NHPC Limited (NHPC) Earnings Call Transcript & Summary

Ladies and gentlemen, good day, and welcome to the NHPC Q2 FY '23 Earnings Conference Call hosted by Elara Securities Private Limited. As a reminder, all participant lines will be in the listen-only mode, and there will be no opportunity for questions after the presentation concludes. [Operator Instructions] Please note that this conference is being recorded. I now hand the conference over to Mr. Rupesh Sankhe from Reliance Securities Private Limited. Thank you, and over to you, sir.

Yes. Good afternoon, everyone. On behalf of Elara Securities, we welcome you all for the Q2 FY '23 Conference Call of NHPC. I take this opportunity to welcome the management of NHPC represented by Mr. Abhay Kumar Singh, Chairman and Managing Director; Mr. Rajendra Goyal, Director of 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. Abhay Singh for his opening remarks. Over to you, sir.

Good evening, Sankhe. The NHBC Board adopted half yearly financial results for the period ended 30th September ‘22 in its meeting held on 10th of November ‘22, and the same adored been communicated to extend. By now, I hope you all would 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 agent shall be discussed by our Director Finance. Well. if finance of the financial jets and important updates on the company are as tendered. During first during the half year FY '23, our power stations have achieved generation of 18,148 million units. We see 1,155 million units generated in the corresponding period of the previous year, which is about 5% higher, that is 893 million units. This is mainly due to the higher water availability and re-station of Seat Power Station, which was completely shut down, which effect from 25th September 2020 till 1st February 2022. Our Pay half year FY '20 stands at 99.23% against the corresponding previous PA of 95.7%, which is about 4% high. During half year FY '23 company earned revenue from moration of INR 5,482 crores, rise against INR 4,916 crores in the corresponding previous year -- previous period. During half year FY '20, company has earned PAT of INR 2,483 crore vis-a-vis INR 2,217 crore of corresponding period, which is up by INR 266 crores, that is 12% approximately. On physical -- and we have been saying the active construction work at once the lower project site is going on full thing. Some of the major milestones have been completed towards commissioning of the project. Alteproject hit by flood and extended monsoon in the last 2 months. But I am very hopeful that we can commission 2 units by June 23, the full commissioning of -- that is all units of the project we expected by March 24. In respect of the 28 projects, the pace of tuning work has been hampered due to the formation of v and into quarter from Tanase, which flooded the tunnel, several select events occurred at this front during previous months. The world has already been assumed, we are trying our best to complete the remaining telling work to complete the project by December 23. In respect of Dibang Multipurpose Project 2,880 megawatt, PIB meeting held on 11th October 22, recommended the proposal regarding implementation of the project by NHPC for consideration of CCA. duct material for CCA note have been submitted to MOP on 20th October 22. The extruded cost of the project is INR 31, INR 876 crores and estimated levelized a fees to 4.46 per unit. As shared earlier that NHPC has acquired Lanco Sister Head of our Limited -- these are 6 projects, 500 megawatts through NCLT estimated cost of the project is INR 5,748 crores, out of which we have already incurred expenditure of INR 1,819 crores in September 22. The estimated levelized tale of the project is it INR 4.07 per unit, restricted commissioning schedule of the project is July 25. Further, we are in the progress of merger of LTHPL, with NHPC and Itagently under examination by MCA. As we have already shared that NHPC has acquired another project, Gel Power Person Limited project that 120 megawatts in '16 through NCLT -- the estimated cost of the project INR 938 crore out of it, we have already incurred expenditure of INR 334 crores till September 22, and estimated levelized a 4.37 per unit. Further, we are in progress of the process of merger of PC with NHPC. The project is expected to be completed by August 24. The Ratle project UT of J&K 850 megawatt project is being developed by yearly hydroelectric Popson Limited, a joint venture of NHPC and JKSPDC, in which NHPC was 51% share. The contract of turnkey execution of the project has been awarded to Mr. mega Engineering and Infrastructure lined on 18th January 22. On altimeter of India -- let the foundation stone of the project on 24th April 22. The stilted cost of the project is INR 5,282 crores. The work has already been started at site, and we have incurred expenditure of INR 110 crores in September '22. The levelized taff of the project is 392 per unit. The project is expected to be completed by February 26. Sergent, NHPC through its subsidiary, CPPL executing 3 projects in China Basin UT of J&K. Construction pivot of Parbati project, 100 megawatts, and QHC project 624 megawatts is