Note: This is a preliminary transcript and may contain inaccuracies. It will be updated with a final, fully-reviewed version soon.
Powergrid Infrastructure Investment Trust (NSE: PGINVIT) Q4 2026 Earnings Call dated May. 19, 2026
Corporate Participants:
Mr.Naveen Srivastava — Chairman, Non Ind & Non Exe Director
Gaurav Malik — Chief Financial Officer
Navdeep Singh — Unidentified Participant
Sunil — Unidentified Participant
Pramod Kumar Gupta — Unidentified Participant
Amit Chakravarti — Unidentified Participant
Bharat Lakshman — Unidentified Participant
Analysts:
Nitisha — Analyst
Palash Jain — Analyst
Dhonil Rauth — Analyst
Nilesh Doshi — Analyst
Unidentified Participant
Presentation:
Operator
Ladies and gentlemen, good day and welcome to Power Grid infrastructure investment trust Q4 FY26 earnings conference call. This conference call may contain forward looking statements about the company which are based on the beliefs, opinions and expectations of the company as of date of this call. These statements are not the guarantees of future performance and involve risk and uncertainties that are difficult to predict. 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 Ms. Nitisha from ICICI Securities. Thank you. And over to you, Misha.
Nitisha — Analyst
Thank you, Ranji. Good morning. On behalf of ICICI securities, we welcome you all to the Q4FY26 earnings call of Power Grid Infrastructure Investment Trust. Today we have with us from the Management, Mr. Naveen Srivastava, Chairman, Mr. Sanjay Sharma, Director, Mr. Amit Garg, Director Srimati Meena Das, Chief Executive Officer, Mr. Gaurav Malik, Chief Financial Officer and Mr. Shwetan Kumar, Company Secretary and Compliance Officer. Without much delay, I’ll hand over the call to the management for brief opening remarks which will be followed by a Q and A session.
Thank you and over to you.
Mr.Naveen Srivastava — Chairman, Non Ind & Non Exe Director
Thanks, Ms. Nirisha. Good morning everyone. On behalf of Power Grid Uchaha Transmission Ltd. Putl the investment manager to PG Invit, I extend a warm welcome and sincere thanks to all the participants for joining us today. I am joined by Mr. Sanjay Sharma and Mr. Amit Gard, Directors of PUTL. Mrs. Neela Das, CEO Mr. Gaurav Malik, CFO, Mr. Shwetan Kumar, Company Secretary and Compliance Officer along with other Senior colleagues on 15 May 2026. Results for quarter and financial year ended March 31, 2026 along with the distribution details for Q4FY26 were announced.
The results are available on the website of bse, NSC and PG Invid. A detailed investor presentation has also been uploaded. I will briefly touch upon the key highlights. PG Invit has continued to see a steady investor participation with the number of unitholders increasing from around 15,000 at IPO to our 2.7 lakhs as on March 31, 2026. We truly appreciate the continued trust shown by our investors for those who are very new to PG invit. PG INVIT is a infrastructure investment trust sponsored by Power Grid Corporation of India Limited Power Grid Uchaha Transmission Limited or we call as PTL, 100% subsidiary of Power Grid acts as a investment manager of PGNVT and IDBI Trusteeship Services Limited is the Trustee.
Power Grid is also the Project manager of PG Invit. The trust currently holds 100% equity in all the five of its SVVs namely Vizag Transmission Limited, Kalam Transmission Limited Pakistan Surly Power Transmission Limited, Varora Transmission Limited and Jabalpur Power Transmission Limited. These assets includes 11 transmission lines spanning approximately 3,699 circuit kilometers and three substation with a total capacity of 6,630 megabas across five states namely Himachal Pradesh, Andhra Pradesh, Telangana, Madhya Pradesh and Maharashtra.
