We have found that, that solution or that different alternative construct gets us to very competitive RTC prices, okay? And because we do everything therefore in-house between the wind, solar and the batteries, we are able to make sure that the construction time lines are coordinated and are done in the most optimal manner, okay? And therefore, I think, I would just like to say for everybody’s benefit that it’s at. This is something that does give us a pretty significant advantage in the market, compared to other models that are out there where the pump hydro evolved from the [Indiscernible] and therefore, don’t have to put together. Having said that, we do believe that there is a significant room for pump-hydro in the Indian grid as we go forward, especially for the long duration storage that we’d be required.
And therefore, like a lot of other source, we’re also looking at developing a couple of pump-hydro over a period of time. However, most of these pump-hydro projects that are now in construction or development will take several years to come on stream. And those will not be, in some way, sinkable bids or synchronized bids, some of the RTC bids that are coming up, which required to be constructed in the next two years’ time. And so I think even in the short-term, you’ll see more RTC projects very constructive with wind, solar and battery then necessarily with pump-hydro. Now over time, as I said, there is a role for pump-hydro to play. And therefore, we are also developing pump-hydro projects for looking at the future of the base.
Nikhil Nigania: Perfect. And yes Sumant, very clear. Just two more questions from my side. One is on the Andhra Pradesh receivables. So firstly, great to see them come down to such a level from over 200 last year. But now if I look at it going forward, from Andhra Pradesh, please correct me if I read it correctly, there’s still a receivable DSO of 371 days. So should we understand that while they have paid the installments, but they have stopped paying future billing done since those installs started happening? So the issue — the core issue still remains? Am I correct to read there?
Sumant Sinha: No, Nikhil, that’s not correct. What they have been doing is, in fact, not with them, but all states have not just been paying their old outstandings as per the agreement that they had with the central government under the Late payment surcharge scheme. But all the states have also been paying their current views that have been on the current billings that have been done. Now the question then, of course, is why does AP have such an old outstanding also the long outstanding. And that’s a fair question. The reason is that three years ago when they had actually disputed the contracts at that point, they had also disputed 30 clause of the contracts, 30 clauses of the contract. And while they paid the bulk of it, those two, three things that are still outstanding, still have to get resolved.
Now what are those three things. One is the fact that they have said that for GDI, which was the generation base incentive, that since the center was paying that, which is equal to about 50 per cycle unit. That they should not be paying that. And so that, for example, forms or is a reasonable amount of capital that is still tough. So we need cost of, sort of, cost processes to go through on these couple of items to get them to pay the old outstanding. So that really is really the issue. Our sense is that all of those things will get resolved, but it’s just that we have to also cost process to get some of those things done, because those payments, they have put in to dispute some time ago. And there — as I said, there are legal proceedings are going on in those.
So those will get resolved eventually, and those payments will also happen. But it is not because they’re not paying the current billings. They are, and so are all the other states as well.
Nikhil Nigania: Great, great. Good to hear that Sumant. Just one last question then was on number of employees. So I think I missed this last time. So in the annual report, if I see the number of employees have gone up from about 1,000 on average for FY ‘21 to 2,000 now. When I understand, I mean, this is largely as ReNew enters, manufacturing and other areas and capacity growth. How do we see this going forward? Do we see this continue to rise as hydrogen becomes sizable more of cities come up? Or how do you look at it?
Sumant Sinha: Yes. So first of all, we are very focused on costs because obviously, we have to look at our manpower productivity and man power cost, that’s very critical and that’s something that we are monitoring very, very carefully, okay. But you’re right that most of the people and [Indiscernible] are happening primarily on account or manufacturing. Because obviously, these are more people-intensive areas than the project businesses. And so a lot of the growth is going to happen in that area. So as we build out our module side and then the cells are on the wafer side eventually, then we will have a lot more people coming with the company as a result of that. Now exactly how many will depend on the pace of the readout, so I can’t give you a number for that.
So that’s as far as manufacturing is concerned, as far as things like Green Hydrogen are concerned, of course, we have a development and business development team for that project development and business development team for that. But that’s not that many people. Because as you know, most of the execution eventually will sit in the RE arm of our company, given that most of the capital is going to go into the renewable energy part, and then, of course, there’ll be some of the electrolyzer part, but we’ll hire those people only when we get to execution for those areas. We will not be obviously having the people in the business itself. So we do have some people for project development and business development, but that’s like in the 10s, it’s not even in the hundreds.
It’s smallest numbers. So I think that’s really where things are right now. And then depending on the rollout of the business, in a fairly cost managed way, we will think about hiring more people.
Nikhil Nigania: Understood. Thank you so much. Thank you so much for answering my questions.
Operator: This concludes the question-and-answer session, and that does conclude our conference for today. Thank you for participating. You may now disconnect.
