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SJVN Ltd
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Ladies and gentlemen, good day, and welcome to the SJVN Limited Q1 FY '24 Earnings Conference Call hosted by Elara Securities Private Limited.
[Operator Instructions]
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.
Good morning, everyone. On behalf of Elara Securities, we welcome you all for the Q1 FY '24 conference call of SJVN. So I take this opportunity to welcome the management of SJVN, represented by Mr. NL Sharma, Chairman and Managing Director; Mr. Akhil Singh, Director 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. NL Sharma for his opening remarks. Over to you, sir.
Yes. Good morning, all the analysts and other associated persons present in the conference call. Let me start with the overview. Right now, our installed capacity of SJVN is 2,100 megawatts, comprising of 2 hydro projects, 2 wind projects and 4 other solar projects. And the projects under construction, we have around 16 projects under construction of the capacity 4,500 megawatts approximately.
Let me share another theme that in the coming 3 years, we have our installed capacity portfolio is going to be multiplied or increase by about 6x. We are right now 2,100 megawatt installed capacity, in the next 3 years -- in the next 1 year, we will be adding more 1,500 megawatt capacity. And next to next year, see after 1 year, the capacity addition will be around 5,200 megawatts. And in the third year, the capacity addition will be around 3,300 megawatts. So total installed capacity we will be going to add in the next 3 years, the projects which are visible, and we have already won the projects and construction is either going on or will start and projects will be completed in the next 3 years of the capacity of around 10,000 megawatts.
So our installed capacity after 3 years, will be crossing 12,000 megawatt capacity. Speaking regarding the total portfolio, we have total portfolio of 55,000 megawatt capacity. The projects which have been indicated or which we have acquired. So the projects which are visible around -- 40 projects which are visible we will be constructing what the other projects where due diligence and investigation will be conducted and the available project will be taken up.
So our target of 25 gigawatts by 2030 is rightly and quite visible. So we will definitely achieve that target of 25 gigawatts by 2030. Now I will come to the Q1 results. Q1 results are -- though are not that much encouraging because of the reason that water availability in the river, in the Satluj river particularly wherever 2 mega projects are located. In the first quarter, was not good. The reasons are many. Because in the first quarter, the discharge in the river, the generation from the water that discharge was very low. It was at one point of time are 50% as compared to last year. It increased with the incoming of the monsoon. But during the first quarter, April, May, June, the winter was very, very less.
There was very less snow fall on the hill because there was a very mild winter this year. So snow fall was very less. And just with the onset of the summer season, then the snow melts and discharge comes and the water comes in the river. So the summer was also very mild, but especially, there was no summer in the hilly regions, rightly. So the temperature in the hilly regions was very low and lesser snow melt and lesser discharge in the river.
So discharge in the river was about 30% -- 25% to 30% lesser as compared to last year. And this resulted in the lesser generation in Q1. I will give you total figure generation from all projects of SJVN. In the first quarter was 2,061 million units as compared to 2,735 million units. So there is a difference of about 674 million units, lesser generation, which is about 25% -- 35% lesser as compared to the last season. So it is reflected in the lesser sale of power also. So there was a decrease in the generation to the extent of 25%.
Resultantly, revenue from operations -- only because of the lesser generation, the revenue from generation decreased by INR 71 crores. If we -- top of -- revenue from operations last year, it was INR 1,006 crores, in the first quarter, whereas CERC INR 664 crores as compared to the last year, there is a decrease in INR 341 crores revenue from operations. So partly INR 71 crores less -- due to lesser generation and last year INR 289 crores in the quarter 1 was the areas which we got for the Rampur hydrolectic project because of the tariff revision by tariff order by CERC. So that amount was INR 289 crores. INR 71 crores was less because of the lesser generation and there is a reduction in the UI charges also, INR 19 crores, lesser UI charges, the new regime of DSM.
So total revenue decreased by INR 341 crores. It is almost 1/3 of the last year, 33%, 34% lesser as to last year. Other income slightly increased because of increased interest on deposits in the banks. So total income also decreased by 31%. Last year, it was INR 1,070 crores and this year, it is INR 738 crores. So there was a decrease of INR 332 crores.
