Two of those are straightforward solar projects where there is tariff adoption by the regulator that is in the works right now. And the third one is a project which is on the complex projects that amounts to about 2 gigawatts and that is something that builds us a little bit more time, because that’s by nature, that being a complex project does require the utilities to do a little bit more homework before they can go ahead and find the PPA. So that will take a few more months, most likely to get done. And so that’s really where we are. And the two year time line starts from the date of signing the PPA. So assuming that these PPAs get signed between now and the end of the year, then you’ll have till FY ‘26 second-half of the year to do most of these projects in.
And then as I said, we’ll have more bids that we win hopefully go into FY ’27 after that. So I think the point is that the market opportunity continues to be very robust for us and so it’s really a question for us now of how much capacity do we want to pick up at what time to manage our execution time line well — and the IRRs on these projects are also very healthy because obviously, with the number of auctions that are going on, everybody is getting really as much as they have the ability to execute or they have capital for — and that is leading to healthy IRRs. Thank you, [Indiscernible]
Justin Clare: Okay, appreciate it. Thank you.
Operator: [Operator Instructions] Our next question comes from Nikhil Nigania from Bernstein. Please go ahead.
Nikhil Nigania: Yes, hi. So my first question is on the standstill agreement. If you could please share some color on what was the rationale motive behind that?
Sumant Sinha: The standstill agreement between the company and CB2?
Nikhil Nigania: CPPIB. Correct.
Sumant Sinha: And the logic that really was that CPPIB, as you know, of course, is already a 52% economic donor of the company’s shares. And as per the shareholder agreement, they wanted to get an additional board field — and essentially, the Board said that, look, I think as let’s make sure that you do not consider to increase your ownership in the company without doing something which is a much broader kind of an offer to our shareholders. And so really it was just for that purpose that substantial agreement was so in place. And frankly, Nikhil, this is quite common among where there is in various companies that bid the largest shareholder, such cancel agreements are agreed to. And so really, that’s why our Board was advised by our council that such an agreement with our largest shareholder, would actually be quite both standard and also would be protective of minority shareholders.
Nikhil Nigania: Got it. Understood so — the second question is then on future plans on free activities, mainly wafer manufacturing, wanted to [Indiscernible]. Second is merchant capacity, if any, plants. And third is on storage. If you could share your color on any plans on these three?
Sumant Sinha: Yes. So on manufacturing, as you know, we talked about the fact that our 4 gigawatt module plant is now commissioned and fully running. We are also setting up to 2 gigawatts of additional module capacity in Dulera along with 2 gigawatts of cell capacity. The module capacity will be ready by early next year, taking our total module capacity to 6 gigawatts. Our cell capacity will be ready towards the second-half of next year. And then the PLI bid win that we had was, as you know, for 6 gigawatts of wafer cell and module and therefore, the balance part of the wafers and the cell we are looking at right now and the appropriate time we will consider going forward with it. So that’s where we are on the module — on the solar manufacturing part. The second question that you asked was around — sorry, can you just repeat Nikhil, if you don’t mind.
Nikhil Nigania: Sure, Sumant, that’s merchant capacity. Any plans for the merchant renewable capacity?
Sumant Sinha: Yes. Yes. And the third is around PHP. So on merchant capacity, the reality is that, as you know, the expectations in the Indian market are that we’ll be running into significant deficit on the peak power. And our demand growth in India is very robust, as we all know. We also know that new capacities in thermal, while we might get plan will take several years to actually come on stream. And so our sense is that there is going to be a fairly significant deficit in the market for the near-term. So the merchant capacity is something that we will be doing in two ways. One is we will be setting up certainly dedicated merchant projects to a certain percentage of our portfolio. The second thing is that we will also have merchant exposure through our Peak Power project, where there will be some overflow to our RTC projects.
And I think the third way is that we will also be setting up projects, which we will then potentially, depending on the PPA side, then apply to PPAs, whether corporate or cycle. And so for some period of time, we will take advantage by commissioning them early and essentially getting exposure to the merchant market. There, we expect prices will be significantly higher than in the PPA market. So by a combination of those mechanisms, we expect to get exposure to the merchant market, which we believe will be significantly value feature for us in the short run. And now we’ll be checking — now coming out of the view that you can construct a project and then essentially later on, did that into a PPA, we’ll have the flexibility as we believe over time to then potentially move those from merchant to PPA as well.
And that’s a call that we can take in the future depending on how the market evolves. So again, the merchant exposure is, you know, in our view, give us some reasonable upside on our PPA revenues in the next few years’ time. And that is why we will increase our exposure to the merchant market through these three mechanisms that I outlined about. As far as PSP is concerned, look, I think there is a general perception in the market that PSP is absolutely essential for cheap RTC. And that is something that I would like to say that, that is not the only way to get the cheapest RTC power. We have won several projects four RTC bids by using a combination of solar and wind and a small amount of storage. Now this requires, so the solution you can get is either solar and plant-hydro or you can get solar wind and batteries by upsizing the win in the project and having, as I said, a small amount of budget.
