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NLC India Ltd
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Ladies and gentlemen, good day, and welcome to the NLC India Limited Q3 FY '23 Post Results Conference Call hosted by ICICI Securities Limited. [Operator Instructions] Please note that this conference is being recorded.
I now hand the conference over to Mr. Anshuman Ashit from ICICI Securities. Thank you. Over to you, sir.
Thank you, [ David ]. Good day, everyone. On behalf of ICICI Securities, I would like to welcome you all to the Q3 FY '23 Post Results Conference Call of NLC India Limited.
For today's call, we are pleased to have the presence of Mr. M. Prasanna Kumar, Chairman and Managing Director of NLC India Limited.
Shri Prasanna Motupalli is a Gold Medalist in Mechanical Engineering from Andhra Nagarjuna University. He also holds MBA in Operations Management, Marketing Management, Financial Management and Human Resources Management. Also, he is a fellow member of Institute of Engineers. He is a topper of Energy Auditor Examination of Bureau of Energy Efficiency, Government of India. And also certified Level-D exam holder of International Project Management Association.
Prior to assuming charge as CMD of NLC India Limited, he was the Managing Director of Gujarat State Electricity Corporation Limited. Prior to joining GSECL, he was an Executive Director, heading the Corporate Fuel Management vertical of NTPC.
He was also -- he has also held directorship in Coal India-NTPC Urja Private Limited and MahaGuj Collieries Limited. He was the Chairperson of the Western Region Power Committee for the year 2021/'22. Shri Prasanna Kumar began his career as executive trainee with NTPC in the year 1988 and has an illustrious career spanning over 34 years in the power sector and coal.
CMD sir is accompanied by Mr. Mohan Reddy, Director-Planning & Projects, Director-HR Additional Charge, Director-Power Additional Charge; Mr. Suresh Chandra Suman, Director Mining's and Director Finance Additional Charge; Ms. Ritu Sharma, Director DIPAM; and Mr. Mukesh Agrawal, Executive Director Finance.
The call will begin with brief remarks by the management, after which we will open the lines for the Q&A session.
I would now like to hand over the line to CMD sir for his opening remarks. Thank you, and over to you, sir.
Thank you very much, Mr. Anshuman, for hosting this investor call, and thank you for the nice introduction. I would like to share this as an opportunity to interact with the NLCIL stakeholders and to reply to their queries on their financial results for the quarter and 9 months ended 31 December 2022.
I am Prasanna Kumar Motupalli, Chairman and Managing Director of NLC India Limited. I assumed charge on 12th January 2023. Along with me, Shri Mohan Reddy, Director Projects & Planning, also holding Additional Charge of Director Power and Director HR.
Yes. Good afternoon.
Shri Suresh Chandra Suman ji, Director Mines, also holding addition charge of Director Finance.
Good day to everyone.
Ms. Ritu Sharma, Director, DIPAM; and Shri Mukesh Agrawal, Executive Director Finance; and senior management are also joining this call from Delhi. I welcome you all to this conference call.
I would like to give a quick brief on some of the performance highlights of NLC India Limited for the quarter and 9 months ended 31st December 2022. The coal production during the 9 months ended 31/12/2022 is 75.52 lakh metric tonne against 40.83 lakh metric tonne in the corresponding period of the previous year, registering a growth of 84.96%. The above coal production is highest ever in NLCIL history.
Lignite production during the 9 months ended 31st December 2022 is 172.09 lakh metric tonne against 165.92 lakh metric tonne in the corresponding period of the previous year, registering a growth of 3.72%.
Stand-alone thermal power generation during the 9 months ended 31st December 2022 is 16.608 BU against 16.865 BU in the corresponding period of the previous year, a slight decline of 1.52%.
NLCIL thermal average PLF is 69.13% up to December '22 against All India average of 63.23%. NLCIL thermal average PAF is 72.28% up to December '22 against the corresponding period of 73.11%.
Renewable power generation during the 9 months ended 31st December 2022 is 1629.83 MU against 1619.33 MU in the corresponding period of previous year with a marginal increase of 0.65%.
The collection efficiency during the current 9-month period stands at 66.85%. Consolidated power export during the 9 months ended 31st December 2022 is [ 20.07834 ] billion units as against [ 19.24795 ] billion unit in the corresponding period of the previous year, registering a growth of around 4.31%.
MOP wide order dated 15th February 2023 has approved allocation of 400-megawatt power from Talabira thermal power plant to the state of Orissa and 15% NLCIL share of unallocated power 136.32 megawatts from NUPPL to APDCL, Government Assam.
Coming to the key highlights of the financial performance. Stand-alone, the revenue from operations for the 9 months period ending 31st December 2022 is INR 8,659 crores as against INR 7,277 crores during the corresponding period of the previous year, registering a growth of around 90%, respectively.
The total income of the company for the 9 month ended 31 December 2022 is INR 9,161 crores as against INR 7,887 crores in the corresponding period of the previous year, registering a growth of 16%.
