone down this year because of various reasons, which I explained to the other participant. So now.
Dilip Kumar Jha
Thank you. So for quarter three, yeah, quarter three, my reported EBITDA was INR6,185 crores. As again as that, last-time the quarter three same-period, this was INR5,90 crores. So there is also increase of INR1,100 crore. Yes, you are right, sir. In terms of continuing EBITDA, we reported INR4,786 crores as against INR5,059 crores. So there is a slightly INR200 crores in the lower comparison to the last quarter continuing EBITDA. And this is mainly due to the merchant realization. Last-time it’s quarter three FY ’24, the average realization was INR6.86 or rupees per unit. As against that, we reported INR4.5 crores. So this INR200 crores, the lower — this is mainly contributed by the comparatively lower tariff in pertaining to merchant realization. And accordingly, its impact reflecting in terms of continuing profit before-tax. Slightly in terms of depreciation cost and financing cost, this is due to new acquisition and we are very much confident that the period is coming in future of — so new acquisitions will add significantly to our numbers.
Bharat Shah
So broadly volumes have grown-up, but realizations have dropped and finance and depreciation costs have gone up because of the acquired assets. But core performance broadly is similar to the last quarter or to the similar quarter last year. It is not higher, but it’s similar. It’s higher in terms of the volumes, slightly lower in terms of the profits.
Dilip Kumar Jha
Correct, sir. So you will appreciate the merchant volume, merchant rate was 6.86 per unit against that 4.54%. So more than — so INR2 per unit. So this is an impact.
Bharat Shah
No, I understand the presentation. So yeah. Which now makes it very clear.
Shersingh B. Khyalia
Yeah. On Bangladesh, what are the outstanding dues as of the moment. This is it is around 800 million as of now is outstanding and overdue is something around INR700 and something around INR100 million there is a difference between they and us because of reconciliation, because of — they are not — they have not accounted for the LPS, etc so-far. So you can — you can take 700 million as outstanding as on-date broadly.
Bharat Shah
Right. And that 100 painting reconciliation, obviously is hopefully not forgotten, right?
Shersingh B. Khyalia
We have done the reconciliation up to the month of May and up to that they have also recognized INR53 million of LPS. So we are in a way quite good considering a foreign country and they have done the reconciliation up to May. So it’s not even, let’s say, more than 12 months spending. So things are seemingly okay now.
Bharat Shah
All right. But that 100 million pending reconciliation also will get reconciled and duly recovered, right?
Shersingh B. Khyalia
So yeah, as per us obviously because we are not saying it is not because there are issues of interpretation because we have started last year only this project. And so there are issue of interpretation related to our — in the formula, there is a concept, so which SBA will apply HBA, HVA 1, HBO2, HVA 3. So there are technical issues. So those things will get settled. And as per us, obviously, we are confident that we get — we will get realization of that.
Bharat Shah
Right. And I suppose the next year should be a pretty strong year because I think volumes will be much higher in ’26 compared to the current year, which is going by. And overall other fixed-cost and compared to that realization, I think overall performance of the business should be even lot stronger in the ’26, like in the Nine-Month of the current year, the core performance is very strong. I suppose next year with the increased volume, overall performance should be much, much better.
Shersingh B. Khyalia
Yeah, sure. We also feel the same because from, let’s say, January onwards, the demand has started picking-up. The rates has also started picking-up. And up to, let’s say, June, we see a very-high demand period. And July to September, obviously it is a natural rainy season. October, November, December, also we don’t foresee at this stage that there will be any issue in-demand because of various initiative of Government of India, the consumption of the electricity in the country is increasing day-by day and we hope that this robust economic growth will continue. So we have a very strong direct relationship with the growth of the economy and the growth of — or the demand of power. So if the growth of economy will continue to be robust, obviously, it will help us and we will also grow accordingly.
Bharat Shah
Okay. Thank you. Thank you, sir.
Shersingh B. Khyalia
Thank you, sir.
Operator
Thank you. We have our next question from the line of Vinod from PhillipCapital. Please go-ahead.
