NLC India Limited (513683) Earnings Call Transcript & Summary

Ladies and gentlemen, good day, and welcome to the NLC India Limited Q2 FY '22 Results Conference Call hosted by DAM Capital Advisors Limited. [Operator Instructions] Please note that this conference is being recorded. I now hand the conference over to Mr. Mohit Kumar from DAM Capital Advisors Limited. Thank you, and over to you, sir.

Thank you, Faizan. On behalf of DAM Capital, I welcome you all to the NLC Q2 FY '22 earnings. We have with us Shri Rakesh Kumar, CMD, along with the senior management team of in NLC India Limited. Without delay, I would like to hand over the call to the management for the opening remarks, followed by Q&A. Over to you, sir.

Thank you very much, Mohit Kumar Ji. I'm Rakesh Kumar, CMD, NLC India Limited. I'm joining you for this call from Neyveli along with Shri R. Vikraman, Director, HR, additional charge Mines; and Shri Shaji John, Director, Power; and Shri Jaikumar Srinivasan, Director, Finance, additional charge Director of P&P, along with senior officials of NLCIL. I welcome you all for this conference call and would like to mention a few highlights of the quarter and half year ending September 30, 2021. First highlight is stand-alone power generation during the half year ended 30th September 2021 is 13,043 million unit as against 9,490 million unit in the corresponding period of the previous year, registering a growth of 37%. Consolidated power generation during the half year ended 30th September '21, is 15,619 million unit as against 12,100 million unit in the corresponding period of the previous year, registering a growth of 29%. Renewable energy power generation during the half year ended 30th September '21 is 1,177 million unit as against 1,075 million unit in the corresponding period of the previous year, registering a growth of 10%. Renewable project, CUF, during the half year ended 30th September is 17.81% as against 16% in the corresponding period of the previous year. Lignite sales during the half year ended 30th September 2021 is 18 lakh as against 8 lakh in the corresponding period of the previous year, registering a growth of 130%. On commissioning of Talabira coal mines, coal sales during the half year ended 30th September 2021 is 19 lakh tonne with revenue addition of INR 248 crores. Robust collection of dues resulting in reduction of debtors by 48% from INR 9,249 crores on 30th September 2020 to INR 4,895 crores on 30th September '21. We have also bagged 510-megawatt solar power project from IREDA under 5,000-megawatt CPSU scheme Stage 2 Tranche-III scheme. And we have, as we intimated earlier also, bagged 150-megawatt wind solar hybrid project under tariff-based competitive bidding from SECI. And some key highlights of the financial performance of H1 '21-'22 that when we talk about the consolidated results, total income of the group during the half year ended 30th September 2021 is INR 6,536 crores as against INR 5,575 crores in the corresponding period of the previous year, registering a growth of 17%. Profit after tax for the half year ended 30th September 2021 is INR 555 crores as against INR 405 crores in the corresponding period of the previous year, registering a growth of 37%. Stand-alone financial highlights. Total income of the company for the half year ended 30th September '21 is INR 5,377 crores as against INR 4,236 crores in the corresponding period of the previous year, registering a growth of 27%. Profit before tax before exceptional items for the half year ended 30th September is INR 1,305 crores as against INR 690 crores in the corresponding period of the previous year, registering a growth of 89%. Profit after tax for the year ended -- half year ended 30th September '21 is INR 567 crores as against INR 313 crores in the corresponding period of the previous year, registering a growth of 81%. So I invite you for the questions.

[Operator Instructions] The first question is from the line Shubhra Dwived of from SBI Life.

Just if you can elaborate more on how this reduction of debtors happened? So you had received around INR 4,000 crores, I think, in the last financial year as a part of the first tranche of Atmanirbhar package. And so this year till date, how much you have received? And if there is any further amount that you will -- that you're expecting?

