NHPC Limited (NHPC) Earnings Call Transcript & Summary

Ladies and gentlemen, good day, and welcome to NHPC Limited Q2 FY '25 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 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 '25 conference call of NHPC. So I take this opportunity to welcome the management of NHPC represented by Mr. R.K. Chaudhary sir, Chairman and Managing Director; Mr. R.P. Goyal, Director of Finance; Mr. Uttam Lal, Director Personnel; and Mr. Sanjay Kumar Singh, Director of Project. So we will begin the call with the brief overview by the -- the management followed by Q&A session. I will now hand over the call to Mr. R.K. Chaudhary for his opening remarks. Over to you, sir.

Good afternoon, friends. The NHPC Board has adopted half yearly financial results for the period ended September 30, '24 in its meeting held on November 7, '24, and the same has already been communicated to stock exchanges. 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 Finance, Shri R.P. Goyalji. These highlights of the project, financial results and important updates on the company are as enumerated below. During half year financial year '25, our power stations have achieved generation of 15,013 million units as against 16,797 million units generated in corresponding period of the previous year, which is lower by about 11% or 1,784 million units. This is mainly due to heavy flash flood in Teesta Basin in October '23, which has resulted into complete shutdown of the Teesta-V power station, which has generated 1,928 million units in the corresponding previous year. The restoration works at the power station was going on. But in August '24, a land slide occurred at the power station sites, affecting the [ tail bridge ] tunnel, outlet structure and the GIS building. Necessary remedial actions have already been started and the restoration works are expected to be completed by third quarter financial year '26. Our plant availability factor for half year financial year '25 stands at 82.68% against the corresponding previous period,plant availability factor of 91.93%, which is about 9% lower. This is mainly due to lower water availability, complete shutdown of Teesta-V power station, and partial shutdown of TLDP-III power station due to flash flood and high shield in the river, less inflow in various power stations and outage of unit at Uri-I power station. During half year financial year '25, company has earned revenue from operation of INR 4,969 crores as against INR 5,056 crores in the corresponding previous year, which is about 2% lower. During half year financial year '25, company has earned profit after tax of INR 1,929 crores as against INR 2,500 crores of corresponding previous period, which is 23% lower. On physical front, as we have been sharing that the active construction work at Subansiri Lower Project site is going on in full swing. Recently, we have achieved a major milestone in the completion of the project with the successful lowering of the rotor of unit 3, weighing 673 tonnes on October 17, '24. Overall, 94% critical progress of the project has been achieved. We are very hopeful that we can commission 3 units of the project by March '25, and rest of the units one by one by May '26. The revised cost of project at completion is under process. We have incurred INR 22,027 crores in September '24. The estimated levelized tariff based on the anticipated cost is INR 5.60 per unit. In respect of Parbati-II HE project, as we have already shared that we have achieved the daylighting of 31.5 kilometer-long headrace tunnel of the project. All the major works of the project, except 159-meter overt lining and 3,630-meter invert lining of HRT have been completed. Overall, 98% physical progress of the project has been achieved. We are trying our ways to complete the remaining overt lining and [ invert ] lining of HRT and commissioned the project by February '25. The anticipated cost of the project is INR 12,160 crores, out of which we have already spent INR 11,879 crores until September '24. The estimated levelized tariff based on the anticipated cost is INR 6.73 per unit. In respect of Dibang Multipurpose Project, 2,880 megawatts, 5 out of 7 packages related to design and engineering, infrastructure works, construction of HRT and powerhouse, E&M works and HM work of [ pressure shaft ] have been awarded. The remaining 2 packages related to dam and HM works are in the tendering stage. We have already shared that we have achieved a significant stride towards ensuring all-weather road access to the project sites. The estimated cost of the project is INR 31,876 crores, which includes grant of INR 6,716 crores for flood moderation and enabling infrastructure works, out of which, we have already incurred INR 2,525 crores till September '24. Further, estimated levelized tariff of the project is INR 4.46 per unit, and the scheduled completion of the project is February '32. In respect of Lanco Teesta Hydro Power Limited, Teesta-VI project 500 megawatts, as we have shared that work progressing well at site. Work for construction of new bridge under progress for making permanent approach to powerhouse. Further, concreting at [ Biraj ] area, and acceleration of HRT is also in progress. Overall, 64% physical progress of the project has been achieved. The estimated cost of the project is INR 5,748 crores, out of which we have already incurred expenditure of INR 3,732 crores till September '24. Estimated levelized tariff of the project is INR 4.07 per unit, and expected commissioning schedule of the project is December '27. Further, we are in the process of merger of LTHPL with NHPC, and the order for the merger is pending with Ministry of Corporate Affairs. Jal Power Corporation, and Rangit IV project 120 megawatt is also progressing well. On July 22, '24, the project has successfully achieved the daylighting of the HRT. Overall, 80% progress -- physical progress of the project has been achieved. The estimated cost of the project is INR 1,828 crores, out of which we have already incurred expenditure of INR 1,241 crores till September '24. Further, we are in the process of merger of JPCL also with NHPC, and