progressing well within the overall stun of the completion, that is July 25, and we have incurred expenditure of INR 2,517 crores and INR 815 crores till September 22 on these projects, respectively. Further uneven time inside of India led the foundation stone of the hydroelectric projects, 54 megawatts on 1 appeal, civil work package stands awarded and work has been work also been started at site. The project will be completed by November 26. The estimated cost of the project is INR 4,526 crores and instituted levelized fee for Page 44 per unit. As we have said that some of the largest hydroelectric projects in Xiang and Shanxi Vasin have been allotted to NHPC by initiate of Power on 22nd December 21. The project in Shanxi basin 32,000 megawatts Swans upper and 1,800 megawatts Subani middle shall be developed by NHPC on a stand-alone basis, while 10,000 megawatt upper Yang and 2,700 megawatts Shang lower in Shanghai are to be developed in JV Water. Apart from above, NHPC working on 3 new projects in the UT of J&K we balco1,556 megawatts, 1 Stage 2 240 megawatts Geratetage 2 260-megawatt and Dugar projects 500 megawatts in math per day. In respect of our port agreement on handing over, taking over has signed between NHPC and JKSPDC. 11th of December 2021 and NHPC taken over the project. Ministry of Power has recorded investment approval on 1 July 2022 for incurring expenditure on pre-investment activity for an amount of INR 973 crores at a Noub21price level versus obtaining first clinches been initiated. DPI of Onstage was submitted on 18th of May, 2022, and accepted by CEO of Gamesa in the meeting held on 20th June 22. IAP study -- for environment clients aging, even out of total 23 kilns have been obtained. Further process for opening first glance, which also infer there. In respect of Blast Stage 2 project plans of 7 out of 9 numbers of chapters has been received and IMP study of environment claims median focus. No first class required in this project and NOC has been obtained from first department. Further defense claims have already been accorded by Ministry of Dipen. DPR Dugar project has been canceled by CA on 26 apl22, tender for EPC contract for the Dubang project, gender process, and we shall be 85 once we get the equity PICC claim for the implementation of the project. Bulk power supply agreement has been signed between Lencois hydropower project limited and satiate Power Distribution Company Limited at Riu on 21st July 22 for power generated from 500 megawatt Dista680 project for a period of 40 years from COD. We have inked an MOU with the investment Board of Nepal at Kathmandu, Nepal on 18th August 2022 for development of 750 megawatts West City and 450 megawatt Visa hydroelectric projects. NHPC also signed MOU with PTC India Lite for a power sales augment of these projects on 30th August 2022. Further, the discussions for implementing 48-megawatt Fukuranali project in Nepal are in finalist. HPC Renewable Energy Limited, a wholly owned subsidiary of NHPC Litha signed MoU with government of Rastan on 24 August 2022 at New Delhi for development of 10,000 megawatts ultra-mega renewal energy power part in the state of Rajasthan. He back to 1,000 megawatt capacity solar power project at a viability gap funding of 44.9 lakhs per megawatt under CPSC scheme. Page 2, 23 in the U.S. auction conducted by India Renewable Energy Development of CT on 23rd September '21. Further EPC contract has been awarded for development of the project and transition line for some vacation to ITS station, along with a comprehensive operation and maintenance for 5 years. Our purchase agreement has been signed between Wendell Kansai Limited and the Paris Power Courson Limited. CALP solar power for year 2020 as P22 at a tariff of INR 6 per unit. Further, the project has been synchronized with the gad and commission Partly on in July 22. Cepitywill be added to be gradually the full capacity of 65 megawatts by 31st December 22. As we have shared earlier that NHPC has an intermediate awarded 200-megawatt ISTS-connected solar PV power project to 5 numbers of developers with a trading margin of 7 per unit. Out of 2,000 megawatts, 320 megawatts were awarded to Mr. Harada Engining products limited at Vecana, recently past commissioning of 153.6 megawatts and 112 megawatt of set project has been achieved on 14th and 20th September '22, respectively. Balanced capacity of 54.4 megawatts is expected to be commissioned by November 22. For balance capacity, land allocation and location, confirmation, transmission, connectivity, feasibility by CTU, financing agent supply order for mature balance and balance of system have been achieved by respective dig. -- this is also exploring to develop from fish projects in the state of Para risan Benataka, notepads and Maharashtra. We are conducting a study on the feasibility of certain projects like Mindanao Pitocin and K2 from Piscine 800 megawatts in multiples and also some projects in other states. NHPC annual CapEx plan of INR 850 crores approximately in the coming years, considering its project pipeline. This is all from my side. Now I invite Mr. Rajendra Goyal to discuss financial results in detail.

