NTPC Limited (NTPC) Earnings Call Transcript & Summary

Respected CMD, members of the Board of Directors of NTPC on the dais, senior colleagues and esteemed analysts and investors, ladies and gentlemen. It is my privilege to welcome you to our 19th Annual Analyst and Investors Meet. Our company under the visionary and dynamic leadership of our CMD and the Board of Directors has kept up with changing times as well as the expectation of our stakeholders and has recorded multifold progress in our operational and financial performance. What can we do to realize more value for our stakeholders, to discuss this, Today, we have with us our Board of Directors, led by Chairman and Managing Director. Though all of you would be familiar with the dignitaries present on the dais, I would take a couple of minutes to formally introduce them. In the center, we have Shri Gurdeep Singh, who has an illustrious career spanning over 36 years in the power sector. His wide-ranging experience and tailing all aspects of power sector in different organization and cost cultural environment has provided him with the unique ability to deal with intricate and complex issues of the sector. He has positioned NTPC at the forefront of energy transition and has started many initiatives to transform NTPC from being a coal-based power generating company to a sustainable integrated energy company. His thrust on minimizing environmental footprint with emphasis on safety and sustainability and a focused approach of low cost, low emission alliance with India's ambitious targets of cleaner and affordable power for all. On his left, we have Shri Ashish Upadhyaya, special secretary and Financial Adviser, Ministry of Power Government of India. He is the government nominee director on the Board of NTPC. Shri Upadhyaya is an IAS officer of 1989 batch and has served for more than 33 years in various capacities in the state and central government. A joint secretary, Coal, he was instrumental in developing systems by applying space technology to curb the menace of illegal mining. On left of Shri Upadhyaya, we have Mr. Ujjwal Kanti Bhattacharya, our Director Project, who joined NTPC in the year 1984. In his illustrious carrier, he has significantly contributed for NTPC's vertical and horizontal business diversification as well as growth through inorganic route as a Director Project. He is responsible for commissioning the projects and adding to our growth multiple. On the left of the Shri Bhattacharya, we have Shri Shivam Srivastava, who has recently joined our Board as Director, Fuel. Shri Shivam Srivastava joined NTPC in the year 1988, he has over 34 years of experience with outstanding contribution in areas of fuel handling, fuel management, safety, plant operation and maintenance and in coal mining projects. As Director, Fuel, he is responsible for ensuring fuel availability, affordability and security for generating stations, along with development and safe operations of captive coal mines of NTPC. On the right of our CMD, we have Shri Ramesh Babu V., who is our Director Operations. He joined NTPC in 1987, he has over 35 years of experience with outstanding contribution in management of large-sized plants in the area of power plant operations and maintenance, renovation and modernization of old units and in the area of efficiency and system improvement of thermal plants. As Director Operations, he is responsible for overall planning for safe, reliable and efficient operation of all the power generating stations of NTPC while ensuring environmental and safety compliances. On the right of Shri Ramesh Babu, we have Shri Jaikumar Srinivasan, our Director Finance, who has more than three decades of industrious carrier behind him in power and mining sectors, in both state and central PSUs in the field of finance, accounts, taxation, commercial, electricity regulation, renewables, IT and project development. With nine years of Board level experience, he is also responsible for the commercial function of the company. His relentless efforts and dynamism have resulted in further consolidation of our financial as well as commercial position. With this, I would now request our CMD to begin with his opening remarks. Thereafter Director Finance will make a presentation about NTPC, and we'll have an interactive session after that. CMD, sir.

