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Adani Green Energy Ltd
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Ladies and gentlemen, good day, and welcome to Adani Green Energy Q4 FY '20 Earnings Conference Call hosted by Investec Capital Services. [Operator Instructions] Please note this conference is being recorded.
I now hand the conference over to Mr. [ Anuj Upadhyay ] from Investec. Thank you, and over to you, sir.
Yes. Good afternoon, everyone. On behalf of Investec Capital Services, India Private Related to welcome you all for the FY '23 conference call of Adani Green Energy. I take this opportunity to welcome the management of Adani Green Energy represented by Mr. Vneet Jaain, MD and CEO; Mr. Phuntsok Wangyal, CFO; Mr. Raj Kumar Jain, Head of Business Development; Mr. Anupam Misra, Group Head of Corporate Finance; and Mr. Viral Raval lead Investor Relations. We will begin the call with a brief overview by the management, followed by the Q&A session.
I will now hand over the call to Mr. Phuntsok Wangyal for his opening remarks. Over to you, sir.
Yes, good afternoon to all of you. At the outset, on behalf of Adani Green, thank you for all of you for joining Q4 FY '23 earnings call. So as a part of brief remarks, actually, I will touch upon 4 points: capacity growth, operational financial performance credit profile of the company as well as a brief touch upon ESG aspects.
Now first, capacity growth. On a year-on-year basis, we have operational capacity has increased from 5.4 gigawatts to 8.08 gigawatt, effectively increasing of 49%. So this effectively means we have added 2,677 megawatts of PPA capacity, why I'm highlighting PPA capacity is because in terms of actual AC capacity, our operational capacity actual increase is nearly to around 3.3 gigawatts actually. And in terms of DC capacity, this should be around 3.7 gigawatts.
Now during this financial year, we added the largest hybrid projects in India as well as in the world, 2.14 megawatt in state of Rajasthan. Apart from addition in capacity, we -- during this financial year, we also signed power purchase agreement for 450-megawatt of wind project as well as 650-megawatt of solar projects. These are with no these actively. There's also like strengthens our locked-in portfolio and also ensures that we have a firm of tech arrangement as a part of our [ blocking ] portfolio.
In terms of operational and financial performance, first, I will touch upon operational performance. Operationally, this has been a very good year. If we talk purely from a solar portfolio perspective, our solar portfolio CUF increased by 90 basis points on a year-on-year basis actually, so we have CUF of 24.7%. This is much better than what we have initially estimated actually. And this is also a reflection of improved operational performance, plant and grid availability as well as seamless integration of SB portfolio as a part of our [indiscernible]. That's on a solar side, actually.
As I talked in terms of capacity now during this year, our hybrid portfolio also made it started getting operational, okay? This was not a full year of operational for hybrid capacity. But despite that, our hybrid capacity has a very high year for around 35.5%. We expect that with full plant operationalization in this financial year, this year also will be on a higher side.
In terms of sale of energy, there has been an increase of 58%. And in terms of million units, 14,880 million units is what is being generated during the like financial year, and this is largely on account of higher operational performance as well as greenfield addition of 2.67 gigawatts, which I talked about.
Revenue from power supply also increased in line with the capacity growth and in this financial year, we have a revenue from power supply increase of 54% and this leads to INR 5,835 CR of revenue actually. And mind you, this excludes the inform revenue which we generated during the financial year. During the financial year, we generated inform revenue of around INR 1,854 CR.
From an EBITDA perspective, we have -- we retained a very high EBITDA margin of [ 91.96% ]. This has been consistently -- we have been consistently achieving this high market-leading EBITDA margin. From a cash profit perspective, it's being a very good year. Cash profit increased by 72% to INR 3,192 CR.
And what it effectively means is, as I said, our hybrid portfolio was operational only for a partial part of the year. Purely on a run rate EBITDA perspective for 8.08 gigawatts, we are today talking about a run rate EBITDA of INR 7,505 CR, which effectively means net debt to run rate EBITDA of around [ INR 5.4 crore ].
Now coming to our credit profile or credit profile of our portfolio. As you know, our portfolio, a significant large part of our portfolio, nearly 86% is from sovereign and sovereign equivalent. But even from our balanced portfolio perspective, as far as receivable position is concerned, it is completely current actually. All of our [indiscernible] rather we today are making payments on time. This is a very important development.