Thank you. Good evening, thanks. Am I audible? I'm going to share with you detailed quarterly and are set of numbers with the retail analysis. NHPC Board has opted Atelinancial just for the period ended 30th September 2022 in a meeting held on 10th November 22, and the same has already been committed to SNG. We highlight of the financial results and important updates on the company are agendas. During half year FY '23, our power systems have achieved tenders of INR 18,038 million visas INR 17,135 million generated in corresponding period of previous year, which is about 5% higher. In Miliatis 893 million. During the second quarter of FY '23, our power sessions have achieved generation of 9,980 million reserve 9,912 generated in the corresponding period of the previous year, showing marginal increase. Our half year FY '23 and said 99.23% against the corresponding previous period at F5. 74%, which is about 4% higher. Our PF for second quarter effort 3 stands at 99.7% against the corresponding previous period PAF of 99%, which is about 1% higher. For half year FY '23, company has earned revenue from operation of INR 5,282 crores as against INR 4,916 crores in that corresponding previous period, which is 12% higher. In absolute period, it is INR 566 crores. The increase in revenue is mainly due to higher generation amounting to INR 450 crores approach and increase in revenue from power trading business by INR 111 crores. During Q2 FY '23 company has R&D revenue from operation of INR 2,888 crores as against INR 2,745 crores in the corresponding Spero, which is about 5% higher. The increase in demons mainly due to higher generation and increase in revenue from power trading business by INR 7 crores. Increased revenue by -- on account of high gene to the tune of INR 137 crores. Other income for the half year FY '23 is of the order INR 32 crores, which is INR 374 crores during the corresponding previous period, which is about 11% lower. That is INR 42 crores. This is mainly due to decrease in net payment sarcasby INR 126 crores is our collection portion has been improved. Other income for Q2 F inventory is of the order of INR 115 crores is INR 171 crores during the corresponding previous period, which is about 33% lower to INR 56 crores. This is also mainly due to decision detrimental by INR 200 to -- during FY '20, the generation expenses have gone up from INR 50 crores to INR 637 crores. That is, which is mainly due to applicable to water sales in set of rate and skins. During Q2 effort index, the generation expenses have gone up from INR 364 to INR 367 crores, that is by INR 24, which is mainly due to applicability water sales per capital. During APF, the employee cost has come down from INR 624 t58crores. That is INR 25 crores. The decrease is mainly due to super national employees, which is partly offset by increased data impairment promotion, et cetera. During Q2 FY '23, the employee cost has come down from INR 106 crores to INR 291 crores, that is by INR 15 crores, and which is, again, due to supers partly offset by increase in DA, et cetera. During FY -- during the half year FY '23, there has been decrease in the finance cost from INR 68 crores to INR 244 crore. That is by INR 34 crores, which is mainly due to change in rate of interest by INR 11 crores and decreased due to repayment of loans by INR 16 crores. During Q2 FY '20, there has been decrease in the finance cost INR 134 crores to INR 1,074 -- that is by INR 27 crores, which is mainly due to change in rate of interest by INR 6 crore and deferred to repayment of loans by INR 8 crores. During half year FY '20 decrease, the depression and amortizing expenses have gone up from INR 55 crore to INR 571 crores. That is by INR 12 crores, which is mainly due to additional capitalize in certain power sessions. During Q2 FY '23, the depreciation and amortizing expenses have gone up from INR 24 INR 284 core. That is INR 4 crore, which is mainly due to additional capitalizing certain possesses. During half year FY '23, other expenses have gone up from INR 595 crores to INR 858 crores, that is by INR 264 crores. This is mainly due to increase in provision against impairment of investment in respect of lockup downstream hydroelectric