Thank you for your question. This is Director Finance Srinivasan. In fact, as has been told in the highlights by the CMD that there has been a record collection. If you consider the position as on 30th September last year, the amount was INR 9,249 crores. And this has been brought down to INR 4,895 crores as on 30th September 2021. Now this has been because -- partly because of the Atmanirbhar scheme that has been -- that was introduced by the Central Government, where we have collected INR 3,912 crores additionally for NLC and another INR 1,200 crores was for the NTPL. So total, if you consider NLC plus NTPL, we had a collection of INR 5,133 crores under Atmanirbhar during the last year that is 2021. During the current year, up till date, INR 2,041 crores has been collected under Atmanirbhar for NLC and another INR 296 crores for NTPL, which totaled INR 2,357 crores. So a total amount of INR 7,762 crores is the collection under Atmanirbhar if you consider NLC plus NTPL. Apart from this, we had also supported our beneficiaries in terms of giving them the option of paying under the bill discounting. And if you take these 2 years into consideration, we started off modestly. In the '19-'20, there was a collection of INR 637 crores under bill discounting. During '20-'21, INR 1,541 crores. And during the year '21-'22, we were able to roping even the other beneficiary from Karnataka and Telangana. So the total gross was INR 2,497 crores. So a total of INR 4,676 crores have been collected under bill discounting. Similarly, NTPL was able to collect INR 956 crore under the bill discounting since. So this, together with Atmanirbhar scheme, has helped us to boost up our collection. The collection efficiency, for instance, of NLC for '20-'21 was 117%. And during the current year up to September, I believe it is 126%. So similarly for NTPL, the collection efficiency has been 185%. So all this put together, we have collected the dues to a great extent. And if you talk about the dues as on date, INR 4,931 crores is NLC dues as on October 31. Out of this INR 1,300 crores -- INR 1,302 crores is dues which are below 45 days, which means that giving them -- it is not due. Normally after a billing, we give them 45 days grace period. So if you take a snapshot of 31st October, INR 1,302 crores was not due less than 45 days. So the net due is around INR 3,629 crores. We are following different options for getting this. One is helped by some of the notifications and guidelines of the Ministry of Power. More so from the month of February, the beneficiary discounts are being increasingly pushed to be very compliant in payment because of linking the scheduling of power to both default impairment and also for maintenance of letter of credit. So this has also helped us to deal with the current dues. The current -- if you similarly take the current dues, current dues, they have more or less everybody is saying the current dues, barring 1 or 2 DISCOMs. And as far as the past dues are concerned, a predominant amount of the past dues have been collected. And the balance is balance is some of the dues, which are subject matter of determination, either at the Appellate Tribunal. Some of this we are trying to get some kind of installment. So we are in touch with all the DISCOMs to find a way to get this amount also.

So summarily, supported by the Atmanirbhar scheme and some reforms in the regulatory framework and constant continuous pursuing, monitoring and taking up the issues of dues with the beneficiaries top management, their situation is significantly improved.

The next question is from the line of from [ VK Sonthalia ] from VK Associates.

Wish you a very good set of numbers, congratulations for that. My question, from the 1st of October, government has allowed 50% sale of coal from captive coal mines. And under the scheme, how much coal has been sold by NLC in the month of October and November? And at what price? And is this trend likely to continue in the coming months?

Yes. I will request that Mines in charge to respond to this.

Thank you for your question. Actually, the enablement is 50% of the coal produced -- total coal produced after the induce It is not that total mandate has been given. However, we have taken the approval of the Ministry of Coal for going beyond the 50% also depending upon our production. As such, after the issue of this amendment and enablement, we have gone for a sale of around 5 lakh tonnes, keeping the production target up to March into account. So where the maximum base price which it fetched is INR 1,884 crores, plus taxes and other duties as applicable. So we'll be depending upon our further production ramping up as required for the power sector. Any additional coal available after meeting the India's requirement and power sector, we'll again be sold through the e-auction in the second another tranche. So it meets requirement.

In the month of October, 1 million tonnes were sold through e-auction. And in the month of November, 500,000 tonnes were sold through e-auction. In addition, 1 lakh tonnes of lignite was sold in month of October. And in month of November, also 1 lakh tonnes of lignite was sold. So all these sales were under the scheme or were it outside the scheme, sir?

