NTPC Limited (NTPC) Earnings Call Transcript & Summary

Good evening, ladies and gentlemen. A very warm welcome to the NTPC 18th Annual Analyst and Investor Meet. We are meeting after 3 years, physically meeting after 3 years because the last 2.5 years has been very difficult for almost everyone due to COVID pandemic. As you know, India is still one of the fastest-growing economies in the world, and power sector is a key enabler for India's economic growth. India's power sector is one of the most diversified in the world, and is undergoing significant transformation. Further, with the government of India's focus on power for all and there has been [ excited ] demand in the country, with every Indian now has access to electricity. Power sector is poised for a long-term growth. As we see, power demand grew substantially. There is a sizable growth add for our company. Our company, under the visionary leadership of our CMD and Board of Directors, has shown character, maturity and resilience in dealing with the changing landscape in power sector. We have and would continue to demonstrate to the world going forward. With all this happening, what can we do to realize more value for our stakeholders? To discuss this today, we have with us our Chairman, Shri Gurdeep Singh; and Director of Operations, Shri Ramesh Babu; Director of Commercial, Shri Mondol; Director of Projects Shri Ujjwal Kanti Bhattacharya; and Director of Finance, Shri Jaikumar Srinivasan. All of them are esteemed personalities in their field and need no introduction, but still, it's my responsibility to briefly introduce to them. Shri Gurdeep Singh is Chairman and Management Director of the company. He is in the middle. He has an industrious carrier of spending over 35 years in the power sector. He, along with his team, is leading the energy transition at NTPC. He has launched a series of initiatives to sustain NTPC's growth and bring about cultural changes necessary to maintain NTPC's position as a leading global power company. His trust, mainly on minimizing environmental footprint and maximizing sustainability efforts and a focused approach of low-cost, low-emission, aligns with India's ambitious target of cleaner and affordable power for all. On the right of Shri Gurdeep Singh ji is our Director of Operation, Shri Ramesh Babu ji. He has 35 years of vast experience with outstanding contribution in management, of large-sized plants in the area of power plant operation and maintenance. The renovation and modernization of old units, and in the area of efficiency and improvement of thermal plants. As Director of Operation, he is responsible for overall planning for Safe, Reliable and Efficient operation of all power generating units of NTPC while ensuring fuel security and environmental compliance at all power stations. On the left of Shri Gurdeep Singh is our Director of Commercial, Shri Chandan Kumar Mondol. He has a comprehensive knowledge of the power sector and has worked both power plant and corporate functions. As a strategic planner, Shri Mondol has led several initiatives of NTPC. He has worked towards developing commercial and marketing strategies, execution of power purchase agreements and policy advocacy with various authorities. Mondol [ saab ] has also has an [ annual ] task of ensuring realization from discounts, which has been attained beyond 100% levels year after year. On the left of Shri Mondol is Shri Ujjwal Kanti Bhattacharya, our Director, Project. He has a rich experience of greenfield power project construction, power plant operation and maintenance, the innovation and modernization, environment management sector. He, along with his team, is credited with the turning around the Talcher station, which went on to become a top-performing station year after year. He had illustrious career in business development function of NTPC, both domestic as well as international arena. He has been at the forefront of JV formulation & Project conceptualization of 1,320 megawatt Maitree Power Project at Bangladesh. On the right of -- Director of Operation, Shri Ramesh, Shri Jaikumar Srinivasan. He has recently joined our Board as Director of Finance. He carries -- brings with him more than 30 year of experience in Power and Mining sector in State and Central PSUs in the field of finance, accounts, taxation, commercial, electricity regulation, renewables, IT project development. Before his appointment as Director of Finance in NTPC, he has served Director of Finance of NLC. He also served as Director of Finance of Maharashtra State Electricity and Distribution Company, prior to which he was Director of Maharashtra State Power Generation Company, MAHAGENCO. He also served as a part time Director in various subsidiary companies for MAHAGENCO. The brief of the program is we will start with opening remarks from our Chairman and Managing Director, followed by a brief presentation by our Director of Finance, Shri Jaikumar Srinivasan. Then house will be open for question and answer, then that will be followed by tea. So thank you very much, sir. Over to Chairman, sir.

