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SJVN Ltd
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Ladies and gentlemen, welcome to the SJVN Limited Q3 FY '23 Earnings Call hosted by Elara Securities (India) Private Limited. [Operator Instructions]. Please note that this conference is being recorded.
I would now like to hand the conference over to Mr. Rupesh Sankhe from Elara Securities. Thank you, and over to you, sir.
Yes. Good afternoon, everyone. On behalf of Elara Securities, we welcome you all for the Q3 FY '23 conference call of SJVN.
I take this opportunity to welcome the management of SJVN, represented by Mr. N.L. Sharma, Chairman and Managing Director; Mr. A.K. Singh, Director Finance. 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. N.L. Sharma for his opening remarks. Over to you, sir.
Yes. Thank you. Good afternoon to all. SJVN is here to present its Q3 number and the overall 9 months numbers to all the investors and analysts present over here. Before I present the numbers, if you highlight, during this quarter, Q3, SJVN got the investment approval of one of the hydro projects in Himachal Pradesh, Sunni Dam Hydro Electric Project of 382 megawatts. And it's estimated cost is INR 2,615 crores. Cabinet Committee on Economic Affairs approved the investment approval of this amount and conveyed this decision. SJVN awarded the contract to the best bidder with a competitive method on 14th of January 2023. So this is the addition.
Now as of now, we have 5 hydro projects under construction, 1 [ thermal ] project and 5 -- 6 solar projects. [ So total ] solar generation projects are under construction and 2 transmission lines, thus making total 14 projects as of now. SJVN has portfolio of 14 projects under construction. Out of the [ 14-kilowatt ] generation projects, and 2 have been these transmission projects. And capacity of the [ bidded ] project is 4,325 megawatts. And projects are under different stages of development.
So now I will come to the numbers for this quarter Q3 of FY '23 and overall 9 months of FY '23. For the quarter so far as the number in terms of profit after tax are concerned, they are positive number. However, there is a marginal decrease in this generation, decrease in generation from overall hydro and renewable projects. The generation, if we compare, as compared to last year, generation this quarter is 1,394.9 million units, against 1,480 million units last year. So there is a decrease of 85 million units, which comes around 5.7%, basically in generation. This decrease in generation is because of the lesser range in the settlement areas of hydro projects and, at the same time, marginally lower generation in wind as well as solar projects. So that resulted in decrease in generation.
However, because of some other changes in the financial numbers, the revenue from operations has decreased by -- has increased -- slightly increased by 0.2%. Last year it was INR 550.52 crores during this quarter. And this year is INR 551.67 crores. So there is increase of INR 1.15 crores revenue from operation. So far as total income is concerned, there is an increase of INR 115.25 crores, that amounts to 19% the figures of total income in this quarter, INR 723 crore against INR 607 crores last year.
If we come to the figures of profit before tax. The profit before tax has increased by 4.5%. This quarter, PBT is INR 316 crores as compared to INR 302 crores last year. PAT has increased during this quarter by about 25%. The numbers are INR 290.98 crores. That is almost INR 291 crores this year, this quarter, against the last year corresponding quarter of INR 232 crores. Similarly, EPS has increased. Net worth has increased from INR 13,581 crores to INR 14,261 crores.
Generation, as I already explained, so far as plant availability [ sector ] is concerned, plant availability [ sector ] is almost the same last year. This year, [ there's a little ] marginal increase. It is around [ 110.22% ] for Nathpa Jhakri and [ 109.98% ] in case of Rampur project this quarter.
So for incentive -- in terms of capacity incentives and the UI are concerned, there is slight decrease. Last year, the incentives were to the tune of INR 74.4 crores. This year, it is INR 71.89 crores. There is a decrease of 3.3% in the incentives.
Now I will share the numbers for the 9 months of this FY '23. Revenue from operation has increased by 16%. This year number is INR 2,438 crores against INR 2,098 crores last year. Total income with an increase of 21%. Figures are INR 2,715 crores against INR 2,237 crores last year.
