Gujarat Industries Power Co Ltd Management Discussions

Your Company, jointly promoted by Gujarat Electricity Board (GEB) [now Gujarat Urja Vikas Nigam Limited (GUVNL)], Gujarat Alkalies and Chemicals Limited (GACL), Gujarat State Fertilizers and Chemicals Limited (GSFC) and Petrofils Cooperative Limited (PCL) to cater to their captive power requirements, has completed Forty years on 01^st June, 2024, since its establishment in the year 1985.

It is a matter of pride that your Company, which began as the first group captive power plant in the country, has transformed into a dynamic Independent Power Producer (IPP) with total installed generation capacity of 1184.4 MW including RE capacity of 374.4 MW.

SECTOR OVERVIEW Power Generation in India:

An overview of the Power Sector in India during FY 2024-25 is given hereunder:

Electricity Generation (MUs) Target vis-a-vis Achievement for FY 2024-25:

Particulars	Thermal	Hydro	Nuclear	Bhutan (Import)	Total
Target * (MUs)	1444943	147709	55348	8000	1656000
Achievement (in MW)**	1363890	148634	56681	5484	1574689
Achievement (in %)	94.39	100.63	102.41	68.55	95.09

*Figures are rounded off to nearest digit.

** Provisional based on Actual cum-Assessment. [Source: Central Electricity Authority (CEA)] Installed Generation Capacity (As on 31/03/2025)

All India	Thermal	Nuclear	Hydro	RES @ (MNRE)	Grand Total
	Coal/Lignite	Gas	Diesel	Total
MW*	221813	24533	589	246935	8180	47728	172368	475212
%	46.68	5.16	0.12	51.96	1.70	10.00	36.30	100.00

*Figures are rounded off to nearest digit [Source: Central Electricity Authority (CEA)]

The installed generation capacity in the country, as on 31^st March, 2025 was 475212 MW. Coal, with around 47% share, continues to be the primary source of fuel for power generation in India, whereas Renewable Energy Sources (RES) accounted for around 36.30% of the Installed Generation Capacity as on 31/03/2025, emerging as increasingly significant contributor to the installed generation capacity in the country.

The break-up of Renewable Energy installed capacity addition of 172368 MW as on 31^st March, 2025 is as follows:

	Small Hydro Power	Wind Power	Bio Power	Solar Power	Total Capacity
			BM Power/ Congen	Waste to Energy
MW	5100	50038	10743	840	105647	172368
%	2.96	29.03	6.23	0.49	61.29	100

The above figures indicate that Wind and Solar Power account for nearly 90% of the installed generation capacity addition, demonstrating the success achieved due to Govt. of Indias thrust for development of Wind and Solar Power as major RE source and thereby reducing carbon footprints.

Electricity - Capacity Addition and Generation Target vis-a-vis Achievement:

The Indian power sector has historically been characterized by demand-supply gap which has been increasing over the years. The capacity addition and electricity generation for financial year 2024-25 shown below amplifies the same:

(a) Generation Capacity Addition vis-a-vis Achievement for 2024-25:

The fresh Generation Capacity Addition for FY 2024-25 against targeted capacity addition till 31/03/2025 is shown below:

	Thermal	Hydro	Nuclear	Total
Target Addition (in MW) *	15360	3320	1200	19880
Achievement (in MW) *	3875	800	0	4675
Achievement (in %) *	25.23	24.10	0.00	23.52

*Figures are rounded off to nearest digit. [Source: Central Electricity Authority (CEA)].

As seen above, the capacity addition of 23% achieved during the FY 2024-25 against targeted addition. Electricity Generation (MUs) Target vis-a-vis Achievement for FY 2024-25:

	Thermal	Hydro	Nuclear	Bhutan (Import)	Total
Target * (MUs)	1444943	147709	55348	8000	1656000
Achievement (in MW)**	1363890	148634	56681	5484	1574689
Achievement (in %)	94.39	100.63	102.41	68.55	95.09

*Figures are rounded off to nearest digit.

**Provisional based on Actual cum-Assessment.

[Source: Central Electricity Authority (CEA)].

(b) Electricity Generation Target of conventional sources for FY 2024-25:

The electricity generation target of conventional sources for the year 2024-25 was fixed as 1900 Billion Units (BUs) i.e. growth of around 23.78% over actual conventional generation of 1535 BUs for the previous year (2023-24) [Source: Central Electricity Authority (CEA)].

The conventional generation during 2024-25 was 1575 BUs as compared to 1512 BUs generated during 2023-24, representing a growth of around 04.17%

[Source: Central Electricity Authority (CEA)].