Profit for the period for the 9 months ended 31/12/2022 is INR 474 crores as against INR 797 crores in the corresponding period of the previous year. The profit after tax for the period has impacted mainly due to the accounting of CERC orders received during the period, where in CERC has set aside a review of O&M expenses for the year 2014-'19, a similar issue for earlier tariff periods is sub-judice before APTEL and also while issuing tariff orders for 2019-'24, CERC has not considered certain items, including capital additions and advice to consider at actual at the time of filing of truing up petition by NLCIL.
Okay. Thank you.
[Operator Instructions] The first question is from the line of Mohit Kumar from DAM Capital.
Congratulations on taking over as CMD. Sir, wish you all the best for the role. My first question is, sir, what was the one-off in the result? And is there any tax impact of the same, in the sense, I believe that there is roughly INR 8 billion, which pertains to prior period. Is that number correct?
Yes, correct. Please repeat.
INR 800 crore.
INR 800 crores. Correct.
Is there any other one-offs, sir, apart from that?
Yes, if we see, actually, if you analyze our Q3 and the 9 months result, you will find, as the CMD sir has told, that our operations are stable. Even rather more than the previous year, it has been better than the previous year performance in the Q3 and the 9 months.
During the period, the accounting of INR 749 crores has happened, which you have mentioned about the prior period of the lignite price, which -- for which the regulatory orders have come, and they had kept aside saying that it will be taken as per the in line with the [ 9-14 ] order which is sub-judice before the end.
Understood, sir. Secondly, sir, on the status of the tender for Talabira-II, I think it has been pending for a long time. I think this semester happened in November. What is delaying it, sir? And when do you expect it to finalize? And have you identified the L1 bidder?
No. At present, the technical bid of the tender was open. And as you know, there were 2 parties. We are doing the technical evaluation, and we are targeting to complete this technical evaluation in next 1 month period and then we will be opening the bid and after reverse action, the L1 will be decided.
In fact, we are waiting for some possession of some land at least before we finalize the L1 and award the contract. That activity is in full swing, and we are depositing the required amount to state government today itself. So that process is on.
And once some portion of land taken into possession, then this will be -- L1 will be determined and the contract will be placed immediately. And major development is, yesterday, the Government of India, Ministry of Power has allocated 400-megawatt power to the state of Orissa for which we are going to sign the PPA at the earliest.
And with this, the entire 2,400 megawatt PPA tie-up is complete, 2,000 megawatt already signed and 400-megawatt we are going to sign shortly.
So one can expect the tending to happen by March 2023, is that a fair assumption, sir?
Yes. Yes. I think before that, it will be finalized and awarded.
And sir, we were also working on Neyveli 1.3-gigawatt tender, has the bid submission happened, technical bids? And when are you looking to open the financial bid?
Actually, this -- I'm giving to our Director P&P for his response.
So this is -- you are speaking about the probably [ 250 ] megawatts of Neyveli.
Yes.
Tendering process is on. Recently, Board meeting some relaxations have taken place regarding commercial bids as well as specifications. So this tender is in process. Because it's a Neyveli -- lignite-based, the bidders are also facing some challenges. In the meantime, hopefully, they will overcome it and participation will be there.
Actually, this is going to be the first supercritical [ 660-megawatt ] lignite-based thermal power station in the country. And some changes in the terms and conditions in line with the industry's practice is happening. So once that is completed, I think we will go ahead and we will go for the award.
The next question is from the line of [ Rahul Modi ] from Nippon India Asset Management.
Sir, couple of questions...
Sorry to interrupt, sir. The line for you is very low in volume. If you could please speak closer to the mic.
Is it better now?
Yes. This is much better, sir.
So sir, just couple of questions that I had. Firstly is with regard to, sir, the under recovery that we are clocking in right now for mines and for the thermal plants, if you could share that number?
Secondly, on -- directionally on the plants where we are not able to achieve the mandated normative thresholds. How are you going about it to achieve that because it's been a long time. So if you can elaborate on the measures that we are taking because a significant amount of earnings is lost there?
And thirdly, sir, how is Ghatampur progressing? As I believe recently, the Honorable Minister had also visited. And do you see any fast-tracking of the progress?
Okay. I think the first question is regarding annual fixed cost under recovery for the quarter as well as the financial year. For the quarter 3, the annual fixed cost under recovery is INR 152.07 crores. Out of that from TPS-II, it is INR 30.14 crores under recovery, and TPS-II stage 2 INR 46.27 crores under recovery and NLC TPS-II expansion, INR 88.78 crores under recovery.
But as this annual fixed cost under recovery is on an annualized basis and the performance of this plant is consistently good, so we are hoping around -- at the end of the financial year, this will be...
Here, I would like to add one thing, sir, that the under recovery for the 9-month period has reduced. Last year, up to 9 months, it was under recovery was INR 445.75 crores, which has reduced to INR 341.78. Under recovery in the quarter was due to some restricted availability of the lignite.
So by the end of March, we will recover it. We will improve better.
Actually, the lignite production now has improved and as it is on an annualized basis, we are expecting that this under recovery will reduce at the end of the financial year. That is the first question.
And regarding improvement in the under recovery, improvement under recovery. We are taking all the efforts to ensure the units are available for generation and fuel is available for generation to reduce the annual fixed cost charges -- to reduce the under recovery of annual fixed cost charges.
