SJVN Limited (NSE: SJVN) Q2 2025 Earnings Call dated Nov. 05, 2024
Corporate Participants:
Akhileshwar Singh — Director of Finance
Soumendra Das — Company Secretary and Compliance Officer
Analysts:
Rupesh Sankhe — Analyst
Marshall — Individual Investor
Vishal Periwal — Analyst
Mohit Surana — Analyst
Aniket Mittal — Analyst
Ragini Pande — Analyst
Presentation:
Operator
Ladies and gentlemen, good day, and welcome to conference call to discuss SJVN Limited Q2 FY ’25 Earnings hosted by Elara Securities Private Limited. [Operator Instructions] And there will be an opportunity for you to ask questions after the presentation concludes. [Operator Instructions]
I now hand the conference over to Mr. Rupesh Sankhe from Elara Securities Private Limited. Thank you, and over to you, sir.
Rupesh Sankhe — Analyst
Yeah, good afternoon, everyone. On behalf of Elara Securities, we welcome you all for the Q2 FY ’25 conference call of SJVN. I take this opportunity to welcome the management of SJVN, represented by A.K. Singh sir, Director of Finance; and Mr. Soumendra Das, Company Secretary. We will begin the call with a brief overview by the management, followed by Q&A session.
I will now hand over the call to Mr. A.K. Singh sir for opening remarks. Over to you, sir.
Akhileshwar Singh — Director of Finance
Yeah. Very good afternoon to all of you. I am Akhileshwar Singh, Director of Finance, SJVN. I’m extremely happy to share some of major development in quarter two for the financial year ’24, ’25. One of the major development in this quarter is that SJVN has conferred with the prestigious Navratna status by Department of Public Enterprises, Government of India. The prestigious recognition making company 25th Navratna of the India marks a momentous milestone in the SJVN 36 years journey.
Further, we have recently commissioned 90 megawatt Omkareshwar solar project on the 8th of August 2024 in the state of Madhya Pradesh with the capacity to generate 196 million unit of energy per annum. The project is situated in Omkareshwar floating solar park. Agreement for sale of power already signed with RUMSL, Rewa Ultra Mega Solar Limited and MP Power Management Company Limited.
Thus, in terms of latest addition in our operating asset 90-megawatt more power has been added, which will add approximately INR64 crore to our revenue per year. With the commissioning of this project, the total installed capacity of SJVN stands 2,466.50 million unit. Another development is that the Cabinet Committee of Economic Affairs chaired by Honorable Prime Minister of India has approved the investment of INR5,792.36 crores for 669 megawatt Lower Arun Hydroelectric Project in Nepal and the levelized tariff of the project will be INR4.99 [Phonetic] per unit on 2/8/’24.
The project will be implemented through SJVN Lower Arun Development Company Private Limited, a wholly-owned subsidiary of SJVN Incorporated in Nepal. We are excited to inform that in the month of July, Government of Mizoram has allotted Darzo Lui 2,400 megawatt pump storage project to SJVN, that will be the first pump storage project will be added in the portfolio of SJVN. Darzo Lui pump storage project with installed capacity of 2,400 megawatt is to be developed across Darzo Nallah, a tributary of the Tuipui river. MoU signed with the Government of Maharashtra on 26/9/’24 to develop a 100-megawatt pump storage project and 505 megawatt floating solar project. Investment amounting of INR48,000 crore.
On the part of progress of project, another milestone achieved with the completion of hydro test of first unit spiral casing in Arun-3 HEP. As far as our solar project is concerned, supply of solar PV model for Bikaner solar plant, 1,000 megawatt commenced in the month of July and 100% supply of models of 100 megawatt Punjab solar project has been received at site.
Also, we are happy to highlight our power generation achievement in the second quarter. Our Nathpa Jhakri power project has achieved the highest ever quarterly generation of 3,450.98 million unit second quarter surpassing previous highest record of 3,401.83 million unit quarter two in the financial year ’21-’22.
Rampur hydropower station achieved the highest ever quarterly generation of 955.66 million unit. Further, our all the three hydropower plants, that is, Nathpa Jhakri, RHPS and Naitwar Mori have achieved their highest generation in a single day ever since their commissioning. I am also happy to share some recent development in current quarter as well.
