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NTPC Ltd
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Good day, ladies and gentlemen, and welcome to the Q2 FY '19 Earnings Conference Call of NTPC Limited, hosted by Motilal Oswal Securities Limited.[Operator Instructions] Please note that this conference is being recorded. I now hand the conference over to Mr. Sanjay Jain from Motilal Oswal Securities. Thank you, and over to you, sir.
Yes. Thank you. So on behalf of Motilal Oswal Securities, I welcome you all to the NTPC conference call to discuss the second quarter results. It gives me great pleasure to welcome the management of NTPC. This -- We'll start with an opening remarks from the CFO, and then there will be a Q&A session. So now I hand over the call to Mr. Sudhir Arya, CFO of the company. Sir, please.
Yes. Good evening to everybody. I welcome you all to the Q2 FY '19 con call of NTPC Limited. And I have with me Shri Saptarshi, Director of Human Resources; Shri Anand Kumar Gupta, Director of Commercial; Shri Prakash Tiwari, Director of Operations; Shri Mohapatra, Director of Technical. I also have with me Shri Anil Kumar Gautam, Executive Director, Finance; Mrs. Sangeeta Bhatia, Executive Director, Finance; and other key members of NTPC team. Today, the company has announced the unaudited financial results for the second quarter of FY '19. The key performance highlights for the quarter and half year ended 30th September 2018 have already been disclosed on both the stock exchanges. So now I go to the operational highlights for our Q2 FY '19. In Q2 FY '19, NTPC's stand-alone gross generation increased by 0.95 billion units to 65.99 BUs, registering an increase of 1.46% over the corresponding previous period. Gross generation of NTPC Group increased by 1.38 billion units to 73.13 BUs, registering an increase of 1.92%.In H1 FY '19, NTPC's stand-alone gross generation increased by 5.74 BUs to 135.20 billion units, registering an increase of 4.44% over the corresponding previous period.Gross generation of NTPC Group increased by 6.69 billion units to 150.04 billion units, registering an increase of 4.67%. The installed capacity of NTPC on stand-alone basis and for the group as a whole is 46,100 megawatts and 53,651 megawatts, respectively, as on 30th September 2018. Commercial capacity of 800 megawatts was added during Q2 at Kudgi. With this, the commercial capacity of NTPC on stand-alone basis and for the group as a whole has become 45,300 megawatts and 52,191 megawatts, respectively, as on 30th September 2018.For H1 FY '19, 3 coal stations of NTPC were among the top 10 performing stations in the country in terms of PLF. Sipat had a PLF of 90.60% was ranked fifth, Vindhyachal with 89.48% was ranked eighth; and Talcher Thermal with 88.74% was ranked ninth. In total, 6 stations of NTPC have clocked over 85% of PLF. During H1 FY '19, PLF of coal stations was 75.29% as against the national average of 60.67%.We have suffered loss of generation due to grid restrictions. For coal base stations, the loss was 10.22 billion units in Q2 and 17.77 billion units in H1 of FY '19. Similarly, for gas base stations, the loss was 6.94 BUs in Q2 and 12.58 BUs H1 of FY '19. The generation loss on account of fuel supply constraint in the coal base stations was 1.84 billion units in Q2 and 3.38 billion units in FY '19. Mr. S.K. Roy, our Director for this call has joined the con call. Now we welcome him. To continue, NTPC Limited has participated in 500 megawatts tender floated by UPNEDA in Uttar Pradesh New and Renewable Energy Development Agency for grid-connected solar projects in the month of October. In the reverse auction held on 10th October 2018, NTPC participated for 160 megawatts of solar capacity and has won the entire capacity, which was bid by it, comprising 145 -- 140 megawatts at levelized tariff of INR 3.17 per unit and 20 megawatt at a levelized tariff of INR 3.21 per unit, which will be applicable for 25 years. The 150 megawatt of solar projects shall be set up by NTPC and shall add to the installed capacity of NTPC. NTPC RE stations recorded generation of 757 million units in H1 FY '19 as against 573 million units in the corresponding previous period.During Q2 of FY '19, we have extracted approximately 1.14 million metric tonnes of coal from our Pakri Barwadih coal mine. In all, this mine has produced 5.44 million metric tonnes of coal in September 2018. Coal production has also commenced from Dulanga coal block, where approximately 3.2 lakhs cubic meter of over burden has been removed and 4,000 tonnes of coal extracted in September 2018.Our company has resubmitted RFQ for development of 1,200-megawatt clean coal base power project on BOO basis at Duqm in Oman in June 2018. The bid is