© 2024 Alpha Spread Limited. All Rights Reserved.
www.alphaspread.com is not operated by a broker, a dealer, or a registered investment adviser. Under no circumstances does any information posted on www.alphaspread.com represent a recommendation to buy or sell a security. The information on this site, and in its related newsletters, is not intended to be, nor does it constitute, investment advice or recommendations. The information on this site is in no way guaranteed for completeness, accuracy or in any other way. In no event shall Alpha Spread Limited be liable to any member, guest or third party for any damages of any kind arising out of the use of any content or other material published or available on www.alphaspread.com, or relating to the use of, or inability to use, www.alphaspread.com or any content, including, without limitation, any investment losses, lost profits, lost opportunity, special, incidental, indirect, consequential or punitive damages. Past performance is a poor indicator of future performance.
You don't have any saved screeners yet
Intrinsic Value is all-important and is the only logical way to evaluate the relative attractiveness of investments and businesses.
Ladies and gentlemen, good day, and welcome to NTPC Limited Q2 FY '21 Earnings Conference Call hosted by JM Financial Limited. [Operator Instructions] Please note that this conference is being recorded. I now hand the conference over to Mr. Subhadip Mitra from JM Financial. Thank you, and over to you, sir.
Thank you, Nirav. On behalf of JM Financial, welcoming you all to the NTPC's 2Q FY '21 Earnings Call. We are joined today by the senior management of NTPC, led by Director Finance, Mr. A.K. Gautam. I would now like to hand over the call to Mr. Gautam and request him to introduce the management team, followed by his opening remarks and the Q&A session. Over to you, Mr. Gautam. Thank you, sir.
Thank you. A very good evening to everybody. I, A.K. Gautam, Director of Finance, welcome all of you to Q2 FY '21 con call of NTPC Limited. I have with me Shri Dilip Kumar Patel, Director, Human Resources; Shri Ramesh Babu V., Director Operations; Shri Chandan Kumar Mondol, Director, Commercial; and Shri Ujjwal Kanti Bhattacharya. Director, Projects. I also have with me other key members of NTPC team. Today, the company has announced the unaudited financial results for the second quarter of FY '21. The key performance highlights for the quarter and half year ended 30th September 2020 have already been disclosed on both the stock exchanges. The company has also disclosed the approval of the Board of Directors for the buyback of up to 19.79 crore equity shares of the company at INR 115 per share for an amount up to INR 2,275.75 crore. Now I will touch upon the operational highlights for the Q2 and H1 of FY '21. NTPC standalone growth generation in Q2 FY '21 is 67.67 billion units, and in H1 FY '21 is 127.86 billion units as compared to 61.4 billion units and 130.14 billion units in corresponding previous period. Gross generations of NTPC Group in Q2 FY '21 is 77.93 billion units and H1 FY '21 is 145.88 billion units as compared to 68.67 billion and 145.80 billion units in the corresponding previous periods. NTPC Group posted highest ever single day generation of 977.07 million units on 28th July 2020, surpassing previous highest day generation of 935.46 million units on 12th March 2019. NTPC hydro and RE stations recorded generation of 2.05 billion units and 3.39 billion units in Q2 FY '21 and H1 FY '21, respectively. In H1 FY '21, we have added 984 megawatts to our commercial capacity, comprising 660 megawatts at Khargone, 300 megawatts at NEEPCO and 24 megawatt at THDC. With these additions, the commercial capacity of NTPC has become 50,355 megawatt on a stand-alone basis and 62,110 megawatt for the group as at 30th September 2020. For the half [Audio Gap] 6 core stations of NTPC were among the top 10 performing stations in the country in terms of PLF. This includes [Technical Difficulty] with 95.45%...
Sir, sorry to interrupt you. Sir, we are losing your audio. Please -- just a moment, I'll call you back. [Operator Instructions] [Technical Difficulty]
No, no, should I start from where I left?
Yes, sir.