or Corporation Limited by INR 106 crores. And fair value loss on financial sales amounting to INR 14 crores and increase in CSR expenditure by this crore, which is partly offset by a decrease in insurance extras by INR 17 crores. During Q2 FY '23, other expenses have gone up from INR 28 to INR 352 crores. That is by INR 69 crores. This is mainly due to increase in Cervalis on financial assets offer INR 38 crores and increase in R&M expenses, security expenses and Casa expenses, et cetera. During half year FY '23 net credit of INR 264 crores has been recognized in the books. Out of which, net impact of profits, INR 127 crore has been on the profit of the company. In other words, these INR 27 crores has been added in the profit on account of metadata. During Q2 FY '23, net credit of INR 138 crores has been recognized in the goods out of which net impact of INR 126 crores has been on the profit of the company. During half year FY '23, we earned profit after tax of pross2,483 crores with INR 2,217 crore of corresponding previous period, which is up by INR 66 crores. That is above 12%. And metals for decrease and increase in the line items we have just discussed in the foregoing paragraphs. During Q2 FY '23, we have earned profit after tax of INR 1,433 crores vis-a-vis INR 1,305 crores of cocooning previous period, which is up by INR 128 crores, that is about 10%. And the results for decrease and increase in the line items, we have just discussed the proving paragraphs. During half year FY '23, the incentive position is agenda. Our best incentive during first half of the FY '23 was INR 353 crores as against INR 13 crores in the corresponding previous half years. So there is an increase of INR 40 crores on account of PF wells in Mt. Dion account of division are around INR 119 crores during this current half year as against INR 35 crores in the corresponding previous period. Meaning, thereby, there is an increase of INR 34 crores in division charges. So our total incentive on account of these 2 incentive is INR 472 crores for current RBL as against INR 98 crores -- and in the corresponding period, half year. So there is an increase of INR 74 crores in the current half year. During Q2 FY '23, the incentive position is agenda. Based incentive, we have around INR 181 crores during this Q2 of FY '20 as against INR 117 crores in the corresponding previous quarter. So there is a marginal decrease of 2 INR 36 core. On account of division charges, we have earned INR 47 crores in both the quarters, meaning thereby in Q2 3 and Q2 offer dividend ages of INR 47 crore. So this is let CapEx of INR 2,646 crore has been incurred during half year FY '23 against that target CapEx of INR 861 crores for FY '23 on a consolidated basis. The anticipated cost to cart project is INR 11,135 crores, out of which we have already spent INR 10,025 crores till September 22. The estimated levelized tariff based on the anticipated cost 6.69 permit. The revised cost of one project is INR 19,992 crores, out of which we have already in INR 16,395 crores till September 22. The estimate level is there to own the interest-rate cost is INR 5 per it. Other major highlights of the company are agenda. On the license front, NHPC has received INR 3,800 crores from the benefit against sale of energy during half year FY '23 as compared to INR 4,270 crores in the corresponding period of previous year. Trade receivables at June 30 September 22, INR 5,850 crores -- INR 54 crore as has INR 4,621 crores as on 31 March 22. This improves INR 2,751 crores as Ambiata on September 22 as against INR 1,061 crores on 22. The net receivables out of total reported radicals as on September are classified agenda. Total reported disciples are INR 5,854 crore as on 30 September. Out of debt, unbilled debtors are INR 2,751 crores. So the amount of billets INR 3,103 crores. Out of this amount through bill discounting from our discounts, that is around INR 1, INR 114 crores. So leaving INR 1,989 crore net receivable, which is -- which comprises only INR 113 crores more than 45 days and the rest of amount, around INR 3,000 crores is less than 45 days’ net credit. So this is all from my side. Now the forum is open for questions and answers. Thank you.