All assets are operational and backed by a long term agreement with an average residual life of over 26 years. These ists assets operate under TBCB framework on a boom basis with a contract tenure of 35 years which provides strong revenue visibility and limits tariff related risks. Backed by Power Grid’s expertise, the assets continue to demonstrate reliable performance and operational stability with high safety standards. With a fixed tariff model and relatively low leverage, PG INBIT is positioned to generate predictable cash flows while maintaining flexibility to pursue growth through acquisitions.
Our objective remains straightforward, I.e. Delivering consistent and stable returns to our unitholders. Moving to the distribution for Q4FY26 on May 15, 2026, a distribution of Rupees 3 per per unit was declared for the quarter ended March 31, 2026. This marks the fourth distribution for FY25 26 and the 19th consecutive quarterly distributions since listing. The payout will be made on or before May 27, 2026. With this BGN, VIT has distributed accumulative rupees 58.50 per unit since IPO issue price rupees 100 per unit amounting to more than rupees 53.23 billion in total distributions.
The total payout for FY 2526 stand at rupees 12 per unit. In line with the guidance shared earlier, we intend to maintain this level and target a distribution rupees 12 per unit for FY 2627 as well. All distributions continue to be aligned with PG in VIT’s distribution policy and SEBI INVIT regulations which requires at least 90% of the net distributable cash flow to be distributed to unitholders. Accordingly, distributions are declared and paid at at least once every quarter. Let me tell about the highlights for the quarter and the financial year ended March 31, 2026.
On the operational front, the Project Manager has ensured efficient and reliable functioning for all transmission assets supported by the use of advanced technologies and a strong focus on safety. The average availability across all SVB’s remained above stipulated benchmarks based on the previous provisional data. The Average availability for FY26 exceeded 98% across all SVVs. These figures remains subject to final confirmation pending receipt of monthly Availability certificate from certain Regional Power Committee RPCS for the period January to March 2026.
Now I’ll come to the project under regulated tariff mechanism being executed EPTL involving the implementation of a 400kb line bay at 765 by 400kV early new substations for renewable energy interconnections. The project has been completed within the scheduled time I.e. On 31st December 2025. ARIF petition for the same has been filed with CRC. Billing to the beneficiaries will start after the tariff order is being received. I am also happy and proud to share that no accidents were reported during the entire year FY2026 reflecting our consistent emphasis on safety.
Next, on The CSR front, PG Invit has supported 11 primary health centers, PSCs, community health centers, CSEs, rural hospitals across various states by providing medical equipments. The total CSR expenditure across SPV was around rupees 5.87 crores, achieving full compliance with the statutory requirements under the Company act for yet another year. Now I come to the Financial highlights for Q4FY 2020526 PG Invit reported total consolidated income was Rupees 3200 million. Revenue from operation was Rupees 3114 million.
Another income of Rupees 86 million. Total consolidated expenses stood at Rupees 11. 31 million for the financial year 2526. Total consolidated income was Rupees 12,966 million. Revenue from operation was Rupee 12,580 million. Another income was Rupees 386 million. So consolidated expenses stood at Rupees 3,565 million. Profit after tax excluding reversal of impairment for FY 2526 is Rupees 7,902 million compared to Rupees 6,639 million for the financial year 25262425 earning per share is Rupees 10.02 for the financial year 2526.
Total assets is Rupees 1 lakh 75 million for financial year 2526. The NDCF net distributable cash flow stood at Rupees 2,761 million for the Q4FY 26 and Rupees 10,906 million for the financial year 26. More than 90% of NDCF generated at the SPV level was upstreamed to the trust by March 31, 2026 in line with the regulatory requirements. The Q4 distribution of rupees. Exempt dividend rupees 0.09, repayment of capital SVB debt rupees 0.77 and treasury income of rupees 0.02. The distribution exceeds the minimum regulatory requirement reaffirming our commitment to consistent payout.
As of May 31, 2026, the total outstanding external borrowing stood at Rupees 10,640 million which includes Rupees 5,612 million loan from SDFC bank raised in March 2022 and Rupees 5,028 million loan raised in December 2024. For acquisitions. Both loans are floating rate linked to three months Treasury Bill and repo rate respectively with an average cost of debt at 6.97% for financial year 26. With a low net debt to OM ratio, PGNbit remains the flexibility to fund future acquisitions through debt while maintaining financial discipline.
