NHPC Limited (NHPC) Earnings Call Transcript & Summary

Ladies and gentlemen, good day, and welcome to NHPC Limited Q4 FY '24 Earnings Conference Call hosted by Elara Securities Private Limited. [Operator Instructions] Please note that this conference is being recorded. I now hand the conference over to Mr. Rupesh Sankhe from Elara Securities. Thank you, and over to you, sir.

Good afternoon, everyone. On behalf of Elara Securities, we welcome you all for the Q4 FY '24 conference call of NHPC. I take this opportunity to welcome the management of NHPC represented by Mr. R.P. Goyal sir, who is Chairman and Managing Director and also Director of Finance. So -- and we have Mr. Uttam Lal, Director of Personnel; also Mr. R.K. Chaudhary, Director, Technical. So 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. R.P. Goyal sir for his opening remarks. Over to you, sir.

Thank you, Rupesh. Good afternoon, friends. The NHPC Board has announced annual financial results for the period ended 31st March '24, in its meeting held on 17ht May '24. And the same has already been communicated to stock exchanges. By now, I hope you all could have gone -- have chance to go through the quarterly and yearly set of numbers. Detailed analysis of financial results of the company is as follows: during FY '24, our power stations have achieved generation of 21,773 million units as against 24,619 million units generated in corresponding period of previous financial year, which is lower by about 12%, that is 2,846 million units. This is mainly due to heavy flood in Teesta basin in October '23, which has resulted into complete shutdown of Teesta-V power station. The restoration works are underway and are expected to be completed by March '25. Further, overall lower water availability and intense rain and flood in some parts of Himachal Pradesh in August '23 has also impacted the generation in the region, especially the outage of all units of Parbati-III power station, which were fully operational in the month of September '23. During fourth quarter '24, our power stations have achieved generation of 2,304 million units as against 2,891 million units generated in corresponding period of the previous year, which is lower by about 20%, that is 587 million units lower due to reasons which I just explained. Our PF for FR '24 stands at 77.6% against the corresponding previous period PF of 88.75%, which is, again, lower by around 11%. This is mainly due to outages of some of our power stations like Teesta-V, Parbati-III, Kishanganga, [ Chamera-III ] and lower water availability. Our PF for fourth quarter for FY '24 stands at 54.65% against the corresponding previous period year of 67.96%, which is about 30% lower on account of same results. For FY '24, company has earned revenue from operations of INR 8,405 crores as against INR 9,316 crores in the corresponding previous period, which is about 10% lower or by INR 911 crores. The decrease in revenue is mainly due to lower generations. During first quarter FY '24, company has earned revenue from operations of INR 1,652 crores as against INR 1,717 crores in the corresponding previous period, which is about 4% lower by INR 65 crores. The decrease in revenue is again mainly due to lower generation. Other income for FY '24 is of the order of INR 1,620 crores in comparison to INR 835 crores during the corresponding previous period, which is about 94% higher or by INR 785 crores. This is mainly due to increase in dividend income by INR 121 crores from one of our subsidiaries that is NHDC and increase in realization of business interruption loss against insurance claim by INR 108 crores. And increase in income from exchange rate variation by INR 74 crores. Further, there is income from insurance claim of INR 382 crore on account of material demand mainly in respect of Teesta-V power station. However, this has no impact on [indiscernible], the same has also been good in other expenses as well. Other income for fourth quarter FY '24 is of the order INR 591 crores in comparison to INR 254 crores during the corresponding previous period, which is about 133% higher or INR 337 crores. This is mainly due to increase in dividend income by INR 97 crores and realization of business interruption loss against insurance claim against Teesta-V power station of INR 112 crores. Increase in income from exchange rate variation by INR 41 crores in other insurance items. During FY '24 the generation expenses have come down from INR 936 crore to INR 814 crores, means by INR 122 crores due to lower generation and