As coming to the Ghatampur, I think now this is now a prestigious project, and we -- it is long pending, and we have to complete this project at the earliest and Honorable Secretary Coal visited the plant in the month of January and 3 days back, Honorable Cabinet Minister for Coal, Shri Pralhad Joshi ji visited the plant and reviewed the status.
And we are targeting to complete the commercial operation of all the 3 units in this calendar year. We want to complete the COD by 31 July -- COD the Unit #1 by 31st July, Unit #2 by 31st October and Unit #3 by 31st December.
Of course, there are some challenges in particularly the balance of plant package. We are addressing that issue. And most of the points we already addressed. And today, also Secretary Coal took review, and we are having clear cut way forward how to achieve this COD by 31st July for the first unit #1, and all the 3 units by 30th December 2023.
And recently, there is also an order from Ministry of Power with allocation of some share of power to Assam also. And we are going to sign PPA with them. With that, the process will be completed.
Sure. Sir, this is very helpful. Sir, one more question that I had on the TPS-II expansion under recovery. Sir, any permanent solution on a technical standpoint, are we looking at so that going forward, we are at least directionally moving towards achieving that path, if you could elaborate a little more as to the steps that we are thinking of taking?
Yes. Exactly, TPS-II, this is a CFBC boiler. And they are having problem of reliability since the beginning. So our team in interaction with different power stations, they formulated some action plans. And we already implemented that action plan in one of the units and that unit is now operating since last 45 days without any problem.
So we are going to replicate same in the other unit also. And with completion of these modifications, the reliability issue of these units will be addressed and the availability and generation from these units will be improved to a great extent. Also on a long-term basis, we are having some modification of replacing some boiler tube with higher grade material. And that also we are procuring. And in the long term, that modification also will help in maintaining the reliability and availability of these units to the required level.
We are consulting [indiscernible] also on this.
And in fact, I just -- I want to add, we are consulting Mrs. [indiscernible] also, the original technology provider of CFBC boiler to BHEL for root cause analysis of the [indiscernible] failures. This is for long term, but in the short term, whatever modifications were required, those modifications are already carried out and the unit has now become operational and sustained manner.
Right. Sir, if you could also just moving on to the next point, which is very helpful. Sir, any thoughts on the renewable capacities going ahead? You had given out a press release with regard to some MOUs with Orissa. We've got 1,400-megawatt under construction. So what is that we are targeting over the next couple of years to add capacity?
See, as on date, we are having around 1,400 megawatt. We are having aggressive plans to add the capacity. Already, we are having -- we won the -- under CPSE scheme, we won 500-megawatt, those 500-megawatt tendering process is on.
And once that is completed, we will be starting the 500-megawatt immediately. In addition to that, we are having -- we signed an MOU with the government of Assam for capacity addition of 1,000 megawatt on a cost-plus basis. And we are identifying the lands in the Assam state so that we can go ahead with the installation of solar power plant.
And in this context, I met the Honorable, Chief Minister of Assam at Lucknow and he assured full support in allocation of good lands to NLCIL, so that the projects can be executed at the earliest.
So in a similar way, we are in talks with the Government of Rajasthan, Government of Orissa for the establishing solar power projects. And we are aiming to add substantial capacity in next 2, 3 years period.
Okay. Sir, what is the target IRR? As you mentioned, it's more or less cost-plus basis, what would be the IRRs that you're looking at - ballpark...
See the IRR in standard basis we look at around 12%. So I think that is our practice.
Okay. And sir, just last question from my side. Sir, could you give a little more details out of the 7.5 million tonnes that you've done in coal production, which are the segmented sales? And what has been the auction price for the E-auction that you've done, how much quantity and what is the price at which we've clocked?
Okay. The target -- actually, our target was 8 million tonnes initially. That we surpassed and now we are targeting for 10.5 million to 11 million metric tonnes in the current financial year.
Out of the total supply, the quantity through -- the total quantity is 75.89 million. Out of that, 15.92 million that was coal sale to our own planned NTPL. And 14.25 under coal swapping agreement with NTPC that 14.25 we supplied. And coal sale to NTPC to other than the coal swapping agreement, we are supplying this to NTPC plants also, so that is 41.86.
This facilitated NTPC to generate more to -- and avoid the losses on account of coal shortage. Out of this -- this accounts to around 21% to NTPL, around 19% to NTPC through swapping arrangement and around 55% to NTPC coal sale through MoU route and E-auction is 5%. So if you translate this 5%, it is 3.86 lakh metric tonne.
And you are talking about the price. The price -- the coal sale to NTPL at the base rate INR 782.33. Coal sale to NTPC through swapping, it is INR 827. Coal sale to NTPC through MoU route, it is INR 952. And coal sale through E-auction, it is INR 4,948. And the auction rates are varying from INR 2,473 to INR 8,135.
That is In the month of...
In the month of April.
The last E-auction...
In the last E-auction it was INR 2,473.
To INR 2,513.
To INR 2,513.
Sir, when was this last auction?
Last auction was done in the month of February.
We have the next question from the line of Ashwani Sharma from ICICI Securities.
Sir, I have 2 questions. First is on your methanol project. So what is the CapEx in this project, sir? And also, if you could comment on the commercial angle of the project?
Methanol project, CapEx is INR 4,394 crore.
You're asking about lignite to methanol project?