The Trust continues to hold the highest credit rating of AAA with a Stable outlook from ICRA Kaisil and Care Bill. Trade receivable stoods at Rupees 6047.28 million representing approximately 90 days of 19 days of billing. Now I’ll come to some highlights on the outlook. Our growth strategy continues to focus on acquiring operational power transmission assets aligned with INVIT regulations and unitholder interests. As we have continuously communicated at present, the availability of such operational assets remains limited which continues to be a key constraint.
However, the overall sector looks outlook remains very encouraging. CAI recently published a transmission plan for integration of about 900 gigawatt non fossil fuel capacity by 2035-36 which emphasize an additional investment of Rupees 7.93 lakh crore over next ten years for integration of renewable power. The master plan for evacuation of power from hydroelectric plants in Bramputra Veshin as prepared by CA also emphasize an additional investment of rupees 1.91 lakh crores up to 2035 and 4.52 lakhs beyond 2035.
The tariff based competitive bidding has picked up pace and currently 84 ISTS projects are under implementation including 41 by private players. As these projects become operational, they are expected to provide a steady pipeline of acquisition opportunities. We are actively tracking these developments to stay prepared for future acquisition opportunities. In addition, state level assets monetization presents another potential avenue. If states choose to monetize operational assets, it could open a new opportunity for PGNV for the same areas.
State authorities and stakeholders are continuously being contacted and persuaded. With strong financial position, ample depth headroom and a diversified investor base, PG INVIT remains well placed to capitalize on emerging opportunities. All potential acquisition will continue to undergo rigorous due diligence covering operational, regulatory and governance aspects to ensure they are value accretive and aligned with unitholder interest. Now let me tell you about some guidance. We would like to mention our distribution guidance of Rupees 12 permits for financial year 2627.
Thank you. And now I would like to hand over to the moderator for further proceedings.
Questions and Answers:
Operator
Thank you. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on a 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. As a reminder to all the participants, please restrict yourself to two questions. Ladies and gentlemen, we’ll wait for a moment while the question queue assembles. The first question comes from the line of Palash Jain with ICICI Securities.
Please go ahead.
Palash Jain
Thank you for the opportunity and congratulations on a consistent performance. So my first question is that in the last con call as well as in the PPT of this quarter it is meant management mentioned that in principle approval has been received from Power Grids board for the consortium. Right. So has it has the consortium agreement been finalized or have any specific projects been identified or bit submitted? Just a color on the timelines and specific projects would be helpful. Yeah, that’s my first question.
Mr.Naveen Srivastava
You know that yes. Power grid has board has given you know clearance for. For the projects with aggregate cost around 500 crores and this was the first step towards that and now this is already gone for the ministry and for the approval and it is on the advanced stage and surely very shortly we are going to get the nod and we will start doing it in that direction.
Palash Jain
So have. Has there been any pipeline? Which pipeline visibility like and any color on what the specific projects could be or any bids have been submitted for that?
Mr.Naveen Srivastava
Of course for the primary for the transmission projects which is us. I have already in my, you know speech we have told you that lot of the projects are going to come for the 900 gigawatt. CA has also brought out lines and a lot of projects are coming in TVCBM and surely we will be interested in those projects.
Palash Jain
Okay, that’s helpful. My second question is with regards to the state asset monetization plan which was also mentioned in the last concord. Is there any near term visibility of the pipeline or AS or the assets to be monetized?
Mr.Naveen Srivastava
We are continuously in touch with. I’ve already explained to the you know various parties if they are. We are putting it. If they are ready to give it to us and not only state authorities but also for other agency who are transmission licensees which are including private licensees which they want to give it to us. And surely we’ll come out with some good proposals. Because you can see that these transmission integration plans of which is very. You can see that Investment of around 7.93 lakhs crores in by CA or Ramputra basin is another 1.91.