Vinod Chari
Yeah, thank you. Thank you for the opportunity. Sir, just wanted to understand your view that there is a thought of bringing down the coal-fired technical minimum from 55% to 40%. And so what do you think will happen in such a scenario? Because I think the government is thinking that solar will overtake coal in the dispatch.
Shersingh B. Khyalia
So government has already came in a trajectory whereby the various units of the power stations of entire country are divided and they have to reach, let’s say, those targets by ’25, ’26, ’27, ’28, ’29. So our two units are there in the next year to achieve the 40% and we are working on that. So obviously, when more-and-more solar power will be available, the unit should be capable of going down up to 40%. But as regards to thermal capacity is concerned thermal capacity is not having much of issue because our revenue is dependent on availability. So we have to ensure that we are available and thereafter it is up to the customer to decide at what level they want to operate. Nevertheless, they cannot ask to operate less than 40%, which is — which is going to be the technical minimum even after implementation of this flexible scheme.
Vinod Chari
Yeah. Okay. So basically, I think the cutoff point will be the solar cost-plus the fixed-charge recovery that is going to the thermal plant should be lower than the cost of thermal. Otherwise there is no sense in backing down thermal, right?
Shersingh B. Khyalia
Not necessarily because solar is not going to have any variable-cost and the solar will always have a must and status. So when the solar will come, you are not supposed to stop it even if it is costing INR2,5 to the buyer. But as a country as a whole, it is not consuming any resources. So at that time, you cannot consume a consumable of, let’s say, INR2 coal and avoid the solar. So that is — that is not going to work that way because all the grain resources will have much run status. So they will inject the power. So we have to think of in that way.
Vinod Chari
Okay. So basically, the basic cost will be built-in the system will be the solar cost-plus the fixed-cost recovery of the thermal plant. So broadly.
Shersingh B. Khyalia
Okay. That is also not going to — may not be true because the solar is maybe being generated for somebody else, the thermal is being generated for somebody else. So overall country-level, the things will not be considered this way. On overall country-level, what is the generation available during detail, let us say, against a demand of 4 lakh megawatt, 3 lakh megawatt is available from solar. So all the thermal waste stations has to come down to-1 lakh megawatt, irrespective of who is the buyer of that thermal project.
Vinod Chari
Okay. Okay, sir. Sir, second question I had was on BTG. I think the recent ordering that has happened for Kawai, Mahan, Raipur. Was BHL the sole bidder in those orders or were there other players also bidding for those BTG orders? Or was when you negotiated the package 1800 to 800 megawatt with BHM?
Shersingh B. Khyalia
It’s not a question of bidding because it was not strictly doing the bidding. We have taken the courts and discussed with various parties and finally, based on the lowest-cost basis and considering the capability to deliver, so it is not only the cost also considering the capability to deliver. The BHEL was found the most, let us say eligible supplier within our requirement. So that is where we have selected VHL. And obviously VHL is the most reliable equipment supplier in the country being a being a PSU, obviously the reliability is higher, the economic strength is higher and we can we can get assurity that we will get our equipments on-time.
Vinod Chari
Sure. So who, who are? Who are the other players in the other than BHL?
Shersingh B. Khyalia
I don’t think we should be discussing over other competitors because they are short of confidential let’s say discussions from whom I am sourcing what I am sourcing I don’t think on a public platform we should discuss.
Vinod Chari
Sure sir. Got it. Thank you so much, sir.
Operator
Thank you. We have our next question from the line of Nikhil Nigania from Alliance. Please go-ahead.
Nikhil Nigania
Thank you for taking my question. My question is on the 12.5 gigawatt pipeline. So am I correct to understand the BTG orders have been placed for the entire quantum? And then accordingly, but do we have PPA visibility? I understand only for the Maharashtra contract and with Reliance Industries. Other than that, then what is the plan in terms of split between merchant and PPA in terms of capacity? And we have we achieved financial closure for this entire quantum?