PBT has increased by 11% over a period of 9 months of FY '23. The figures are INR 1,501 crores against last year's INR 1,347 crores. So far as PAT is concerned, profit after tax, there is an increase of almost 38%. The numbers are INR 1,349.8 crores this year compared to INR 978 crores last year.
So far as generation is concerned, overall generation for the 9 months, there is an increase of 1.6%. In absolute terms, the increase of 138 million units, and the result of total generation for the first 9 months of the FY '23 is INR 8,458 million units against 8,320 million. So there is an increase of 138 million units during the first 9 months.
So far as plant availability [ sector ] is concerned, it is around [ 109.39% ] for the Rampur and the Nathpa Jhakri projects.
So these are the numbers. Now we are open to the questions of the people to get over here in the teleconference.
[Operator Instructions] The first question is from the line of Mohit Kumar from DAM Capital.
Congratulations on good set of numbers. The first question is on the status of Buxar and Nepal. Can you just refresh the time line, which you're expecting? And a related question is the -- any update on the PPA for Nepal where we are right now?
Yes, Mohit. So far as the status of these 2 project, Buxar and Nepal, is concerned, these projects are almost on the track with some difficulties. In Buxar project, there were some law and order issues regarding the land and land compensation issues. So work remains closed because of the law and order issues for about 10 days. And now activities -- work activities on the project are resuming at the time when this took place in the second week of January. The labor at the time was 5,000 on all fronts of Buxar, but due to the law and order issue, the labor fled. And now the work started after 10 days. Now there are almost [ 2,000 to 2,500 ] laborers, and we expect that the remaining labor will also come and work in full to start. But we are targeting the commissioning of this project by the end of next financial year FY '23 though there are many odds what we are trying to manage between -- to our best.
And regarding in Nepal project, Nepal project also there are issues the communication issue, communication regarding the road conditions, costly [indiscernible] lifeline of the Arun-3 projects. We have already taken up the issue of costly [indiscernible] of handing the critical portion of about 50 kilometers to [indiscernible] repair and maintenance. But we expect that by the end of next financial year, by March '23, we are fixing the target for the commissioning of the project.
So far as PPA is concerned, we are in discussion with different mode to sell the power. But in any way that power, we are not able to find PPA, we have the option to sell the power through power exchange also because it will be increasing quantum of solar -- injection of solar power in the grid, the power of -- hydro power demand is also increasing. So we can sell the power through open exchange also. But at the same time, we are trying to have PPAs for the power of Nepal.
So to say the time line is March 24 for the Nepal and March 25 for the Buxar. Am I right?
March 24 for Buxar, right, both.
So March 24 both the power plants. Okay. Understood, sir. Second question is, of course, you have raised 10 billion for securitization. What is the use of proceeds as we -- are you thinking of paying more dividend?
Not at all. Dividend, we are paying as per the guidelines of the government of India. But we are using this amount we got through securitization for infusion of the equity also as well as the requirement of funds, debt requirement in the [ same ] various project.
It's also 4,323 megawatts projects are under construction, which require almost more than INR 30,000 crores investment. So we have used the equity upfront, most of the equity. We are utilizing the debt portion, and this amount can be used for investments in the form of equity as well as debt also.
Last question, so why the decision to return the money back on Kholongchhu project? So why are we not part of it?
Yes. Kholongchhu project was in a JV mode, that JV mode, that is 50:50 ratio with one of the PSCs of Bhutan. And the [indiscernible] was like this that most of the issue in the arrangement, there was an equal number of directors from or side and equal number from directors their side. And the chairman was not having the voting right. So most of the issues were just not decided because of some stalemate, so that structure didn't succeed. And government of Bhutan was also not comfortable with a JV mode. For the long time, they were demanding that government of India should devise some other mechanism of management of the project.