first motion application has been filed with Ministry of Corporate Affairs. The project is expected to be completed by December '25. In respect of Ratle H.E. Project, union territory of J&K, 850-megawatt, the work is progressing well at the project site. Overall, 17% physical progress of the project has been achieved. The estimated cost of the project is INR 5,282 crores, and we have incurred expenditure of INR 784 crores until September '24. Estimated levelized tariff of the project is INR 3.92 per unit, and the project is expected to be completed by December '27. Presently, NHPC, through its subsidiary, Chenab Valley Power Projects Limited is executing 3 projects in Chenab basin, union territory of J&K. Construction work at Pakal Dul HE project, 1,000 megawatts, is progressing well. Overall, 60% physical progress of the project has been achieved. The estimated cost of the project is INR 8,112 crores, out of which we have incurred expenditure of INR 5,092 crores till September '24. Estimated levelized tariff of the project is INR 4.28 per unit, and the project is expected to be completed by September '26. During half year financial year '25, company had earned PAT of INR 1,929 crores as against INR [ 500 ] crores of corresponding previous period, which is 23% lower. In respect of Kiru HE project, 624 megawatt. Overall, 45% physical progress of the project has been achieved. We have incurred expenditure of INR 1,867 crores till September '24 out of estimated 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. Overall, 17% physical progress of the project has been achieved. The estimated cost of the project is INR 4,526 crores, out of which we have incurred expenditure of INR 770 crores til September '24. Estimated levelized tariff of the project is INR 4.44 per unit, and the project is scheduled to be completed by December '27. Apart from above under construction projects, NHPC is also working on some projects such as Teesta-IV, 520 megawatt; Sawalkot, 1,856 megawatts; Uri-I Stage II, 240 megawatt; Dulhasti Stage II 260 megawatt; Kirthai-II, 930 megawatts; and Dugar project, 500 megawatt, which are at different stages of clearances. In respect of our hydroelectric projects in Nepal, final detailed project report for the West Seti Hydroelectric Project, 800 megawatt, has been submitted to the Investment Board of Nepal on October 18, '24. In line with our commitment under the Memorandum of Understanding. Further, an MOU has been signed between NHPC and last year Rastriya Prasaran Grid Company Limited Nepal for grid connectivity for West Seti Hydroelectric Project on May 13, '24. The inception report submitted by NHPC has been accepted by Investment Board of Nepal in respect of 460 megawatts with Seti River 6 hydroelectric projects, and the DPR is under preparation. Further review report of DPR has been submitted to Vidyut Utpadan Company Limited Nepal in March '24 in respect of [ Phukot Karnali ] Hydroelectric Project, 624 megawatt in Nepal. PPAs for all under construction projects of NHPC, including its subsidiaries have been signed or consent has been received from the DISCOMs for the same. In respect of 1,000-megawatt capacity solar power projects allotted under CPSU Scheme II, the works are progressing well in test of a 300-megawatt project in Bikaner, Rajasthan. In a significant development, Ministry of Power has [ conveyed ] approval for laying transmission line for evacuation of power to be generated from the project to Bikaner-II pooling stations, addressing execution challenges due to great Indian [ plastered ] GIV issue. Further, land acquisition is in progress in the respect of 600-megawatt projects in Gujarat and 100-megawatt project in Andhra Pradesh. NHDC, the subsidiary of NHPC, has fully commissioned 88-megawatt floating solar power project at Omkareshwar reservoir on 10th of October '24. With the commercial operation, COD, obtained on 29th of October '24. The cost of the project is INR 589 crores, and the tariff of the project is INR 3.22 per unit. NHPC has awarded the EPC contract for 200-megawatt grid-connected solar power projects Stage I, located in 600-megawatt solar park at Khavda, Gujarat to [ M/s ] Apollo Green Energy Limited on 5th of August '24. The cost of the project is INR 929 crores, and tariff of the project is INR 2.73 per unit. The project is expected to be commissioned by August 25. NHPC has awarded the EPC contract for 50-megawatt floating solar power project in Kerala with Kerala's West Kallada district to M/s Apollo Green Energy Limited on 26th of July '24. Further, the lease deed for transferring the waterbody or land was executed between NHPC and the concerned agency in Kerala, a company owned by land waterbody owners on 7th of September '24. The cost of the project is INR 260 crores, and tariff of the project is INR 3.04 per unit. The project is expected to be commissioned by February '26. NHPC has signed an MOU with the Government of Rajasthan during the Rising Rajasthan investor meet on 30th of September '24, with an investment plan of INR 50,000 crores. The MOU envisaged development of pump storage projects, renewable energy, solar, floating solar and wind power projects and battery energy storage system in the state of Rajasthan. NHPC is also exploring to develop pump storage projects in the state of Andhra Pradesh, Odisha, Jharkhand, Madhya Pradesh, Chhattisgarh, Gujarat, Tripura, Punjab and Maharashtra. We have submitted [ pre-feasibility] report of Indra Sagar Omkareshwar, 640 megawatts, [ Tekba 2], to 800-megawatt and [ Subpura 2 ], 1,500 megawatt pump storage scheme situated in Madhya Pradesh. Further prefeasibility report of Savitri pump storage projects, 1,800 megawatt; [ Chingari PSP ], 600 megawatts, situated in Maharashtra; [ Masinta PSP ], 1,000 megawatts situated in Odisha; and Kuppa PSP at 900-megawatt situated in Gujarat have also been submitted. For other projects, preparation of PFR is in process. The detailed project report for Savitri PSP is under preparation. This is all from our side. Now the forum is open for question and answer. Now I will hand over the mic to our Director Finance, Shri R.P. Goyalji, to -- for his address.