So as far as lignite is concerned, it is within the scheme because we've got enough cushion what -- against our production, this 1 lakh tonne or 2 lakh tonne in the month of October and November are well within that. We have not got any additional or special permission. As regards to coal sale is concerned, it is well within this enablement, we have done in the month of November only 5 lakh tonnes. And October, we have not done any coal sales.

Although we issued the notice, but...

We have not done...

That was deferred, then we reduced it from like 1.1 million to [ 0.5 ] million, yes.

Sir, in the coming months, as you ramp up the production in Talabira coal mines, these quantities which are sold through e-auctions, are they likely to increase in coming months, maybe 2, 3 quarters? And once the Talabira power project comes into play, will you be having any spare coal to sell through these e-auctions?

As of now, we cannot have predictions, but we are trying our level best to ramp up the production. We will be having a clear picture in the coming weeks.

So once the Talabira power project comes into operation in maybe 2022 and once the UP government project also comes into operation, will you be having spare coal to sell through these e-auctions? Or will you be able to use the entire coal produced?

Talabira power project is not likely to come up by 2022 Because still the tendering is in the advanced stage...

No. You've given date of 2024. So I'm referring to 2024.

It may go up to 2026. And once it comes up, we are not envisaging surplus coal. In the initial period only, we may be having surplus coal.

Okay. And when is the UP power project is likely to be coming to operation?

UP Power project, Ghatampur power project is progressing. We are closer to the first unit commissioning. However, there have been some delays witnessed recently. Our Director Power has visited the site, and he has taken a review of the project. I'll hand over to Director Power now.

Thank you. This is Shaji John, Director of Power. As CMD was telling, there are some technical delays on the project. But otherwise, we are planning to commit the first unit commissioning we were targeting by end of March. Some delays are there, but still we are confident that we will be doing the synchronizing sometimes in February or March. Though the commissioning may get a little more delayed because there are several more works to be completed in coal line front as well as the railway setting. So maybe the commissioning will get complete 2, 3 months or so delayed. However, we are hopeful of doing the synchronization of the unit by maybe in the month of February and March 2022, that is next year.

So one more last question. The coal requirement for this UP power project has been tied up with Coal India Limited? Or will the Talabira or NLC be supplying coal to this UP power project?

For the Ghatampur Thermal Power Plant, the link to mine is already there at South Pachwara coal block. There are the mining activities, they're are on the stage of the progress, but it may take another 3 or 4 years to commit it into full fledge. Till that time, for the Ghatampur Thermal Power Project, we will be meeting coal requirement from our Talabira project -- Talabira mines. Yes, but initial commissioning stage, we have already got tie from Coal India Limited for the commissioning activities, we have got sufficient coal for initial commissioning of all the 3 units. And further where the unit goes into operational stage for the initial years, we will be sourcing it from Talabira and later on, we will be moving on to the [indiscernible] that is the Pachwara south coal block.

[Operator Instructions] Next question is from the line of NM Modi from Individual Investor.

My query was regarding the insurance claim, what is the latest situation over there?

Yes. Insurance claim, still the claims are under process. We have claimed for incident 1 on 7th May incident -- insurance claim to the tune of INR 76 crores. And incident 2 on 1st July 2020, the claim lodged by us was to the tune of INR 177.62 crores. Insurance company has although acknowledged the claim to the extent of INR 50 crores only, and we have received INR 9.5 crores so far. But we are pursuing, and we are making efforts to get the claim realized.

[indiscernible] was very slow in my opinion here.

Insurance claims processing is a very slow process. We are trying to take up the case with their senior management also. We are expediting it.

Mr. Modi, does that answer your question?

Yes, yes.

The next question is from the line of [ JK Jaine ] from JKG & Company.

Congratulations for a very good set of numbers. One thing I want to get clarification about this transfer pricing for the -- because your company has got a mining as well as forward producer. So how this transfer pricing is being done? Whether it is at the market-related rate? Or is there any system because these power rates are fixed under regulatory system. So how these are calculated? Can you give some brief idea?