Good evening. All the colleagues on the Board, including our special Secretary, Shri Upadhyaya, Shri Bhattacharya, Shri Shivam Srivastava, Mr. Ramesh Babu, Jaikumar Srinivasan. And we have the other senior colleagues present here. So what I would like to do that I will be briefly touching on a few of the subjects, and then there will be a presentation which will be made in detail by Director Finance. And then we can spend a little more time for some of the question and answers. The presentations or the information, as you will be knowing that it's mostly available across. So I would request all of you to raise the -- some of the concerns or the issues, what you believe is very important for the investors and analysts. So with that, let me just say a few things on this. So let me welcome to all of you on this 19th annual analysts and the investor meet. I think we had been consistently doing that on this end of July, just 1st or 2nd of August. And only this was -- break was during the COVID period, which was, I think there no need to be explained. Fortunately, it is behind us, nobody is talking about that, and we all are back. I hope that everybody is hale and hearty, and we are looking at something which is now the growth trajectory. And as you will also would have seen the financial year '22, '23 has witnessed a very unprecedented growth, and there was some kind of uncertainties, I think which was encountered specifically on the fuel side worldwide, not only -- I think, and you will be knowing that many countries, including Europe, and I think I don't even talk about our neighbors. They have gone through a very tough time, but we as country has managed the energy quite well. And in that context, I think the credit goes to the government. And we had played -- your company has played a very, very vital role in this time of -- a kind of unprecedented increase suddenly after this pent-up demand, which was coming from the post-COVID. The good point is that we are still maintaining, and this month is also, I think, it's as a country, I think it's almost around close to double-digit growth, which is a very, very kind of promising thing. And looking forward, I think then this is going to be really providing enough opportunities for the growth. Our diligent cost management strategies in -- our cost management strategies and our operational efficiency, [ UWC ], you would be noticing from that presentation contributed to the healthy EPS, which registered a growth of approximately 5.6% over the previous years. We have been carefully monitoring the situation and taking corrective actions continuously to ensure the energy security for the country by ensuring the reliable fuel supplies, which is going to be reflected, I think, again, this will be coming from the -- our captive mines or sourcing the coal [indiscernible]. Currently, all coal stations have the sufficient stock, our Director Operation can tell far better and the Director Fuel is here. I think we have more than 16 days took as of now, and due to the diligent monitoring of the situation, none of our stations will start because of the coal in the last year. And I think I just give them some of the other inputs that our stroke has been performing quite well and it has hit 52 weeks high, I think that everybody -- you people can tell far better than probably anybody else. The FY '22, '23, the Board of Directors have recommended a final dividend of INR 3 per share subject to the approval of our shareholders at the upcoming AGM. This final dividend is in addition to the interim dividend already paid at INR 4.25 per share. So put together, it will become INR 7.25 per share. This year marks the 30th consecutive year of dividend distribution, showcasing our steadfast commitment to providing value to our esteemed shareholders. Regarding NTPC's performance and the way forward, there will be a detailed presentation as I just mentioned. But let me add, as I said earlier, a few points. We have fast-tracked our energy transition plans and made significant progress on the renewables. There may be some kind of questions which keep coming that how much we are going to add this year, how much we are going to add next year and we have the CEO of our NTPC Green Energy Limited, Mr. Mohit Bhargava, who is present here. So maybe I think then we will give you a chance to him if it is required, and some of the questions are coming that straightway can be addressed. And let me assure you that the progress is very, very promising, I think we'll get into that detail. I'm happy to inform you that for the first time, our organic nonfossil capacity addition has surpassed the fossil capacity addition, showcasing our commendable progress in the energy transition journey. We have also finalized several new renewable and storage contracts. And as a result, our total renewable pipeline has reached 20 gigawatts. So this is what I think the details we can go through later on. Additionally, we have made several new partnerships in the renewable segment, including the C&I consumers, and that's going to be not a very small 5, 10 megawatt, I think it is going to be a gigawatt scale, I think that's what we will be talking about. We're taking on the 200 megawatts and leading to the gigawatt kind of thing. We take great pleasure in sharing our continuous success in securing the renewable bids cementing our position as a formidable player in the India renewable market. Financial year '22, '23, we have achieved the capacity addition of 3,292 megawatt with a commercial capacity addition of 3,952 megawatts, including the acquisition of Jhabua, which was 1x 600 megawatt. This included a significant contribution of 1352 megawatts from the renewable sources and