Boiler Light-Up of Unit -1 of Buxar Thermal project successfully achieved on 2nd October 2024. The Boiler Light-Up of Unit-2 marks a significant milestone as it is the most important step that paves the way of units synchronization and thereafter commercial operation of the unit. Project will generate 9,028 million unit — 9,828 million unit of energy and 85% of this power would be utilized in the state of Bihar alone. MoU signed with the HP PWD for widening of project road of Sunni Dam HEP 382-megawatt on 21/10/’24. Work includes widening of a stretch from Dhali to Khaira including construction of bridge for an estimated cost of INR70 crore.
So giving a brief of our project as on day 12 of — 12 projects of 2,467 megawatt and two transmission lines are under operation. Four hydro projects of 1,558 megawatt, one thermal project of 1,320 megawatt and 11 solar project of 1,958 megawatt are under construction.
In the recent past, Government of India has launched PM Surya Ghar Muft Bijli Yojana, which aims to provide free electricity to 1 crore households in India. We are extremely happy to share that towards this scheme, SJVN has been alloted three states, Himachal Pradesh, Punjab and Arunachal Pradesh. SJVN has also been assigned the responsibility of installation of rooftop solar system on government buildings and 18 ministries have been allocated to us in this regard.
As far as progress is concerned, process of impanelment of vendors is underway. You must also be aware that SJVN has been listed as one of the renewable energy implementing agency by government of — by Ministry of New and Renewable Energy to meet the 500 gigawatt target by 2030.
In financial year ’24-’25 for September ’24 — September ending quarter two, we are ahead of target and achieved more than 100% target as SJVN has floated tender of 7.5 gigawatt. Overall, SJVN has floated tender of 18.6 gigawatt and awarded capacity of 8.1 gigawatt till date.
I’m happy to share that SJVN comfort with the Pollution Control, Waste Management, and Recycling Excellence Award during PCWR Summit & Awards ’24 organized by Greentech Foundation at Guwahati, Assam on 27 July ’24. I once again reiterate that SJVN moving towards to achieve our vision of installing 25,000 megawatt portfolio in operation by 2030 and 50,000 megawatt by 2040.
Thanks. Now Rupesh, over to you.
Questions and Answers:
Operator
Okay. Thank you very much, sir. We will now begin the question-and-answer session. [Operator Instructions] The first question comes from the line of Marshall [Phonetic] from — an Individual Investor. Please go ahead.
Marshall
Hello. My first submission is that like in the last conference also, we had requested that while giving this notification of analyst intimation, Mr. Soumendra Das can also attach the link of the Diamond Pass link also because it’s very difficult to navigate through your website to find the link. So I’m sure that like this is a reminder and the next time, he will — Mr. Soumendra Das will make sure that he will attach this Diamond link this page also while informing about the intimation of the analyst conference like being done by all other listed companies.
Akhileshwar Singh
Okay. Noted.
Marshall
Number two, sir. Like, we didn’t find the presentation.
Akhileshwar Singh
Okay.
Marshall
So the presentation is uploaded in your SJVN website or in the BSE, NSE website?
Akhileshwar Singh
No, no, we have not uploaded the presentation.
Marshall
So this also like — because like we have made a very huge investment in the SJVN now and SJVN itself is making huge investment in gigawatt in terms of many like this power projects, so it is a humble request that please to make sure that in the next time before the analyst meeting conference call this presentation is uploaded so that it will be much easier for you people also to answer question and the lesser question will be asked because majority of the answer will be available within the PPT itself.
Akhileshwar Singh
Okay.
Marshall
Okay. And my — so my first question… [Speech Overlap]
Akhileshwar Singh
Okay. Soumendra has some questions to you.
Soumendra Das
That PPT in form, sir?
Marshall
Hello?
Soumendra Das
Sir, the results has been published in the website, sir.
Marshall
Hello?
Soumendra Das
And what sort of PPT, sir, you want?
Marshall
I’m not able to hear you, sir.
Soumendra Das
Sir, what sort of PPT, sir, you need. Accordingly, we’ll have to prepare and we’ll…
Marshall
No, no, PPT, presentation, all listed company when they are conducting this analyst conference, they always give the PPT. Presentation like — so you can see announcement of any listed company, you will find the presentation there.
Soumendra Das
Okay. Okay. Okay.
Marshall
Thank you so much. Because this is a very healthy development like this will be transparent — a lot of answer will be available there itself.