So ultimately, we decided when issues are just hanging in there and also no decision is being taken, better to come out of that JV mode. But our equity, we have invested along with the interest, we got it back. We had invested INR 240 crores equity, and the interest calculation at the rate of 9%, without interest, it comes to around INR 114 crores. So the entire amount, equity investment along with the interest, we got back.
The next question is from the line of [ Santosh Kumar Khemka ], an individual investor.
Sir, I am a shareholder. I hold with my son, [ Vinit Khemka ], holding 9.25 [indiscernible] dividend of INR 1.15 [indiscernible].
Sorry to interrupt, sir. The line for you is very bad.
Pardon?
The line for you is breaking up in between, sir.
[ Santoshji ], what do you want to ask? If you can say in Hindi or English, anything, any language, we are comfortable in both.
I'm a big shareholder of your SJVN. I'm happy to observe the interim dividend of INR 1.15 has been declared same as last year. I have mainly 2 queries.
In the profit and loss statement of the quarter under item 4, an exceptional item of INR 17.5 crores have been stated. What is the exceptional item related to -- that's what I wanted to know, sir.
Yes, [ Santoshji ], the exceptional item here, administrative [Foreign Language] Rampur project-related, about INR 33 crores. [Foreign Language]. So that's why the INR 17 crores exceptional item has been included in the P&L statement.
I see, sir. Yes. Another question I have is it has been planned to achieve a power generation capacity of 500-megawatt by December this year. Sir, I wish to know which are the projects that will be commissioned to achieve this target by this year-end?
[ Santoshji ], my target here, that is 5,000, not 500. [Foreign Language] 5,000 megawatts. Right now, we have 2,100 [Foreign Language] 75 megawatts that was commissioned [Foreign Language] what I told [Foreign Language] power generation project under construction of 4,323 megawatts [Foreign Language]. Similarly, 900 megawatts project [Foreign Language] that will be commissioned.
And on the other side, solar project [Foreign Language] 16 megawatts Naitwar Mori [Foreign Language] just in a couple of months that will be commissioned.
So far as solar projects as concerned, one of the major solar projects, Bikaner solar project, 1,000 megawatt [Foreign Language]. Similarly, Bagodara Solar Power Project has 70 megawatt, and [Foreign Language]. Our Raghanesda project 100 megawatts [Foreign Language]. And we expect the financial year '23, '24, if our capacity will grow 5,000 megawatts.
The next question is from the line of Aniket Mittal from SBI Mutual Fund.
A few questions. One is on Buxar. Just wanted to understand, I think there is some land acquisition that is pending over there, and in turn, that's led to some major issues. If you could just elaborate on what is the type of land that we still need to acquire? And what is that regarding?
Aniket, regarding Buxar, for the main plant, 1,060 acres of land was for the mainland which we have already acquired. But for railway siding and water corridor, the land is around 238 acres [indiscernible]. This was under process of acquisition. So all these formalities of acquisition were completed. We have because land acquisition has to be done by the state administration, district authority. So that district authority asked for the money to be the deposited with bank for the land compensation, and it is their duty to disburse the money to the landowner. We have deposited all the money, which is due to -- with the district administration.
So when suggestion of the land was to be handed over the district administration to our project, the local people, the landowners, they demanded a higher compensation. So we said that we are nowhere in the picture. The compensation has to be determined by the local administration, local authority, district authority, as we are supposed to deposit the amount with them. And to disburse the amount, the local people -- a few people came forward to receive the amount, rest of the people demanded a higher compensation.
So thereby, there was a law and order issue. People tried to stop the work. There were some damages also. They came in more. So there was confrontation with the police and the local people, so work remained closed for about 10 days. And all the labor because local, they also threatened the labor, most of the labor is also the local people, they were also part of agitators.
So now with the intervention of the state government and the district administration, the law and order issue is under control, but the full labor in full has not panned up. Now slowly, surely, gradually, they are coming, and we are persuading the people there is no danger. We have already got the -- we're hiring the security personnel, about [ 100 ] personnel for the safety and security of the people. And now almost 2,000 laborers have returned, and rest of the laborers showed up. More 2,000 will come in the next week or 10 days. So we are expecting that the work will start with full swing.
