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NTPC Ltd
Earnings Call Analysis
Q2-2025 Analysis
NTPC Ltd
NTPC continues to exhibit robust growth, with a profit after tax (PAT) of INR 10,886 crores for the first half of FY '25, a significant improvement from INR 9,634 crores in the same period last year, representing a 13% increase. The group's total income grew by 6.09%, reaching INR 94,179 crores compared to INR 88,775 crores in H1 FY '24. This consistent performance underlines NTPC's strong operational foundations and strategic direction.
In Q2 FY '25, NTPC reported total income of INR 41,245 crores, slightly down from INR 41,518 crores year-on-year. This decline was largely attributed to a decrease in the average coal price, which dropped by 5.46% to INR 3,584 per ton, leading to an overall revenue dip of 6.66%. Despite this, NTPC managed to increase its PAT by 19.66% to INR 4,649 crores, reflecting effective cost management and operational efficiencies.
The company achieved a record coal production of 19.23 million metric tons in H1 FY '25, marking a growth of over 19.74% from 16.06 million metric tons the previous year. Furthermore, the Plant Load Factor (PLF) of NTPC's coal stations was 76.31%, notably higher than the national average of 70.63%. This performance illustrates NTPC's efficiency in coal production relative to its operational capacity.
NTPC's commitment to renewable energy is evident, with the group adding 485 megawatts (MW) of renewable capacity in H1 FY '25. The company is on track to enhance its renewable capacity significantly, planning an addition of 3 gigawatts in FY '25, followed by 5 gigawatts in FY '26, ultimately targeting 60 gigawatts by FY '32. This expansion aligns with India's Net Zero targets and NTPC’s focus on sustainable energy solutions.
In addition to expanding its renewable capacity, NTPC plans to award contracts for 13.6 gigawatts of thermal power by FY '26-'27. This development is in response to India’s projected need for an additional 80 gigawatts of thermal capacity. Of the 13.6 gigawatts, 8.8 gigawatts are in the bidding phase and are expected to be awarded by December.
The company's financial health remains strong with a consolidated regulated equity of INR 105,049 crores, growing 5.5% from INR 99,611 crores a year earlier. NTPC has projected a capital expenditure (CapEx) of INR 22,700 crores for FY '25, enhancing its capacity and operational capabilities. Looking ahead, NTPC anticipates an increase in coal production capacity, projecting growth from 40 million metric tons in FY '25 to approximately 67 million metric tons by FY '29.
NTPC is also diversifying its operations with plans to establish nuclear power capabilities through joint ventures and projects like the Mahi Banswara nuclear power project, anticipated to commence operations in FY '31-'32. Moreover, NTPC is actively exploring opportunities in green hydrogen production, complementing its renewable energy ambitions.
Overall, NTPC's strategic orientation towards expanding its renewable portfolio, enhancing operational efficiency, and venturing into nuclear energy aligns well with India’s broader energy transition goals. With solid financial metrics and a clear path toward sustainable growth, NTPC remains a compelling player in the energy sector for current and prospective investors.
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Ladies and gentlemen, good day, and welcome to NTPC Limited Q2 FY '25 Earnings Conference Call, hosted by JM Financials.
[Operator Instructions] Please note that this conference is being recorded.
I now hand the conference over to Mr. Sudhanshu Bansal from JM Financial. Thank you, and over to you, sir.
Thank you, Sidhart. Hello, everyone. On behalf of JM Financial, I welcome you all to the conference call of NTPC to discuss the Q2 FY '25 results. We have with us the leadership team of NTPC comprising of Shri Jaikumar Srinivasan, Director of Finance; Shri Shivam Srivastava, Director of Fuel; Shri Shanmugha Sundaram, Director of Projects, Shri Ravindra Kumar, Director of Operations; Shri Anil Kumar Jadli; Director HR. Thank you so much, sir, for your kind presence in giving JM Financial the opportunity to host the call.
Friends, before we start the call, I would just like to share 1 good thing, like amongst the various awards won by the NTPC Limited, it gives me the immense pleasure to inform you that Sri Jaikumar Srinivasanji, Director of Finance, NTPC has been bestowed with the prestigious leader -- leading CFO of the Year Award by CII in a ceremony held on 19th September at Bengaluru. The award is an acknowledgment of his contribution towards corporate transparency, governance, and financial leadership. Many congratulations to, sir.
And with this, I will request Shri Srinivasanji for the opening announcement taking the call forward. Over to you, sir.
Thank you so much. Am I audible?
Yes, sir, you are audible.