Okay. So for H1 FY '21, 6 coal stations of NTPC were among the top 10 performing stations in the country in terms of PLF. It includes Korba with 96.87%, Sipat with 95.45%, Rihand with 94.57%, Talcher Thermal with 90.44%, Vindhyachal with 90.31% and Nabinagar with 86.74% PLF. During H1 FY '21, PLF of coal stations was 61.26% as against the national average of 49.51%. During the period, we have suffered losses due to grid restrictions and fuel supply. The total generation loss due to grid reductions of the coal-based stations was 61 billion units for H1 FY '21. For the gas-based station, the loss was 12 billion units. The generation loan on account of fuel supply constraint was 0.11 billion units for H1 FY '21. Now I will put the status of fuel supply. During H1 FY '21, materialization of coal against ACQ was 88.11% as against 89.64% in H1 FY '20. Coal supply during H1 FY '21 was 78.99 million metric tonne comprising of 78.47 million metric tonne of domestic coal and 0.52 million metric tonne of imported coal. The coal supply during the corresponding previous period was 80.72 million metric tonne with 79.21 million metric tonne of domestic coal and 1.51 million metric tonne of imported coal. During H1 FY '21, 3.19 million metric tonne of coal that is H1 FY '20 [Audio Gap] 4.5 million metric tonne of coal has been excavated from Pakri Barwadih coal mine. Cumulatively, 22.65 million metric tonne of coal has been excavated till 30th September 2020. 0.94 MMT of coal has been excavated from Dulanga and Darlipali coal blocks together in H1 FY '21, H1 FY '20 was 0.35 million metric tonne. Cumulative expenditure of INR 7,273.22 crore has been incurred on the development of coal mines till 30th September 2020. The NTPC has incorporated a wholly-owned subsidy, NTPC Renewable Energy Limited on 7th October 2020, to undertake renewable energy business. The company would help to achieve its target of 25% share of renewables-based generation capacity in its portfolio and push away towards increased renewables in the country. NTPC has signed MoU with Bhabha Automatic Research Center (sic) [ Bhabha Atomic Research Centre ] for developing technologies in the areas of Phase-II energy, hydrogen sensors, robotics, ash renewables, water and shall contribute towards Atmanirbhar Bharat. NTPC is exploring opportunities for setting up energy-intensive industries at NTPC's power stations. In phase 1, 3 plants of NTPC, Solapur, Kudgi and Gadarwara are identified for setting up energy-intensive industries. S per revised MoP guidelines, a new -- a national DISCOM with NTPC and REC is to be formed and modalities for the same are being so explored. NTPC and International Solar Alliance announced their partnership to collaborate on implementation of solar projects in 47 least developed countries and small island developing states member countries of ISA. NTPC has signed an MoU with L&T Hydrocarbon Engineering to build CO2-to-methanol project. Now I will touch upon certain initiatives taken by NTPC for preserving environment. Flue gas desulfurization system are under various stages of elimination in 64.85 gigawatt of group capacity. FGD systems have already been commissioned for 1,340 megawatt capacity. FGD system package for 58.94 gigawatt have been awarded and FGD system package for 4.57 gigawatt capacity are under various stages of tendering. For compliance with NOx control, combustion modification has already been implemented at 5 units with 2 gigawatt of thermal power capacity. Award for contracts for supply and installation of low NOx combustion system for 19 gigawatt of capacity have been awarded -- to be awarded. Award for DNOx system package for 43 gigawatt are under process. NTPC has invited bid for procurement of biomass pellets for its thermal power plants with an aim to reduce burning of crop residue on farm lands that cause air pollution. The company has envisaged consumption of 5 million tonnes of pellet in the current financial year at its 17 power plants, including Korba, Dadri, Kudgi, Sipat and Rihand. NTPC had been undertaken -- NTPC had first undertaken this unique initiative on pilot basis in 2017 for biomass cofiring by replacing some of the coal with pellet-based fuel at NTPC Dadri. Post successful implementation, NTPC now plans to replicate the model in '17 of 8 thermal stations. As utilization for 2020, up to September 20 is 55.85% for NTPC station, and it was 59.45% for the group company as a whole. As a step forward, total ash utilization, NTPC has developed new infrastructure for loading dry fly ash silo storage system for transferring fly ash to railway wagons. First of such transfer took place from Rihand to ACC cement plant in Amethi District. Now I will touch upon financial highlights. Gross sales for Q2 FY '21 is INR 24,617.53 crore as against corresponding quarter of the previous year gross sales of INR 22,706.53 crores, registering an increase of 8.42%. On a half year basis, there is an increase of 2.56% in the gross sales, that is from INR 46,836.11 crore in FY '20 to INR 48,033.77 crores in H1 FY '21. Total income for Q2 FY '21 is INR 26,023.33 crores as against corresponding quarter of previous year total income of INR 23,658.23 crores, registering an increase of 10%. On a half yearly basis, there is an increase of 3.88% in the total income, that is from INR 48,177.04 crore in H1 FY '20 to INR 50,044.33 crore in H1 FY '21. PBT for Q2 FY '21 is INR 3,666.93 crore as against INR 3,497.72 crore in the corresponding quarter of the previous year, registering an increase of 4.84%. On a half year basis, PBT is INR 6,564.72 crore as against INR 6,660.11 crore in H1 FY '20. PAT for Q2 FY '21 is INR 3,504.80 crore as against INR 3,262.44 crore in the corresponding quarter of the previous year, registering an increase of 7.43%. On half yearly basis, PAT is INR 5,974.96 crore as against INR 5,865.23 crore in H1 FY '20. As part of Atmanirbhar Bharat scheme announced by the government, NTPC has currently realized INR 6,736 crore from the amount realized -- released by PFC REC under tranche 1 to the beneficiaries. NTPC Group as a whole hold realized INR 8,088 crore. An update on various other financial activities. The total regulated equity as on 30 September 2020 was INR 63,514.10 crore. Now something about fund mobilization. During H1 FY '21, NTPC has signed term loan agreement of INR 5,000 crores, INR 1,000 crore and INR 900 crore with the HDFC Bank, Bank of India and Axis Bank, respectively, totaling INR 6,900 crore. NTPC has also issued the following bond with a door-to-door maturity: INR 1,000 crore at 6.29% on 31 July 2020 for a period of 10 years and 8 months; INR 4,000 crore at the rate of 5.45% on 15 October 2020 for a period of 5 years. Average cost of borrowing for H1 FY '21 was 6.37% as compared to 6.91% in H1 FY '20. NTPC has signed a foreign currency loan agreement with Japan Bank for International Corporation for JPY 50 billion, approximately USD 480 million or INR 3,500 crores for funding of FGD and renewable energy projects of the company. This is the first loan for NTPC under the JPIC Green operations in India. Now certain details about the CapEx. In H1 FY '21, we have incurred a CapEx of INR 7,139.50 crore as against INR 9,143.86 crore in H1 FY 20. The CapEx by the other group company has been INR 5,843.64 crore. Thus, the total group CapEx for the H1 FY '21 was INR 12,983.14 crore. The capital outlay for FY '21 has been estimated at INR 21,000 crores for NTPC. Now I will briefly touch upon some of the NTPC group companies. NVVN, our trading subsidy, transacted 8.36 billion units during H1 FY '21 as against 7.92 billion units during the H1 FY '20. NVVN has won 50-megawatt solar capacity in Damodar Valley Corporation solar tender for setting up the grid-connected PV solar plant under developer model in design, build, operate transfer mode at DVC, Jharkhand. The project is worth INR 204.40 crore and will be completed within 12 months of signing the 25 year's PPA. NVVN has signed an MoU with Greenko Energies Pvt. Ltd. to explore the possibility of entering into an arrangement for trading, collaboration, partnership in integrated renewable energy storage projects set up by Greenko with the aim to offer round-the-clock renewable energy power to potential customers in India. Hindustan Urvarak & Rasayan Limited, a joint venture company of NTPC, has signed an MoU with Rashtriya Chemicals and Fertilizers Ltd. to source urea to undertake seeding program. During H1 FY '21, we have received dividend of INR 563.33 crore from our subsidies and joint venture companies as against INR 83.65 crore we received in the corresponding period of the previous year. The major contribution of dividend in H1 FY '21 are as follows: INR 300 crores from THDC India Limited; INR 101.48 crores from Bhartiya Rail Bijlee Company Limited; INR 100 crores from Aravali Power Company Limited; INR 25 crores from NEEPCO and rest from other JV and subsidy companies. NTPC continues to win laurels and awards in various fields. Some of the major awards received in H1 FY '21 are: NTPC featured on the top of the list of Indian PSU under World's Best Employer 2020 published by Forbes. NTPC has won prestigious CII-ITC Sustainability Award 2019 in the domain Excellence of Corporate Social Responsibility. NTPC Pakri Barwadih coal project has been awarded for Best Environment Management System for '19-'20 by Federation of Indian Mineral Industries. NTPC has received the CSR Health Impact awards in 2 categories, Swachh Bharat Hand Wash Initiative and Mainstream CSR Health project, PSU. NTPC has been confirmed with the Green Tech CSR award for 2020 in category of promotion of farm irrigation, agricultural development program. NTPC has been confirmed with best practices in CSR awards 2020 by the Institute of Public Enterprise Hyderabad for girl empowerment mission. These were some of the highlights I wanted to share before the question-and-answer session. Thank you.
[Operator Instructions] First question is from the line of Mohit Kumar from DAM Capital Limited. Next question is from the line of Atul Tiwari from Citigroup.
Sir, just wanted to understand the thought process behind the 2% buyback which has been announced. Given that the amount of buyback is just 2% of equity, the same effect could have been achieved through a simple dividend payout. So just some kind of color on why did the company decide to go for buyback rather than simple dividend payout? So that's my first one.
Yes, you are right. But to reward the -- this thing -- our equity shareholders, in the last year, we have paid lesser dividend, so we decided that let us go for buyback of shares.
Okay. But the same thing would have been done through dividend also, right? You could have paid that dividend this year, right? Isn't that...
Wait for that also.
Okay. Okay. And sir, the second one is, so how does the buyback exactly work? In the sense that if government's stake is at 51%, so potentially, if the government stake could go below 51% if, say, less number of public shareholders tender this year? Is that a possibility?
No, no. That possibility is not there. That has already been -- the mechanism has already been chalked out, whereby the Government of India will tender share only to the extent, so that its holding in NTPC does not fall below 51%.