Good afternoon. So welcome to this 18th Annual Analyst and Investor Meet. We are meeting almost after a gap of 2 years which '20 and '21, which we could not. And good that we could make it happen, and thanks for coming. Although we are meeting here after about 3 years, but nevertheless, we were connected through the online with some of you. And in today's world, whatever is the events, which are more or less instantly are conveyed to each and every one. So the good thing what is coming out is that, hopefully, we should be out of COVID as I think in the any consumption side, it is being evident, but we all have to be really careful and we have to take precautions because it's still not [ gone ] fully out. Like the demand which is happening in most of the areas, so is seen in the case of the power sector, which we all have experience. The detailed presentation will be made by Director of Finance, but I would like to just highlight a few of the things. And then we would request Director of Finance to make the presentation, and then we will be happy to have the interaction with all of you. So as we know that in the recent past has been relentless and the pandemic geopolitical tensions, high fuel prices and the supply chain shortage. We have all witnessed that kind of scenario. Significant changes have happened in the energy sector globally for the past 2 years, and the global energy landscape is currently facing severe challenges. The fuel prices have increased significantly, and this has made energy security the topmost priority for every nation. And this is quite important to highlight here that most of the -- in the international conferences, the earlier -- the transition was coming prior to the security. And these days, the security is taking residence to the transition. The country faced an unprecedented coal crisis last year, which continued this year as well. Domestic coal supply has not kept the pace with the required demand, leading to the increased need for the imported coal. The abnormal increase in the LNG and the imported coal prices have led to the -- led to decrease in the power generation from these sources, which has increased the gap between the demand and supply. We have been carefully monitoring the fuel supply situation and have taken corrective actions on a continuous basis to ensure that the energy security of the country by ensuring reliable fuel supplies. So some of the plants could not meet the dispatches, but we have made sure that we have ensured the fuel supply and we had been able to meet the grid requirement. This has been done by arranging maximum possible coal supplies from the domestic sources, ramping up the coal production from captive mines and sourcing imported coal to ensure that no station is starve out of fuel. On the growth in the energy demand side, I'm glad to inform all of you that the demand for the power is increasing rapidly. The period of the low dispatch of the power and the supply overhand in the country seems to be over. We had witnessed for quite some time, in fact, almost 6, 7 years that there was a lot of supply overhang, and for the last about a year or so, I think this overhang is more or less over. And the efforts will have to be made to bring back some of the plants, which were stranded or we will have to start the new construction. We'll address that issue also very soon. With the installed capacity of 400 gigawatt, the country registered a peak demand of [ 211.12 ] gigawatt and Energy [ MAT ] was [ 4,722 billion ] units -- rather, million units, so that's [ 4.722 billion ] units. In Q1 FY '23, the country has registered the generation growth of 16.8%, and the growth of NTPC generation is 21.69%. Renewable capacity addition will continue to outperform in the forthcoming years. With the limited availability of the hydro and affordable storage options, the thermal power plants are expected to play a significant role in meeting the balancing power requirements. Let me explain here a little bit that at the most of the countries, this balancing power, incidentally this part, this is being [ dumped ] as a balancing power, although this is the baseload generation. So the grid is maintained through the -- some of the flexible units of the gas-based plants. But in our case, we'll have to have only and only reliance on the coal-fired plants for the even flexibility and meeting the grid requirement. Growing population along with the increasing electrification and per capital usage will further provide impetus to the rising demand for the electricity as was mentioned, that we are fastest-growing economy, and our per capital consumption also is getting reflected in the increase in the demand of the power supply. Due to strong demand, PLF of the coal-based power station have increased. In Q1 of current year, the PLF of the country's coal-based station stood at close to 70% while the PLF of NTPC coal station was over 80%. So we have seen this after the few years that we are back to 80% PLF. It is expected that the PLF of coal-based stations may further increase. Before presenting the performance highlights, I would like to say thanks to each and every one of you for your continued support and the investment in NTPC. For those who are here to invest with us, I would strongly recommend that you should consider as soon as possible. Regarding NTPC performance and the way forward, our Director of Finance is going to give a detailed presentation covering various aspects. However, 2 points from my side for NTPC. Generation crossed 350 billion units mark for the first time and reported an all-time high generation of 360 billion units, registering a growth of 15% as compared to country generation growth of 8% in the same period. In the current fiscal, we have achieved 100 billion unit generation mark in 88 days, which is the best achieved till date, rather, the fastest achieved till date. These number indicates that the growth is substantial and is likely to continue going forward. Our coal stations have -- are having sufficient coal stock. We are working continuously to increase the machine availabilities. It is noteworthy to mention here that all the top 5 units in the country, in terms of the PLF in the Q1 of current year, are of NTPC units. This has been possible with the robust O&M practices. And these units are namely, Vindhyachal Unit #5, Singrauli Unit #4, Vindhyachal 6, Korba 3, Korba 2. Achieving capacity addition of 3,372 megawatts in the last year and the commercial capacity addition of 4,332-megawatt, including [ 502 ] megawatt capacity from the Renewables. Further, 172.52 megawatt renewable capacity has been added in the current financial year till date, taking NTPC Group installed capacity to 69,134-megawatt. We commissioned India's largest floating solar plant at Ramagundam in Telangana and the second largest in Kayamkulam. And all of you would be knowing that these were dedicated to the nation by Honorable Prime Minister on Saturday. We achieved over 106% of the CapEx target. We have achieved the realization of INR 1,16,148 crores. That is 100% of the build amount. Our trade receivables are less than 45 days, which is prescribed by the regulations. NVVNL, our trading arm, traded over 24 billion units of power, registering a growth of 29% versus previous year. NVVNL has started planning the electric buses at Bengaluru in addition to Port Blair. We have registered a 27% in the coal products, and our coal mining team has been doing fantastic job in ramping up the coal production, and there has been an increase of 27% by achieving 14 million metric tonne of the coal production. NTPC Renewable Energy Limited obtained the highest domestic credit rating of AAA within 1 year of its incorporation and has been able to tie up it's maiden domestic green loan at a very, very competitive rate. On our growth plan, even though our coal-based project pipeline, the under construction is becoming slim, all remaining projects are either withheld or situated on the mine, and we are planning to take up the new construction projects, which we will be just explaining very soon. With the commissioning of these projects, our generation shares see the further rise in our share of the total power supply to the country. With the target of achieving 60 gigawatt renewable energy capacity by 2032, apart from the 2 gigawatt capacity, which is already commissioned, over 4 gigawatt capacity is under construction stage and 5 gigawatt is under bidding stage. We are working on the multiple fronts and multiple models to realize the targeted capacity addition in renewables. Further efforts are owned for partnering with the commercial and the industrial consumers for supplying renewable and RTC power. RTC is around the clock. Work at the largest renewable energy park at Khavada, which is going to be 4,750 megawatts in Gujarat, has started. We signed the MOU with the government of Rajasthan for allocation of land parcel for setting up the aggregate renewable capacity of 10 gigawatts. Considering the changes happening across the globe while giving utmost trust for adding renewable capacity, needs have been felt for adding coal-based capacity as well, as it will provide the resilience to the sector for meeting the increasing demand. Accordingly, we are considering a few expansion projects at existing pit head plants, and very soon, we will be explaining that we are very close to award the new projects maybe in this month itself or the next month as we are going to complete 1 or 2 of the formularies. As we march ahead in our capacity addition program, we are planning for the achieving 65 gigawatt capacity by next year August. We are also progressing well in the green hydrogen space. Work is in progress at Leh on an integrated project for mobility, where 5 intracity bus would fly using green hydrogen. In addition to the green methanol pilot project at Vindhyachal, the work for blending green hydrogen with the natural gas at Kawas is also in progress. These 2 new initiatives were also the foundation stone -- this was led by Honorable Prime Minister then recently. Captive coal mining target is set to be 26 million metric tonne for the current fiscal. As I just mentioned, last year, it was 14, so there is the quantum jump which is coming, targeting to reach 50 million metric tonne by 2027. This will help in reliable fuel supply to our power stations. Working on the energy storage space, and discussions are underway for adding the nuclear capacity. This is a new thing, which probably you will be hearing that we are bringing in this and we are seriously thinking on this nuclear, but how to participate in the nuclear, because the act is really enabling now rather than restricting. Any government company can start entering into the nuclear capacity now. We are committed towards providing reliable and affordable power for all striving for the clean energy leadership in India. Emphasis on capability building for ensuring the leadership pipeline to maintain the sectoral leadership. On the ESG side, I think there has been many, many concerns in the talks, but we are doing quite in this. Our efforts are on, and we are doing everything possible. We are diligently following ESG principles. We are timely responding to any of the ESG-related queries by all investors and the ESG rating analysts, separately providing ESG data disclosures on our NTPC website. In the recently-released Sustainalytics reports, ESG risk rating of NTPC has been upgraded with 1 band. Incidentally, it is from Severe to the High Risk. So at least it has moved from the 1 band, and this is reduced from 41.3% to 36.6%. Implemented with strong ethics, fair corporate governance, effective risk management, extensive stakeholder engagement and stringent safety measures at all our power stations. Making Integrated Annual Report based on the GRI and IR framework since FY '20 with the sustainability disclosures of entire NTPC group companies. NTPC is engaging with NITI Aayog to develop its road map for the next-zero GHG emission alignment to the India's indices. NTPC has cofounded the Global Alliance for Sustainable Energy, along with the 16 energy players such as [indiscernible] 3M to ensure the renewables are wholly sustainable for the people and the planet, and lead to a just transition way forward for the cleaner fuel. We became the first PSU to implement the dedicated sustainable supply chain guideline, with the focus on the ESG assessment of the suppliers and their capacity building. We have resumed the Girl Empowerment Mission program, which was interrupted for the last 2 years due to COVID-19, imposed restrictions and trained over [ 2,500 ] school going girls. The program is expected to create a long-lasting positive impact on the young girls and on the society itself when they grow. NTPC received the CII-ITC Sustainability Award 2021 as well in the -- like the last year. On the dividend side, we have paid dividend 29 consecutive years, and the dividend is slightly on the increasing trend. Company is committed to deliver sustainable value to its all stakeholders. We have been consistently paying dividend as per DIPAM guidelines rather trying to exceed, and this trend is expected to continue in future as well. So before I request Director of Finance, let me reiterate here that it is not only -- we are no more only then one power generator, we are generating power from almost all the sources. And unlike when we met in 2019, where only transition renewable was being talked about, so there is this requirement, and we will help to put the new coal-based plants in addition to completing the present one. And we will make sure that we will go aggressively in this all area to ensure that the country is -- countries -- every citizen is getting reliable and affordable power as per the energy commitment from the government of India. With this, I would like to assure all of you that we will continue to put tireless efforts for maximizing profitability in a sustainable manner and bring value to the shareholders in addition to providing the reliable and affordable power to every citizen. Thank you, and I will request Director of Finance to make the presentations.

