NHPC Limited (NHPC) Earnings Call Transcript & Summary

Ladies and gentlemen, good day, and welcome to the Q2 FY '22 Earnings Conference Call of NHPC Limited, hosted by Elara Securities Private Limited. [Operator Instructions] Please note that this conference has been recorded. I now hand the conference over to Mr. Rupesh Sankhe from Elara Securities Private Limited. Thank you, and over to you, sir.

Yes, good evening, everyone. On behalf of Elara Securities, we welcome you all for the Q2 FY '22 Conference Call of NHPC. I take this opportunity to welcome the management of NHPC represented by Mr. A.K. Singh, Chairman and Managing Director; Mr. N.K. Jain, Director Personnel; Mr. Y.K Chaubey, Director, Technical; and Mr. R.P. Goyal, Director, Finance. We will begin the call with a brief overview by the management followed by Q&A session. I will now hand over the call to Mr. A.K. Singh for his opening remarks. Over to you, sir.

Thank you. Good evening, friends. The NHPC Board has adopted half yearly financial results for the period ended September 30, '21. [ This ] meeting held on November 11, '21, and the same has already been communicated to [ ebsengil ]. By now, I hope you all would have got chance to go through the quarterly and half yearly set of numbers. First, I will just touch upon major highlights and then detailed analysis of the results shall be discussed by our Director of Finance, Sri Goyal. Brief highlights of the financial year results and the important updates of the company our agenda. During half year FY '22, our power systems have achieved generation of 17,155 million units, which is 17,526 million units generated in corresponding period of the previous year. This is mainly due to lower worker availability and the complete shutdown of Sewa-II power system with September 25, 2020 where restorative work is under progress. Our PF for per half year FY '22, stand at 94.86% against the current funding previous period PF of 91.32%, which is about 4% higher. During half year FY '22, company has earned revenue from operation of INR 4,916 crores as against INR 5,073 crores in the current funding period. During half year FY '22, company has earned PAT of INR 2,217 crores, which is INR 2,021 crores, of corresponding period which is up by INR 193 crores at a 10% growth [ met ] and physical front as we have been sharing the active [ per seta valk next to vantaj ] lower project site is going in full fledge manner. I'm glad to see that. I visited the site on 29th 30th and October '21 to review the actual progress that site, and had comprehensive meeting with head of the project and all engineers and contractors working in site. I'm very much satisfied with the pace of work, and I'm very hopeful that we can commission [ 2 ess ] by '22. The full commissioning of the project [ expected by 2023 ]. We have already shared that Unit 1 and 2 of [ RSD 2 hydroelectric project ] we have got synchronized on 28 and 29 April '20 [ set for the ] Further in the [ murtrian fora policy 2 NT ] project, we will also resynchronize as agreed on 6 and 7 July '20 [ is the 30 ]. We are trying to complete the remaining tunneling work with the help of tunnel-boring machine and the [ deal blast ] method, both to complete the project by March 2023. In respect of Dibang 2,880 megawatt forest clearance Stage II approval has been granted, and we expect approval towards reinvestment activities of INR 1,600 crores have been obtained. Further [ Dag PPA memo ] based on the cost estimate at August '20 price level has been cleared by CA on June 23, '21. As per the direction [ and member ] MOP, cost estimate have been updated on May '21 price level. [ Harcas ] and trading of [ harcas ] project has been cleared by CA on July 30, '21 and August 16 '21, respectively. The estimated cost of the project is to INR 32,672 crores, which includes [ flood mortison ] cost of INR 7,237 crores and the estimated levelized tariff would be INR 4.73 per unit. As we have already shared, [ NHPC ] has acquired Jal Power Construction Limited, JPCL project, 120 megawatts in Sikkim through NCLT route. The government of India March 30, '21 recorded investment approval for the acquisition of JPCL. The balance work of the project will be completed in the [ the year 30th month ]. Letter of award has been issued [ and the circle balance ] has the mechanical work and the balance [ inwit work ] on June 20, '21 and September 22, '21 respectively. [ Srendi ] tender is under process in respect of the balance intervals. The estimated cost of the project is INR 938.29 crores and estimated levelized tariff is INR 4.37 per unit. In respect of the Ratle hydro project 50 megawatts an MOU was signed on February 3, '19 for implementation to the JV between NHPC and JKSBDC. The supplementary MOU to the initial MOU has been signed on 3 January 21, in line with the recommendations of the