So the next 5 to 10 years lot of projects are coming up. So of course when these becomes operational the people want, you know, demonetize it. So we will be there to pick up that way.
Operator
Thank you Mr. Chair. Please rejoin the queue for more questions. Next question comes from the line of Dhonil Rauth with Karal and Stockbroking Private limited. Please go ahead.
Dhonil Rauth
Yeah. Hi. I have two questions specifically related to the impact on IRR due to interest rates rising in the current scenario and rising cost of inflation. So what would that impact the on the projects that are going on right now? That would be my first question.
Mr.Naveen Srivastava
Rising cost inflations because it’s operational assets and power grid is our project manager presently I don’t see any much impact on our operational this way. I don’t feel any. Any impact on that.
Dhonil Rauth
Okay. And my sec. I have another question. So like in the industry around what amount of. Like what amount would be expected in the transmission industry by the government in the coming years as you mentioned till 2020 35. There are two projects that you mentioned. So can you give maybe a range of number.
Mr.Naveen Srivastava
I’ll come to the first question again. I tell you because of these crisis you understand the energy transitions always pleasure overload. When people will. The demand will increase. Of course generation will come. So anyway transmission will come out. The assets will and this power industry will have a positive impact on that. So I don’t Feel any rising cost in it is having that way. And what was your second question? Can you repeat it?
Dhonil Rauth
How much inflow is the government expecting into the transmission industry? As such
Mr.Naveen Srivastava
That I already told you that you must have seen the transmission plan by CA that is giving a very lucrative figure of 7.93 lakhs crores up to 203536 only in the transmission sector. And secondly it is you can see that it is not only having intra states also having ists. Both are coming up in that way and lot of projects are coming under tvcb. They as far as I know I’m not very sure of the figure but almost 1.5 lakhs or 3 lakhs figures are under bidding which is going to come and they will be operational after 24 or 30 months.
These projects will going to come to us and once the Brahmaputra basin will pick up that will also bring around 2 lakh crores by 2035. So it’s a very impressive figures which is coming out and it will be very good for the transmission sectors. And when the people start making it, when they want a new projects and all of course they will surely they will monetize so that they will get a good equity and they will invest in future projects.
Operator
Thank you Mr. Raut. Please rejoin the queue for more questions. Next question comes from the line of Nilesh Doshi with Prospero tree amc. Please go ahead.
Nilesh Doshi
Thanks for the opportunity sir. Thank you for maintaining the guidance of distribution of rupees 12 for FY27. However sir, you are repeated in me in every con call you are mentioning that you are find. You are searching for the new operational asset and it is not available. But sir, we are now the PG in which is now the five years old inmate and could not find a single operational asset though the PZ power grid itself is a sponsor and in this field since last many years and interest rate cycle was also on the lower side.
So for the continuity of the inmate business the addition of the new asset is must and we are not finding the any proper asset. Please share your thought. And you are still you are mentioning about the 2035 there was a some opportunity and you you may find this good opportunity. Burster. We are in a 2026 are fixed and it is going to reduce so how we will maintain the future distribution. So I think that as an investor you must add some or you should find because in the same field some indigenous finding the best opportunity or adding the at a new operational asset at regular interval.
Please share your thoughts, sir.
Mr.Naveen Srivastava
So let me tell you that we are, you know well distinct to see that unit holders interest are being taken care. For that only we have gone for in principle approver of consortium with power grid to straightway invest in this, you know PG in the TBCB projects. Because we can see these number of projects are coming up. At least we can go one, two, three projects. If we are quoting it then we’ll get some assets. And our project manager is power grid. So there is no doubt this is the area where we are further moving in that direction.
And secondly with the assets which are already operations we are in touch with lot of agencies and we’ll see that some good results will come out. Surely we have to wait and watch because I cannot take. We have to see the interest of the unit holders. I cannot go and straightway take up the assets which is not very lucrative to us. We have to see, we have to find it out. I have also told in my address that the interest of unitholders is to be seen and we are going in that direction. I’m making you sure that surely some results will come in.
