SJVN Limited has informed the Exchange about Transcript of Analysts/Institutional Investor Meet/Con. Call
CIN: L40101HP1988G01008409
SJVN/CS/93/2022-
NSE Symbol: SJVN-EQ
icfli 11s SJVN Limited (A Joint Venture of GOl & GOHP) A Mini Ratna & Schedule “A” Company
Date: 3 0/05/2022
BOLT SCRIP ID: SJVN SCRIP CODE: 533206
National Stock Exchange of India Limited Exchange Plaza Bandra Kurla Complex, Bandra East, Mumbai-40005 1, India.
BSE Limited Phiroze Jeejeebhoy Towers, Dalal Street, Mumbai 400 001, India.
SUB: Transcript of conference call held with Investors and Analysts to discuss the
financial results for the fourth quarter/year ended 3Vt March, 2022
Sir/Madam,
In compliance with regulation 30 of Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, kindly find attached herewith transcript of conference call held with Investors and Analysts on Wednesday, 25t1 May, 2022 to discuss the financial results for the fourth quarter/year ended 3 jst March, 2022.
Kindly take the above infonnation on record and oblige.
Thanking you,
Yours faithfully,
(Souas
Company Secreta,y
End: As stated above.
Registered & Corporate Office: SJVN Corporate Office Complex, Shanan, Shimla — 171006 Himachal Pradesh
T/Tel No.: 0177-2660075, #ir/ Fax: 0177-2660071,
Email: cs.sjvn@sjvn.nic.in, iiI Website:ww.sjvnnic.in
ifli
iiri-’-i, inr,frr- 171006 Iiii
“SJVN Q4 FY2022 Earnings Conference Call”
May 25, 2022
ANALYST:
MR. RUPESH SANKHE – ELARA SECURITIES
MANAGEMENT: MR. N L SHARMA – CHAIRMAN AND MANAGING
DIRECTOR – SJVN LIMITED MR. AKHILESHWAR SINGH – DIRECTOR OF FINANCE – SJVN LIMITED
Page 1 of 12
SJVN May 25 2022
Moderator:
Ladies and gentlemen, good day and welcome to SJVN Limited Q4 FY2022 Earnings
Conference Call hosted by Elara Securities Private Limited. As a reminder, all participant
lines will be in the listen-only mode and there will be an opportunity for you to ask
questions after the presentation concludes. Should you need assistance during the
conference call, please signal the operator by pressing “*” then “0” on your touchtone
phone. Please note that this conference is being recorded. I now hand the conference over to
Mr. Rupesh Sankhe from Elara Securities Private Limited. Thank you and over to you Sir!
Rupesh Sankhe:
Good afternoon, everyone. On behalf of Elara Securities, we welcome you all for the Q4
FY2022 conference call of SJVN. I take this opportunity to welcome the management of
SJVN represented by Mr. N L Sharma – Chairman & Managing Director and Mr. A K
Singh - Director Finance. We will begin the call with the brief overview by the management
followed by Q&A session. I will now hand over the call to Mr. N L Sharma for his opening
remarks. Over to you Sir!
N L Sharma:
Thank you. Good afternoon to one and all. Our Q4 results and overall FY2022 results
passed in the board meeting today. I am here to brief the audiences. Before the financial
results, I would like to share some other key points. 1000 megawatt solar power project,
which we got through competitive bidding under CPSC scheme. We awarded the contract
to Tata Solar Power Limited, and today we signed the contract agreement with the bidder,
Tata Solar Power Limited for about Rs.5500 Crore, it is for 1000 megawatt project. This
will be installed Bikaner District of Rajasthan that is one, and about a week or 10 days
back, we filed another MoU for one hydro project in Nepal that is Arun-4 project in Nepal
this is of 490 megawatt capacity. This is third project of SJVN in Nepal and we got it in the
same river basin Arun River basin. We are already executing 900 megawatt Arun-3 project
and downstream to it Arun-3, rural Arun project of 669 megawatt capacity, we have already
signed the MoU and then got the DKR approved from the government of Nepal, now this
project is under process in India and we are confident that it will be approved very shortly
in a month’s time. These were the few points to be shared with you.