PIB. Ministry of Power [ where ] letter dated February 11, '21 has conveyed the government investment [ say clon for implementation ] of the Ratle hydroelectric project at the amount of INR 5,282 crores. The levelized tariff of the project is INR 3.92 per unit. The new JV that is Ratle Electric Power Corporation Limited has been incorporated on June 1, '21, in which NHPC holds 51% share. Tendering for [ the NPC quarter ] for the project is in progress. Apart from [ evo ], NHPC is working on 3 new projects in J&K, [ mainly Sala port ] 1856-megawatt [ Woody 1 Estes ] 2,240 megawatt, [ dulatise 2,260 megawatt and Dugar project 500 megawatt in Himachal Pradesh.] [ All 4 of the ] hydroelectric project are [ liable ] to be taken over from JKSPDC, shortly, and the balance of approval required has been initiated. Dugar [ odi 1 SA 2 and Dugar lises 2 ] are under the PRSA. Dugar project has received 20 out of [ 25 ] total [ 26 in on the ] expected to be granted TEC shortly. Tender for the civil works for Dugar project have been invited. All land [ pre DPS chapter of UDI 1 sec 2 ] have been submitted and EIA and EMP [ study of ] environment [ pedence ] is in progress. In respect of [ Dugar test is 2 ] project [ consists of 6 number of preservige at prasad ] is underway and the EIA EAP studies for environment [ sedense ] is in progress. Presently, NHPC [ pare ] subsidiary, CVPPPL, [ has begin in ] 2 projects that is PakalDul, 1,000 megawatt and Kiru 6 24-megawatts in Chenab [ bising ] in J&K.. Further, PIB approval of 540 megawatts is expected [ farther ether ]. Tomorrow, the PIB is going to be discussed in the finance ministry. NHPC business development team has been in touch with the Indian Embassy Kathmandu, Nepal, and some of the government of Nepal [ organization ] for development of hydropower schemes. We have already signed an MOU with HIDCL, a government company of Nepal, for development of hydro power currently. Our designers have already reviewed the data [ meta level ] in respect to several [ sinta ] by the Nepali associates and help on [ the wear 30 ] 750 megawatts and [ SR SEB ] for 50-megawatt and the West [ eti ] River in [ kamalevetin ] in Western Nepal to be the most promising in terms of the techno-economic availability. Further, [ the wertawerg hot ] 500-megawatt at the India Nepal border [ near Tenepul ], which is most variable project is long held out due to requirement of Mahakali [ enu ] from the government of Nepal. To take up further discussion and the [ schemes ] a meeting is being convened with His Excellency the Prime Minister of Nepal and other key stakeholders of government of Nepal for business [ prospects and bianuicy ]. I shared earlier, that NHPC has been awarded the state of Telangana, Odisha, J&K for development of floating solar projects under [ and from ] mega enabling [ repower pal sima hemenali ] [Technical Difficulty] [ Ever we sign himsa for mig ] for 500 megawatts on July 20, '20. The project will be doubled by a joint venture between NHPC and GEDCOL. In principle approval has been obtained from [ eminari on 8 ] December 20, purchasing of 100-megawatt project solar first phase. [ engenali dewat ] by the proposed joint venture company under solar park scheme. [ Dar DPR of the team ] has been prepared and is in the final [ nation ]. NHPC had backed 1,000 megawatt capacity solar power project and [ provided their ] funding of INR 44.9 lakhs per megawatt in the [ HP a 2 ] Phase 2. [ trial 3 in the edy was alson ] conducted by the Indian Renewal Energy Development [ at hart edida ] on September 23, '21. Tending for the EPC contract is in the process. Power purchase agreement has been signed between NHPC and the state DISCOM, GRIDCO on 19 May '21, 40-megawatt solar PV project in Ganjam District and levelized tariff of INR 2.75 per unit, which has been adopted by the Odisha Electricity Regulatory Commission by an order dated [ 15 ] September 21. [ Form titecontet ] has also been signed with Tata Power Solar System [ limited 15 ] September '21. Further in-principle approval has been obtained from MNRE on 8 December '20 for setting a 50-megawatt floating solar power project in [ Dela ] under solar power scheme. Tender for EPC [ content yet to finalize ]. NHPC has CapEx now for INR 8,000 crores to INR 10,000 crores in the coming years, considering its project pipeline. NHPC is also in process for creating 2 separate JVs, 1 development of renewal energy, small hydro and the green hydrogen projects. Other [ farsighted ] business venture including [ the manuset ]. As part of the new technology [ NHPC green hydrogen ] [Technical Difficulty] and the [ project plan includes hybrid projects, auto mobility in cargila tember ] and fuel cell pilot project [ Milay ]. This is all from my side. And now I request Director of Finance, Sri Goyal, to discuss financial results in detail. Thank you.