Secondly, 97% of our credit facilities today are rated between A to AAA [indiscernible] equivalent credit rating less scale. This clearly will show that credit profile remains very robust, smooth and in line with what has been consistently guided upon. During this financial year, what we have also achieved this -- during our last earnings call, we talked about some of the favorable orders which we have received especially for our Tamil Nadu Kamuthi project actually, during this quarter, what we have achieved this was okay, we have actually realized -- the realized receivable from Tamil Nadu actually. And this largely includes around [ INR 748 CR ]. This is a combination of revenue as well as late payment surcharge, and this will have a recurring positive impact of at least [ INR 90 crores ].
Now last but not the least, a very important element, ESG side. As you know, Adani Group is fully focused on the ESG principle actually, and our framework is in line with globally accepted principles. Apart from that, our disclosures are also in line with where is globally accepted disclosure standards like GRI standards, CDP disclosure, et cetera.
Now during Q4, a few of the notable achievements which is their first is now entire Adani Green portfolio. operating portfolio of more than 200-megawatt is today water-positive. This has been certified by DNB. Apart from this, our entire operational portfolio is today single-use plastic-free as well as zero waste to landfill and this is the third party satisfied also.
During this quarter, we also received the prestigious Platinum Environmental Award at Grow Care India environmental management 2022. What it effectively means is we have been able to maintain or rather achieved best-in-class ESG rating, whether it is from Sustained Analytics, CSRHub or DJSI S&P Global Corporate Sustainability Assessment.
Now in conclusion, I would like to thank all of our stakeholders who's contribution has been very immense in terms of achieving the operational capacity as well as the performance which we have achieved during this financial year. Thank you. That's it from our side.
Sir, should we now begin the question-and-answer session.
Yes, sure.
Ladies and gentlemen, we will now begin the question-and-answer session. [Operator Instructions]
We take our first question from the line of Mohit Kumar from ICICI Securities.
Congratulations on a very, very good year. Especially in terms of new capacity addition. So my first question is, how should we see the new addition in FY '24 and FY '25? Can you broadly lay out the CapEx required and broad funding plans? And how do you intend to raise the debt in Rupee or are we looking to raise a U.S. state loan or Rupee term loan.
Yes, sure. So in terms of our growth aspiration for this financial year, this will be broadly in line with what we have achieved in the last financial year. Irrespective of the fact that, okay, our operational portfolio has increased from 5.4 gigawatt to 8.08 gigawatt. So broadly, we'll be talking about the same number of 2.6 to 2.8 gigawatt for this financial year. This also includes a part of the capacity, which is anyway in very advanced stage of completion actually, which we believe we should be operational. We'll be during this quarter itself.
So if you exclude around 400 megawatts or 450 megawatts of such capacity, we are -- in terms of incremental capacity we are talking about between 2.2 to 2.4 gigawatt of fresh green field during this financial year. Now in terms of CapEx, actually, what it effectively means is okay, we are talking about CapEx between INR 14,000 CR to INR 14,500 CR. And this includes okay, both Solar as well as a small part of wind fleet. That is more from a CapEx perspective actually.
Now in terms of -- now in terms of financing [indiscernible] tie up, okay, as we guided in our last full quarterly call, as far as our equity is concerned, if you really will look at 8.08 gigawatts of operational portfolio. So this is throwing a reasonable amount of free cash flow as well as if you can see our cash balance, we look at the end of March and you will find that our unrestricted cash itself has no more than sufficient actually. So from an equity perspective, new issues were per se. From a debt perspective, actually, okay, as we guided in our last quarterly call, it will be a combination of domestic as well as well as construction facility under the framework agreement, which we have put in place.
We are in advanced stage of are tying up our project finance facility rather -- okay. as part of our greenfield facility, we have already received indicated in the term system. So from our perspective, actually, okay, what we are targeting is, is between the end of Q1 and mid of Q2, we should be able to achieve the financial closure for the incremental capacity, which we are talking about.
So broadly, what is the kind of debt amount will require to fund this CapEx. What is the amount you are looking to raise?
Yes. So I think usually, these projects are funded debt equity ratio between [ 70.30 to 75.25 ]. So that is the range which we are talking about. As you know, from project to project, okay, we look at that amount depends upon the cash flow pertaining to that. But between [ 70.30 to 75.25 ] is the range which will be there for the CapEx, which we have guided.
And second, is there any update on how you're thinking in terms of portfolio? Are we looking to reduce our activity in new bidding or acquisition or time being? Because we haven't seen you participating in new bids. Is there still...