Good afternoon, friends. I'm going to share with you detailed quarterly and half yearly set of numbers which are detailed as is. The Board has adopted half yearly financial results for the periodended September '24 in its meeting held on 7th November '24, and the same has already been communicated to exchanges. Brief highlights of the financial results and important updates on the company are as under. During the half year FY '25, our power systems have achieved generation of 15,013 million units as against 16,797 million units generated in corresponding rate of the previous year, which is lower by about 11% or 1,784 million units. During second quarter FY '25, our power systems have achieved generation of 8,034 million units as against 9,010 million units generated in corresponding period of the previous year, which is lower by about 11% or 976 million. Our PAF of half year FY '25 stands at 82.68% against the corresponding previous period PAF of [ 91.93% ], which is about 10% lower. Our PAF for second quarter FY '25 stands at 84.87% against the corresponding previousperiod of 89.7%, which is about 5% lower. For half year FY '25, company earned revenue from operations of INR 4,969 crores as against INR 5,056 crores in corresponding previous period, which is about 2% lower by INR 87 crores. The decrease in revenue is mainly due to lower generation. During Q2 FY '25, company has earned revenue from operation of INR 2,551 crores as against INR 2,485 crores in the corresponding previous period, which is about 3% higher by INR 66 crores. The increase in revenue is due to increase in sales pertaining to previous years by INR 170 crores and unbilled revenue towards insurance and security expenses by INR 169 crores, which is further offset by a decrease in energy charges by INR 190 crores. And decrease is due to reimbursement of [ water sales ] by INR 85 crores. Other income for half year FY '25 is of the order of INR 739 crores in the comparison to INR 408 crores during the corresponding previous period, which is about 81% higher by INR 331 crores. This is mainly due to increase in realization of interruption loss against insurance claim by INR 155 crores, mainly registered Teesta-V power station. Further, there is an increase in provision, not to quite by INR 104 crores, which is mainly pertained to reversal of provision in respect to expenditure incurred on [ basal ] project, INR 99 crore and increase in dividend income by INR 55 crores -- INR 54 crores. Other income for Q2 FY '25 is of the order of INR 370 crores in comparison to INR 129 crores during the corresponding previous period, which is about 187% higher, at INR 241 crore. This is mainly due to realisation of business interruption loss against insurance claim by INR 138 crores pertaining to Teesta-V power station, and increase in dividend income by INR 67 crores. Half year '25, the generation expenses have come down around INR 915 crores to INR 595 crores, means by 320 crore, which is mainly due to noncreation of liability against water sales for the core systems located in the state of Himachal Pradesh, where the relevant [ data ] has been deemed unconstitutional by the Honorable High Court of Himachal Pradesh. And in the state of Sikkim, where management is of view that obligation to pay water sales beyond what has already been paid in best contingent nature. During Q2 FY '25, the generation expenses have come down to INR 397 crores to 313 crores, [ means ] by INR 84 crores which is against the same reason I just mentioned. During half year FY '25, the employee cost has gone up from INR 619 crores to INR 629 crores, means by INR 10 crores, which is almost flat. During Q2 FY '25, the employee cost has come down to around 321 crores to INR 318 crores means by 3 crores which is almost flat. During half year FY '25, there has been increase in the finance cost from INR 245 crores to INR 526 crores, means by INR 281 crores, which is mainly due to increase in interest from arbitration public court cases of INR 331 crores, which is further offset by decrease due to change in weighted average of INR 15 crores and decreased due to repayment of loans by INR 20 crores. As per [indiscernible] 24-29, the applicable interest on arbitration and court cases has to be recorded from the beneficiaries after CRC order, for which [ petitions ] are being filed. During Q2 FY '25, there has been increase in the finance cost from INR 156 crores to INR 298 crores, means by INR 172 crores, which is due to increasing interest on arbitration and court cases of INR [ 203 ] crores, which is further offset by decrease due to change in weighted interest by INR 7 crore. And decreased to repayment of loans by INR 9 crores. During half year F '25, amortizing expenses are the same at INR 553 crores as against corresponding period of previous year. During Q2 FY '25, the [ depreciation ] and amortization expenses have come down from INR 277 crores to INR 271 crores, means by INR 6 