Good evening, friends. I'm going to share with you detailed quarterly and half yearly set of numbers with this detailed analysis. NHPC Board has adopted [ quarterly financials ] for the period ended 30th September, 2021 in its meeting held on 11th November, '21, and the same has already been communicated to exchanges. Brief highlights of the financial results and important updates on the company are [ agendas ]. During our period ended 30 September '22, our power systems have achieved generation of 17,155 million units as against [ 17,426 ] million units generated in corresponding period of previous years. During the second quarter, our power systems have achieved generation of 9,912 million units as against 9,417 million units generated in corresponding period of previous year, which is about 5% higher. That is by 495 million units. Our PAF for our period '22 stands at 94.86% against the corresponding previous period PAF of 91.32%, which is about 4% higher. Our PAF for second quarter FY '22 stands at 98.27% against the corresponding previous period PAF of 91.66%, which is, again, about 7% higher. For half year '22 company has earned the revenue from operations of INR 4,916 crores as against INR 5,073 crores in the corresponding previous period. During Q2 of FY '22, the company has earned revenue from operations of INR 2,745 crores as against INR 2,554 crores in the corresponding previous period, which is about 7% higher. The increase in revenues is mainly due to increase in [ gen desa ]. Other income for half year '22 is for the order of INR 374 crores as against INR 512 crores during corresponding previous period, which is about 20% lower. This is mainly due to decreasing dividend income by INR 208 crores in current half year, which is partly offset by increase in [ ter from sesa ] by INR 112 crores. Other income for Q2 FY '22 is of the order of INR 171 crores as against INR 426 crores during the corresponding previous period, which is about 60% lower. The main reason for decrease is dividend income by INR 290 crores, which is partly offset by increase in [ legtomosense ] by INR 102 crores. During half year '22, the generation expenses have come down from INR 604 crores to INR 572 (sic) [ 578 ] crores, saving over the INR 26 crores, which is mainly due to lower quarter sales on account of lower generation in [ genkey ] processes. During Q2 FY '22, the generation expenses have gone up from INR 313 crores to INR 316 crores, saving of INR 3 crore marginally. During half year '22, the employee costs have come down from INR 670 crores to INR 623 crores, that is by INR 47 crores. That decrease is mainly due to [ supernet to ] employees, which is partially offset by [ increases to increment ] promotion, et cetera. During Q2 FY '22, the employee cost has come down from INR 344 crores to INR 306, meaning thereby a saving of INR 38. The decrease is mainly due to [ supernet to ] employees. During half year '22, there has been decrease in finance costs from INR 293 crores to INR 268 crores, the decrease [ rate is INR 24 crores ], which is mainly due to change in rate of interest by INR 80 crore and decreased due to [ repayment of loans rate ] INR 17 crores. During Q2 FY '22, there has been decrease in the finance cost from INR 146 crores to INR 134 crore, a saving of INR 12 crore, which is mainly due to change in the rate of interest by INR 3 crore and decreased due to repayment of loans by INR 8 crores. During half year '22, the depreciation and amortization expenses have come down from INR 663 crore to INR 559 crore, a decrease by INR 104 crore. This is mainly due to [ completion ] of total years of life of dista pipe are [ isisin ] in FY 2021. And an asset of the [ isisin ] in caliber esersy powers [ isisin ] in current half year, which has been accounted as finance lease. During Q2 FY '22, the depreciation and amortization have come down from INR 333 crores to INR 280 crore, reduction by INR 53 crores. This is mainly due to completion of 12 years of life of [ dista pipe ] in FY 2021 and [ a disma robison del 53 ] of system in current quarter accounted in finance lease. During