Expenses -- overall expenses also decreased. There is a decrease of about INR 62 crores. Last year, total expenses were INR 420 crores and this year INR 358 crores. Resultantly, profit before tax decreased by 41%. It is INR 380 crore this year as compared to INR 350 crores last year.
PAT. PAT decreased by about 55%. Last year, it was INR 607 crores, and this year is INR 270 crores. Earnings per share also decreased by 86%. In the first quarter is INR 0.69, that's INR 0.69 as compared to INR 1.45 last year. Net worth increased by 102.6%. It increase from INR 13,735 crores to INR 14,091 crores this year. Book value also increased. Generation, I have also already explained that generation decreased by what 25% in all Nathpa Jhakri, Rampur both regions, both the projects, generation decrease. Whereas in case of wind and solar, generation also decreased.
Plant availability factor is for Rampur and Nathpa Jhakri project is, by and large, same. We are operating these projects at the maximum load, that is 110%. So we are running our machines on full load. Capacity in -- total incentive also decreased last year. Total incentive of Q1 were 87.59% and this year is only 67.96% reduction of about 22%. Primarily, UI charges that the new DSM regime, which has been introduced, the UI charges decreased.
Then about -- yes, receivables. There is substantial improvement in the receivable. Last year during the quarter 1, total receivables were INR 1,058 crores and this year, the quarter 1 -- at the end of the quarter 1, total receivable of INR 329 crore. So again, INR 1,058 crore, INR 329 crore, there is substantial improvement of INR 729 crores difference between the 2. And this is because of the reasons that last year, receivables from G&K were very high, more than INR 600 crores. Now at this point of time, receivables from G&K are only INR 80 crores. So there is an improvement. This is about the brief. Now we are ready for the questions of the persons present in the conference call.
[Operator Instructions]
The first question is from the line of Abhineet Anand from Emkay Global.
Yes, sir. First of all, I just wanted to -- the next 3 years, you talked about INR 10,000 crore -- 10,000 megawatt. If you can give the details as to next 2 years, at least, is 1,500 and 5,000, what are the units that you are expecting?
Yes, definitely, I'll share. So in the next 1 year, the unit Naitwar Mori is of 60 megawatt will be commissioned within a month. Then the first unit of Buxar Thermal Power Plant of 660-megawatt capacity will be commissioned by March '24. Then Bagodara solar power project in Gujarat of 70-megawatt capacity will be commissioned. Then Gurah and Gujrai, both 125-megawatt capacity in Uttar Pradesh will be commissioned in this calendar year, we are expecting. Then Raghanesda solar power project in Solar Park in Gujarat will be commissioned in the first year.
Then Omkareshwar floating solar power project of 90-megawatt capacity will be commissioned within 1 year. Then in Punjab, we are executing 100-megawatt capacity solar power projects that will also be commissioned. And Bikaner solar power project in Rajasthan, out of 1,000 megawatt, 250-megawatt will be commissioned in this financial year. Then these are few projects, which will be commissioned within 1 year.
Then after 1 year and before the 2 years -- after 1 year -- within 1 year that capacity of around 3 900-megawatt capacity Arun-3 HEP in Nepal. Buxar thermal power plant, second unit will be commissioned, Bikaner, the rest of the 750-megawatt, then floating solar power projects in BBMB reservoir of Nangal Dam then in Bihar, Jamui and Banka about 200-megawatt capacity solar power plant will be commissioned, then in again, BBMB ground-mounted solar power project, which we have got towards 33-megawatt at 18 and 15, total 33 megawatt.
Then in Gujarat. Gujarat about 300 megawatts capacity, which we have already got and work is going on. 360-megawatt capacity will be commissioned and solar power project in Maharashtra, 200-megawatt capacity, then again in Maharashtra, 200 again in Maharashtra, 400 megawatts project will be commissioned. Then again, in Gujarat, the GUVNL Phase 17, 200-megawatt capacity, then 100-megawatt capacity of wind power projects again in Gujarat then Sikkim has a lot of 100-megawatt capacity and here in India, 100-megawatt capacity and again, grid power through -- of 200-megawatt capacity allotted by Sikkim [indiscernible] for [ 10 ] will be commissioned. Then in Punjab, we have got order of 1200-megawatt capacity, the 200-megawatt in Punjab and 1,000 megawatts anywhere in India that will be commissioned in the second year.