Regarding the results: Results of Q4 and the financial year 2021–2022, first I will brief
about the overall yearly results of FY2021-2022. Talking about the revenue from operation
has slightly come down. It is Rs.2421.96 Crores against Rs.2490.83 Crores last year, so
there is decrease of about Rs.68.87 Crores. If you talk of the total income has fallen by
about Rs.27.95 Crores. This is Rs.2625.5 Crores against Rs.2597.59 Crores. Profit before
tax has registered a big fall. There are many reasons we can discuss during the course of
interaction or discussion. The profit before tax for the year 2021–2022 is Rs.1343 Crores
against Rs.1839 Crores, decrease of Rs.496 Crores. Then profit after tax has come down by
Page 2 of 12
SJVN May 25 2022 about Rs.655 Crores. This the profit after tax is Rs.977 Crores against Rs.16733 Crores.
This is because of the effect that last year we had got payment of net payment surcharge
from many beneficiaries. The amount totals to about Rs.580 Crores LPS last year we got
with PBT and PAT and all revenue from operations were on the higher side. The fall or
decrease in the PBT or PAT is because of that amount. Moreover, there were some
recoveries because of the CRP order for the Rampur Hydro Project the tariff order which
we got. Some of the costs were not allowed by CRP, so we have to re-imburse the money to
the DISCOM that amounts to about Rs.50 Crores and on that about Rs.20 Crores interest
totaling to Rs.78 Crores total impact on the balance sheet is also there. The networth has
listed an increase against Rs.12761 Crores last year now it has risen to Rs.13128 Crores.
Generation even at top of generation during the last year is study or examine analyzed the
generation in the four quarters. In the first quarter itself, there was a gap of around 348
million units because of the lesser discharge in the river, particularly the Sutlej River where
two flagship projects are located, but in Q2, Q3, Q4 the generation as compared to last year
quarters was on the higher side but the major impact of our 348 million units’ gaps in the
generation it was hard to recover. But because of the best operational exigency in the Q2,
Q3, Q4, there is a marginal decrease in the total generation from all the projects. Last year
the generation was 9223 million units this year, it is 9207 million units, so there is a
decrease of about 16 million units only. There are many other good points that this year in
one of our Sadla Wind Project, we crossed the figure of 100 million units. Last year, it was
73 million units. There is an increase of more than 25 million units generation. In the small
solar project Charanka in Gujarat, this year achieved the highest ever generation so far from
that project. On the other front plant availability sector of Nathpa Jhakri and Rampur hydro
power station this year we achieved the highest ever plant availability sectors so far there is
106.6 Naptha Jhakri hydro power station and 106.36% for Rampur hydro power station.
Regarding the incentives: Total incentive registered an increase over the last year total
incentives, total incentives include the effective incentive, EUI incentive then comes
standery energy also. So, total incentives are Rs.298.66 Crores; of this Rs.272.53 Crores is
an increase of Rs.26 Crores over the last year. When we talk of Q4, the generation, I was
taking that in the last three quarters, there is increase in generation, so the total generation
from all the projects there is an increase of 115 million units this year we generated 886
million against 771 million units last year, so there is an increase of 115 million units.
Because of that LPS payment, which we received last year the financial numbers in some
cases drastically low. The revenue from operations is low by Rs.142 Crores. Total income
has decreased by about Rs.692 Crores, then our profit before tax has decreased to Rs.733
Crores and profit after tax decreased to Rs.614.56 Crores. This is about the financial
numbers of the Q4 and the total financial year 2021- 2022. Thank you very much.
Page 3 of 12
Moderator:
SJVN May 25 2022 Thank you. Ladies and gentlemen, we will now begin with the question-and-answer
session.
N L Sharma:
One inclusion I would like to add. We have already paid the interim dividend of Rs.1.15.
