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NTPC Ltd
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Ladies and gentlemen, good day, and welcome to the NTPC Limited Q4 and FY '20 Earnings Conference Call hosted by Antique Stock Broking. [Operator Instructions] Please note that this conference is being recorded.I now hand the conference over to Mr. Rohit Natarajan from Antique Stock Broking. Thank you, and over to you, sir.
Thank you, Faizan. Good afternoon, everyone. I welcome you all for the NTPC 4Q FY '20 and Full Year Earnings Conference Call. We thank the NTPC management for giving us the opportunity to host the call. From the management side, we have with us Mr. A.K. Gautam, Director Finance; Mr. A.K. Gupta, Director of Commercial; Mr. Dilip Kumar Patel, Director of Human Resources; Mr. Ramesh Babu V., Director of Operations; Mr. RSV Muthumani, Executive Director of Finance; and other senior management members from the company.I would now hand over the call to the management for their opening remarks, post which we can commence the Q&A session.
Thank you. A very good evening, everybody. I, A.K. Gautam, Director of Finance, welcome all of you to Q4 FY '20 con call of NTPC Limited. Before I move further, I would like to introduce Shri A.L. Gupta, Director of Commercial; Shri V. Ramesh Babu, Director of Operation; Shri RSV Muthumani, Executive Director of Finance; and other key members of NTPC team who are also on the call.Today, the company has announced the audited financial results for FY '20 along with the unaudited financial results for the Q4 FY '20. The key performance highlights for the financial year and quarter ended 31 March, 2020 have already been disclosed...
Sorry to interrupt you. Sir, there is an echo from your line, sir?
What to do?
Sir, there is an echo from your line, sir. I would request you please use the handset mode.
Should I start from beginning?
Yes, please. Now it's audible.
Okay. A very good evening to everybody. I, A.k. Gautam, Director of Finance, welcome all of you to Q4 FY '20 con call of NTPC Limited. Before I move further, I would like to introduce Shri A.K. Gupta., Director of Commercial; Shri V. Ramesh Babu, Director of Operations; Shri RSV Muthumani, Executive Director of Finance; and other key members of the NTPC team who are also on the call.Today, the company has announced the audited financial results for the FY '20 along with the unaudited financial results for Q4 FY '20. The key performance highlights for the financial year and quarter ended 31 March '20 have already been disclosed on the both stock exchanges.Now I will just brief you about the operational highlights for Q4 and 12 months of FY '20. NTPC stand-alone growth generation in Q4 FY '20 is 68.27 billion units. And in FY '20, it is 259.62 billion units, as compared to 69.19 billion units and 274.45 billion units, respectively, in the corresponding previous periods.Gross generation of NTPC Group in Q4 FY '20 is 76.01 billion units, and FY '20, it is 290.19 billion units as compared to 77.69 billion units and 305.9 billion units, respectively, in the corresponding previous period.NTPC hydro and RE stations recorded generation of 4.94 billion units in FY '20 as against 4.55 billion units in corresponding previous year. During FY '20, NTPC has acquired the entire GOI stake in THDC and NEEPCO. Accordingly, they have become subsidiaries of NTPC. The growth generation during FY '20 of THDC and NEEPCO is 10.91 billion units, which is not included in above.In Q4 FY '20, we have added 4,680 megawatts commercial capacity, which included 800 megawatts at Darlipali, 660 megawatts at Khargone, 250 megawatts at Barauni and added 2,970 megawatt capacity on account of acquisition of THDC, which is 1,513 megawatts, and NEEPCO which is 1,457 megawatts.In FY '20, NTPC has recorded the highest ever commercial capacity addition of 8,260 megawatts. With these additions, the commercial capacity of NTPC on a stand-alone basis has become 49,695 megawatts and that of NTPC Group has become 61,126 megawatts as on 31 March 2020.NTPC has already commissioned 920 megawatt for RE projects under EPC mode, 2,298 megawatts of solar projects are presently under implementation, and 2064 megawatts are under various stages of pending. NTPC has awarded 2,053 megawatts for RE projects under EPC mode in FY '20. In 4 -- FY '20, 4 coal stations of NTPC were among the top 10 performing stations in the country in terms of PLF. It includes Rihand with 88.64%, Singrauli with 87.28%, Korba with 86.67% and Sipat with 86.07% PLF. During FY '20, PLF of coal stations of NTPC was 68.20% as against the national average of 65.89%, thereby maintaining a spread of over 3%.During the year, we have suffered losses due to grid restrictions and fuel supply. The generation loss due to grid reductions in coal stations were 74.08 million units. For the gas station, the loss was 28.55 billion units. The generation loss on account of fuel supply constraint in the coal-based stations was 6.67 billion units. Now let us -- I will put before you status of fuel supply.During the FY '20, materialization of coal against ACQ was 92.80% as against 95.5% in FY '19. Coal supply during FY '20 was 174.84 MMT, comprising of 172 MMT of domestic coal and 2.84 MMT of imported coal. The coal supply during the corresponding previous year was 176.80 MMT with 175.76 MMT of domestic coal and 1.04 MMT of imported coal.Coal consumption during FY '20 was 169.38 MMT, comprising of 167.05 MMT of domestic coal and 2.33 MMT of imported coal. The coal consumption in the corresponding previous year was 173.05 MMT, with 172.18 MMT of domestic coal and 0.87 MMT of imported coal.During FY '20, 9.63 million metric tons of coal, previous year 6.81 MMT, has been excavated from Pakri Barwadih coal mine. Cumulatively 19.14 MMT of coal has been excavated till 31 March 2020. 