crores, which is almost flat. During Half year FY '25, other expenses have gone up from INR 709 crore to INR 899 crores, means by INR 190 crores, which is mainly due to increase in insurance expense by INR 108 crores; increase in R&M expense by INR 30 crores; and increase in CSR expenses at INR 11 crores. As per CRC regulation 24 29, the applicable insurance expenses and security expenses are recurrable from beneficiaries after CRC order, for which petition is being filed. During Q2 FY '25, other expenses have gone up from INR 344 crores to INR 489 crores, means by INR 145 crores, which is mainly due to the increase in insurance expenses by INR 64 crores and an increase in R&M expenses by INR 18 crores. During half year FY '25, tax expenses have gone up from negative INR 30 crores to INR 668 crores means by INR 698 crores. This is mainly due to the reason that during corresponding previous period, MAT credit of INR 529 crores was recognized. During this period, no MAT credit has been recorded, whereas MAT Credit of INR 221 crores. This has resulted in a negative impact of INR [ 221 ] crores on the PAT of the company. During Q2 FY '25, tax expenses have gone up from negative INR 273 crores to INR 360 crores, means by INR 633 crores. This is mainly due to the reason that during corresponding preparation, MAT Credit of INR 519 crores was recognized. During this period, no MAT credit has been recognized, whereas MAT credit of 141 crores -- has been utilized. This has resulted in a negative impact of INR 141 crores on the PAT of the company. During half year FY '25, we have earned PAT of INR [ 1,929 ] crores as against INR 2,500 crores of corresponding previous period, which is down by INR 571 crores or 23% approx. And the reason for decrease increase in the line item, we have just discussed. During Q2 FY '25, we earned PAT of INR 905 crores as against INR 1,447 crores of corresponding previous period. This is down by INR 542 crores or 37% approx. And the results for decreased increase in the line item we have just discussed. During half year FY '25, the incentive -- incentive on account of secondary energy and deviation charges were INR 27 crores, which is equal to the amount in corresponding previous half period. So this remained flat. During Q2 of FY '25, the incentive on account of secondary energy and deviation charges was to the tune of INR 16 crores, which is again equal to the amount in the corresponding previous period. So there is no increase or decrease on account of these 2 incentives. The PAF incentive for the quarter and half year is nil due to changing methodology for recognizing incentive income. The PAF incentive shall be recognized once the capacity charges of a particular power station is fully recovered. CapEx of INR 4,812 crores has been incurred during half year F '25, against target CapEx of INR 11,762 crores for the whole financial year '24-'25 on a consolidated basis. The company has paid at the rate of rate of 5% that is 50 pesa per equity share for the financial year '23-'24 in the month of September '24, which is in addition to interim dividend at the rate of 14%, that is INR 1.40 per equity share; resulting in total dividend of 19%, that is [1.90 ] per equity share. On the face value of paid up equity share of INR [ 3 ]. Other major highlights of the company are as under. On realization front, NHPC has received INR 4,588 crores from the [ windy ] states against sale of energy during half year FY '25 as compared to INR 5,065 crore in the corresponding period of previous year. Trade receivables as on September 30, '24 stands at INR 4,266 crores as against INR 5,970 crores as on September 30, '23. This includes INR 2,812 crores as unbilled debtors as on September 30, '24 as against INR 2,685 crores as on September 30, '23. The net receivable out of total reported trade receivable as on September '24 are reconciled as under. The reported trade receivables are INR 4,266 crores, which includes unbilled INR 2,812 crores, unbilled debtor INR 2,812 crores. So billed receivables was up to INR 1,454 crores. Out of that, INR 209 crores is on account of debtors converted into installment under electricity net payment surcharge rules [indiscernible]. So balance net receivables are INR 1,245 crore, which billed to the beneficiaries. And out of that, debtors more than 45 days are only INR 499 crores. So there is no issue on account of unbilled debtors' outstanding receivables. Unbill debtors mainly impact of AFC build and recover as per regulations 2019-'24 including security expenses of INR 756 crores. Unbilled sales for the month of September '24, which is INR 716 crores, impact of effective tax rate on return on equity of INR 459 crores, and energy shortfall of INR 376 crores. Net [ trade ] receivable as on 5th November '24 stands at INR 870 crores, which includes more than 45 days debtors of INR 118 crore only. This is all from my side. Now the forum is open for question and answer. Thank you.