reversal of water cess good earlier in respect of Himachal Pradesh and Sikkim. During fourth quarter FY '24, the generation expenses have come down from INR 152 crores to negative INR 247 crores, means by INR 399 mainly due to reversal of water cess during the current quarter in respect of Himachal Pradesh and Sikkim to the tune INR 412 crores in lieu of outcome of the Honorable High Court of Himachal Pradesh against imposition of water cess. Basically, we have won the case in Himachal -- in the High Court of Himachal against the government of Himachal Pradesh, and we're expecting to win the case in case of Sikkim also. During FY '24, the employee cost has come down from INR 1,300 crores to INR 1,297 crores, means by INR 4 crores, which is almost flat. During fourth quarter FY '24, the employee cost has come down from INR 417 crores to INR 369 crores, means by INR 48 crores, which is mainly on account of retirement of employees. During FY '24, there has been decrease in the finance cost from INR 476 crores to INR 425 crores, means by INR 51 crores, which is mainly due to change in rate of interest and repayment of loan. During fourth quarter FY '24, there has been decrease in the finance cost from INR 112 crores to INR 95 crores, means by INR 17 crores which is, again, mainly due to change in rate of interest and repayment of loans. During FY '24, the depreciation and amortization expenses have come down from INR 1,145 crores to 1,111 crores, means by INR 34 crores, which is mainly due to completion of 12 years of life in respect of Sewa-II power station in FY '22-'23. So the expense in depreciation charges in respect to Sewa-II has come down drastically. During fourth quarter, the depreciation and amortization have come down from INR 286 crores to INR 280 crores, means by INR 6 crores, which is again mainly due to completion of 12 years of life of Sewa-II power station in FY '22-'23. During FY '24, other expenses have gone up from INR 1,708 crores to INR 2,316 crore, means by INR 608 crores. This is mainly to increase in insurance expenses by INR 125 crores and increase in interest on arbitration of the court cases by INR 183 crores. Further, there is accounting of material damage of INR 441 crores mainly in respect of Teesta-V power station, which has been offset by insurance claim of INR 382 crores is shown under other income. During fourth quarter, other expenses have gone up from INR 486 crores to INR 788 crores means by INR 302 crores. This is mainly due to increase in insurance expenses by INR 49 crores, increase in interest on arbitration of the court cases by INR 183 crores, increase in interest to beneficiaries by INR 49 crores. During FY '24, net PAT of INR 529 crores has been recognized and net PAT of INR 355 crores has been utilized during the period. This has resulted in a positive impact on profitability by INR 174 crores. During first quarter FY '24 net PAT of INR 129 crores has been utilized during the period. This has resulted in a negative impact of INR 129 crores on PAT for the quarter. During FY '24, we have earned PAT of INR 3,744 crores as against INR 3,834 crores to corresponding previous period, which is down by INR 94 crores that is around 2%. And the reasons for decreased increase in the line items we have just discussed. During fourth quarter FY '24, we have earned PAT of INR 698 crores as against INR 569 crores of corresponding previous period, which is up by INR 129 crores or 26% upwards, and the reasons we have just discussed. During FY '24, the incentive position is as under. We have earned secondary energy of INR 102 crores as against INR 123 crores in the corresponding previous year. PF Incentive for FY '23, '24 is INR 316 crores as against INR 405 crores, so this is down by INR 89 crores. Our dividends charges are INR 41 crores for FY '23-'24 as against INR 147 crores we earned in FY '22-'23. So it is also low by INR 106 crores. So total incentive on these 3 accounts for FY '23-'24 INR 459 crores as against INR 675 crores we earned in the corresponding previous year. So there is a dip of INR 216 crores in total all of the incentives. During fourth quarter FY '24, the incentive position is as under. We earned in the secondary energy to the tune of INR 80 crores as against INR 110 crores in the corresponding previous quarter. So it is also lower by INR 30 crores. PF-based incentive is INR 252 crores as against INR 349 crores in the corresponding previous quarter, so it is lower by INR 97 crores. Dividends are INR 7 crores as negative INR 2 crores in the corresponding