Shersingh B. Khyalia
Yeah. For entire 11.2 gigawatt, we have obviously placed the orders of BTG and for the balance of plant also, we are in the process of putting up the orders. Obviously, we have signed for two units with the Maharashtra. And as I explained that many, many other states are going to come for bidding because the country has planned to add another 80 gigaw to 90 gigawatt by 2030 31 and except, let’s say, for the time-being NTPC and few state, there is no capacity addition. So there is a — there is a big gap in the capacity addition. So we hope that the states will come out with the bids and we should be in a position. We are very confident that we should be in a position to tie-up this entire capacity under the long-term TPA. So we are not envisizing these new capacities under the captive and as regards to the financial closure is concerned, we — as you must-have seen our performance and results where we don’t foresee much of requirement of strictly financial closure. Most of the funding will be through our internal accruals, except if there would be some mismatches during few years for that only we may require the interim funding.
Dilip Kumar Jha
Yeah. So we are not going for any project-to-project financial closure. As you know, Natalia saw has already explained that we have sufficient our internal approval. And if there will be any shortage in-between for interim period, definitely we will go-forward. Otherwise, our internal approvals are more than enough to meet the requirement.
Nikhil Nigania
Appreciate your response. My second related question is, I understand the need for states to sign baseload PPAs with coal plants. But given this incremental trend of solar plus four-hour battery, solar plus 2R battery, which is coming at 3, IN 3.5 rupees, do you see any risk to the — as you know, ordering so many plants without PPAs?
Shersingh B. Khyalia
See, solar or two-hour battery or four-hour battery is not going to address the requirement of this load because if you strictly want to provide around-the-clock power-based on solar and battery then you need to have 16 hours of battery storage and even that would be insufficient, let us say a situation where you will have a seven days of complete cloudy environment, then no solar power is available for charging the battery. So thermal will not — will not have any substitute. So ultimately, you need the thermal power irrespective of whether you — whatever hours of battery you establish. So we don’t foresee that in near-future, solar plus battery is going to provide you the baseload requirement. So for waste load requirement, thermal will continue to have its importance, except that if you get a large-scale nuclear power generation, which is unlikely to happen considering the present circumstances.
Nikhil Nigania
Understood. Thanks for the answer. I’m guessing you see the same challenge with solar plus pump storage as well that if cloud cover is there, you could have lower generation. That’s why you think thermal and/nuclear is the answer for base-load. Am I correct to understand that?
Shersingh B. Khyalia
Okay. That’s correct. And otherwise also, even PSP will have a limited capacity, maybe, let’s say, 50,000, 60,000 megawatt. So it is not that we can have a 4 lakh megawatt of PSP in this country.
Nikhil Nigania
Fair point. One last question, if I may ask that’s bit more near-term. Section 11, do you see it continuing further now that demand has softened or as you highlighted earlier, you expect demand to revive and shortages again to come back-in the summer months, hence you see that continuing going-forward.
Shersingh B. Khyalia
See we, we are indifferent to the section 11, whether it is imposed or it is not imposed, because our power stations are being operated not strictly under Section 11. So our PPAs are viable. So we are not much of concerned about 6 and 11. But nevertheless going-forward if the capacity available in the country is sufficient then the plants other than those who are under Section 11 can meet the power requirement, then Section 11 is not required. Otherwise, it is up to government of India to decide. But as far as we are concerned, we are not affected by whether it is there or whether it is not there.
Nikhil Nigania
Got it. Thanks. Those are my questions. Thanks so much. T
Operator
Thank you. Before we move on to the next question, a reminder to all participants, if you wish to ask a question, you may press star and one on your touch telephone. We have our next question from the line of Bharani from Avendus Spark Institutional Equities. Please go-ahead.
Bharanidhar Vijayakumar
Yeah. Good afternoon. Am I audible? Or sir, you need to be a little louder. Yeah, is it better now? No, sir. Okay. Is it better now? Yes, sir. Please go-ahead. Yeah. So like my question is on the power demand growth in the long-term. Now even in your presentation, the power demand growth for the country by 2032, which is 390 gigawatts assumes a high-growth rate of 7%, but in the last few quarters, it has come down. And what is the confidence we have that if the existing demand growth of 5% continues that the requirement for baseload thermal capacity will still be there and hence, there will be incremental demand or PPAs that is required on the thermal side. If the growth is subdued, then wouldn’t the wound the incremental capacity requirement and on the thermal side not be there your views on that. Thanks.