Okay, sir. That is very clear. And sir, my last one is on the receivables. So could you shed some light on the overdue receivables, more than 45 days due, as on September end? And how does it compare with June end numbers?
I think I'll request my Director, Commercial, to answer this question.
Okay. Can you just repeat this -- your question, please?
So the -- so how much was the receivable as on September end? And how much was more than 45 days due? And how does -- how do these 2 amounts compare with the June end number?
This -- our receivables on -- beyond our due days, that is 45 days, as on September, it was INR 19,000 crore.
Okay. And how much was this number as of June end?
June end [Audio Gap], I think it was around -- one second.
You can take separately this detail from Aditya or else.
Yes. I'll give. It just -- I think it was around 17 -- INR 18,000 crores or so. I'll just give you this number subsequently, yes.
It was INR 16,403 crores.
Yes.
Okay. So sir, I mean, it doesn't look like that despite the DISCOM liquidity infusion scheme, the overdue receivable has gone down in the quarter. So what is happening on that front? I mean is that scheme going on smoothly? And are you guys getting paid back your overdue?
Hello? Yes. Hello?
Can you repeat it? I think I was not able to hear you properly.
Your voice is very low.
Okay. So sir, basically I was asking that you're more than 45 days dues in the quarter seems to have gone up from INR 16,400 crores to INR 19,000 crores, so -- I mean this DISCOM liquidity infusion scheme, is it not benefiting as of now? And is it happening on the ground that DISCOMs are getting money from REC and PFC and paying you guys?
Yes. I'll just tell. I understood the question. Actually, what has happened now, even we have received this tranche on -- of PFC, REC loan from some of the DISCOM. So far, even tranche 1 also has not been taken fully by J&K as well as Tamil Nadu and some of other DISCOMs, who we are not -- who is yet to take it. And in addition to that, the tranche 2 also will be released, which is yet to be received as I think [ BF ] was telling that we have so far received around, I think, some INR 6,700 crore of amount from this PFC, REC. And once we receive the second tranche as well as the first tranche from other DISCOMs, plus, in addition to that, Karnataka, who is not taking basically loan from PFC, REC, they are taking bank loan, and they'll be paying through this bank loan. Once we receive those amounts, the receivables will come down.
Next question is from the line of Lavina Quadros from Jefferies Group.
Just a couple of questions from my end. Sir, were there any under-recoveries in the quarter? In case you said it in the opening remarks, I missed that. And secondly, sir, what's the expectation of commercial capacity addition now in FY '21 and '22? Is there any change at all because of the COVID-19-linked delays on the ground? And lastly, sir, what is surcharge income in this quarter and the first half?
Okay. Let me answer your question in the way you asked. The AFC under recovery, first the half year. Half year '20, it was INR 448.39 crores. In half year '21, it is INR 496.66 crores, so almost around INR 50 crores. If in the quarter -- in the previous quarter, it was INR 332.08 crores, while in the current quarter is INR 270.99 crores. Now I come to the COD targets -- commissioning target. For FY '21, it is 5,566 megawatt. And in '20, it is 7,336 megawatt and '23, it is 5,016 megawatt. This is -- these are COD targets. If you want commissioning target, they are 6,292, '21; 6,426, '22; and 4,216 in FY '23. Now you asked about the surcharge income from customers. Surcharge income for NTPC from -- in the H1 -- from the -- for the half year is INR 823 crores as against INR 1,130 crores in the previous half year.
Sir, if I may correct, it is INR 1,130 crore in the current year as against...
Yes, yes. Sorry, I'm sorry. INR 1,130 crores in the current half year as against INR 823 crores in the corresponding previous year -- previous half year.
Surcharge in the quarter?
And if you want for quarter also, current quarter, it is INR 657 crores as against INR 651 crores in the corresponding quarter of the previous year.
Next question is from the line of Kirthi Jain from Sundaram Mutual Fund.
[Audio Gap] in terms of the receivable reduction, what is the receivable reduction [Audio Gap]
Kirthi Jain, sorry to interrupt you. Your voice is breaking. May I request you to talk through the handset?
Hello?
Hello, Mr. Jain, Can you hear us?
Hello? Hello?
Go ahead.
Yes. So in terms of receivable reduction, what is the expectation we have from the current level of [ consol ] receivable at INR 31,000 crore? By December, what do you expect and by March, what you expect in terms of the receivable reduction?
Sir, sorry to interrupt you, but...
Yes. We could not hear you properly.
Hello?
Yes.
Sir, in terms of receivable reduction, what is our expectation over next 3 and 6 months. Do you expect some of the disbursement from the PFC, REC package. That's what I'm -- my first question.
Do you want the -- this realizability of the trade receivables in the next 6 months, I think?
Okay. Yes, sir. Yes, sir. Yes, sir. That's my first question, sir.
Yes, yes. I think Mondol Saheb?