And in terms of resolution of this land acquisition, how do you see that panning up?
Yes, the local administration and the state administration intervened. Their additional chief secretary [indiscernible] visited the site. He interacted with the people, and he said that about one district collector has announced the award, the only remedy is reviewing it by the next higher authority. Land acquisition, the higher -- that's the higher authority that [indiscernible] with them. So he has said to the people and has said to the people, you come to that appellate form and the -- so the government will look it sympathetically.
That's helpful. The second question was on Arun-3. There's a certain tower packages given some hilly areas that were yet to be awarded. What is the progress on that front? And how is the total erection right now with the...
So in the tower that one -- package number one, this is a hilly area. Two types of land is involved. One is private land, and other is forest land. So progress on both [indiscernible] land, the issue has already reached the highest authority, their secretary. And they will decide it. [indiscernible] has already approved it.
And for the private land, things are also in the advanced stage, and we expect that by the end of this month, we will get the entire land booked, forest land as well as private land.
Okay. And then we'll award those packages?
The package has already been award, but handing over the site, handing over of the site will take place.
Okay. Understood. Got it. Sir, the other question is you briefly mentioned on Kholongchhu. You mentioned that there was some stalemate between you and the Bhutan side of the equation. Could you elaborate a bit on what issues was the stalemate being caused that led us to exiting the project itself?
Aniket, there were many issues, not one but culmination of all the issues resulted in the [ dying ] of our stake from that company, like government of India approved the investment for this project way back in 2013. So thereafter, that company was to be formed, JV company. JV company was formed in 2015. Then one concession agreement was to be approved by the government of Bhutan, so there were issues of full cross-border trade of electricity. Government of Bhutan had some reservations on the CBP guidelines, [indiscernible] government of India.
So that took about 2, 3 years that CBP guidelines were revised. And because of these CBP guidelines, government of Bhutan kept that concession agreement pending for 4 years. It was measured to be approved by them in September, October '16 but that was ultimately signed in March 2020, say, after 3.5 years. So that took some time. And thereafter then, actual practical issues when we awarded the different packages. So they put the condition that any contractor who is the lowest bidder had to offload 20% work to their Bhutanese company. And we [indiscernible] this one bidder got. So there were some practical issues that if we were to work other company or they are demanding [ some business work ], so interfacing issues were there.
So on these issues, government of Bhutan, represented in the board, they were demanding, and the issues even by way of voting could not be solved. 4 directors from their side phone, 4 from our side, they were equal voting, and chairman had no voting right. And so top issues, partly in last 4, 5 years, there was no work at all on the actual construction of the project. Few preconstruction activities were there. So both the sides sat together, there were bilateral talks also, and it was decided that in such a situation, then it is 50-50 JV company decision-making, decision paralysis is there, so let us find out another way of doing the project.
So we also thought that we are not -- no sort of [indiscernible] has many projects in a city. So why to keep our -- this equity idle there and without any decision. We had improved on the [ prospect ] of equity, so with the volition and consent of the government of India and the government of Bhutan also agreed, it was better actually that we quit and find out other way of doing the project.
So that was the reason. So these were all 2 issues. There were many other smaller issues, which culminated into such a decision.
Okay. That's helpful. Just to follow up the 9% compounding interest, was it lost within the JV contract itself, is it?
I think there was not the clause because 9% was not written there. So we just work on different modalities of interest. It was we decided that exiting, the equity will be returned with a reasonable rate of interest. So one possibility was that whatever interest we got for our surplus funds in our company, where was there. That comes around 7% to 8% here. What other benchmark was that the Power Finance Corporation or RSE, which were funding other projects in Bhutan also at what rate. So that rate was determined [indiscernible] reasonable rate was 9%, and just compounded -- too compounded.
Understood. The other question was with respect to Naitwar Mori. Have we signed the PPAs?
Not yet. Not yet.