(c) Target Capacity addition for FY 2024-25 from conventional sources

As per CEAs Load Generation Balance Report (LGBR) for year 2024-25, a capacity addition of 19,680 MW has been considered for the year 2024-25 comprising 14,040 MW of Thermal, 3,790 MW of Hydro and 1,900 MW of Nuclear capacity.

Thermal Plant Load Factor (PLF):

The average All India Thermal PLF (%) (Coal & Lignite based) stood at 68.12% for FY 2024-25 as compared to 69.09% for FY 2023-24.

(Source: Ministry of Power).

Fuel Availability for Power Generation:

Availability and quality of coal and availability of gas for power sector continued to be a critical issue for thermal generation growth.

Coal:

With around 46.67%, i.e. about 221813 MW, of the installed capacity of 475212 as on 31^st March, 2025 being contributed by Coal based Power Plants, Coal continues to remain a key fuel for power generation.

As per Gross Energy Generation Programme approved by Ministry of Power, Coal-based generation is expected to continue to be the predominant source of electricity accounting for 1373 Billion Units (BU) i.e. 72.26% of 1,900 BUs estimated generation for the year 2024-25.

(Source: Load Generation Balance Report (LGBR) 2024-25)

The domestic coal requirement has been estimated to be 866.4 Million Tonne for the year 2026-27 and 1025.8 Million Tonne for the year 2031-32 and estimated requirements of 28.9 MT of coal imports for the plants designed to run on imported coal

(Source: National Electricity Plan 2022-32).

Gas:

Owing to the reducing availability of Natural Gas from the domestic gas fields and also due to increasing cost of Imported R-LNG, the share of gas-based power generation has steadily declined over the last few years. The installed capacity has marginally decreased 24533 MW in the year 2024-25 as against 25038.21 MW of year 2023-24 (decrease by 2.05% in installed capacity terms).

Nationally, Gas available from KG basin has been allocated to existing projects only and Power sector has been given third priority in gas allocation after Fertilizer and LPG Sectors.

As per the Gross Energy Generation Programme, gas-based generation is estimated at 35 Billion Units (BUs) i.e.1.82% of 1900 BUs estimated generation for the year 2024-25.

[Source: Load Generation Balance Report (LGBR)2024-25].

The National Electricity Plan (NEP) 2022-32 envisages no increase in installed capacity of gas-based power plants of 24824 MW with a projected share of 2.8% in total Installed capacity (projected) of 900422 MW by end of 2031-32.

[Source: National Electricity Plan (NEP) 2022-32].

The Ministry of Power (MoP) has recommended that Power sector be given the highest priority as far as domestic gas allocation is concerned in view of power shortage in the country.

Renewable Energy:

With the rising demand for electricity and the limited availability of conventional fuel sources, the need to harness alternative energy solutions, particularly renewables, has become more urgent than ever. Increasing awareness of the advantages of clean energy has further driven a renewed commitment from all stakeholders across the energy ecosystem.

Given the escalating challenges posed by climate change, the imperative to strengthen domestic energy supply and diversify sources remains critical. As a result, renewable energy continues to play a pivotal role in shaping Indias energy sector and ensuring long-term sustainability.

Indias steadfast commitment to ambitious climate goals has earned global recognition. Our achievements align with our aspirations, demonstrating remarkable progress in sustainable energy. India boasts the worlds fastest-growing renewable energy capacity and has emerged as a premier destination for investments in the sector. With a clear vision for the future, India is dedicated to achieving energy independence by 2047 and reaching Net Zero emissions by 2070.

The Ministry of New and Renewable Energy (MNRE) has reported robust progress in Indias clean energy sector for the Financial Year 2024-25. With a record annual capacity addition of 29.52 GW, the total installed renewable energy (RE) capacity in the country has reached 220.10 GW as of 31^st March, 2025, up from 198.75 GW in the previous fiscal. This performance reflects Indias steady advancement towards the target of achieving 500 GW of non- fossil fuel-based capacity by 2030, as part of its commitment under the Panchamrit goal set by Prime Minister Shri Narendra Modi. [source: MNER, GOI press release dated 10/04/2025]

Renewable Energy accounted for 36.27%, i.e. 172368.18 MW, of the total installed capacity as on 31/03/2025. [Source: Central Electricity Authority (CEA)].