I think as I think we also indicated last time in our call, we have a large pipeline of under construction projects. where we have significant flexibility in terms of their execution time line. So for the projects to be commissioned in the coming year as well as a good part of next year, we already have significant capacities tied up. So we are focusing on value accretion opportunities and will tie in those as it comes by. We are not necessarily aggressive right now in the market.
We take our next question from the line of Puneet Gulati from HSBC.
Congratulations on good execution. Can you give some sense of what kind of CapEx do you spend on the wind and the solar capacity separately for fiscal year '23.
Yes. So fiscal year '23, actually, if you see our cash flow, we have broadly talking about around INR 6,000 crores of CapEx actually. Yes. So that is what man. And in terms of the bifurcation, okay, around 20% should be on it.
No, no. This is Vneet here. See, as mentioned by Phuntsok Wangyal back, we will add around the 3 gigawatt in this financial year -- in the coming financial year. And out of the 3 gigawatt, approximately around 400-megawatt would be wind and the remaining will be solar. And in -- the earlier that Mohit asked the question about the financial year '25 also how much we are planning. So as per our presence, the planning phase, approximately 5-gigawatt we will add in the financial year '25, again there will be a combination of around 700 or 800 megawatts wind and the remaining will be solar.
Sir, for FY '23, if you can give a sense how much did your wind projects and solar project cost, if at all roughly on per gigawatt basis, et cetera.
Yes, sure. I think. So we see the FY '23, we had a lot of projects which were being built over a period of time. So -- we finished a lot of projects last year out of the 2,667 megawatts, which were under construction at the end of FY '22. That is the reason the number of INR 6,000 crores is not necessarily reflecting a 2,667 megawatt build-out. In terms of capacities, as I've spoken, as we have spoken, close to 2,000 megawatt order of hybrid projects were added last year and the balance were -- balanced some small capacity was solar and some 200 -- some [ 325 ] and 100. So close to 400 odd megawatts was finished.
Yes. But in terms of capitalization, if you can give some sense how much they really cost you on a per megawatt basis. Does it change materially from the previous years and...
I think that specific number, I think the team can come back, but the cost was around INR 70 crores on for the wind. And for solar, it was INR 4.7 crores to INR 4.8 crores per megawatt. This is inclusive of the taxes and duties, including GST and all.
Yes, understood. And what is it that you're looking right now for the current fiscal year '24?
So including the -- now this year, a lot of CapEx, which we are doing has a change in lot pass-through. So if we take out that, we are talking about since all the projects are with the trackers, the solar cost would be around INR 5 crores odd for the solar projects per megawatt. And wind, we are talking around INR 6.5 crores kind of a number.
Okay. And what kind of PLF will the solar through now with tracker.
So we are talking about the 350 CUF ranging between 33% to [ 33.5% ] kind of numbers.
Yes. So I think just to point of attention, I think, as you know, renewable projects, CUF is also dependent upon the location where you are setting up the project. CUF, which my colleague is talking about is based upon our capacity growth plan for this minute financial year, which will be towards -- most of our capacity will be set up in the state of Gujarat actually, which is basically a place where you have higher -- year. The good tracker, so as I said, between 33% and 35% actually.
Understood. And can you also talk about your thoughts on the wind PLF it was lower this year versus the previous -- how are you looking at wind projections? And is it materially impacting your existing returns on the wind projects?
So I think 2 things. One, as has been highlighted earlier, 1 big drag on our performance last year was a one-off event where 150-megawatt of operational capacity was down, and that has actually impacted the overall wind significantly. However, that has been restored and those turbines are now working fully. Second good thing which is happening is the capacities which were earlier of turbines, which were of a smaller size old technology that as a percentage of our portfolio is reducing.
Now going forward, we are implementing significant capacity in the high wind areas like Khabar and all, Khabar in Western Gujarat. So we expect CUF of our portfolio will be going forward better. We're also implementing some of these projects with the largest wind turbine in India, which is being made by Mundra Windtech. So that again will give us better economics. So we believe our wind portfolio would be giving us reasonable returns. However, we are generally very conservative, and we do an estimate for return purpose for wind generation.
Sir, you said wind turbines coming from Mundra Windtech.
Yes. That's a company which is developing 5.2-megawatt wind turbine, which is the largest wind turbine in the country. Suitical for high wind speed areas, which is what we have in Western Gujarat, specifically more in Khabar.