Thank you, sir. Once again, welcome, all of you, for this 18th Analyst and Investor Meet. I have taken over as Director of Finance only last week, so I feel greatly privileged to stand up before you and getting an opportunity to present our operational and financial overview. At the same time, I feel entitled also if some of you post very grueling question, I can always deflect it. So -- however, CMD saab has, in his opening remarks, has been both very comprehensive in his overview, at the same time, very succinct. I, on my part, would make all efforts to keep it very brief. But nevertheless, the sheer size of the company, the geographical diversity, the issues involved, all this cannot be encapsulated less than half an hour, so you'll have to bear with me on that count. So with that, yes. Being the largest power generator and an important energy enabler, NTPC will be at the core of India's growth and energy transition. We would like to begin our discussion with sharing our vision of our NTPC and how we expect to attain this vision. Our vision, to become a global energy company and to be the prime mover of India's growth stories based on the realities of emerging energy scenario and opportunities. We are already the largest and the most efficient power company in India, and moving towards becoming the world's leading energy player. We are an important element in the implementation of government's ambitious plan for building robust and modern infrastructure for power generation in India. Our vision will be actualized by our core values that we call ICOMIT, which is Integrity, Customer Focus, Organizational Pride, Mutual Trust and Respect, Innovation and Learning and Total Quality and Safety. These values place us in a very distinctive position as we believe we have the capability to emerge as the world's leading power company, providing reliable power and related solution in economical, efficient and environmental-friendly manner, which would be driven by innovation and agility. NTPC Group currently has operational projects across the length and breadth of the country. Our unparalleled presence across India mitigates the risks associated operating from a limited geographical territories, so our risks are all spread out. We have operational stations consisting of units of different sizes, including stations into operations with our JV and subsidiary partners. Most of our coal-based plants are ideally located close to the fuel source. That's the hallmark of our company's, I think, fuel source. Which is, again, a significant strength in our business in terms of lower fuel costs because of transportation cost has cut down significantly. In this presentation, I will start with giving an overview of NTPC, followed by how we plan to steer at energy transition. Various ESG initiatives taken by the company, being a responsible corporate citizen, to improve the lives of the people and environment. We aim not only for growth but sustainable growth with due care for people and environment. Transforming power sector in India, our key growth pointers, our operational and project execution excellence and our financials. As the largest power generator in the India, we generate 24% of the nation's electricity, whereas our installed capacity is 17% of the nation's thing, proportion. We have clearly laid down a path in the form of corporate plan to become 130 gigawatt company by 2032, which is quite visible. With more than 16 gigawatt capacity under construction, we are progressing very well to achieve the same. In financial year '22, we have achieved commercial capacity addition of 4,032 megawatts, and we are maintaining consistent operational excellence with double-digit lead in percentage terms over all India PLF. NTPC would be leading India's energy transition in line with the same. We are committed to have 60 gigawatt RE capacity by 2032. We are also actively looking for business opportunities in green hydrogen, e-mobility and other related fields in the entire energy value chain. We are progressing well on the ESG front also, as CMD saab was explaining. On the back of our ESG strategy, clearly-defined KPIs and targets. Recently, we have been upgraded in terms of rating. On the back of these trends, we have to say that we will be sustaining growth momentum while maintaining energy leadership. We are moving the company into the next orbit of profit and growth. We have huge capacity addition lined up with clear visibility to add 15 gigawatt capacity in the next 3 years and more than 60 gigawatt capacity in the next 10 years. We aim to garner a substantial share of our GOI targets for 500 gigawatt non-fossil fuel-based capacity, and 5 million tonne of green hydrogen production by 2030. As a result, we planned to change our energy mix significantly our next decade -- over the next decade, and we'll lead our company's energy transition. We plan to complete FGD implementation in all our existing and future plans. And entire operation under construction capacity in the next 3 years, for which CapEx has already been committed. Further, the company is also actively engaging tie-up with commercial and industrial customers directly, and a look at exclusive capacity on demand we are considering toward [ 2*660-megawatt ] thermal project at Talcher. Our growth pathway will be widened further with growth in our captive mining capacity as well. On the back of these indicators, we can say that we will be fulfilling expectation and setting new benchmarks. We now turn to the key performance highlights for financial year '22, which was already an overview as given by the CMD. Our stand-alone regulated equity has grown to INR 70,890 crores as of financial year '22, jumped by 7%. We have achieved highest ever sales realization of more than INR 1,16,000 crores in the financial year '22, registering growth by 16%. We have posted highest-ever stand-alone as well as group profit in financial year '22. We have added 4,032 megawatt commercial capacity. We have also posted highest-ever group generation of 360 billion in the financial year of '22. We are geared up for creating many such records as we spearhead energy transition. Now, coming to how we plan to spearhead the energy transition. We plan to enhance our energy portfolio by 2032 from a predominantly power generation company at present. We want to become the supplier of choice. By providing clean, green and affordable power to our beneficiaries, we plan to aggressively add renewable capacity to our portfolio. And in synergy with the RE capacity, we are also working towards becoming pioneer in development of green hydrogen technology and aim to have a significant share in the hydrogen economy. We are also looking to widen our presence in the sector through power distribution, waste-to-wealth consultancy and also increased global footprints. All of this shall act to broad base our company's revenue stream and truly lead NTPC into becoming an energy company with power generation as the -- still the main stream. As we aspire for a wider energy portfolio, we plan to attend the same by building up on our operational project management excellence attained over the past 4 decades, by placing even more trust on ESG, by aggressively adding RE capacity through ultra mega renewable energy parks and other organic inorganic modes. By gainfully utilizing existing land banks and infrastructure for power and allied industry, we are confident that we would be able to achieve the same on the back of our robust financials and ability to raise funds at the most competitive rates. In sync with the government of India's push towards renewables energy, we plan to have 60 gigawatt plus RE capacity by 2032. That's our first benchmark. Company already has 2 gigawatt of installed renewable capacity while another 4 gigawatt is under construction. We have one close to 4 gigawatt tariff-based competitive bidding contracts recently. Since the year '22, we are setting up country's largest solar park of 4.75 gigawatt in Kutch district of Gujarat. Plan for development of another 19 gigawatt ultra mega renewable energy park is in various stages. With all this, there is a clear visibility project pipeline of RE capacity on our hand, and we are well on our way to attain our target of 60 gigawatt RE capacity by 2032. For consolidating of the identified RE portfolios into a new SPV, we have -- the idea of NTPC Green Energy Limited SPV was incorporated on 7th April 2022. Business transfer agreements for RE assets, existing RE assets and its share purchase agreement for transfer of stake of NTPC. In NREL, that is the existing company, to NGEL has been executed on July 8, 2022. Engagement of merchant bankers for monetization is done, and monetization is expected to be completed in financial year '23, the next 1 year. NTPC has been at the forefront of gain capacity development to realize the energy, green energy and green hydrogen objective and the GOIS efforts towards carbon-neutral economy. NTPC