Hi Mayank, thanks for the feedback! The main reason that RTM is a large part of revenue is that TBCB was introduced only in 2011, while many of the current transmission projects run by Powergrid were commissioned earlier. Also , even now, the government uses RTM route for many large or sensitive projects and also when they was to speed up the commissioning.
From the annual report, they state 7k ckm of transmission lines and 30k MVA transformers are the aggregate TBCB assets. Overall transmission lines are 174k ckm and transformers are 500k MVA. So, 94%~96% of assets are under RTM at the moment.
The TBCB route would have reduced dependency on CERC tariffs, but faces different kinds of risks, such as very high maintenance or cost inflation. In the RTM model, it is “cost-plus”, so this risk is not material. Powergrid is pursuing both types of projects. The company’s MD mentioned during the last concall that Powergrid is targeting to win 50% or more of all TBCB projects until 2032. However, he also mentioned stiff private competition, with 5~8 other bidders competing for the contracts.
However, going forward, I’m not sure whether TBCB share would increase. In the current “work-in-hand” projects, 74% of them are RTM and 26% are TBCB.
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