Yes, yes.
Yes, it's a 0.40 MTPA capacity plan and the estimated project cost is INR 4,394 crores. And for this, the lignite requirement is around 2.26 million tonnes per annum. And it is around -- project is 46 -- month duration project. And this project is expected anyway in the year '26-'27.
And your comments on the commercial aspects of the project, sir?
Commercial project, March '27.
No. No. I mean what is the endgame here in terms of revenue in terms of profitability?
Okay. Okay. Actually, the project cost is INR 4,394 crores, as I earlier told, and this will be a debt to equity of 80-20. And the project schedule is around 42 months. And the cost of production is around INR 25,588 per metric tonne. So selling price for 7 years average is around INR 30,848 per metric tonne.
So IRR for this project is 8.28% to 8.73%. And IRR equity is 11.83% to 11.95%. And the payback period is 8.38 years. And the profit before and after taxes are approximately INR 189 crores and INR 120 crores approximately.
Okay. Sir, my second question is again on the TPS-II second expansion. What is the status of this project, sir, in terms of tendering?
TPS-II second expansion, we already tendered, but this being a first supercritical 660 megawatt power station in the country, there were some clarifications from the parties as well as some requirements in line with the current industrial practice. So we are just doing that modification.
And the estimated project cost was around INR 11,189 crores. So we are doing some changes in the terms and conditions and specification in line with the current industrial practice to increase more participation. So that recently we uploaded. And after that, we will open that and award that at earliest.
So any tentative timeline for awarding this project?
I think October '24. I think in the current financial year -- next financial year, that will be -- that can be completed.
So October '24, okay.
October '23.
October '23.
We have the next question from the line of Akhilesh Bhandari from ICICI Prudential Asset Management Company.
Sir, firstly, on the Talabira mine. So as per the mining plan, what is the expected output in FY '24 and '25 from the mine?
In '24, '25, actually, '22-'23, it was 8 million tonne, we are going to land at 10 million tonne. '23-'24, it is 12 million tonne and '24-'25, 16 million tonne.
And so what is the cost of production broadly?
Cost of production. Cost of production is approximately...
600...
680 or 700 some -- in between that figure.
Sir, as of 31 December, what is the receivable level at the stand-alone and consol level?
Pardon.
The sustainable level, the standalone and the consol receivable level.
Stand-alone basis, the receivables is INR 2,326.
The standalone basis as on December is some INR 6,493 crores against the previous year level of INR 4,580 crore.
It is INR 6,493 crore against the...
Against the INR 4,580 crore. The reason for increase is basically on account of the 2 issues are there because everybody knows now with the Ministry of Power has brought out a good guideline for the liquidation of deals.
So TANGEDCO and other DISCOMs has opted for liquidation of INR 724 crore, which I had explained in the last investor meet also. So that has gone to the installment plan. And second is we had made accounted Vivad Se Vishwas scheme and we had got a wage revision order from the CERC. For all these to put together around INR 1,000 crore billing we had done in the month of December, which has become due on 16th February, so the debtors level has increased in the quarter -- as on December when we are comparing from the previous year.
Okay. So the unbilled amount was INR 1,000 crore?
Yes. Billed -- which has been billed into the...
Billed but due. Okay, okay. Billed, but not due.
Yes.
And at the consolidated level?
Consolidated level, right now -- whatever, I will provide you later on.
Also this -- you mentioned that the collection efficiency was the 68% or 66%, if I'm not wrong, you mentioned that number earlier. So this INR 1,000 crore which has come due to wage revision and with -- sorry, Vivad se Vishwas scheme that is the only reason why the collection efficiency is down or there is some other reason as well?
There is one more reason is there. We had got a regulatory order for the lignite price in the month of March. So against that, as the order was against us, TANGEDCO has suo moto detected some INR 1,200 crores on account of this on the protest that the order is against you, you should pay the money. Though we had gone for the review petition, which is under consideration. So that amount withheld is also appearing into the [ debtor ]. So that has brought down the collection efficiency little down.
And sir, what is -- how do we plan on proceeding against this?
Pardon me?
What is -- how do we plan on proceeding? You mentioned that it's -- you should have filed a review petition, so what is the timeline?
Actually, this lignite issue has a cost-cutting effect of 2009-'14 orders of the act -- CERC, which is in the APTEL. So CERC has taken a view. So being -- it is a sub-judice order, we will not take any further decision, let the Aptel decision should come.
We are trying to get early hearing posting in the APTEL. So I cannot fix any time line for the liquidation of just because being a regulatory issue.
But we are trying our level best to pursue that and complete that process at the earliest because that is having impact on both the periods.
Okay. And sir, there was a reversal of regulatory income of INR 749 crores in this quarter. So any other such hit which can come in the subsequent quarters because of any pending orders? How should we consider this?
This is a onetime order. Incidentally, 3, 4 order has come on together in the same quarter, which have resulted this and this is a onetime effect is there. So I won't think that further order will be negative and such type of impact. I'm not envisaging further.
The next question is from the line of [ Vikesh Jain ] from ONGC.
Yes, one question is how much is the tariff realized per unit of power, thermal power? And is it the same that was in the year 2014 to 2019 block or there is some hike in that power realization?