previous quarter, so this is up by INR 9 crores. So total incentive for the quarter -- current -- fourth quarter of FY '23-'24 is INR 339 crores as against INR 457 crores in the corresponding previous quarter. So there is total dip of INR 118 crores so far the quarter is concerned. We incurred CapEx of INR 8,652 crores during FY '24, against -- '23-'24 against target CapEx of INR 10,857 crores on consolidated basis. The Board of Directors -- recommended the payment of final dividend at the rate of 5%, that is INR 0.50 per equity share in addition to interim dividend at the rate of 14%, resulting in total dividend at the rate of 19%, that is INR 1.90 per equity share on the face value paid up equity share of INR 10 each for the financial year '23-'24. Other major highlights of the company are as follows: on realization front, NHPC has received INR 9,606 crores from the beneficiaries against sale of the energy during FY '24 as compared to INR 7,435 crores in the corresponding period of previous year. Trade receivables as on 31 March '24 stands at INR 3,984 crores as against INR 5,887 crores as on 31st March '23. This includes INR 2,263 crores as unbilled debtors as on 31st March as against INR 2,757 crores as on 31 March '23. The net receivables out of total reported trade receivables as on 31st March '24 are as under. Reported trade receivables are INR 3,984 crores. This includes unbilled debtors INR 2,263 crores. If you subtract the unbilled debtors, then net billed revenue -- billed receivables are INR 1,721 crores. This includes INR 191 crores, for which, we have already received the money through bill discounting, but due to accounting purpose, it is being disclosed as outstanding debtors. Then INR 712 crores is on account of debtors for which we are receiving money in installments as per late surcharge rules notified by the Ministry of Power. And we are -- we will be assuming this INR 712 crores in the coming period in installments. So net amount due as on 31st March '24 is only INR 818 crores. And more than [indiscernible] dues are only INR 277 crores as on 31st March '24. So wholesome of outstanding debtors is very comfortable. Unbilled debtors, mainly include impact of effective tax rate on return on equity of INR 521 crores. Unbilled sales for the month of March to the tune of INR 500 crores. Energy sold -- INR 425 crores. Impact of AFC billed and recoverable as per new regulations 2019-'24, including security expenses of INR 415 crores. Normative IDC claimed for Kishanganga power station of INR 144 crores in water cess charges INR 104 crores. Net trade receivables as on 16th May '24 stands at INR 1,192 crores, which includes more than 45 days bills of INR 160 crores only. On physical front, as we have been saying there is an active construction work at Subansiri Lower project site is going on in full swing. Presently, we achieved a major objective in the completion of the project. With the successful installation of [indiscernible] grid #7, 8 and 9, along with filling arrangement on 25th April '24. We are very hopeful that the we can commission 3 unit [indiscernible] by March '25 and rest of the units one-by-one by May '26. The estimated cost of the project is INR 21,248 crores, out of which we have already incurred INR 2,834 crores till March '24. The estimated levelized tariff based on the anticipated cost is INR 5.60 per unit. In respect of Parbati-II project, as we have already said that we have achieved the daylighting of 31.5-kilometer long Head Race Tunnel over the period. We are trying our best to complete the tunnel by December '24. The anticipated cost of the project is INR 12,160 crores, out of which, we have already spent INR 11,127 crores until March '24. The estimated levelized tariff based on the anticipated cost in INR 6.59 per unit. In the respect of Dibang Multi Purpose Project, 2,880 megawatt, contracts letted to design and engineering infrastructure work, construction [indiscernible] already have been awarded. We have diversion, a significant stride towards entering all major road access to the grid site. The estimated cost of the project is INR 31,876 crores, which includes a grant of INR 6,735 crores for front motors and -- building the infrastructure works, out of which, we have already incurred INR 2,307 crores until March '24. Further, estimated levelized tariff of the project is INR 4.46 and the schedule of completion of the project is February '32. In respect of Lanco Teesta Hydro Power Limited, Teesta-VI project, as we have shared that work was progressing well