Okay. A very good afternoon to all the participants. I Jaikumar Srinivasan, Director of Finance, welcome all of you to the Q2 FY '25 conference call of NTPC Limited. I have with me Shri Shivam Srivastava, Director of Fuel; Shri K. Shanmugha Sundaram, Director of Projects; Shri Ravindra Kumar, Director Operations; and Shri Anil Kumar Jadli, Director of Human Resources. I also have with me other key members of the NTPC team.
Yesterday evening, the company has announced unaudited financial results for Q2 FY '25 along with half yearly results for FY '25. The key performance highlights for the quarter and half year ended 30th September 2024 have already been disclosed on both the stock exchanges. NTPC has completed yet another outstanding quarter showcasing the robust operational and financial performance. We have made substantial progress on various key strategic initiatives, particularly the renewable energy.
I'll share with you a few operational highlights for Q2 and H1 FY '25. During H1 FY of NTPC Group has added 485-megawatt commercial RE capacity to its portfolio. As on 30th September 2024, the commercial capacity of NTPC stands at 59,168 megawatts on a stand-alone basis and 76,443 megawatts for the group as a whole.
NTPC Group generated 220 billion units in H1 FY '24 (sic) [ H1 FY '25 ] as compared to 212 billion units in H1 '24, registering a growth of 3.77%. NTPC stand-alone gross generation in H1 FY '25 was 186 billion units as compared to 179 billion units in the corresponding previous year with a raise of 3.91%. During H1 FY '25, PLF of coal stations of NTPC was 76.31% as against the national average of 70.63%. Lara station of NTPC with a PLF of 91.63% is the 5th ranked station. And Singrauli station with the PL of 88.83%, is the 13th ranked station in All India PLF Ranking during April-September 2024.
During H1 FY '25, materialization of coal against the annual contracted quantity was 97% as against 95.8% in the corresponding previous period. Coal supply during H1 FY '25 was 119.41 million metric tons, including 2.02 million metric ton of imported coal. The coal supply during the corresponding previous year was 113.47 MMT, including 3.73 MMT of imported coal.
NTPC has registered highest ever coal production of 19.23 million metric ton in H1 FY '25 with a growth of over 19.74% as against 16.06 MMT in H1 FY '24. Cumulative expenditure of INR 11,585 crores have been incurred on the development of coal mines since 30th September 2024.
Now I turn to some of the financial figures. For NTPC on a stand-alone basis, total income for Q2 FY '25 is INR 41,245 crores as against INR 41,518 crores in the corresponding quarter of previous year. The revenue -- lesser revenue is on account of lesser average price of the coal. The average price of coal was INR 3,791 per ton in the last year. Now it is INR 3,584, thereby a reduction of INR 207 per ton with a reduction of 5.46%. Compared to this, the revenue reduction is only 6.66%.
NTPC's profit after tax for Q2 FY '25 is INR 4,649 crores as against INR 3,885 crores in the corresponding quarter of previous year, registering an increase of 19.66%. On a half yearly basis, the PAT is INR 9,160 crores as against INR 7,951 crores in H1 FY '24, registering an increase of 15.2%.
Total income of the group for H1 FY '25 is INR 94,179 crores as against INR 88,775 crores in the corresponding previous period, which signals an increase of 6.09% over previous year. PAT of the group for H1 FY '25 is INR 10,886 crores as against the corresponding previous period PAT of INR 9,634 crores, registering an increase of by 13%.
During H1 FY '25, our subsidiaries earned profit of INR 1,362 crores as compared to INR 1,117 crores in the corresponding period of previous year, registering an increase of 21.91%. NTPC share of profit in JV has also increased from INR 1,082 crores in H1 FY '24 to INR 1,124 crores in H1 FY '25, which is a 3.88% increase over previous year.
During H1 FY '25, we have accounted for a dividend income of INR 762 crores from our subsidiaries and joint ventures as against INR 541 crores during H1 of FY '24. Stand-alone regulatory equity for Power and Mining business as on 30th September 2024 was INR 89,430 crores, which was INR 83,059 crores previous year, registering a growth of 7.67%.
On a consolidated basis, the consolidated regulated equity as on 30th September 2024 was INR 105,049 crores, which is in 9 -- 5.5% over last year's figure of INR 99,611 crores. The Board has declared the first interim dividend of INR 2.50 per share for the financial year '24-'25. Regarding fund mobilization, NTPC signed a term loan agreement of INR 5,000 crores with HDFC Bank on 31st of May 2024. The overall average interest rate on borrowings during H1 FY '25 was 6.63% as compared to 6.67% in H1 FY '24.