Yes, sir.
6 month realizability, he is asking.
Yes, yes. I think I'll just give one figure that up to -- I think, up to October, we could realize around 78.5% total amount. And we are expecting that because we are yet to receive around INR 7,500 crore from PFC, REC once all these amounts, certain amounts are disbursed. That is one. Second is that as far as Karnataka is concerned, we are yet to receive around INR 2,500 crore. And we expect that maybe in next up to March, other than this PFC, REC loan, maybe around, on an average, INR 5,000 crore to INR 6,000 crore in a month, we will be able to realize. Again, this is all -- these are all estimate in maybe around up to March, maybe around, including the PFC, REC around INR 35,000 crore to INR 40,000 crore, we will be able to realize. That is our estimate.
Okay. Okay. So how much reduction do you expect, sir, from the current level?
Hello?
From the current level of receivables, how much reduction do you expect?
We are not able to hear you properly.
Sir, can I request you to come back in the queue? Next question is from the line of Aniket Mittal from Motilal Oswal.
Sir, first question is on the fixed cost under recovery. Sir, how much of this INR 496 crore can you actually regain back for the remaining year? Because I think part of this would fall in the high-demand season for [Audio Gap]. So how much of this -- the fixed cost under recovery, how much you can actually recover it?
No. We could not -- cannot hear.
Sir, let me answer, sir. Am I audible?
Yes, sir.
Yes. I'm Director of Operations. Out of this INR 497 crores of the fixed cost under recovery, by end of the year, it would be around INR 200 crores to INR 250 crores would be the amount left. As you recall, last year also, it was around INR 448 crores and at the end of the year, we ended up at INR 223 crores. So it would be more or less similar situation. We have taken care of the high demand, low demand season. In fact, we are also approaching the commission for this. But in spite of all this, it will be around INR 200 crores to INR 250 crores.
So just to clarify [Audio Gap] last part of your fixed cost under recovery [Audio Gap]
Sir, sorry to interrupt you, but your audio is not clear, sir, it's all breaking.
See, Darlipali, now the unit is running at more than 100% PLF. We are running at the declared capacity of 104%. So therefore, we would be making up all the losses that had happened in the initial first quarter. Basically, first quarter was a loss, where we had a bearing design issue. That has been rectified. So Darlipali, we'll be able to recover a lot of money. But yes, Darlipali around INR 100 crores to INR 120 crores will be the fixed cost under recovery that will take place.
Okay, fine. Sir, in Kahalgaon, what's the issue with [Audio Gap].
Pardon me, can you repeat the question?
Sir, in Kahalgaon, what's issue the in Kahalgaon -- for the Kahalgaon unit?
Kahalgaon unit, there was a problem in our ash bag. That has been now rectified. Now -- even now, Kahalgaon unit is running at full speed. So there also, we'll be able to recover the losses. Some loss would be there, but a major portion of the losses will be recovered.
Understood. And sir, [Audio Gap] for this quarter, what is the amount that you've booked?
Pardon me, again. Can you repeat the question?
Sir, sorry to interrupt you, sir, may I request you to come back in the queue for a follow-up question? Next participant is Mohit Kumar from DAM Capital.Next question is from the line of [Audio Gap] Asset Management.
Can you hear me?
Slightly be louder.
Okay. Just 2 questions, right? First question is, may I know what are your refinancing plans for your offshore bonds that is maturing on 2022? And the second question is what are your ESG efforts or progress so far? If any color on this would be very helpful for me.
Your first part was regarding?
Your refinancing plans for your bonds that is maturing in 2022.
Yes, yes. We have raised around INR 4,000 crores of masala bond. We are in the process of refinancing these loans. So that is in very advanced stage. And I think by -- before this -- within next 1 month, it will be completed. And the second question was related to?
ESG.
ESG.
ESG. Let me take that Gautam, sir.
Yes, yes.
In the ESG front, we have this time for the first time, we have published our integrated annual report where the sustainability as well as your annual report was published together. In that and also, we have made our one brighter plan 2032, where we have given targets to be achieved in time-bond manner. One is in the year 2022 and 2032. So therefore, we have set targets. And with this, we are assured -- we'll assure you that our ESG score is going to be improved because we have put targets in terms of the energy consumption reduction, carbon emission reduction, specific water reduction, auxillary power in consumption reduction. So these are some of the targets that we have put for ourselves and since there's a definite action plan now, the ESG score are going to improve now.
In addition, Babu, sir, you can just tell him that we have also appointed MSCI.
Yes. As our consultant.
Yes. MSCI for our consultant. And we have seen that in past some of the data which was available with the company, that was not captured by MSCI while reporting our MSCI score -- ESG score. So with their association with MSCI, we hope that our score will improve.