Source wise cumulative RE Generation for FY 2024-25

Source	Generation in Million Units (MUs)*	Generation in %
Bagasse	9335	02.31
Biomass	3739	00.93
Small Hydro	11568	02.87
Large Hydro	148634	36.82
Solar	144150	35.71
Wind	83347	20.65
Others	2870	00.71
Total	403643.17	100.00

*Rounded off

Cumulative RE capacity as on 31/05/2025

The cumulative RE installed capacity (in MW) for all India and Gujarat as on 31/05/2025 was as follows:

Sector	Achievements (May 2025)	Cumulative Achievements as on 31/05/2025
		All India	Gujarat
Wind Power	1254.43	51292.25	13624.78
Solar Power	5187.80	110834.28	20093.26
Small Hydro Power	1.50	5102.05	106.64
Bio Mass (Bagasse) Co-generation	0.00	9821.05	65.30
Bio Mass (Non-Bagasse) Co-generation	0.00	921.79	12.00
Waste to Power	0.00	309.34	7.50
Waste to Energy (off grid)	10.70	541.57	45.05
Large Hydro Power		47928.17	1990.00
Total	6454.43	226750.77	35944.53

Strategy for enhancing renewable energy capacity

To address the growing energy demand and mitigate climate change risks, transitioning from fossil fuels to renewable energy is crucial. To accomplish this objectives, Indias power sector is also undergoing a transformative journey, brimming with enthusiasm for tapping into Renewable Energy from diverse renewable sources.

As per the mandate, Ministry of New & Renewable Energy has taken several initiatives to promote diversified deployment and production of RE technologies which aims to accelerate Indias energy transition to renewable sources, reduce dependence on fossil fuels. Some of the important schemes with this objective are Pradhan Mantri Kisan Urja Suraksha Evam Utthaan Mahabhiyan (PM-KUSUM) for decentralised solar aiming to energise the agricultural pumps through Solar power, Roof Top Solar (RTS) Programme , Central Public Sector Undertaking (CPSU) Scheme for Grid-Connected Solar Photovoltaic (PV) Power Projects, Development of Solar Parks and Ultra Mega Solar Power Projects, Performance Linked Initiatives (PLI) Scheme for National Programme on High-Efficiency Solar PV Modules , Green Energy Corridor Scheme for construction of intra-state and inter-state transmission lines for power evacuation and grid interaction etc. for development of Solar Power sector. Ministry has also taken various key policy initiatives and schemes to tap the potential of other renewable Energy sources like Wind power, Bio Power and Small Hydro Power.

In line with the Prime Ministers announcement at COP26, ministry of New and Renewable Energy is working towards achieving 500 GW Non - fossil-based electricity generation capacity by 2030.

The Government of India has introduced a range of policies and initiatives to encourage the adoption of renewable energy technologies. These measures encompass incentives, subsidies, and regulatory frameworks designed to incentivize the transition to renewable energy sources. Notably, the National Action Plan on Climate Change (NAPCC) emphasizes the National Solar Mission and aims to significantly increase the share of renewable energy in the national energy mix.

Details / glimpse of major ongoing various schemes of the Ministry during the year are as follows:

• Pradhan Mantri Kisan Urja Suraksha Evam Utthaan Mahabhiyan (PM KUSUM): During the year 2024, the scheme has seen tremendous growth in terms of installation. Till December, 2024 397 MW have been installed in Component A, 6.16 Lakhs numbers of pumps have been installed in Component B & 1.12 Lakhs pumps has been solarized under component C of the scheme.

• The Pradhan Mantri Surya Ghar: Muft Bijli Yojana

(PMSG: MBY): This scheme targets to achieve rooftop solar installation in 1 Crore household in residential sector by FY 2026-27 with the outlay of 75021 crores. PMSG: MBY has shown remarkable progress since its launch as on 31/12/2024, 7.48 lakh rooftop solar systems have been installed.

• Central Public Sector Undertaking (CPSU) Scheme for Grid connected Solar Photovoltaic (PV) Power Project: as of 31/12/2024, around 8.2 GW of projects have been awarded under this scheme, with around 1.81 GW commissioned and balance is under implementation.

• Development of Solar Park and Ultra Mega Solar Power Projects: Under this scheme, 55 Solar Parks with cumulative capacity of 39,958 MW in 13 states have been approved, of which 18 Solar projects with an aggregate capacity of 10,856 MW have been fully developed and 6 Parks with aggregate capacity 4775 MW partially developed. Solar Projects of total capacity 12,209 MW have been commissioned in 24 parks.

• PLI Scheme: National Programme on High Efficiency Solar PV Modules: MNRE, GOI is implementing the production Linked Incentive (PLI) Scheme for National Programme on High Efficiency Solar PV Modules, with outlay of 24,000 Crores. 48337 MW fully/ partially integrated solar PV module manufacturing capacities have been awarded under the schemes and are under implementation.