1.54 MMT coal has been excavated from Dulanga coal block in FY '20 which was 0.51 in FY '19. Cumulative expenditure of INR 6,722 crore has been incurred on the development of coal mines til 31 March 2020. The total expenditure incurred in FY '20 was INR 853.03 crores.The Cabinet Committee on Economic Affairs GOI gave its principal approval for a strategic sale of entire GOI stake in THDC and NEEPCO to NTPC. NTPC entered into a share purchase agreement and acquired the entire stake of GOI in NEEPCO and THDC. THDC and NEEPCO have become subsidiaries of NTPC with effect from 27 March 2020.NTPC has signed an MoU with Maharashtra State Power Generation Company, Mahagenco, for formulation of FGD for [indiscernible] to develop 2,500 megawatts of RE power in the state of Maharashtra. NTPC has entered into agreement with Rajasthan Solar Park Development Company Ltd to develop 925 megawatts of solar projects in Nokh Solar Park in Jaisalmer, Rajasthan, spreading over 1,850 hectare of land, including the associated transmission system within the park. And NTPC will set up solar projects of 735 megawatts, that is 245 x 3 under the EPC mode and 190-megawatt under the developer mode.NTPC is offering complete [ e-bus solution to STU ] through its subsidiaries NVVN. Both MoU as well as bidding route is being explored for the same. NVVN has signed an agreement with Department of Transport, Andaman and Nicobar Islands, for development of electric buses. The pilot project is planned to carry out 5 fuel cell electric bus and 5 fuel cell cars in Leh and New Delhi each. The pilot project is being designed with a complete value chain of hydrogen, including hydrogen generation from renewable energy, hydrogen storage and dispensation. An EOI has been invited in this regard from the global FCEV manufacturers.NTPC Limited has signed an agreement with Central Pollution Control Board to provide financial support for the installation and commissioning of continuous ambient air quality monitoring sections. NTPC will also provide financial support of INR 80 crores for the installation of [ 25 ] such stations across 6 states and 3 union territories. Environmental management, the initiative taken by NTPC for preserving environment.Fuel gas desulfurization systems are under various stages of implementation in 64.85 gigawatts of group capacity. FGD systems have already been commissioned for 920-megawatt capacity. FD system for 56.76 gigawatts have been awarded and FGD system package for 7.17 gigawatt capacity are under various stages of pending.For compliance with NOx control, combustion modification has already been implemented at 4 units with 2 gigawatt of thermal power capacity, award for contracts for supply and installation of low NOx combustion system for 19 gigawatts of capacity have been awarded. Award for DeNox system for 45 gigawatts under -- are under process.Further, in its endeavor towards more sustainable power generation, NTPC is utilizing agro residual based pellets to coal fire with its power plants along with core. NTPC Dadri plant has been co-fired with close to 6,000 tonnes of agro residue fuel along with coal till 31 March 2020. The company is in the process of procuring over 14,000 tonnes of [indiscernible] per day for its power plants located across the country.Now I come to financial highlights. Gross sales for FY '20 is INR 97,443 crores, as against previous year gross sales of INR 89,765.23 crores, registering an increase of 8.55%. Total income for FY '20 is INR 1,00478.41 crore as against previous year total income of INR 92,179.56 crore, registering an increase of 9%.For FY '20, PBT is INR 14,465.92 crore as against INR 12,672.52 crore in the corresponding previous year, registering an increase of 14.15%. PBT for Q4 FY '20 is INR 4,383.77 crore as against INR 3,537.17 crore in the corresponding quarter of previous year, registering an increase of 23.93%. For FY '20, PAT is INR 10,112.81 crore as against INR 11,749.89 crore in the corresponding previous year.Cash for Q4 is INR 1,252.44 crore as against INR 4,350.32 crore in the corresponding quarter of previous year. During the year, the government of India has introduced reward service [indiscernible] direct tax reward services for F2020. Company has decided to settle its pending income tax disputes by opting for reward service. Accordingly, the company has created additional tax provision