Now, in this board meeting, the board decided to give another Rs.0.55 dividend, so total
dividend for the year will be Rs.1.70 and this is about 5.01% of the Networth and it is more
than 30% of the tax. We are complying to the government guidelines, DIPAM Guidelines
as far as the payment of dividend is concerned. Total dividend of Rs.1.70 the board has
decided and finally it will be ratified in the AGM.
Moderator:
Thank you. Our first question from the line of Mohit Kumar from DAM Capital. Please go
ahead.
Mohit Kumar:
Hi! Good evening, sir. My first question is on the revenue for operations which has declined
on, I am talking about quarterly revenues, why did it declined year-on-year from it has
declined of Rs.460 Crores odd to Rs.320 Crores odd and also the finance cost it was Rs.30
Crores odd last while this year it is Rs.80 Crores and the depreciation is also higher year-
on-year and what is this exceptional item?
N L Sharma:
Yes Mohit. Definitely revenue from operation in the quarter has declined. There is a
decrease of Rs.142 Crores, last year it was Rs.465 Crores this year is Rs.323 Crores. We
have increased generation, but decreasing because of the CRP tariff order for Rampur
project, one reason is the CRP order Rampur project.
Mohit Kumar:
That impact is Rs.80 Crores, right?
N L Sharma:
Yes, Rs.78 Crores impact is there. Last year it was Rs.104 Crores. This year though there is
increase in generation, increase in sale of power, but if you take the impact last year it was
Rs.104 Crores positive this year Rs.58 Crores impact of Rampur tariff. So, net impact, there
are some other small things, which Rs.142 Crores total negative.
Mohit Kumar:
Understood, and why the finance cost is higher in this quarter?
N L Sharma:
Finance cost is because of the rate in foreign exchange currency rates.
Mohit Kumar:
That amount must be coming in the net movement in regulatory deferral. Is that right?
N L Sharma:
Part of the amount is coming. In regulatory deferral account on world bank loans, but we
have taken ECV also for financing our solar project and upcoming project. That some part
will go to CWIC and some part will be charged to SJNL account. The break of Dollar loan;
Page 4 of 12
SJVN May 25 2022 one is from world bank for Rampur project that is one component that will go to the
deferred account, but the other ECV loan, ECV loan is in Dollar; this we are utilizing in
various other projects also. That impact of currency rate variations appropriate revenue
Rs.25 Crores this mix is difference of finance cost. The depreciation capitalisation of ERP
and all these things, so there will be increase in depreciation. Exceptional item there were
some expenses of Muzaffar Corporation line, the expenses we were making because when
Arun-3 project was taken up. Initially it was understood that the entire transmission line
was to be constructed by SJVN, but later on it was decided that SJVN will construct on the
Nepalese portion transmission and Indian portion will be erected by Power Grid. We have
made some expenses on the transmission line be it for our offices and all these things.
Writing off that expenses that is exceptional item, which is about Rs.23 Crores.
Mohit Kumar:
Understood. Sir, on the CWIP and investment book, I think CWIP is Rs.2200 Crores and
investment is Rs.4900 Crores. Can you explain the investments and CWIP and when we
expect these to get capitalized?
N L Sharma:
CWIP is mainly in Naitwar Mori Project and Arun-3 project.
Mohit Kumara:
Arun-3 is under subsidiary, right?
N L Sharma:
Under subsidiary and Solar Power Project, so, that is capital program. Naitwar Mori will
come into operation anytime in October-November this year so that will be capitalized, and
revenue will start coming. (inaudible) 18.04 will also come by the end of this year so total
received capital will be capitalized.
Mohit Kumar:
The Buxar and Nepal project?
N L Sharma:
Buxar and Nepal project, Nepal project though the completion schedule February 2025, we
are trying through acceleration commission the project by the end of 2023, so that will
come into operation. The Buxar first unit will come in June 2023 and second unit will come
in January 2024, so in the next financial year both the project will come into operation.
Mohit Kumar:
What is the status PPA for the Nepal project?