So more likely because you mentioned that actually we should commission in a couple of months.
Yes. We will commission. We are targeting by the end of March, so until unless the PPA is signed with any [indiscernible] or any other utility, we can send the power through open exchange also.
Okay. And just one last question. If I look over the past 3 months, on a fair amount of renewable projects, I think that is the MSEDCL 200-megawatt [indiscernible] 100, I think, also on the [indiscernible]. If you could give a broad idea for the [indiscernible] in terms of the capital cost involved in the PLF that you're looking from this [indiscernible].
PLF, [ PES ]. PLF, you are looking at around 24% to 25% PLF. So far our investment in the new project is concerned, for the floating solar power project is 105 megawatts in Maharashtra, and the [indiscernible]. Then other projects, floating solar project in Himachal Pradesh, that's [indiscernible] project [indiscernible], and tariff is INR 3.26, but we have to get a ratification from the state electricity regulatory commission.
So far as Maharashtra project is concerned, INR 3.93 and [indiscernible] and the tariff, INR 3.70. Then again, solar power project in Maharashtra, [indiscernible] the capacity of 200 megawatts, the tariff is INR 2.95. We also got 1 wind project [indiscernible], 100 megawatts wind project, the tariff is INR 2.90. These are the 2 projects which we got in the last couple of months.
So what will be the capital cost for, let's say, the 100-megawatt wind project [indiscernible]?
100-megawatt cost of project is around INR 650 crores to INR 700 crores. That is yet to be determined. We will issue the bid tender offer, and through competitive bidding, that will be determined. But tentatively, it is within INR 650 crores to INR 700 crores.
The next question is from the line of Divya Daga from Vijit Global Securities Private Limited.
My question is related to solar power projects for better understanding. Can you explain what is the OP margin of solar projects? Because I saw that hydro projects have a margin of around 70% to 80%.
What's your question for the solar project. What is the...
Operating profit margin. What are the expenses? And what is the margin we are getting out of it?
That will be -- though I'm not ready with the figure, but the operating margin will be around, I think, 60% around 60%.
Okay. And can you say how much is the sales realization per megawatt from solar project?
Actually, it is in terms of energy. It's around 25% when 1-megawatt project will generate about 2.5 million units of energy. So that is for use of energy, and there is tariff-based competitive bidding, so whatever the capacity we install and then the energy can be sold at that rate that again [indiscernible] the state government or any agencies will sign a PPA, and that will see us at that range.
So far as return on -- equity IRR is concerned, that is between 10% to 12% or 13% for the solar project.
Okay. And what would be the sales realization from the 75-megawatt plant we have -- that we have commissioned in October?
Yes. That 75-megawatt project, Parasan solar power project. Totally, INR 42 crores per year.
Okay. Can you also explain me the projects that are...
This is the operator. There's a question queue for further questions. We do have several participants awaiting there.
Just the last question. Can you explain me the 4 projects that you have told you have transferred to SJVN? What are those projects?
These are like the Parasan [indiscernible] parent company. Now we have transferred it to SJVN. And...
Sir, you are not audible.
The affected projects [indiscernible] that is -- that has also been transferred to SJVN. Then Gurah and [indiscernible] UP, Gujarat. So Gurah and Gujarat.
The next question is from the line of Apoorva Bahadur from Goldman Sachs.
So I wanted to understand for the solar project, the EPC ordering, which we do, does that have a model cost pass-through? Or it includes risk of model cost?
No, Apoorva, in solar project, there is no concept of pass-through because it is not a cost-plus tariff. It is the tariff-based competitive bidding, so whatever cost is there, that is [ going ] to be borne by the company. And we have done the business exercise on back-to-back basis for this project, how much cost, including modules or balance of other [ plant ] in that. So there is no concept of pass-through items in EPC solar projects. That is the competitive-bidding projects.
Sir, I apologize in case -- I mean I was not very clear. I wanted to know that the orders which we have given to the various EPC developers, right, for setting up these solar projects. So in case if there's a change in the module price, will the benefit or the cost of that come to us? Or will the EPC developer bear it?