[Operator Instructions] The first question is from the line of Ragini from Elara Capital.

Am I audible?

Yes. Now it is clear.

So sir, what is the underrecovery in Teesta hydroplant?

Yes, please. As you know, our Teesta pipe is down since October '23 due to flash floods in the Teesta basin. But our generation was -- our business interruption loss is fully insured for 1-year period. So 1-year period has completed in September '24. So after September '24, we will not be getting any business interruption loss from insurance company. And the [ whatever ] expenditure is being incurred, that will go to the profit and loss. So you can say there is loss of revenue in the support of Teesta pipe.

What is the amount you said, the loss? What's the loss amount?

Yes. Ragini, on annual basis, the total AFC of Teesta-V is around INR 450 crores. And the recoverable amount from insurance companies, INR 410 crores, out of which we have already recovered INR 250 crores so far. So if you consider as annual basis, the total loss on account of Teesta-V without the business interruption loss, BI loss claim, would be around INR 450 crores. But since for 12 months in the indemnity period, our insurance policy is there, so recoverable amount stands at INR 410 crores. So in a way, you can see that under recovery is around INR 40 crores to INR 50 crores only.

Okay. And when will this plan begin operations?

As per our estimate, this plant will commence generation by December '25. Reason being this suffered a second incident in August '24.

Okay. And sir, for the projects, for which the PPA [ information ], for which you have signed a Power Purchase Agreement. Is there any issue in signing the power supply agreement for the renewable project as renewable energy implementation energy?

So hydro power systems are concerned, our power is totally tied up, and there is no issue of signing of PPA. But in case of renewable energy for solar or hybrid, wherever the solar power is in the range of INR 2.60, 2.65, there is no issue. But in case of some of the tenders in REA mode, we are having facing problem signing PPA But there is no risk from election side. Because we are implementing these projects in [ REA ] mode only.