N L Sharma:
We are in discussion with many DESCOMs and through other modes. We are trying to sell
the power; some DECOMs are also in discussions with the bulk consumers also. We are
just weighing the options, which option is beneficial to us whether long-term PPA for few
DECOMs or supply to these PPA with the bulk consumer whosoever gives us the better
rate, we will go for that.
Page 5 of 12
SJVN May 25 2022
Mohit Kumar:
Understood sir. Thank you and all the best.
Moderator:
Thank you. The next question is from the line of Apurva Bahadur from Investec. Please go
ahead. The line for the current participant has dropped off. We will move on to the next
question that is from the line of Rahul Modi from ICICI Securities. Please go ahead.
Rahul Modi:
Thank you for the opportunity. I got a little confused with the numbers that you mentioned.
Sir, barring this Rs.236 Crores, which is there in terms of the exceptional items which is for
the transmission projects, so which all you mentioned something with regard to the adverse
tariff order from Rampur. Was that Rs.58 Crores or Rs.78 Crores if you could just clarify
the numbers of the one off due to tax again?
Akhileshwar Singh:
Yes Rahul. I will clarify the number. For exceptional item it is Rs.23 Crores not Rs.236
Crores and for the Rampur Tariff the impact is Rs.58 Crores re-imbursement which we
have to make to the DISCOM because we have received the payment and we have paid the
interest also. So, Rs.20 Crores is the interest and the net impact is Rs.78 Crores.
Rahul Modi:
Okay, this was fully taken in Q4?
Akhileshwar Singh:
Yes, it was fully taken in Q4.
Rahul Modi:
Okay, what is the clear positive tariff orders last year?
Akhileshwar Singh:
From the tariff came in Rs.50 Crores.
Rahul Modi:
Can you just elaborate a little more on the commissioning timeline of the CPSU that you are
talking about the 1000 megawatt and also the other project what is your targeted COD,
which you mentioned about Buxar, Naitwar Mori you mentioned the COD October 2022
and when do you expect Arun?
Akhileshwar Singh:
Yes, The commissioning schedule for solar power project this is two years’ time which we
are giving. By the April end or May 2024 will be the commissioning schedule for the CPSC
scheme 1000 megawatt project. For Buxar: Buxar, first unit of 660 megawatt capacity will
come in June 2023 and second unit will come in January 2024. In the next financial year
2023-2024, we will be commissioning that work at thermal power project. Naitwar Mori
project, we will be commissioning this year, most likely we are hopeful that by October-
November, we will commission this project. There were two components, generation
component and transmission component also we are doing at our own because with state
entity transmission, corporation or the power grid both experienced their inability so, finally
we took up this project also in our hand. Both generation and transmission component will
Page 6 of 12
SJVN May 25 2022 be completed and we will be commissioning the project by October-November this year.
Similarly, there is 75 megawatt solar power project in Uttar Pradesh that too will be
commissioned in this financial year. Arun-3 though its timeline is February 2025 as per the
project-government agreement, but we have made some calculations. If we advance the
commissioning, we will get additional time for running the project, the time construction
period for running the project is 25 years, if we commission it in advance. We will get
additional advantage, so we are trying to commission it in the next year itself, 2023 itself.
So, by December 2023, it is our effort to commission this project. This are the timelines for
these projects.
Rahul Modi:
The next two years what would be the total capex mid FY2023 and FY2024 and what
would be the equity investment in that capex?
Akhileshwar Singh:
Capex for this 2022-2023 is Rs.8000 Crores and 2023–2024 tentatively it will be Rs.10000
Crores, so total Rs.18000 Crores capex in these two years.
Rahul Modi:
Would it be including the subsidiary projects also?
Akhileshwar Singh:
Yes, total subsidiary as well as the vertical.
Rahul Modi:
Out of this Rs.18000 Crores, how much will be equity?
Akhileshwar Singh:
This year equity push is only about Rs.1000 Crores–Rs.1500 Crores in this year and next
year it will be Rs.2000 Crores to Rs. 2500 Crores. Out of this Rs.18000 we will be on four
to five project load equity.