amounting to INR 2,661.47 crore, keeping in view the terms and conditions of the scheme. CERC Tariff Regulations 2004 provide that income tax liability for the tariff period 2004 to '09 from its core business computed as an expense is to be recovered from the beneficiaries. During the year, the company has recognized a revenue of INR 1,768.88 crore, recoverable from the beneficiaries for the tariff period 2004 to '09, on account of income tax liability under the [indiscernible]. The under recovery on account of fixed charges has reduced from INR 799 crore in FY '19 to INR 249 crore in FY '20. This was INR 380 crores as at 31st December 2019. Plus, there is an improvement of INR 131 crore in Q4 FY '20. For FY '20, the Board has recommended final dividend of 26.5% of the paid up share capital, that is INR 2.65 per share -- sorry, subject to the approval of the shareholders in the Annual General Meeting scheduled to be held in September 2020 in addition to interim dividend at the rate of 5% of the paid up share capital that is at the rate of INR 0.50 per share already paid in March 2020. And now I will put you an update on various financial activities. The regulated equity as at 31 March '20 was INR 61,811.48 crore as against INR 53,988.95 crore as at 31 March '19, a jump of 14.49%. The total asset of the company stood at INR 3,27,667.45 crore as against INR 2,90,750.96 crore as at 31 March 2019. Gross block has increased by INR 39,921.97 crore to INR 1,92,898.7 crore as at 31 March 2020, mainly on account of capitalization of new units.The capital work in progress, including advances, stood at INR 77,881.03 crore as of 31 March 2020 as compared to INR 95,803.34 crore as at 31 March 2019. At the group level, CWIP, including advances, stood at INR 1,05,411.92 crore as at 31 March 2020 compared to INR 1,24,970.59 crore as at 31 March 2019.Fund mobilization. During Q4 FY '20, NTPC has signed term loan agreement of INR 5,000 crores, INR 3,000 crores and INR 2,000 crores with HDFC Bank, Punjab National Bank and Oriental Bank, respectively, totaling to INR 10,000 crores. Average cost of borrowing for FY '20 is 6.81% as compared to 6.92% in FY '19.CapEx, in FY '20, we have incurred a CapEx of INR 24,039.37 crore as against INR 27,363.24 crore in FY '19. The total group CapEx for FY '20 was INR 35,622.93 crore as against INR 33,606.61 crore in the previous year.In addition, an amount of INR 11,500 crore has been incurred on the acquisition of GOI stake in THDC and NEEPCO and INR 2,050.75 crore CapEx has been incurred by these 2 companies during FY '20. The capital outlay for FY '20 has been estimated at INR 21,000 crore for NTPC.Commercial. The Ministry of Power, Government of India has announced the Atmanirbhar Bharat special economic and comprehensive package, which includes liquidity infusion to -- for exclusive purpose of discharging liabilities of the power generating companies. The company believes that the above referred economic and comprehensive package is expected to improve the realization of company against the outstanding dues of DISCOMs due to liquidity infusion. Further, in the light of above and the GOI directives, NTPC has decided for deferment of capacity charges of INR 2,064 crores to DISCOMs to be payable without interest after the end of lockdown period in 3 equal monthly installments and INR 1,363 crore on the capacity charges during the lockdown period on account of COVID-19 in the financial year 2020-'21. NTPC has realized a sum of INR 89,205 crore out of the total billed amount of INR 96,439 crore in FY '20. Now I will briefly touch upon some of the NTPC group companies. NTPC Vidyut Vyapar Nigam, our trading subsidiary, transacted 14.53 billion units during FY '20 as against 17.4 billion units during FY '19. Ministry of Power, Government of India [indiscernible] dated November 26, 2019 has nominated NVVN as the settlement nodal agency for settlement of grid operations related charges with neighborhood countries, namely, Bangladesh, Bhutan, Nepal and Myanmar. During the FY '20, we have accounted for dividend income of INR 210.40 crore from our subsidiaries and JV companies. Previous year, the figure was INR 124.19 crore. Now NTPC continues to win laurels and awards in various fields. Major awards received in Q4 FY '20 are as follows.NTPC has been awarded the outstanding performing utility in thermal power jet sector by the Central Board of Irrigation and Power. NTPC is recognized among the top 30 companies in India's best workplaces in manufacturing 2020. NTPC has been honored with 2 awards for -- governance now 7 PSU awards, the company own employee productivity, financial category and digital PSU nonfinancial category awards. NTPC has been awarded the corporate governance and sustainability vision award 2020 in CSR category by Indian Chamber of Commerce.These were some of the highlights I wanted to share, and I would like to mention here. Despite the wide-ranging limitations caused by COVID-19 pandemic, NTPC has provided consistent support to the nation by ensuring uninterrupted supply of power.Now we may proceed with the Q&A session. Thank you.