In H1 FY '25, we have incurred a group CapEx of INR 17,474 crores as compared to INR 13,204 crores in the corresponding previous period. While on a stand-alone basis, NTPC has incurred a CapEx of INR 14,040 crores as compared to INR 7,959 crores in the corresponding previous period. The capital outlay of NTPC on stand-alone basis has been estimated at INR 22,700 crores for the financial year '25.
Further, I would like to list a few other highlights. As India aspires to achieve its Net Zero target by 2070. NTPC is also poised to contribute significantly to the energy transition to an optimum combination of renewable energy, energy storage technologies and clean base load generation technologies like nuclear power. NTPC plans to execute this nuclear business for the following parallel streams. Anushakti Vidhyut Nigam Limited, ASHVINI, a joint venture company of NTPC and Nuclear Power Company Limited -- Corporation Limited has been established for commissioning pressurized heavy water reactor nuclear projects.
The Government of India has recently accorded its approval for the transfer of Mahi Banswara nuclear power project 4 x 700-megawatt to ASHVINI, a wholly owned subsidiary of NTPC, which will implement small modular reactors, SMRs and fast breeder reactors, FPRs and pressurized water reactors. NTPC Group has a strong commitment towards renewable energy. We have already commissioned 4,013 megawatts of RE projects -- as you are already aware that we have filed the Draft Red Herring Prospectus for the IPO of NTPC Green Energy Limited on 18th September 2024, and the process is proceeding as plan.
During the Rising Rajasthan Investor meet at New Delhi, NTPC Green Energy Limited, a wholly owned subsidiary of NTPC signed a memorandum of understanding with the government of Rajasthan. Subsequently on 17th September 2024, a joint venture agreement with Rajya Vidyut Utpadan Nigam Limited, RVUNL, was signed for development of 25 gigawatt of renewable energy projects and 1 million metric ton per annum of green hydrogen derivatives in state of Rajasthan.
NTPC Green Energy Limited has entered into a joint venture agreement with the Mahatma Phule Renewable Energy & Infrastructure Technology Limited, acronym MAHAPREIT, on 25th September 2024. The JV company will undertake development of 10 gigawatt of renewable energy parks and projects in Maharashtra or any other state of India as part of our overall energy security plans. Investment approval has been accorded for Sipat Super Thermal Power Project, Stage 3, 1 into 800-megawatt and Darlipali Super Thermal Power Project Stage 2, 1 into 800-megawatt. EPC contracts for both the projects have been placed.
We are actively considering awarding thermal capacity to the tune of 13.6 gigawatts by the financial year '26-'27. This is in addition to 11.16 gigawatt thermal capacity already under construction. Furthermore, to have greater fuel security, we are enhancing our coal mining capacity as well. It is planned to enhance estimated NTPC Group coal production from 40 million metric ton in '25 to about 67 million metric tons up to financial year '29.
Going higher on generation, lowering greenhouse gases intensity remains our moto for environmental management and drives our efforts to comply with new environmental norms. We have taken significant step to control SOx and NOx emission. Over the next 3 years, we plan to commission FGD systems for our entire operational and under construction capacity, ensuring substantial reduction in soft submission. We have commissioned 14,600 megawatt and work in FGD package for the cumulative capacity of 49 gigawatt is under progress.
In the areas of ash management, 9 of our stations achieved 100% ash utilization during H1 FY '25 and approximately 245 lakh metric tons of ash has been supplied to various road projects during H1 FY '25 as against 215 lakh metric ton in H1 FY '24. Our wholly owned subsidiary, NVVN signed a PPA on third October 2024 with Nepal Electricity Authority for the sale of 230-megawatt of power. A trilateral agreement was also signed between NVVN, NEA and BPDP for the supply of 40-megawatt of power from Nepal to Bangladesh. As part of its ongoing sustainable measures to reduce greenhouse gases NTPC stations received 2.62 lakh metric ton of biomass in the first half of financial year '25, a remarkable increase compared to 0.31 lakh metric tons during the same period last year.
NTPC has been confirmed with the Asia's Best Employer Brand Award 2024 at the Asia's Best Employer Brand Awards held on 6th August 2024 at Singapore. Asia's Best Employer Brand Award 2024 features the top organization from Asia region having exemplary people practices. NTPC was included in the TIME World's Best Companies 2024 list announced in September 2021. This award was presented by TIME and Statista, the world-leading statistical portal and industry ranking provider. The listing was done considering employee satisfaction surveys, revenue growth, environmental and social corporate governance data. NTPC won 3 awards at the prestigious Economic Times, Future skills Awards 2024.