Then again, in Rajasthan, RVNL, we have got 100 megawatts of capacity there. So these are the projects more than 5,200-megawatt capacity will be commissioned in the second year. Similarly, 3,300 megawatts will be commissioned like Luhri Stage-I, [indiscernible] and other solar projects. So total around 10,000 megawatt capacity will be commissioned, project will be installed in the next 3 years.
So just out of these, so Arun-3, which is 900-megawatt and Buxar which is 30-20. These are the non-RE, if I can call, hydro and non-RE for the time being. So these are the only 2 non-RE right, so everything is RE?
Everything is RE though hydro is RE also.
Sure. So basically, Buxar sir, what would be the estimated cost on Buxar and Arun-3, if you can just give a broad number?
Estimated cost of Buxar may be around INR 10,400 crores total. And Arun-3, the generation component will be around INR 6,000 crores and transmission component will be around INR 1,600 crores.
And Arun-3 will be largely type of a regulated number, right?
We can say we are tying up the power of Arun-3, but we can't say exactly that it is regulated.
So what is the agreement there, sir?
Agreement, we are entering into an agreement for lump sum price, fixed price, not TRP price.
So this is -- we have PPA with which entity here?
We are just trying to enter into power purchase agreement or sale of this power. We have already signed MOU with the renew, and we are also trying with the states also, but not CERC-determined tariff. It will be lump-sum tariff. We have targeted ROE of at least 16.5% on -- it will be more than that even.
Okay. And just trying to understand on your RE project based on the current pricing. I mean what type of ROEs, et cetera, do you -- or IRR, anything that you can help us with?
Yes. Equity IRR in case of solar projects will be above 12%. It may raise to 12% to 15%.
In all these projects, you saying that 12% to 15% will be the equity RF?
Yes. The average will be 12% to 15%.
So what is your debt rate, sir?
Debt rate is around 8%.
The next question is from the line of Apoorva Bahadur from Goldman Sachs.
Sir, I wanted to understand on this revenue under recovery basically because of what availability -- when is it expected to be sort of recoup back? Are you seeing better flows during this quarter or by the end of this year and also the impact of recent floods?
Can you repeat the question and little slowly, so that I can understand your question?
Sir, on the revenue under recovery because of less water availability, right? I understand it will be recouped back during the year. So can you guide us as in how should we see across the quarters?
In the first quarter, as I explained that lesser water in the rivers resulted into lesser generation. And the second quarter, this is a monsoon season quarter. We almost get the full water in the river and machines are on the full load and generation is also higher also.
So we will almost end up with the at par, slightly improved generation but not to that extent. Because in the previous years also, we were doing also well. So we are expecting at par generation and revenue from the second quarter. There in the third and fourth quarters, third and fourth quarters last year were not good because of various reasons that from melting, other reasons and all these things. So if the temperature or snow fall, the rainfall during the winter is good, we expect improvement in the discharge as well as generation. And the additional generation will be from the projects, which we are commissioning this year that Naitwar Mori project will be commissioned just in the month, other solar projects will be commissioned during the coming months also. So generation will increase and certainly, revenue will also increase.
All for these 2 existing projects, in case the generation, the water flow remains inadequate throughout the year, how do we recover the fixed charges then, I mean the entire revenues?
So we get -- when I say discharges through 2 modes. One is capacity charges and other energy charges. So capacity charges, we are -- that is sure that we will get full capacity charges rather we make the machines available above 100%. But whereas the energy charges are concerned, 50% of the revenue we get from the energy charges. So if energy charges, the generation is good, then that will improve. That depends on the generation. Compared to last year, it is good, then there will be increase in the revenues.