[Operator Instructions] The first question is from the line of Mohit Kumar from IDFC Securities.
I have 2 questions. The first question is primarily this current tax number. You have provided for INR 2,700 crore additional current tax. Is it recovered from the consumer or is it -- is it completely to our own account? And this pertains to which period?
As you must have heard in my remarks that out of this INR 2,700 crore, around INR 1,700-some figure is up to 31 March 2009, which is recoverable from the beneficiaries. So the net impact will be around INR 883 crores on NTPC PAT, means NTPC PAT.
So sir, can you provide us the adjusted PAT for the quarter, because the number is usually quite small for the reported PAT?
Okay. Adjusted PAT for FY '20 as compared to FY '19, reported in the quarter?
Reported in the quarter, sir.
Okay. Quarter, afterwards I will give.
Sure, sir. Thank you.
First you note down the reported profit is INR 10,112.81 crores and INR 11,749.89 crores in FY '20 and FY '19. Adjustments are previous year sales minus 31.59 and minus INR 150.65 crores. Then tax related to earlier years included in sales, minus INR 1,768.880 crores; appreciation policy change impact minus INR 189.86 crores. [indiscernible] impact 0, minus 59.10. Previous year, INR 723.930 crores provisions, minus INR 356.31 crores plus INR 890.91 crores.Net credit and [ RRA ] adjustments. Current year, INR 801.95 crores. Previous year, minus INR -1,754.25 crores. Tax related to earlier years, INR 2,660.17 crores minus INR 105.88 crores. Tax impact from the above adjustment, INR 221.27 crores and INR 45.20 crores. That makes the adjusted profit of INR 12,173.49 crores as against INR 10,616.12 crores, up of 15%. And with respect to quarters, I advise you to take these numbers from Aditya Dar.
Sure, sure. I'll take it, sir. Secondly, on this receival issue, the number has jumped up quite significantly from the last year. Last year, it was INR 8,400-odd crores. Now it is INR 15,000 crores. And so how much increased in the last couple or last 3 months? And then if you think the situation to normalize, and what is the number, which is greater than 45 days outstanding at the end of March '20?
Pardon, what -- last sentence?
Sir, 3 questions, sir. Firstly, what is the outstanding greater than 45 days? And when do you expect the receival situation to normalize? And how much of this load increased?
I can give you only 1 answer in this, but in numbers, et cetera, you can take from Aditya Dar, what is more than 45 days and all.
Sure.
I think Director of Commercial, Mr. A.K. Gupta, will take this question.
Sure, sir.
Gupta ji.
Can you repeat the question, please?
Sir, question, sir, when do you expect the receivable situation to normalize? That jumped up quite significantly from INR 8,400-odd crore at the end of FY '19 to INR 15,600 crore at the end of FY '20. And second is what is number greater than 45 days, if you can reply to that? And thirdly, sir, what is the jump due to COVID? What is the collection in the last 2.5 months?
Okay. I think -- let me just put 1 thing very clear across. See, Government of India has come out with a scheme wherein PFC and REC will provide the loan to state DISCOMs. And based on that, they will be able to give us the outstanding dues. So as on that -- out of that PFC and REC, I think there are 3 states they have already approached them. That's #1, Andhra Pradesh; #2, Punjab; and #3, Uttarakhand. All other states are in the process of getting their government approvals to really approach PFC and REC for these loans. So I think once that -- there is more clarity on that, I think that would be a very, very important thing for us to get the recoveries. As far as we are concerned, as on days, we have just not been able to recover the full amount as such. And still, there is an outstanding of around INR 18,000 crores to various DISCOMs. So I think this PFC and REC loan is going to help us in a very larger way. Even in Jammu & Kashmir, it is in a very advanced stage, and they would be also approaching who is our biggest defaulter as on date. So I think things will improve in terms of the realization over the next few months.
Sir, last question, sir, what is the commercialization guidance for the FY '21 and FY '22?
Commercial, what?
Commercialization guidance.
Are you talking about projects?