[Operator Instructions] The first question is from the line of Apoorva Bahadur from Investec.

Sir, I wanted to check on the completion of Dam quantity in 2 week meters, how much has been completed and what is the total target.

Bahadur, the total DAM quantity is INR 2.56 lakhs. And out of that, 18.2 concrete has been already done. So that costs 89%.

Okay, sir. Sir, and what is the monthly run rate typically are over the last couple of months?

In a month, normally 60,000 called 12,000 once done. But that all depends upon the season, like in monsoon season concluding rate of confuting is low because it gets digital with the rain and other things. But now we have entered into the non-monsoon period that is are basically working period and it is going to increase.

So what would be the typical run rate during non-month period 12,000 cubic meter in the monsoon period?

It can be INR 40,000 -- you can take revenue of INR 40,000.

So 14 or 40?

40. From 12 months we expect to place concrete at rate of 40,000 cubic meters per month. Actually, it also depends that once we come and it becomes a first country and a lot of enforcement is required to put there. So if it is in force country, then it goes slightly -- I mean it becomes less. And if it is a mass competing, then total confetti increases. So it all depends that which location we are doing concluding in that particular month or that way.

Okay. Okay. Got it, sir. Sir, also on Parbati, on the tunneling work, if you can share some of the numbers, how much has been done in 2metersonpercentage terms? And what's the monthly run rate expected over there?

We can say that balance 560, around 550 meters there. Otherwise, HRT is completed. So we have completed 3.95 kilometer -- sorry, yes, out of 31.5 per kilometer. So 560 meters 560-meter is left out. And then it will be entire HIT will be completed. So this is on the estate part.

Okay. And sir, how much do we expect to do, say, every month in the small term season now?

Parbati, we are doing meters a day. So you can say 60, 70 meters per month.

Okay. So we'll take less than 10 months, 9, 10 months. problem to complete this?

Yes, you can say -- but is coming era improves because at agent, we are counter and we are negotiating a slightly poor condition in the dealing blasting phase of it. So our progress was slow but we improve further, as we negotiate the entire debt.

Sir, also, just wanted to check on this late payment of past -- how much of our receivables have been converted over here?

Actually, all this in the respect of JNK and Tamil Nadu, INR 1,400 crore has been agreed to be paid in installments. So from Gena, we are getting INR 50 crores per month in front end. And in case of Tamil Nadu, there's a small amount of INR 20 crores, that is we are getting in salmon.

So the total amount will be liquidated. Both for both of the 48 or is it for a quarter.

In case of Genie installments. And in case of Tamil Nadu, it is in around 40 is months. But in case of Tamil Nadu amount, will fall.

The next question is from the line of Aniket Mittal from SBI Mutual Fund.

A couple of questions. So one was just to understand on the employee level, I think if I look at over the past few years, what we've done is we've reduced our employee base fairly significantly, and that's helped kept the check on profitability as well. So if you could just help on the trajectory going forward, is there still room for us to -- as we build new projects? Is there still rumors for us to divert some of the current employee to the new projects or there will be new employees that we'll have to add.