is building the country's first pilot project for synthesizing green methanol, setting a first green hydrogen filling station, first green hydrogen blending into pipe natural gas and first green energy storage project. As seen here, company has also signed agreements and MOUs with leading companies for developing entire green ecosystem consisting of supplying low carbon RERTC power, green ammonia, green methanol, the details of which are in front of you. Now, sustainability is a challenge being faced all across globally by energy companies today in the face of the rapidly raising consumer demand on one hand and environmental concerns on the other hand. This dichotomy is everybody's challenge. In this scenario, NTPC is a sustainable strategy, which we called as The Brighter Plan, with clearly defined KPIs and targets have been brought out. We are the first energy company to declare our energy compact goals, that is 60 gigawatt RE capacity by 32%, as I said, and 10% reduction in net energy intensity by 2032 compared to 2012 level. We are developing net-zero road map for NTPC in collaboration with the NITI Aayog. We are in regular dialogue with ESG rating agencies to address contentious issues, concerns and sharing of data for improvement of ESG rating. Sustained Analytics has upgraded our ESG rating by 1 notch, as was shared with you already. And we are confident that we will consistently improve our ESG ratings with better engagement in a systematic manner. A search-friendly ESG profile of NTPC has been launched on our website to enhance the visibility of our [ merit and efforts ] on various fronts on ESG, 2 rating agencies and 2 public at large. We are -- I would welcome all of you to visit our website and peep into all the -- drill down into various aspects of this. We are committed to progress on technology front with increased efficiency and greater environmental protection. Sustainability strategy, uniquely built on NTPC's vision. Our sustainability strategy that is The Brighter Plan, which I mentioned, aims to accelerate NTPC's efforts in leading the energy transition to a decentralized, decarbonized and digitalized energy future on triple bottom line framework, setting new benchmarks in sustainability along with entire energy value chain. It provides a broad framework for company's priorities to meet the challenge in 7 focus area. That is decarbonization, air emission control, water and biodiversity conservation, circular economy, health and safety, community development, strong finance and ethics and sustainable supply chain. The plan focuses on ensuring the sustainability of NTPC's business operations to co-creating innovative and sustainable solutions for better and greener energy future, leading to profitable business growth, reduce cost and mitigating risk of doing business in the VUCA world. VUCA is Volatility, Uncertainty, Complexity, Ambiguity, besides the -- of course, the [ nighty ] and uncertainty, which was all pervading in terms of pandemic this will enable NTPC in delivering a progressive business, greener environment and enrich lives to create shared values for all. We at NTPC have unwavering commitment towards environment in line with our environment management motto, going higher on generation, lowering greenhouse gas intensity. Our company is committed to comply with new environmental norms. For control of SOx, first FGD has been commissioned at Vindhyachal. Erection of FGD is under implementation, 60-gigawatt capacity. It is noteworthy that you take a census of all the power plants in the country. NTPC is in the forefront, and it has gone ahead in a very, very environmental conscious and responsible manner. It has taken the lead, and the maximum FGDs are under implementation for NTPC alone. Year-wise implementation schedule has also been chalked out to ensure smooth implementation well within the time line set by CEA. Now, we would be having the first mover advantage. This is important, as FGD is already under implementation of all our existing as well as upcoming plant as compared to other players. We are strengthened that once FGD is implemented at our plants, we will get advantage in merit order in comparison with other non-compliant plants. Further part of our commitment to environment, we are taking a number of Blue Sky Initiatives such as farm-to-fuel, biomass co-firing, circular economy, waste-to-wealth, details of all this will be available. We are committed to invest up to 1% of our distributable profit for R&D activities and climate change technology. We are among select utilities globally to have a dedicated technology development centers, which we called as NETRA. The focus area of NETRA are efficiency improvement, cost reduction, new and renewable energy, climate change, environmental protection, which includes water conservation, ash utilization and waste management. NETRA also provides scientific support to NTPC station. A research advisory council comprising of imminent scientists are associated with us and abroad, and has been constituted to steer high-end research for the company. As far as CSR initiatives are concerned, NTPC has been spending 2% of net profit every year towards CSR activities right since 2014, '15. Company has spent INR 357 crores on CSR activities during the last financial year. Company has led the fight against COVID pandemic from the front. The company has made a contribution of INR 410 crores since the financial year '21 to pay a PM CARES fund to support government of India in its efforts to fight COVID-19. Further, the special thrust is being given to Girl Empowerment, with an objective to make the girls in our country self-reliant and confident in all walks of the life. NTPC has adopted 18 industrial training institute ITIs and is setting up 8 new ones. We are also providing support to Archery Association of India for promoting of archery as part of our endeavor to support sports in the country also. NTPC CSR initiatives have touched the lives of around 18 lakh people in one way or the other at remote locations. Now, let us take a look at how power sector in the country is transforming and what all the various imperatives, although CMD sir had very shortly mentioned about this. If you can see the graph here, Indian GDP is expected to grow at a fast pace in the coming year, and the demand for energy is expected to raise in tandem with the growth of the economy. Going forward, sustained growth of GDP will contribute tremendously to the growth of the power sector. Further, there's a huge latent demand, and our demographic strength is expected to contribute to annual incremental growth of the sector in a big way. This growth is getting reflected in energy requirement as well as peak load projection by the CEA, with every Indian now having access to electricity ghar ghar bijli. Power sector in India is certainly poised to high trajectory growth for the future. As you can see, the projections up to financial [ year '30 ] on various installed capacity generation, peak load demand, per capita consumption, renewable capacity, coal requirement. Power sector is certainly poised for significant transformation, with focus on 24/7 power to all. We are witnessing changes in every spear of power sector in terms of policies, implementation. All key indicators in power sector are expected to grow at CAGR of 7% to 8%, as can be seen here. With a wave of new reforms in the form of revised tariff policy, concept on smart prepaid metering at the consumer servicing and as well as capacity addition majorly through renewable, stress on renewable, we expect that the sector will grow substantially in this decade. And what are all the growth, key growth pointers? Key growth pointers are huge capacity addition lined up, leading Indian push towards green energy, captive coal production to fuel security, acquisition, diversification of new avenues. Our ability to consistently improve, our scalability, back with sound performance, is one of our biggest strength. With operational capacity of 69 gigawatt presently and 16 gigawatt capacity under different stages of construction, we are well on our way to achieve our goal of becoming a 130-gigawatt company by 2032. We follow a disciplined and prudent approach in taking up new projects and establish the availability of 5 critical inputs of land, water, environmental clearance, fuel linkage and offtake before committing any major investment in any of the project. We constantly endeavor to reduce our project execution time. Our projects under construction are diverse location, which mitigates the overall execution risk to a large extent, as I initially mentioned. All these ingredients make NTPC, a very good destination for investment. Financial year '20 marked the beginning of a reversal in CWIP ratio. This reversal is expected to pick pace in the next 3 years, and we expect our capital work in progress ratio to fall steeply. Going forward, we expect growth to continue and believe that