under evaluation right now. NTPC has qualified the request for qualification for development of 600 megawatts PV solar project on BOO basis, west of Nile in Egypt in February 2018. This also is under process.We have signed a memorandum agreement with IRCTC for setting up of manufacturing facility for packaged drinking water at Simhadri Super Thermal Power Project of NTPC. Now regarding environment management. We have taken several initiatives with -- for compliance of new norms and control of salt. FGD systems are under various stages of implementation in 63.82 gigawatts of capacity. So first, FGD has been commissioned and operationalized at Vindhyachal. Erection of FGD at Bongaigaon is in advanced stage. FGD systems packaged for 24.08 gigawatts comprising 40 units through bulk tenders amounting to INR 10,700 crores has been -- that has been recorded. Then, award of FGD packages for 28.55 gigawatt capacity is under process and is expected to be completed by November [indiscernible]. Regarding NOx control in coal-fired plants, it is presently being achieved by controlling the NOx production through adopting best conduction practices. NOx reduction technologies are modification of conversion system, installation of SNCR, SCR or combination of these. To comply with new norms, all units will require installation of appropriate de-NOx system based on the emission level. 9 SCR and 3 SNCR pilot tests are under execution by 8 vendors in order to assess the performance on high-ash Indian coal. And these are likely to be completed by May 2019. Further, as a part of its commitment to the environment, NTPC has taken a new initiative to utilize agro residue for power generation. The utilization of agro residue-based biofuel for power generation will not only reduce in-field crop residue burning, resulting in lower air pollution, but will also reduce carbon footprint of coal-based power plants. Up to 10% agro residue-based biofuels coal-firing with coal has been successfully demonstrated in NTPC Dadri and will be operational before end of December 2018.Now coming to financial highlights. The gross sales for Q1 FY '19 is INR 22,211.96 crores as against corresponding previous quarter sales of INR 19,536.59 crores, registering an increase of 13.69%. On half-yearly basis, there is an increase of 14.16% in the gross sales. That is from INR 39,231.98 crores in H1 of FY '18 to INR 44,789.10 crores in current H1. Total income for Q2 FY '19 is INR 22,485.96 crore as against corresponding quarter of previous year. Total income of INR 19,960.35 crores, registering an increase of 12.65%. On half-year basis, there is an increase of 11.91% in the total income. That is from INR 40,502.28 crores in H1 of previous year. It has now become INR 45,325.94 crore. PBT for Q2 FY '19 is INR 2,634.68 crore, as against INR 3,069.69 crore in the previous year. On half-year basis, PBT is INR 5,645.81 crore as against INR 6,306.80 crore in H1 of FY '18.Coming to PAT. PAT for Q2 FY '19 is INR 2,426.02 crore, as against INR 2,438.60 crore in the corresponding quarter of previous year. On half-year basis, PAT is INR 5,014.16 crore, as against INR 5,056.77 crore in H1 of FY '18.Now further industrial financial figures. Regulated equity as on 30th September 2018 has become INR 51,993.44 crore. I'll repeat INR 51,993.44 crore. Regarding fund mobilization, average cost of borrowing for H1 FY '19, it was 6.79% as compared to 6.99% in H1 of FY '18. The decrease here is on account of lower rate of interest on new borrowings.On CapEx, in H1 FY '19, we have incurred a CapEx of INR 10,018.31 crore as against INR 9,062.79 crore in the previous H1. The CapEx by the other group companies during H1 of FY '19 was INR 841.89 crore. Thus, the total group CapEx for H1 FY '19 was INR 10,860.20 crore. The capital outlay for FY '19 has been estimated at INR 22,300 crore for NTPC.Now head onto -- we'll discuss amount of fuel. During H1 FY '19, coal materialization was 97% of -- was 94.97% in the H1. And in the Q2, it was -- sorry, in H1 of current financial year, the coal materialization is 97%, as against 94.97% during the previous H1. And coal supply during H1 of FY '19 was 83.14 million metric tonne. This comprises 82.95 MMT of domestic coal and 0.19 million metric tonne of imported coal. The domestic supply during corresponding previous period was 76.21 million metric tonnes with 76.05 million metric tonne of domestic coal and 0.16 million metric tonne of imported coal. Coal consumption during H1 FY '19 was 85.28 million metric tonne, comprising of 85.09 million metric tonne of domestic and 0.19 million metric tonne of imported coal. The corresponding figures for the previous year were 82.21 million metric tonne and 82 million, comprising of 82 million of domestic