the half year '22, other expenses have grown up from INR 593 crores to INR 595 crores. During Q2 FY '22, other expenses have come down from INR 319 crores to INR 283 crore. This is mainly due to decrease in [ nominal ] expenses INR 14 crores and increase in mark-to-market loss on derivatives INR 17 crores. During half year FY '22, no exceptional item has been reported. During the corresponding previous period [ an excess ponlight ] of INR 195 crores on account of onetime [ COVID effect was positive 2 base ] due to impact of COVID-19. During half year '22, we have earned PAT of INR 2,217 crores vis-a-via INR 2,021 crores of corresponding previous period, which is up by INR 196 crores, which is around 10% increase. And the reasons for decrease rupees in the line items we have just discussed in the following paragraphs. During Q2 FY'22, we have earned PAT of INR 1,075 crores vis-a-via INR 1,299 crores of corresponding previous period, which is up by INR 6 crores. [ 7 ] margin increase and the results for decrease/ increase in the line items, we have just discussed in the following paragraphs. During half year '22, the incentive position are [ as endus ]. [ We are on ] secondary energy, we have just [ not done any onto amount of ] secondary energy during current half year, wherein it was INR 22 crores in last year's half year. The results for the same is [ non overdue vorta ] in first half of the year. PAF-based incentive is current period INR 313 crore as against INR 285 crores in corresponding period of previous years. Deviation charges are INR 84 crore in current half year, as against INR 79 crores in the corresponding period of previous year. So total incentive in current half period is INR 397 crore as against INR 387 crores corresponding half year of previous year. Incentive position for the quarter is [ enders ]. Secondary energy 0, which was INR 23 crores in last year -- last year's second quarter. PAF incentive during current second quarter is INR 178 crores against INR 137 crores in last year's second quarter. Deviation charges are INR 46 crores against INR 45 crores in previous year second quarter. So for the quarter, total incentive is INR 225 crores as against INR 204 crore in last year's second quarter. CapEx during half year '22 is INR 1,861 crores as against INR 1,194 crores in the corresponding period of previous year. Members of the company invest meeting held on 29th September '21, had approved the payment of final dividend at the rate of 3.5%. That is INR 0.35 per equity share in addition to interim dividend at the rate of 12.5% resulting in total dividend rate of 16%. That is INR 1.60 per equity share on the fair value equity share INR 10 each for the financial year 2021. The anticipated cost of Parbati II power station INR 9,898 crores, out of which we have already spent INR 9,261 crores till September 2021. The estimated [ levelized tariff ] based on the anticipated [ cost is ] coming to INR 5.58 per unit. The revised cost of [ Sewa II ] now stands at INR 19,992 crores, out of which, we have already incurred INR 14,210 crores till September 2021. The estimated levelized tariff based on the anticipated costs is INR 5 per unit. Other major highlights of the company are as [ in des ]. On the realization front NHPC has received INR 4,239 crores from the [ benefit and ] sale of energy during half year FY '22 as compared to INR 4,069 crore in the corresponding period of previous year. Trade receivables as on 30th September, '21, stands at INR 3,428 crores as against INR 3,206 crores as of 31st, March '21. The major receivables are as [ en das ]. J&K, INR 1,248 crores, West Bengal INR 934 crores, UP INR 168 crore, Punjab INR 106 crores, Haryana INR 69 crores and other [ fot INR 903 crores ]. But as on date, our total dues have been reduced by around INR 1,000 crores, because we have realized from West Bengal, INR 700 crore-plus amount during this month and from others around INR 300 crores. So in addition, an amount of INR 118 crores is receivable on account of surcharge. This is all from my side. Now the phone is open for question and answers.