at site. However, due to flash flood in the region on 4th October, '23, the work was affected to some extent. Now the work is progressing well. However, all assets and work for this projects are insured under Construction All Risk policy. The estimated cost of the project is INR 5,748 crores, out of which, we have already incurred expenditure of INR 3,444 crores till March '24. Estimated levelized tariff of the project is INR 4.07 per unit and expected commissioning schedule over the period is December '27. Further, we are in the process of merger of LTHPL with NHPC and second motion application been filed with MCA and the hearing of the same is on 30th May '24. Jalpower Corporation Limited Rangit-IV project is also progressing well. The estimated cost of the project is INR 1,871 crores, out of which, we have already incurred expenditure of INR 1,014 crores until March '24. Further, we are in the process merger of this company also with NHPC. The project is expected to be completed by May '25. In respect of [indiscernible] at 50 megawatts, the work is going well at the project site. The estimated cost of the project is INR 5,282 crores, and we have incurred expenditure of INR 672 crores till March '24. Estimated levelized tariff for the project is INR 3.92 per unit and the project is expected to be completed by December '26. Presently, NHPC through its subsidiary CVPPPL is executing 3 projects in Chenab basin of UT of J&K. Construction work at Pakal Dul project of 1,000 megawatt is progressing well. The estimated cost of the project is INR 8,112 crores, out of which, we have incurred expenditure of INR 4,187 crores till March '24. The estimated levelized tariff of the project is INR 4.28 per unit. And the project is expected to be completed by September '26. In respect of [indiscernible] project, we have incurred expenditure of INR 1,730 crores till March '24, out of we have incurred cost of INR 4,288 crores. Estimated levelized tariff of the project is INR 4.64 per unit and estimated completion of the project is September '26. In respect of Kwar hydroelectric project, 540 megawatt, the work is progressing at site. The estimate cost of the project is INR 4,526 crores, out of which, we have incurred expenditure of INR 631 crores till March '24. Estimated levelized tariff of the project is INR 4.44 per unit and the% project will be completed by December '27. Apart from above under-construction projects, NHPC is also working on some projects such as Teesta-IV, 510-megawatt; Sawalkot, 1,856 megawatts; Uri-I, Stage-II, 240-megawatt; Dulhasti Stage-II, 260 megawatts; Kirthai-II, 930-megawatt; and Dugar project, 500 megawatt, which are at the different stages of clearances. And as part of our hydroelectric projects in Nepal, DPR preparation is under progress for 750-megawatt West Seti project and the inspection report submitted by NHPC has been accepted by Investment Board of Nepal in respect of 450-megawatt Seti River-6 hydroelectric project. Further review of DPR has been submitted to h Vidhyut Utpadan Company Limited, Nepal on 30th March '24 in the respect of Phukot Karnali Hydroelectric Project, 480-megawatt in Nepal. PPA for all under construction of NHPC through its subsidiaries have been signed. And consent has been received from the discoms for the same. In respect of 1,000 megawatt capacity solar project, the work is progressing well in respect to 300-megawatt project in Bikaner, Rajasthan. And land acquisition is in progress in respect of 600-megawatt project in Gujarat and 100-megawatt project in Andhra Pradesh. NHPC has received Letter of Intent for setting up of 200-megawatt grid connected solar photovoltaic power projects located in GSECL renewable energy park at Stage 3 Khavda, Gujarat at the rate of INR 2.66 per unit through tariff-based competitive bidding from Gujarat Urja Vikas Nigam Limited Gujarat on 14th March '24. NHPC is also exploring to develop some of the solar projects in the states of Andhra Pradesh, Odisha, Jharkhand, Madhya Pradesh, Gujarat, Tripura, Punjab and Maharashtra with total indicative capacity of approx 20,000 megawatt. We have submitted PFR of Indirasagar-Omkareshwar, 525 megawatt; Tekwa-2, 800 megawatt; and Satpura-2, 1,500 megawatt pumped storage projects in the state of Madhya Pradesh. Further, PFR of Savitri pumped storage project 1,800; and Kengadi PSP 600 megawatt situated in Maharashtra have also been submitted. For other projects, as of now, the PFR is in progress. This is all from our side. Now the forum is open up for question and answers. Thank you.