and 0.21 of imported coal. The gas consumption during H1 FY '19 was 4.37 million metric standard cubic meters per day as against 5.3 MMSCMD in H1 of FY '18. The gas consumption of H1 FY '19 procured under APM plus PMT mechanism was 2.93 MMSCMD under non-APM gas 0.62 MMSCMD and on the quarter RLNG was 0.82 MMSCMD.On coal mining, cumulative expenditure of INR 5,482.86 crore has been incurred on development of coal mines since 30th September 2018. The total expenditure incurred in this current financial year in the first 6 months was INR 419.11.Now I will briefly touch upon some of the NTPC Group companies. NVVN, our trading subsidiary, transacted 8.82 billion units during H1 of FY '19 as against 7.93 billion units during H1 of FY '18, which is resulting in an increase of 11.24% units transacted during H1 FY '19. And it includes 2.58 billion units of solar-bundled power, 2.36 billion units of bilaterally-traded power, 2.13 billion units under cross-border trading and 1.75 billion units which were traded through the power exchange. NVVN has recently signed in September 2018, a power purchase agreement with Bangladesh Power Development Board for supply of additional 300 megawatts of power in addition to what they were supplying earlier also. During H1 FY '19, we have received dividend of INR 8.30 crores from our subsidiaries and joint venture companies. Of this, INR 3.250 crores was received from Utility Powertech Limited -- Power Limited and INR 4.80 crores from PTC India Limited, as against INR 36.10 crore received in the previous H1.Then NTPC continues to win laurels and awards in various fields. Major awards received in Q2 FY '19 are: That NTPC was ranked first in independent power producers and energy traders globally in Platts Top 250 Global Energy Ranking 2018; NTPC has been awarded the mid-day INFRA Icon on the implementation of [ contrast over ] information and management systems. Department of Scientific and Industrial Research Government of India has recognized NTPC's R&D wing, NETRA as in-house R&D unit. This recognition has come to NTPC for the first time and has entitled NTPC to claim various benefits like custom duty exemptions, certain tax exemption and key credit tax exemption, et cetera. NTPC has won the Prestigious Association for Talent Development 2018 Award. NTPC Ramagundam, Vindhaychal and Kawas stations were recognized by CII, Confederation of Indian Industry, as an excellent energy-efficient unit in thermal and gas power sector.So these were some of the highlights, which the management wanted to share before the Q&A. Thank you.
[Operator Instructions] The first question is from the line of Subhadip Mitra from JM Financial.
Sir, if you could please help me with the adjusted PAT number for the current quarter.
Okay. We'll share that with you. Can we have the next question? We'll share that with you in due course.
Understood. Secondly, I think if -- I've been observing the coal stock data at power plants. And at least as you see it, it appears that I think since mid-October, most of the -- many of the plants, especially the southern coal plants, seem to be having a low stock of coal. So just wanted to inquire how is it impacting our plants in that region. And what seems to be the major issue? Why are the coal stocks falling?
Okay. I'm handing over to our Shri Mohapatra, [ Area ] Director of [ deals ] who will answer this question.
Thank you. As on date, our coal stock is 3.7 million tonnes. It has come down from a high of 6.9 million tonne. And coal available is mainly in our [indiscernible] as of now and [ real hedge difference ] are hand to mouth as far as coal availability is concerned. So we are trying to build up stock first in our [ rail hedge business ]. And in last few days, we have been receiving more coal than [indiscernible]. We have been receiving in excess of 5.5 [ lakh tonne ] every day. That's the scenario as of now.
So just wanted to understand, is the issue an issue of coal production? Or is the issue more on the freight and the railway side? Because when we look at Coal India's production numbers, the production seems to be high, but the offtake is not really picking up. So I'm a little confused as to what is the missing link.
As of now, production is a predominant factor. It is picking up after the slump in the monsoon. It was hovering around 1.4 million tonne on daily basis, which has touched 1.65 million tonnes in last few weeks. So Coal India is ramping up the production, and they have plans to go to, first, 1.8 million tonnes and 2 million tonne on daily basis. The production is picking up. And as far as transport side is concerned, that constraint today is not observable, but it may arise in future when Coal India produces 2 million tonne on daily basis.