Nilesh Doshi
I hope the new asset will be added within a short time. Sir, my last question is that regarding the navy. So the latest value valuation report reflects the navy of rupees 90 rupees 79 paisa. Last year it was 94 rupees 1212 paisa. And in 202324 it was 83.24 paisa. So why there is a change is our all projects as a fixed tariff rate. And so the cash flow is more or less the fix. Is it because of the discount rate or anything else? Because the cash flow will remain the same. There was a 83 rupees 24 peso.
Then it’s to 94 rupees then now 90 rupees 7579 pesos this year. I can understand that because the one year has passed. So one year less available with the invit and less cash flow. But why there was a jump in last year and now it is, it has come down. And what the termination value the valuer is taking. Because the I think the VLA it’s not the BO we have. We need not to transfer the asset to the sponsor at the end of the life.
Gaurav Malik
So sir, basically you are very correct when you pointed out that the valuation is primarily fluctuating due to the change in the wacc. Now WAC is a dynamic thing which can fluctuate at any given point in time. Keeping into consideration the present situation and what the valuer expects the future to be. So at March 25, I suppose it was 8.95. Then it fell down to 8 due to the cooling off of interest rate and there was a corresponding increase in the valuation which you can see. So that was the part which explains the fluctuation and also the fact that you know, the year cash flow has already been taken out.
Having said that, there is one more dynamic because you know, the terminal value also preponds gets preponed by one more year. And as far as the valuation of terminal value goes, so you are, you know, these projects are on the boom basis. So the assets remains with the trust. There is no question of transferring it back to the sponsor or through any other agency. Now how the valuer is working out the terminal value is that on the last year of the, you know, the transmission service agreement it is typically of 35 years.
So as on the last year, whatever the EBITDA is, it is, you know, it is forecasting it for the eternity and maintains the CAPEX equivalent to the depreciation as on the last year and that in that manner it is calculating the terminal value. However, having said that, you know, whatever happens to these assets after 35 years will be the call taken by the system planner. If these assets continue to hold value and continue to serve the grid at large, these projects will be, you know, the life will be further extended.
We will be increasing the corresponding capital expenditure and there will be corresponding inflow of the revenue. So that is how the transmission sector will be working out.
Operator
Thank you. Mr. Doshi. Please rejoin the queue for more questions. Next question comes from the line of Navdeep Singh there with Tailless Venture. Please go back.
Navdeep Singh
Good morning sir. Thank you so much for the guidance of FY27. Sir. I want to pursue on the same lines as my predecessor. So you mentioned that the foremost interest of unitholders is what the management is aiming for. So. But the thing is, unless we add some ongoing projects in the next one year our distribution is more likely to go down. So it’s good that we talk about FY35 etc. But by that time half of the current management will either retire or go back to the parent. So we don’t want to be left hanging in a situation where the current management promises a lot about FY32.
FY35 and the distribution goes down. Because what my predecessor has asked is correct that we keep repeating these lines that we are open for all opportunities but we are not finding anything. How do we not find anything when our competitors are actually finding some opportunities. And also there is a tremendous push by the government to promote invid among the retail because we are the people who are putting in real money at work. If my distribution goes down, my capital gets eroded. So what exactly is the current management doing?
Thank you.
Mr.Naveen Srivastava
It’s not who told you it is zero. It’s not that we are discussion is being held with various stakeholders and we are addressing the key concerns and all we are going in the process. I’m telling you. And that’s why we are gone for the consortium also we see that another area where we can further move in that directions we are monetizing. We are continuously pursuing that so that some people come out for unless these figures, you know, transmission plans and all it will not come. This is also become a very added advantage for us because they are telling these what’s a project.
So they require some money for that. They require equity. So people will come to monetize their sets. And we are continuously in touch with and surely we’ll come out with some good figure. And where we are monetize our, you know, some of the assets we see that we are continuously in touch not only with the states but also some of the private transmission licenses also. So that we get some assets in our basket and we will bring those. And surely this consortium will be effective very shortly once the approval comes from Deepam and we’ll surely work in that and we start investing in that direction also.
