CAPEX:

Increase in the company’s debt levels because of the debt-funded capex undertaken to increase the IPP capacities. Company incurred debt-funded capex in FY2023 for developing 26.1-MW hybrid capacity at KPIGEL.

Order Book:

1. CPP/EPC order book continues to grow at a rapid pace and stood at ~Rs. 512.0 crore as of February 2023 compared with Rs. 350.0 crore as of May2022.

2. Company along with M/s. Advait Infratech Limited signed a Memorandum of Understanding with the Government of Uttarakhand for development of 500 MW solar park under CPP.

3. Order Received in Q3FY24 - 88 MW+ (Incl. 75+MW in CPP Solar & 13+MW in Hybrid CPP).

4. Other Orders in Hand till 9M FY24 - 524 MW+ (Including IPP 279+ MW, CPP 60+ MW & Hybrid CPP 185+MW).

India’s Infrastructure Sector:

The infrastructure sector is the backbone of the Indian economy, playing a crucial role in the growth and expansion of various industries. For a nation to achieve economic progress, the development of world-class infrastructure is imperative. Recognizing this, the Indian government has been implementing several policies and initiatives to accelerate infrastructure growth, positioning it as India's new global identity.

To achieve the ambitious target of a US$ 5 trillion economy by 2025, infrastructure development is essential. The National Infrastructure Pipeline (NIP), along with initiatives like Make in India and the Production-Linked Incentive (PLI) scheme, is aimed at fostering the growth of India's infrastructure sector.

India's infrastructure sector consists of the following key components:

• Electricity
• Roads
• Telecommunications
• Railways
• Irrigation
• Water Supply
• Sanitation
• Airports
• Warehousing Facilities
• Oil and Gas Pipelines

Key Factors Driving India's Infrastructure Growth

Planned Investments: India's infrastructure sector is poised for significant expansion, with an estimated investment of US$ 1.4 trillion by 2025. The National Infrastructure Pipeline (NIP) aims to direct substantial capital into energy, roads, railways, and urban development to drive long-term growth.

PM Gati Shakti National Master Plan: Under this initiative, the government has identified eight key infrastructure projects—seven from the Ministry of Railways and one from the Ministry of Road Transport and Highways (MoRTH)—to enhance connectivity and operational efficiency in challenging terrains. The Union Budget 2024-25 allocated ₹11.11 lakh crore (US$ 132.62 billion) towards infrastructure development under this program.

Highway Expansion:

Northern Patiala Bypass: Union Minister Mr. Nitin Gadkari announced a ₹1,255.59 crore (US$ 150.01 million) investment for constructing a 28.9 km, four-lane access-controlled bypass in Patiala.

Manipur National Highway Projects: The government has approved 50 National Highway projects spanning 1,026 km, with 44 projects (902 km) in the hills. Of these, 125 km have been completed, while the remaining 777 km (36 projects) are under construction with an investment of ₹12,000 crore (US$ 1.43 billion).

Railway Infrastructure: A record ₹2,62,200 crore (US$ 31.67 billion) has been allocated for Railways in FY 2024-25, underscoring the government’s commitment to modernizing the sector.

Urban Development Initiatives: In June 2024, the Ministry of Housing & Urban Affairs approved funding of ₹860.35 crore (US$ 103.91 million) for West Bengal under Swachh Bharat Mission - Urban 2.0 (SBM-U 2.0). Compared to the ₹911.34 crore (US$ 130.34 million) allocated in the first phase (2014-19), the funding for SBM-U 2.0 (2021-26) has increased by 1.5 times to ₹1,449.30 crore (US$ 175.04 million).

Northeast Infrastructure Expansion: Over the past 10 years, India has constructed 9,984 km of National Highways (NHs) in the Northeastern Region (NER), with an expenditure of ₹1,07,504 crore (US$ 12.98 billion). Currently, 265 NH projects covering 5,055 km are under implementation at a cost of ₹1,18,894 crore (US$ 14.36 billion).

Increased Capital Expenditure (CAPEX): The Central Government’s CAPEX allocation for FY 2024-25 stands at US$ 133.9 billion (₹11.11 trillion), marking an 11.1% increase from the previous year and comprising 3.4% of GDP. This reflects a strategic push to accelerate economic growth through infrastructure investment.

Long-Term Infrastructure Investment Plan: India has laid out an ambitious US$ 1.723 trillion (₹143 trillion) investment roadmap for FY24-FY30, with a strong focus on power, roads, renewable energy, and electric vehicles to sustain economic momentum and industrial growth.