Justin Clare: Okay, appreciate it. Thank you.
Operator: Our next question comes from Amit Bhinde from Morgan Stanley. Please go ahead.
Amit Bhinde: Hello Sumant. I had two questions, one with the wind PLF situation right now and be thinking of reassessment, how are we looking at the near-term forecast and any update on the reassessment that you are planning?
Sumant Sinha: Yes. Those are both good questions. So look, as you know, in the guidance that we’ve given for the current financial year, we had already assumed a lower sort of wind speed or lower wind forecast for this year. And that is something that is almost being met as far as the wind speed of this year is concerned, although, of course, it is significantly below what you might consider to be the long-term mean. The chances are that we carry on with the same kind of — the same level of forecast into next year as well. We are unlikely to sort of change that substantially from the current level because I think it’s still — it’s sensible to be prudent. We’ve had, as you know, now three not good years of wind in a row, and that’s a fairly rare event, but it is not that it is unknown to happen.
It has happened in the past in other geographies as well. Typically, when, that kind of thing happens, then there is at some point it bounce back, but it’s hard to say when that might happen and how much that might be. So I think we will, therefore, from a prudency standpoint, just carry on with the very conservative guidance that we deal that we gave this year into next year as well. As far as the long-term proper assessment is concerned, that is something that we’re working on right now. We are discussing with a number of the wind forecasting agencies. And I think the good news in some of the early conversations we’ve had with them is that the technologies, the methodologies, and the science that we use to forecast long-term wind in India is no different from what they use anywhere else in the world.
And so therefore, I would feel that, as we go deeper into this work, that we should be able to get a good sort of view on a lot of these issues. And we should be able to come back to all of you, I think, very soon on this matter. But I think the other thing I should also say is that because of the experience of wind in the last two to three years, we’ve already become very conservative in our forecast for wind in the future as well, not just for our existing assets but also the assets that we’re going to build in the future. So a lot of that conservativism we’re already building into our future forecast. So I think that you won’t really see any big data from the current year into next year and so on simply because, as I said, we’ve already reduced our forecast quite substantially.
And for our future projects, we are also being already quite careful about the forecast that we’re now doing. So I would not anticipate any further reductions from this level in terms of our guidance. But as I said, we will just cross-check and re-collaborate all of this with the wind agencies and get back to all of you with more specific and firm sort of views from them from these forecasting agencies by the next time that we interact with you all, hopefully, in the next few months’ time.