NTPC received the Generation Company of the Year award in Thermal Category, as the POWERGEN India held in on 4th September 2024 in New Delhi. The Pakri Barwadih coal mining project was honored with 3rd Price Large Opencast Coal Mining category at the 1st Pan-India level Mine Safety Award, MSA-2024.
Now these were some of the key highlights I wanted to share with all the participants before we begin the question-and-answer session. Thank you. Over to you -- over to JM Financial.
[Operator Instructions] Our first question is from the line of Mohit Kumar from ICICI Securities.
Congratulations on a very good quarter and on the prestigious award. My question is, as the -- first question is on, the one thing I observed is that you're not participating in the RE bid, a very, very selective business. How do you think about participating in RE...
Your voice is not clear, please.
Okay. I'll make it a bit louder. So one thing I is that you're not participating in the RE bids or the participation is very, very limited. So what is hindering us? And how do you think about the strategy of participating in the upcoming bids?
No. Our participation is selective in a sense that we are participating in pure-play solar and wind also. But when it comes to some structured bits like RTC and your FDRE, there, we are evaluating the mix and what is the stipulation, what is the guaranteed parameters. And based on the risk profile in each of this and the returns expectation, we are selective in that approach. However, it is not that we are staying away from this thing. We are being only selective because we have to look at the returns profile also, the risk also. So we go about it very judiciously on that. Not for -- not solely for the purpose of adding capacity but we are trying to calibrate the different aspects of the project and then taking a call on that.
So is it fair to say that you're not facing any constraints on transmission connectivity or land acquisition? Is it right to say, sir, on the RE capacity?
Sorry, sir. Please repeat.
It's fair to say that you are not facing any constraints on transmission connectivity or land acquisition?
No, we are not because we are following a strategy -- a dual strategy of creating land banks to a separate tenders. We are also -- as I was mentioning to you that we are tying up in a big way with the state governments. Rajasthan and Maharashtra, which I mentioned, where essentially the partnering is because the state government has a better control over land. So this would ensure that the JV partner brings the land on the table. We bring our operational expertise in finance. So by this methodology, we are ensuring the land.
As far as transmission connectivity is also concerned, we are not facing any major challenges here, and we have a early-mover advantage also. And the other issue is that because of taking up large-sized projects up to 1.5 to 2-megawatt -- gigawatt -- 1.5 to 2 gigawatt then there is a mandate that naturally, the transmission evacuation has to be made arranged over there. So we are scaling up the size at the individual location in order to ensure that transmission doesn't become a constraint.
Understood, sir. My second question is on the under recovery, sir. Can you give us the under recovery in H1 versus last year? And are you seeing an improvement in FY '25 compared to earlier years because of new CRP regulations? How is the experience?
See, as far as -- you're talking about disincentive or under recovery?
Under recovery.
If you are talking about the disincentives, compared to the last year was -- Q2 was 381 was of disincentive or under recovery. Compared to this, it is 495 in the current quarter 2. But however, let me share with you that this has a bearing on what is the level of planned outages we take every year and the composition of what is the capacity charges of individual power plant. But going ahead, so the plan -- overall planned outages last year was 5.19%, whereas it is on a higher percent, it is 6.12%, almost 1% higher plant outages was there.
So accordingly, this, if you translate it to a new terms, last year, 11,711 MUs were there, it is now 14,483 MUs. So on an average megawatt basis, as against 2,730, it is 3,295 average megawatts. A number of units -- 4 more number of units were taken into the planned outages. However, going ahead, we are confident that in the busy season, this would be eased out and we will be able to substantially mitigate this by the end of the year.
Our next question is from the line of Gaurav from Axis Mutual Funds.
I just wanted to ask you about the recent media articles that highlighted that government might consider stopping issuance of new FGD tenders. Any thoughts around that? I mean, how will it impact any --will it impact any existing orders that you've given out? And how do you see this going forward?
I'll ask our Director of Projects, Mr. Sundaram to reply to this. Over to Mr. Sundaram.
What you heard is based on I said there is no order. This order has to come from MOP and MOU with the pending case in Supreme Court. And even if you see that report, what has been mentioned is, wherever [ NCPs ] are commissioned, say, for NTPC, those will be used as a base data for the future ratio. So in any case, we will not be affected.