So essentially, what you're saying is that the railway or the freight-related transportation is not really constrained. It seems to be more of a constraint from the coal production side. Am I right in understanding that?
So far, that has not -- that is not coming as a constraint to consumers for transportation to railcar systems.
Okay. Understood. Lastly, just wanted -- this is more based on when you're able to give me the adjusted profit number, but this doesn't -- observation based on the reported number, there seems to be a very flattish kind of profit number, and my understanding...
I'm giving you the adjusted profit also.
Yes.
The reported profit for H1 is 5,014.16 current year. And previous, it was 5,056.77. So minus 0.84%.
Right. And for Q2, if you can give me the exact number, sir, that will be very helpful.
Q2 exact numbers, to current year, it is 2,004 -- INR 2,426.02 crores. And previous Q2 was 2,438.60, minus 0.52%.
So even then, the adjusted profit is very flattish, am I -- isn't it?
There are the actual figures. These are the reported profit -- the actual -- the adjusted profit I'm giving now.
Okay, okay. Adjusted profit for H1 is 5,014.89, for the current H1 FY '19..
Okay. And what was it last year?
Last year, it was 5,112.59. So negative 1.19%.
So why would be the reason for a negative growth despite the fact that you've seen more than 15% kind of growth in the regulated equity? Why is it that we are seeing a fall in profits? And what are the implied 2Q numbers then?
So we'd give you the reasons for that. One is the interest cost has increased because of working capital loans which we have taken. And then there is the -- this incentive of INR 821 crores in the current H1 as compared to previous H1 INR 490s crores or odd. I will give you the exact figures.
So this is loss of fixed cost due to lower PS? Am I right in understanding that?
Yes, you are.
So this is INR 821 crore in the current quarter or for the first half?
In H1.
In 1H. And what was the same figure for last year?
INR 493.49 crores, so negative INR 328.38 crores.
So actually, the recovery of this incentive has gone up Y-o-Y, but I was of the understanding that barring Unchahar and the other plants station PS will probably be better on Y-o-Y. Where is the mismatch?
You must also appreciate that Unchahar was available in the previous H1 on full basis. Previous H1, there was no -- this incentive activity on Unchahar. This year, Unchahar because of that action, this incentive is there, and that has added to -- I'll give you the figures, INR 261 crores.
I see. So out of this INR 821 crores, INR 261 crores is only Unchahar?
It's on account of Unchahar only because that has not come onstream. So in the next quarter, that will be coming back onstream so that we should be able to recover the part of it.
Understood. But even if I adjust for this INR 261 crores out of that INR 821 crores odd number, that is still a pretty large component of this incentive that is there. So these would be with regard to which plants?
These would be -- with regard to some plants where machine was not available because we had planned shutdown in those stations.
So would this be because of coal or because of maintenance?
Because of machinery planned outages.
These are planned outages.
Yes.
So again, if I go back to your commentary in the first quarter, what you had mentioned was we were looking at a higher amount of under-recovery in first quarter because a lot of plants -- the shut -- the planned maintenance had been preponed to the first quarter. Now again, we are looking at a similar amount of this incentive coming in the second quarter. I'm unable to understand that because every year, I think, normally around 2Q, we tend to go under planned maintenance. So wouldn't the under-recovery number than largely should be a stagnant number? And I believe 2Q should have seen lower under-recoveries because we'd already taken shutdowns in first quarter.
It is lower by INR 160 crores if you compare Q2 with Q2. We are comparing H1 with H1 right now.
Okay. So I think it will be very helpful for us if you can give us the Q2 figures because then it becomes a little easier for us to compare it apple to apple.
Okay. We'll give that figure also.
Actually, if I may, this under-recovery has trend set INR 934 crores, which was by end of September, it was total INR 800.
INR 821.
INR 821.
Okay. And for only 2Q, sir, what would that number be?
For Q2, please wait a second. Q2, this incentive is INR 140 crores -- variance is INR 140 crores.
Variance between last year and this year's figures is INR 140 crores. So it's minus INR 140 crores, rather than lower by INR 140 crores vis-à-vis last year?
No, higher.
It's higher by INR 140 crores vis-à-vis last year. And what was the number last year then? If you can help me with that, then I can get to the overall number.
It was INR 190 crores last year and INR 330 crores in the current year.
Okay. So 2Q '19 is INR 330 crores?
In this also, you have to factor that Unchahar was not there in the previous Q2. This year, the Unchahar factor is there.