Your point is very correct that from next to next 2027 there is a little bit dip in the because of the appreciation cost. But we are more concerned. We are also concerned equally and to see that some assets add to us. Yes, I agree with you
Navdeep Singh
Sir. Just a small follow up. I don’t take more time. We know that we got the approval with Powered Consortium a few months back, a few quarters back. Nothing is new. Sir, we operate in a public, public environment where getting an approval for a consortium is one thing but signing the dotted line is different. It takes a lot of time. So can you can your CFO tells me if nothing happens and since we are admitting that there is a likely dip in the distribution beginning next year, what is that number?
Because we don’t want to be in a situation that you maintain 12 rupees for FY28 but that is, you know that is being taken out from our capital reserves somewhere. So what is the more likely number if nothing materialized in this financial year? Because if there was some opportunity at the Anvil which might have concluded. You must have mentioned it. So let us. Let us get a figure. If you can kindly provide.
Gaurav Malik
Commissioner. I mean the figures are very much available in the evaluation report. If you are. If you happen to see those. I mean there is no hiding of the fact that from fiscal 2728 there will be a dip in the revenue top line of Approximately how much? 2324 odd percent. So maintaining 12 rupees will not be possible without addition of the new assets. Yes. And for the further digging into the number crunching the valuation report is available in the public public domain. So you can have a look at those numbers.
Mr.Naveen Srivastava
And I think we should why we are seeing it will not be done. It is very clear that it is not only government also wants that in which will be. It’s coming up and consortium is in advance phase of approval. I’m telling you we are pursuing it that once it’s come out from the ministry and immediately we’ll take up this issue. No issue. If we think in that direction it will be a negative part of that. I’m sure that these are going to consortium. Once again bod of power grid has cleared it and it will come out from ministry also that so that they also want some good competitors in between.
That is also there. So they will get a good because they have to invest around 7.9 lakhs crores. How if they don’t have investors they will not be there. So it is very clear that in near futures PG in will be in a better position.
Operator
Thank you Mr. Pulil. Please rejoin the queue for more questions. Next question comes from the line of Sunil and Indujal investor. Please go ahead.
Sunil
Hi, good morning. I think the management has done pretty well Given that the government’s flip flop on you know monetizing the power grid assets. But do you see that given you know current budget situation given the crisis in the Middle east and probably government finance is going to get impacted and they may have to sell the. You know power grid. Monetize the power grid to raise more capital. If they are planning like 8 lakh crores of investment. Do you see government changing their illogical national security issue and you know allow power grid to sell assets that are already operational.
Mr.Naveen Srivastava
Thank you. Sunil. This is. It’s a very tricky question. I cannot say about government what government is there. But I see the positive part. When the crisis occurs the people will be shifted towards the energy transition. You know what what happened last. Last day there was a peak has increased from 256 to 258 means it is. And we are expecting the peak will go around to 65 to 70 means it is keep on increasing from the energy transition. People are all the authorities are putting up the clear picture.
The road shows which we are telling that 7.98 crores in this area as well as from it is not including the states intrastates the figures which is also there daily you are seeing that one PG Inbit Jason TBCB projects is coming. So there is no doubt they require equity and PG Inbit we see a very bright thing that once they come with the new projects they want to they surely will come out to monetize their, you know, old assets which in operations and we are ready to take down what is it is really if it is useful to us and it is, you know useful to this unit holders.
So we will surely go into that direction. So it’s a positive direction. I can see that. And we are very telling you that we will not be jumping into duels without checking the right boxes. This is very clear. And which is suitable on the basis of the operational history as well as the statutory requirements. Keeping in the mind the overall interest of the untold us.