turnaround from CWIP to completed assets would be hastened up more due to greater renewable mix, because the gestation period of the renewable will be far less competitive. Weighted average would be -- the turnaround time will be increasing. Our stand-alone regulated equity was INR 70,890 crores as on 31st March 2022, and we expect our regulated equity to increase at a CAGR of more than 10% in the next 3 years, considering all the projects under implementation. Coming to the coal side, NTPC coal mining portfolio consists of coal mines having estimated geological results of 5 billion tonne and ultimate mining capacity of 71 million metric tonne per annum. Our growth path has widened with commercialization of Pakri-Barwadih mine with effect from 1st April 2019 and Dulanga mine with effect from 1st October 2020. Our Talaipalli mines has also started production, while mining operations has also started at Chatti Bariatu mine from April 2022. We have produced nearly 14 million metric tonne of coal in financial year '22, registering growth of 27% over the financial year 2021. We have achieved highest-ever first quarter production of 4.24 million metric tonne in the first quarter, registering growth of 61% over the Q1 of the corresponding last year, which was 2.61 million metric tonne. Further, we expect to commence production from Kerandari and Badam mines in early financial year 2024. Coming to acquisition and various diversification endeavors. Acquisition, diversification, adaptability would be the hallmark of success in the coming times, and we are actively looking for other business opportunities besides our core competence both domestically as well as globally. We are actively looking for acquisition of power generation as well as distribution assets which fit into our overall business profile and having good intrinsic value. Our wholly-owned subsidiary, NITCO, acquired recently, has been allocated large hydro projects totaling to more than 6 gigawatt. NTPC is exploring options to provide round-the-clock RE power to top commercial and industrial customers directly. We are also exploring options for partnering with battery manufacturing and with technology provided for CO2 to methanol chemical projects. Construction activity of thermal power project in Bangladesh is also in an advanced stage of implementation, and we have been appointed as project management consultant for more than 6 gigawatts solar projects in Latin America and Africa. Now focusing on the operational excellence in the last year in the quarter. Our operational capabilities have been proven with an unmatched track record. You can see here, we have been consistently maintaining 2 digits spread over the national PLF. Our coal station clock PLF of 80.4% against all India PLF of 69.5%. Now if you discount NTPC from that 69.5%, probably it will be further more. So I mean, the true comparison would be more stacking. In Q1 financial year '23, our group generation posted growth of 22%, showing an uptick in the demand. Our operational efficiency is driven by strong systems guided by technical compliance documents, best maintenance practices, real-time monitoring systems, 100% analysis of boiler tube failures daily and monthly review system, periodic structured technical audits, fleet-wide monitoring by experts, et cetera. Again, safety is integral to our working. We are always -- we have laid emphasis on safety, and we have robust operational standard operating procedures in all places. We have upscaled the safety standard at our power plants and have inculcated complete culture of safety first. We are consistently maintaining status of a low-cost power producer. Our low variable charges, ensuring high merit order -- ensures high merit order, and as a result, better PLF and efficiency in operations. Around 60% of our plants are -- can be regarded as a [ pitted ] plant where the transportation is negligible, so it helps us to reduce the energy charges and the overall basket is also very low. We have elaborated payment security mechanism in place in terms of LC, in terms of power regulation, in terms of tripartite agreement. We continuously take a policy issue with CRC and other authorities, and we have witnessed favorable regulatory dispensation in the form of current regulation for the period 2019, '24. Coming to the long-term fuel security, we have proactively and successfully taken initiatives to pursue fuel security for our current as well as future capacity. We have signed long-term fuel supply agreements with CIM and Singareni Collieries Company Limited for supply of coal for a period of 20 years for total ACQ, Annual Contracted Quantity, of 183 million metric tonne per annum. NTPC, through a sustained policy advocacy, has signed a supplementary agreement with aggregation of all annual contractor quantity on CL's subsidiary level, leading to optimum utilization of coal, reduction in ECR, avoidance of loss of fixed charges due to coal shortage, more efficient outage planning, stock management power plants. 60% of our coal-based capacity is linked to merry-go-round belt conveyor system to coal. To mitigate the shortage of domestic coal, we have ordered contracts for more than 16 billion metric tonne for procurement of imported coal also, which we would be using sparingly depending on necessity and need. We had total coal supply of 196 million metric tonne in financial year '22, and ACQ materialization of 93%. Coal supply for Q1 for current financial year stands at 45.8 million metric tonne with ACQ materialization of 101%. Our company has, from the HR perspective, HR visions, our company has always followed a people-first approach towards employee. We believe in continuous development of our employees through objective and open performance management system. We provide comprehensive training to familiarize our employee with technological advancement and up-to-date operational and management practices. Our key employee performance metrics like sales per employee, value added per employee, profit per employee, man-megawatt ratio have consistently improved. NTPC continues to win all around laurels in various fields of operations: Quality, HR, CSR, safety, et cetera. NTPC is the only PSU to consistently feature in top 50 Best Companies to Work For in India in the annual survey carried out by Great Places to Work Institute and Economic Times. We are proud of building a high-trust, high-performance culture. Now, I turn with all this to the essence of the whole thing, which is the financials. I'm happy to share some of the key parameters here. You can see the results on a year-on-year basis. NTPC has been able to maintain sustained revenue growth and robust profit, that would be evident from the slide here. In financial year '22, we have posted highest ever profit of INR 16,111 crores and sales realization, which crossed INR 1,16,000 crores mark. We have begun financial year '23 on a very, very strong note. For the quarter 1, the revenue from operation is INR 38,380 crores as against INR 26,039 crores in the Q1 of last year, registering an increase of 47%, the results which we declared last week. PAT for Q1 is INR 3,676 crores against INR 3,146 crores in last year's Q1, registering an increase of 17%. We are confident of sustaining this growth in our financial with all our growth metrics, projections, projects, which we explained. At the consolidated level, we are also witnessing continuous growth. This growth is led by acquisition of value-accretive JVs and subsidiaries. Profits from JVs have registered a growth of 49% in financial year '22. At the same time, our consolidated EBITDA has registered double-digit growth to reach INR 42,604 crores in financial year '22. As we move forward, we believe we will sustain this trajectory of growth. Our balance sheet size is also growing bigger and stronger. Financial year '22, our gross fixed assets has increased by INR 26,836 crores, with -- while CWIP has decreased. Now, it is what I was talking about, turnover of CWIP to fixed assets. The moment capitalization happens, you get entitled for regulated equity, return on equity at 15.5%, that it adds to the profitability. This trend is expected to continue with around 5 gigawatt addition to our commercial capacity every year now on. We are raising debt at most competitive rates from the market, and our cost of debt has reduced progressively from 8.07% in financial '15 to 5.94% in the financial year '22, with various strategies of blending our basket of borrowings, being very nimble, opportunistic in the financial environment. On the back of this strong and financial NTPC has been consistently paying dividends over the last 29 years. We have a clear dividend policy of balancing dividend payouts with deployment for growth also. And we are committed to deliver sustainable value to our stakeholders. All the above make NTPC a compelling avenue for long-term investments. With this, I conclude my presentation. Thank you, one and all.

