Sumant Sinha: Yes. Nathan, we haven’t come out with those numbers right now, right? But please reconfirm.
Nathan Judge: No, not just yet. But I mean, if you want to give some ranges, that’s fine.
Sumant Sinha: Okay. Thank you. So yes, Justin, the thing is that, as you know, import duties in India for solar modules are about 40%. And that gives us sufficient protection against imported modules. The cost differential between what we produce in India and what is produced in China – as just for the module, in our estimation is about 10% to 15%. And so, the 40% protection is sufficient to allow us to not have that as an issue for us. The second thing is keep in mind that from – that way we also have the approved list of modules in manufacturers, which is really a hard barrier to import, which the government had imposed from this April, but had deferred it for a year. And it is coming back in April of next year, which will then prevent any imports from coming in at all, notwithstanding any duties and everything else.
And so at that point, it will not even just become a cost issue. It will become an availability issue, because anybody who has access to modules, will be able to continue to execute projects, and people who don’t obviously will not be able to. Our sense is that module supply next year will be in deficit, because obviously while capacity is coming up, it does take time to essentially get it to a level, where people have good quality, and stable production in place. Having said that, our sense also is, although there is no specific data that is there that allows us to point to, but just based on people that are working with us and so on, our cost of production is very competitive among other Indian companies. So that is really also something that we would like to benchmark ourselves to.
Justin Clare: Okay. I appreciate it. Thank you.
Sumant Sinha: Thank you.
Nathan Judge: And Samant, there is actually an inbound email question from Girish [ph] at Morgan Stanley that, is related to that. So if I could just ask this. Basically, are we open to selling a minority stake in our solar manufacturing? And there seems to be an overcapacity coming online in India and given strong response to PLI. What are our thoughts about those?
Sumant Sinha: Yes. So, no, we certainly are open. We’re not willing to keeping a 100% of the solar plant. As we stated many times, the reason that we set it up is, to assure ourselves of supply security. And as long as we’re able to do that, we are, you know, that meets our primary objective. As far as overcapacity is concerned in the Indian market, that is something that we’ll have to wait and see, because obviously while there are a lot of people who have announced plans, how many of those actually rectify, we will have to monitor. And the second thing is also that a lot of the earlier capacities that, have been set up are actually going to become uncompetitive, because they just won’t have either the efficiency, the production or the ability to make the latest generation of modules. So to some extent, some of the earlier capacities will have to be discounted in the calculation of the capacities that are coming up. Yes. So that’s my response on that, Nathan.
Nathan Judge: Thank you. Jason, go ahead to the next question. Thank you.
Operator: [Operator Instructions] And our next question comes from…
Sumant Sinha: Actually, if I could just add…
Nathan Judge: Yes Sumant, go ahead. Go ahead Sumant, go and finish your thought.
Sumant Sinha: Okay. Yes. No, no. The only other thing I would say is that also keep in mind that a lot of the modules are being exported, shipped out of India to the U.S. and other places. And so that also adds to the deficit – and will add to the deficit in the country next year.
Nathan Judge: Go ahead, Jason. Thank you.
Operator: Thanks. And our next question comes from Nikhil Nigania from Bernstein. Please go ahead.
Nikhil Nigania: Yes. Thank you. Congratulations on a good set of numbers. My first question is regarding the RTC and Peak Power projects. Good to see their guidance being maintained. But just wanted to clarify that transmission is not a bottleneck for these two assets, when they’re commissioned in Q4, power evacuations and the grid evacuations will start happening.
Sumant Sinha: One, Nikhil, I can categorically confirm that to you, that transmission is not a bottleneck. Largely, because we are actually building a lot of it ourselves. The very first project opting in RTC, there are three different wind projects and one solar project. The first wind project was making to a substation that we ourselves are making. And that we have now commissioned and – that has been charged. And so therefore, we just waiting – going through the connectivity protocols now to connect the first project into that [Koppal] substation – that we did. The second one also we are building, actually, which is another substation. And so therefore, obviously, we have clear understanding and control of when the substations are coming up.
The third one is getting connected to a substation that has been made by our third-party, which we are closely monitoring and we are in touch with them. And that also looks like it’s on track. So that should not lead to any problems either. So I don’t anticipate any transmission related issues in commissioning these projects.