Soumendra Das
Okay. Okay. Okay.
Marshall
So in the PPT… [Speech Overlap] Yes, sir.
Soumendra Das
And next time, definitely, we will do this thing.
Marshall
Thank you, sir. So in the PPT, you can give — you can delve in detail. For example, you have under construction project, you can go one by one, okay that this project is going to commission so on, this is so and so state. So you can explain more in details because now the company has — is having 100s of projects. So it’s very much required to give the PPT, sir.
Soumendra Das
Yes, sir. Yes, sir.
Marshall
Sir, like my first question is that is like you have many projects under construction like hydro four projects, renewable 10 project and thermal one project. So can you please give us a timeline that when these projects are going to be commissioned?
Operator
Mr. Marshall, does that answer your question?
Marshall
No, no, no. I just asked the first question now.
Operator
Okay, sir.
Marshall
[Speech Overlap] So I just only…
Akhileshwar Singh
Hello?
Marshall
Yes, sir.
Akhileshwar Singh
For ’24-’25, Light-Up of Unit -1 of Buxar Thermal project 660 megawatt is expected to be commissioned by January ’25.
Marshall
Okay.
Akhileshwar Singh
Bagodara, 735 megawatt will be commissioned by December ’24.
Marshall
This is what, again, thermal or hydro?
Akhileshwar Singh
No, no. This is — today we are having only one thermal project.
Marshall
Okay, okay. Fine. Okay. No, because see, in thermal the capacity given is 1,320. So maybe Phase 1 will be 660 and when the second… [Speech Overlap]
Akhileshwar Singh
Yeah. I’m talking about the ’24-’25. I’m talking about… [Speech Overlap]
Marshall
Okay. Okay, sir. Fine, sir. Okay. Next, sir?
Akhileshwar Singh
I’m giving you the detail of 1,888 megawatt, which is expected to be commissioned by ’24-’25.
Marshall
Very good, sir.
Akhileshwar Singh
In that Buxar is 666 megawatt, the only thermal project. We are expecting by January — 1st unit by January ’25. Then solar Bagodara, 35 megawatt by December and 35 megawatt — another 35 megawatt by March ’25. Bikaner, 500 megawatt by March ’25, Bikaner solar project under CPSU. Omkareshwar, we have already commissioned. Then PSPCL Punjab, 100 megawatt, we are expected to commission by December ’24. BBMB, 18 megawatt, we are expected to commission by March ’25. GUVNL, 100 megawatt by March ’25. GUVNL [Phonetic], 260 megawatt by March ’25. And Jamui solar project, 75 megawatt by January ’25.
Marshall
Sir, like — just like a humble input. Majority of the… [Speech Overlap]
Akhileshwar Singh
We’ll share the detail.
Marshall
No. What I’m saying that like many projects are being like targeted in March ’25, so like I’m sure that like this will be commissioned within March, and it will not be further postponed to the next financial year, right?
Akhileshwar Singh
Maybe some slight changes maybe there because of the many problems during the execution stage, some might be some shortfall or some slippage will be there.
Marshall
Okay. No problem, sir. My connected to this person, sir, like now we have many projects in the — especially in the solar, so the EPC construction is being done by our own in-house EPC or are you outsourcing to the third-party for the…
Akhileshwar Singh
We’re not doing any EPC. Basically, our work is only for supervision and control, monitoring and supervision. We are outsourcing. In fact, we are awarding the contract in different forms, somewhere it is a land with everything like module or all the balance of plant, somewhere we are purchasing land and module also, and we are awarding balance of plant. But all EPC work have been awarded to contractors.
Marshall
But sir, like — here is like a major input I’m giving you, sir, here because I also come from the construction background because we have now awarded 21 gigawatt under allotment and a 5 gigawatt almost under pre-construction and like 2 gigawatt you already gone, okay. So 26 gigawatt we have. In 26 gigawatt, hopefully, I think you will be spending how much money, for example, maybe like about — you’ll be spending like more than INR10,000 crore or even much beyond that.
So what I’m saying, I think there is some scope for cost efficiency either in terms of procurement or in terms of EPC also because so many projects you are going to have, so maybe if you set up your own EPC team also, so maybe like one project they can do on the test basis and thereafter, like it’s O&M is very easy. Because I’ve also done solar project in my career. So like otherwise, if you should give this O&M to this company, any company, for example, like who is doing solar. So it means like they are making money on our behalf like at our cost.