Thank you, [ DF ] sir. Sir, we can take the questions now. We can open the house.

Yes, sure.

Yes, please. So one question at a time.

What we should follow, one from this side, one from this side?

Mic?

Okay. The first one, okay, let's go ahead.

Just give me the mic.

Congratulation on a good set of numbers. Am I audible?

Try out.

Am I audible now?

Yes. If you can take it little closer to yourself, probably will be much more.

Okay. Congratulation on a good set of numbers still for the quarter. So first question is on the fact that the government has allowed the work with power plant to supply in users in place of cost -- the cost -- the government has allowed to supply renewable in lieu of [ old ] base capacity, we have the variable cost really high. We believe that this score is a very large opportunity. As far as the government is concerned, they have -- I think they have quoted numbers 20 megawatt. So it's not a new policy. This policy was there, I think it was somewhere 2017, '18. I think they had announced. Does it make your pipeline -- renewal pipeline increase from 8 gigawatts currently to 25 gigawatt and [ 50 ] gigawatts to retake commission in the next 3 to 4 years? Or do you think we need to tone down this expectation and the number which we are looking maybe a slightly lower number?

So first of all, this policy, I think we are thankful to the ministry that this suggestion was from our side. And this was almost in 2018. That time itself, the policy business was taken, but somehow, it has taken a long time to get implemented. And the policy, what it sees is it's not that if it is only this costly power. So the idea was that how we can get rid of the new PPAs and [ stern ] act still go for the more addition of renewables and reduce reliance on the coal even on the existing power stations. So this was -- we had discussed in 2018, we presented to the ministry and from there on, I think this is now the reality. So all of you know that there is a -- renewable prices are coming down, coal prices is going up. So theoretically, you can see that most of the plant -- most of the plants means pithead plants today are much cheaper. The coal cost is much cheaper than the renewable. But otherwise, those plants which are distantly located, let's say, around 500 kilometers and more, there, the cost of the coal is higher than the renewable energy prices. And this was primarily for solar, but it's called the renewable energy. So we will be looking at how we can really blend with the renewable energy also, not -- build up. This provides us a great opportunity to ramp up our renewable energy and where we don't require the new power purchase agreements. So the way to look at it is we are finding a solution. And we are trying to reduce -- for the new PPAs. And at the same time, we are reducing the cost of power to the consumers. So I would say a really win-win situation. And now this is the reality, and we should be -- not only what you are saying, what we were just elaborating. We will have the capacity of around 60 gigawatt plus from the coal side in the next 2 years. So ideally, at some point of time, you can assume that at least 30,000 megawatts is going to be non-pithead and that must -- renewable energy, we can blend with this. So that is the incremental additional capacity we can take. So when we are seeing 60 gigawatt by 2032, this is not going to be much of an issue for us. And by the way, there is a natural hedge that the ISTS which was free for the renewable energy [indiscernible]. Now there is a G&A which has come. So this is on the basis of the payment is based on the withdrawal of the power. So I think the policies are getting reliant so that we are in a position to really ramp up our renewable also along with the coal based. I hope that whatever you are seeing 23,000 megawatts or something, it can be much more than that.

My question was [indiscernible] policy. Under this policy, can you explain around 50, 60 gigawatt capacity addition? Under this policy, flexible...

Why you want to say under this policy? It is not even. The policy does not say that if your power plant is going to be put, whether it is under this policy or which is under that policy.

[indiscernible] by the PPA, you don't need to compete...

That's what I said. Even 30,000 megawatts, noting on 15. So the answer is yes. And more than that, what you are seeing. Yes, please. I think this side, if there is any. We agreed on this principle one by one. No one from this side. So all the questions are from this side, okay? Go ahead. Okay. That is somebody has really [indiscernible] analyst. Go ahead.

This is Apoorva Bahadur from Investec. Sir you highlighted that we are also entering into this C&I market, essentially the green open access and supplying Round the Clock renewable power. I wanted to understand what type of return profile we have over here, right? And secondly, also for Round the Clock renewable power, what are the types of storage solutions we intend to implement?

Yes. So this is a general question, which everybody is trying to then find a solution. But as of now, our renewable energy company called NGEL or NREL. Mr. Mohit is the CEO, and I would encourage all of you after this question answer, you can just ask him as many questions as you want. Maybe now also not a problem. But the returns on the C&I consumers, as of today, you can expect that even either comparable or maybe even higher than that. And some of the C&I consumers are also requesting us that whether they can pick up 26% equity and then we can, through that measure, the known foreseeable or the renewable energy can [indiscernible]. So we are trying to find some of the hydro capacity, which is untied. So there can be some kind of good blend with the solar or wind. And going forward, we have -- you would have already seen that we have come out with the bids per 3 gigawatt another, I think, 500-megawatt kind of storage capacity, whether it is pumped hydro, whether it's going to be battery, whether it is going to be hydrogen. I think this is the work which is in progress. Battery storage was considered to be the most preferred about 2 to 3 years back. Today, I think it looks like that pumped hydro will make a much better sense. And then we will see that how we can plant and it's not only renewable energy, but also the storage itself, but also with the hydro power. Do you want to add anything?

It can also be through some virtual PPA, whereby it will be through procurement of renewable energy certificate and then considering that, that [ rule silk ] is going to be published very shortly. I think through that also, we will be trying. You will not really, physically, we may not require that storage immediately.

Yes, sir. If I may ask one more question. This is on the conventional business. You said that the demand has picked up and we are seeing a demand-supply mismatch. I think on last call, you highlighted that around 6 gigawatts of new brownfield capacity expansion we can do. Sir, what's the progress on that beyond that, sir? And also more than -- so beyond this 6 gigawatt, how much more can we add on a brownfield basis?

Yes. I think let me try to take this question here itself. There will be many more question around this point. What we have said about 3 years or more than 3 -- rather 4 years that we are not going to acquire fresh new land for the -- and we never said that we are not going to add any capacity. I think that's what -- let me clarify if there is somebody then having some other impression on that. Talcher, we are very close. We have already opened the bids. We are ready to put the order. There is a power purchase agreement, which has to come from Odisha side, which is just a formality, which should happen very soon. And as was explained by Director Finance that as a responsible corporate, we make sure that these 5 things are available before we really take the investment decision. So that is about Talcher. It is going to be [ 2 x 660 megawatts ]. Beyond that, there is a Lara, Singrauli. And literally, if you are just going through that, all of our power stations and specifically the older power stations, we have space in those power systems. So easily, we can add kind of [ 2 x 660 megawatts ] or [ 2 x 800 megawatts ], depending on the configuration, what we decide in almost all the pithead [indiscernible]. Almost. We may not be everyone, but most of them. Over and above that, we have a used setup for the townships. So if there is a requirement, we can try to redesign our township and create a space for that. And so you can just take it very easily that if there is a requirement of, let us say, we have to go for 10,000 megawatt, we can go for that. If it's 20,000 megawatts, we can still go for 20,000 megawatts. I think there was a calculation which was saying that it can be somewhere between 20,000 to 30,000 megawatts. And I think let me address that question also that most of the private sector will find it extremely difficult to do the financial closure for the coal-based power system. So if there is a requirement, and this looks like there is a requirement because as the power demand is going up, we will have to add sizable capacity in the coal-based power system. Unless the nuclear power systems can be commissioned much faster, which we are also looking at, at present, our direct project will explain you that he has already constituted team. He is discussing with the NPCIL and BARC. But the important part is that I think apart from the state gencos, I'm not sure that how many state gencos will also be able to really mobilize funds to go for the new plants. So from all sides, we are trying to say that it is not only renewable. It's not only coal side, it's not only hydro, it's [indiscernible]. So you can just think of that as the power generation, I think we are there and we are indeed probably the best of the position to leverage that. So rest assured that whatever is required, we will do. But at the same time, we will be very, very responsible, the question which was coming in the beginning. We will try to see that how we can minimize our emissions, how we can be really more compliant with the ESG side. But at the same time, at the core of the discussion every time, we are mindful that we are responsible for providing affordable and reliable power to the each and every citizen, okay? And as we keep our market share or we really improve our market share and so it will be the profitability and the overall profit and the dividend is. Please.

Sir, can you give some more color on your solar power emission. You said 32 gigawatt by 20, 30 years.

32 gigawatt? Sorry, say again?