See, if I may just add to that, this FGD is coming out of a statutory stipulation depending on the environmental imperatives. These are policy decision at the highest level. And however, at the company level, this becomes a change in law. Even if it is introduced, altered, withdrawn. As far as the company is concerned, it operates on a cost-plus principles, and we are completely hedged against this kind of a station. So this is a completely national-level policy decisions, and the company per se remains unaffected because we are entirely into a cost-plus business.
Our next question is from the line of Subhadip Mitra from Nuvama.
My first question is with regard to the deferred revenue. We've seen a pretty chunky number that has come in this quarter. If you can throw some light on this particular item and if this is an EBITDA neutral for PBT neutral.
You are talking about regulatory deferral account.
Yes, sir.
Okay. See, it is like this that a chunk of this net movement in the regulatory deferral account balance is on account of the unfavorable ERV expenses close to INR 1,997 crores. So what happens is the cost is booked on the relevant accounted of either interest rate or the finance cost, other expenses, and we are capturing the pass-through because it's a cost-plus mechanism, The Pass-through happens to below the PBT. So that is the reason. This is captured under the net movement in regulatory deferral account balances. So it's then evens out for the company, its profit neutral in that sense.
Because as you know that in the regulatory principle, the cost of hedging is a pass-through. Interest rate is also passed through. Savings in interest rate is also a pass through. So accordingly, only thing from the statement reporting point of view, while the cost gets captured in the relevant account heads, the pass-through is captured in the regulatory deferral account. I hope that makes it clear.
No, this makes it really very, very clear. Thanks for thanks that detailed explanation. So, secondly, if you can also help us with the regulated equity. I think you mentioned consolidated regulated equity at INR 105,000 crores. I'm not sure if I caught that right number. So the consol and stand-alone regulatory equity, if can help us with both.
Yes. See, as on 30th September 2024, the stand-alone regulated equity is INR 89,430 crores, okay? Now this was INR 83,059 crores last year, okay? Now as far as the consol is concerned, it is INR 105,049 crores, which was at INR 99,611 crores previous year.
Got it. Got it. And sir, lastly, the adjusted PAT number for this quarter for stand-alone and consol?
Yes. As far as -- I'll just make a comparison that on a stand-alone basis for Q2, while the reported at is INR 4,649 crores. For Q2, the adjusted PAT is INR 4,202 crores. On a consolidated basis, as against INR 5,380 crores of reported PAT, adjusted PAT is INR 4,867 crores.
Got it. Got it. One last question, if I can squeeze in. You mentioned that about 13.6 gigawatts of fresh ordering is active. If I understand correctly, is most of this thermal and if you can just spell out some details on that?
Can you please repeat for better clarity?
Sir, what I was asking is on the future ordering of projects, I believe you mentioned 13.6 gigawatts of fresh ordering to be done in the current year. How much of this is expected to be thermal and some details on that?
All are thermal. All are thermal. I was mentioning about thermal only.
Okay. Understood. And these are all in the tendering phase to be ordered out by March.
That's right.
8.8 gigawatt already is bidded out and balance 4.8 in next financial year.
So the 8.8 that is bidded out have not been awarded yet, right? They are in the bidding stage.
That is expected to go out in the third quarter.
By December, it will be awarded, 8. 8 gigawatts.
Okay, 8.8 by December. Got it.
Our next question is from the line of Puneet Gulati from HSBC.
Can you also lay down what is the expected commissioning size on the thermal side for this year and next year? And how is the progress on those?
For this, it will be 2.7 gigawatt thermal. For the next financial, it will be -- for this year, it will be 2.7 gigawatts, which consist of Barh, North Karanpura, one unit of Patratu and one our Khurja unit one. 2.7 gigawatt thermal in this financial year FY '24, '25.
Okay. And next one?
For the next year, it is 800-megawatt Patratu and THDC Khurja 600 megawatt, so 1.46 gigawatt next -- for next financial year.
Okay. That's helpful. And in terms of your projects, which are awarding out, Sipat and Darlipali you said is now done, right? What are the next 3 in pipeline? And what is the status for ratification of PPAs there?
Our next time pipeline is around 8.8 gigawatt consisting of Nabinagar Stage 2, 2,400 megawatt; Telangana Stage 2, 2,400 megawatt, Gadarwara Stage 2, 1600 megawatt; Meja Stage 2, 2,400-megawatt, of which Meja 2 and Nabinagar 2 almost PPA consent is there. For Telangana, around 75%, and for Gadarwara around 68%, consent for PPA is there. Balance PPA were expected to be achieved within 2 months.
Our next question is from the line of Arihant from Bowhead.
Sir, please, can you guide what would be the capacity addition in renewables in FY '25, '26 and '27.