the first ever overseas capacity of 660 megawatts in Bangladesh. Further, we have added some 770-megawatt in this quarter, Q1 of FY '24, elevating the NTPC's groups total installed capacity to 73,024 megawatts. We are declaring the commercial operation of Barh, unit 2, 660-megawatt from midnight today -- I mean starting from tomorrow. This unit has been, as you will be knowing that Barh something where there was some sort of -- we had to terminate the contract in between, and we had to really take the kind of make in India and our own engineers have contributed to recommission these units. So the first unit is running successfully second unit is getting commercial operation and the next one is going to be next year anyway. We have recorded an all-time high power generation of 399.2 billion units, that means closing almost in distance from that 400 billion units, registering a growth of 11%. Further, the 8 of our coal stations figured in the top 25 best performing stations of the country in terms of the PLF, and our coal base station registered at PLF for around 75% against the country's 64%. Let me take a second here and try to clarify, I have no hesitation to respond afterwards also, but going forward, let's not harp on the PLF. PLF is not that important as the availability and the reliability is, because the PLF is something which was the barometer for the shortage situation. I think this most important is that the power should be available on demand. So during the daytime when the solar is going to be in plenty, most of the power station will be getting back down, which is going to be a good thing. And we will also like to do that because of our -- the blending policy of Ministry of Power, so that we can also reduce our emissions in that. So I just took this opportunity to explain that the PLF should not be the only criteria. I think the availability and the reliability is much more important than this. These numbers demonstrate our best-in-class asset management practices and capability of human resources, and we are completing almost 40 years for the first unit of Korba unit now. We have already almost 42 units -- 42 years for Singrauli, and this is 40 years on 1st of August, tomorrow, we are completing almost around 40 years, which is operating at about 100% PLF anyway. We have successfully commissioned a blending project that incorporates the green hydrogen with the PNG. Can I require somebody there who is having this mobile phone to switch off and request that everybody else to take a relook that these are being put on the silent mode. We have successfully commissioned a blending project that incorporates the green hydrogen with PNG, piped natural gas. Further, the green hydrogen mobility in Leh and Delhi are set to be commissioned in the current financial. Just to let you know that this green hydrogen, which is blended with the PNG is coming from the floating solar plant in Kawas, so I'd say, it's completely different. The floating solar plant, which is feeding for the electrolyzer to produce the hydrogen and the hydrogen is being blended into that. So that may be a very, very small, tiny kind of experiment, but that will pay way far a lot of opportunities going forward. On the Leh, Ladakh, we were very close to how the commissioning or rather than starting the operation of our hydrogen powered bus for the mobility, but for this -- some of the flooding damages, which has really caused a lot of problems in the transportation, I think there is some -- so maybe I think it will take another 15 to 20 days, though the bus is going to be delivered on 10th of August. Another important highlight is the exceptional growth in the coal production. So one way is that what we are talking about, this transition in mobility, on the other side, the fuel security is the coal production from captive mines, which reached 23.2 million tonnes during FY '22, '23, making a growth of 65%. Further, the Q1 of the current financial year, we have registered a growth of 100% in the coal production as compared to previous financial year. So that is quite reassuring on the fuel security side that we are putting all efforts. We have set an ambitious coal production target of 34 million tonnes in this current financial year. Our bill realization of the financial year '22, '23 reached INR 1,54,356 crore. And no doubt that we have achieved the 100% realization on that. We have demonstrated MSW to green charcoal plant at Banaras, now we are taking in Noida and Bhopal and Hubli and maybe I think that will be another one, which would be, I think for those who had the keen interest in the ESG that it's not only for the -- our company, but we are trying to help. I think the society as a whole and the country for the -- in this aspect. So coming to ESG, we are diligently following ESG principle timely responding to any ESG-related queries by the all investors and the ESG rating analysis. We also regularly update our website with the ESG-related disclosures. We are consistently expanding our score by incorporating additional sustainability standards and the ESG frameworks. I'm happy to share with you that our ESG rating by sustainable analytics has improved by 1 band in the last fiscal. In financial year '22, '23, we achieved a specific water consumption of 2.69 liter per kilowatt hour, which is a very good improvement. Additionally, the commencement of our first air cooled condenser at North Karanpura plant is expected to save around 75% of the water compared to the conventional water cooled condenser. Our Ash utilization percentage had increased to 83% in financial year '22, '23, reflecting our commitment to the sustainable risk management practices. We have also embraced the principle of