• Green Energy Corridor: As on 31/12/2024, 9136 KM of Intra State Transmission lines have been constructed and 21413 MVA intra state substations have been charged, under phase-I of the Intra State Transmission System (InSTS) Green Energy Corridor (GEC).

Under the Phase - II of the InSTS GEC, 72 out of 91 packages have been tendered as on 31/12/2024 of which 52 packages have been awarded with 384.24 Crores disbursed to the States.

• Human Resource Development Programme: A total of 57,372 suryamitras have been trained as of 31/12/2024 of which 28,500 have gained employment.

• Renewable Energy Research and Technology Development (RE-RTD) Programme: Under RE -RTA Programme, 11 R&D Projects were continued with emphasis on indigenization, cost reduction, reliability and efficiency improvement of renewable energy system and components.

• Solar Wind Hybrid: Revised Guideline for Tariff Based Competitive Bidding Process for Procurement of Power from Grid Connected Wind Solar Hybrid Projects was issued on 21/08/2023 to promote renewable capacity additions and RPOs fulfilments, facilitate a transparent and fair procurement of electricity through competitive means; provide for a standardized framework for an Intermediary Procure as an Aggregator / Trader; and provide a risk sharing framework between various stakeholders.

• Wind Energy: India has fourth highest wind installed capacity in the world with a total installed capacity of 48.16 GW as of 31/12/2024 of which 3.42 GW was added during the calendar Year 2024. In addition to 26.19 GW of projects are under lamentation.

• Bioenergy: as on 31/12/2024, the cumulative installed capacity of bioenergy projects (cogeneration, waste to energy, and waste to power) stood about 11.35 GW. a total 51.04 Lakhs of small biogas plants (1-25m3) and 368 medium sized biogas plants (above 25m3 - 2500m3) with cumulative off-grid power generation capacity of 13.10 MW have been installed.

• Green Hydrogen: The Green Hydrogen Mission, was launched on 04/01/2023 with 19,744 Crores outlay from 2023-24 to 2029-30 including an outlay of 17,490 crores for strategic Inventions for Green Hydrogen Transition (SIGHT) Programme.

Tranche I of the mission has awarded 1500 MW of electrolyze manufacturing capacity to 8 Companies and another 1500 MW has been awarded to 11 Companies under tranche II. In January 2024, 10 Companies secured contracts for 412000 tons per annum of Green Hydrogen with bids for an additional 450000 tons underway. In June 2024, bids for 739000 tons of Green ammonia were invited, while Oil PSUs are processing tenders for 42000 tons per annum of Green Hydrogen for refineries. In 2024. MNRE formulated the several new guidelines for the implementation for the various components of the mission.

NEW INITIATIVES

Apart from the progress achieved under the schemes outlined as above, The Ministry introduced policy reforms and enablers to push progress in segments like Green Hydrogen, offshore wind, solar rooftop, decentralized renewables and geothermal energy. Key examples are noted below:

• Viability Gap Funding (VGF) Scheme for 1000 MW Offshore Wind Energy Projects

On 11/09/2024, the Ministry launched the VGF Scheme with a total outlay of 7,453 Crores to support offshore wind energy projects until the year 203132. This included 6,853 crores for installation of 1 GW capacity 500 MW each off the coasts of Gujarat and Tamil Nadu and 600 crores for upgrading post infrastructure to support project logistics.

• Lakshwadeeps first on-grid solar plant with battery storage

On 03/01/2024 PM Modi inaugurated this in Kavaratti featuring a combined solar capacity of 1.7 MW and 1.4 MWh Battery Energy Storage System (BESS) marking a significant step to save enormous financial outflow towards diesel consumption and thereby reducing the consumption which will ultimately help in decreasing Lakshwadeeps reliance on diesel-based power generation.

• Empowering communities through Model Solar Village

On 09/08/2024 the Ministry notified the Model Solar Village Guidelines under PM- Surya Ghar Muft Bijli Yojana. This Scheme aims to establish one Model Solar Village per district to promote solar adoption and energy self-reliance.

• New Solar Power Scheme (for Tribal and PVTG Habitations / Villages)

This scheme will cover electrification of One Lakh un-electrified households (HHs) in Tribal and PVTG areas identified by Ministry of Tribal Affairs (MoTA) by provision of off-grid solar systems.