No, actually, the voice is not clear. I think if you can repeat the question?
Okay. Yes, what I'm asking is what is the tariff, power tariff realized per unit of power? Is it the same that was in 2014 to '19 bracket or after 2019, there is some hike in the realization, the power that you sell?
Power tariff, actually, in some of the plants, AFC has come down because some nonadmission of the additional capitalization -- non-admission of the capital -- energy charges for the TPS-II, capacity charges for the TPS-II stage 1 is 0.71, stage 2 is 0.74, TPS-I expense...
Question is whether there is any change in the tariff structures within...
Tariff structure is same AFC and the energy charge.
And what is the actual net value...
AFC has -- some plant, it has reduced. Because of that plants are getting old AFC has reduced in comparison to the earlier period.
Okay. One more question because I'm not an expert here. 30th Page results in the previous quarter and for a normal person, this regulatory [ deferred ] of INR 1,641 crores, how much of it is one-off and how much of it is recurring?
Okay. Actually see, our average thermal tariff is 2.39 and out of that, 1.38 is on account of fixed charges and balance is on account of variable charges.
That's okay. My second question is there is a charge of INR 1,641 crore on account of regulatory deferred. So out of INR 1,641 crore how much of -- how much is one-off and how much is recurring?
I will tell you.
One minute.
There is a regulatory movement of INR 1,641 crore in the quarter, which basically consist of 4 orders are there. There is a one order of the wage revision. This wage revision order is regarding in 2016 and 2017 when the wage revision of the executive and nonexecutive has taken place, [indiscernible] salary has taken place, and the gratuity limit has increased from INR 10 lakh to INR 20 lakh. So when the CERC fixed the O&M charges in 2014, at that time, these were not factored in the O&M cost.
So these are the additional costs to all the generating companies, and we have also filed a petition before the CERC for compensation of this. So this has been allowed by the CERC against our claim of INR 783 crore they had allowed some INR 660 crore leaving an impact of INR 112 crore. So this is a onetime impact.
There is no recurring impact is going to come to the company. There is similarly [ 2 ] order for the tariff projection for the period of '19-'24 for the TPS-II expansion and TPS-I expansion, where the regulatory authority has not accepted my projected capital addition with the ground that this expenditure will be entertained at the time of truing up of the expenditure.
But as we are very well know non-admission of capital charges has affected the tariff in 3 ways. One is the return on equity. Second is the depreciation and third is the interest on the loan. So this order is also onetime, but its effect for the capitalization, we will reap in the year 2024-'25 when the truing up of the O&M expenses will come.
So it will give some additional amount. It is not going to be a negative. So only the income, which is likely to come in right now, '19-'24, will have been deferred for some time period.
O&M expenses already had experienced some INR 739 crores, it is pertaining to 2014-'19 and its decision is dependent on the APTEL, which will -- when it will come, it will be -- definitely is going to give the positive impact to the company. So all these orders are of onetime nature.
Are you clear?
Yes. Yes. One thing just there is a disclaimer that because of problems in land acquisition and local agitation, you may not be -- it might not be growing concern. Is this problem that serious?
Actually, see, for any mining company, land acquisition is very important to increase the production levels. So the -- although we acquired some land that possession is still pending. And there are some issues for the land acquisition. So we are taking up the issue with both state government as well as the district administration, and we are trying to sort out that issue at the earliest.
But still, there is a problematic and it is happening at a very slow pace. So that's why the disclaimer was given, this may affect our production process.
But however, very recently...
One request is, sir...
Yes. However, we could get some land recently and our production level also 10% to 15% got in trade since the month of February. So what was the production level of January month, we increased our production 15% higher.
Okay. Fine. And now one request because it's very difficult to decipher you...
Sorry to interrupt. Sir, may we ask you to return to the question queue for further questions?
Yes, please have a document as to how what means what in your disclaimer -- results and balance sheets. That's my request. Not a question.
We have the next question from the line of Rajesh Majumdar from B&K Securities.
Sir, I had a couple of questions. One is on Ghatampur coal linkage. When is that likely to be operational? And in the interim, where will the coal linkage come sir, for Ghatampur operations?
Actually, Ghatampur, 1 city's commission, it requires 2 types of coal. One is the start-up coal for facilitating the commissioning of the units. That start-up coal is already tied up, and we will be getting that coal from Northern Coalfields Limited.
And for other units of Ghatampur also, the CL is already allocated the linkage from different subsidiaries of Coal India, and that is fully tied up. And our -- the linked mine, Pachwara South Coal Block, the production is expected from January '24.
So from January '24 onwards, we will be getting coal from Pachwara. But meanwhile, if there is some requirement is there, we will be sending our Talabira coal to Ghatampur. So all 3 types of coals are already tied up and necessary actions for logistic are already taken. So the coal is not a problem for Ghatampur to run on a sustained basis.
And for the unit #1, we got around 0.33 million metric tonnes from NCL and BCCL. And for other units, we got around 0.66 million metric tonne from NCL, CCL, MCL and BCCL. Total, we got around 1 million metric tonne of coal as a commissioning coal.
So do you envisage coal going from Talabira for Ghatampur at all, or do you feel the coal linkages are sufficient right now for Ghatampur, all the 3 units to be operational?
