SJVN Limited (NSE: SJVN) Q3 2025 Earnings Call dated Feb. 14, 2025
Corporate Participants:
Raj Kumar Chaudhary — Chairman and Managing Director
Sushil Sharma — Director of Projects
Rajendra Prasad Goyal — Director of Finance
Analysts:
Rupesh Sankhe — Call Moderator
Mohit Kumar — Analyst
Paras Chheda — Analyst
Ragini Pande — Analyst
Mohit Surana — Analyst
Vipul Kumar — Analyst
Mahesh Patil — Analyst
Aniruddha — Analyst
Marshal — Analyst
Presentation:
Operator
Ladies and gentlemen, good day and welcome to the SJVN Limited Q3 FY ’25 Earnings Conference Call, hosted by Elara Securities Private Limited. As a reminder, all participant lines will be in 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 zero on your touchstone phone. Please note that this conference is being recorded.
I now hand the conference over to Mr Rupesh Sanke from Elara Securities Private Limited. Thank you, and over to you, sir.
Rupesh Sankhe — Call Moderator
Yeah. Good afternoon, everyone. On behalf of Elara Securities, we welcome you all for the Q3 FY ’25 conference call of HIVL. I take this opportunity to welcome the management of represented by Mr, sir, Chairman and Managing Director; Mr Sushil Sharma, Director of Projects; and Mr RP Goyal, Director of Finance. So 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 Arti sir for opening remarks. Over to you, sir you.
Operator
Sir, your line has been unmuted. Please proceed.
Raj Kumar Chaudhary — Chairman and Managing Director
Okay. Thank you. Thank you very much. A very good afternoon to all of you. I am accompanied by our Director of Finance, Rajand Prasad, Mr Sarma, Director of Projects. Extremely happy to share some of major developments in Q3 of financial year 2024-’25. As we all know, we recently commissioned the 90 megawatt on floating solar power project on 8th August 2024 in the estate of Madhya Pradesh in Onkar.
We are pleased to inform that the full capacity of 90 megawatt floating solar project has been declared as commercial operational with effect from 30th October 2024. The project is located in Onkar Resur floating solar park and generate 196 million unit of energy annually. An agreement for selling the power has already been signed with Ultra Mega Solar Limited and MP Power Management Company Limited. Further, consequent upon successful commissioning of Ragnesda solar power project 100 megawatt, the commercial operational operation date COD for the balanced 42 megawatt out-of-the 100 megawatt capacity was declared in the 3rd-quarter of current financial year-on 12 October 2024. The project was commissioned in the previous financial year in the estate of Gujarat with the capacity to produce 252 million units of energy per annum. The power generated from this solar project is being sold to Gujarat Urja Bikas Nigam Limited. With these additions in operating assets, total installed capacity of SJBN now stands at 2,466.5 megawatt.
One of the major developments in this quarter is the signing of an MOU with the government of Bihar on 31st December 2024 for development of 1,000 megawatt Durgawathi pumped storage plant in Bihar. Proposed on the Durgawathi River in Kamour district, the Hadda Durgawathi PSP will have an installed capacity of 1,000 megawatt. It is expected to generate a daily peak energy of 6.3 million to 5 million units and an annual peak energy of 2,308.65 million unit. The project cost is estimated at INR5,663 crores with a levelized tariff of INR9.39 per kilowatt-hour.
Another important development is the MOU signed with the Energy Department, Government of Rajasthan on 20th November 2024 for the development of renewable energy in the state. Under this partnership, will develop 5 gigawatt pump destorage projects and 2 gigawatt floating solar projects in Rajasthan. Regarding the progress of our projects, we have achieved several major milestones in the 3rd-quarter.
The boiler light up for Unit 1 of thermal power project, which is having a capacity of 1,320 megawatt of two units, 660 megawatt each was successfully achieved on 2nd October 2024. The boiler light-up for Unit 1 marks a significant milestone as it is the most crucial step toward unit synchronization and subsequently the commercial operation of the unit. The project of this 1,320 megawatt will generate 9,828 million unit of energy with 85% of this power being utilized in the estate of Bihar.