Shersingh B. Khyalia
This is a sort of a sensitivity analysis which you are asking, but since you have asked this question, we can go back one year or two year back when the projections were made based on 5% growth and at that time also the requirement of thermal was projected to be 60,000 megawatt. And even at 60,000 megawatt, we are perfectly okay because in that 60,000 bucket also, also our capacity expansion of 11,000 is not going to let us say make more power available, thermal power available than the requirement of 60,000 additional capacity.
Bharanidhar Vijayakumar
Okay. And I mean, this situation will get worse if there are many battery and storage projects which are also right now under-construction are under-construction. So my worry is whether the existing pipeline of projects that have been announced by both Adani and NTPC and others, wouldn’t that be sufficient for the next, say, seven, eight years.
Shersingh B. Khyalia
He CEA has already prepared resource adequacy plan for all of the states, considering very aggressive PSP targets, very aggressive battery storage targets and even that with that the CA has suggested to tie-up the power by all those states who are seeking the fall from Government of India or who have sought from Fall of India and got the allocation. So all these things are already factored into in the resource adequacy plan prepared by CA. Both type of scenarios are provided in that resource adequacy plan, if you go through that, the most aggressive, the conservative, the delayed scenarios, all type of scenarios are provided.
And the states which are planning to buy long-term power are planning based on most conservative — the scenario. So even with the most conservative scenario, if that type of capacity is required, required in fact we see the much higher opportunity that if that even the middle scenario or the if the most robust scenario is actually going to happen in that case, the requirement of power will go much, much higher than what we are discussing. So even in most conservative scenario prepared by CA, our capacity or the capacity being planned by all the thermal generators here very much required.
Bharanidhar Vijayakumar
Sure, not unclear. Thank you so much.
Operator
Thank you. A reminder to all participants, you may press star and want to ask a question. We have our next question from the line of Bharat Shah from Ask Investment Managers. Please go-ahead.
Bharat Shah
Up, you mentioned earlier to some question and that you will not need to tie-up any funds for closure of any projects or it doesn’t have to be tied down to a particular project because of adequate cash availability. But I thought issue is on the other way around. We will have lot of surplus cash over the period of time. Our current EBITDA run-rate is almost about $3 billion per annum and pretax profit is almost $2 billion. And if is our capacity target to reach 30 gigawatt is there over the five-year timeframe, I think lot of actually additional cash-flow available over a period of time. So the question actually to my mind is how do you propose to utilize the cash which will be excess rather than whether you will have a have cash-flow need to be funded through borrowing. Thank you.
Dilip Kumar Jha
Very important and interesting question so-far we are interacting with in session. And you rightly said that and I also under communicated that we are not going for any project-wise funding. And if there is an interim requirement that we will look into it. But the next interesting part, as you rightly said, sir, there is a — there will be significant amount of the surplus cash-flow over the period of time. And you know the DNA of Adani and you are the base person, sir, even better than me, far, far better than me on record that keeping our track-record and DNA, I can assure you that this surplus cash-flow will be utilized in a manner that it will give the best of the industry return across we can have in future.
Bharat Shah
Sure, that answers it. Thank you.
Dilip Kumar Jha
Yes. Thank you, sir. Thanks a lot.
Operator
Thank you. A reminder to all participants you may press star and want to ask a question a reminder to all participants you may press star and want to ask questions thank you. As there are no further questions, I would now like to hand the conference over to the management of Adani Power Limited. Thank you. Over to you, sir.
Dilip Kumar Jha
Thank you. Thank you. Thanks a lot, friend. Really, it was a very interactive session and looking-forward to interact with you in the subsequent quarters and then we will continue our journey of success and growth. Thank you. Thanks a lot for your time and patience. Thank you.
Operator
Thank you. On behalf of Antique Stock Broking, that concludes this conference. Thank you for joining us and you may now disconnect your lines.