And this is the Adani Group company?
Yes. It's an Adani Group company.
So I think when we were talking about split between solar and wind actually, for this financial year, anyway, a large part of our wind capacity will be a solar actually. Wind will be what I can say is between 260 -- around 260-megawatt of meso wind, which will be implemented by us in this special year. But this is not a reflection of our view about the wind per se, actually, but it has more to do with how capacity-wise manager, we are implementing our portfolio.
Right, right. That's it. And lastly, while you did allude to the fact that you have a large portfolio still to implement. Would you have any thoughts on how you're looking at round-the-clock projects? I mean you have hybrid -- how difficult is it to execute around the clock projects? And what are your thoughts on recent bids?
Yes, sure. So I think this is one area of the market which has been evolving. We have been working through various industry associations on how to evolve this part of the market in India, given the fact that, yes, India would see a requirement of a more -- handling more variability of wind and solar power going forward. So this RTC-based solutions are the one which makes it happen. There are multiple ways this can be done. One, obviously, is pump Hydro and battery storage or in some cases, we can tie it up with the flexibility available within the thermal generation.
So there are those multiple ways. We are very much glued to it, and we will be tracking the market when we believe that the market has matured. Right now, I can only limitedly say that the current bids are something which is more evolution right now, not necessarily a settled way of doing this. So there is few such experiments which are on. But this is one area where which will be -- for the news industry going forward. And people who are doing pump hydro seems to be I would say, having a longer-term visibility there. So that becomes a key area to focus on.
Understood. And you also had plans for pump hydro will that come under Adani Green or Adani Enterprises?
Yes, yes, yes. So that's the reason I was mentioning that pump hydro becomes a natural play for some of these kind of things, and we are looking at pump hydro within a Adani Green.
[Operator Instructions] The next question from the line of Nikhil Nigania from Bernstein.
First follow-up question is on wind PLF. So even in Q4, the wind PLF was down at 20.4%, although as I understand the entire capacity was operational then. Any particular reason this is happening? And what would be a P90 wind PLF for the existing portfolio?
So first question first, let the second number as well. See, I think traditionally, also, if you look at India, you would see that dividend speeds are significantly lower in the last calendar quarter of the year as well as the first calendar quarter of a year because in India, winds are generally monsoon even. So except in Southern part of India, where you have written monsoon as well. But our portfolio is largely focused on Western India, which is -- which gives much more wind starting second calendar quarter of the year. Second and third quarter becomes more, I would say, important for wind.
So you would see that pattern of generation year-on-year in most of the portfolio, which are Western India base. If you have Southern India base, then you would have some pickup in November, December as well, but that's it. But this is not too far from our estimates. So I think from a P90, we have a number.
Yes. So P90 is not readily available with us okay. What we will do is we will separately connect and then share with you
Yes. appreciated. The second question I had was on inform power sales, which had been a big support to deleverage the balance sheet. But now almost the entire quantum of capacity, which was selling in the short-term market is commissioned with the last hybrid plant coming in. So what is the view on that for the coming fiscal.
So I think it's a very fair mini question. But I think during my opening remarks, what we -- what I also highlighted was -- in this minute calendar year, we will be talking about approximately around 2.8 gigawatt actually. And I said that a part of that capacity anyway is in very advanced stage of fully the implementation. So what it effectively like it gives us this, okay, there will be another set of projects on which we can leverage upon it and generate the in-firm revenue.
So in-firm revenue is basically, as we have explained in the past are in terms of preparedness of our military portfolio. So from our perspective, we have another set of portfolio, which will be available, which will be okay. half percent generating in term revenue. Now Quantum and all can vary between year-to-year, but in-firm revenue as a source of additional value creation will continue to remain as far as our portfolio is center
Yes, sure. So I think -- so this year, as we moved into this year, I think we have close to 300 and what a 400-megawatt on projects, which are nearing commissioning. So there, you will see the in-firm revenue coming in as we see -- as we move in. And as we implement this additional capacity, which Phuntsok just spoke about additional 2.2 to 2.4 gigawatt apart from this in the road megawatt, which I just mentioned, -- that will start kicking in-firm revenue for us in this year. So I think you will see in-firm revenues as we move.
Got it. Understood. One more question around the CWIP number of INR 5,291 crores on the balance sheet. Does it correspond entirely to the under construction capacity or some of it is also for the recently commissioned hybrid capacity?
No, no. I think this is entirely or under construction, the dose, which has been the commissioned hybrid has already been capitalized actually.
