New tender has been floated by Punjab Renewable Energy Development Agency for solarization of 75000 grid connected pumps under feeder level solarization of Component C. This scope of work involves providing Remote Monitoring capability for the government agencies to the solar power plant.

If it was a straightforward component B tender – rough tender size would be in ballpark range of 1800-1900cr for 75000 pumps. But I will not be surprised if the size of Component C order for 75000 pumps is much higher than 1900cr because it is more complex with many parties involved.

Its nice to see the movement in Component C space for PM Kusum Scheme, but would be skeptic until the execution starts happening at the ground level for Component C.

Hello everyone, I wish to share an update on latest supreme court judgement w.r.t. mining companies.

Couple of weeks back there was a decision by Supreme court that State governments can levy royalty (it is not a tax) on Mining of minerals. The question was, will it be Retrospective or Prospective?

Yesterday there was a big announcement from the Supreme court with respect to Mining Royalty Case:

1. The Supreme court has said that States can collect previous dues on royalty and tax on mineral bearing land w.e.f. Apr 01, 2005.
2. The amount can be paid in staggered manner in next 12 years starting from Apr 01, 2026 at the rates that were decided then (FY2005), but interest and penalties on past due will not be levied.
3. This decision will significantly impact industries like mining (NMDC, Vedanta), metal industries (Tata steel, JSW steel, SAIL, NALCO), cement industries (India cements, ramco cements for limestone mining).
4. Total estimated overdue amount is ~2 lakh crore of which ~60,000 crore is from PSUs.
5. Tata steel in Q1 has stated that they have created contingent liabilities of ~17,300 crore towards Odisha government for retrospective effect of these claims while Hindalco stated that they donot have any pending claims. SAIL also mentioned in the Q1FY25 concall that there will not be much impact on them (haven’t shared any estimated amount in case of retrospective effect).
6. Steel industry is already facing challenges due to cheaper imports from China resulting in lower realisations (sales amount/tonne) industry-wide.
7. This decision may also impact capex plans getting delayed from some companies as there would be additional outgo of funds due to the same.

Update

Added Credit Access Grameen at 1165 with 5-6% allocation, seems beaten down. Kind of studied and found to be a quality company at maybe fair price.Near term upside triggers are absent rather downside triggers are playing out

High chance of going more low as MFI cycle unfolds (If goes bad), but willing to take the risk as I might plan to hold as the Parent exit story unfolds (I personally wish KMB acquires of at all – Not sure what anyone or I gain out of it)

Added as valuation is at bottom (assuming no book value losses will be posted given the past track record as profits and BV bloated in this upcycle)

thanks a lot Rudra for your prompt response.