As per the Concal KUSUM pump rates have been finalised by MNRE and only one issue is pending which is related to GST rate to be applicable for the project.
Company has advised that: (at Time stamp 24.09
SECI is handling the current KUSUM 3 project and SECI earlier has handled power project where GST rate is 18% (as per services) where as the rate advised by Government GST department earlier is 13.9% (30% services and 70% Product under KUSUM Scheme). Now clarification is pending whether rate should be 13.9% or 18%. Promoter on a lighter note has said that he will go and sit in MNRE office till the matter is resolved… (35.20)
Clarification seems to be a minor issue and should get resolved at an early date.
Company has advised that the GST rate is not going to affect them as they claim input credit on the same.
Company also expects that GST issue will be resolved within this month and there are no other issues.
Now the big question is once the GST issue is resolved how much further time it will take for implementation of scheme by state and selection of beneficiaries…
Company is confident of installing 10000 Pumps per month once the scheme is fully implemented, which even if we consider 5000 Pumps turns out into revenue of 150 Cr per month.
Solar Panel prices have come down which will help in improvement of margins.
Company is also looking for opportunities in EV segment and has already supplied around 400 motors for buses which is running in road(names not disclosed due to NDA).(Time Stamp 36.00). More than 28 patents and and has hired Engineers from IIT. 175000 Controllers already supplied for solar pumps. Two wheelers (motors) already developed and 4 wheelers under development.
Company has already received LOI from Haryana Government. (total Pumps to be implemented by Haryana is around 90000 and Company is expecting around 30000 from Haryana).
Company is positive and welcomes competition from KSB and Kirloskar Brothers, however it is is confident that the performance of Shakti pumps in Solar Pumps is 30% higher than others.
The Current Kusum Pricing will fetch higher margins for the Company.
Company is also looking for selling of Solar pumps to other OEM also.
Total EV Capex can be around Rs 250 Cr for developing motors for 2 wheeler and 4 wheeler.
KUSUM implementation is expected to shift from MNRE to SECI.
Number of Pumps is increasing from Kusum 1 to Kusum 2 to Kusum 3.
Uganda project will be implemented gradually.
Disclosure: Invested and gradually increasing position.
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