That's all we mean capitalized. Understood. Understood. Got it. And then my other question was around the debt situation. So the holding company bond, it was good to see the yield rates come down to 12.5% or so now. What is the plan on that going forward? And any plans of further fund raise, which was in the news?
Yes. So as far as well as the HoldCo bond is concerned, I think plan still remains in line with what we guided during the last quarterly call. our plan remains that, okay, by the end of this quarter, actually, we will come back to the market with a firm takeout plan as far as when the HoldCo bond is concerned, although as we have stressed in the past, actually, legal obligation on us to come out with refinancing plan as far as HoldCo bond is concerned, is okay, there's still some time away. But by the end of this quarter, we will be coming out with from the financing plan for HoldCo bond. Our plan still remains on track.
We take our next question from the line of Nirav Shah from GC Holdings.
Yes, Sir, a couple of questions. Vneet mentioned that FY '25, the target addition is close to 5 gigawatts. So the selected question is, so the CapEx will be close to INR 27,000 crores to INR 30,000 crores on this. and the exit EBITDA for the FY '24 and '25, what is the likely number that for the exit EBITDA intake?
Yes. So as far as FY '25 is concerned, I think the capacity which you mentioned was more in the nature of our plan right now, actually. So I think it will be okay, we will give a guidance on it as and when it is make a firm do. Now as far as FY '24 numbers are concerned. As we said, we have around 8.08 gigawatt plus okay, the incremental capacity, which we are adding. So if we're talking in terms of a run rate EBITDA, we will be reaching run rate EBITDA of around INR 10,800 crores. That is 8.08 plus the incremental capacity, which we are talking for this will be financial year.
Got it. Got it. Sir, Second question is, I mean, pertaining to the execution of well not much of addition will happen in this current financial year. I just want to understand that what percentage of our equipment sourcing for the WTG will be sourced from our group company. Have you started to it's more of -- from the ethic we will win right now on.
So I think 2 things. One, out of the capacity which we are adding. So there is a carry on, which is 300 megawatts, which is not sourced from the group companies that is -- that project is clearing commission. So that 300-megawatt wind is coming up very soon. There's another 260 megawatts, which is custom-made, I would say, custom-made machines for our side. So it is the best thing which you can have for a developer. So from that perspective, we'll be buying this 260-megawatt in this year for our project in Khabar. As per the current plan, which has some flexibility built into it. But yes, this is what we are currently in aging. .
Okay. And just last question is, so what's the HoldCo debt as of March, close to INR 5,800 crores, I mean, remaining unchanged from decibels.
No, HoldCo debt still remains at USD 1,050 million actually. This is the HoldCo bond which we issued nothing changes on that -- nothing changes.
We take the next question from the line of Girish Achhipalia from Morgan Stanley.
This is admin in nature. -- this refinancing -- sorry, repayment on FY '25, which is a slide we are talking about where we have the chart of INR 22,454 crores. Just wanted to understand that construction facility and other CV, is that already refinanced? Or how does that work? And you are just looking to refinance the HoldCo bond is it? And the RG1, I mean, how should one think about the other parts?
Yes. So I think that includes 2 elements actually. One is basically a HoldCo bond, which we metaled about. As far as RG1 is concerned, as we have given guidance in the last squarer actually, RG1, we will be like taking out through our long tenure bonds actually. Discussions are already underway. And I'm okay we have right now, as we speak, unsolicited offer equivalent to or rather more than our outstanding RG1 portfolio. But on those are still not going to be firmed up. So as we have guided actually. So we are -- once that is going to firm up, so we will be coming back for RG1 will be taken out through long term of bonds actually. Now as far as construction facilities are concerned, construction facilities, we still have some time actually FY '25, rather want to be okay, legal obligation for construction facility is not FY '25. It does look at FY '26 okay. But we have the ability to take out the construction facility earlier with that. So that is why it is being shown out here.
So most likely, that will be in FY '26. INR 10,200 crores.
Absolutely.
And sir, you said that we are adding this 3- and 5-gigawatt roughly, let's assume INR 6 crores. So the incremental borrowing because right now, if I look at your debt schedule, I think you have not spent a lot on your under-construction assets, only INR 1700 crores is on the under construction portfolio. So the incremental drawdown, how do you propose to fund it? It will be USD bonds, Rupee loans. Can you share some light on that?