lifestyle far environment as promoted by our country on a global scale and have implemented numerous campaigns and the awareness program across our business units. On the CSR front, we have spent approximately INR 353 crores on the CSR activities, and we have the -- another flagship project in this called Girl Empowerment Mission, where we bring the young girls, they are our guests at our townships for a month, and that is a life-changing experience for all of them, almost around 2,000 to 2,500 girls every year, we are able to help them in their life journey. We are actively pursuing the just transition and prioritizing the reskilling of the workforce and ensuring that the transition to the clean energy is accompanied by the opportunities for the carrier development, safeguarding the livelihood of all stakeholders. We recognize the importance of upholding the trust and the confidence placed in us by our stakeholders by practicing sound governance principles and consistently fostering the culture of the integrity, we aim to ensure that we operate in a manner that aligns with the best interest of all stakeholders. I'm very happy to inform you that our partnering efforts in the India's clean energy transition and emphasis on the training, have garnered global recognition through the prestigious accolades including the highest esteemed global awards presented by S&P Platts and ATD Best, this is the worldwide recognitions. These coveted awards represent international global recognition of our sustainable practices and our relentless pursuit of excellence in the clean energy domain. Let me touch up something on the bright future ahead. The Indian power sector is undergoing a significant transformation driven by the government policies. Ongoing power sector reforms, addresses the challenges, and clear the conducive environment for growth. With the economic activities gaining further momentum leading to increased energy demand as the largest utility in the country, we will play a crucial role in meeting the growing power requirement. We would like to maintain our share in the power sector by supplying almost around 1/4 of the total electricity what we are doing. And we will try to see that if you can really move up on that. Accordingly, we have set an ambitious target for the capacity addition to the tune of 6 gigawatt in the fiscal year '23, '24. As informed last year, while putting utmost trust on the renewable capacity addition, we are also considering the development of rather the construction of 7 gigawatt of additional coal-based capacity as brownfield projects. The commissioning of these capacities is planned in a phased manner with the target time frame set until 2030. As you will be knowing that we had already started the work on Talcher last year. This year, we are going to start in Lara and further, we will be working on this and the Sipat. Our focus is on completing existing projects, fast-tracking new ones and operating our fleet efficiently and reliably as all remaining projects are either pithead or situated on the mine with the commissioning of these projects, our generation shares will see a further rise. These brownfield projects are also pithead plants. Simultaneously, we are adding renewable capacity aggressively and exploring the opportunities in the green hydrogen. On the nuclear front, on the SMRs, small modular reactors, green charcoal, as I just explained, carbon capture and utilization, green chemicals. Green chemical is basically the project what is going on at present in the -- that will be also covered that capturing the carbon dioxide from the stack and utilizing the green hydrogen and making the green methanol. We are also working on the PMC contracts through the international solar alliance. Additionally, 2 nuclear power projects, namely Chutka and Mahi Banswara through ASHVINI, a joint venture between NTPC and NPCIL, with an aggregate capacity of 4,200 megawatts are being considered for implementation. You would have seen some news items that we have already entered in the -- not only MOU, but now there is a joint venture agreement with NPCIL and these 2 projects, which NPCIL was taking up will be transferred to this joint venture. We are also working on the various storage solutions, including the large-scale PSP. The another one is that we are -- our 2 of the subsidiaries, THDC and NEEPCO have been allocated almost around 8,000 megawatt. 7,000 to 8,000 megawatts, we will give the details, on Arunachal and Assam, [ Basin ] for the new greenfield hydro projects. To facilitate our ambitious growth plan, we are actively collaborating with the start-ups, innovators, manufacturers, commercial and industrial consumers as well as the leading institutes. We are also collaborating with the various state governments for securing land patches. We are creating a future-ready workforce through the reskilling, redeploying and hiring talent to meet the evolving business needs. These initiatives position us for the success in the dynamic energy landscape while contributing to the sustainable and the prospers future for all. I would like to place on record that we have, under the process of identifying a strategic investor for NTPC green energy limited due to certain issues and are now working on the strategies for the IPO which will unlock further value. We have started working on the CERC regulations, and we are engaging actively with the CERC at present for this ongoing [ 2429 ]. So I still would have missed many things, but I think after the presentation, we'll be more than happy to cover whatever would have been of your interest. 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. Thank you, let me request the DF to make the presentation.