Right. So out of this INR 330 crores, Unchahar would be roughly how much? INR 261 crores? That's what you mentioned?
INR 130 crores, [ higher ] INR 261 crores H1 and INR 134 crores one quarter [indiscernible]
INR 134 crores this quarter. Understood. So yes, I mean -- basically, again coming back to the question that I asked that if the maintenance planned shutdowns had been preponed to the first quarter, why are we looking at these kind of under-recoveries again coming back in the second quarter? And which is leading to effectively a very flattish number on a Y-o-Y basis. Because last year also, in second quarter, you would have taken planned shutdowns.
There are 2 components. One is related to availability of coal and it was thought to be INR 375 crores. And due to planned outage and some problems in [indiscernible] INR 557 crores. I am packing out the figures as [indiscernible], so it is related to H1 plus 1 more month. That is the month of October. So it is how many [indiscernible] about planned outage and the fuel shortage.
I think you should not get [indiscernible] discussion. Let others also ask a question. You can take the details from Aditya there. You'll be getting all these details separately.
[Operator Instructions] The next question is from the line of Abhishek Puri from Deutsche Bank.
Sir, this kind of INR 100 crores, INR 120 crore under-recovery has been continuing for you and will probably end up with again INR 1,400-odd crores -- INR 1,300 crores, INR 1,400 crores of under-recovery towards the end of the year at this run rate. I think at the beginning of the year, you mentioned at the Analyst Meet, you also mentioned that this will be near 0 towards end of the year. So what are the steps that we are taking to cut this down?
We have worked out a plant-specific plan where at the end of the financial year, it will be restricted to maximum of INR 600 crores.
INR 600 crores for -- due to coal or due to outages?
It will be combination of both.
Okay. INR 600 crores is total, you're saying?
Whatever the value we are with today, at the end of financial year, as for what plan we have [indiscernible], it will be restricted to INR 600 crores. It is not going to any figure like INR 1,400 crores or somewhere there.
So you are at INR 934 crores today, and you're saying by end of the year, it will be INR 600 crores? So what are the steps that we have taken in terms of reducing this, sir? Because till now also, as the previous participant also mentioned, your coal at various plant levels is showing a 0 inventory, 0 days of inventory at this point in time. So how would this convert? What are the steps that the management has taken?
Yes, in many of the plants, the fuel cost under-recovery -- fixed cost under-recovery is attributable to fuel availability. And we have taken measures to improve it. Recently, Coal India has offered us 5 million tonnes of coal in addition to fuel supply agreement. So this is going to materialize very soon. And the process of importing coal is also on. And also, we expect that when our -- also our machine availability will be better. And this will result in overall curtailment of fixed cost under-recovery to under INR 600 crores.
[indiscernible] has not mentioned is that Unchahar will be back on stream for that. This incentive will disappear in Q3 and Q4. It should disappear.
The plant has not yet started in Unchahar. And what happens to Badarpur, the plant they shut from '15? So we will absorb the entire cost and that under-recovery will remain? Or how does that work?
For Badarpur plant, actually, we are going to -- we have 2 strategies. Number one, what are the plants? We'll -- we are going to actually do the auctioning for this power plant machinery and all that. So we are expected -- an equal amount what is my book value. So to that extent, it's going to offset.
And Unchahar, when is it starting? Earlier date was October, right?
So earlier date was given as November. We had said that we will try to bring it in October. And I think we are on -- actually, Unchahar, we'll bring by December 15, around December 15.
Okay. And imported coal, I mean, just specifically on that point, when is it coming, 2.5 -- 5 million tonnes tender is out, but what is the status for that?
That is under evaluation.
And that is the earliest you can get the coal from there?
Commercial build is under relation. It will depend on placement of order. And they will take another 2 months to supply the full [ order ]
Understood. My second question is on the capacity commissioning. We've already done 800 megawatt as of now as against the full year target of, I think, 3,800 megawatt. What is the status of the plants? And do you think that they are -- they can actually be commissioned when there are transportation linkage issues in many of them?
Mr. Roy is answering this question…
We have that capacity addition plan around 4,000 megawatts. That is COD. We are now at our -- talking per COD, commercial operation. And 1,800 megawatt could be -- already being done commercial operation and balanced plant in this financial year, that COD. That means capacity addition will be done in time.
[Operator Instructions] We'll move to our next question, which is from the line of Sumit Kishore from JPMorgan.