[Operator Instructions] The first question is from the line of Mohit Kumar from ICICI Securities.

Sir, my first question is on the Subansiri and Parbati-II. If I remember earlier, the schedule was March '24 for Parbati-II and June '24 for Subansiri. It looks like it has slipped -- Parbati-II to December '24 and Subansiri complete plant commissioning in May '26. Is that number correct, sir? Is that...

Yes, yes.

[indiscernible] Subansiri, sir, I think you were looking to complete this project in FY '25, if I am not wrong?

Our director, [ Mr. Chaudhary ] will answer this question.

Yes, you have correctly mentioned that earlier Subansiri commissioning and the Parbati commissioning was as you have mentioned. The Subansiri, during the last year in October, there was an subsidence in Diversion Tunnel 1, which triggered a hill slope slide on the left bank. And that damage a portion of the hill slope and also damage the portion of the Diversion Tunnel 1. Diversion Tunnel 1 unfortunately got connected with the river at the second point, apart from the diversion tunnel inlet. So a lot of restoration works it necessitated, and we started the works, and we are on the job. Now major portion of the restoration works are completed. Although hill slope restoration work is still going on. Diversion Tunnel 1, there was a lot of seepage and it was even to the tune of 8 to 9 cumecs. Now it has come down less than 1 cumecs, and we have completed the blind portion of the plug in Diversion Tunnel 1. So now we are hopeful and we are going well. The balanced portion of Diversion Tunnel 1 plug shall be taken up after the current monsoon season. So that's why this is the main reason of shifting the commissioning schedule of the project Subansiri Lower. So for Parbati is concerned. Parbati also, there was delay in excavation. But now the excavation of the Parbati-II is completed, the lighting was achieved. And only concrete lining is left, and we are presently going ahead with the concrete lining with the help of 4 gantries, 4 steel gantries, and we are going well and we are comfortable. We are confident that we'll achieve the commissioning by December '24.

When do you expect the first unit of Subansiri to be up and running?

March '25. So because the unit is ready. Unit 1, Unit 2 and Unit 3 is almost ready. Unit 3, just we are going to lower the stator and thereafter rotor. Unit 1 and 2 already boxed up. So only this civil works and some portion of hydromechanical works will complete. And we are hopeful that we are going to commission the first, second and third unit in March '25.

Understood. My second question is, what is our CapEx target for FY '25? And is there any chance of starting the work on any pumped storage hydro projects?

Our CapEx target for FY '25 is to the tune of INR 11,000 crores plus, INR 11,761 crores. And this expenditure does not include any expenditure on pumped storage projects because it will take some time to complete the [indiscernible] project that is our [indiscernible] pumped storage project. So we have not kept any [indiscernible] in this financial year.

Is it possible to give the breakup of this CapEx, sir?

Certainly, certainly. We have kept INR 456 crores for the 2 projects. Then INR 1,000 crores for Subansiri Lower; INR 950 crores for Dibang. Then we have kept around INR 950 crores for new upcoming projects, which include Sawalkot, Dugar, then Dulhasti Stage-II, et cetera. Then we have kept INR 1,623 crores for solar projects, which include [indiscernible] projects and other projects which you have won in bidding process in Gujarat. So INR 1,623 crores is planned for solar projects. So total CapEx in NHPC stand-alone basis INR 5,131 crores. Then we have planned INR 3,374 crores for our Chenab valley projects, which consists 3 projects, Pakal Dul, Kiru and Kwar. For Pakal Dul, we have kept INR 1,750 crores; Kiru, INR 1,181 crores; and Kwar, INR 427 crores. Then we have kept INR 149 -- sorry, INR 550 crores for our solar projects, which we are doing in our -- one of the subsidiaries that is [ DHCL ]. It consists of 3, 4 projects, which are at different stages. Then we have kept INR 1,198 crores for our Lanco Teesta-VI project in the state of Sikkim, and Rangit INR 460 crores. For [indiscernible], we kept INR 950 crores. So this is the breakup of INR 11,761 crores CapEx which we planned for FY '24-'25.

So one clarification as I'm talking about your joint venture projects [indiscernible] or the total CapEx?

So this is total CapEx. It does not include [indiscernible].

[Operator Instructions] Next question is from the line of Anuj Upadhyay from Investec India.

So this question again belongs to Subansiri and Parbati. Because of the delay in the COD, that is the commissioning date, I believe there is a revision in the tariff rate on the upper direction. I'm aware that the PPA has been signed, but how will the beneficiaries are placed to take up this project at a revised tariff rate?