Sunil
Thank you. One additional question is that I understand, I mean like the constraints especially given that you are part of a PSU and how the process works. But I think the only thing like what we investors need is at least an one acquisition from PG in weight of a private, you know, private asset. I think that would change a lot of sentiment. Do you see that happening like before any state government monetization one like at least by what? Even if it is a small one, a private, you know, distribution asset.
Mr.Naveen Srivastava
I cannot declare it right now but we are in touch with two or three private owners and they have shown interest in that and we are in touch with them. We are in the discussion and if it is become, you know, materialized we’ll surely come with. And I am really agree with your concern. Yes. Only going towards the public sectors of. Our, you know, private transmission agencies also. And we are working on that. We are somewhere. We are continuously in touch and surely I’m telling you that you will see results in that direction also.
Operator
Thank you. Mr. Sneel. Please rejoin the queue for more questions. Next question comes from the line of Pramod Kumar Gupta with APMG and Associates. Please go ahead.
Pramod Kumar Gupta
Good morning sir. My question is that NVID is distributing more than earnings. So capital is eroding and we are talking about the new acquisition. So what will be the whether in which we’ll issue further units or it will be in the shape of some notes.
Gaurav Malik
No, Mr. Gupta, we are not distributing more than what we are earning on the cumulative basis. If you see, we have been distributing almost what we are earning. So. And for the second part of the question, whenever we go with the acquisition or any acquisition, we have ample headroom available for debt race. As per the invitation. We can go up to 70% limited limit of for the asset under management that we hold. So it will be a huge debt headroom that we have as of now. So primarily it will be debt funded.
Whatever the new acquisitions we are going to make,
Mr.Naveen Srivastava
We are having certain cash reserves. Is approximately around 350 crores cash reserve. We are having it. I think
Gaurav Malik
This
Mr.Naveen Srivastava
Thing also.
Gaurav Malik
Yeah. And your
Mr.Naveen Srivastava
Balance sheets. And also clearly more than
Gaurav Malik
400 crores at SPV level and 224 crores at the trust level.
Mr.Naveen Srivastava
So
Gaurav Malik
There is ample cash if you subtract the 273crore distribution that was declared by the board. Still we have, you know, roughly about around 350 odd crores of cash available with us. So there is no. And there’s no question that any acquisition will be held up for want of the monies. That is out of question.
Pramod Kumar Gupta
Is less than face value.
Gaurav Malik
The voice is breaking, Mr. Gupta.
Pramod Kumar Gupta
I’m just asking. The NAV is less than the issue price of unit.
Gaurav Malik
Yeah.
Pramod Kumar Gupta
So it’s very concerned that the capital is eroding.
Gaurav Malik
So sir, NAV is a function of market valuation which is dependent upon the weighted average cost of capital used to discount the cash flows in a given annuity projects. Whenever the cash flows keep outflowing from the product, the value is bound to decrease. So your concern is well taken care of. And I think the chairman, sir, has a. You know elaborated time and again that the invit is looking for the new acquisitions. And hopefully there will be some good news to be given to the unitholders soon.
And the valuation will increase consequent upon the.
Operator
Speakers. Speakers. We cannot hear you.
Pramod Kumar Gupta
No, no,
Unidentified Participant
We are not. Can you hear us?
Pramod Kumar Gupta
Please go
Unidentified Participant
Ahead. Yes. Oh
Pramod Kumar Gupta
No. It’s okay. We
Unidentified Participant
Have replace
Operator
Mr. Gupta. Are you done with the questions? Since there is no reply from the line of Mr. Gupta, we’ll move to the next participant. A reminder. Please restrict yourself to one question. Next question comes from the line of Amit Chakravarti, an individual master. Please go ahead.
Amit Chakravarti
Hi. Thank you. Thank you for taking a call from an indigenous investor. My question is little bit different because we already talked about NMP and assets and Monetization My question is now power power and renewable power and DESS is kind of integrated Even the new government contracts also when you are making transmission line they are telling to build DSS and capacity and all that. So a power grid itself is corporation itself is bidding and in DSS area. So is there any plan for the power grid invade to also look into this area because this is going to be future either way like it or we don’t like it.