My first question is again related to this INR 600 crore of plant-specific plan target that you have. Could you give us a breakup of how much is related to coal-related under-recoveries and how much is related to machine availability? Because if I understand, Unchahar itself will account for almost INR 350 crores of under-recovery if it comes by middle of December 2018.
Related to GAIL, some of the stations will have this problem of under-recovery. It is -- our estimate is Mouda will be around INR 140 crores.
What is the year-to-date figure as well, if you can keep mentioning?
Figures is [indiscernible]
We have 2 [indiscernible.]
[indiscernible] is around INR 240 crores. It's likely to come down to INR 140 crores.
All right. INR 167 crores currently on coal issues.
Okay. Other plants?
And then some other plants, though at the moment, they're showing under-recovery. Like Solapur is showing under-recovery of -- it's INR 10.41 crores. We are likely to end up here at this same figure. Kudgi is showing some under-recovery, which is likely to be restricted to INR 25 crores.
Sorry, which plant?
Kudgi in Karnataka. Then, Simhadri is -- shows under-recovery of total -- INR 78 crores, -- which is likely to be reduced to INR 20 crores from INR 78 crores now.
But we have made a plan where wherever under-recovery appears, they will vanish with the cleaner part of better availability and better fuel availability. So that is where we intend to restrict it to below INR 600 crores this financial. A major chunk will be, of course, coming from Unchahar plant, which is -- which will remain there.
Okay. So if I understand this, close to about INR 185 crores of fuel-related under-recovery is coming from Mouda, Kudgi and Simhadri and almost INR 350 crores, INR 360 crores is from Unchahar. So all the balance, machine-related and availability-related under-recovery will be recouped by the end of the financial year?
Yes, that is what we expect.
We would move to the next question, which is from the line of Venkatesh Balasubramaniam from Citibank.
Sir, my first question is specific again to the coal-related under-recovery. Now last year, we had almost like INR 800 crores plus of under-recovery. So this coal-related problem should have been very apparent to the management last year itself. So why didn't the company last year itself take the step of thinking about importing coal? Why did this division have to wait till this year? And even now, when you're importing coal, why is the tender so tiny? Why are you importing only 2.5 million tonnes? Why is not there a target that "let's go and import 10 million tonnes in 1 block," with the intention that we should have 83% availability in all our power plants? So why is this being done in smaller blocks? Is the government preventing you from importing more coal? Because again, the government does want to prove that how India was coal surplus around 1, 1.5 years back. So what is preventing you from importing more coal?
Board has approved the import of coal to the tune of 5 million tonne and in tranches of 2.5 million tonne, 2 tranches. So for all the tranches, bids have been opened, and it's in the process of evaluation. Let's see how it all shapes up. [indiscernible] availability, et cetera, has to be established.
Sir, because are we also thinking about the slightly longer-term plan here? Because the last 2 years, it is very, very clear that NTPC cannot be really depend on Coal India. Their production is very unpredictable. Sometimes, they will deliver enough and more coal. Sometimes, they will not deliver enough coal. And NTPC invariably gets into trouble because of this -- with their coal availability issue. Secondly, again, Indian Railways, again, is not very dependable. Because sometimes you are -- you also said that it is in the southern state, so it will be transported and goes about 2 million tonnes or so. Maybe the transportation issues will start again. So is there a longer-term structural plan being developed that, irrespective of what happens to coal production in the country, NTPC does need to have a longer-term plan of import -- continuous import of coal so that you can get to that 83% coal availability on a sustainable basis? That is my first question.
Yes, we have a plan. We have a plan. We utilize coal in a flexible manner from any source to any plant of requirement. And this is a very flexible plan and reviewed on daily basis and due care -- due measures are taken, so that none of our stations are short of supplies. I would like to believe that with Coal India achieving 2 million tonnes of production on daily basis and railway inducting almost 1,000 wagons every month in coming months, if -- this is really improved. And we have a understanding with the railways, as you might be knowing, we have awarded -- we have given them some advances. In lieu of that, they give us a preferential treatment. So railways will always be forthcoming in assisting us in meeting our requirement.