Actually, earlier, we were having overstocking. So now we have entered in the ideation. But of course, due to coming of new projects, we require further manpower. So we are in the process of engaging employees through open advertisements. But there is no alarming situation on account of number of employees. We are very much comfortable as of now.

And just to understand on the employee front, when I -- let's say, to have a look at your actual O&M expense and compare that with the normal -- is there any under recovery now over there? Or maybe are we doing better than the oil and not?

Actually, under the core issue was in the past. Now outage, we are well within the alum charges, which we are receiving from CRC. So there is no issue of under recovery... At file. So rather, we are saying something.

Okay. The second question was on the Subansiri front. You stick to your time line of June 23. But just wanted to understand the recent land slide that have happened over there. If you could just elaborate a bit more on the impact that's happened on that project? And are there any restoration works that would be required? And how are we going about that?

Yes. We have started the last October month and September and October month, it has been extended are fall and some slide has taken place in the diversion tunnel area. So now it is -- there is no flood we will realize a stock -- so we have planned our work and we'll be going ahead with our planning. So it will -- I mean, for 2 months, work hampering has hampered and it has got the impact. So earlier, we are determined to complete it by March 23. So 1 or 2 months, it will go ahead. And by June 23, we are sure completing it.

So it's largely the diversion tunnel that's been impacted all the structures that have been impacted here?

Venture and basically the excess is going to the divergence. So that excess good has to be rebuilt so that we can reach to the diversion channel and carry out our work. So it is basically that will be taking some time. And because of that reason, we have put an additional 2 months and likely to be commissioned. There are 2 units likely to be commissioned by June 23.

Fair. Just one last question. I think recently, there's been an MOU that you've signed with Matas Electronics on solar manufacturing you could just throw some light on the rationale for that? And what is it that we're looking to do on that front?

Actually, it is just in the initial stage of talks, no concrete proposal has come from DL. And as per our understanding, we have signed a move for manufacturing or panels for solar projects, but nothing concrete has come as of now. Okay. Those were my questions.

The next question is from the line of Mohit Kumar from DAM Capital.

And so my first question is on which are the projects which you are looking to tender out in the Misco. Do you think our go to the ending buses in this fiscal?

Yes, Misco you already floated.

Output is 156 megawatts, right? That's a large project.

Yes.

And this will get awarded in this fiscal?

It will take some time because some players yet to be done there. So though we have floated the NIT and we are in process of receiving the goods, but maybe that we will be extending some time. And because we have got time actually, some clear are still pending and that has to be done first. Actually, it is expected to be decided in FY '23, '24 only. In commentary, it will not decide. Because there are certain players get to this.

That may happen in this Y2, right?

That may happen in end of this FY by March from the you may expect.

Understood. Secondly, sir, on the profitability side in this, what explains the increase in profit from INR 135 crores to INR 140 crores in the stand-alone. And also in JV, there also in the consolidated income, there is a slightly higher income. If you may subtract consolidate my stand-alone, the number is differently, 2.5 billion -- is it fabricated to the NHDC numbers? Can you just share the NHDC revenue by Eitan profit if possible and extent results?

The main region of increase is recognized of Medtrade in the current quarter. That is amounting to INR 123 crores. This is the main region. In addition to that, there are impact of fair value for an amount that is amount to INR 38 crores.

That’s on the negative side.

Yes. That's on the negative side and regarding next question for happily increase in profit, the main reason is INR 127 crores on account of again meccredit and invading generation. Yes. I am talking about the tender. In current half year, there is an increase of INR 900 million in genres. So that is also trying to increase the profit. So regarding consolidate? Regarding NSBC, in current half year, total generation is INR 3,188 million as against INR 1,342 million verses corresponding previous half years. So there is an increase of 87% increase in the generation in current half year in NHBC. This has contributed a lot in consolidated profit of the group.

Is it possible to say the NHPC quarterly number is the done.