Thank you, CMD sir, and good afternoon, once again. I welcome all the investors, analysts to this annual meet of NTPC. NTPC, as all of you know, has been the largest power generation -- generator in the country in a crucial energy enabler, holds a pivotal position in India's growth story and energy transition. As I share the vision and mission statement on the screen, I also wish to outline the steps we are taking to achieve this vision. Our vision revolves around being the mainstay of fulfilling the energy needs of the country and being a key driver of the ambitious economic growth story of India and going on to transforming itself into a global energy company. This vision is founded on the recognition of emerging energy trends and the abundant opportunity they present. Currently, we stand at India's largest and the most efficient power company with a determined trajectory towards becoming a leading player in the global energy landscape. As an essential constant in implementing of Government of India's ambitious plan, we play a crucial room creating robust and modern power infrastructure for the new India. Our vision will be realized through close adherence to our core values, which we refer to as the ICOMIT. Together with our capabilities to produce an offer, dependable power and related solutions in the most economical, efficient and environmentally friendly manner. The NTPC Group presently operates projects spanning the length and the breadth of our country. Our wide presence throughout the nation's landscape enable us to spread and mitigate risk associated with operating within a limited geographical territories. Our operating stations comprise units of various sizes, including those in collaboration with our JV partners and subsidiaries. A key advantage of our coal-based plant is there predominantly proximity to the fuel sources, resulting in substantially lower cost and lower energy charges. The outline of the presentation in our presentation, I'll give a broad overview of NTPC, and then delve into the following key points: our strategies, initiative and road maps towards energy transition, renewable energy and fostering sustainable practices. I'll highlight the various ESG initiatives undertaken by NTPC, as a responsible corporate citizen aimed at overall well-being of the people and environment, demonstrating our commitment to achieving growth in a sustainable and affordable manner. I'll be discussing the factors and the key imperatives contributing to our growth and our operational and project execution excellence, along with our robust financial performance. Next. As you can see on the screen, as the largest power generator of the country, NTPC plays a significant role generating an impressive 25% of the nation's electricity with a share of just 17% of the installed capacity. Our corporate plan outlines a clear growth path aiming to become a 130 gigawatt plus company by 2032. During financial year '23, we added around four gigawatts of commercial capacity. We are right on the path with over 17 gigawatts capacity currently under construction and a further 18 gigawatt capacity in the planning stage. We have maintained consistent operational excellence and a lead in terms of availability factor and PLF. Financial year '23 marked a year of milestone for us, in the sense that we achieved the highest ever generation profit and revenue realization. As part of our energy transition, commitment NTPC is aiming for 60 gigawatt of RE capacity by 2032 and also exploring business opportunities throughout the clean energy value chain. With a clear focus on ESG we are consistently progressing on all the defined KPIs. With our key strength and our project execution capabilities, we are spreading the energy transition while powering the growth of new India. We have plans to add 10 gigawatt of conventional and 16 gigahertz of renewable energy in the next 3 years. As part of our overall energy security plans, we are actively considering awarding thermal capacity of 7.2 gigawatts within the next year. Furthermore, to have a greater fuel security, we are enhancing our coal mining capacity as well. Our concern and determination for a cleaner environment is evident in our plan to complete the implementation of the FGD, which is the flue gas desulfurization units in our entire operational and under construction capacity within the next three years. Our group has secured definitive tie-ups for 10 gigawatt of renewable capacity and with commercial and industrial consumers, and we are discussing with many others. With these strong indicators of growth and expansion, we are confident that we will not only fulfill expectations but also set new benchmarks in the industry. Going to sustainable energy transition. Our vision for 2032 revolves around transforming our energy portfolio, moving away from being a predominantly power-generating company to being a diversified energy major and portfolios of clean, green affordable power for our beneficiary with presence across the value chain. To achieve this vision, we aim to contribute significantly to development of a green ecosystem and establish ourselves as the leader in this domain. NTPC Group is all set to diversify into newer areas of clean energy comprising nuclear power, green hydrogen and chemicals, carbon capture and utilization and waste-to-wealth initiatives. The combination of these strategies will significantly broaden our company's revenue stream through an integrated energy business with power generation at the core. Our growth and diversification strategies will be backed by our operational project management excellence attained over the last 5 decades, aggressive addition to RE capacity through ultra-mega renewable energy power parks and other organic and inorganic modes. Gainful utilizing existing land banks and infrastructure and power and allied industry with strong financials and ratings and the ability to raise funds competitively are confident to fuel our growth. Coming to specifics of renewable energy. As you can see on the screen, in alignment with the government of India's focus on renewable energy, we have set an ambitious target of achieving 60 gigawatt of renewable energy by 2032. Currently, our group has an installed renewable capacity of 3.3 gigawatt with an additional 5.9 gigawatt under construction. Furthermore, we have secured tenders and bilateral types for another 10.8 gigawatts of renewable capacity, creating a visible pipeline of 20 gigawatt in the near term. In FY '23, we made a quantum jump doubling the RE generation and adding the highest ever renewable energy capacity. The commissioning of RE capacity surpassed that of conventional capacity during this period, clearly demonstrating our commitment to the energy transition. To support our aggressive RE capacity addition strategy. We are actively planning and implementing a cumulative capacity of 36 gigawatt in different states through the ultra-mega renewable energy park scheme. Additionally, we are in discussions with state governments regarding the implementation of pump storage projects, further contributing to the expansion of RE infrastructure. With a clear RE project timeline, we are well on track to achieve our ambitious goal. To realize the government of India's efforts to our carbon-neutral economy, NTPC's leading efforts in green hydrogen, green chemicals carbon capture and utilization and other related fields in the entire clean energy value chain. In this regard, NTPC has commissioned first green hydrogen blending into piped natural gas and is building the pilot