SP1 So is there a risk of cancellation of PPA for such renewable projects.

No, no. Whatever PPA have been signed, they are being honored. But in case of futures in REA mode, if tarrifs is viable range, PPA will be certainly signed. But if the tariff is high, certainly the [ cost ] help to sign.

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

Sir, A couple of questions. Firstly, on sir, regulated equity. What is the regulated equity you're expecting post commission of JV stand-alone projects by, let's say, in the next 3 to 4 years? And second question is, sir, we have significant CapEx ahead over the next 7 to 8 years. So how are we placed in terms of cash flows to meet this equity CapEx contribution? That is the second question.

Yes. Rupesh, so since we have disregarding regulated equity, you are aware that currently, the company is placed at the regulated equity level of almost INR 13,000 crores, right, now going forward, we have the capacity addition from Parbati-II, Subansiri, then Rangit-IV, then a couple of projects from our JV side, subsidiary side also. So if you look at the -- year-wise, the capacity addition and their result in regulated equity, so I can share with you, by end of FY '25, the after commissioning of Parbati-II, our regulated equity will be INR 16,500 crores from the current level of INR 13,000 crores, right? Then in FY '26, after commission of Rangit-IV, the resultant regulated equity will be INR 17,000 crores. And by FY '27, after commissioning of Subansiri -- full commissioning Subansiri rizek and Pakal Dul 1,000 megawatts, the resultant regulated equity will be INR 3,365 crores. And by FY '28, which is a major year from the commissioning perspective, we are going to commission 3 projects, [ discussing ] 500, Kwar 514, [ Raqba ] 850. So regulated equity will be INR 28,590 crores. So meaning, thereby, in next 4 years, our regulated equity is going to be more than double. So current level of INR 13,000 crores is going to be INR 28,500 crores.

Regarding your question about cash flow for incurring CapEx, our present debt-to-equity is in the range of INR 0.8 crores only. So there is no issue of cash flow after commencing of these ongoing projects. We will have sufficient internal accruals for increasing the equity in the upcoming projects. And for raising debt, we have no issue because our -- we are very under-leveraged.

The next question is from the line of Anuj Upadhyay from [ Investor Capital ].

Sir, if you can share details on the secondary charges, UI and incentives for the quarter in comparison to the last year corresponding quarter, that would be helpful. That would be...

During this half year, we have earned secondary to the tune of INR 3 crores as against corresponding period of INR 6 crores. And deviation charges, we earned INR 24 crores in this half year as against INR 21 crore in the corresponding previous period. And for the quarter, the secondary energy is again [ INR 3 crores ] as against INR 6 crores in the corresponding previous period. Deviation charges are INR 13 crores as against INR 10 crores in the corresponding previous period. Any other detail?

Okay, nothing on incentive, sir?

As I told you, we have changed the system of recognizing PAF incentive, PAf incentive will be recognized after achieving [ NPA ]. So whatever the PAF incentive will be, that will be realized in the fourth quarter, majority in the fourth quarter.

Okay. And sir, just a follow-up on the previous question where you are referring that the insurance cover is for the 1 year on the interruption for the Teesta. So as against the INR 450 crores of our fixed cost, we have recovered INR 410 crores. And INR 40 crores is roughly under recovery until September. But...

That is INR 450 crores. We will be recovering INR 410 crores after [ absorbing ] INR 40 crore on account of excess clause. So out of INR 410 crores -- yes, out of INR 410 crores, we already INR 250 crores up to September quarter. And balance INR 160 crores will be recognized in the coming period.

Got it, sir, But this is -- this insurance cover is only for the 1 year since the plant has gone for the outage, yes. So sir, from here on, as you mentioned, the COD is expected for -- in December '25, that is say, another 15 months from now. So is it fair to assume that for next 1 year or 15 months, your under recovery would cross closer to around INR 450 crores, INR 500-odd crores.

Yes, sir. So you correctly understood.

And there's no cover for this.

Yes, yes. No, cover. Because cover is limited to 1 year only.

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

Sir, 1 more question, sir. Can you just give us update on the Dibang project, sir, and any awarding of EPC tender for the Sawalkot and [ Dugar ]?