First of all, we have -- PPAs are in place. And in case of Subansiri, rate is slightly higher, that is around INR 6.62. But we will do some reengineering to lower the tariff and to get the power sold. And in respect of Parbati-II, the rate is INR 6.59. So we will do some reengineering to lower the tariff. We will accept lower operation maintenance services for the first 5 years, and we can plan for a longer period of depreciation. So we will try to keep it within the range of INR 6 and there will be no loss to the company. So far, Subansiri is concerned, the latest tariff is coming at INR 5.50, and that will be -- that is well within the range of -- salable range. And there will be no loss to the company on account of ROE or any other things.

Okay. So this will be on a cost-plus basis, right, sir? There's nothing as such a fixed price...

In case of Subansiri, in the year of 2007, we sold -- the tariff was INR 5.50, and there was no issue. So this tariff will also not be -- there will not any issue in selling the power.

Okay, sir. Secondly, on the CapEx, you mentioned the CapEx for FY '25 would be INR 11,764 crores on a consol basis. Is it right, sir?

Correct.

An approximate figure for FY '26 as well?

For FY '26, our CapEx is in the range of INR 13,317 crores. So, again, it will be in the same range. This is a plan for INR 13,000 crores plus.

Got it, sir. So roughly, it's like INR 25,000 crores is what we are planning over the next 2 years. And how...

In the next 7 to 8 years, it is in the same range. We will be incurring CapEx in the range of INR 13,000 to INR 15,000 crores every year. .

Okay, okay. And sir, how well our cash flows are placed to meet our the equity CapEx requirement of this quantum? I just saying INR 13,000 crores is a roughly CapEx requirement that entails roughly INR 3,000 crores to INR 3,500-odd crores at an equity requirement, considering 70-30 kind of a debt equity investment. So how well our cash flows are placed? Could be helpful you can take us through that?

We are very comfortable on account of cash flow because only 30% is for equity. So keeping in view of our internal accruals, there will be no issue of cash flow. So we have to arrange only around INR 4,000 crores annually on account of equity.

Okay. So INR 4,000 crores equity can be -- I mean like internal cash flow can be easily made like through operation...

Our PAT is in the -- current PAT in the range of INR 3,800 crores and the depreciation is in the range of around INR 1,600 crores. So our internal cash accrual is in the range of INR 5,400 crores. So after deducting the outflow on account of dividend, around INR 3,600 crores is available for CapEx on account of equity. So going forward, our PAT will increase and our internal accrual will also increase for meeting our CapEx.

[Operator Instructions] Next question is from the line of [ Bhavesh Patel ] from Patel Investments.

My question is regarding the recent news of us signing of floating solar power-related technology player. When do we expect implementation of this and where initially, if you have any idea?

Recently, we have signed MOU with a Norway company, Ocean Sun. So the -- both NHPC and Ocean Sun will identify the water bodies where we can go ahead with the floating solar. So as of now, first of all, first job is to identify the water bodies and business opportunities. And jointly, Ocean Sun Norway and NHPC is going to develop the floating solar. Presently, we are executing the floating solar on 88 megawatts in Omkareshwar reservoir through NHPC. Also, we are exploring in Rengali, Odisha, 300-megawatt floating solar. So last few months back, we went for the tendering. Unfortunately, there was only 1 tender. So again, we are going for the retendering.

Okay. And you mentioned about 20,000 megawatts hydro storage power plants over the next 10 years? Is that a fair assessment?

Yes. It is in the survey and administration still. So we have been taking up projects which are -- first, we will take up those projects which are easy. And as per our plan, within 2 years, work will start on the ground in case of 3, 4 projects with the capacity of around 5,000 to 6,000 megawatts in that pumped storage space. And these projects will be commissioned by FY '30.

All right. And again, we will continue with our dividend distribution policy, which is the current one?

Dividend -- we will be -- we will continue to pay dividend as per our policy and which is as per given guidelines only.

Next question is from the line of [ Prashanth ] from Unived Corporate Research.

Yes. Just wanted to reconfirm with the Subansiri hydroelectric project. When will the -- as you mentioned, the unit should be commissioned in March '25. So all the units would be commissioned in 1 month or it will be staggered?

Basically, 3 units of this project will be commissioned in the month of March '25 and balance 5 will be commissioned one by one up by May '26.