Yes, I just want to add something [indiscernible]. I just want to add something on this. So when we talked about our long-term plan, we have 2, 3 studies. Number one, we as [indiscernible] that we are continuously striving to increase full delivery as well as railway connectivity. And we have been talking to railways who have more and more rail coming in. Second strategy is that we have taken up with CRC as a part of the new regulation. And also for the last year, that since we don't have the realistic [indiscernible] 83%, we don't have the fuel linkages, and the coal delivery is not being done at that level, which is beyond the control of NTPC. We have requested CRC that for nonfood [indiscernible] stations, the availability value numbers should come down from 83% to the level of 68%, 70%. And I think it's a very strong case for us to really pursue with CRC. And we will only put up our request to them, and let's see how CRC reacts on that in terms of new regulation. And partly, we are also increasing our own mine coal production. If you look at last year number, it was 2.68 million tonnes. This year, we're going to do 7 million tonnes. So there would be a marked increase in next year level of first 10 million tonnes. So there will be 3 strategic changes we wanted to share with you. One is to increase coal production and railway connectivity. Second is to increase our own mine production. And third is to take it up with the regulator that they should be realistic. So I think these are the 3 strategies we are working on.
Okay. Sir, I had a second question, which was relative to the GCV issue. It has been a very long time now since the CEA gave an advisory that there is a loss of GCV in that as-received kind of firing. So it has been out for a long time, but it doesn't seem like CRC has any inclination, is not in a hurry to give you compensation for that loss of that GCV. It was it seems -- almost seems like they are trying to postpone this to the next tariff regime, so that whatever they give you here, they will take it away some other way. Because that is a feeling which we are getting. Because what is the -- they don't understand what is the reason why they are not giving you something which is very much due to you. Because you have lost money on account of this over the last few years since the time you started accounting it on an as-received basis in your numbers.
Okay. Let me respond to you on this. You see, as you rightly said, the CEA has given its recommendation. And there's a process CRC follows. And in fact, CRC has really admitted the petition for maintainability. And they are given the order that it is maintainable against [indiscernible] beneficiary has gone to APTEL and APTEL also has -- APTEL has also did not steer that order and allowed CRC to [ go over the hearing ]. So it's a process being followed by CRC. I think they need to hear both generators as well as beneficiary. And I'm very sure, I have full faith in the regulatory system of the country. And probably, I think, they will go for it, right kind of balancing this.
We seem to have lost his line, so we'll move to our next question, which is from the line Apoorva Bahadur from ICICI Securities.
Sir, this is Rahul [ this side ]. Sir, a couple of quick questions. So firstly, can you just help us with the reason for the increase in the receivables that we are seeing in the mix?
Yes, actually -- this is, in fact, if you -- I'll just give you the -- kind of some numbers. Against INR 45,000 crores of billing this year, we have been able to collect so far INR 39,500 crores. And actually, this -- if you look at even the last year's figure, if you take out that income tax refund, which was really give us our benefits, it is -- the trend is similar. So actually, it happens in the last half of the year where you get more and more recoveries done. So there are few steps where there are problems. One being under Andhra Pradesh; second being J&K; third being UP. In fact, for Andhra Pradesh, recall we were actually having a lot of outstanding dues with regards to our plants as well as for [indiscernible]. We had given a regulation notice to AP. And let me share with you that within a week's time or before this regulation due to expire, we got INR 1,850 crores. And with that, the AP is now in a much better situation than it was earlier. With J&K, we have personally visited there. And there is assurance from them by [indiscernible] they will be like to clear on this. I think we have now resulting to both strategy of talking to them more and more, trying to really persuade more vigorously. At the same time, we have also decided that we will ensure regulation notices for these defaulting agencies. And in fact, the matter was also discussed at Ministry of Parliament. They have also issued direction to us and also returned to all the principal secretaries for clearing out these [indiscernible] dues. And I think this situation will improve in the coming months, hopefully.
Sure. Sir, one more question. Sir, it's been quite a while that Mouda has been commissioned, and they are not able to even maintain an 85%. So I believe coal would not be the only problem because the plants around that area are still getting coal. So what is the typical problem that we are facing there? And what kind of solutions are we looking?
In Mouda, as regards to availability of coal, Coal India has allowed us to lift coal from their [indiscernible] mine, which is far distance away from Mouda. And in fact, we have sales supply agreement for Mouda both from WCL and MCL. And with this new development, I hope coal availability will improve for Mouda. This is a new development. It's a -- Coal India has come forward to help us in this regard.
Sure. And sir, just lastly, have you paid any more advances to railway INR 4,000 crores to INR 5,000 crores [ last time ]?
Yes, recently, we have paid INR 2,000 crores to them to extend that agreement. And the benefit to us is that, we have locked in that previous rate. You would have read it yesterday that railways have increased the freight on coal. So the benefit to NTPC is that we are still governed by the old freight rates.