See, once our supplies from Pachwara gets started, then there is no other alternative supply is required. But as on date, once we complete the commissioning coal, then at that point of time, we may require some coal. But meanwhile, we approach the Ministry of Coal also for giving the some bridge linkage from the nearby coal subsidiaries, and it is under consideration of Ministry of Coal.
So once the commissioning coal is completed, then we will use bridge linkage coal, then we will use the Pachwara Block coal. And meanwhile, if any shortfall is there at any point of time, then we will think of sending coal from Talabira mines to Ghatampur so that there will not be any generation loss on account of coal shortage.
Right, sir. So my follow-up question would be, your coal production that you envisage in FY '25 from Talabira, you said it's about 16 million tonnes. So what would be the breakup? Will it be similar to what it is in the 9 months in like what you mentioned on NTPL, NTPC or will it be something different? Can you give the breakup of the 16 million envisage?
Just a minute. Our priority -- the first priority is our NTPL. Second priority is giving to NTPC. And the third priority is going to E-auction for the supply of this coal. So in the same priority, whatever happened in the first 9 months, in the same priority, we will be sending coal.
And NTPL cannot go up more than this, right? So NTPC can go up in proportion to NTPC requirements. Is that correct assumption?
Come again, please?
I'm saying, NTPL has already taken the coal...
NTPL, our requirement is around 5 million metric tonne.
The next question is from the line of Rahul Modi from Nippon India Asset Management.
Just a couple of things, wanted to check with you. One is we've been having these regulatory orders, delays coming in, which has created a lot of changes in our P&L. Secondly, so when do you expect this to now get all cleared and restarting on a clean slate?
And the second point is the debtors receivable trajectory was after what the Ministry of Power has done. Across the industry, we've seen massive declining trend of receivables. Now when do we get on that path where despite the one-offs and other things, business comes back as usual. So that we are getting to -- so instead of a 45-day, we can have a 60-day receivable days or 65. But whatever historical issues are there, that gets sorted out. Directionally, when do you see things getting normalized and steps taking for that?
Actually, the improvement already started. Recently, also, we received major payment from TANGEDCO and other states also we are pursuing for liquidating the dues at the earliest. So we are hopeful that in next -- Mukeshji?
Sir, apart from some historic issues which are there, we are getting all the current dues regularly. And we are trying to settle all these old cases as early as possible. I how within the period of next couple of months, I will be able to settle all...
So in the current financial year, I think by the first quarter of the financial year, we will be able to settle all the issues and move forward.
The next question is from the line of from Baroda BNP Paribas Mutual Funds.
I had 2 questions. One was on the -- if you look at the segmental numbers, there is a little bit of a strain on the mining operations. What exactly do you need in the mining operations as a revision or a reset to bring it back to a normative level of profitability?
And the second part was, what is the current basis of how you are accounting for stuff like O&M expenses or whether it is tariff setting, given that a lot of your plants still don't have explicit tariff orders yet awarded. So just to prevent some kind of a reversal like what happened now, what is the basis on which you're providing for them?
Coming to your first question regarding the strain on the mining in the segmental performance. This performance is mainly because of the reason which we already explained the land -- land requirement and the regulatory accounting. Regulatory according of around INR 210 crores for the 2014-'19 and [ INR 116 ] crores with surcharge of INR 94 crores.
And the main reason is nonavailability of minable land and as we already communicated the land possession has started, and our production performance has improved by almost 15% if you compare with January.
So we are confident that we can sort out all the issues and bring the production levels to required extent. And in the mining -- coal mining also, we are improving our daily production.
Yesterday, our Talabira project achieved all-time highest ever coal dispatch of around 48,000 metric tonne. So we are improving in both lignite and coal mining, and we will come back to normalcy at the earliest.
Okay. And the other part, sir, what is the basis of tariff setting and the basis of O&M escalations that you're providing for now in the accounts, so that you don't have the magnitude of reversals later on?
So this is in line with the CERC tariff order and tariff regulation. We are exactly in line with that, we are providing, and we are making the accounts in line with that CERC tariff order only.
Actually, presently, escalation is 3.5% as per the CERC [ second ] regulation. And for the period of 2019-'24, we had already filed a tariff petition before the CRC, which is under consideration. So we believe, as per my tariff petition, we had -- the petition rate is some INR 2,000-plus crore -- per tonne INR 2,100 crores, INR 2,200 crores, whereas we are billing at [ INR 1,950 ] crores, INR 1,950 crore per tonne. So won't think there will be any surprise. When the order will come, it will be -- lead to some incomes to the company.
Okay. And O&M escalation is about 3.5%. Is my understanding correct?
That is exactly in line with the CERC regulation, and we are following same thing.
The next question is from the line of Nikhil Abhyankar from DAM Capital.
Just a continuation from the earlier question. Sir, what is -- do we expect the ordering for Neyveli 1.3 gigawatt to happen in the H1 or will it be next year?
Pardon? Please come again?
Will the ordering for Neyveli 1.3 gigawatts happen in the H1 FY '24 or H2?
I think it will go to H2. This being -- you are talking about the 660-megawatt -- 1,320 megawatt. Actually, this will be -- we are expecting by around October '23. There are mainly 2 reasons for that because this is first time the country this is happening and technologies are also limited. That's why we are expecting it by October '23. We'll be completing it latest by October '23.