[Operator Instructions] The first question is from the line of Aniket Mittal from SBI Mutual Funds.

My first question was on Parbati II. Just to understand a bit on the execution front, II think around 3, 4 months back, there was around 1.3 kilometers of tunneling work that was remaining.

Sorry to interrupt you, there is a lot of background noise from your side.

Sir, my question was on Parbati-II, and [ like I said ] 3 to 4 months back you had mentioned that around 1.3 kilometers tunneling work was remaining. So if you could just provide an update on that? How is the work over there progressing? In terms of the current pace of tunneling activities, when do we expect the overall tunneling work to be completed and the second line to be completed? So any granularity that you can provide on the execution front, that would be helpful.

So in Parbati-II progress are going very well. But all of a sudden from our client from where we're doing the [ drift last ] method, around 7,000 to 8,000 liters per minute water came from the hill and it is still continuing, but we have treated that area and just we have rerouted the tunnel and they're going up from the other face and the [ ativia ] side also the work is going on. So now it is less than 1,200 meters. And whatever the disturbance happened last 3 months because it's a huge quantity of water and the more [ about ] they can see water has come and the other face from where there's no gravity flow is here. So have to pump the water to outside but the treatment has been completed, and we have rerouted the tunnel slightly as the progress is going on. And we have already planned some different type of shuttering for lining walls. So 1, 2 months is not a big thing. We'll make up and as the date is given for the March 23 commissioning, we'll adhere to that. So work is going on from the [ volta faces ] now.

My second question is just to understand on the renewal front, taking the number of projects that we signed and are moving forward [ with this Line 2 tender ]. Just to get a near-term visibility, if you could let me know what is the quantum of projects for which we have signed the PPAs and subsequently awarded the EPC contracts?

For the PPA, we have signed only 40-megawatt PPA in case of Odisha as INR 2.75 [ pesa ]. And we have already forwarded some tender. We have done the [ reversal ones ] also, one in Rajasthan for 600 megawatts and we are still under discussion with LNP [ with a ] low bidder in there. And 1,000 megawatt scheme in the CPSU, for which the tender are likely to come within 2, 3 days. So we are waiting for that tender also where we're getting the [ ovelty ] from the MNRE and other outlooks. We are already in the pipeline of going for the tender, but around, say, for 800 megawatts like this and we are keep on doing it in the solar because we need to do some solar. So for the solar [ scheme ] some prices have gone up, some taxes as the thing. So now we are not getting in the same range, which used to get INR 2.40, INR 2.30 [ pesa ], the rates are slightly higher. So we are under discussion. And it's not for NHPC only, it's for everyone, whether it's [ SEKI or NTPCR ]. As soon as they're bidding on there they're getting the same [ result ]. So we are trying and discussing with the administration [ and minister ] also if some pool tariff is designed for the PPA. So already 1,200-megawatt tender is very short in the pipeline, and we are moving ahead and we will keep on doing the solar as per our capacity.

One question on the receivable front, you mentioned that around INR 1,000 crores of your receivables have come down largely from money from [ misinguit ]. So the balance sheet at the end of September, we were roughly around INR 3,900 crores, which is now our current receivables a bit closer to INR 2,900 crores to INR 3,000 crores, right? if that's my understanding is right. So this number is still pretty high. I think it will be close to 120 days or so. So are there any further, let's say, money that you see coming in from an end of your perspective? Where do you think this receivable will [ go up ]?