For Dibang project, the works are, as I explained, the pipe contract packages out of the 7 contract packages. So 5 packages have already been awarded, and the works are going well on the project site. We have established the permanent access, which is without interruption to the project site. So that is one. And the progress on the various underground structures, the diversion tunnel, these are going well. Presently, we are in the process of tendering the dam contract, and we are hopeful that by the -- another 2, 3 months, we will be able to award dam package. And thereafter, only 1 package will be left, hydromechanical. So that will take some time, and it is required to be awarded after few months. So no issue. So Dibang is going well. No problem we have there. Any more questions?

Sir, regarding this EPC tender for Sawalkot and Dugar.

So Sawalkot and Dugar. Dugar, we have already floated tender for civil works. And it was likely the last date was November -- 11th of November. So just at the request of few bidders, so we have extended the bids. Now we have recommended to extend the bid by another 3 weeks. And Sawalkot, we are just in the process of floating the tender for infrastructure and diversion tunnel works and also for the tender -- floating tender for the consultancy works. So consultancy works for design and drawings of the dam package.

The next question is from the line up [ Kaushal ] from Antique Stock Broking.

Sir, I joined the call a little late, so pardon for repetition. Can you share our listed PAT number for this quarter and the same period last year?

Yes. So in that adjusted PAT adjustment, you can just consider one item, which is reversion of provision of [ balsar ], which is around INR 104 crores. Apart from that, all other items are regular in nature. So accordingly, you can find out the [ adjusted ] PAT.

Mr. Kaushal, our operating profit is comparable with last year. The dip is only on account of MAT credit, which we recognized last year and which is not available in current year. Otherwise, our operating profit is just comparable with last year.

Okay. And then this INR 100 crores which you mentioned, this is for -- I mean, like from 905 crores...

INR 100 crores is on account of reversal of one provision, which we created in past and which has been reversed this current year. Because it is recoverable from the Government of India.

Okay. So this is more like a [ prior ] period income booked this quarter.

Yes, yes.

Okay. So to that extent, I mean, like ideally from INR 905 crores, we should subtract this INR 100 crores to come to adjusted PAT. Is that...

No. INR 905 crores does not consider this INR 100 crores. INR 100 crores was recognized in first quarter.

Sorry. Okay. Got it, sir. Got it. And this other income increase that we see, so that is primarily the insurance claim that's getting booked out here? Or..

Yes, it is on account of business interrupts slope in response to Teesta-V. And dividend income which is higher by 54 crores in current quarter.

Okay. Okay. And in the call, you did mention that for this insurance claim, INR 250 crores is booked until now, so which means the incremental to reaching INR 410-odd crores, which is almost like INR 160-odd crores. So we'll be booking in the next 12 months? Or..

INR 160 crores will be booked in the next 2 quarters on the basis of certainty, we received from insurance company. For INR 250 crores, we have already either amount has been received or we have received their [ acceptance ]. But for INR 160 crores, we have to receive the consent of the insurance company in coming period.

Right. And then this AFC is roughly INR 450-odd crores. But as far as expenses is concerned, say to the extent of -- I can understand like there won't be any O&M since the project is not in operational. So what are the fixed charges that you need to incur? I mean, then that probably has to be there for the next, let's say, December '25. So what are the fixed charges that is incurred?

In our case generally it is INR 6 crore. Operation & maintenance staff is there, which will remain there. And interest finance charges will be there, depreciation will be there. So 90% cost are in the nature of INR 6 crores, and it will be incurred in the coming period. There is no variable [ parties ] in our case.

No, no, my question was more to do with like because this AFC has ROE component. So I can understand there won't be any ROE. But there are certain fixed costs which will lead to under recovery, maybe like interest you need to pay to the banks, [ depreciation ] accounting, you will continue. So to that extent, I was trying to understand. [Technical Difficulty]

Am I audible, sir? Hello. Ladies and gentlemen, the line for the Chairperson seems to have disconnected. Please hold while we reconnect. Ladies and gentlemen, thank you for patiently holding. We now have the line for the management reconnected.

Mr. Kaushal?

Sir, sir, one question. On this INR 450 crores, the AFC, what is the [ ROE ], return component?