Yes, the EPC developer will bear the cost. Whether there's increase or decrease in the cost, it is on the account of EPC developer.
Okay, sir. Understood. Sir, secondly, there are a couple of hydro projects with us without any PPA. So do we intend to utilize those for blending with the solar and sort of giving a round-the-clock type of participating, round-the-clock tenders?
Yes, we are keeping all the options open. We are just weighing the dynamics in the power trading market, whether it's appropriate to go for PPA or whether for RTC power, we keep this power available. Or we can go with the hybrid model, partly long-term PPAs and partly keeping it open for the RTC power.
The next question is from the line of Pramod Dangi from Unifi Investment Management.
So my question -- 2 questions. One on the dividend. Why our profit for the 9 months have increased significantly year-on-year, we have kept the dividend same? So any thoughts like how our dividend position will be going forward? And will it maintain at the same rate? Or it will increase -- with the news that are coming online, will we increase the dividend?
Yes, Pramod. So far as dividend is concerned, this is the interim dividend. And annual dividend, we will see before that annual general meeting, keeping in view all the aspects, the requirement of capacity expansion then, at the same time, the guidelines given by government of India regarding the payment of the dividend. But this is assured that we will at least pay what is required under the government of India guidelines, 5% of net worth, 30% of the PAT, we will surely meet that guideline.
Okay. Okay. Second, on the Naitwar Mori. I think this is about to commission in March, right? You said a couple of months. In March '23 or I think the [indiscernible] guidelines [indiscernible] project.
Yes. We are still targeting it by March '23. So there are many odds, but our team is certainly geared up, and we will try that machines are spinning and synchronized by the end of the March '23.
Okay. Okay. And one more question, if I may ask. Regarding the new project which you said you just receiving again for the INR 2,600 crores, on the bidding basis. So over there, what the IRR or the -- it's IRR we are looking at it, how it works? Is it that -- doesn't the per unit price, how the economics work over there?
I believe you are talking about the Sunni Dam hydro project, correct? Yes, the government of India gave the approval -- investment approval. The IRR is more than 12%. IRR more than 12%. And I think the equity IRR is even more than 15%.
The next question is from the line of Anshuman Ashit from ICICI Securities.
Sir, first question is, sir, on the finance cost for the quarter. So again also what is the [ FCRB ] component? Can you get us on that?
Yes. Finance cost, that has increased over this quarter because we have taken the loan from various banks, so [ FCRB ] usually INR 45 crores.
INR 45 crores, which was not passed through. And sir, what is the current cost of borrowing?
So cost of borrowing average is around 6.5%, around 6.5%.
Sir, broadly on the renewables front. So could you let us know the current portfolio that we have in our hand and the breakup in terms of also after FY '20 passes? What will be the total operational capacity? And what is under construction currently?
So far as renewals are concerned, the operational portfolio is of 5 projects of 179.5 megawatts capacity. And the projects under construction renewable, there are 6 projects under construction of capacity of 1,385 megawatt capacity. These are in under construction.
And most of these -- or in fact, all of this will get commissioned by FY '24?
Yes, FY '24 will be commissioned by the -- in that financial -- next financial year, all projects.
Okay. And sir, so going forward, whenever we are bidding for the renewable projects, will be bid under SGEL? Or will the present process continue?
I couldn't understand your question.
I'm sorry. The SJVN Green Energy Limited, our subsidiary [indiscernible].
SGEL. Yes, SGEL. We have a new subsidiary for it.
So whenever we are going to bid for the upcoming projects, we'll bid it under SGEL?
SGEL, yes.
Okay. But the debt raising will be under SGEL and itself.
No. Debt raising is not [indiscernible]. Wherever required, we will do the guarantee as we will hold the guarantee. But otherwise, the debt raising is also for SGEL.
The next question is from the line of Chinmay Kabra from Emkay Global Financial Services.