Rahil Modi:
Perfect, sir. Thank you and all the best.
Moderator:
Thank you. The next question is from the line of Apurva Bahadur from Investec. Please go
ahead.
Apurva Bahadur:
You highlighted that you had awarded a gigawatt for the project to Tata Power Solar for
Rs.5500 Crores. Sir wanted to know what would be the loading over here and also the cost
seems a bit high, so does it involve domestic module use only?
N L Sharma:
This project first I will say that it is totally 100% module manufactured or sales
manufactured in India will be used. The first condition for this PPSC scheme project and
the total cost is Rs.5500 Crores and debt equity ratio is at 20% equity and 80% debt will be
used in this project.
Page 7 of 12
Apurva Bahadur:
SJVN May 25 2022 I understand there was a viability gap finding component as well on a tariff of Rs.2.45 for
this project. Is there any change or will be viability they are finding enough to ensure our
hurdle ways for equity RR?
N L Sharma:
Yes, this viability gap funding projects were allotted solely on the basis of the viability gear
funding whosoever takes the invest their funds. We got it at Rs.44.7 Lakh per megawatt.
We got 1000-megawatt capacity, so total VGS will be Rs.447 Crores. The return on equity
will be around 14 to 15% because we are getting cheaper funds, so IRR maybe low but in
equity IRR we are getting 14 to 15% returns.
Apurva Bahadur:
Okay, very good to hear that Sir. Also, given that generally there has been a rise in the
module cost from the commodity price side. We heard that NTPC is bit delaying, so the
capacity addition plan. Are we seeing anything in our portfolio or we expecting a delay in
the execution of solar projects?
N L Sharma:
Solar project they have given on EPC mode that the contractor is Tata Solar Power Limited.
They have sufficient capacity, inhouse capacity also net capacity got the rise in the prices of
the components also with fixed EPC cost, so I do not see any variation in it.
Apurva Bahadur:
Okay, got it. Thank you very much. On the last call, you had highlighted that we intend to
do something on the pump hydro side as well. Government is looking to order out couple of
projects. Any update over there?
N L Sharma:
Yes, Government of India identified and indicted about 10 PFC for SJVN most of the PFCs
are in Maharashtra, some in Arunachal Pradesh, in Karnataka state as well, so our technical
team visited the sites of these PFCs and we are getting some data from the concerned states
because ultimately project will be allotted by the states. When we get the documents from
the states for the allotment, thereafter we will start due diligence, preparation of the DPR;
all these things. If the projects are buyable then we will be going for the execution of the
projects. We are just in the beginning stage. Our teams visited almost all the sites and they
will submit the report and when state government allots these projects to us. In addition to
these projects, we are also having discussions with Government of Maharashtra. Other than
these identified or indicated projects, there are some other projects which we chose are
more viable, so we are in discussions with Government of Maharashtra also. If Maharashtra
allots those projects to SJVN, we are ready to take up that. That is the status.
Apurva Bahadur:
Okay, sir no targets as of now for us.
N L Sharma:
Targets will be just only when the state governments allot us the projects and we the due
diligence and some information about these projects if it is available, some pre-feasibility
Page 8 of 12
SJVN May 25 2022 report the states have conducted or their agency have conducted we will be studying those
reports and moving further.
Apurva Bahadur:
Okay, sir on the Naitwar Mori Project, you had highlighted that SJVN will do the
transmission component as well because power grid and state also refused to do it. Any
specific reason why they were not very keen on doing this pie?
N L Sharma:
Specifically, I cannot say because for three years, we were having discussions and we
moved further ahead also. The line was more than 120 kilometers long from that project
powerhouse site to Dehradun, so the state agency took some more time and there were some
other agencies involved. Finally, they expressed their inability because they were linking
other project also with this transmission line and the capacity of the transmission line was
more so, our project was of only 60 megawatt capacity. Unfortunately, other projects could
not come. Finally we thought that this line will not be viable, we were caught in dilemma
then we requested the Power Grid also because they are the expert agency across the
country, but in that short possible time they asked to express their inability that in the period
of one year we will not be able construct this line, so finally we took up this line and my
people took up the challenge and we will complete this line in less than one year. So before
the generation component our transmission line will be ready.