Actually, balance sheet is showing little bit higher amount because we have done bill discounting with our client. So for accounting purposes, amount received from discounting is being shown in total loan, and the other side, it is continuous [ settle ]. Actually, we have received [ a kind of a leap ] from our clients so we're discounting. So we have actually realized but it is showing due to accounting purposes. Higher number is been shown as higher because of accounting purposes.

So what are your current trade receivables right now, then?

Our current trade receivables are -- after including bill discounting, these are INR 2,500 crores plus amount as on date.

Are there any further [ wind ] that you see coming in till the end of the year? How do you see that trending? Could that number still be higher?

We are hoping to realize around INR 10,000 crores during the current [ conciliate ] from all the clients as a whole. And our receivables certainly lower than the last year's receivables.

The next question is from the line of Anupam Goswami from B&K Securities.

My question is on the regulated equity. What is your regulated equity right now? And what is the expected changes in the next year?

Yes, Anupam, basically as of now, our regulated equity is INR 13,000 [ ecrocs ]. And going forward, when the Subansiri and Parbati-II will get commissioned, our regulated equity will be [ roc ] progressing as per the project cost, completed cost of the project. You can refer our presentation also where we have shown progressive regulated equity down the line 4 to 5 years.

It will be around INR 21,000 crores on [ confidant distuplay ].

Okay. Okay. So will that be completed -- expected to complete by the next year?

Yes. By end of March '23, we will commission Parbati-II, and we will commission 2 units [ of Sewa III in August '22 ] and complete project, all of the [ Sewa III ] will be completed by August '23.

[Operator Instructions] The next question is from the line of Abhineet Anand from Emkay Global.

So I have this question that any project that you take to NCLT, it's fair to assume that the cost becomes a part of the regulatory costs, right?

Yes, Abhi, can you come again?

Any project that we take the [ line cove 100 or the what ] power that we are taking through NCLT process. For that will be on a regulated basis, right?

Yes, yes. Absolutely.

So it is fair to assume that whatever cost we incur is for the regulatory projects only [ for that and doing everything in terms of that's off ] ], right?

Yes. And that will be funded in 70/30 [ base you ].

Yes, [ and when you finish the project ] then also you type of maintain that 70/30 or as a whole that is [ 2 on 10 ]?

[ In the hadred ] everyone will go for 70/30 only.

Okay. And secondly is what are CapEx [ whole in the start real ]?

Abhineet, your voice is breaking. I think you are traveling somewhere. So can you park your vehicle and talk to us? Your voice is breaking, we are not able to hear you.

[ I can speak clearly ] but maybe the line is not good. CapEx for [ 1X what has been ] And secondly, for the full year, I think [ the peat ] roughly at INR 9,000 crores.

[Operator Instructions]

I understand your question, you were asking about the CapEx of INR 9,000 crores. I want to tell you here a INR 9,000 crores, we have the capacity around say, INR 3,000 crores for the balance sheet for the hydro in joint ventures. So for hydro JV, you must be doing all this balance work now financial year. About the solar, we are trying our best and going for the other tenders also, so that this you can receive around 70% of the total loan. It is not possible to achieve all this INR 9,000 crores, but we try at is 80%, 85% till the end of the financial year [ to save it ]. And the major reason is that we have gone through this COVID period, where we have been unable to do the [ things ] and now some increases in taxes and duties. In the case of the solar, it is beginning we're coming in some little bit on the higher side, we are finding it difficult to get the PPA. So that is the reason we are in discussions with the [ minari ] and the Ministry of Power to resolve some issues so that the [ problems with ] development can also be taken up at the top [ here ].

Okay. And sir, when you mentioned the Rajasthan Solar project and [ keveen that you won ]. What exactly is our -- we will be getting steady margin in that or how is that project [ going something for us ]?

It is our own project. This will owned by NHPC, not on [ an agency ] basis or commission basis.