And moreover, we have started the interaction with various investors. We are clearing their doubts. So it's a learning process for us also. What are their expectations, and they've also appreciated our interaction with them because whatever mixed views that they were having we were able to clear them off.
Next participant is [ Ankit Wadhwa ] from NTPC Limited.
Actually, I just wanted to know that now government is moving towards clean energy. So what are NTPC's target in future?
Yes. That as per our corporate plan target, we want to wait to be 130-gigawatt company, of which around 30% of our capacity would be from the renewable energy sources. So in that direction, we are going now ahead.
Next participant is Swarnim Maheshwari from Edelweiss Financial.
I hope I am audible?
Yes, yes. Yes. Thank you.
Yes. Yes. Sir, a couple of questions. So firstly, sir, if you can just highlight the top 5 states with the overdue amount?
Top 5?
States.
I think Director of Commercial would be answering this.
I think it is -- it will be -- Uttar Pradesh is there -- U.P., J&K...
Karnataka.
Karnataka.
Sir, amount also, please, sir.
Okay.
You want amount also?
Yes.
As on today, UP is having outstanding of INR 4,400 crore, which is beyond due date; then the J&K is having INR 3,700 crore beyond due date; and then next highest is, I think, it would be Karnataka, which is having INR 2,990 crore; then MP is having INR 1,900 crore; and fifth one, one second, this is that -- Telangana is having around INR 1,350 crore.
Okay. All right. Sir, secondly, if you look at the other expenses, there is a sharp jump sequentially also or even Y-o-Y also. So any one-offs over there?
No, no, you need not to see these other expenses -- jump in other expenses on a standalone basis because certain assets have been created with respect to these expenses, which is appearing in the movement in regulatory deferral account balance. Like your -- which we have given Prime Minister, PM CARES, INR 250 crores against that and ERV and ash-related expenditure. We have -- those have been booked in this other expenses, for which corresponding regulatory asset has been created, which is appearing in the movement in regulatory deferral account balance.
Right. Sir, this PM relief fund you said, this was in Q1, I believe, not in Q2?
Yes, yes. It was in Q1. Apart from that, in Q2, exchange rate variation and the ERV, this expenditure on ash utilization, ERV, they have been accounted for.
Okay. Okay. On your commercialization target, you mentioned about 5.5 gigawatt for FY '21. So we are yet to do about 4.5 gigawatt in the next 5 months, so if you can just highlight the plant-wise commissioning targets for the next 5 months? And also, does this also include any renewable capacity?
I think this -- Mr. Bhattacharya, are you -- will you be answering this question?
Yes, yes. I'll tell you. Am I audible, sir?
Yes, yes.
Okay. Now coming to the commercialization of the unit, we'll say that first, we'd like to achieve the Unit 2 of Lara, 800 megawatts. We are expecting that to be commercialized in this month, early in this month itself, right? Everything has been done, including trial operation. Then we are targeting Gadarwara unit 2, another 800-megawatt unit, that we are keeping a target within December this year. Then we're expecting Meja unit 2, which is a 660-megawatt unit, and we are expecting it to be also commercialized in December itself. Then we are targeting NPGCL Nabinagar, but Nabinagar we'll try to do it within February, definitely by March. We'll do the commercialization of that, that's a 660-megawatt unit. Then we are also targeting unit 1 of Barh, which is a 660-megawatt unit, and that is also a target to be done within March itself. So that gives you a total capacity of commercialization this year, 4,490 total megawatt including what we have already done. Coming to the RE. In this year, we are planning to complete another 160 gigawatt, 140 megawatt for Bilhaur and another 20 megawatts for Auraiya. This is the position of our coal as well as RE projects. Besides this on a consolidated basis, NEEPCO, as a subsidiary company, will also complete their coming 3 and 4 units, 150 megawatt each, that is total 300 megawatt expectedly by December itself. And THDC, we expect another 24 megawatts and 50 megawatt of solar by THDC in Kerala. So if we add all these things, we'll be achieving 5,024 megawatt of commercial capacity addition by 31st March 2021, right?
Right, sir. Right, right. Helpful, sir. And wish you all the best.
No. First, your -- first question regarding the increase in other expenses, if you want numbers also, for the quarter, ash utilization expenses have increased by around INR 190 crores; then arbitration cases, INR 100 crores; and foreign exchange rate variation around INR 83 crores. So against these expenses, corresponding asset will be created, which will be shown under net movement in regulatory deferral account balance. You have to net that.
Next participant is Kirthi Jain from Sundram Mutual Fund.
Sir, my question is, sir, can you please tell us the standalone and consol regulated equity at the quarter end?
Regulated equity, in my opening remarks, I told you that it is on 30th September 2020 was INR 63,514.10 crore.
Okay. Consol, sir?
Consolidated, you can get from Mr. Aditya Dar.
Okay. Right. Sir, then with regard to receivables, sir, I asked earlier like what the [Audio Gap] we are expecting in terms of reduction from December end level to March level? I mean my audio broke and I didn't hear that answer.