By October '23, okay. And sir, similar for coal gasification projects. So when do we expect the ordering? And are we expecting any viability gap funding for it?
Actually, the tendering process is actively on. And most of the critical activities have already been completed. Although our final commissioning is expected in the 31st March 2027, but at present, the tendering process, tender preparation and floating activities have been completed and March 20 -- March 1st is the last date for the tender opening.
So once we do that, then we will award that at the earliest. And the tender opening and bid evaluation will be completed by July '23 and the environment clearance by September '23. And finally, award of plant is by '24 and the commissioning by 2027.
So far, viability gap funding is concerned, actually, government of India has identified INR 3,000 crores for 5 projects. So one of them is this Neyveli lignite gasification project. So we have been assured with INR 600 crores of viability gap funding by Government of India.
Okay. And sir, is BHEL eligible for this tender?
One more point I want to add in this one. We know this is being monitored by the Ministry of Coal as well as the highest authority of the country. So the activities they are keeping track of the activities and monitoring the awarded at the earliest and the completion of the project at the earliest. And BHEL is not a party as on -- at present. So we don't know by the tender completion it may come. But at present, BHEL is not the party.
They have not shown any interest in participating this tender.
Okay. And just a final question, sir. Sir, what is the profit contribution for -- from Talabira coal?
One minute. INR 247 crores...
In the quarter 3.
In the quarter 3...
And for the 9 months?
For 9 months is INR 481 crores.
INR 481 crores. And INR 247 crores for Q3?
Yes.
The next question is from the line of Anupam Goswami from BOB Capital.
Sir, can you mention the 9-month cash flow from operations you have -- and what is the cash balance right now?
Cash flow in 9 months, just one minute.
Cash flow in the 9 months total is around INR 9,000 crores is there from the realization from deferred source. And the balance -- cash balance in the December was around almost flat. It was some INR 100 crore or INR 50 crore was there.
So we are not borrowing any working capital right now from last 1 month -- 1 year. Temporarily basis INR 200 crores or INR 300 crores sometimes we are borrowing for 7 days or 10 days.
Fine. Sir, if you can repeat your mining volume and units sold, I kind of missed the beginning. So that would be very helpful?
Mr. Goswami, I would request you to please repeat your question.
Sir, if you can repeat your mining volume and units sold in the quarter?
Sorry, sir, the line for you is bad at the moment. We are not able to hear you clearly.
Sir, I just wanted to know your mining volume and units sold for the quarter?
The mining revenue up to quarter 3 is INR 5,515 crores compared to INR 4,786 crores in the previous financial year, 9 months period. And the power revenue is INR 7,081 crores in the current financial year of 9 months. And correspondingly, it was INR 6,418 crores in the year '21-'22.
Sir, your volume, please, sir?
Our volume is coal 75.52 lakh metric tonne against 40.83 lakh metric tonne in the previous year, that is coal production. And in lignite production 172.09 lakh metric tonne in the current financial year, 9 months, against 165.92 lakh metric tonne, in the corresponding period in the previous financial year with a growth of around 3.72%. And coal production is registered a growth of almost 85%.
We have the next question from the line of Rabindra Nath Nayak from Sunidhi Securities.
Sir, majority of the questions are answered. So one request, sir, you are the auction and also the Talabira-related activities that if you can upload in the website, that would be helpful on a monthly basis to know for the investors. So what is happening on that side.
And secondly, if you are -- it is good that the accounting team is actually giving the all details in a convincing manner in every quarter. But in addition to that, if you can give a relevant detail in condensed manner and also the adjusted performance in terms of adjusted PAT that would be helpful for the investor to understand the business very well.
So regarding that, another thing that this true-up petition that has come up, if I'm not wrong, we have provided so far around INR 100 crores, which is including interest. So relating to that, whether we -- there is some -- any remainder provision we have to make or it is the final provision as per our assessment?
Okay. Regarding the first point you raised, I think that is a very good suggestion. We've noted that, and we will implement that. And regarding the second part of the question, our Executive Director, Mukesh Agrawalji will answer that.
As you're asking the -- please, sir, second part once again, I would like to know.
Sir, the -- regarding this true-up petition, the lignite true-up petition -- so around INR 200 crores with the interest you already provided in our books. So whether any remainder provision we are expecting from this provision? Or it is -- there is another -- it is a final provision as per our assessment?
Yes. I would like to clear if we can see the notes of account, we had already provided INR 584 crores in earlier year for the lignite for 2014-'19. And this year -- this quarter, we had made INR 739 crore. No further provision is expected on account of lignite in the future for the tariff period 2014-'19.
Okay. And regarding just another thing that we are looking at lignite price as per the approved price of regulatory price, we are booking the lignite price at a lower rate. So still we are continuing with the structure or it is -- there is a change in the structure of the lignite pricing in the tariff?
You are right, sir. We are still booking as per the CERC order at INR 1,950 [ crore ] per tonne. We had filed our petition for the period 2019-'24, which is under examination at the CERC. So till the final outcome of '19-'24 will not come, we will continue to, with the CERC order rate of INR 1,950 per tonne.