This scheme includes provisions for providing off-grid solar lighting in 1500 Multi-Purpose Centers (MPCs) in PVTG areas as approved under Pradhan Mantri Janjati Adivasi Nyaya Maha Abhiyan (PM JANMAN) along with solarization of 2000 public institutions through off-grid solar systems as approved under Dharti Aabha Janjatiya Gram Utkarsh Abhiyan (DAJUA). The off-grid solar systems shall be provided only where electricity supply through grid is not techno-economically feasible.

• Green Hydrogen

Green Hydrogen initiatives in India have seen significant advances in the year 2024. In 2024 MNRE sanctioned three Pilot Projects in Steel and in Mobility the deployment of 40 vehicles with 11 Hydrogen refueling stations. Additionally, MNRE launched a new scheme with a 200 crores outlay for innovative Pilot Projects focusing on Green Hydrogen Production and utilization in residential, commercial and community-based applications. Green Hydrogen Hubs scheme guidelines were introduced to support large- scale production. The Government has also prioritized infrastructure development and research in the Green Hydrogen Space.

• Task Force on Geothermal Energy

The MNRE constituted this to review the draft of the "India Geothermal Energy Development Network" and review the global status of the technology to shape strategic recommendations for harnessing geothermal energy in the Country. (Source: MNRE Annual Report 2024-25).

Potential for Solar and Wind Power based Renewable Energy

Based on availability of land and solar radiation, the potential for Solar Power is assessed to be around 750 GWp, out of which Gujarat with estimated potential of around 36 GWp (i.e. around 5%) has added cumulative capacity of 16795.77 MW till 31/12/2024. The total solar power installed capacity was 97864.75 MW as on 31/12/2024. (Source: MNRE Annual Report 2024-25).

Further, as per MNRE assessment, the gross Wind Power potential is 1 163.85 GW at 150 meter above the ground level, out of which Gujarat with estimated potential of around 180.79 GW (i.e. around 15%). (Source: MNRE Annual Report 2024-25). The country currently has the fourth highest wind installed capacity in the world with total installed capacity of 48.16 GW as on 31/12/2024, of which 3.42 GW was added during the calendar year 2024. The total Wind power installed capacity was 48163.155 MW as on 31/12/2024, out of which Gujarat has installed 12473.78 MW wind power capacity as on 31/12/2024. (Source: MNRE Annual Report 2024-25).

OPPORTUNITIES AND CONCERNS Opportunities:

Gross Generation Programme- 2025-26:

The Ministry of Power has approved the following Gross Generation Programme of CEA for the year 2025-26:

Fuel / Source	Generation Programme (Billion Units)
Coal	1429.00
Lignite	37.00
Natural Gas	37.00
Diesel/ High Speed Diesel (HSD)	0.40
Naphtha	0.00
Thermal Total	1503.40
Nuclear	57.00
Hydro	156.00
Bhutan Imports	9.00
Total	1725.40
Renewables	275.00
Grand Total	2000.40

[Source: Central Electricity Authority LGBR 2025-26]

Power supply position during 2025-26

The anticipated power supply position during 2025-26 is presented in the table as follows:

Particulars	Energy (Million Units)	Peak (MW)
Requirement.	1850211	269277
Supplied / Availability.	1866007	266006
Surplus ( + )/Shortage (-).	15797	-3271
%Surplus ( + )/Shortage (-).	0.9%	-1.2%

[Source: Central Electricity Authority LGBR 2025-26]

The Electricity Generation Target from conventional sources fixed by Ministry of Power (MoP) for FY 2024-25 was as follows:

Electricity Generation Target for FY 2024-25:

	Thermal	Hydro	Nuclear	Bhutan (Import)	Total
Target (MUs)	1444943	147709	55348	8000	1656000

[Source: Central Electricity Authority (CEA)].

In order to provide cheaper power to consumers, large size power projects are being developed at different locations by various project developers.

India is endowed with huge renewable sources for energy. Both technology routes for conversion of solar radiation into heat and electricity, Solar Thermal and Solar Photovoltaic (PV), can effectively be harnessed providing huge scalability for solar power in India. With the increased focus on Research and Development for reducing the costs of setting up Solar Power projects and the tariffs being offered for Solar Power; the sector provides bright opportunities.

Your Company has been allotted land at Great Rann of Kutch near Khavda to set up 2375 MW of Renewable Energy (RE) Park. This Park will be developed as a part of prestigious 30 GW RE Park planned near International Border in Great Rann of Kutch. Ministry of New & Renewable Energy (MNRE) has approved entire RE park under Ultra Mega Renewable Energy Power Project (UMREPP) Mode-8 to avail benefit of Central Financial Assistance (CFA).