Yes. Thank you very much for your question. Our lignite and coal are under the regulatory jurisdiction. And CRC is not the authority to decide the transfer pricing. For lignite, already -- the draft regulation is already issued. And based on that, we were advised to file the petition. We have sought more time because our truing up has not been finalized for the previous 5-year period. So on that, CRC has granted us the time extension. And for coal, we are in the process of preparing our petition and soon we'll be filing the same with CRC.

So that means both are separate businesses. While they're calculating the rate for your power, there is one transfer pricing for lignite and power -- coal to the power production producer. And then because recently, the coal prices has gone up fold and lignite prices has gone up manyfold, I would say, at least 100% price rise. So whether that will benefit the company or not -- that's not going to make any difference to the profitability of the NLC?

To the extent of the coal, which is tied up for the end-use plants in case of Talabira mines at present NTPL plant, coal pricing will be regulated as per the regulation. However, for the surplus coal, which is sold in the market, we are getting a higher price. As our Director Mines additional charge, Vikraman Ji has informed, we have recently sold 5 lakh tonne of coal at INR 1,884.

So in a nutshell, it means that with the increase in prices of lignite and coal, the company is not going to get benefit out of it. If a layman understanding the -- because the lignite and coal prices has gone up, if it is consumer electricity producer...

So long as the coal and lignite is used for our own captive plants, we are using and selling the power, we are getting benefited by way of competitive tariff because we don't have to procure lignite and coal from any other source. But as far as sale of lignite and coal is concerned, we are able to get the -- realize the market price for the surplus coal and lignite sold in the market.

So what will be the difference if the competitive rate -- or I think whether the company is going to get additional benefit because of this price rise of lignite or things or it's as usual -- business is as usual for you?

Yes. Director of Finance, please.

Yes. No, it's a very interesting question. See, as per the CRC terms and conditions of tariff, you're -- as you rightly said, there are a set of norms. One for the purely determining the tariff for your thermal plants. And more recently, CRC has also stipulated how for an integrated plant like NLC or elsewhere, in the integrated plant, what would be the methodology for calculation. So we will be going as further because the transfer prices basically will be determined on a cost-plus basis, applying some prudence check. So that explains the business as a usual scenario. But your question -- next question was whether there is some arbitrage opportunity in case you are selling this surplus coal or surplus lignite? Let me come to cold plus helped by this recent enablement about selling surplus coal, look, right now, the Talabira is the only plant -- the only mine owned by NLC Captive mines. So predominantly, it is to be used for one of the running plant, which is Thoothukudi in Tamil Nadu, 1000 megawatts. And for the upcoming plant, which is the project -- power project in the formulation. However, meanwhile, if there are some surplus production and we sell it, definitely, the company will be benefited by that. But some of the proportionate benefit should also be passed on to the end use plant. So in that sense, some part of the benefit will definitely improve the company's bottom line and some of it will again be helpful in reducing the tariff for the end-use plant, which would stand competitively in the [indiscernible] dispatch. As far as lignite is concerned, yes, lignite again in case of lesser usage for the end-use plant because of surrender by the beneficiary due to lesser demand because we cannot stop the lignite beyond a certain point, we may be, not by design, but by default, sometimes we are force to sell this. And whatever is the price, which we get, that could be benefited, again, improve the company's bottom line.

In any case, there is no question of any super profit because of these price rises of coal and lignite that industrial once can say. A company like you...

See, in a cost-plus regime, there is no avenue for super profits. There are some incidental profits because we have not bagged any of this project on a competitive bidding basis. So the whole philosophy -- underpinning philosophy of the cost plus is, you should get your costs reasonably and there are some efficiency norms we should -- you should meet even to get entitled to that cost plus.

I would like to mention here that CRC has issued the lignite price guidelines in September 2021 in which they have reduced the return on equity from 15.5% to 14% as we requested for 15.5%. So they have reduced the return on equity.

So that way-- the profit may come down.