For the Arun III hydroelectric project, the barrel concreting for Unit 2 commenced and hydro taste of the spiral for Unit-3 was successfully completed. As far as our solar power projects are concerned, the erection of solar PV modules for the solar power project of capacity 1,000 megawatt has commenced and 137 megawatt out of total 1,000 megawatt has been installed at the site. We are also excited to highlight our power generation achievement for this financial year. Our prestigious 1,500 megawatt Jakari hydropower Station achieved 6,830.242 million units by the 3rd-quarter of financial year 2024 ’25 compared to 5,731.078 million units by the 3rd-quarter of financial year 2023-’24.
Similarly, the Rampur Hydro power stations has achieved 1,905.059 million units by the 3rd-quarter of financial year 2024-’25 compared to 1,612.045 million units by the same-period in financial year 2023-’24. Furthermore, all three of our hydropower plants, Napa Hydropower Station, Rampur Hydropower Station and Natwar Modi Hydropower Station have met their MOU targets for this financial year ahead of the end-of-the financial year.
Overall, from all our plants, we have achieved 10,084 million unit as of now compared to 7,987 million unit, which is an excess generation of 2097 million units, which is 26.3% 0.3% ahead more compared to the last year’s generation. To give you a brief overview of our projects, as of now, 12 projects with a combined capacity of 2,466.5 megawatt and two transmission lines are operational. We are constructing four hydro projects totaling 1,558 megawatts, one thermal project of 1,320 megawatt and 12 solar projects with a total capacity of 2,058 megawatts.
So under-construction portfolio of the company is 4,936 megawatt. In the recent past, the Government of India launched the PM move to Josna, which aims to provide free electricity to one crore households in India. We are pleased to share that SGBN has been allotted three states for this scheme, Himachal Pradesh, Punjab and Arnachal Pradesh. Has also been assigned the responsibility for installing rooftop solar systems on government buildings with 18 ministries allocated to. The process of impedellement of vendors for government buildings completed and signing of MOU with respective estates and ministry is in-process.
You may also be aware that SABN has been listed as one of the Renewable Energy Implementing Agency, REIA by the Ministry of New and Renewable Energy MNRE to help meet the 500 gigawatt mission by 2030. In financial year ’24, ’25, we have floated tenders for 7.5 gigawatt against a target of 10.8 gigawatt. And overall, SGBN has achieved an awarded capacity of 2.4 gigawatt during this financial year. I am also pleased to share that was recognized as the first runner-up in the SHRM Award for excellence in managing workforce in the public sector enterprises category during the 13th SHRM India Annual Conference 2024 held in New Delhi on 18th October 2024.
I am also pleased to inform you that SJVN assigned the task of BIA, two-three companies, NTPC, NHPC and SJBN have assigned the target of implementation of battery energy storage system. So SGBN has been given the target of installation of 1,500 megawatt-hour and SGBN is working on this. We will install 1,500 megawatt-hour edge and the target is given by the MNRE and Ministry of Power. I would like to reiterate that SABN is progressing towards achieving our mission of installing a 25,000 megawatt portfolio in operation by 2030 and 50,000 megawatt by 2040.
Thank you very much. Thanks a lot. Over to you.
Questions and Answers:
Operator
Sir, should we begin the question-and-answer session thank you very much. We will now begin the question-and-answer session. Anyone who wishes to ask a question may press star and one on their touchstone 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. Ladies and gentlemen, we will wait for a moment while the question queue assembles thank you. The first question is from the line of Mohit Kumar from ICICI Securities. Please go-ahead.
Mohit Kumar
Hi, thanks for the opportunity, sir. Sir, first question is the total renewables portfolio which you had won, I think where you participated and one is around 7 gigawatt, right? While you just mentioned that the under-construction portfolio is 2.2 — 2.2 gigawatt. So where the gap is that there is a gap in signing the PPA? Is the PPA signing getting delayed?
Raj Kumar Chaudhary
Thank you. Thanks for your question. Yes, we have already received the tenders and the gap is because of the PSA, power sale agreement and signing of PPA. So once we tender for as REIA, then we approach various discoms. And once the power sale agreement is signed with the interested discom, then we sign the PPA power purchase agreement with the developer. So as the PSA is not realized, so therefore, we have not signed the PPA and has not given go-ahead to the developer for installation of the plant. Thank you.
Mohit Kumar
Sir, in your opinion, of course, it’s a large gap. Do you think the most of the PP will get signed in the next coming month or do you think there could be further delay?