Yes, sir.
Okay. So in case of 2021, what we expect that we are going to have around 5,950 megawatts is the target for commercialization during 2021. Now considering the COVID situation, because there are issues related to man power requirement because of the -- lot of labors have gone back to the concerned villages, I think we are very sure that out of this 5,950, 4,490 will be -- certainly be able to achieve and remaining would all depend on how the things on COVID really work out.
And so what about FY '22?
FY '22, actually, we are targeting, in fact, still higher one. And I think '21, '22, we are targeting about commercialization of 5,670 megawatts.
The next question is from the line of Apoorva Bahadur from Jefferies.
Sir, I wanted to understand, basically, what is our PLF and the surcharge income for the quarter and the full year?
[Technical Difficulty]
This is the operator, sir. We are not able to hear you.
Are you now getting me?
Sir, your voice is not audible. It's not clear.
Now it is clear?
Yes, it's clear now.
Okay. So PLF of this, yes, coal-based stations, it is 16.20.
PLF incentive income?
PLF incentive?
Yes, sir.
You are asking about the incentive?
Right, right, sir.
Incentive is INR 352 crores in FY '19. And in the current year, it is INR 199.26 crores. You want for quarter also?
Yes, sir, it will be very helpful.
That is around 94 -- INR 94 crores in January to March '19 and INR 35 crores in January to March '20.
Okay. And sir, the surcharge income?
Surcharge income is, in previous year, it was INR 1,299 crores. In the current year, it is INR 1,633 crores. For the quarter, it is -- current year, it is INR 394 crores as against INR 1,081 crores.
Okay. Got it, sir. Sir, secondly, on this tax amnesty scheme that we have agreed to. So basically, for the remaining amount, which is not a pass-through, how does that work? So basically -- I mean our understanding was that any increase in taxes and any changes typically what -- gets passed through the customer. So why is this amount not being passed through?
No, no. Actually, this -- when this will become part of [indiscernible]. so I think you will get this -- let me -- let us examine this. We will give you separately this answer.
Okay, sir. Sir, last one -- last question, if I may ask 1 more is on your ordering plan for FY '21, what plants do you intent to order?
I think Mr. Gupta will answer this question.
Okay. Sorry, I was mute. Let me -- I've just unmuted myself. Okay.
They are asking about the ordering?
Yes, yes, yes. We are -- we have lined up our [indiscernible] 660 megawatt, I think this is a project we intend to order this year as far as coal plants are concerned, but we would be going to have very good kind of ordering, which we are expecting on the renewable sector. And on the renewable, we are expecting -- I cannot give you the exact number as such, what we are going to order because it will all depend on how much capacity we are actually able to get on a competitive basis. But our plan is that from 2021, around 442 megawatts we are able to commission. And for other years thereafter, we are going to add around 4,000 to 6,000 megawatts capacity every year. In terms of renewable, as far as coal is concerned, I said that we have a plan for this year. And for subsequent years, we will see whether we need to add some more projects.
Okay. Fine, sir. Sir, you gave the commercialization target. Can you also give the capacity addition target for FY 2020?
Yes. Sure. For 2021, we are expecting that we should be able to do 5,540 megawatts for the full capacity addition. And this is what is our target, and this is what we want to really achieve, but however, again, let me just put across this COVID situation where the labors are an issue. So we are certainly thinking that out of 5,540, 4,740 we should be able to achieve. And if things improve, then we will be able to do 5,540.
Okay. And sir, in FY '22, what's the target?
FY '22, we are planning to have around 6,880 megawatts special addition.
The next question is from the line of Subhadip Mitra from JM Financial.
So firstly, while you gave us the numbers for the capitalization for FY '20 and I believe you said that's INR 5,950 crores. If you could also give us a breakup of the INR 5,950 crores in terms of what is stand-alone and which are coming in the JVs?
Okay. Let me just give you something which -- this is Khargone unit 2, 660 megawatts, which is already done. Then Lara 1, 800-megawatt; Barh 1, 660 megawatt; Gadarwara unit 2, 800 megawatt; Tanda 2, 660 megawatt; Darlipali 2, 800 megawatts. This is our stand-alone NTPC projects. And then we look at subsidiaries and JVs, this is Meja 1, 660 megawatts; BRBCL, 250 megawatts; and MPGCL, 660 megawatts. This is what I'm talking about the commercial capacity addition.
Perfect. Similarly, is it possible to know for FY '22?