Sorry. Can you give more color on your solar power envision? Like many players have large capacity, and we already have limited capacity. So can you give more color on what you're trying to achieve with solar? And many private players are going too much deeper into value chain. So are we only going into generation or are we thinking something which is more?

Very good. So as I said some time back that you can have more and more discussions on this. As a NGEL, we are just coming out also. But let me I think go back a little bit. When there was a falling prices, okay, we were quite mindful that we were not very aggressive at that point of time to put the new capacities in the solar and the wind. Now when there is a kind of -- some certainty has started coming, we have become quite aggressive, as you will be knowing that in the last 2 years, we have started participating into the competitive bids. And we are winning, I think, most of the bids where we are participating. As of today, what we are saying that we have limited capacity, and there are some more players who have gone for [indiscernible], you would have also been observing that there are some players which are getting out, and there are many players who are not really showing there is the interest for the putting because as for them, whatever their calculation of the falling prices, they were betting on, probably they are moving out of these things. But we as a power generator responsible [ energy ] generation company, we will make sure that we implement that to the best of the quality's timing and the commercial returns on that. We -- our aim is to put and go for the renewable energy parts. As I just mentioned, Khawda, we have started the work on that. This is 4,750 megawatt. And we are signing to this -- we have already signed the MOU with Rajasthan for 10 gigawatt. So these kind of the -- these plants and then I just mentioned about our floating solar. And we have the now JV with -- the MOU with DVC to all their reservoirs, we will be having floating solar. In addition to that, we are looking at the wind. There are some locations which we have identified along with that, not only the solar parts, but there can be then in the wind side also. And this is not something which the task of adding 60 gigawatt what we have put up as of today for 2032. We should be in a position to exceed that rather than only striving to really does that 60 gigawatts. About the other related issues, I think you have also gone through some of our press releases or some of the news items that we are very keenly working on the hydrogen side and the green ammonia side, Khawda is going to be utilized in the multipurpose. And the other locations also. In Leh, as I just mentioned, this is the first project which we are just putting that there will be a solar plant and the green hydrogen and the mobility services through that. So this is not going to be limited to only power purchase agreements and then the fixed returns. So we are quite mindful that there in some cases, we can make much higher returns going through these things rather than tying up for the 25 years with a return of, let's say, this very low double-digit level. So it's not something which is only one item which we are looking at that we have to have the power purchase agreement for the renewables. This is what we -- the 5 things what we just explained. This was mainly for the conventional sources, whether it's hydro or whether it's going to be coal-based plants. For that, the PPA is necessary. But for the renewable, we are relooking our strategy, and we believe that we can make much higher returns by going for some time merchant or then maybe going for the C&I consumers or going for storage solutions or going for another related solutions like mobility or the green ammonia, et cetera, et cetera.

My next question is related to green hydrogen. What is the cost per kg you're targeting for the green hydrogen?

Cost per kg, I think there are many figures which are running around. I think the people are targeting that we should be having the dollar per kg in the next 3, 4, 5, years. We are not the technology and these developers. Let me, I think confess that we are the people who are going to implement and apply the technologies which are coming. But in our NETRA, I think then this is experiment, which is going on, which is somewhere between $2 to $3 as of now, it is coming. But as we go along, I think they're more and more electrolyzers and there is some breakthrough into those things. I think there should be a much below that. So as of now, I think if you want me to give there some exact figure, it will not be possible. In fact, then nobody knows then how exact rate will go. And in our Indian context, we should not be only talking about the dollar at the end, we should be translating into rupees because that is what is going to decide for us more than anything else. Do you want to add anything Mr. [indiscernible]?

Sir, you have generally added everything. But as you have rightly said that it's a national technology, it's emerging. Even in USA, the cost of generation of hydrogen is going $6-plus, and sir they are trying to bring it below $3. If you ask our target, as CMD has already told, the target as dream target is below $2 and ultimately going to $1. We, in NETRA, are experimenting and he has rightly given you the numbers that it will be of the around $4 as of now. The main issue is the electricity intensity and electrolyzer. So development of electrolyzer as well as the electric reduction, we are working in NETRA, and we are hopeful that we'll come out with a better solution soon. Thank you.

Do you want to add anything or? Yes. You can speak on the...

I'm Sumit Kishore from Axis Capital. My compliments to team NTPC for starting this analyst meet again, your one of the first ones to actually do that in the power sector. My first question is you mentioned in your opening remarks that energy securities taking precedence over energy transition right now. But could you speak about the longevity of thermal cash flow. So your target of 130 gigawatt by 2032 entails that if your target for renewables is 60 gigawatts, you're still talking about thermal being somewhere around 70-odd gigawatts. So we know that last 15 years, India has seen about 5.5%, 5%, 5.5% CAGR of electricity supply growth. Let us assume that, that remains the norm or we see a slightly better number. But the question is that at what point does the energy transition require NTPC and the country to step down the overall base of coal installed capacity? So India has a target for 2017 in terms of next CO. And so would you say that NTPC, which has a fleet which we started some time in 1982, 1983, they are 25-year PPAs. So, a, beyond the 25-year PPA, does the PPA just get rolled over? And when do we see NTPC's coal-based capacity is coming off. So if I want to make a curve for the next 30, 40 years for NTPC's thermal capacity, when do we start approaching CO?

Good. I think this is also the -- many people are struggling to find a solution for this. But as of today, I think you can take very a kind of the own kind of facts and figures and very comfortably. That even our Talcher plants, which we are going to [ award ] this month or next, that will complete its at least 30 years, if not more. My personal take and by suggestion to the ministry always has been that we should not retire any of the 200-megawatt units and above. And we should try to make these flexibles. By the way, just for information of all of you, a generator with less capacity utilization will be able to make more money. Then when he is making today with the higher utilization factor. I think this, you have to keep in mind, don't get surprised if there will be some plants which will be running only for 2, 3 months. At the end, the returns from those plants will be higher than what they are making today when they are operating round the year. And this is not only for us. I think this is already happening in the Western part of the world anyway. So in that case, it's every likelihood that our tariff structure what is today will not remain same. There may be opportunity cost for many. And as you rightly mentioned that our Singrauli and the other plants which are already completed, now 40 years. And I mentioned to you that the 100% PLF units. So our O&M team has invested well in those plants and they are still in a position to operate at the baseload capacity around the clock and otherwise. So what we'll have to do, take some final steps that you will have to make a little more flexible. We may have to do further start and stop and don't get surprised that we may have to really resort to shifting in some of the plants. But then for every tweaking, every changes, there should be a commercial incentive to do that. So what I'm trying to convey to you very clearly that in a foreseeable future, no plant is going to become redundant. And this will -- in all probability will be earning higher returns than what they are doing today. The last years, power surge, and the power kind of unavailability for some time in some parts of the country has really given this message and learning to the -- most of the people who are managing the sector, and what is required. So these -- our -- we don't call it the old assets. These are really kind of our very sturdy assets. And whatever it takes, we as a company, it's our responsibility as the leading power company that we will be able to operate these coal-based assets as per the requirement of the grid. The main emphasis from our side is how we can increase our renewable capacity without getting into a situation where for some part of the months or some part of the days, the power is not available. So there is a coexistence for the coal-based, there is a coexistence for the renewables. If there is a utilization factories list, I think the gentleman just asked about that in policy what we had been working, and we are thankful to the ministry just set. If during the day, we can reduce to 55%, it's far. So the overall emissions come down. Overall cost comes down. The transition also happens, the investment into renewable also comes and all things together.