Apurva Bahadur:
That is very nice. Sir, I believe we will be making full 15.5% ROE over there in time?
N L Sharma:
Yes. We do.
Apurva Bahadur:
Okay, Last question from my side and that is also on the expected hydro generation this
year at your dams given the snow fall and the reservoir levels. What are you seeing, sir how
do you expect the hydro season to be this year?
N L Sharma:
This year so far as the preliminary indicators show our generation in just less than two
months is about 50% higher as compared to last year, so we expect that this monsoon
season, there is no doubt that we will meet that benchmark of generation. But post-monsoon
season what is the climatic behavior, but we are hopeful that we will cross last year
generation of 9200 million units from these existing projects.
Apurva Bahadur:
Okay, sir. Thank you so much and all the very best.
Moderator:
Thank you. The next question is from the line Mohit Kumar from DAM Capital. Please go
ahead.
Page 9 of 12
Mohit Kumar:
SJVN May 25 2022 Thanks for the opportunity once again. Sir. My first question, why cash is very high at the
end of FY2022? Is it because some cash has been taken for debt of the project?
N L Sharma:
We procured the ECBS (External Commercial Borrowings) at a very low rate. This CPSC
project, we were expecting much advance, but it took time and there is other Sunni Dam
Project the investment approval is pending with the Government of India. PIV meeting has
already taken place and recommended the investment approvals, so there is some delay
otherwise, we were expecting that Sunni Dam is to start in September 2021 and this CPSC
scheme project we could have started it in the last financial year. We tried, and we got ECB.
In end of the March, we got the last instalment of the ECB loan. That is why the cash
components with the SJVN is quite high by the end of 31st March.
Mohit Kumar:
What was the amount quantum which you drew at the end of March for this particular
ECB?
N L Sharma:
Last instalment was of Rs.750 Crores.
Mohit Kumar:
Perfect. Secondly, how much is operational renewable capacity on our balance sheet and
how much you are likely to add over two and a half year or let it three years?
N L Sharma:
As of now it is 103 megawatt and this year we expect 175 megawatt, another 70 megawatt,
two projects. 145-megawatt solar capacity we are expecting to add and hydro is also ready
for 60-megawatt addition, so total 205-megawatt capacity we will be adding this year. In
the next year 2023-2024, this 1320 megawatt Buxar, 900 megawatt Arun-3 and 1000
megawatt also we will try to bring it before March 2024, s, about 33,500 megawatt capacity
at least will be added in the financial year 2023-2024.
Mohit Kumar:
Okay, and is there any intended plan to monetize all these renewable assets or are all the
renewable assets are coming on the standalone company?
N L Sharma:
Recently, we have formed a separate 100% subsidiary of SJVN, SJVN Green Energy. The
new project we would be taking through new subsidiary. This 1000 megawatt also we will
be taking up through that new renewable subsidiary. Operational projects 103 megawatt
capacity will be with SJVN and the subsequent projects will be with SJVNGE.
Mohit Kumar:
Understood. Lastly on this pumped hydro, of course we are targeting new pump hydro. Is it
possible utilize our own existing capacity and to do some pump hydro in those capacities
and because of higher returns, is it possible?
Page 10 of 12
N L Sharma:
SJVN May 25 2022 Existing two hydro projects are the run of the river project and moreover these two projects
are operating in the tandem operations. There is only one dam, one reservoir that is very
small reservoir. We have already conducted the study, there is no possibility of pump hydro
storage project in these two projects, but we are analyzing the possibilities of pumps on the
main river and the off river also beside other states as Maharashtra, Arunachal Pradesh, and
the other state Karnataka extra where we are just exploring the possibility.
Mohit Kumar:
But still the time taken for developing a pump hydro will be similar to a regular hydro
project, right?