ESS and renewable power is going to be for future. So how can tab in that area.
Mr.Naveen Srivastava
Yes, I should not comment from the power grid side Let it. But of course power grid is moving in that direction. That transmission business is their core business. They are working maximum on the transmission sets. You will see TBC projects they are gaining and all and BSS they are going because recently there is a regulation from the you know which we should not comment whether whether how long they are going in that direction. But yes there is no doubt we are also evaluating the possibility in diversification in this area.
No doubt.
Operator
Thank you Mr. Chakravarti please rejoin the queue for more questions. The last question comes from the line of Bharat Lakshman and individual minister. Please go back.
Bharat Lakshman
Good morning. Yes my question is like if you see when we purchase all these assets it’s for a sale of assets but in the due course they changed to sale of revenue rates. So I think when like five quarters or six quarters before there was a discussion with the power grid they were not in a position to transfer the assets because of the revenue of rights with the 18% GST but in all these quarters we have been saying that there are 7.93 lakhs of transmission lines are going to come but eventually power grid is not interested to sell it anything to PG invert because 18% GST is already there.
Okay. When they do the sale of revenue rights I want to know why we keep saying this and second one what how this is going to be different when you say state power transmission whether that is also in the sale of revenue rights whether that also will attract 18% GST then the decision is much because each of the sponsors saying that they want to have the interest of their shareholders and PG says that we want to look into our interest of our shareholders. So there is a mismatch which I couldn’t understand.
Mr.Naveen Srivastava
Let me. I. I should not comment on behalf of our grid but that is clear cut that power grid has clearly express their preference toward the secretariation and over in with this monetization that is their you know, fundraising strategy. But it does not mean that others are also acting the same way. Because maybe power grid is having a good, you know, to go in its operation. There will be more benefit side. But it’s not necessary the others with that. Otherwise other will not be talking to us. So it is, it is not that.
And we are further moving in that action. This clearly these the roadmap which is shown by CA or by the. You know, it is really a big opportunity for ready investment for the vehicles like APG in wid to step in one by the TBC project. Secondly by the acquiring the operational assets. So I want to say that even some of the state utilities also because they have to bring out infrastructures. I’m telling you, they want that some operational assets can be given because new projects can be coming in the tbcb.
But the old which is an operation which is there equity come out. They will get some equity if they come to pgnv. So that is also area where they will like to give it to us for, you know. Therefore they are meeting their capital expenditures and fund requirements. So we. We are moving in that direction. It’s not necessary that power grid what is doing will be done by or will be, you know, for others also. So we anticipate that this progress. Of course it’s a multi stakeholder decisions and we are surely we are taking it and whoever will come out and we’ll see that if it is in the interest of unit ordinary take it up.
Unidentified Participant
Just to supplement on that we have when we are mentioning 7.93 lakh crore or whatever, it is not only about targets, not only about states. Currently the number of projects which are under construction by the private sector developers is significantly much higher than it was two years back. So that increases your expected acquisition pool going forward. So the more and more the works come up, the pool from which you can actually start discussing and choosing to pick projects increases. So that is why every time when our respected analysts and investors raise this particular question that.
Why are you mentioning this? We are mentioning this because by this kind of investments more and more the diversity of project developers also increases and the overall opportunity size also increases for us for a look at acquisitions. Thank you.
Operator
Thank you ladies and gentlemen. That was the last question for today. We have reached the end of question and answer session. I now hand the conference over to the management for closing comments.
Mr.Naveen Srivastava
Thank you. Thank you very much Nidhi and your team for organizing this call. Thank you every investor, everyone for their time and participation. We truly value your continued engagement in with the Powergate and look forward to interact with you in the future call as well as a PG in. We remain committed to deliver consistent, stable and visible returns to all our unitholders. We sincerely appreciate your continuous trust and support. Thank you very much.
Operator
Thank you. On behalf of ICICI securities, that concludes this conference. Thank you for joining us. You may now disconnect your lines.