INR 228 crores. ROE is INR 228 crores. Annual exposure in the range of INR 220 crores.

Got it, sir. And then this [ Parbati-II ], again, I think there is quarter cut delay. That's fair to understand, right, commissioning?

As per our plan, it was to be committed December '24. But hydro has some challenges. That's why we are setting our goal posts to February '25. And we are starting -- filling the reservoir, and we are testing gates, et cetera, of the reservoir, dam. And our balance of activities are being completed. And it is very much hopeful that we will be commissioning this project in February '25.

Right, sir. And then what could be an ideal phasing of this 4 units? I mean, February and then how...

All the units will be commissioned at a time, single stroke, because units have been tested, and these are -- have been operated one by one with the available water. So commission will happen in single stroke only.

Okay, sir. And then this -- even for Subansiri [ newer ], the quarter 1 of FY '27. So again, it is a one stroke or it is phasing will be there?

In Subansiri, as per our plan, we will be commissioning 3 units by March '25. And rest 5 units will be commissioned in phased manner, and the complete [ project ] will be commissioned by May '26.

The next question is from the line of [ Nikhil ] from UTI Mutual Fund.

Sir, my first question is regarding the note 8. So we are basically booking the insurance claims. And then again hear expanding them through to other [ expense ]. Can I understand why we are doing that.

Mr. Nikhil, it is as per accounting guidelines or accounting miscellaneous. The loss is to be hold under other expenses. And these 2 activities are separate activities. [ Loss ] of proceeds is one activity, and recovering the insurance claim is a separate activity. So if you recognize the claim on account of insurance is being shown under other income.

So of the total AFC of around INR 450 crores, how much are we recovering to the insurance?

Out of INR 450 crores annual AFC, we are expecting to recover INR 410 crores after deducting excess [ cost ].

So INR 40 crores.

So INR 40 crores will be under recovery. So out of INR 410 crores, we have already recovered INR 250 crores. And balance INR 160 crores, we will recognize in the coming balance period of this financial year.

Understood. And sir, my second question is regarding if we were looking to monetize and securitize ROEs for Dulhasti.

Yes.

So what exactly are we -- are we on track on that? And how much cash flow should we expect from that?

We have already completed this exercise, and we have realized INR 2,300 crore-plus on account of this securitization.

INR 2,300 crore. So How many years have we securitized?

8 years.

We have securitized for 8 years period, and the total amount which we have realized is INR 2,384 crores.

INR 2,384 crores. So the regulated equity for this plant will be somewhere around INR 1,500-odd crores, right?

No, no, in case of dulhasti, the regulated equity is INR 2,000 crores, [ INR 2,050 crore ].

INR 2,000-odd crores. Okay. And you touched upon this point earlier as well. For solar plants, you mentioned for tariffs somewhere around 2.6, you're getting the PPAs. But even for the complex projects, the FDR is on the hybrid project, the PPA signing, is it taking some time? Because from the presentation, I can see that a lot of them are not signed yet.

Yes. For FDRE, we are getting the tariff of INR 4.73 or INR 4.75, and we are getting DISCOMs, the PPA are being signed, only 1,200 megawatt was pending. So we are in [ discussion ] with Uttar Pradesh DISCOM. And we are hopeful that within a short period, we are going to sign the PPA -- remaining unsigned capacity.

So sir till date, as intermediary, how much capacity have we tendered out and for how much have we signed the PPA, if you can give us.

Yes, yes. So just I will give.

We have tendered around 9,000 megawatt capacity. Out of that, we have signed PPA or we have received consent for around 7,000 megawatts. For balance, we are in touch with DISCOMs, and we are hopeful to receive their consent. Otherwise, also, there is no risk to NHPC because this is in [ REA ] mode only. We have no capacity in this.

And we will be earning INR 7 pesa per unit after [ DISCOM ].

Yes, yes.

Thank you. Ladies and gentlemen, due to time constraints, that was the last question, I now hand over to Mr. Rupesh Sankhe for closing comments.

Yes. We thank the NHPC management for giving us an opportunity to host this call, and we really appreciate for the detailed presentation there on the website. And we also thank all the investors and the analysts for joining this call.

Finish. Thanks a lot, Rupesh.

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