The major work orders for developing RE park infrastructure such as Pooling sub-stations, internal roads & drains have been issued and work at site is under progress. Construction work for dedicated 400 KV Transmission Line is completed from PSS-1 up to KPS-II Sub-station and successfully charged on 30/04/2025. PSS-1 400 KV GIS system and 2 Nos. of Power Transformers have been successfully Energized. With this, 100% power evacuation capacity is available for GIPCL 600 MW Solar Project. All internal road, drains and Pond works have been completed.

Construction work for 1200 MW Pooling Substation-2 is under progress. Critical Equipments like 400 kV GIS System, Power Transformers, 33 kV Switchgears etc. have already been received at site.

The entire RE Park capacity is expected to be completed by December, 2026.

600 MW Solar Power Project at Khavda:

Your Directors are pleased to inform that your Company has successfully bid for 600 MW Solar Power Project under Green shoe option of Gujarat Urja Vikas Nigam Limited (GUVNL) Tender. The Company has received the Letter of Intent (LoI) for the project from GUVNL in the month of May 2023. The Company has already appointed M/s. Tata Consulting Engineers (M/s TCE) as Project Management Consultant and work order for Balance of System (BoS) package and supply of Solar PV Modules have been issued. The site is fully mobilized and Construction work for BoS package is under advanced stage. All materials and equipments have been delivered at site. GIPCL has commissioned successfully 105 MW out of 600 MW. Balance capacity will be commissioned in phase manner.

Connectivity for power evacuation has already been secured from CTUIL for the project. In line with the project completion timeline, the Company has identified priority 105 MW Commissioned on 27/06/2025.

500 MW Solar Project at Khavda

Your Directors are pleased to inform that your Company has already signed PPA with GUVNL for 500 MW Solar PV project at Khavda RE Park in the month of October 2023.The PPA has been approved by GERC vide Order dated 25/09/2024. Contract awarded for Balance of System (BoS) package and supply of Solar PV Modules for 500 MW Solar Project. The site is fully mobilized and Construction work for BoS package is under progress. The land for the project is in possession and power evacuation connectivity has been obtained.

The Company is also exploring business opportunities in the following areas:

• Solar Park

• Solar Projects

• Wind Projects

• Long Duration BESS

• Pumped Storage Projects

A dedicated Business Development Cell has been set up to look for new business opportunities.

Your Company has signed MoU with Government of Gujarat in Vibrant Gujarat Global Summit 2024 to set up projects having investment worth of 7,953Cr.

On 06/12/2023, your company and Indian Oil Corporation Limited (IOCL) signed a non-binding Memorandum of Understanding (MoU) to explore potential business opportunities through the creation of a joint venture and the perceived benefits of research and development in the fields of indigenous battery technology, biofuels, green hydrogen/green ammonia technology, etc.

Pumped Storage Projects (PSPs) have been identified by the Ministry of Power, Govt. of India as the best storage option for our country. NHPC Ltd. is implementing a number of Pumped Storage Projects across the country and Govt. of India has notified a number of fiscal incentives and faster clearances for the Pumped Storage Projects. In view of perceived benefits, your Company has entered into a Non- Binding Memorandum of Understanding with NHPC Limited on 17/10/2023.

Key Risks and Concerns:

Power sector is a highly capital-intensive industry with long gestation periods before commencement of revenue streams (construction / commissioning periods of 4-5 years) and an even longer operating period (over 25 years). As most of the projects have such a long-time frame, there are some inherent risks in both the internal and external environment.

The macro economic factors like the growth of the economy, interest rates, as well as the political and economic environment have a significant effect on the business environment and the sector as a whole.

The graduation from the regulated regime to a competitive scenario has made developers conscious of the costs incurred (both capital and operating costs) and delays in equipment delivery schedules due to inadequate manufacturing capacity in the country.

New policies have boosted the security of utilities revenue directly impacting both their willingness and ability to pay for the power purchased. Over the long term, unless Aggregate Technical and Commercial (AT&C) losses are reduced, the ability of state utilities to meet their obligations will be of grave concern.

Considering the proposed capacity addition and the capitalintensive nature of power projects, high level of debt financing will be required. The company, sector and group level exposures of various banks and insurance companies need to be increased in order to adequately fund the proposed capacity addition. Your Company is dependent on the domestic market for its business and revenues. The Companys power generating facilities are located in the State of Gujarat and the entire revenue of the Company is derived from the domestic market. These factors may potentially expose the Companys business to risks of a significant nature pertaining to the state of the economy. Adverse changes in the Government policies or regulations, the taxes levied by the Central or State Governments or removal of tax concessions, exemptions or incentives, or claims by tax authorities may affect the financial condition and operational results of the Company.