I just wanted to know one thing. I might have missed in the early part of the call. Could you please repeat what is the incentive for this period?
Incentive?
Yes, yes, yes. If you could just give [indiscernible].
Yes. So far incentives are concerned, during this quarter, we got incentives -- capacity incentives and UI to the extent of 71.89, which almost INR 72 crores incentives. Capacity incentives, out of the INR 72 crores, INR 63.47 crores capacity incentive, and INR 8.42 crores is the UI. That is the sum, so a total of INR 72 crores.
And if I'm not wrong, you did mention there's a decrease of 3.3%, is it right?
Yes. Last year, it was INR 74.4 crores.
All right. All right. Okay. And one more thing. So I'm a little confused. If you can just clarify, you have a target of 5,000 megawatt for FY '23, right?
By '23, '24.
By '23, '24. That is by end of FY '24, sorry?
Yes, yes, yes.
All right. So currently, we have completed 2,100 worth of projects, if I'm not wrong?
Yes, 2,100 capacity is already there, and more than 4,000-megawatt projects are under construction. And out of this, we will definitely commission projects towards more than 3,000-megawatt project. So we will definitely cross 5,000 crores (sic) [ 5,000 megawatts ].
Sir, Buxar and Nepal have a completion -- will be commissioned by end of FY '24, right?
By FY '24, yes.
Ladies and gentlemen, due to time constraints, we will take the final question from the line of Mohit Kumar from DAM Capital.
Two questions, sir. How much is our renewable portfolio at this point of time assuming whatever you have won in the last quarter in megawatt terms? And what is the expected EBITDA within that portfolio?
Yes, I have already told that, 179.5 megawatts is under operation. 1,320 megawatts is under construction for renewable. 1,385 megawatts is under construction. And around the 1,000 -- 100-megawatt projects are on the various stages of development [indiscernible] renewable. There are 2 other projects. Two other projects, we have already -- we have been given 2 solar projects in Himachal Pradesh of [indiscernible] megawatts, but there is an issue of forest land diversion. So we have already taken up with the Minister of Environment and Forests. And moreover, we have signed the MOU of 10,000 megawatts solar power projects in Rajasthan. So we will -- we are keeping our attention there.
RTC, how much power we can generate and all these things, there is some other requirements by other states that you can establish or install process [indiscernible] supply power to them [indiscernible] Punjab. Punjab has issued the tender that if you [indiscernible] install, establish solar project in Punjab also or solar power project in other states and supply over to Punjab also. So we are participating in such type of bidding also.
So sir, how much is the portfolio where we have a PPA already signed or we are in one in the bids? Total portfolio, yes.
Yes, total portfolio, out of 1,385 megawatts projects, which are under construction. PPA of more than I think the 1,000 megawatts have already been signed or likely to be signed. So for these projects which we get through competitive bidding, PPA is obligatory on the part of the bidding agency. So we will supply power to them at the lowest predetermined rate.
So issue of PPA is not there. But when it is open-ended, likely we produce power to be supplied through RTC. So then we will install the project at our risk, and we will keep our fingers crossed and meet the demand, which is unforeseen supply to RTC or other bundling with the other available power.
Understood. Last question, is there some EPC tender for hydro projects, which are still pending, which you're looking to award in FY '24 or FY '23?
Not yet. Now all the tenders, which were there in the pipeline, have been awarded. [indiscernible] So now for that electromechanical package will be there, there is also kind of EPC that we are -- that is under process.
Who won the contract Sunni Dam?
Sunni Dam project [indiscernible] to power from the best bidder.
I now hand the conference over to Mr. Rupesh Sankhe for closing comments. Over to you, sir.
Yes. We thank Mr. N.L. Sharma for giving us an opportunity to host this call. We also thank all the investors and the analysts for joining this call. Good day and [indiscernible].
Thank you very much. Thank you all.
Thank you. On behalf of Elara Securities (India) Private Limited, that concludes this conference. Thank you for joining us. You may now disconnect your lines.