So basically, fair to assume that it will be on our goods and whatever profit, whatever [ we make will be ] on our group only?

Also right.

And for PPA, what is the [ state of PPA where you are ] in discussion with the [ squam ] for all of it?

APC tendering yet to finalize, we are negotiating the rest with the L1 contractor bidder. And after that, we will open the rate to our benefit, and then we will talk about PPA.

So it is fair to assume that once you [ start to ] discount this one, agree, then only will you go after project?

Yes.

Yes.

And lastly, sir, I think the intent that you said -- I think the secondary energy, I think for 0 for both the units, right?

Yes. Secondary energy for half year and quarter is 0.

And on the PAF side, what has been [ going on with ] the water, I need that.

Telling there is a lot of less water during the first quarter, and we have almost hit 350 million units during the second quarter. But with the increase in this rain, we [ haven't been covered ] it, and if you consider today, we have already crossed more than 130 million units more than the last year. So we [ are solid ] in the second quarter, very much [ solid than ] the first quarter, we met the second quarter, did well. And because we have already the plant [ activity ] factors is 94.06 in comparison to the last half year. So it is improving. And we are quite hopeful this year, we get a good winter's rain and snowfall and make [ gross ] even INR 26,000. We're waiting for the [ cold ] because of all the machines are ready and we have all power system has run very beautifully during this period with the [ ability afforded ], except 1 120-megawatt Sewa-II. Sewa. PF for current year is INR 313 crores against INR 285 crore in last year. So there's increase of INR 28 crores we have built incentive. For the fourth quarter, it is INR 178 crores for current year and INR 136 crores during last year, second quarter. So there is also increase of INR 42 crores.

[Operator Instructions] The next question is from the line of Rupesh Sankhe from Elara Securities.

Sir, a couple of questions. Firstly, on the CapEx guidance, what kind of a capital -- CapEx we are looking at in the next 2 to 3 years? And what are the equity required for the ongoing project? That is the first question. Second is in terms of renewable projects. What is the status? And what kind of -- is there any large pipeline which we are looking at in the next 2 to 3 years? And third is I would like to know more on the Dibang projects. What is the progress there?

I think on the Dibang project good news that finally, the court has agreed with what the State and NHPC has done with some change in the award because some faulty award was there, and it took almost a year to discuss with the local people and state government and NHPC. So finally, we have come with a consensus of some [ quan ]. And finally we have already paid out INR 230 crores in the account of the state government [ DC account ] and they are going to disburse this amount. The lower Dibang, basically where all the components are coming at projects like our dam, or for housing policy, that part is 100% is fine. The other part also around 95% people has agreed to accept the rate, and we are just raising a demand letter towards NHPC for making the payment for the balance 5% where the total quantity of land, you can say not more than 100 acres out of 5,000 acres. It is very, very less. And the court will decide how these 2 things are settled. So it is going well. And hopefully, we will get the work started very soon.

Regarding CapEx during the next 2, 3 years is, we have plan to make CapEx of around INR 8,000 crores every year in the next 3 years. So equity part will be around INR 2,400 crores for each year. So we have -- every -- an amount for every year equity in CapEx.

Yes. Sir, third question is on the renewable side. Is there any large pipeline project which we are thinking of, sir?

Actually, we will keep on getting a renewal, there's no limit for us. Since we are waiting for the 1,000-megawatt CPAC scheme, the tenders are going to come very soon. They were already making [ a temporary arrangement ] on another 1,000 megawatts, if it's 2,000 megawatts, we'll [ match with our capital the thing ]. So we have not kept any limit in [ mid ], but we definitely want to add at least 5,000 megawatts by 2025.

As there are no further questions, I now hand the conference over to Mr. Rupesh Sankhe from Elara Securities Private Limited for closing comments.

Thank you, sir, for giving us an opportunity to host this call, and we also thank all the investors and the analysts for joining this call. Thank you so much.

Thank you. On behalf of Elara Securities Private Limited, that concludes this conference. Thank you for joining us, and you may now disconnect your lines.