I think Mr. Mondol has already answered this question.
Can you quantify, sir, actually, like what is looking for reduction, try to tell that some Karnataka receivables will come down, but can you quantify like what is the amount you are expecting?
What is the amount?
Amount of reduction in the receivables, you are expecting from September end level to March level?
You want the position of receivable from 45 days, more than 45 days, which is now INR 19,164 crores. You want what will be the position of these debtors as at 31st March 2021?
Yes. What is the company expectation...
Mondol saheb?
No, what is your question that what will be the receivables as on 31st March 2021?
'21 vis-a-vis which is appearing as at 30th September 2020. What will be the position of INR 19,000 crores, which we are showing more than 45 days now, what will be its position as at 31 March '21?
We have signed an MoU with Government of India that our receivables will be within our 45 days. So we are trying our best to keep it within that. So 45 days receivables means, it will be around -- we are targeting to have around INR 16,000 crore to INR 17,000 crore. But of course, it will all depend on how much you are able to do bill discounting, et cetera. So we are -- as of now, we are targeting that we will be keeping our receivables within that 45 days.
Okay. My last question, sir. With regard to late payment surcharge, there, the new rule has been included based on the [indiscernible] from when -- what is the applicable date for the quarter, sir?
What is the applicable date?
For the -- from when this rate will be changed, from 18 to [Audio Gap]...
No, no the new regulation, they are only -- I think the new regulation which you are talking about, they are only at the draft stage, nothing concrete has been decided on that new regulations. So it is -- it all depends upon the -- they will be asking our comments and all. So that will come only after hearing the various stakeholders, then only the final regulation will be decided.
It is basically -- that is rule which Government of India has circulated. It is -- so that comment -- after receiving the comment, maybe government will decide something, that we are not very sure. Now it is in the draft stage as the Director of Finance already confirmed.
Sir, on renewable [Audio Gap] any strategy finalization has happened, sir, with regard to how much we will be investing in the next 1 year? Any finalization has happened that we will be putting the solar park, anything finalization has happened?
Hello?
Yes.
Sir, sorry to interrupt you, but your voice is not coming...
Yes. We could not listen your voice.
Next question is from Mr. Rahul Modi from ICICI Securities.
Sir, congratulations for a good set of numbers. Sir, just 1 question I had on the -- Mr. Mondol had given some guidance on receivables, so that part is answered to a large extent. Sir, on the renewables ordering and commissioning and work in hand that we have, can you give a little more clarity as to what is the under construction capacity currently in our own books and developer mode? And how much are we planning to order out in the next 12 to 18 months?
Just a minute, yes, just a minute, Rahul.
Gautam, sir, should I -- can I...
Yes. Should I give this?
Sir, [Foreign Language] please, go ahead.
Okay. In respect of RE, NTPC-owned projects commissioned is 1,070 megawatt, under implementation is 2,404 megawatt, that is NTPC 2,354 and THDC 50 megawatt. Under trending, it is 2,088 megawatt. So that makes a total of 5,562 megawatt. Under developer mode, if you want details, commissioned capacity is 3,983 megawatt; under implementation, 1,400 megawatt; under tendering is 1,170 megawatt. So that makes a total of 6,553 megawatt. In addition to that, as I told you that we have created a new NTPC subsidy, namely, NTPC Renewable Energy Limited, which has been incorporated from 7 October under the Companies Act, 2013. We have also appointed one consultant for providing transaction advice services for hiving of RE business to this new company. We have also given this as a part of inorganic growth through acquisition, we have issued tender for asset acquisition on 24th July 2020 for 1,000 megawatt.
Right, sir. Okay. That's very helpful. So sir, just lastly, just to reiterate what Director, Commercial said, so we should expect receivables to come back to INR 15,000 crore, INR 16,000 crore levels by March?
But again, I'll just tell that it is really a difficult time, but we are trying our best to bring it to that level. And that is how we have signed MoU also with the Government of India.
Ladies and gentlemen, we'll take the last 2 questions from the line of Atul Tiwari from Citigroup.
Yes, sir. Hello? Am I audible, sir? Hello?
Now it is better.
Sir, just on this receivable thing, again. So if you could shed some light on this tripartite mechanism, which obviously we have been having for a long time. Under what condition this mechanism for recovering the payment from overdue states can be triggered?Asking because this receivable situation has gone on for now almost more than a year and it doesn't look like it is getting resolved anytime soon. So does somebody need to decide that this mechanism will be triggered? Or is there some kind of automatic trigger clause in there? And if it is not to be triggered, then what is the point of having that mechanism in the first place?
Mondol, sir, are you getting this?