Yes, slightly, it will have impact on our profit, yes.

So -- because there are a lot of issues are pending for last 5 years, the rate fixations and all these things. So ultimately, when all these are fixed, you're going to get back some money or you have to refund all the money already realized?

In regulatory business, especially in power sector, as you know, that the petitions are taking a longer time, sometimes fixing the lignite price for the period 2014 to '19, the price was finally decided in 2017. So it took more than 2 years -- 2.5 years. So this is a cycle. And we cannot say that what will be the net outcome because whatever claims we have lodged, petitions we have put up and in case of any disputes, that fight is going on. Some cases are pending in CRC and then accordingly, based on the outcome, we will come to know whether it is a gain or loss in some cases. As far as our accounting is concerned, we have adopted a conservative accounting that based on the outcome of any decision of the regulatory body, CRC [indiscernible] we align our accounts accordingly. So to that extent, it is a conservative.

The next question is from the line of [ Sham Garva ] from Garva Investments.

In the month of October, there was an option -- e-auction plan for 11 lakh tonnes of coal. As of -- as you have told recently, it was canceled. In November, 5 lakh tonnes, no through tender was floated, okay, If I understood correctly?

I just wanted to inform you that I said that this 11 lakh tender was deferred and finally, reduced from 11 lakh to 5 lakh.

Okay. Means the surplus coal, which we are selling, it has been reduced from 11 to 5 lakhs?

No, no. It is not like that. Although the production of coal has ramped up dramatically, last year -- last financial year, we have produced only to the extent of 1 million tonnes, whereas in this financial year, although our mining plan was mentioning 4 million tonnes, we enhanced the internal target in the initial of the year itself to 6 million tonnes. But keeping in view the coal crisis in the country, we have augmented our production. For 1 million tonne, if you see the average will be something like 3,000 to 4,000 tonnes per day. But now at present, we have ramped up to 30,000 tonnes -- up to 30,000 tonnes also per day. And we have started giving coal to NTPC recently just to tide over the situation.

So that maybe the reason for reduction in the auction only.

Yes. So depending upon the situation, we will come out with the future auctions also.

So sir, the sale of coal to NTPC, how the rate has determined?

Presently, the coal is supplied to NTPC. The rate is under finalization. It started for [ tiling ] up our situation. So that rate and other terms, conditions are still in the process of firming up.

Okay. So I presume it will not be the market determined rates.

We are talking to them. Of course, it cannot be at market related, but we will see what can change.

Sir, in that case, sir, my next question is, in quarter 3 and quarter 4, what is you are feeling how much coal we are expected to sale in the market through e-auctions? Any idea.

As of now, we are not having a clear picture because we did not plan for this much of production. And although we are trying to ramp up, it depends on how much enhanced production we are able to achieve. And depending upon that only and how much NTPC is able to take under the arrangement, based on that, we will be able to decide.

The next question is from the line of Dinesh Rao, Individual Investor.

Congratulations on a strong set of numbers. My question is, sir, can you please explain the capital expenditure that is required for the -- your planning for this year and in the next year? And also, can you give an outlook on the performance, sir, for the next half year and also the next year, sir?

Thank you very much. Rameshji? Mr. Ramesh?

Dinesh.

Mr. Dinesh. Thank you very much, Mr. Dinesh, for your question. Our capital expenditure planned for the current year is INR 2,061 crores for various projects. And for the next year, we may -- we have fund of our CapEx plan to the tune of around INR 3,000 crores. So -- and the second question, you said that what is the outcome?

Outlook.

What is the outlook for the next half of this current financial year.

Yes.

So looking to the changes in the environment, our annual plan has now changed because the numbers have changed because of the ramping up of the coal production and the ramping up of the power generation also. So we are in the process of formulating our revised budget, still the numbers have not yet been firmed up.

Okay. Sir. Sir, actually 5-year plan, can I know the -- like is the CapEx being met to that plan? Or is it deviating from that plant? On your website, corporate plan NLC India Limited.