One thing I will also share that whatever generation we do more than the design energy, we sell it as country energy. And the rate of country energy is just INR 1.20 whereas rate of design energy in case of Rampur is INR 4.25 and in case of Nathpa Jhakri is INR 2.25. So if we generate more than this, that can be design energy, the difference in the total revenue is very, very less after the design energy generation. But everything depends on the generation. If generation is more, then revenue will be more. So it can't be predicted because in the monsoon season, that is quarter 2. This year, our plant was shut down by 3.5 days because of the high silt but August is going good, there is no high level of silt and our generation is quite good.
Sir, last 2 questions. I think one is on the Arunachal projects that we have been awarded recently, if you can share the capital cost time lines and PPA, et cetera? And also on the renewable projects that we intend to build, do we have the land and transmission availability secured for them?
Yes. In Arunachal projects, we had been allotted 5 projects. One is Etalin 3,097 megawatts. And the second one is Attunli that is again 680 megawatt capacity. And then there is Emini, it is of 500-megawatt capacity. Then there is Amulin, 420-megawatt capacity and Mihumdon, 400-megawatt capacity. So total 5,097 megawatt capacity projects are there.
Out of these 5 projects, we are going to sign MOU, MOA with the government of Arunachal Pradesh on 12th of this month, day after tomorrow. Out of this 5 projects, 2 projects, Etalin and Attunli, DPR is ready. And Etalin, not only DPR but other some clearances, grow fresh clearances, environment clearance are in the advanced stages, there was some observation from Russia Energy, Environment and Forest. So we believe that all these formalities or the quota requirements will be completed in just between 1 and 1.5 years. And the Etalin projects which will be the largest project in the country of 3,097 megawatt capacity will be put to construction stage just in 1 and 1.5 years. And it will be completed in the next 6, 7 years. So they will reduce capacity addition and the investment on this project will be around INR 40,000 crores on Etalin itself.
There as in Attunli we will try that the project is put to construction in the next 2 years. So 680 megawatt capacity and investment will be around INR 9,000 crores. So full potential in Arunachal Pradesh and SJVN is targeted to bring these projects into construction as soon as possible. Other 3 projects, Emini, Amulin and Mihumdon will take some time. The DPR is yet to be prepared, they will take at least 3 years to start the construction. So this is the overall picture of Arun-3 projects.
Sir, there were -- if I'm not mistaken, but there were quite a few issues in terms of locals, not really wanting more hydro projects, and I think there was a recent court order as well. So any clarity on that? I mean do we have a clearance now?
We are yet to take over all the documents and handing over, taking over will be done after MOA. So we will come to law and we will take action as and when we take up these projects. But you rightly said that in the hydro projects, issues will always be there, major issues or compelling issues, still the project is commissioned. But we are very much expert and we are very much experienced in construction of hydro projects. We will find out the ways how to proceed further.
Sure. Sir, lastly, on the renewable part, if you can highlight on the land and transmission availability for the projects that we plan to build over the next 2 years -- 2 to 3 years?
Yes. Most of the connectivity issue is by Arunachal, it is not a major issue.
And sir, land?
Yes, land, in some cases, the land is in the path that has been allotted by the park developer whereas in other cases, now we have divided the activities into different phases. Earlier, we were doing the EPT mode. So if you see mode that land, connectivity and module supply through 1 contractor only, but now we have learned the tips of the change. Now we have bifurcated or we have split all the activities.
Land, we are doing it separately. The connectivity, separately. The balance of the supply -- the direction of modules through separate package and supplier module to a separate package. So what the response is encouraging in case of land also -- land acquisition also.
The next question is from the line of Dhruv Muchhal from HDFC Mutual Fund.
Just one clarification on the earlier question. So assuming the design energy for both the hydro plants that we have is by the end of the year is lower, say, 10% or 20% lower than what the design energies approved. So as per the regulations, we are still allowed to recover the variable component of the tariff, right, sir? By the end of the year, you make all these adjustments because we design energy. I mean the actual water flow is lower than the design energy?
Yes, we can. As I explained that it is in 2 parts, one is for the capacity, another is for the energy component. So if it is lesser than the design energy, we have already ensure the projects and we take up the issue with the insurance company for the recovery of this.