project for synthesizing green methanol and ethanol and also setting up first green hydrogen mobility project. We have also entered into an MOU with Indian Army for setting up green hydrogen projects in its establishments. This agreement assures in a new era in defense and power collaboration. We have also signed various agreements and MOUs for developing green chemicals and green fuel. Company has also conceptualized setting up a green hydrogen hub near Visakhapatnam in Andhra Pradesh. As can be seen here, we are steadfast in our approach towards developing the entire green ecosystem. Coming to the sustainable initiative. Sustainability has emerged both an imperative and a challenge for global energy companies, balancing a huge energy demand with environmental concerns. NTPC has formulated a comprehensive sustainable energy strategy called us Brighter Plan that includes well-defined key performance indicators and targets. To further our commitment to sustainability, we are actively working on developing a net zero roadmap for NTPC in collaboration with Niti Aayog. To enhance our ESG performance, we engage in regular dialogue with ESG rating agencies. Our environmental conservation efforts are exemplified by the plantation of 38 million trees in and around NTPC project, creating a significant carbon sink to offset emissions. We are also developing a Mega Eco park in the national capital on the side of our decommissioned thermal plant. Water conservation remains a priority for us as evidenced by our continuous reduction in specific water consumption over the last 4 years. Furthermore, we have commissioned the first air cool condenser in North Karanpura power plant, resulting in significant savings on water. Through our concerted efforts and relentless commitment to sustainability NTPC will be serving as a model for responsible and cleaner energy production. Going higher on generation, and lowering greenhouse gas intensity remains our moto for environment management and drives our efforts to comply with the new environmental norms. As the leader in the industry, we have taken a significant step to control SOx and NOx. Over the next 3 years, we plan to commission FGD systems for our entire operational and under construction capacity ensuring a substantial reducing SOx emission. Moreover, the NOx control, we have successfully implemented combustion modification 19 gigawatt capacity, resulting in a remarkable 30% reduction in NOx emission. Beyond emission control, we are actively undertaking various Blue Sky initiatives such as desalination of seawater in Simhadri, biomass co-firing and waste to charcoal projects at Varanasi and other cities as depicted here. Moving to new energy technologies, on the research and development side, we are among select energy utilities globally to have a dedicated technology development center called NETRA. NETRA's core focus area encompasses cutting-edge technologies crucial for the energy sector. In addition to driving technology development, NETRA also provides scientific support to NTPC stations, facilitating operational excellence and efficiency. To ensure high-quality research, a research advisory council has been established, comprising eminent scientists and exports from India and abroad, guiding NETRA's high-end research endeavors. Furthermore, NTPC has double-digit R&D expenditure in the last 5 years, underscoring its dedication to remain at forefront of technological advancement in the energy sector. Coming to our CSR initiatives. We have been steadfast in our commitment to corporate social responsibilities. By continuously allocating 2% or more of our net profit to our CSR activities since many years. During FY '23, the company dedicated a sum of INR 353 crores towards various CSR initiatives, focusing primarily on health, sanitation, safe drinking water and education, et cetera. Additionally, the company has a special focus on girl empowerment, striving to empower girls in the project vicinities and make them self-reliant and confident in all aspects of life. Furthermore, NTPC is contributing to the development of archery, a sport from the grassroot level by providing support to the Archery Association of India. Through its CSR initiative, NTPC has made significant impact on the lives of approximately 16 lakh people positively influencing human development in remote locations. Now I turn to the key growth pointers for the power sector. India's GDP is expected to grow at a robust pace in the coming years and the energy demand is expected to move in tandem with the economy. India's demographic strength, coupled with vast latent demand for electricity is poised to play a significant role in driving annual incremental growth in power sector. Projections by Central Electricity Authority further support the notion of substantial growth in the sector. One significant achievement in recent times is that every Indian now has access to electricity. This milestone signifies a major stride towards universal electrification and sets the stage for the power sector in India to thrive. On the screen, we have some key indicators that power sector in India is poised for significant transformation driven by government's focus on achieving affordable and uninterrupted 24x7 power for all. This emphasis on providing reliable electricity to citizen has sparked changes across every aspect of our sector value chain. Key indication the power sector includes capacity generation and per capita projection are expected to experience substantial growth as can be seen on the screen. The share of renewable energy capacity in the country's total installed capacity is expected to increase substantially from 40% at present to more than 66% over the next decade. Comprehensive reforms and the emphasis on renewable energy are anticipated to drive substantial growth in the power sector. NTPC operational capacity of 73 gigawatts and another 17 gigawatt is under various stages of construction already. A further 39 gigawatt is under planning in feasibility stage. NTPC size and capabilities, coupled with its operational excellence forms the major strength, which will drive the company's growth engine to achieve the ambitious goal of becoming a 130 gigawatt plus company 2032. Furthermore, the strategic decision to have projects under construction at diverse location plays a crucial role in reducing the overall execution business. These key strategies and prudent measures demonstrate our commitment to efficient and sustainable growth. Coming to the financials. Our multiple revenue stream is set grow steadily, fueled by the substantial capacity addition we have undertaken. Similarly, we expect our regulated equity to grow at a double-digit rate in near term, driven by projects already under implementation, both in conventional mining and RE business and also those which we have planned further. Under the guidance of an experienced and focused leadership team, we are confident in our ability to deliver up to the expectations. Coming to the coal mining sector. Our coal mining group has an impressive asset portfolio, comprising 8 coal mines with estimated geological results of 5 billion tonnes and an ultimate mining capacity of 77 million tonnes per annum. The company has demonstrated remarkable growth in coal production, producing 23.2 million tonnes of coal in financial year '23, which represents a steep 65% year-on-year growth. Looking ahead, we have set an ambitious target of producing 34 million tonnes of coal in financial year '24, indicating our commitment for fuel security. In line with this