Yes, sure, sure. I can give you that. As far as capacity addition, it is Lara unit 1, 800 megawatts; Barh unit 1, 660 megawatts; Gadarwara unit 2, 800 megawatts; Tanda 2, 660 megawatt; Darlipali unit 2, 800 megawatts; Barauni 2, 250 megawatt. And in terms of JV and subsidiary, Meja 1, 660; BRBCL, 250; and MPGCL, 660 megawatt. That makes it 5,540 and wherein I just put a caveat about this reduction in capacity possible in case the COVID situation does not improve.
Understood. Sir, since you're also mentioning that you are targeting 4,000 to 5,000 megawatts of renewable capacity addition from FY '22, if you can just get us -- give us a sense of how you're planning to add this capacity? Would this be completely either through the bidding route to solar park and what is the thought process?
Primarily, you see there are 2, 3 things which we have in our mind. One is that we are going to make way into the UMREPP, which are ultra mega renewable energy projects, for which we are now tying up with the land with different states like with Rajasthan, Tamil Nadu, Maharashtra, Gujarat and also some more. So the whole idea is that we will be able to have this UMREPP, wherein the government is also supporting in terms of infrastructure support. So this will be primarily the first thing. And besides that, we are also going to have some of the projects wherein the land will be in the scope of the EPC contractor. That means we will issue a contract where the land will also be arranged by the EPC contractors. This is second model and third model could be that we can also have some of the projects under developer mode wherein we can have somebody else set up the power plants for us and then we buy power and sell it to DISCOMs. There are 3 models which we are talking about. And this is what is our intention to really go ahead in the RE scenario.
Understood. Sir, if I can just delve a little bit into the details of these 3 modes. So the ultra mega renewable projects that you're talking about. So here, would these be projects where the government is giving us the land and the transmission, I mean similar to a case 2 bid of the normal UMPCs? Or this is a different model?
No. This is basically -- these UMREPP are basically solar parks, right? So what happens is there is a [indiscernible] agreement. These are the companies which will be normally on the JV, joint venture route, wherein the state will be our partner. It would be -- it would depend on the shareholding agreed between us and the state. So state will try to identify, and they would be supporting us for the land. And then after that, the projects can be set up either by NTPC or by our partner or it can also be on the developer mode, wherein somebody else will come in and set up the plant. So ultimately, the solar parks are going to have this capacity addition. Is that clear or...
Yes. Yes. So just to get a sense here, so here, assuming that 1 portion of it would be where we are ourselves setting up the capacity, the tariff will again be determined by competitive bidding, right?
Sure. Sure. Sure. Case is like this. It is like this. For developer mode, in any case, the tariff is decided when you do the bidding. The projects which we are on EPC contract, there we will be bidding to some of the biddings done by SECI or [Technical Difficulty] or the states, wherein we will put up this capacity, but then we will win these orders through a competitive route. So ultimately, this has to be the trough competitive process.
And the last mode where you are -- some third party becomes the developer who sets this up and then you're just buying and selling. So there, you will just earn trading margins and solar cost charges?
Sure. Sure. That's right. Your understanding is correct.
Understood. Understood. Sir, last point is you gave us, I think, the regulated equity number. So that number, INR 61,811 crores, this is the stand-alone regulated equity?
Yes. It is stand-alone.
Right. So now that we also have more projects or more companies that we've been acquiring, can you also give us the consolidated regulated equity number?
I think Aditya will provide you.
Okay. I'll take it offline. Would you be giving me the number now or should I take it offline?
No, no, no, afterwards.
The next question is from the line of Abhishek Puri from Axis Capital.
Just wanted to understand a little bit better on this Vivad Se Vishwas Scheme. So if the understanding is correct, we will lose about INR 883 crores in this, right?
Yes.
Okay. And this is not recoverable in future tariffs?
I think so because somebody else also asked this question in the -- previously, because we are now in net as per CERC regulation, you can bill income tax based on the effective tax rate. If you are under the net, then you have to bill them on net rate. So as of now, my thinking says that it is gone.
But will we apply to CERC for this recovery or no?
I think no, because the regulations are clear. Let us see. Let us see. We will examine it.
And in terms of ordering and -- last question, you mentioned that, our Talcher is under the process. However, Lara and Singrauli because those tenders were also out last year. So have we shared plans for doing further thermal projects or these projects have been set off?
Pardon, Pardon. Abhishek repeat the question. I was looking...
No, I think I can respond. Gautam Ji, I can respond to that question. In fact, Singrauli and Lara are the [indiscernible]. I don't think this is like that. I said that we will do these projects. But I think we will not be doing that in 2021. And certainly, we are looking at these projects for '21 and '22.