Yes. You are right that we had made a very ambitious corporate plan to have an outlay of 1,29,000 crores for a period of 10 years. Although in the initial years of that plan, which we started in 2015, we could ramp up our CapEx from INR 1,000, crores, INR 1,500 crores level to INR 6,000 crores, INR 7,000 crores also. But after exhausting our resources, we were looking for equity and that could not be arranged. And -- but at the same time, the scenario in the country has also changed. Thermal power stations and the greenfield project of thermal power have been facing the challenges, and we faced the concern of the beneficiaries on account of higher tariff and the cost of the project also. Therefore, these uncertainties have changed our plan. And we have mellowed down, we have reduced our base for the time being, and we are now gearing up to enter into renewables and firming up our corporate plan after a review.

Can you -- as a request from my end is, can we get an updated plan on this, sir, corporate plan on the website?

Yes. As soon as it is firmed up, we will post it on the website.

One more question is, sir, what is the debt obligation, sir, during this year and during the next year?

Debt obligation. During the current year -- you want to know during the current year?

yes. Current year and term loan repayment during the current year and the next year, sir.

Yes. So during the current year, our repayment is to the extent of INR 1,692 crores. And next year also, it is in the same range because we are not changing any debt plan so far. Of course, in case we go for solar project execution, depending upon the additional loan taken, we will be having -- but the repayment will not get affected, but interest will be paid.

Okay. And sir, one more doubt -- query, sir. How will the CapEx will be funded, sir, the planned CapEx that you have told me just now? How will it -- what is the...

CapEx plans, which we are preparing, these will be funded only by way of internal generation and loan arrangement.

As per the debt equity plan ratio?

Debt equity plan, yes, depending upon what mix we have considered for bidding the solar. And based on that, we will be adopting the debt equity ratio.

As per the rating report, there's a INR 15,000 crores of CapEx is planned in the next 3 years. So if you take roughly INR 4,500 crores per annum. So is that -- will that be able to be achieved, sir?

This INR 15,000 crores CapEx in the next 3 years is after initiating the award of Talabira power plant and solar projects. And in case these are awarded, before awarding, we will have a tie-up. We will have a clarity as to how the funding will take place. And we will commit only after having the financial clearance.

The next question is a follow-up question from the line of [ JK Jaine ] from JKG & Company.

This is in response to your reply to the question that you are -- you are giving coal to NTPC. And the price is not yet determined. But as per income tax factor, the regulatory authorities, you have to sale goods at the arms and land price. So you can't say that you have to say that coal prices have to be market-related -- the coal prices has to be market related. companies, both are different companies. Shareholders are different. So when the opportunity is there to have a good price of coal, so the shareholders of NLC should get good price. If the prices come down, you're not going to get the benefit of that.

Yes, Mr. Jaine, thank you very much for your question. We understand -- and this coal was given to -- we commenced supply of coal to NTPC on the advice of Government of India to tide over the situation. And as you are aware that there was a coal crisis. And there were -- there are 2 NTPC power plants nearby, which could be given additional coal from this mine. Therefore, this decision was taken. We are very much conscious to the fact that this pricing should be at arm's length. There are various considerations that this extra -- permission of extra coal is given by Government of India in order to tide over this situation. So we have to take a call. We have to be guided by Government of India also in this regard. We will take a prudent decision in this regard.

Further to it because this has become all custom because when earlier there used to be government subsidy of oil sectors, in all these sectors. Today, the steel prices are quite high. So when you are buying steel from sale, they're not going to give you at their cost price. So it's my -- I put my position to this fact that why your shareholder is not put at a loss. Because NTPC is also going to make a lot of money out of the electricity generated. The steel authority is also making a lot of money. Tata Steel is also making a lot of money. Why NLC? Why NLC? Because the shareholders, the price at one point of time was INR 170. Today, the price is INR 45, still the price of NLC has not increased to that extent, whereas the prices of other power companies like Tata Power has increased from INR 40 to INR 250. So it is your -- also your duty as the CMD that you should put your opposition to all these things.