See, as for the capacity expansion in renewable is concerned, this will be done majorly through the NGEL under our subsidiary. The current year, the capacity addition expected is 3 gigawatts. Next year, it will be 5 gigawatts. And the year next, it will be 8 gigawatt. So by the operational capacity will be 19.4 gigawatt.
Okay, sir. And sir, can you also give an update on PSP 1,000 megawatt project. What's the status of that? When will it get commissioned?
These 3 projects expected mission in this quarter, December.
Our next question is from the line of [indiscernible] from Avendus Spark.
My question is on the renewable projects on NGEL, in NGEL like where in the details of project wise PPA, whether it has or not is given. So there are some projects where there is PPA to be signed. So can you highlight why these projects don't have PPAs, if there are any challenges in signing PPA, what is the way forward?
So let me give you an overview that right now, the operational capacity is close to 4.3 gigawatts. Now I will classify it into 2 further categories, a further 12 gigawatts is contracted and awarded for which there are some PPAs have been signed, all documentations done. A further 11 gigawatt is at different stages, these are definitive projects where there is a commitment. But however, the documentation in terms of award, in terms of PPA are in various stages, and we hope to take this into the control this year. So we will have with this a clear pipeline of 25 gigawatt of RE project comprising of solar, wind.
Yes. So my question is on the contracted awarded projects...
So up to FY '26, whatever is our plan for which entire -- all tie-ups are in place, including offtake.
I appreciate that, sir. My question is on the 11.5 gigawatts of contracted and awarded project, list of projects given in the DRHP where certain projects do not have PPA, like it says no PPA. So for example, there is REMCL 2 or SECI solar or...
No, no, that -- what you're saying is the other category, which I said. There are 2 categories. 12 is firmly in place. Another level is under the process. This is what I was trying to explain.
Okay. So a broader question is, are you seeing any pushback from DISCOM or space in signing PPAs? Or is it going to be smooth sailing for that?
No, no, absolutely, we're -- we have no such challenges.
Our next question is from the line of Satyadeep Jain from AMBIT Capital.
Couple of questions. One on thermal. Recently, some of the project awards we've seen on thermal, the CapEx figure has gone beyond INR 12 crores per megawatt. I just wanted to understand what's driving that increase in CapEx of some of the new projects?
Actually, we have had an ACC also. Now we are looking for conservation of water also. That also adds to the cost. And of course, a number of players have come down to a single air cool consumption. So it actually comes around INR 0.7 crore per megawatt, you have seen this. Otherwise, if you see our Sipat is being a 1 unit, slightly it has gone high. If the number of units are 3, definitely, the cost will come down. Of course, ACC is the major contributor. And since the number of bidders will come down to only 1, there is a slight increase in cost.
Okay. Fair enough. On the renewables front, I wanted to ask, this 358, obviously, this includes the MOU projects. So when you look at locking in transmission, would it be fair to say you've locked in transmission for the entire 16 upcoming capacity gigawatt. You've already identified, you've already put in the G&A request. You're confident the transmission will come in for this capacity by '27.
Our capacity plan of 60 gigawatt, total capacity plan up to FY '32. But right now, as I was explaining, that everything is tied up in terms of whatever is our commissioning up to FY '26. Going beyond that, it has to be a progressive plans. We will be simultaneously entering into the bidding process. We are parallelly procuring it and also seeking land connectivity on a parallel. So on all the fronts, we have to work.
Okay. So you're saying 3 and 5, you've already planned, the remaining for '27 is still...
Because there are certain prerequisites when it comes to seeking connectivity. So you have to demonstrate -- so you have to have the land presented. So we follow a step -- those process will have to be followed, and it will be gradual progressive action.
Okay. So within the 3 and 5, how much from Khavda? The entire Khavda can come within this by '26.
Khavda, yes, correct. 1.2 gigawatt will be coming from Khavda in this.
In this 8 gigawatt in the next 2 years.
Yes.
Our next question is from the line of Vishal Periwal from Antique Stockbroking.
Two questions. One, in briefly initial commentary you mentioned that the NTPC stand-alone interest cost is roughly 6.63%. So is it fair to say NTPC Green will have a similar number when we see interest cost coming in?
It would be fair to assume this broadly, given the fact that NTPC Green Energy Limited has been rated as AAA domestic rating, which is equal to the parent. And the loans that they have contracted after their formation only gives a feeling that they are equally able to raise at a competitive rate equal to their parent. And going ahead further, they -- NGEL will also have an edge that they will have access to a lot of multilateral loans from financial multilaterals who are with a clear exclusive focus on green energy, renewable energy and ESG. They will be able to access these cheap funds. And in fact, they have already done that to some extent.