Raj Kumar Chaudhary
But yes, we have approached to various discoms. And recently, there is a meeting conducted by Ministry of Power and MNRE also. And now MNRE is also going to conduct a meeting with the various estate utilities and so that MNRA will embrace the state utilities to sign the PSA. And once the PSAs are signed, then certainly will immediately sign the PPA with the developers. So we are expecting that the things will improve within the next — within two months.
Mohit Kumar
My second question is, when do you sign, when do you expect these buxer to get buxer to get commissioned? And the related question is when do you expect the Nepal power plant to get commissioned?
Raj Kumar Chaudhary
Which power plant
Mohit Kumar
Nepal? Nepal?
Raj Kumar Chaudhary
Arun? Yeah, Arun. Yeah, Arun 3, 900 megawatt, it is under-construction and powerhouse and the water conductor system are moving very nicely and we are on-time at these structures. But unfortunately at site, we are facing certain geological challenges. And because of that geological challenges, the commissioning is expected to be — get to get delayed.
And during the last quarter of the financial year ’27, we will commission the III
Mohit Kumar
And sir, and the boxes, what is the timeline?
Raj Kumar Chaudhary
Time-line as of now, December 2027, we are targeting. Sorry,. Is a around 3 I was telling., just May, May month, next within two, three months, we are going to commission first unit, COD. 660 megawatt first unit, we are going to commission during the month of May. COD during the month of May.
Mohit Kumar
In the second one?
Raj Kumar Chaudhary
Second one, it will take another four months,
Mohit Kumar
Which I understood. Last question on my side.
Raj Kumar Chaudhary
During this year only the entire capacity of, 13 20 megawatt, we are going to
Mohit Kumar
Understood, sir. Last question on my side, sir, on the PSP portfolio, are we looking to award some tender in this next fiscal? Are you looking to award some start construction on the PSPs?
Raj Kumar Chaudhary
On PSP, the first activity is preparation of pre-figibility report. So — and thereafter DPR. And so we are in the process of preparation of PFR for 1,200 megawatt and 1,000 megawatt — 2,200 megawatt and 1,000 megawatt. So two projects. And thereafter, we will start preparation of DPR. Okay. DPR is under preparation for 2,400 megawatt, okay. So once DPR is prepared and cleared, it will take another four years for the construction of PompJ Storage plants.
Mohit Kumar
Understood, sir. Thank you. And all the best, sir. Thank you.
Raj Kumar Chaudhary
Thank you.
Mohit Kumar
Thank you. The next question is from the line of Paris Chheda from Purple One Vertex Ventures LLP. Please go-ahead.
Paras Chheda
Yes, sir. Sir, first of all, congratulations for a good set of results. I just wanted to know, sir, what kind of capacity is likely to be added? I mean in terms of total capacity for FY ’25 ’26 and how much capacity was added in last financial year broadly? That’s my first question, sir.
Raj Kumar Chaudhary
Yeah. So I have our Director projects, Mr Sushil Sarma. So I hand over the mic to Mr Sushil Sarma to answer this question.
Sushil Sharma
And sir, this our CMD sir has already told you that the the two units of 1,320 megawatt will be commissioned in during this FY ’25 ’26, then of again this solar capacity will be able to add another 200 or 250 megawatts.
Paras Chheda
Okay. So about 1,500 odd megawatts will be added this year?
Raj Kumar Chaudhary
Yes.
Sushil Sharma
Yes, yes, yes.
Paras Chheda
And this 200-odd capacity, when will that be added, sir?
Sushil Sharma
The work is going on the — maybe in the third, 3rd-quarter, we will be able to add this much capacity right
Paras Chheda
3rd-quarter of FY ’26.
Raj Kumar Chaudhary
Apart from is is also.
Sushil Sharma
Beacon is also 1,000 megawatt. We are extremely hopeful that once the panels are supplied, then we will also commission in the 3rd-quarter of this ’25 ’26.
Mohit Kumar
So even if not 3rd-quarter, 4th-quarter also, you are talking about 2,500 odd capacity that can be added this year.
Sushil Sharma
Yes. Yes.
Mohit Kumar
So nearly the capacity can double in FY ’26 in
Sushil Sharma
FY ’26.
Paras Chheda
Okay. That is good to hear, sir, because I mean the interest cost is already reflecting now additionally. So in terms of project execution, I think that’s a critical one. And secondly, sir, my other question was, can you know, there were talks about JV and green energy being listed and demerged. So is there a status on that, sir?