So what I’m saying because now your scale is too big. So — and like in the in the future it will be even bigger. So it’s high time that if we start setting up we make the backward integration. Otherwise like you know this is — otherwise it’s like a good amount of cost is being debited to the project which is being paid to the contractor. So like we can have efficiency once we’ve set up like one small project, then it’s cleaning, the O&M. The word is given O&M, but it’s basically cleaning, so it’s not a rocket science.
So what I’m saying, instead of like going — yeah, instead of following only the method of just like being a supervisor, I think our cost of construction will be definitely at a higher level and our ROE and ROC will also get reduced. So it is very much required that like — that the company creates an EPC division wherein one project can be set up by ourselves. And thereafter gradually it can increase the number of projects, number one.
Definitely, O&M cost, which is going to pay for the next 25 years, can be substantially reduced by having our own, like this, O&M team, two. Number three, and now this is like a lot of companies are — a lot of companies are coming in a mega way in terms of production of all the solar module, so there is a lot of scope lies in terms of like bargain in terms of purchase. So I’m sure that like you are looking all kinds of what I’m saying this better strategy.
Operator
Mr. Marshall, sorry to interrupt, please get these — I request you to get back to the question queue for…
Marshall
They didn’t answer yet. Hello, Mr. Moderator, you are not following what I am asking. So far I gave only two inputs only. I give only… [Speech Overlap]
Akhileshwar Singh
Let me reply to you. Partly I agree with you, and we have considered — we are considering all these options, but sometimes, and why I’m telling that partly I agree with you, see, we are public sector undertaking, our manpower cost is always higher in comparison to the cost of the manpower taken by the — taken through contractor on hire basis because we have a lot of remuneration facility, which we cannot — if we are giving it to all the employees or maintenance staff, it will be more costly.
And in that case, we have plans to go — to float another company with the private sector, etc., as a joint venture so that we can have a separate manpower for that company. It is under proposal stage. But having a government company, we have to take a lot of approval. And like what you have referred like Reliance or Adani, see their management can take any decision in the favor of the company, even by violating the procedure, etc. But here, we are having a lot of checks and balances, controls. There is CAG. There is a CVC. There is a CBI. So we cannot take decision like them to go start a work or start a new venture. We have to take also approval from DIPAM and NITI Aayog for floating a company or having a joint venture with private sector. But we are examining all these aspects, and we are also trying to do it, and we will be adopting whatever possible ways are there to maximize our profit.
Operator
All right. Mr. Marshall seems to have disconnected at this moment. We will take the next question, which comes from the line of Vishal Periwal from Antique Stock Broking. Please go ahead.
Vishal Periwal
Yeah. Thanks for the opportunity. Yeah. So I have first question. In terms of addition target for FY ’25, ’26, ’27, can you just highlight like how the addition will look like?
Akhileshwar Singh
’24-’25, we are planning to have 1,800-megawatt almost in ’24-’25; plus ’25-’26, it will be 6,357 megawatt. And ’26-’27, another 3,000 megawatt will be added, plus ’27-’28, 1,700-megawatt.
Vishal Periwal
Okay. And then sir, in this year, what is the addition that we have done in the first half?
Akhileshwar Singh
In this year, we are planning to have — in fact, I have already replied Buxar, 666 megawatt, 1 unit; Bagodara, 70 megawatt; and Bikaner, 500 megawatt. Omkareshwar, already we have added. PSPCL and Punjab, 100 megawatt; plus BBNB, 1,800 megawatts, and almost 400 megawatt in — 360 megawatt in Gujarat and 75 megawatt in Bihar.
Vishal Periwal
Sir, in the first half, what is the addition that we have done, in the first half?
Akhileshwar Singh
First half additions, we have added Omkareshwar 90 megawatt.
Vishal Periwal
90 megawatt in the first half?
Akhileshwar Singh
Yeah.
Vishal Periwal
Okay. So I think on capacity addition, earlier in the quarter one, we have guided we’ll do something like 2.6-odd gigawatt in this year. So it looks like — I mean, like a couple of projects, they are moving in the renewable side… [Speech Overlap]
Akhileshwar Singh
Yeah, yeah. We are expecting 1.8 gigawatt this year.