May '26. Yes. My question is whether all the 3 units will be commissioned in March? Or is this...

Yes, because 3 units are going to be ready by March '25. Basically some civil work and some hydromechanical work is pending. Otherwise, our 2 units are boxed up already. And third unit is also going to be boxed up by October or November '24. So from electromechanical side, there is no issue in this 3 units. Only the balance civil work and HM works is to be completed. So that's why I'm saying that 3 units will be commissioned at a time in the month of March '25.

But is there a possibility that 1 or 2 units may be commissioned before March or, say, Jan, Feb or something...

Because completion of civil works and HM related works --that is to be completed and these balance works are expected to be completed by February or March '25. That's why there is no possibility of commissioning 1 or 2 units before that.

And secondly, sir, regarding one of the projects which was kept on the back burner or abandoned by NHPC was the Bursar -- project. And the company has written off also an amount. Yes. Is there a possibility of revival by the government -- from the government side of that project? Or is it...

Bursar, we've prepared the DPR. So DPR prepared. And in 2008, that project was declared as a national project by the Ministry of Water Resources. And we completed the DPR and submitted the DPR to [indiscernible] CCEA, and Ministry of Jal Shakti. So what is happening, the -- if all the cost of the Bursar is going to be loaded for the power generation, then the power generation is coming quite high, rate of the power generation. So the second aspect is storage. So a portion in the cost for the storage for irrigation purpose. And unfortunately, for command area for the irrigation in Jammu & Kashmir and Himachal Pradesh, the government is not getting the required command area for irrigation. But still we feel that the country should go ahead with that. Because the storage project is very rare in our country, various [ cause ]. And wherever the storage project is available, we should develop it. So government -- once government will rethink and the government will direct NHPC, then certainly, we'll like to develop Bursar.

Prashanth, for your clarity, I want to say that this project will be viable only when the government will provide grant for the storage component. Otherwise, tariff is coming very high. It is coming in the range of INR 25 to INR 30 per unit. So in case government wants to consider this project from a strategic point of view or any other point of view, only then it will happen. Otherwise, we've already provided the expenditure, which we had incurred in the past.

One more question, sir, is on the Dibang project. When do you expect the work to start at the ground level in that project?

In Dibang project, the work had already started on the ground. The construction of the roads, bridges, converts in the package. One package awarded to L&T already going on well on the ground. And the one more package for the construction of powerhouse and other [ ADH ] tunnels. so awarded to Patel and GR Infra, a joint venture, and those works are also going on well on the ground. So recently, myself and the Chairman Sahab visited the project. Works are going well. And we are getting ready to float the tender for construction of the main concrete dam.

So I just wanted to ask you, is all the land acquisition for the project over? Or is this...

Total land acquisition has already been done, and we've ordered all the packages except civil works for them and 2 small packages of hydromechanical work, which will also happen in the next 3, 4 months.

[Operator Instructions] Next follow-up question is from the line of Mohit Kumar from ICICI Securities.

My question is on the EPC tender. Sir, are you looking to award EPC tender for Sawalkot and Dugar this year?

Yes. We are in the process for awarding the work for Sawalkot subject to approval by the [ CCA ]. So we have already taken up the issue with the MP government as well as Ministry of Power for approval of this project. So far, Dugar is concerned, as you know, Government of Himachal Pradesh has withdrawn all the concessions which were agreed by them, and for which we are in the court. So it depends on outcome of the court case and -- follow-up of the Himachal government to provide concessions. Otherwise, this project may not be viable -- the project may not be viable.

So is it right to say that we are looking to award both the projects in 1 single EPC package?

Yes, we are in the process of tendering. Tenders have already been quoted for Dugar. And for Sawalkot, we are preparing packages. So we will be doing the tendering work simultaneously. In case government approvals is received or the court verdict is in our favor, only then we will award -- but we are preparing simultaneously.

Understood. My second question is on this, on the last year, I think we did a fair amount of tendering on behalf of discom for purchasing renewable power, right? So what is the progress on the PPAs for those projects -- for those vendors? And how much tenders are you looking to award in this fiscal?