Sushil Sharma
Yeah. Just this listing we are planning and we are just taking the — this — we are weighing all the options. Maybe in the 3rd quarter we will be able to this issue will try to list our listing in 3rd or 4th quarter
Paras Chheda
Of FY ’26.
Sushil Sharma
Yes, 25, ’26, yes.
Paras Chheda
Okay. So about a year down the line. And for valuation, it is still time.
Sushil Sharma
Just assistance still time.
Paras Chheda
Okay. Thank you, sir. I’ll just come back-in the queue.
Operator
Thank you. The next question is from the line of Pande from Elara Capital. Please go-ahead.
Ragini Pande
Yeah. Sir, what was the reason of increase in interest expenses? It has gone up significantly. Hello.
Raj Kumar Chaudhary
Hello. Yeah. Hello. Hello. Hello. Am I audible?
Ragini Pande
Yes, sir.
Raj Kumar Chaudhary
So as you see that we are in a growth phase and for that we are borrowing capital for our capex. And as you might have heard just now that we are in the process of commissioning roughly 2 to 2.5 gigawatt of capacity in FY ’26. So most of the capital is being infuge under — in under-construction projects. So that’s why the interest — interest-rate is going up temporarily till FY ’26. So once the plant will be commissioned, then again this situation will improve.
Ragini Pande
And sir, the same question for the depreciation expense as well, what was the reason for that?
Rajendra Prasad Goyal
I’m, Director of Finance. Since we have commissioned our network during the 3rd-quarter of last FY. So full-year depression — fully — nine months depression has been charged in this current financial year. That’s why depression has increased. And the similar reasons are for the finance cost also due to commissioning of net, there is increase in finance cost. Furthermore, we have done monetization of — securitization of our return-on-equity as per the governor of India instructions. That’s why finance cost has increased in the current financial year and this this money we have deployed in our renewable energy projects.
Ragini Pande
And can you give the breakup for the incentive income this quarter and the last quarter
Rajendra Prasad Goyal
68.49 crores about incentives.
Ragini Pande
Yeah, incentive income.
Rajendra Prasad Goyal
For Q3 incentive is INR68.49 crore and during last year, similar quarter, it was INR51.18 crores.
Ragini Pande
Okay. And I don’t know whether I’ve missed this, but what was the capacity addition target for FY ’26 and ’27? And it would be great if you could give a breakup between the renewable and the hydro capacity.
Raj Kumar Chaudhary
Okay.
Operator
So your line went on-mute.
Raj Kumar Chaudhary
So we would be able to add roughly around 1.5 gigawatt of solar in FY ’26. And thermal side, we would be adding this 1.3 gigawatt of thermal. These are — so if you put together, it is around say roughly 3 gigawatt of capacity which company is going to add-in FY ’26
Ragini Pande
Okay. Okay. And any guidance for ’27?
Raj Kumar Chaudhary
So ’27, definitely, as you know that we have a large portfolio where again in ’27, we would be adding around 3, so 27 28 that is. So ’27, we will be adding another 1.5 gigawatt of project from our renewable portfolio.
Ragini Pande
Okay. Thank you, sir. That’s all from.
Raj Kumar Chaudhary
Thank you, sir.
Operator
Thank you. The next question is from the line of Mohit from Monarch Networth Capital Limited. Please go-ahead.
Mohit Surana
Sir, thank you for the opportunity. Sir, one question is our target for SI,
Operator
Sir. I would request you to please use your handset.
Mohit Surana
Am I audible now?
Raj Kumar Chaudhary
Yeah.
Operator
Yes, sir.
Mohit Surana
Perfect. Sir, my question is for FY ’26, SGVN initially had a target of achieving around 12 gigawatt. And by FY ’30, we are aiming for 25 gigawatt. Currently, we have under-construction of around 5 gigawatt ballpark number of ballpark capacity that is under-construction. And I just want to understand, how practical should we be in terms of estimating what will be the likely capacity by say FY ’27, ’28 and FY ’30? Because I think 25 gigawatt looks and may not be achievable considering the kind of pipeline we have.