Generation from gas-based power plants has become unviable for the Grid and hence the Vadodara Gas Based Stations are non-operational. Majority of the Gas Based Power Plants in the country are in-operative.

To remain unaffected by the grid disturbances, your Company has developed systems to isolate its Power Stations from the grid. To mitigate the concerns, the external environment is monitored and the internal environment is managed on a continuous basis.

REVIEW OF COMPANYS BUSINESS:

The Company at present has a combined installed capacity of

1184.4 MW at various locations in Gujarat as follows:

Power Plants	Installed capacity (MW)
A. Non- Renewable
Vadodara Station - I.	145
Vadodara Station - II.	165
Surat Lignite Power Plant (SLPP), Village Nani Naroli, Taluka Mangrol, Dist. Surat - Phase I & II.	500
Sub Total (A)	810
Power Plants	Installed capacity (MW)
B. Renewable
Solar Power Plants
Vastan, Taluka Mangrol, Dist. Surat.	05
1 MW Distributed Solar Power Plants at Amrol, Dist. Anand and Vastan, Dist. Surat.	02
Gujarat Solar Park, Charanka, Dist. Banaskantha.	80
	75
Raghanesda Solar Park, Dist. Banaskantha.	100
Sub Total (B)	262
Wind Farms
Kotadapitha, Dist. Amreli.	15
Nakhatrana, Dist. Kutch.	21
Rojmal, Dist. Botad.	26
Kuchhdi, Dist. Porbandar.	50.4
Sub Total (C)	112.4
GRAND TOTAL (A+B + C)	1184.4

MANAGEMENT CONTROL, INTERNAL CONTROL AND INTERNAL AUDIT SYSTEMS:

Your Company has put in place internal control systems and processes commensurate with its size and scale of operations. Few recent initiatives in that direction are given below:

1. Implementation of an Enterprise Resource Planning (ERP) System developed by SAP for better control on cash flows, costs, automation of procurement processes and digital office after a comprehensive study of various functionalities. This System has control processes designed to take care of various audit requirements;

2. Technical up gradation of servers and functional modules of SAP ERP;

3. Central Data Monitoring Cell has been set up for monitoring of operations data for plants and projects under Solar and Wind at various locations;

4. Centralization of processes wherever feasible, with IT support, to reduce cycle time and avoid repetition of activities.

In addition, the Company has a system of Internal Audit and Review through external independent firm of Chartered Accountants. Pre-audit of payments is being carried out by an internal team of Accountants as well as by external Agencies which oversee the implementation and adherence to various systems and processes and preparation of Financial Statements as per Generally Accepted Principles and Practices. The internal control measures such as defining various levels of the authority through delegation of powers, well laid down procurement procedures, checks and balances in the financial system to safeguard the assets, budgetary controls and variance analysis are in place.

The procurement and operational maintenance activities are planned well in advance to avoid any possible risk of late delivery of materials / inputs, delay in attending to maintenance needs etc. Your Company stores and maintains all the relevant data and information as a back-up, to avoid any possible risk of loss of any important business data.

A qualified and independent Audit Committee of Directors periodically reviews the internal audit reports.

FINANCIAL REVIEW:

These financial statements are prepared in accordance with Indian Accounting Standard (Ind AS), under the historical cost convention on the accrual basis except for certain financial instruments which are measured at fair values, the provisions of the Companies Act, 2013 (the Act) (to the extent notified) except in so far as the said provisions are inconsistent with the provision of the Electricity Act, 2003 and guidelines issued by the Securities and Exchange Board of India (SEBI). The Ind AS are prescribed under Section 133 of the Act read with Rule 3 of the Companies (Indian Accounting Standards) Rules, 2015 and relevant amendment rules issued thereafter.

Your Companys total income for the year ended 31^st March,2025 was 132508 Lakhs as compared to 142504 Lakhs in the previous year.

The total income of the current year includes earnings from sale of electrical energy of 124795 Lakhs as compared to 134053 Lakhs recorded in the previous year.

The Profit Before Tax was 27295 Lakhs as compared to 25252 Lakhs (after exceptional item) in the previous year.

The Net Profit of 21143 Lakhs has been arrived at after taking into account the Current Income Tax expense of 4698 Lakhs and Deferred Tax expense of 1453 Lakhs.