Okay. First of all, I'm saying the genes figures to finish. In Q2 of FY '23, the generation was INR 2,715 million as against 126 million rate in corresponding previous quarter. So there is a tremendous increase in the Generasi the highest generation for NHDC so far, it pertains to half year and quarter -- and no profit is INR 4.6 crores as against INR 258 crores for the half year and INR 35 crores as against INR 15 crores for the quarter, second quarter.

Can you repeat the quarter number, sir?

Again, INR 305 crore is the PET quarter is INR 65 crores against INR 15 crores in the corresponding previous quarter.

Understood, sir. Lastly, sir, on the receivable accounting, if you can just delis, what are the outstanding amount from J&K and Teranga, -- what is the outstanding amount, principal plus all and how the accounting has happened and what has led to the fair value if you can just throw some more light on that?

As I mentioned in my space that on account of building debtors, the amount is INR 3,103 crores for the company as a whole. Out of that, in the total GenCare outstanding is INR 1,477 crores. Out of that, so Out of that, around INR 1,200 crores are being received INR 1,250 crores being received in installments as early mentioned, which is being received from PFC and REC directly at the rate of INR 50 crores per month. So you can consider INR 250 crores and securitized through PFC and REC. And balance is being issued directly from JK in step of adeno water sales and in cash. And in respect of outstanding INR 138 crore, it is also only current use, which is less than 40 days. And aspect of West Bengal, it is INR 57 crores. This is also parent and ads. -- or to Panja, amounted to INR 100 crores, -- this is also current dues and ads are go. And a small amount in sport Rata wind power, that is INR 80 crore -- and out of the 79 products all due, which we are pursuing with the state and others are INR 165 crores as total deals. Out of that, only INR 14 is the old wound. And as on that if you want some portion of debtors, that also I can explain. Total amount is INR 286 crores. Out of that, more than 45 days is only INR 146 crores. And this is confounded data.

The next question is from the line of Anuj Upadhyay from HDFC Securities.

So starting firstly on Parbati. So it would take at least 8 to 9 months to complete the tunneling bulk. So by when are we expecting the COD to get active in case of Parbati.

It is scheduled for December 23.

Okay. So I mean for tunneling but we are saying it won't take beyond 2 or 3 months to commission the project. Is my understanding correct, sir?

I mean the equation will be completed only 560 meters let. And then we have to go for the lining part. That is around 3 kilometer balance add-on date. Yes, all other components are AD. So only these 2 conference how those these 2 activity has to be completed, and then project will be seen to meso. -- as per our plan, within 5 to 6 months, we will complete the balance suction of 560 meters left out HIT. And the concreting lining work will be done with simultaneously and in many areas at a time. So as per our plan, it will be completed by 723.And we are hopeful to complete accordingly. Okay. And this marginal delays are across.

Sorry to interrupt Mr. Upadhyay, may we request that you return to the question there are participants waiting for the turn.

Okay. I asked one question.

Sir, you may please proceed. Okay, fine.

Secondly, sir, with this marginal increase in both delay?

I would say, in both Suban City and Palate our CapEx costs still firm? Or is this marginal escalation accosting project? It will impact only IDC and establishment part. And there is no likelihood in fasinadpost. Basically, IDS is a period of cost. So that may increase.

Okay. And lastly, sir, can you share the quarterly incentive income and the destinates. That's just...

Our PF incentive for current quarter is INR 181 crores and division cages are INR 47 crores. So total incentive for the current quarter is INR 228 crores as against INR 34 crores in the previous corresponding previous quarter.

[Operator Instructions] As there are no further questions. I now hand the conference over to Mr. Rupesh Sankhe for his closing comments.

Yes. So we thank NHPC management for giving us an opportunity to host this call. We also thank all the investors and the analysts for joining this call. Thank you. Thank you.

Ladies and gentlemen, on behalf of Elara Securities Private Limited, that concludes this conference call. We thank you for joining us, and you may now disconnect your lines. Thank you.