Mr. Jaine, I just want to inform you that we are conscious of this aspect, and we are already discussing with NTPC to have a swapping arrangement of coal for our NTPL plant, which will help us to get cheaper coal because, otherwise, 30% of the NTPL requirement is -- was required to be fulfilled by imported coal, which is very, very costly. So we are conscious about this, and we will do our best in this regard.

Another thing because this company has not -- earlier, it used to pay a dividend of INR 7, INR 8. Previous year -- earlier year next -- previous year, they have reduced to INR 2. So because you have got a lot of payments from debtors and all these things, so the company must be thinking about some interim dividend or buyback of shares. Is there any plan from that? Or you are asking the government to put some plans for that approval?

Yes, very good question, Jaine -- Mr. Jaine. You are right that last year, we paid only a total dividend of 25% as against 70.6% in '19-'20 and 48.28% in '18-'19. So this reduction in dividend has happened [Technical Difficulty]

Ladies and gentlemen, the line for the management has got disconnected. Request you all to please stay online while we reconnect them. Ladies and gentlemen, thank you for patiently waiting. The line for the management is reconnected. Thank you, and over to you, sir.

Thank you very much. I apologize that this call got disconnected. Yes, you're right that we have been paying a dividend at a higher level. Only last year because of the COVID impact as well as 2 fire incidents, our production and top and bottom line got affected. Therefore, we decided to at least give 25% dividend. But this is -- this being a normal year, normal practice will be resumed.

We'll take the next question from the line of Mohit Kumar from DAM Capital Advisors.

And sir, a few questions from my side. So what are the under recovery in H1 FY '22? And do you think that you can reduce the under recovery in the H2 FY '22? And a related question is that how is the path for -- especially for the NLC 1,000-megawatt new power plant on the stand-alone?

Thank you very much, Mohit Ji. Under recovery, in the first half of the current financial year is INR 243.30 crores as against INR 358.79 crores in the last year. We are trying reduce the recoveries in the second half further. I would like Director Power to comment on that.

Yes, Mr. Mohit, as you can see in the first half, the under recovery on account of fixed charges, we are improving very well. For example, there are some of the units, I can share with you. Our TPS-II unit had the incentive last year. We have almost made the under recovery 0 on the low demand season. Yes, some under recovery was there on the high demand season that is for the month of April. That is only there, which we are hopeful we'll be able to make up in the remaining period of the high demand season that is February, March of 2022. Similarly, for TPS-I expansion another unit also, our availability is well above the normative levels, which -- by which we are able to get the 100% availability on low demand season. There also, on the high demand period, some under recovery is there, which we will be making up in the remaining 2 months period of the high demand season that in this financial year itself. As far as our Barsingsar unit is concerned, yes, there are some -- there is under recovery on account of fixed charges, but the positive thing about the Barsingsar unit is that, this year, we have already taken the overhauling of these units. And the breakdowns of the Barsingsar unit has also basically come down. For the under recovery for the remaining period of this financial year, you'll find that -- we will find that we are expecting that the availability will increase, and the under recovery on account of the fixed charges will be further reduced. And NNTPS, the new units, which was another question from your end, by the first half, we had taken up the overhaulings of this unit, NNTPS also. And there were some issues because it was related to -- I mean, we just have follow-up we can say some of the facing problems of Unit #2, which was commissioned in the month of February this year only. So in the first few months, naturally, there were certain issues which were reasons for some shutdowns or some breakdowns. And apart from that, certain vital equipment like et cetera, were to be commissioned, that also has been commissioned now. So in the next half, we are hopeful we will be improving upon the performance of our NNTPS that is a new 2 x 500-megawatt unit because now we are able to run both the units at full load. Except for TPS-II expansion, where we are having the problems of the CFBC unit, still, we have to come out of that problem. We are working on it. All other units, we are in a comfortable position now. We have carried out most of the overhauling. In the second half, we are expecting the availability factor to increase. And once the availability increases, naturally, the under recovery which might be coming on account of additional, let us say, an increase of APC or specific oil consumption, these also will reduce and the under recovery will be coming in control. Thank you.