Sushil Sharma
So you have to understand one thing here that as on-date, we stand at 2.5 gigawatt and another roughly 3 gigawatt we are adding in FY ’26. Our total portfolio on the renewable side where you understand we can add capacity in the shortest pan of time from 18 months-to 24 months and we have a portfolio of roughly 7.2 gigawatts.
So if we take our renewable portfolio, hydro side, you have heard about numbers and a lot of work-in progress. Sir has just shared that we have signed MOUs and survey investigation and DPR preparation of solar as well as the pump storage and the hydro projects are in-process. So as of now, we are doubling our capacity in FY ’26 and every year we are going to — by FY ’26, we are going to add, say, roughly around 3 gigawatt of capacity every year,.
And Arunachal, we have roughly 5 gigawatt of a portfolio where our — we are in an advanced-stage will commence construction in the Italian. This is the largest hydro project of India and that will come somewhere around by FY 30 or 31. So we are still quite optimistic to achieve our target of this 25 gigawatt by 2030.
Mohit Surana
In understood, sir. Sir, when you say 3 gigawatt per year, that is inclusive of both hydro and solar or is it?
Sushil Sharma
It is inclusive of hydro and solar and maximum capacity like 25 gigawatt mix wherein we’ll be adding roughly 16 gigawatt from the renewable side, solar and wind and the rest of it around 8 gigawatt will come from the hydro side and a balance for PSP and other thermal.
Mohit Surana
Understood, sir. Understood. So can you help me with the regulated equity for the company currently and for next year?
Sushil Sharma
So we just send a mail we’ll share through mail exact numbers of regulated equity.
Mohit Surana
Sure, sir. We’ll do. Thank you so much. So that is all from that.
Operator
Thank you. The next question is from the line of Vipul Kumar from Sumangal Investments. Please go-ahead.
Vipul Kumar
Hi, sir. Thanks for the opportunity. So three gigawatt will be added next year. So what should be the depreciation run-rate annually for those projects we should consider?
Sushil Sharma
Exact numbers we don’t have as of now, what would be the depreciation for the upcoming commission projects? So we’ll revert back through.
Vipul Kumar
So why don’t you put up a detailed presentation, you are implementing so many projects sir. So likely completion and all those shares, your peers are putting detailed presentation in one of the con-calls last year also I had suggested this. This has become very confusing for investors how to
Sushil Sharma
We, we, we understand and definitely we are going to do the investor conference. There will share the detailed numbers. As you said,
Vipul Kumar
No, no, but before you do investor conference, at least you could put up a presentation where you can share the detailed status of each project which you are implementing as today and which are the projects likely to be commissioned year-wise, that is not a very big deal, sir. So please don’t take it as a. This is our suggestion, sir.,
Sushil Sharma
Most welcome your suggestion. Most of the investors goes available on our website. However, as you said in the presentation form, we will share with the investors. Thank you for your valuable suggestion.
Vipul Kumar
And sir, lastly, in opening remarks, CMD, sir said that we have signed a memorandum with Bihar government with tariff of INR9. Have I heard it correctly?
Sushil Sharma
No, that tariff number,
Raj Kumar Chaudhary
Yeah.
Sushil Sharma
Tariff number was not discussed.
Raj Kumar Chaudhary
Yes, I just discussed storage.
Sushil Sharma
It is a pump storage project. So tariff for pump project you understand is roughly in the range of INR8.5.
Vipul Kumar
Yeah. Okay. Okay. Thank you, sir and all the best.
Sushil Sharma
Thank you. Thank you.
Operator
Thank you. The next question is from the line of Rupesh Sanke from Elara Securities Private Limited. Please go-ahead.
Rupesh Sankhe
Yeah, hello, sir. Sir, this quarter we have seen very good incentive income. Even surcharge income has also gone up coupled with the higher PLF. So the PBT growth was not that high. So is it because of higher financing costs where this is kind of under-recovery?
Rajendra Prasad Goyal
Yes, yes, it is due to cost you are right, it was due to a higher finance cost already
Rupesh Sankhe
Okay. So then, sir, how we are placed in terms of foreign currency exposure, sir?
Rajendra Prasad Goyal
Can you repeat your question?
Rupesh Sankhe
Foreign currency exposure, sir foreign currency.
Rajendra Prasad Goyal
Yeah. So foreign as if now we have borrowing in USD and JPY, we have outstanding of roughly INR3,400 crores in the USD and around INR1,500 crore in JPY, that’s the our exposure as on-date.