Vishal Periwal
Okay. Got it, sir. And maybe one last thing. So, I think, addition has not been much, so what explains the rise in or the increase in the interest cost on a quarter-to-quarter basis this quarter or maybe Y-on-Y also if you can see there is an increase?
Akhileshwar Singh
In fact, the interest costs have been Naitwar Mori, that has come under operation.
Vishal Periwal
Okay. So that is the only element or any securitization-related expense that is getting booked in P&L? I mean, anything on that sort that is coming.
Akhileshwar Singh
No, I don’t think it is much — [Speech Overlap] There’s not much expense on the securitization. Only interest cost is there.
Vishal Periwal
Okay. So if one has to understand on a quarterly basis, like in this quarter, we have did roughly like [Foreign Speech] interest cost, so can this be a similar number in the quarters to come or…
Akhileshwar Singh
Yes, yes, almost it will be a similar number.
Vishal Periwal
Okay. Okay. And this, Naitwar Mori, when this was commissioned, sir?
Akhileshwar Singh
In fact, the — November ’23 it was commissioned.
Vishal Periwal
Okay, sure. Sure, sir. Maybe I’ll take it a couple of other questions offline. Yeah. That’s all from my side. Thank you.
Akhileshwar Singh
Okay.
Operator
Thank you. The next question is from the line of Mohit Surana from Monarch Networth Capital Limited. Please go ahead.
Mohit Surana
Hello, sir. Thank you for the opportunity. Just a couple of questions. One, in the report for this quarter that is published, there’s a mention of Devsari Hydroelectric Project wherein we have spent INR250 crores, and it has been put on hold. Can you please elaborate on what’s the status of this? And how — I mean, can there be a recovery of this amount?
My second question is, if you can just give me a status on the Arun-3, is there a delay? Or when can we expect the project to get commissioned?
Akhileshwar Singh
In fact, Devsari project, there is a hold by Environment Committee and by Supreme Court, but Supreme Court has stopped construction on project under Ganga Basin, but Devsari project is not listed in that list. But somehow, Government of India has not permitted as to go for the construction. But now we have filed a petition with the help of Government of India with the Supreme Court to allow us to start construction. And we are hopeful that very soon we are getting the nod of the Supreme Court to start the construction.
Mohit Surana
Understood.
Akhileshwar Singh
And Arun-3, we are expecting to commission by September ’25.
Mohit Surana
September ’25.
Akhileshwar Singh
Yeah.
Mohit Surana
Understood. Sir, just one last question. There is a small — very small amount of non-controlling interest in our results this time. Can you just give some insights on how this non-controlling interest is coming from?
Akhileshwar Singh
Well, we have formed a joint venture with the Assam government, APDCL, Assam Power Distribution Company, and 49% share — we are having 51% equity in that company and Assam — APDCL is having 49%, so that 49% share of them is non-controlling interest.
Mohit Surana
Understood. Sir, any capex guidance for the next three years on a year-wise?
Akhileshwar Singh
Capex guidance, in fact, due to delay in this Buxar project and Arun-3 and Luhri, some incidents were there. And the Bikaner also, it has — now there is a delay in module supply. So this year, capex against the INR12,000 crore, we are revising it to INR9,000 crore for the financial year ’24-’25. And next year, we are having a capex of INR12,000 crore. We have — today itself we have got the budget approved. And similar capex, INR12,000 crore, INR13,000 crore is expected during ’26-’27.
Mohit Surana
Understood, sir. Sir, in the last earnings call, you mentioned some IPO of your green energy arm. Any update on that?
Akhileshwar Singh
Yeah. We have already got the proposal approved by the Board today, and we are approaching the Ministry and DIPAM for taking approval, and we are also going to appoint bankers, [Speech Overlap] underwriters. We are in the process. And we are expecting to complete the process by March ’25.
Mohit Surana
Understood, sir. And any finalization of the amount that we are going to raise?
Akhileshwar Singh
INR1,000 crore.
Mohit Surana
Understood, sir. Got it. Thank you sir. That’s all from my side.
Akhileshwar Singh
Okay.
Operator
Thank you. The next question is from the line of Aniket Mittal from SBI Mutual Fund. Please go ahead.
Aniket Mittal
Yes, sir. Thank you for the opportunity.
Operator
Sir, please get closer to your microphone.