Yes. So I think this question was asked in the beginning also. Yes, I can again clarify no issues on it, okay. So it will be a combination of -- it will be a combination of domestic facility because, as you know, look, we have got excellent relationship with specialized financial institution as well as the domestic market. Plus, we have a framework agreement under which our construction facility has gone up on. So this incremental facility will be a combination of both will be domestic as well as construction facility. And as I vindicated, for a part of it, we have already received the indicative term sheet actually. Anyway, by the end of this more quarter by the mid of actually, entire incremental on capacity will have financial closure in place.
But I just want to stress upon one fact actually because we actually are not in a hurry to achieve our financial closure because as our stated capital management plan says, our philosophy is, okay, we have right now in place USD 1.1 billion of non-funded facility, for solar projects, a larger part of the capacity is basically the solar module actually. And the obligation to put in place LCs performance securities for those [indiscernible] modules will come towards the end of June or beginning of July. So from that medical perspective, no immediate trend per se to achieve financial closure. But as a matter of prudent factory, we want to have financial closure as early as possible, which, as I said, by mid of Q2, entire financial closure for the entire incremental capacity will be in place. Corporate clarifies.
Sir, just one small basic question. So we've got 20.4 locked in. Incrementally from 8, you're guiding for 8, so it leads us to 16. Are we having some time or on here, like when are you actually supposed to deliver on the balanced capacities under the PPAs. Like I mean, just to understand your road map a little better.
So I think a very valid queston. And just to understand the good part about our portfolio is a large part of it. So out of the 16, if you talk about, close to 8 and something which -- where we have flexibility in terms of our time lines to commission and which is basically we won that manufacturing link tinder, which allowed us to implement that over 5 years. So we can always accelerate the execution of that if the transmission permits and in some cases, we have the flexibility with respect to transmission. So that is where it gives us significant flexibility in terms of execution.
So if we talk about 2.8 kind of an exhibition this year, then -- close to 5 or whatever number, which we do light later for the next year. we are taking at the risk out of the portfolio, and then we are left with the flexibility. So for us, FY '25, '26, we are almost tied up if we really want to finish all this portfolio. And at the same time, it gives us flexibility that if I want to win a bid which is something where I believe that is good for me or if I want to take something with a third party, I can do so within my own portfolio and flex this capacity addition as desired.
So that is where we are not necessarily concerned about the execution time line for some of these projects. And there is also some delays from the side of CTU in construction of some of the evacuation infrastructure for some of these projects, which has again given us some more flexibility in terms of the execution of these users.
we will take our next question from the line of [ Shidhant S ]. from Avendus Spark
Sir, can you hear me?
Yes. .
I basically have 2 questions. First one is, first, the amount of actions that can be expected at the country level from city plus state?
Yes, sure. So India has a target of up to 500 gigawatts of new capacity by 2030. As recently announced by the government, their expectation is that they will come up with options of close to 50 to 55 gigawatts a year. So I think if that pipeline is maintained done, there is significant capacity, which the country would add that it has sufficient room for all the players to increase their portfolio.
Sir, how realistic is that? And what can we expect for FY '24?
So it's crystal gazing if you are asking me that, but we expect that there will be heightened auction activity in the coming years. just because the -- there is some moderation in the overall equipment supply environment, which is actually -- which has actually led to some delays in options. But yes, 20, 25 gigawatt is a good conservative assumption to work with for this year.
Okay, fine. Sir, my second question is that, what are the challenges for project execution at present?
Sorry, I missed your question.
What are the challenges for project execution that we are facing currently.
So I think. If you're asking us, I think we have over a period of last 4 to 5 years have worked to resolve all the issues which are normally generator would see as key challenges, 1 being the land, second being the execution. As you can see in our presentation, we have controlled over 2 lakh acres of land. We have been able to secure connectivity. So the 2 bigger issues are solved. However, on a 3 to 6 months basis, if you look at, yes, both have to be timed in a manner whereby the evacuation system actually develops. So to that extent, plus/minus happens.
For us, in terms of equipment sourcing also over a period of last 3 to 4 years, we have worked in a manner whereby equipment sourcing has also been solved. So from Adani Green perspective, we do not see per se a big issue of most of our -- even the PPAs have been tied up. So that risk has already been taken out. So that's where it is. Now in terms of industries, the question is, yes, the biggest issue still remains planned and is acquisition.
Sir, if I have time to stir on 1 last question. Sir, according to [indiscernible], if I give us a project that's under construction, a majority of them have not signed to PPA, so PPA is an issue, please?
