Puneet Gulati: Right. But you have land for the entire 3.5, which is one good thing.
Sumant Sinha: Yes. I mean, we don’t have to acquire it right now as long as we have good line of sight into where that land is. In some cases, you can block the land without actually paying any real significant amount of money. But the important thing is as long as you block the transmission capacity, then, you know, that’s the most critical factor. And with the LoAs in hand, we are, in fact, able to block the transmission capacity. And so for all the capacities that we have, all the 3.1 gigawatts that we run, we have blocked the transmission capacity for all of that.
Puneet Gulati: Understood. That’s very helpful. And lastly, any progress on asset recycling? Anything that you did in Q2 and what’s out there for the second half?
Sumant Sinha: Yes, Kailash, can you take that?
Kailash Vaswani: Yes. So, we have consummated transactions of almost around $93 million till date. And we are working on a few in the pipeline. But the timing on asset sales is, you know, really hard to say because when the deals get done, so how much will get done in Q3 versus Q4, we are working towards it.
Puneet Gulati: And $93 million would include the Gentari acquisition and its results?
Kailash Vaswani: That’s right. It includes the two deals or three deals rather. It’s the Gentari deal, the 100 megawatt sale to [Technip Solar], and the third one is the amount that we got from [Northland solar transmission assets].
Puneet Gulati: Okay. Understood. That’s everything. Thank you so much and all the best.
Kailash Vaswani: Thank you.
Operator: The next question comes from Justin Clare from ROTH MKM. Please go ahead.
Justin Clare: Yes. Hi. Thanks for taking our questions there. So I want to ask just about the amount of capacity here. So there’s, it seems a significantly larger opportunity for renewable projects here in terms of the auctions that are expected annually. So I was wondering if you could speak to the potential for bottlenecks to emerge given the larger volume of capacity. And then, maybe you could speak to your strategy in managing those potential bottlenecks.
Sumant Sinha: Justin, thank you so much for the question. But, you know, you asked me a question that I can spend many hours discussing with you as you can imagine because this is obviously essential to our business. But just to give you a very quick sense of that, I think the key issues that are required for executing a project, of course, are PPAs, which as we discussed, there’s ample opportunity for us to win capacities there. The second is transmission. And that is not a limiting factor right now because the government is building transmission capacity quite at quite rapid pace. And as I said, once we win an LoA or we win a bid and get the LoA, then we’re able to block the transmission capacity. And if there is no transmission capacity available, then the execution timelines are automatically moved forward.
So transmission does not become therefore a problem for us to rule out and it should not become. The third is land. Land, of course, we’re working on constantly and we’re always trying to look at what is the forward pipeline and we’re trying to block land for three years out, four years out projects. And we’re also obviously putting up a number of net marks in different parts of the country. We have several hundred net marks that are now up and running to measure wind. And in solar, we have blocked by three – by a number of mechanisms transmission capacity in the state of Rajasthan, which allows us to execute projects even for two, three years beyond our existing pipelines. So, there is a lot of land available in Rajasthan for solar projects.
So land is handled on that basis. And then, of course, there’s the issue of people and organization. That is something that, you know, we have our own in-house capability of execution in both wind and solar. And that is something that we constantly re-evaluate and we are looking at scaling that up. But slowly, because obviously we want to build an organization that, is high quality and that execution capacity should be sustainably improving rather than, just sort of going up on a one-time basis. And then, of course, there is the issue of capital. And capital, I think we are looking at between a mix of internal capital and asset recycling to raise capital for funding some of these projects. So, I think that’s how we’re looking at these five key areas.
The sixth actually is supply chain. And there, obviously, we have as the largest wind player in the country, very key relationships with the important OEMs, which go out a few years. And so – and we get, you know, best terms from these wind OEMs, because we are in fact the largest buyer of wind turbines in the country. And as far as solar is concerned – as I’ve discussed multiple times with all of you, that’s an area where government policy is evolving and changing. And therefore, we have tried to – stay one step ahead of government policy by making sure that we have invested as much as we need to have that security of supply. And that, therefore, also allows us to keep bidding with a high degree of confidence around being able to source and procure our own modules.
And that’s actually becoming a significant competitive advantage. So that’s – those are some of the issues that we are working on to make sure that we’re able to continue to execute, you know, two to three, and then sort of we go up to a year, and then try to increase that – in years down the road. I hope that answers your question.
Justin Clare: Got it. Okay. Yes, no, very helpful. And then I guess just on the supply chain, you have your own in-house module manufacturing today. I was wondering if you could share what the cost structure was for the modules that you’re producing in-house, and how that might compare, to what’s available in the market, including the cost of the import duty, and how this might give you a relative advantage in terms of your cost structure?