Yes, yes. I have heard your question. As far as tripartite agreement is concerned, yes, there is a trigger clause that if outstanding dues remain beyond 90 days, so we can get it from RBI -- states RBI account from central plan [ IAS 10 ]. For that triggering is not automatic, we have to write it to Ministry of Power and then Ministry of Power, in turn, writes it to Ministry of Finance, and that is how it gets operated. We have already -- might have seen that in case of DVC already, there were some -- that outstanding amount has been recovered from tripartite -- from RBI account. So we are -- because of this pandemic, et cetera, maybe we are now -- we have not so far operated definitely this clause. But if time is need free is felt, then we'll write it to Ministry of Power for recovery through the either RBI account.
So sir, as on the date, how much of the receivable is due for more than 90 days, which qualifies for the recovery under this tripartite agreement?
Let me see. I think around INR 11,000 crore or INR 12,000 crore. But out of that, actually I think a lot of money will get back through this PFC and REC loan.
Okay. But in case you do not, then you guys are reasonably certain that you will write to Ministry for recovery? Is that -- I mean is that like a well-understood thing? Or you -- I mean you yourself will be taking the lead to take a call?
No. Can you repeat your question, again?
No, no, sir. All I'm asking is that this INR 11,000 crore, which is now outstanding for more than 90 days, in case the money through PFC, REC mechanism does not come through because either if states do not qualify for that or there is some kind of delay, NTPC will for sure be going for recovering that money through tripartite agreement? This is a reasonable certainty on that point?
No, no.
Yes. That's correct.
In addition to this, one more submission is also there that we own this outstanding amount, we are recovering surcharge or we are accounting surcharge also. And in the past, we have never, this thing, write-off any surcharge.
Okay. Okay. And this tripartite mechanism, this surcharge is also included there, right, as a recovery mode?
Yes, yes, yes.
Ladies and gentlemen, we will take the last question from the line of Abhishek Puri from Axis Capital Limited.
Sir, just wanted to test why is there a loss in the JVs because consol PAT is lower than stand-alone PAT?
Basically, Abhishek, it is because, as I told in my opening remarks, that in the current quarter, we have received a lot of, this thing, dividend from our JV and subsidy companies. While preparing the consolidated financial statement, it is eliminated. That is one. Second, one of the plant of NEEPCO that is [indiscernible] that has met with an accident. So NEEPCO we, in the current half year, there is a loss as compared to profit in the previous -- corresponding previous period. So basically, these are the 2 main reasons.
Okay, sir. Sir, I'm sorry, I missed out on the dividend number, what is the number that you've given?
Dividend, suppose in NTPC stand-alone basis, suppose you received INR 100 crore dividend from your subsidy companies. So NTPC will show that as income, while the subsidy company will show that as expense. While preparing the consolidated statements, these 2 items will be eliminated, means they will be 0.
Right sir. Sir, what is the amount, I was asking?
Amount is around INR 500 crores. To be more specific, INR 470 crores.
INR 470 crores. And secondly, sir, the tax rate is also lower, any reason for that, any one-offs which are there?
Pardon? Abhishek, slightly louder.
The tax rate seems to be lower, I was just wondering is there any one-off or that's [Audio Gap]
Tax?
Yes, tax.
This was -- It was only this onetime rebate.
Okay. So that's onetime rebate?
Yes.
All right. And sir, lastly, this FGD proposal is, again, CA has been quoted in the saying that some of these FGD were not required and will be -- should be in a phased manner where it is highly polluted, it should meet the deadline of '22 and rest should be pushed forward. Whereas NTPC has actually ordered out majority almost 50,000 megawatt of projects. So we will continue to get our recovery, right, under the CRC-proposed regulations that are there?
Yes, yes, definitely. We will.
Even though that does not fall under the deadline?
Yes, yes.
Right. Sir, just one suggestion in terms of renewable energy projects that you have commissioned 1,070 megawatt, I understand you would include that in regulated equity. So if one can specify an opening remark itself in terms of how much has been spent on these renewable projects also, it will help us in terms of...
Your voice is breaking, Abhishek.
Is it clear, sir?
Go ahead.
I was just suggesting that if you don't include renewable energy expenditure in regulated equity. So if you can give that separately, it will be useful.
I think, Aditya, will give you.
Ladies and gentlemen, that was the last question for today. I'll now hand the conference over to Mr. Subhadip Mishra -- Mitra for closing remarks.
On behalf of JM Financial, I'd like to thank the management of NTPC for giving us this opportunity to host the call. Mr. Gautam, any closing remarks from your end?
No, no. Thank you very much. To take care of the shareholders, we have gone for this buyback of shares. It is around 2%. And the rate is also very good. It is as book value INR 115, so I think that would fulfill the expectation of some of the shareholders. Thank you.
Thank you very much. On behalf of JM Financial Limited, that concludes this conference. Thank you for joining us. You may now disconnect your lines. Thank you.
Thank you very much.
Thank you, Subhadip.
Thank you.