N L Sharma:
You know that hydro project whether it is ROR or it is storage project of the pump hydro
project they are very long gestation period. No project will come to finishing in less than
ten years; that too if the optimistic time taken less than ten years, so whatever the form of
the pump hydro project, it will take time.
Mohit Kumar:
Do you have any plan to monetize our renewable capacity at some point of time?
N L Sharma:
We are keeping our fingers crossed. We will see the opportunity. We require the funds and
we are not able to mobilize funds from other sources. We can go for monetization of the
assets and get funds for funding the new projects.
Mohit Kumar:
Understood sir. Thank you and all the best.
Moderator:
Thank you. The next question is from the line of Rupesh Sankhe. Please go ahead.
Rupesh Sankhe:
Sir, couple of questions. Firstly, we have announced Arun-4 project. Can you throw some
light on that? Secondly, recently we have signed MoU with BHEL and Ministry of
Railways, so I need some clarifications there.
N L Sharma:
Yes Rupesh, this Arun-4 project. I have been advocating the concept of then one-basin-one-
developer approach for the last four-and-a-half-year Government of Himachal first of all
understood this and allotted projects to SJVN in Chenab Basin, six projects in Chenab
Basin. Then government of Nepal, I was taking up this issue for optimization of the
reporting and faster harnessing of the hydro power potential in Nepal, so Government of
Nepal agreed to our request and agreed to our theory one-basin-one-developer allotted
projects in Arun Basin to SJVN. This is third project Arun-3 project in Arun Basin, Arun is
the river which is a tributary of Kosi which comes to India so. Arun is the main river of
Kosi River System. First, we got Arun-3 Project of 900 megawatt capacity and downstream
to Arun is Lower Arun immediately, the lower Arun project. Last year, we got the lower
Arun project in 2021 especially in ABD we got the project and we got the MoU signed in
Page 11 of 12
SJVN May 25 2022 July 2021, so that was our success of getting additional project in Arun River Basin. Further
to it I emphasize on this issue that upstream of the Arun-3, there are three projects, this is
immediately upstream of Arun-3, Arun-4 is immediately upstream of Arun-3 project it is of
490 megawatt capacity project. Government of Nepal was keen that now you should allow
do projects or construct projects in JV mode with public or private sector of Nepal, so we
agreed to it. This project Arun-4 was allotted to SJVN on MoU route basis not on
competitive bidding basis, so Nepal Electricity Authority will be JV partner with SJVN in
Nepal, but we put our conditions that SJVN will be the major shareholder in it and the
management in control will be totally with SJVN only and only then SJVN will be able to
construct the project and commission the project on time and finally they agreed to it and
MoU was signed on 16th May 2022 in the presence of both the Prime Ministers Mr. Modi
and Mr. Devba in Lumbini of that day. This is the new beginning doing project in JV mode
with full control of SJVN managemental control will be with SJVN. This is about Arun-4
project, MoU we have already signed with BHEL, with Railways also, supply of power to
Railways we are trying to supply power to the Railways, for BHEL on renewable front also,
BHEL has also networking solar modules also. If there is any scope of collaboration
between the two power sector companies, we will be exploring the possibilities for that.
Rupesh Sankhe:
So, on Railway line?
N L Sharma:
Yes, on the railway line, there is lot of land on both sides of the railway track, so we have
signed MoU with the railways. If both the companies agree we will finalize the terms and
conditions of installing solar project or solar systems there.
Rupesh Sankhe:
Okay, thank you.
Moderator:
Thank you. Ladies and gentlemen due to time constraint that was the last question. I now
hand the conference over to Mr. Rupesh Sankhe for his closing comments.
Rupesh Sankhe:
We thank Mr. N. L. Sharma for giving us an opportunity to host this call and we also thank
all the investors and the analyst for coming on this call. Good day and thank you.
N L Sharma:
Thank you Rupesh and thank you all, Mohit, Apurva, and Rahul.
Moderator:
Thank you. Ladies and gentlemen, on behalf of Elara Securities Private Limited, that
concludes this conference call. We thank you for joining us and you may now disconnect
your lines. Thank you.
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