Okay. So is there a change in plan? Because in the last 3 years, we haven't seen you ordering any large thermal power plant, et cetera, to earlier and now maybe Talcher after 2 years? And you are talking about 4 to 5 gigawatt in renewable. So is there a change in thought process that you will be doing more of renewable than thermal? Because early thought process was 2,000 megawatts each on both the sites.
In fact, I don't think there is a change in thought. I think we have been sharing repeatedly that we want to go in for renewable, and I think our corporate plan, also we have been sharing with you, wherein we had really worked about that, we have to add renewable capacity. So while coal plants will still continue to add, depending on the situation in terms of coal generation requirements and all that. But ultimately, we are trying to really -- the company is thinking that we have to really go on a higher speed on the renewable side.
Okay.
So there is no change in thought process. This is something we have been consistent in telling that we would like to add more and more renewables.
Okay. Sir, on the regulated equity part and the addition of NEEPCO and THDC, how much debt have we taken? And how much is equity being used in this transaction?
Mr. Gautam can answer this.
Actually, this is -- as of now, we have taken the entire amount as debt for this acquisition. But we will refinance it. We will -- I mean we will relook into whether we can put some equity into it.
We have 1 more thing. Let me answer your first question regarding this tax, INR 883 crores. Total impact is INR 2,661 crores. Out of that, around INR 1,800 crores we have already billed, which is for the period -- period up to 2004, '09. For the tariff period 2009-'14, we have only recovered the tax amount based on the corporate tax rate. And for the tariff period 2014 to '19, we are under net, so we cannot recover anything.
The bottom line is that INR 883 crores cannot be recovered?
As of now. Because we -- a major portion of it, we have already recovered in the last tariff period.
Understood, sir. Okay. And my last question is on the FGD. Is your CapEx plan that is given includes the FGD CapEx as well and the proposed returns by the regulator are at debt level? So bottom line of CapEx is we have given?
Yes, it includes -- this CapEx plan includes the CapEx on FGD also. And so far as this -- you are mentioning about the draft regulation of FGD. I think we are taking up with the regulator to increase at par with existing [Technical Difficulty].
So if they don't do it, can we fund it with 100% of debt?
Yes, we can do that. No, but I think let's not jump into that situation because once -- unless until the CERC decides on that because it's only a draft regulation and we are really trying to take it up with CERC. So I think while what Mr. Gautam said it's fine that we can really do it from the funding, 1 part of it, but then let's wait for the CERC to decide.
Final order.
This decision will be taken only of the final order of the CERC funds.
Okay, okay. My last suggestion, just 1 suggestion is that since your overall capacity in the consolidated segment has also become bigger, more than NTPC in terms of the capacity addition has been large with these acquisitions also, request you to provide with the regulated equity numbers, the investment into solar renewable assets because you don't include that in regulated equity. And third, investment into the subsidiaries and JVs, which are these projects? For us...
You can -- yes, you can collect these numbers from us as well.
The next question is from the line of Atul Tiwari from Citigroup.
Sir, my question was on payment security mechanism. So it was supposed to be reviewed on 30th of June. I think for the [ earlier decision why ]...
This is the operator. Sorry to interrupt you. Mr. Tiwari, please use the handset mode. Your voice mode is not clear.
Can you hear me?
Yes, please use the handset mode, sir.
Is it better now?
Yes, sir. Please go ahead.
Okay. I was asking about the payment security mechanism, when is it going to restart? After 30th of June, where you supply power only against the LP? Or is it going to be differed?
I think there is a lot of disturbance and the voice is not very clear. I think if I understood it right -- hello?
Yes. Can you hear me now?
Yes. If I understood it right, we were talking about payment security mechanism. The LC mechanism, which was put into place in last August, right? And now it was basically during COVID situation, we have postponed recovery of fixed charges and things like that. And I think the Government of India is in a [indiscernible] state that we are really working on. And based on whatever is the direction come from Ministry of Power, probably we'll go ahead with that.
So sir, as of now, it is supposed to restart automatically from 1st of July? Or do we need to get an order from regulator or government to restart it?
No. I think this is a scheme, which the Government of India has launched, and we will just abide by that. I think it will be automatic by -- after this -- from 1st of July.
Okay. So after 1st of July, any power will be supplied only against the confirmed LCs from the DISCOMs?
In case no further orders are issued from the Government of India.
The next question is from the line of Aniket Mittal from Motilal Oswal.
Sir, I just wanted to firstly understand on the rebate part, this [indiscernible] rebate that you've announced, is it for the entire group? Or will your subsidiaries and -- such as THDC and NEEPCO take a separate call on this number?