During the year, Gross Block has increased by 3561 Lakhs. The increase was mainly due to capitalization of Plant and Machinery during overhauling at 2 x 250MW Surat Lignite Power Plants at Nani Naroli.

The total dividend payout (proposed) for the year @ 4.09 per Equity Share is 6348.33 Lakhs.

As on 31^st March 2025, the net worth of the Company stood at 352380 Lakhs as against 330551 Lakhs as at the end of previous financial year ended on 31^st March, 2024.

SIGNIFICANT CHANGES IN KEY FINANCIAL RATIOS:

Key Ratios	2024-25	2023-24	% Variance*	Explanation
Trade receivables turnover ratio (in times)	5.18	4.55	-13.82%	The change is mainly due to decrease in receivable from GUVNL, in the previous year.
Inventory Turnover ratio (in times)	5.49	5.56	1.19%	-
Interest Coverage Ratio (%)	10.22	8.28	-23.52%	The change is mainly due to repayment of term loans.
Debt Equity Ratio (%)	51.52	12.37	-316.51%	The change is mainly due to disbursement of term loans for ongoing Capital Projects and issue of Equity Share capital during the year. (Refer note 19 (a) and 50(a) of the financial statements for more details).
Operating Profit Margin (%)	21.98	20.78	5.75%	-
Net Profit Margin (%)	16.94	14.81	14.41%	The change is mainly due to reduction in employee benefit expenses due to capitalization and reduction in other expenses.
Return on Net Worth(%)	6.00	6.01	-0.91%	-

* Positive Figure indicates Favorable Variance.

SUBSIDIARY COMPANY:

The Company has no Subsidiary Company.

HUMAN RESOURCE & INDUSTRIAL RELATIONS:

Humans Resources are considered as one of the most critical resource in the business which can be continuously improved to maximize the effectiveness of the Organization. Human resources build the Enterprise and a sense of belonging inculcates the spirit of dedication and loyalty amongst them towards strengthening the Companys sustainable growth. All personnel continue to have healthy, cordial and harmonious approach thereby enhancing their contribution to the Company. The strength of your Company lies in its team of highly competent and highly motivated personnel. This has made it possible for your Company to make significant improvements and progress in all areas of activities.

During the year 2024-25, the Company maintained its high standards of Safety. Your Directors place on record their sincere appreciation for the unstinting efforts and contribution put in by the employees of the Company.

The Company continued in its endeavor to impart appropriate and relevant training to its employees to upgrade their skills to meet the challenges that are ahead and to enhance their performance. The Company has also taken up an exercise on career growth and planning by identifying potential and training needs of employees and taking suitable steps to meet them.

The industrial relations remained cordial throughout the year both at Vadodara and at SLPP Plants.

CORPORATE SOCIAL RESPONSIBILITY AND WELFARE:

Being a conscientious corporate body, your Company has been actively involved in the socio-economic development and welfare of the people living around the Power Plants at Vadodara, SLPP and it RE locations through Society for Village Development in Petrochemicals Area (SVADES) at Vadodara and through Company promoted NGO - Development Efforts for Rural Economy and People (DEEP) at SLPP. Your Company has also undertaken CSR initiatives in and around the Villages where its Renewable Energy Projects, both Wind and Solar are situated. The Company has several CSR initiatives and has undertaken projects in the areas of Health, Education, Livelihood / Women Empowerment, Development of Village Infrastructure, etc.

The Companys CSR approach is focused on the development of communities around the vicinity of its plants / facilities.

Major Corporate Social Responsibility (CSR) initiatives by your Company revolve around building community infrastructure, focus on women empowerment and their role in development. Interventions include Health, Education, Livelihood Development and Village Infrastructure Development like roads, culvert, multi-purpose shed, class rooms, sanitation etc. in surrounding villages.

ACKNOWLEDGEMENT:

Your Directors take this opportunity to express their appreciation for the co-operation and assistance received from the Promoters, Government, Local Government Bodies, Financial Institution, the Companys Bankers, Electricity Companies, Employees, Customers, Suppliers, Investors and all other stakeholders. Your Directors express gratitude to the investors for their confidence reposed in the Company.

CAUTIONARY STATEMENT:

Statements in the Management Discussion and Analysis forming part of the Boards Report, describing the objectives, projections, estimates, expectation and predictions of the Company may be "Forward Looking" statements within the meaning of applicable security regulations and laws. These statements are based on certain assumptions and expectations of future events. The Company assumes no responsibility in respect of forwardlooking statements herein which may undergo changes in future on the basis of subsequent developments, information or events.