I'm not sure about this data seems to be dated signing has taken time. It is not as desired. We have seen sticky taking or these guys taking close to 8 months while tying up the PPAs, they have been working on resolving this. In some cases, at least, we are seeing that they are tying up the PPA they are tying up the PPAs prior to coming up with an auction by doing MOU, so this time line is reduced, but also understand the fact that as per the current guidelines, it also requires regulatory approvals, so that also takes some time. So after a bid is called 6 to 8 months' time is natural if you have an option of close to at 20, 25 gigawatt a year. So you will have a natural untied PPA of 10 to 15 gigawatt in the system at all point in time.
[Operator Instructions] We take the next question from the line of Mohit Kumar from ICICI Securities.
Sir. A few book-to question. What is the gross block at end of FY '23?
Yes. Just 1 second. Yes. So gross block at the end of FY '23 is around INR [ 52,533 crores ].
At unsecured low with the loan from the promoter entities at FY '23?
Loan form promoter entity.
On retail entity, I think the last year, the stand-alone books, there were INR 6,000 crores, which are pending from related parties, yes.
No, no, absolutely not. Mohit. As far as March end is concerned, loan from related parties INR 1,400 crores.
Is reduced to understood that. On the NOS account, there is a mentioned that you have one of the take even project, I think we have -- we have returned back and we have paid liquated MS of INR 56 crores. This potential this quarter? Or is patent the earlier quarters?
So this pertains to last quarter. So this pertains to this quarter where we were having an issue with SECI not culminated at the beginning of this quarter, I would rather say, and LD was obviously was a consequence of that issue. So that is how this has coming.
Sir, which SECI plant. Sir, SECI...
So we had a 300-megawatt PPA with SECI Tranche 5, where we were facing issues in terms of the post major issues. -- which were not settled between us and SECI and which led to termination of the PPA.
So is this project up or we have canceled this project?
No, no. So obviously, we had invested money in this case. So we have decided to keep that project alive and that has been provided -- so there is no cost to us in terms of the project cost incurred. And this would be implemented and it's under implementation as we speak. And this will be commissioned in the current financial year.
Understood, sir. Lastly, sir, what is the carbon credit spending with us, which can be sold? Last year was very heavy, very large number.
So see, the way you look at it last year, when we said that was a revenue which we quoted. So if you say pending carbon credits, we have generation of carbon credits happening every quarter based on the real generation of the electrons -- so we are expecting that we'll be able to do a similar number or slightly better than that early FY '24 as well in terms of revenue.
We'll take our next question from the line of Nikhil Nigania from Bernstein.
Just a couple of questions. One, there is another 2-gigawatt of solar manufacturing linked tender, which was won with the PPA is not signed. Any reason that it is not done?
So out of the 2 bids, which you have, 234 megawatts in the last bids of signing, we should have it signed any day as we speak. We are just waiting for the people to be there, the signatories to be available. So that will bring it down to some 1,800 megawatts. There is -- on the balance 1800 also, there is a significant developments which are there. We expect that the matter -- in terms of signing of the balance 1800 should also finish in a quarter or at best 4 to 5 months.
That's helpful. The second question I had was again regarding the debt side. Any fresh, I mean, fund raise on the debt side, which has happened post-February? And if yes, what would be the cost of borrowing for that new debt raise?
Yes. So we did actually for one of our project, okay, will we achieve the financial closure. -- entire is okay, sanction as well as entire documentation disbursement happened for -- from February actually. And from our perspective, we are not seeing any increase in interest rate. That financing was done at 9.1% actually.
We take the next question from the line of Anuj Upadhyay from Investec Capital.
Sir, if I see your presentation, and we see only around 600 megawatts of hybrid projects, which have been highlighted out there. And you mentioned in your opening remark that hybrid projects are something with the discoms are favoring as on date. So any comment on this front, sir, because of the total 20 gigawatt of capacity which we have planned over the coming 2 or 3 years, we are seeing only 600 of this among the hybrid. Is my understanding correct or some kind of mismatch out here.
Yes, you're right. To the extent that, yes, I have close to 16 gig of capacity to be, I would rather say from a PPA perspective, 12 gig of capacity to be implemented because it is already implemented. Within that, 12, I have close to 600 megawatts of hybrid 3 projects, which I need to implement, and that would get implemented over the course of next 1.5 to 2 years' time. That's the current side of hybrid capacity. -- as I mentioned earlier that we have significant flexibility in terms of being able to tie up additional capacities where I make additional delta -- so from that perspective, I have that flexibility available, the cable side provides me a significant flexibility doing done.