Rupesh Sankhe
Yeah, thank you.
Operator
Thank you. The next question is from the line of Mahesh from ICICI Securities. Please go-ahead.
Mahesh Patil
Yeah. Hi, sir. See this Arun, the project that you mentioned largest project, 5 gigawatt you mentioned, right?
Sushil Sharma
These are the capacity — total capacity of 5 gigawatt in Arunachal, which consists of out of five projects.
Mahesh Patil
Okay. And these are expected by FY 30, 31, right?
Sushil Sharma
FY 30, 31, we would start commissioning these projects and the biggest one is megawatts.
Mahesh Patil
Okay. And sir, for these projects, has the contracts been funded the EPC equipment contracts.
Sushil Sharma
We’re in the process of finalizing the packages and getting the approvals. So we would be able to award these projects in FY ’26, ’26 may be Q3 or Q4.
Mahesh Patil
Okay. The tenders are floated.
Sushil Sharma
No, not floated yet. Tenders, we will be floating for lower which project we have in Nepal, 6, 6, 9 megawatt for that tenders has already been floated and we would be in the process of awarding the contract for 6, 6 nagawatt hydro project in Nepal.
Mahesh Patil
For these projects this high gigawatt in organization or when can we expect the tenders to be floating?
Sushil Sharma
Tenders would be — we will come out with the tenders in FY ’26 itself. So as I said that we would be targeting to award at least Italian first, the largest hydro project in FY ’26.
Mahesh Patil
Okay, sir. And sir, another question is on the RE portfolio. Out of this 7.2 gigawatt for how much capacity do we have the PPA currently?
Sushil Sharma
So as far as, 100% capacity is PPA bagged in our RE project and we have a very good tariff number also roughly 2.8% the average tariff for this project, so our RE portfolio.
Mahesh Patil
So entire 7.2 gigawatt has PPA?
Sushil Sharma
Yes, under 7.2 gigawatt RPA.
Mahesh Patil
Okay. But you were mentioning something the challenge gets confirmed.
Sushil Sharma
Was regarding RIA vertical. The earlier discussion was regarding RIA vertical. So we have two verticals. One is we are working as a generator. There we go 7.2 gigawatts and RIA we work
Mahesh Patil
I mean to I mean to ask about the RIA vertical. How many PPAs have we signed against the tenders total?
Sushil Sharma
Yeah. So as shared earlier that our tout of 2.5 — 2.4 gigawatt we awarded, we have not able to close the PPAs and PSAs for that. For the last year and awarded project, we have already closed the PP and PSAs of roughly 3 gigawatt.
Mahesh Patil
Okay. Okay, sir. Thank you. Thank you so much.
Sushil Sharma
Thank you.
Operator
Thank you. The next question is from the line of Anirudta, who is an Individual Investor. Please go-ahead.
Aniruddha
Hello, sir. Regarding the projects for this current financial year, like ’24-’25, we were supposed to add like around 2,000 megawatt. But right now the excluding the Omkar, we are not able to add any — commission any project. So what was the reason for the dealing?
Sushil Sharma
As said earlier that we face some headwinds, especially in our hydro project, Arun III and, both the project was slated to be commissioned in FY ’25. And due to the geological surprises in Arun 3 and the COVID and all related issues in Baksar has pushed us back by a year or year and a half for Aruund 3 and by year in Baksar. So that is the main reason.
Aniruddha
No, no, not Arunch your book, sir. I’m asking about the solar project like
Sushil Sharma
So solar project, the capacity was supposed to be added from commissioning of Bika Nair. And Bika Nair, as EPC was awarded to Tatas and their factory, they could not commence the production of modules in time. So it’s an issue, industry-wise issue they — it says under CPSU scheme and Indian modules has to be installed this year. So that is the reason that we are not able to add that capacity.
Aniruddha
No, so earlier for conference call, you mentioned that besides and our, there were other projects like Phase 13, 14, 17 and, I think if no, I’m not wrong, EBR. So these projects are delayed is my understanding correct?
Raj Kumar Chaudhary
Land issues.
Sushil Sharma
We have some land issues regarding land completion of land acquisition and those. So we are — yes, we are going to complete most of these capacities in FY ’26 in addition to. So we were hoping that we’ll commission and some smaller project and add 2 gigawatt of capacity from the renewable side. However, as 1 gigawatt and all these smaller project of 100 to 200 megawatt add-up to that 2 gigawatt capacity.