Okay, fair enough. Sir, lastly, what is the PLF incentive this quarter and H1?
We'll give you those figures in a while.
The next question is from the line of Inderjeet Bhatia from Macquarie.
One question from my end. Can you put some number as to how much stressed assets you're looking at either in megawatt terms or in rupee terms? And second, there seems to be change of strategy that earlier we used to only talk about taking projects with complete PPAs done. Now we are looking to take assets which do not have full PPAs. So why is this change in thought process and what we think is the likely step for us? How do we do the tie-ups? If the tie-ups are not available, then how do we deal with this kind of plans?
Okay. So one thing which our company has decided that when we look at the stress effect, we look at only in MCLD. This is primarily for now [indiscernible]. And we have also requested Ministry of Power and other ministries that it has to be faster in process MCLD, so that we will be able to have fair assessment of whatever bids we're able to put. I would not like to put any kind of cap on what we can acquire. And there is no point in putting a tag and then trying to really see that. But we are ready to look at all financially viable projects where we are sure of selling power in the market, either to a long-term PPA or a short-term PPA or even through market. So this would all -- we are going to pick up those projects which are fundamentally closer to the mines where the [indiscernible] charge will be lower. So that it will be possible to really sell this [ electricity ]. So the investments where we have -- we do for the greenfield project, certainly, we can't move without PPAs. But I think we are expecting a very low -- lower cost of acquisitions for these projects, which [indiscernible] the process. And then we'll try to see that whether we can sell this power. And these are the [indiscernible] based on that.
We'll move to our next question, which is from the line of Mohit Kumar from IDFC Securities.
Sir, one bookkeeping question. Why there's a sharp increase in other expenses during the quarter?
Sharp increase in expenses? Which expenses?
No, sir. Other expenses, sir. Other expenses has gone up from [ INR 1,550 crores to INR 1,900 crores -- if you look at Y-o-Y, the number is -- number for last Q2 FY '18 was INR 1,597 crores, which has gone up to INR 2,000 crores approximately.
Other expense.
I'm hearing -- it is because of the exchange rate fluctuation. And that doesn't hit the bottom line because it's a -- we treat it as regulatory asset also for that. So it will be appearing as well but it is also common in the year.
Yes, below the line.
And somebody had asked about -- the previous speaker had asked us about incentive. The incentive figure is INR 162 crores in the current H1, and it was the same in the previous H1 also. So there is no change.
The second question, sir, can you just update on the status of the [indiscernible] order once again, how much you ordered, how much is in pipeline?
Our Director [indiscernible] is giving you the details. Just wait for a moment.
And we have, I think, the [indiscernible] detailed plan. Until now, we have commissioned 500 megawatts in [indiscernible] -- and that [indiscernible] 31 gigawatts is under construction. And another 3 gigawatts, it is ready for [indiscernible]. And by December, we'll complete around 30 gigawatts, awarding the remaining one. So that overall 60 gigawatts, it will be ordered by December. And we'll meet all the deadlines like acceptance year [indiscernible] 21st December. And [indiscernible] they will be meeting 19 December.
Sir, last question, so what is status of [indiscernible] Rajasthan power plant?
Which power plant?
Rajasthan's Chhabra power plant, sir?
Yes, Rajasthan Chhabra power plant actually are -- we have again the extended viral [indiscernible]. And I think we have still not lost all the hopes on Chhabra. And hopefully, that once -- I think that this one will be taken with a -- with after elections and only will -- I would not like to say more than this at this moment.
Ladies and gentlemen, due to time constraints, that was the last question. I now hand the conference over to Mr. Sanjay Jain for closing comments.
Sir, I had one last question on -- you said that interest costs had gone up. Could you quantify what was it because of the increase in working capital and advances to railways, I mean, which was not passed through in the revenue?
INR 168 crores, INR 167 crores approx.
Okay, sir. Sir, thank you. That was my question. Thank you so much for this call. And would you have any closing comments?
And this -- regarding this interest cost, we -- because the freight has increased and consumers will not be getting benefit of the old rates, we may be going to CRC to see to it that this interest cost is not passed on to benefit [ you ] because they are keeping the benefit of lower freight, so they should be [indiscernible]. That's what we will go to CRC to fix.
Great, sir. Thank you so much.
Thank you. On behalf of Motilal Oswal Securities, that concludes this conference. Thank you for joining us, and you may now disconnect your lines.