No, no, it is for only NTPC. For the THDC and NEEPCO, they are very, very small amount -- very, very, very small amount.
Let me share that. Let me share that. In case of NEEPCO, I think there is a [indiscernible] where we are expecting that 300-megawatt is possible to be put on the bar, right? And in case of solar also, I think there is -- THDC has 150-megawatt solar, which we are -- work is on. I think this NEEPCO and THDC number you can collect this from Mr. Aditya Dar. He will be able to give you the exact numbers.
Sir, I was actually asking on the rebate amount. Sir, the rebate that you've announced...
The rebate amount is very, very meaningless. Means together both would be INR 100 crores.
Okay. And your subsidiaries is also announced different rebate. Is that understanding correct? The subsidies in JVs that you have?
Come again, I could not listen the question.
I'm saying you also have subsidiaries in JVs, right? So those would also separately announce a different rebate. Is that understanding correct?
Yes, yes. It is the same thing. Whatever is being done by this number, which we have -- Mr. Gautam shared is as the number of INR 1,364 crores, that's for NTPC, and our JV and subsidiary companies have also announced in a similar fashion.
Okay. Sir, 1 more thing, sir, on the receivable front. So you've said that your receivables have increased to around INR 18,000 crores. Could you let me know how much of that is more than 45 days? So because this overdue would actually be earning your [indiscernible] surcharge for the quarter, right? So how much is more than 45 days right now?
See, I -- the number which I gave you, that's beyond 45 days.
So INR 18,000 crores?
Yes.
Okay. Okay. So currently, INR 18,000 crores.
Yes. It was basically, let me just say that. As on 30th of March -- 31 March, this number was INR 9,588 crores -- around INR 9,680 crore. It has become INR 18,000 crores.
Okay. Okay. So 1 more, if you could tell me. For FY '20, have we booked any income from SCED? There's a security economic dispatch scheme that was announced. Have we booked any income for that for this year?
Yes, yes.
So what is the amount?
SCED income in the current period, it is around INR 328 crores, current year.
One more question, if I may. Sir, are we still going to see an advance to railways? If so, what is that case? Do we still have any advanced payments that we would continue...
No advances pending with railways.
The next question is from the line of Pulkit Patni from Goldman Sachs.
Sir, regarding this Vivad Se Vishwas Scheme, was this the number which was earlier reflecting in our contingent liability and because the amount is quite large, why would we not think that this is worth contesting rather than just paying it directly to the tax official?
Pulkit -- this is a difficult question you are asking. But you know that we have got 1 benefit around this scheme, which we have gone. We have applied to the government. It is pertaining to the years -- so many years, 10, 12 years. And there's around 32 cases. So it will take long to settle those cases. Now this has been settled once for all.
Okay. So this effectively means all our direct tax disputes till date, by and large, are settled after this INR 2,661 crore?
Yes. Only -- that is only 1 case is there, which -- where the amount is around INR 300 crores demand, whereby they -- as per the guidelines of the income tax department, it is not payable. But they are just examining it. In our view, in that case, there should not be any outflow.
The next question is from the line of Rahul Modi from ICICI Securities.
Sir, just a couple of quick questions. Sir, I just wanted to know the status of the thermal plant THDC was putting up. Any progress there? Has that been tended out or construction activity has begun there?
Okay. Let me handle this. Say this, as far as Khurja plant of THDC is concerned, the main plant's boilers and turbines, orders have already been placed. And the BOP packages are in the process of awards and the actual construction has already begun in that site.
Okay. Perfect. Sir, 1 more question. On the solar projects that you had mentioned, you mentioned a couple of -- around 2,000 something projects under construction and another 2,000 something under various stages. So can you just elaborate on that number? We missed that while you were reading it out?
Yes. Let me see this number. Around 2,064 megawatt is under implementation. Just a minute. 2,298 megawatt of solar projects are under implementation and 2,064 megawatts under various stages of pending.
Okay. This is all under -- this is -- is it under developer mode or if you are the owner of the project?
Owner.
Okay. And -- okay. Sir, just 1 clarification question. So out of the INR 2,660 crores Vivad Se Vishwas, you've already booked INR 1,800 crores in your P&L. And INR 883 crores is the loss that will accrue to us, which is showing in the P&L ID?
Yes.
Thank you. Ladies and gentlemen, due to time constraint, we'll take this as a last question. I would now like to hand the conference over to the management for closing comments.
Thank you very much [indiscernible] in the NTPC financials, and we will continue to do to the best interest of our investors. Thank you.
Thank you. On behalf of Antique Stockbroking, that concludes this conference. Thank you for joining us, and you may now disconnect.
Thank you.