Aniruddha
Okay, sir. My second question will come is that like our earlier investor mentioned, if you can put up a presentation or some time, which mentions the project cost, capacity, tariff and ultimate commissioning there, that would be nice.
Sushil Sharma
So maybe we are — as we said earlier that, yes, we are going to do the same. Thank you for the valuable suggestion and we’ll put up this presentation for the investors.
Aniruddha
Thank you.
Operator
Thank you. The next question is from the line of, who is an individual investor. Please go-ahead.
Marshal
Yeah. Yeah. My question is that like last-time we heard the news that CBI has registered a case of INR191 crore for about 10, 15 years regarding earlier for the six senior employees and some employees. Now since SJVN is undertaking huge amount of project of more than INR50,000 crore, so what — like what monitoring and internal check and balances mechanism you have put that in the procurement of so much huge amount of like capex items, there will not be any such a fraud issue.
Sushil Sharma
So you understand that we — as you haven’ limited CPSU and a regulated company, we have procedure in-place to check all such practices. However, as this is still, I don’t want you to comment upon the specific case. But we can assure you that our systems and processes are in-place and you won’t see any such cases in the future.
Marshal
I said, and second, very good. And like in the last phone call also I asked a question that like — and the Chairman gave me very good answer that because like — because the question regarding that in the O&M, lot of this, for example, amount is being charged by the service provider and majority of which are profit only because they have the minimum space of salary. So since you are going to have like 30 billion — 30 gigawatt, 20 gigawatt capacity in the next year, two, three days. So if we are continuing to do the owned outsourcing to the — to the other company, so it means that will meant the money and we will bleed the money.
So the last-time the Chairman gave a very positive answer, he said that no, like since the cost structure and the employee salary in is very-high considering it’s CPSU, so you are in like in-process to form a joint-venture with some private company. So where do you stand-on this one? Because like very soon our project will get like it will get commissioned, so O&M will be required immediately. So did you already sign some sign some JV for the O&M services with some — like with a player?
Sushil Sharma
No, no, no, no. We have our — regarding O&M, I must assure you that we are the best PSU having the yard 6. Our Jackari plant is running at 110 and the project is also 109p.
Marshal
No, no, we are not. I’m talking about solar capex. It’s not about thermal, yeah, and not the hydro.
Sushil Sharma
You’re asking about the solar.
Marshal
Yes, sir, because in solar also O&M is required.
Sushil Sharma
Yes, yes, yes, but not at that large-scale. So we are having a say statewise some O&M agency or some kind of tender. So that is our strategy that the minimum this resources, manpower and other these things should be this deployed for O&M or solar projects. Maybe, maybe, maybe, maybe we are also thinking about having is a small company that will look after all the O&M this solar projects.
Marshal
That’s what I’m saying because see, like last-time Chairman said that if you make your own company for O&M, so since it is CPSU, your salary structure cost will be very-high. So he said that you are in discussion with some private player so that who is like — who is going to own a business and then you want to make a joint-venture with the private company. So because the salary can be different than the central — central like central government scale.
So if you do that, our cost will be lower and since you are setting a gigawatt, gigawatt plant, O&M will be definitely required. But if O&M is outsourced to some third-parties or third company, like then our cost will be very-high and it will become a permanent overhead. So please, this is an area for achieving cost-efficiency. So like when can we set-up this
Sushil Sharma
So we wanted to share with you that as far as our renewable capacity, especially solar and wind is concerned, whenever we are awarding EPC for initial three years to five years, we are awarding the O&M also to the contractor. So there we are not incurring any additional cost. And as you said that, yes, deliberations are in-place and we are actively perusing the proposals to reduce the cost, especially for our O&M capacity as far as the solar and wind project is concerned also. So that is still a work-in progress.
Operator
Thank you. Ladies and gentlemen, that was the last question for today. I now hand the conference over to Mr Rupesh Sanke from Elara Securities Private Limited for closing comments.
Rupesh Sankhe
Yeah. So we thank NGF and management for giving us an opportunity to host this call and we also thank all the investors and analysts for joining this call. Thank you.
Operator
Thank you. On behalf of Elara Securities Private Limited, that concludes this conference. Thank you for joining us and you may now disconnect your lines.