Now with the advent, I would say, with the more focus on the RTC kind of -- or I would say, more higher sees kind of bids, the hybrid size has to be utilized in a manner that does give you significantly additional data. So that is what we will be focused upon. And our strategy around some [ INR 5 crores ] is something which will significantly help us in doing that. So you would see some of those being crystallized as we move ahead. Right now, as I said earlier also, for this year, next year, we do not necessarily need a lot of main line streamlined plain vanilla projects, we already have them. we would add as we get more alphas. But yes, perspective, we are clearly focused on that we would be doing more variable management as our product strategy.
Okay. And lastly, sir, as we have seen recently that with around 17 to 18 gigawatt of tendering and auction, still SECI find it difficult to sign a PPA in a timely manner. Now with the [indiscernible] direction that they have to come up with close to 50 gigawatts of capacity, I mean I'm combining everybody on [indiscernible] everyone. I mean how can things would work out in terms of signing PPA? Are distant in a position to find so much of a PPA at a short period of time? Or do we see some kind of intent over there as well.
So I think there is a clear coat are MOP level, how do we resolve 2 or 3 big fundamental questions with respect to 1 -- in the traditional solar wind PPAs, how that capacity is tied up, if you look at one issue is that [indiscernible]. So our plain vanila solar bids have not necessarily got very quick PPAs because the expectations of the discoms has been to optimize that last 10, 15, 25,000. So when they see the scrap prices going up, they quickly sign the PPAs when they see prices coming down. then they don't find the already options PP, which takes time. So that is the reason. And then there is also a regulatory question, which I mentioned in my earlier answer.
So that has taken some bit of time for solar. Wind has not necessarily seen delays in signing up -- at the same time, win the per se is becoming more and more a clear in the ecosystem because of the not very good wind sites being there. So -- but wind has not seen significant delays in signing the PPA. So I think from the overall perspective, that is the reason -- from a solutions perspective, the move towards amortization or move towards RTC makes it better. And that is where, again, government is focusing and you're seeing a lot of those kind of bids coming in. It's chicken and egg story to some extent. But I think as we find more solutions around the peaks, you will see more acceptability of tenders by the discoms because they are seeing how -- what is the value add which it brings to them.
[Operator Instructions] We take a next question from the line of Apoor Bahadur from Goldman Sachs.
Sir, 2 questions. Firstly, on the inform revenue. I mean, quite frankly, it's commendable to what we have done. Just wanted to understand what we are doing with others are not able to replicate right, we don't see this informed revenue coming up with any of your competitors' numbers. Second is with the group entering on a large scale in both solar and wind manufacturing. -- will it make any sense for Adani Green to sort of start outsourcing its EPC arm as well, right, to provide service to other developers, which want to set up solar project or wind projects?
So on the first question regarding infirm power, I think that is where the expertise comes in the picture. So we look at constantly how the evacuation system is evolving both or my COD date. And how do I plan my projects in a manner whereby I'm commissioning the projects prior to their legal COD dates, which then in terms of those PPAs gives me that flexibility. So there are obviously players who in the market are struggling to put up the projects. So obviously, they will never have that infirm power kind of a gain. But based on our own capabilities, we are able to put the projects prior to their COD in most of these cases and are able to take this inform power game. So that is basically the capability coming into the picture.
The second question was with respect to outsourcing the EPC. So I think the AGEL focus and has been to actually do mainly projects for itself, it has a lot of it on its own plate. And I think to a great extent, it will be able to build its own value, but itself, then actually doing EPC and build value for others and take those obligations. So AGEL has not been involved or doesn't want to be involved into the EPC right now for any third party.
[Operator Instructions] As there is no further question from the participants. I'd now like to hand the conference back over to the management for closing comments. Over to you, sir.
So thank you. Thank you to all of you, and from our side, just actually feel free to minute approach us. We will be more than happy to address any further queries from our side. And thank you to all of you for participating in the call.
Thank you Investec for organizing this call, and thank you, Chorus for hosting the call. Please do let's place with us if you had any further question. Thank you.
Thank you very much, sir. Ladies and gentlemen, on behalf of Investec Capital Services, that concludes this conference. Thanks for joining us, and you may now disconnect your lines.