goal, the company has achieved a record high first quarter production of 8.59 million tonnes in Q1 of financial year '24. Some of our other business development endeavors, you can see on screen in response to the dynamic times and imperatives of diversification and adaptation. We are actively pursuing new business opportunities, both domestically and globally. Expanding into commercial and industrial market. We have formed a joint venture and signed MOU/bilateral agreement to supply power to C&I customers. Additionally, we have ventured into nuclear power with 4.2 gigawatt capacity projects under active consideration in Rajasthan and MP. We are also exploring small modular reactor nuclear technology, which showcase our commitment to innovation. Internationally, we have achieved significant milestones, including the commissioning of our first overseas power unit in Bangladesh and being appointed as project management consultant for 6.5 gigawatt solar project in Latin America and Africa. Moreover, we are collaborating with various state governments in India for developing power projects. This will help us to position us in the global energy landscape. Turning to our operational excellence. NTPC's operational capabilities have been consistently proven through an unmatched track record of maximizing efficiency in the power sector. The company's coal stations have demonstrated exceptional operation, clocking a plant load factor of 75.9% in financial year '23. Much above the All-India PLF of 64.2%. Moreover, NTPC achieved its highest ever group generation of 399 billion units in financial year '23, reflecting a notable 11% growth in generation compared to the previous year. NTPC's operational efficiencies underpinned by robust system and best maintenance practices ensuring the smooth functioning of its power plant and the optimal utilization of resources. NTPC's proactive approach to safety has led to enhancing of safety standards at its power plants and the complete integration of safety first culture within the organization. This safety conscious approach helps prevent accidents and ensure a secure working environment for its workforce. Coming to the long-term fuel security, we have taken proactive and successful initiatives to ensure fuel security for our current as well as future capacity requirements, aggregation of annual contracted quantity, on CIL subsidiary level basis has resulted in several benefits, such as optimum utilization of coal, avoidance of fixed charges loss and efficient outage planning and stock management. We have signed long-term fuel supply agreements with both CIL and Singareni Collieries Company Limited for reliable supply of coal. We also source coal through bridge linkages captive mines and e-auctions. Further diversifying our sources of coal procurement. To address any shortage of domestic coal NTPCs, imported 15 million metric tonnes of coal during financial year '23, ensuring an uninterrupted and sufficient coal supply to meet our energy demands. Our consistent focus on being the low-cost power producer has enabled us to maintain a high merit order for our power plants. This advantageous position translates to better PLF and operational efficiency ensuring that our power plant remains competitive and operate at optimal level. Although as CMD sir was mentioning, PLF will be of less significance whereas availability factor or the declined capacity will be the better hallmark of pointer of efficiency going ahead. The company's elaborate payment security mechanism has proven highly effective in managing the receivables and ensuring timely and reliable payments from customers, thereby achieving highest ever realization of more than 1.54 lakh crores during financial year '23. Furthermore, the fact that our trade receivables are back at pre-COVID levels, indicates the company's resilience and ability to manage financial changes effectively even in face of adverse circumstances. On NTPC's HR visions, our company has 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 advances and up-to-date operational and management practices. Our key employee performance metrics like sales per employee, value added per employee, profit per employee and man-megawatt ratio has shown consistent improvement. NTPC continues to win all round laurels in various fields in operational quality, HR, CSR, safety, et cetera. We are proud of building a high-trust, high-performance culture. Turning to financials. As can be seen from the results projected on the screen, NTPC's financial performance has been remarkable, exhibiting sustained revenue growth and robust profits level over the years. In financial year '23, the company achieved its highest ever profit of INR 17,197 crores, showcasing our strong financial management and operational efficiency. The momentum has continued in financial year '24. The company posted a strong financial result of Q1 FY '24. The profit after tax for Q1 stood at INR 4,066 crores, reflecting a substantial 9% growth compared to the Q1 of the last year. This financial achievement underscores our ability to adapt to changing market conditions, maintain operational excellence and leveraging our diverse portfolio of power generation assets to sustain growth. Our consolidated financial have exhibited consistent growth driven by strategic investments in value-accretive joint ventures and subsidiaries. The company's performance in FY '23 saw significant growth in dividends from JVs and subsidiary with a remarkable increase of 35% year-on-year. This indicates the success of our investment in these ventures, which have contributed to the company's overall financial strength and performance. The NTPC Group's EBITDA also experienced a double-digit growth, crossing the notable milestone of INR 50,000 crores in financial year '23. This substantial EBITDA growth signifies our ability to generate strong operational earnings and manage our financials efficiently. With a proactive approach to investment, operational excellence and strong financial foundation, we are well positioned to leverage our opportunities in power sector and other related domains, ensuring continued growth and value creation for our stakeholders. Our balance sheet size has been growing bigger and stronger, demonstrating the company's financial strength and stability. Over the last few years, our gross fixed assets has increased by an impressive 43% to INR 338,436 crores, showcasing NTPC's commitment to expanding power generation capacity and infrastructure. Concurrently, the capital work in progress has decreased by 9% to INR 89,133 crores which signifies a successful effort in unlocking capital and turnover of investment into completed assets. Looking ahead, we anticipate continued growth, the turnaround from CWIP to complete is expected to be expedited further, particularly with a greater mix of renewable energy projects in the pipeline. Our ability to raise debt at competitive rates from the market enhances our financial flexibility and capacity to fund our expansion plans effectively. With strong financials, NTPC has consistently paid dividends to our shareholders for the past 30 years, the company maintains a dividend policy that balances dividend payouts with the deployment of funds for future growth initiatives. In conclusion, as the leading power generation company, we are well positioned to drive India's energy transition and contribute significantly to the nation's growth and development. Thank you, all of you for your attention and patience, too. I now hand over to Aditya Dar for further proceedings.