Does it have to go to insurance companies or it is part of the regulation itself, the regulations allow you to recover it?
The regulation is -- part of regulation also.
Part of regulation. Right. Okay. Got it. Sir, the second question is, you mentioned that the UI charge is lower because of change in the dates and regulation. So if you can provide more clarity of why is this happening? And also, now we are also seeing that the grid code is changing from, I think, August or September -- September, October, the grid code is changing where you will have to change the -- how you provide schedule to the grid and all those things are changing.
So what implication will it have on us because hydro generation can sometimes be a bit volatile. So does it have an implication in terms of how we schedule our power, how we provide schedule to the grid? Any financial implication, please.
Yes. No, grid regulations are very, very strict about the frequency, the power, machine will run the power generation, energy of the power generation and whether we can run the machines on overload or in the grid, we have to maintain the discipline also. So now the chances of these UI charges or deviations are very, very less. Penalties are also there. Incentives are also there. So definitely, this has become a very, very complicated and cumbersome process.
Okay. And sir, the change in grid code, how will it impact you, sir, the upcoming change in grid code? Will it have any implication?
We can explain you separately if you want me to...
And sir, one last question is, please, is on the Punjab, 200-megawatt, is this a regulatory structure? Or how is the structure? I mean how do you -- I think this was not bid projects. So I just wanted to understand what is the return model here.
Yes, we have got it from bid from competitive method. In Punjab, the tariff will be INR 2.75 per unit. The 200-megawatt capacity project, which we will install in Punjab whereas outside Punjab, 1,000-megawatt, the tariff is INR 2.53 per unit. So that is the fixed charges, no regulatory or the...
Okay. Sir, one last question, sorry, I missed one, on the Arun-3 dam work, I think there were some complications really dam work. Is that resolved? And what stage are we?
No, that is resolved. We have found the problem, and they were caring in of our divergence channel, and that is being corrected, that is being repaired and say, by September end, we will again start the construction of the dam.
The next question is from the line of [ Priyanch ], an individual investor.
Yes, see, like when we see towards this -- our projected new capacity of 10,000 megawatts, it all looks very bright and very good, very nice. But I will display the role of that they will look at here. All those, because I've been [indiscernible] details, so do you feel like, I mean, we are going in the renewal, maybe like the last 1 year or so first time. And so there can be some contingency here. So how the company has protected itself regarding the contingency income?
So for example, cost overrun in terms of delay in execution, in terms of their funding and in terms of [indiscernible] PPA, in terms of the ROI. And also since we are executing multiple projects, so what extent we have taken to set up any separate sale to look for the cost efficiency because 10,000 megawatts out of the [indiscernible] hydropower, maybe less 7,000 something only RE. So there is [indiscernible] scope of the economy of scale in terms of negotiation, purchases and alternate sources. So whatever cost project we are projecting for this. Maybe this can also be reduced by going for the cost escalation -- sorry, by going for the cost efficiency. So if you could just reply to all -- each of this point because these are very critical issue for the company.
The 10,000 megawatt capacity which I have referred to here, capacity addition in next 3 years, all the projects are visible, either the projects are under construction or at the stage of awarding of the contracts or in some cases, we have already got the projects for competitively and states have to issue LOI after getting of the tariff by the concerned CERC.
So these projects -- 10 projects in the first year, 19 projects in the second year and 25 projects in the third year, these are 54 projects, which will be commissioned in the next 3 years. And yes, the contingency plan, which we have installed that in case of hydro projects, uncertainties are there. But our people are capable of tackling all the uncertainties apart from the time sector because if some surprises occur, then sometimes that takes time.
For example, caving in of divergent on Arun-3 project, had it been not done, their project will have progressed but because of the scaling in of the divergent tunnel, we found the way out and what the delay in construction has resulted by 3 to 6 months, there is delay in the completion of the project. So what we have is every plan in place, whereas in case of other RE projects like solar and wind, some prices are very, very less. There may be a few problems like that projection of the land and connectivity issue. But our team, we have [ consistent ] our team in such a way that we take some -- we take simultaneous action on all these things, some acquisition of the land and connectivity, then supply of the modules like that.