We have already signed PPA and PSA for 3,000 megawatt capacity in the REI mode -- and for 1,400, the process is going on. So you can say that we will be able to sign PPA and PSA for 4,400 megawatts against that capacity, which was allocated to -- by the MNRE to the tune of 10,000 megawatts.

10,000 megawatt you have conducted bids for 7,400 megawatts? Is that right?

4,400 megawatts.

Next question is from the line of Rajesh Mangal Agrawal from Rajesh Mangal and Company.

Yes. Sir, I'm a retail investor and many congratulations to you that retail investors have too much faith in NHPC right now. Say in last December quarter, number of retail investors was 10.32 lakhs. And it is almost increased 3x. Right now, the retail investors in March '24 quarters is 33.35 lakhs. Sir, I am going to your website and I think, this March '24 presentation is missing there. Am I correct?

Sorry. Number of [indiscernible] -- you are talking about number of [indiscernible].

No, no, no. I am talking about investor presentation for March '24.

Okay. So March '24 presentation will be uploaded after this con call. So most likely, you'd be getting the presentation by end of the day.

But sir, I think it will be better -- for future, it will be better to present the investor presentation beforehand so that investor can go through it. And if at all, anything he want to discuss with you -- then he can...

Mr. Rajesh, we have noted your suggestion. It will be done in for future.

Okay. Second question is, sir, what is the expected ROE, return on equity for financial year '24-'25?

You're talking about company level?

Yes, yes, yes. Consolidated level.

At company level, it will be in the range of 10% to 11%.

10% to 11%. Yes. Okay. And may I know, sir, what the revenue top line growth we will achieve during '24-'25 by way of the new commissioning of our plants, et cetera?

As we have discussed, there is no new capacity being added prior to March '25. So there will not be any increase in the top line because capacity is the same. Only few gigawatts of the solar can be added.

Okay. Okay. And last question is, sir, we have shown it in our company that the capital -- work in progress is around INR 39,650 crores -- capital work in progress. Okay. So can you throw some light on this INR 39,650 crores?

There are 2 big projects in our case, one is Subansiri, 2,000 megawatt and capital work in progress is in the range of INR 21,000 crores plus. And again, Parbati-II, 800 megawatts, which the expenditure incurred is in the range of INR 11,000 crores plus. So keep taking these 2 projects, total INR 32,000 crores is coming. And balance is in the other projects like Dibang and other projects.

Yes, yes. No issue, sir. Sir sorry for the question again. So when we wish to commence this plant, all these big 2 plants?

As we've told, Parbati-II will be commissioned in the month of December '24. And same also, Subansiri will be commissioned in March '25. And balance 5 units will be commissioned in phased manner by May '26.

Okay. Okay. And last one, sir, this -- I have missed in the con call about this floating solar power plant and 300 megawatts in Rengali and 88 megawatts in Omkareshwar. So when do you expect to commissioning this project and earning revenue from this?

So far, 88 megawatts Omkareshwar project is concerned, it will be commissioned by October '24. But so far, 300 megawatts Rengali is there, it is the re-tendering stage. And in case everything goes well, we will be commissioning this project in -- for taking companies separate in FY '26-'27.

'26-'27. Sir, whom do you give this 88 Omkareshwar contract? .

We have given contract to Tata.

Tata Power?

Tata Power.

Next question is from the line of [ Saurin Mehta ], individual investor.

Congratulations, sir. I'm very proud that you have given clarity about the Subansiri and Parbati projects. And I wish to know that as met department has predicted normal to excess rainfall. Will it affect our company in a positive way?

Mr. [ Saurin ], excess monsoon impacts us in a negative sense and lower monsoon also impact in a negative sense in the respect of our power stations systems, which are under operations. But moderate monsoon is always welcome. So in case excess monsoon comes, our construction projects gets affected.

Ladies and gentlemen, due to time constraint, we will take the last question from the line of Bhavesh Patel from Patel Investments.

And my question was additional capacity coming up and you answered that in the earlier question. So once again, all the very best for the upcoming execution and continue on the great work the company doing, and we are really excited.

I now hand the conference over to Mr. Rupesh Sankhe for closing comments.

Thank you, Goyal sir, thank you for giving us an opportunity to host this call [indiscernible].

Thank you.

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