Aniket Mittal
Am I audible now?
Operator
Yes, sir.
Akhileshwar Singh
Yes, yes.
Aniket Mittal
Okay. Sir, just to understand on Buxar, I remember, we had certain issues on the land procurement part. Have those issues been resolved?
Akhileshwar Singh
No. Still, it is going on. But for the commissioning of the project, we have gone for the Rail Gati Shakti arrangement, and we are having some separate line at the Jalesar Railway Station. And from there, we will be transporting coal to the plant. Almost five-kilometer distance will be there, whereby road we will be transporting. And this way this will be initially operated. And with the help of the LARRA Court in Bihar, we are trying to settle the land issue, and hopefully, it is expected that it will be — they have given some higher compensation, and the farmers are interested, and it will be settled within six, seven months and then construction of the main railway line will start.
Aniket Mittal
Okay. And sir, on the water part as well, there were some issues.
Akhileshwar Singh
Water part, we have made some management with the help of the Water Resource Department of the Government of Bihar. Alternate arrangement has been made. There was some nullah coming to the — in the project area through Ganga, but we have made the alternative arrangement, and it is on the government land, so we have made all the — arrangement has been made for that. Only railway part would be crucial.
Aniket Mittal
Okay. Got it. Sir, for the first 660 megawatt, the transportation from the five-kilometer rail should be sufficient to operate that plant at optimal level. Like would coal availability be an issue through the current route itself?
Akhileshwar Singh
No, I don’t think. We have planned everything, and it will not be issue.
Aniket Mittal
But will that be a bottleneck for the second unit there?
Akhileshwar Singh
No.
Aniket Mittal
Okay. And so when do we plan to commission the second one?
Akhileshwar Singh
Second by June ’25.
Aniket Mittal
By June, okay. And the second question was, sir, you mentioned that Naitwar Mori has commissioned. And I believe this is on a merchant basis, right? There’s no… [Speech Overlap]
Akhileshwar Singh
Till now it is on merchant basis.
Aniket Mittal
Right. Sir, could you just help me understand what was the overall revenue and the realization in the EBITDA for Naitwar Mori for the first half?
Akhileshwar Singh
INR56 crore is the revenue for the first half — for the quarter — second quarter.
Aniket Mittal
Okay.
Akhileshwar Singh
So [Indecipherable] revenue for the first half. INR76 crores.
Aniket Mittal
For the first half?
Akhileshwar Singh
Yeah.
Aniket Mittal
Okay. Sir, how much units were generated in this quarter and for first half, Naitwar Mori?
Akhileshwar Singh
I think we had generated 197 million units. And we — in fact, our design energy, we have declared about 265 million units, but we are expecting to achieve more than 300 million units.
Aniket Mittal
Okay. 197 million units for the first half, right?
Akhileshwar Singh
Yeah, first half.
Aniket Mittal
Okay. Got it.
Akhileshwar Singh
But now, generation will be lesser because water is relatively low. But still it is going — showing a good sign.
Aniket Mittal
So this operates like a merchant for us.
Akhileshwar Singh
Yeah.
Aniket Mittal
Just a clarification, sir, Arun-3, has the PPA been signed?
Akhileshwar Singh
No, it has not been signed. We are again floating — planning to float a tender for Arun-3.
Aniket Mittal
Okay. Got that. Sir, just one last question on the green energy part, if you could just help me with what is the current renewable portfolio that we have? And how much renewable put solar and when do we have under construction as on date?
Akhileshwar Singh
In fact, we have 494 megawatt under operation, and under construction, we have 1,800 megawatt.
Aniket Mittal
Okay. Got that. Those were my questions.
Akhileshwar Singh
1,958 megawatts under construction.
Aniket Mittal
1,958 megawatts. Okay. And these are all…
Akhileshwar Singh
And almost 8-gigawatt project we have signed with PPA.
Aniket Mittal
Okay. Over and above this 1,958 megawatts?
Akhileshwar Singh
No, no, it includes.
Aniket Mittal
Okay. So another 6-gigawatt we have added.
Akhileshwar Singh
Yeah, another 6-gigawatt.
Aniket Mittal
Got that. Okay, sir. Those are my questions. Thank you.
Operator
Thank you. The next question is from the line of Ragini Pande from Elara Capital. Please go ahead.
Ragini Pande
Yeah. Am I audible?