So delay if any -- is there in the next 3 years, I do not rule out this fact that it will not be delayed. But the delays will be only in months, not in year. So that is the issue. Whereas the financing is concerned, we have a strong, robust balance sheet of the cash flow. The next 7, 8 years are going to be very, very on the higher side, and there will be no issue of arranging fund but the funds for these projects. We have already done the innovative financing, whether this to bonds or external commercial borrowings or borrowing from other banks or other financial institutions.
We have recently signed MOU with the REC for INR 50,000 crore funds for our RE projects. Similarly, we are also arranging from other ways, financial closure of these projects. So I don't see any funding issue with -- for the expansion plan. And so as PPAs are concerned, in all the RE projects, PPAs are in place in advance, whereas in case of our thermal project, PPA is already in place.
In case of hydro projects, hydro projects PPAs generally take place in the last years of construction. But the advantage which we have, that we are a diversified company. We have portfolio of hydro, we have portfolio of thermal, we have portfolio of solar, we have wind also. So we can also come out with the bundling solution that all the power will be bundled and will be sold to the clients. That during the day period, we can supply solar power, during the [indiscernible], we can supply hydropower. So we will give one and complete solution to the clients, to the customer. So that is in our mind. In case there are no PPA for the hydro, we will bundle this with the solar, and we will sell this power at a very optimum rate to the customer that they will be customers for the around-the-clock supply of power.
Kindly advise regarding the cost efficiency part, how are you going to reduce the cost?
You are also welcome to have conversation separately with our team also.
[Operator Instructions]
The next question is from the line of [ Hiral Lando ] from [indiscernible] Capital.
I have just one question to understand. With the target of 10,000 megawatts in next 2 to 3 years, what is the revenue potential we are looking for years 1, 2 and 3 coming from the next year onwards?
Yes, you're welcome that our current revenue is around INR 2,500 crores to INR 3,000 crores from the existing operations. In the next year, we will be adding around 1,500 megawatt capacity and revenue from that will be around INR 1,800 crores. The next additional revenue of 18...
INR 1,800 crores, that is for '24 or '25?
Existing revenue is INR 2,500 crores and the capacity addition of about INR 1,500 crores, the revenue will be around INR 2,800 crores. And in the next -- this financial year or at least -- at most up to June '24. And the next year, in the second year, revenue from INR 5,000 crore -- 5,200-megawatts capacity addition, revenue will be around INR 6,000 crores to INR 7,000 crores additional revenue.
And in the third year, capacity expansion of around INR 3,300 crores, the additional revenue will be around INR 3,000 crores. So total revenue at the -- after 3 years, will be around INR 14,000 crores to INR 15,000 crores, which is at present around INR 2,500 crores to INR 3,000 crores. So this is going to be increased by 4 to 5 -- 4x, 5x.
And the margin profile would remain same what they are currently in the range of 40-odd percentage or depressed PAT margin and EBITDA margin or that would have some change?
Margins from hydro margin is more, whereas in case of wind and solar, the margin will be -- will not be of that size. What margin which we have worked out at present, our PAT is between INR 1,000 crores to INR 1,300 crores, INR 1,400 crores. So next year, it will increase to what INR 1,900 crores, there will increase of about INR 700 crores margin PAT.
And the next year, the margin will -- after 2 years, the PAT will increase up to INR 3,000 to INR 3,300 crores and at the end of 3 years, the margin total profit will increase to INR 3,500 crores to INR 4,000 crores. So this margin -- this profit will increase by 4x -- about 4x.
I would like to connect separately for the further detailed questions.
The next question is from the line of Rohit Natarajan from Antique Stock Broking.
So my question has more to do with the pump storage projects. If you could give us some color on which are the near-term projects that you are going to start off? What stage of construction they are in? What will be the capital outlook per megawatt, what kind of leasing arrangements you have with state discom? Such picture, if you could help us through, it will be very helpful to the...