Okay. Okay. And sir, we have -- we set up a INR 70,000 crores CapEx in 2030 in our total plan. So what has been spent so far, what is the revised CapEx going ahead?
See, we are having -- as per our corporate plan, we are having plan of adding INR 70,000 crores by 2030. So we are working in different directions for this. As I already explained, we are targeting for aggressively adding the solar capacity and we are already having CPSE scheme. We already got CPSE scheme. We are tying up with the Government of Assam for adding 1,000 megawatts.
We are tying up with the government of Rajasthan for adding 300 megawatts. And our -- 2 x 660 megawatts that will be awarded by October '23, and our Talabira project, we are expecting to award this in the current financial year.
I think with all these capacity additions, the CapEx will be around INR 70,000 crores by 2030. Also, we are going for the innovative ideas of the lignite, methanol project is also there. And we are participating in 600-megawatt tender at Gujarat Khavda Solar Park, which is the largest solar park in the country, and in Asia, in the world. Also, we are trying to get some orders from SECI participating in their tender. And we are also participating in 810-megawatt and 1,000 megawatt solar of [ RRVUNL ] and [ RVUNL]. So I think with all these capacity additions, we are confident that we will be spending the CapEx by 2030.
We are going ahead with our corporate plan.
So what we have spent so far and what is expected, whether this INR 70,000 crores includes the coal, gas, the lignite gasification plant or doesn't include the gasification plant...
It includes the lignite to methanol project. It includes all the initiatives which we are planning.
Okay. Okay. So how much you have spent so far out of the INR 70,000 crores?
See, INR 70,000 crores is for next 8 years and it is starting of the year. So now most of our tenders are in the advanced stage. This 300-megawatt solar, we will be awarding in the current financial year, and we will be spending some CapEx. But most of our CapEx spending will be coming in the next financial year when we will be adding the Talabira project and the 2 x 660-megawatt project and other solar projects.
Here, I would like to clarify you, as you were asking, sir. What we are incurring expenditure in NUPPL Ghatampur project INR 1,000 crores, INR 1,500 crores that is from this INR 700 crores, what we are doing -- INR 70,000 crores. Similarly, what capital expenditure we are doing in the Talabira mine INR 100 crores to INR 200 crores year, that is also being the part of this INR 70,000 crore CapEx.
Okay, okay. And what is the updated CapEx for U.P. plant? This the last question, please. What is the total updated CapEx for UP plant, sir?
Which plant?
Which plant?
UP, Ghatampur plant?
Ghatampur plant, the approved one INR 17,000 some odd...
INR 238 crores.
INR 238 crores and that will be revised and it will be INR 19,000 crores.
INR 19,000 plus crores.
INR 19,000?
INR 19,000 crores.
Ladies and gentlemen, we will take the last question from the line of [ Jitendra ] from KJN.
Yes, the numbers were really good, the quarterly numbers were because of the string of orders. There was a loss on the net basis. A lot of questions has been about the string of order. Sir, can you tell me whether there is a chance of any reversal of this because you have made a review petition for this string of order. So what is the fair chance of getting back some money. Because after 10 years, you get this string of orders, gain will happen with -- for the year '19 -- 2019 to '24 when the string of order will come. So...
See, we are confident that we will be -- the orders will be favorable to NLCIL after the orders which are pending capital that will be in our favor only. So I think there will be a positive impact on our financials.
So out of that INR 1,600 crore, how much you will get the reversal in the next...
We expect almost INR 2,500 crores. If the lignite O&M issue order will come in my favor, I had a provision of INR 1,200 crores in the period of '09-'14. And similarly, INR 1,300 crore provision is for the '14-'19. So if the order will be in my favor some INR 2,500 crore worth will come to the company.
This INR 2,500 crores will be credited to the profit and loss account you mean to say...
Yes, yes, we haven't made a provision.
Like what we did now, that will be reversed in the profit and loss account only. And we are fully confident that this will happen in our favor.
So this may happen in the next quarter, I mean to say, in the March quarter itself?
No. I think in the first quarter, it may happen because it is pending with APTEL, and we are pursuing it for the final orders. And we will try our level best to get the order at the earliest. But I think in the current financial year, it may not be possible, it will be going to next financial year, the first quarter of next financial year.
So we need not worry anything -- there should be no worry about this string of order right now.
Yes. Yes. You may not worry anything about that.
I would now like to hand the conference over to Mr. Anshuman Ashit for closing comments. Over to you, sir.
On behalf of ICICI Securities, I would like to thank NLC India for giving us the opportunity to host this call. We're also very grateful to the management for their time and patiently answering all the queries. And I would also like to thank to -- and thank all the participants for making this session very interactive. Sir, any closing comments from your end?
Thank you. Thank you for conducting the entire proceedings in a seamless manner. And we got many inputs, we interacted with many people and we got many inputs to improve ourselves and improve our system and some displays in our website also. We took note of all the suggestions which we receive. And we will implement them in the interest of the company, and we'll take the organization to new height that is our objective. Thank you. Thank you, Anshumanji.
Thank you so much.
Thank you very much. On behalf of ICICI Securities, that concludes this conference. Thank you for joining us. You may now disconnect your lines.