And regarding the 1,000-megawatt lignite-based power plant in Neyveli NNTPS, which Mohit I wanted to know, what is the performance, we have generated 3,143.14 million unit and exported 2,740.21. And we have achieved the PLF of 71.57% PAF of 73.90%, and it has resulted in a profit before tax to the tune of INR 146.25 crores.

Secondly, sir, on the mining EBIT, the mining EBIT has jumped very sharply in the quarter. Is there any one-off? Or do you think this is the run rate which we can maintain for the next few quarters? Mining EBIT -- mining.

Yes. EBIT mining, it has decreased because -- but EBIT has increased...

Yes, yes. EBITA increased sharply, right?

Sharply, yes, because of the -- because of our ramping up of the Talabira coal production.

Okay, okay. Understood, sir. what is the CapEx plan for FY '22 and FY '23? What is the kind of CapEx you are investing at this point of time? And how much you've done in H1 FY '22?

So CapEx plan, although we are trying to get more projects and depending upon winning the project in the tenders, SECI tender, IREDA tender for solar and depending upon the outcome and feasibility of the Talabira power plant, we will be able to have a clear picture of the CapEx for the next 2 years. However, as of now, we have formulated our plan for the next year to the tune of INR 3,000 crores.

Okay. And have you done any CapEx in H1 FY '22?

Yes. H1, yes, we have already against a target of INR 887.90 crores, we have incurred an expenditure of INR 1,292.82 crores.

How much expecting in the second half, sir, H2?

H2, we are having a plan of INR 2,061 crores, we will be able to achieve this expenditure.

Okay. And one, how much has in the investment in NLC Ghatampur till date?

Yes. In case of Ghatampur project, so far, we have incurred an expenditure of INR 12,536 crores.

What is the overall investment required?

Total sanctioned cost is INR 17,237 crores estimate and against which we have incurred INR 12,536.6 crores.

How much is the equity investment, sir? Equity investment from our side -- from our balance sheet.

Yes. Out of this, 30% equity, which is to be shared by UPRVUNL and NLC, we have invested equity of INR 2,000 crores approximately.

20 billion. Sir, is any plan to monetize our asset under national monetization plan? Do we have any such target in the next few years? And what are the renewables EBITDA in H1 FY '22? And how much the -- how much is the installed capacity at this point of time? That's the just last question.

For Talabira mines?

No, sir. My question was, sir, is there any asset monetization plan we had?

Yes, asset monetization, actually, we are in discussion with the ministry. And as of now, 2 mines of NLC have been identified, NLC and NUPPL, Talabira and South Pachwara. And these mines are already on the MDO mode. And the expenditure investment by MDO is considered for the monetization purposes. And we are on the right track. There will not be much change in our business operations and processes and structure due to the monetization program.

Is there any plan to monetize renewables separately?

We are discussing. We have obtained the approval for formation of 2 subsidiaries for solar. And the proposal has already been sent to Government of India for consideration. Based on the approval, we will be progressing.

Sir, lastly, sir, what was the renewables EBITDA in H1 FY '22? Do you have this number right now with you? Renewables EBITDA in H1 FY '22? Yes would like to mention?

INR 155 crores was the half year result.

Profit before tax.

PBT.

PBT. Okay, sir. And what will be the depreciation or depreciation? And is this...

Just to add, this compares favorably. Last year, it was 94.71. So some 50% growth in that.

Do you have the EBITDA number, sir, by any chance?

EBITDA, we can probably follow it up to you.

Sure, sure, sure, sir. I'll take it offline, sir, offline. So with that, we have come to the close of the conference, sir. Do we have any closing remarks, sir?

Yes. Thank you so much for the interest shown. We value our investors. And as we are progressing on the mining front and power generation, in the time to come, we will continue to focus on our projects and excellence in operations. Thank you very much.

Thank you.

Ladies and gentlemen, on behalf of DAM Capital Advisors Limited, that concludes this conference. Thank you for joining us, and you may now disconnect your lines.