Akhileshwar Singh
Yes, yes.
Ragini Pande
So sir, projects for which, sir, power purchase agreement has been signed, is there any issue in signing the power supply agreement for those projects? Are you facing any difficulty?
Akhileshwar Singh
You’re talking about our own projects or projects under the Renewable Energy Implementation Agency?
Ragini Pande
Under REIA, yeah.
Akhileshwar Singh
REIA, yes, there is some issue. There is some delay. But in fact, we have already issued the LOI for almost 8-gigawatt, but we have signed PPA for about 4-gigawatt and balance PPA are under pipeline.
Ragini Pande
Sir, I mean, is there any risk for cancellation for PPA cancellation that stands?
Akhileshwar Singh
Day by day, the prices are getting reduced. Those — there may be one or two cases of hybrid tender where the price — the tariff discovered is more. In case we are not getting PPA signed with the state, then it will be PSA signed with the state. Then maybe we may have to think of terminating the PPA.
Ragini Pande
Okay. And with respect to renewable projects… [Speech Overlap]
Akhileshwar Singh
Until now it is not — I’m not expecting because the rate is in the range of INR3.50 [Phonetic], and today — but we are — in case of tender of hybrid today, we have discovered a lowest price of INR3.19 [Phonetic]. So if I’ll be approaching any of the DISCOMs, they will pick up first INR319 price in place of INR3.50.
Ragini Pande
Okay. And with respect to renewable projects, is there any execution challenges that you are facing?
Akhileshwar Singh
In fact, some of our projects are getting delayed. One, this CPSU, Bikaner due their module supply — module — in fact, module availability is not the issue in the country, but the module with DCR, Domestic Content Requirement is the challenge, which we have awarded contract to Tata. And they have set up their plant, but the plant is yet to be stabilized. And after stabilizing, in fact, October ’24 was the last date for commissioning of the project, but we are expecting that it — by March, we’ll be commissioning 500 megawatt and other 5 megawatt may go up to June ’25.
Similarly, a few projects we have got in the solar project — solar park in Gujarat, Rajasthan, etc., where in that case, we are not getting any challenges. But the project where the land is to be arranged by us, we are facing problem in getting — land acquisition, and the projects are getting — they may sleep few months. We have faced some problem, and it is expected that the project may be delayed by a few months.
Ragini Pande
Okay. And I don’t know whether I’ve missed this, but what was the commissioning timeline for Buxar? I mean, was there a delay in Buxar as well?
Akhileshwar Singh
Buxar, we — I have already intimated, June ’25 — January ’25, we are expecting to commission first unit of 660 megawatt and another — second unit by June ’25, January first unit and June ’25 second unit.
Ragini Pande
So in the previous call, I remember, the first unit, you had said, will be commissioned in the last quarter. I mean, why is that being delayed?
Akhileshwar Singh
Yes, October up to around December, we have said.
Ragini Pande
Sir, is there a reason for delay?
Akhileshwar Singh
In fact, this rail infrastructure is getting delayed, and there are some other issues also, but almost — mainly delay is due to the rail infrastructure.
Ragini Pande
Okay. And what was the incentive income for Q2?
Akhileshwar Singh
Q2? Please repeat your question.
Ragini Pande
What is the incentive income?
Akhileshwar Singh
Incentive income, okay. INR80 crore is the incentive income in the quarter two against the INR59.44 crore in the last quarter of ’23 — quarter two.
Ragini Pande
Okay. And sir, can you tell me the absolute number for regulated equity currently and guidance for ’25-’26?
Akhileshwar Singh
Regulated equity is INR7,339 crore for operational project Nathpa Jhakri, Rampur solar, wind.
Ragini Pande
Okay. Yeah. Thank you.
Akhileshwar Singh
Okay.
Operator
Does that answer all your questions, Ragini, ma’am?
Ragini Pande
Yeah, yeah. Thank you.
Operator
Thank you. Due to time constraint, this was the last question for today’s conference call. I now hand the conference over to Mr. Rupesh Sankhe from Elara Securities Private Limited for closing comments. Over to you, sir.
Rupesh Sankhe
We thank SJVN management for giving us an opportunity to host this call, and we also thank all the investors and the analysts for joining this call.
Akhileshwar Singh
Okay. Thank you.
Operator
[Operator Closing Remarks]