Okay. And then second, I think though you have clarified this. So for NTPC Green, contracted and awarded PPAs as per DRHP is 11.7 gigawatts, right, sir? And further, there are certain like line items in that list mentioned like PPA is open. So is that the same reason you mentioned like the -- in terms of tie-up and everything PPA and award is up to FY '26 that we have, which is basically means it's not 11.7, it's actually 3 gigawatt in FY '25 and then 5 gigawatt in FY '26. So actually 8 gigawatts vis-a-vis 11.7 in terms of awarded and PPA tied up to that.
Yes. As I was mentioning, the current operational capacity is 4.3. We'll be adding 3 gigawatts. These are already awarded. So I mean, this will be fructifying, 3 gigawatt will fructify during the current year, 5 gigawatt during the next year and 8 gigawatt next year. So as far as the classification as I was, I may repeat that 12 gigawatt -- around 12 gigawatts because there is a continuous process. The status, what we find in the DRHP, there have been more improvements on that. So these things keep happening on all the fronts. So I may share the latest thing that around 12 gigawatt, it is awarded, contracted, and further 11 gigawatt -- 11.5 gigawatt is at different stages.
Part of this even have been converted into PPA and partly they are in the process. But these are projects which are clearly identified and definitive, and it's a matter of time that all this will be converted into awarded and contracted category.
Our next question is from the line of Mohit Pandey from Macquarie Capital.
Sir, firstly, in the initial remarks, you mentioned INR 22,700 crores as a capital outlay for the parent entity. What would the corresponding number will be for consol for FY '25?
On a consolidated basis group, it will be INR 27,982 crores. This is the plan -- overall plan. Again stand-alone...
And is it possible to give a breakup of this -- is it possible to share a breakup of this as to how much will it be across different elements, a broad breakup?
Maybe we can share this with you separately. I don't have it exactly the breakup with me, I will share it with you.
And sir, secondly -- yes, sir. Sir, secondly, I think earlier in previous calls, it has been mentioned that the entire thermal capacity incremental awards would be over the next 2 financial years but I think today, you mentioned by FY '27. So which are the particular projects that are now in quarter FY '27, sir?
See, what -- right now, the Director of Project had given you the detail of this thing. I may give you summarily that there are -- there will be a total of 7 projects, which will be -- which is planned for tendering up to FY '27. So this includes Meja 2, so our combined capacity, I am saying 2,400; Nabinagar 2,400; Telangana 2, 2,400, Gadarwara 2, 1,600. So that makes it 8,800 during the current year. Anpara will be in '25, '26, 1,600, Obra will be 1,600, that makes it 3,200 in the next year. And in the financial year '26, '27, there will be 1,600 in Patratu 2. So that makes it a total of 13,600 megawatts, 6,400 of which will be from the NTPC and 7,200 will be through a JV subsidiary.
Our next question is from the line of Rajesh Majumdar from B&K Securities.
Yes, most of my questions are answered. I just wanted to ask you that, will the NTPC Green IPO still happen on time in the light of current market conditions? And what kind of approximate valuation are you looking at in that range would do, sir?
No, we are stated -- no, no. There is no valuation that has been decided right now. So we are still in the process, and we are hopeful that we will be going ahead as per our plan.
So it will be concluded by 3Q as per original plan.
Sorry?
It will be concluded by 3Q as per original plan, the IPO?
Q3, hopefully.
Our next question is from the line of Nikhil Nigania from Bernstein.
I have 2 questions. My first question was, given the way, at which battery prices have fallen, are we seeing any pushback or delays in signing of PPAs for thermal power plants?
We don't anticipate such because given the overall demand-supply scenarios and also the projection that those are available both in terms of your overall requirement of energy and also the picking this thing, which is expected to grow by 75 gigawatts over the next 7-8 years. So all this will necessitate that we'll have to add capacity. Thermal capacity for the country as a whole has been projected that 80 gigawatts will still be needed. We have our share of 25 gigawatts that has been assigned to us. And we are confident that all this will be tied up. And most of our things are tied up, something we are partly tied up and we are expecting responses from the states.
Understood. My second question was on the nuclear side. So Mahi Banswara, Chutka, any broad sense of timelines that you could guide us on? Historically, we have seen nuclear plants take about 10 years to be set up. So any sense -- any guidance on timelines for those assets?