The work on PST is in the state of inception only. Government of India has indicated about 10 projects to SJVN in 3, 4 states of the capacity of 13,000 megawatts capacity. But when we visit the project, what -- I think projects are not in a position to take off because these projects were identified quite long back and deposit form in the world as century. So these projects cannot be taken up. Some of these projects are in Maharashtra. There are some projects in Himachal and 1 in Maharashtra and Karnataka, other in [indiscernible], we are preparing the pre-difficulty report and if the projects are reported by well, we will take on this.
But separately, we are going to enter into an MOU with the government of Maharashtra. Maharashtra government has some other projects. So they're interested to [indiscernible] these projects in JV mode. There [indiscernible] will also be partner. And we have already signed MOU with them. [ Majority ] state will be the SJVN, time arrangement and control will be SJVN. So we will start survey of these projects. And if these are found viable, we will be going for them. The capacity which we have targeted our PSC in the next 7, 8 years is of 5,000-megawatt capacity PSC and the investment on this project is around INR 9 crores to INR 10 crores per megawatt. So 5,000 megawatt capacity, we'll be spending around INR 45,000 crores to INR 50,000 crores CapEx on these projects in the next 7, 8 years. So that is the state.
My second question has more to do with the physical progress. As in the CapEx done for the critical projects, which includes your Buxar thermal and Arun-3 and maybe Dhaulasidh also, if you could help us the physical progress percentage-wise completion.
The secure progress of Buxar thermal power project is about 78%, 79%. The project is scheduled to be commissioned first, will be commissioned in this financial year by March '24. And the second year will be commissioned by September '24. And total -- the CapEx for this project, Buxar thermal project is about INR 10,400 crores. And we have already spent around INR 8,200 crores in Buxar.
Whereas in terms of Arun-3 project in Nepal, the physical progress is around 70%. And this project is scheduled to be commissioned by next September to December '24 and financial progress sort of this INR 7,000 crores, we have already spent around INR 4,500 crores, okay.
Whereas in case of Luhri Stage-I, this is INR 1,800 crore project and physical progress is about 55% to 60%. And we have already spent around INR 1,100 crores on this project. In case of Dhaulasidh, which projecting of INR 700 crores that we have spent around INR 500 crores on this project. And physical progress is again, what, 55% to 60%. So this is the state. In case of 1,000 megawatt solar project in Bikaner, total -- around INR 5,500 crores, and we have spent around INR 2,200 crores of this project. And this project will also be commissioned part in March '24 and the remaining by September '24.
Sure, sir. I appreciate those parts. Just to conclude on the regulated equity, what will be that number looking like at the end of FY '24 and '25? That's my final question.
Yes. The regulated equity as on this date, on the commission project is INR 6,200 crores -- around INR 6,200 crores. And diluted equity of the projects which are under construction is to the extent of INR 7,800 crores. And the total -- when these projects are completed will be around INR 14,000 crores.
Ladies and gentlemen, we'll be taking the last question. That is from the line of [ Vipul Kumar Shah ] from Sumangal Investments.
Sure. So what will be the debt -- consolidated debt of the company at the end of first year, second year and third year when all these 10,000 megawatts according to you will be completed?
Consolidated debt, I mean, just a minute. As on date, total debt is around INR 15,000 crores. And by the end of next 3 years, the total debt will be around -- about INR 27,000 crores, INR 28,000 crore.
No. So around today, what is the debt, sir?
It is about INR 15,000 crores.
So from INR 15,000 crores we will move at the end of first year to which figures then at the end of second year to which we got, if you can...
I can give you separately. Right now, I don't have the details for the next year.
Yes. Sir, one small suggestion. All this project cost, project completion data, if you can share in a separate presentation, it will be very helpful. This is very confusing. You're executing 54 projects for which there is hardly any data on your website.
NHPC shares all these data, what is the project cost, what is the time line, what is the project completion schedule. I would request you to consider it. Please don't take it...
It's a nice suggestion. We will definitely share.
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.
Yes. So we thank Mr. NL Sharma for giving us an opportunity to host this call, and we also thank all the investors and the analysts for joining this call.
Thank you very much.
Thank you members from the management team. 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.