Second part to my question, which is related to what you just said. So in terms of the flexibilization of the grade, right now, share of renewables is 11%, 12% of the total power supply. But if we get even close to 450 gigawatts that the government is suggesting to 2030, the share of renewables in daily power generation will be more than 35% -- 34%, 35%. So at a point of time in the day, it will be more than 60%, 65%. So the technical minimum also laid down by CA, it may not be enough. Ramp up, ramp down rates that you have...

What I told you just now some time back that we may have to go for [indiscernible]. So we may have to close down the coal-based plants in the morning and maybe restart in the evening.

Is it technically possible?

Yes, it is possible. Let's see here the...

And you can also comment on the ramp up ramp down rates, which our understanding is about 1%, 1.5% per minute or so.

I just told you that these things will end up in making more money from these assets.

Even right now, the NTPC is actually coming to technical [indiscernible] that is [ 55% ]. Many of us take gencos, they are not coming to [indiscernible]. So even if all the gencos come down, so you have 20 to 30 gigawatt that is there. Now, [indiscernible] has already started a study. In fact, we have done pilot studies at 6 of the plants with NTPC and DVC where we can actually get down the into 40%. So that is the next step. And as our [indiscernible] has said, [ 2 shifting ] is not a new concept. It has all been done in West so that easily it can be done. But I don't see any immediate possibility of that. The demand is very high. We have generated more than 20% in the last 4 months and last year. And on a daily basis, we are generating [ 200 million ] more on a daily basis. So the demand is very high. So I don't think you really need to do [indiscernible] to such extent of [indiscernible].

And see, it is not necessary to know that how the plan really works. Just you enjoy the benefit of the [ client ]. I think then rest you leave it to the kind of the technical people and the commercial and in general, the I think the power companies. Don't worry on [ those ] site. There are people who have really devoted their life towards these things. And they will keep doing them as something which is...

Which is very reassuring. Thank you for the -- thanks. Just to add, as you know the renewable power cannot is [indiscernible]. Is it going to be an entity of conventional coverage growing at, it would be more of a symbiotic relationship. Given the demand curves and other things, there will be a lot of mix and match strategies to do that. So that will ensure that the load curve, and -- so of course, it will come with some amount of ramp up, ramp down, the technicalities of the some commercial aspect associated with that. But in an overall optimization -- some of the plusses and minuses will have to be absorbed in the -- ultimately, we give a value, low-value -- value to the end consumers.

[Foreign Language], this aeroplane also, there is something called gas turbine. And they take off the land, they stop and they start. Now somebody may be saying that, yes, that is true for the gas turbine, but not for coal business. This is what we have been telling till now, okay? But maybe there is a time when we will have to start -- we have already started that how to really make any kind of suitable towards that requirement. That may require some investment, that may require some kind of additional expenditure. And that's the reason I said. So if you are providing that kind of more than ancillary services, so there should be some incentive for us. And you people also should be start looking at those companies, which will be ready for those things.

So this is Rohit here. So my first question is on the NTPC green energy. Talking about the asset monetization, what stage are we in? Is it like going to be a strategic partner in that? Or will you be a financial partner? What would be the role? And how do you see that partner? When do you expect that to materialize that asset monetization?

Yes. This is as the part of the larger monetization strategy. And the process is already on. We have got some kind of expression of interest from 8, 9, 10 kind of companies. And we have to complete this in this financial year anyway.

Just to follow up on that, sir, the stake sale, what percentage would be the regular prescribing you do the stake sale?

I'm not prescribing that anything as of today, this is not necessary that we have to go only for 5% or 10% or 50% or 20% anything [indiscernible]. So the -- what we will have [ deliver ] that what brings the more value to company and how we will be able to really grow. I think as we said that we are the low plants for this renewable. So and this is the vehicle which is going to be utilized for the growth plan. So even then, not only for today, but we'll have to see that what is going to be strategic fit for the rapid expansion and the growth area of this. So I think by the time, we will be meeting next year. There will be many more and more development should have happened. This financial year, it has to happen.

Sure. So my second question is more to do with the follow-up of what you said in your -- some comments on levelized cost of storage for battery, which was probably 2 to 3 years before it was attractive, but now pumped hydro seems to be much more attractive. That was a comment, if I recollect. Now, if you could touch on the -- what is the RE generation cost plus and [indiscernible] for your battery storage in comparison to, say, let's say a pumped hydro storage, what is the peaking tariff that you see?

Again, I think this is what -- there is no definitive answer for that. And that is the reason I refrain from making some numbers on this, okay? We all know that mostly the battery rates are in the dollar per kilowatt hours and dollar-rupee exchange is fluctuating. As the demand is going up like the solar modules, I think the prices what we were coming down. I'm not sure whether they have really started moving upwards kind of things. There has been some kind of -- all of you will be knowing that this critical minerals, there is some kind of -- what I should say, there are some people have really grabbed those, how it will be really turning out to the... And the pump hydro is something which is not for 10 years or 15 years, I think the life of the pump hydro can be as high as 50, 60, 100 years. I think that's kind of things. It might be some renovation, et cetera, will be required. So you can't really take the cost of the only part about how you evaluate its 2 years, 1 year, 3 years. So it's a very, very long lasting years. And once it is constructed, then it's very, very environment friendly. In the battery, there will be even the disposal, things which will be required. And then the hydrogen, there is a lot of work which is going on. And if the hydrogen and the fuel cell, I think this is going to be really, I think, the cost comes down. Who knows that, which will take off? But we should not be just writing off the battery. No one can write off the battery. I think that's quite clear. In fact, we will also be looking at -- I had -- I was in Sydney and Melbourne 2 weeks back along with Honorable Minister and the Minister's Conference, The Sydney Energy Forum. And there is a lot of emphasis on this sourcing, the lithium and the other critical minerals. Maybe that we will also have to look at some kind of those smaller mines in the future. So I'm not saying that battery is back. The question is that which one is going to win as of today? If I can give you another kind of analogy in 2009, 2008, '09, '10, everybody was just trying to calculate that with solar thermal is better or PV is better, and there is the PV also there was crystalline and the thin film. I don't know how many people [indiscernible]. And people were debating this thin film is better or this system. And I think in the next 3, 4 years, it was quite clear that crystalline has really, really this is -- overtook everybody else. Today, nobody is talking about solar, thermal and thin film.

On the battery, sir, I would like to add one more thing that as CMD has rightly said, don't write off battery. Battery will have different kind of application in any case. See, in case of grid fluctuation, you need instance of it to the grid. The best equipment to provide there is the spinning. Spinning, the kinetic inertia. So that will come from some of the existing coal-fired power station generators will be used as [indiscernible] like that. Next best will be the instant energy to the grid by battery. Before the hydro starts even or another cost income or somebody was taking up the damping rate. Those are the times when these will be coming. But in the battery in terms of megawatt hour, may not be as big, right? And that will depend on the [ CE ] ratio and other thing, charging ratio, et cetera.

Yes, please.

As per CEA estimates, I think there is a requirement of about 27 megawatts -- 27 gigawatt and 108 gigawatts hours requirement of battery further. So 27 gigawatt for 4 hours, that's what by 2030...

Yogesh here, sir. Thank you for explaining the...

I don't think it's battery. It's a storage capacity.

Yogesh here, sir. I want to ask as a part of our power trading business, Indian energy exchanges and all which are coming up. So how are we placed out this? What is the unit that we are -- at what rate we are trying to sell out? Or are we planning something new in this?