Director of Projects will be replying for this. Mr. Sundaram?
Our Mahi Banswara's first milestone, first pour of concrete is expected in March 2026. Our first unit would approach to [ critical ] financial year '31, '32. All the 4 units will be commissioned by FY '32.
Understood. And sir, Chutka, any development? Or is that not part of the plan as of now?
This instance, Chutka has not been transferred to our JV. So right now, there are some land issues. NTPC is looking. We won't be able to say anything definitive at this stage. Yes, that was a proposal -- distant proposal. But right now, we are taking up Mahi Banswara year in the first place. We'll let you know as and when if there are more developments.
Our next question is from the line of [ Harshil Setia ] from [ Renasant Investments. ]
The 60 gigawatt target by FY '32 is for the renewable energy capacity, correct?
It is for the renewable energy broadly. But when you talk about renewable energy, it consists of your solar, wind projects, it comprises of your storage also. And also, some of these capacities will go for green molecule business also, which we plan to go ahead. So that will require some solar energy, wind energy for feeding it to the -- for the generation of the green hydrogen. So all this will be comprised under the 60 gigawatt.
And this will be broadly done in NTPC Green Energy.
All these will be under NTPC Green Energy only. So NTPC Green broadly will have solar, wind, storage, be it in terms of battery energy storage or PSP and also the molecular -- green molecular business.
Okay. And the nuclear energy will be in the current entity, the stand-alone entity?
No. Nuclear energy will be, of course, with NTPC, but that is being implemented in a joint venture through with NPC as I was mentioning. And we also have a 100% subsidiary for our future new endeavors on the nuclear side. To answer your questions squarely, will not have nuclear energy, although it is a non-fossil fuel-based.
Our next question is from the line of Amit Bhinde From Morgan Stanley.
Sir, I just wanted to understand the update on pump storage hydro. And just to clarify, you said in last question, PSP would also be a part of NGEL and not in the NTPC entity?
Please repeat for clarity in storage.
Yes. So I wanted to get an update on the pump storage that we were exploring, one? And second, as you said in the previous question that PSP would be a part of NGEL, and not NTPC. Just wanted to reconfirm on that one.
Yes. PSP will be broadly for achieving renewable energy solution on an RTC basis, or firm or dispatchable. So many of the PSP will be driven by this thing. But there are stand-alone PSPs, which will also be implemented by our other 2 subsidiaries, which is THDC and NEEPCO. So it will not be purely restricted to NGEL also, some of the major because we have acquired THDC and NEEPCO. So some of -- there was an earlier query about Dadri. So Dadri was itself a PSP only for storage.
Right. So any broad breakup because in the last call, we were talking about some 11 gigawatts of pump storage being explored. Any broad breakup in this subsidiary or which entity would be each of this [ setting ]?
Already, 1 gigawatt PSP, our subsidiary is doing. And 2.8 gigawatt, from Tamil Nadu and Maharashtra, we have got the order for going ahead. Another 4.2 gigawatt is in the pipeline. So expected is among 8 gigawatt PSP, we'll be able to get at NGEL.
2.8 gigawatt Tamil Nadu and Maharashtra that is -- that would be part NGEL? Is it?
Yes. It is.
Our last question is from the line of Rishika from [ GS. ]
I have 2 questions. First, what was the decline in PLF of coal and gas this quarter? And second is the 400 capacity addition that we've seen this quarter when compared to the previous one, what is the breakup here between renewable and thermal?
Okay. As far as your first question regarding PLF is concerned, PLF has a bearing on what is the demand rather than it's no longer efficiency parameter. It has more to do with what is the system demand. And with more renewables coming into the space, increasingly, the renewable energy may find a lesser PLF because it will be playing a role of subservient to the renewable energy during the daytime. So the PLF will be lesser compared to the previous periods. So that is 1 point.
What was your second question, can you repeat?
The second question is on the capacity addition this quarter, could you tell me the breakup? Is it all renewable or was it thermal or any other source?
So capacity addition, which has been achieved is 485 megawatts. Out of that, the breakup is, 90 will be your renewables. And the entire thing is renewable, 395. The breakup is 90 will be in NTPC and 395 will be with the group -- our group companies. So that makes this total 495.
Thank you. Ladies and gentlemen, that was the last question for the day. I now hand the conference over to the management for closing comments.
Thank you so much, and on behalf of the NTPC team, I thank all the participants for their very pertinent queries and an opportunity for us to explain in detail. Thank you once again.
On behalf of JM Financial, that concludes this conference. Thank you for joining us, and you may now disconnect your lines.