Thank you, sir. We'll now have an interaction with our Board. So anybody desires of making an observation or asking question can raise his hand, mic will be supplied and the Board can have an interaction.

Yes, sir. I'm Atul Tiwari from Citi Research. Just two questions, sir. Sir, do you think that over the next 4, 5 years, we -- India will have peak power deficits again, given the dynamics in the sector today? And if that happens, will that increase the opportunity set for NTPC to set up more coal-based plants beyond the 7.2 gigawatts that you have planned? That is my first question. I have one more.

You want the answer for this or...

Okay. Sir, let me ask the second one. So you did refer to IPO of the Green Energy company. So should we conclude that the strategic investor induction is off the table and now IPO is the only plan? Or are you exploring both these alternatives in parallel?

Okay. Next.

What is the logic of separating out the coal business into a 100% subsidiary, especially when it is entirely captive for us and there is no commercial sales outside the company? That's my question.

Who was that? Just please -- okay.

You talked about IPO. And you say this particular meeting is for stakeholders person. So what I'm looking here, those who hold shares in NTPC, they must get a right in the proportionate to their holding in Green IPO. That is my first thing. And second thing, sir, in your speech, you said that pumped storage helps for renewable energy, that is not absolutely not clear. So if you can do that, that will be better. Another thing, what is -- I'm seeing here in last -- my whole career, hydrogen, ammonia, methane, all these are classified as toxic gases and very -- hydrogen was the most dangerous. And how suddenly during last 5 years, all these gases become safe to operate, use, that is not very clear, sir. Another thing that we talk about saving in water and other things so that we can reduce the cost of the electricity. But at the same time, we are seeing that the demand is increasing to -- reduce the demand, how we can say that, how we can do better equipment so that the energy can be saved? So what I'm looking here is BLDC to what extent we can use BLDC technology so that -- because BLDC technology still 2/3 of the energy. So whether it is possible to use to the higher capacity megawatt, KW rating, something like that, that I would like to know. And another thing may I -- small question, and one thing, great thing about you that you have got only 17% capacity, but you generate mid 25% requirements. So whether it is effort of others or whether it is your efficiency, that depends, A to Z.

I think you had put multiple questions. Anyway, we'll try to respond. We can discuss others on the high tea.

Girish from Morgan Stanley. Just three questions. One, on about time lines for the coal-based capacity, can you just suggest how this will get ordered in the next few quarters? Second one was this long-term 8 gigawatt on hydro, you just mentioning THDC plus NEEPCO. Can you help us, what's the ballpark CapEx that we should assume? And how much time does it normally take? And how we should kind of think through in slightly more longer term in terms of commissioning of this capacity? And finally, just the data point on C&I, out of the 20 gigawatt right now, where are -- what is the portfolio in C&I right now? And are these firm commitments in terms of PPA?

So this is Rohit for Antique Stockbroking.

You are in the front, so you will get the last chance.

So my first question is on that the country is planning 40 plus 10 in renewable 40 gigawatt of solar and 10 gigawatt of wind every -- can you hear me? I hope I'm audible. So what is the solution from a macro standpoint that you see for evening base load and peak load demand? So will you think gas-based can see a revival? Or do you think lithium and battery could possibly be a solution or pumped hydro storage? What is the unit economics that you have in mind which will be feasible? That's question number one. Two is to do with the SMRs, the modular reactor part. What is the capital outlay that you're planning on the nuclear front? Is there any concrete plan as such you have had in mind?

So two questions. First is on this, sir, on the IPO. Do you have any target in mind which you want to achieve in terms of scale and size and in megawatt term and EBITDA terms, when you look for the IPO? Is it FY '24 or FY '25 phenomena, when you want to start the process? So my second question is on the cost in the renewables side, the cost, the capital cost and the cost of capital. Both are equally important. So how you're going about ensuring that your manpower, everything, ensuring that your skill set is ensuring that we are able to produce renewable energy at the lowest cost of capital and [indiscernible] the IPPs, the private IPPs? My third question is on the NEP. The government is -- so CEA has targeting of 27 gigawatt of PFP, 47 gigawatt of battery and 25 gigawatt thermal. The cumulative number for the investment is INR 3 trillion, right? And we are targeting only 60 gigawatt. The number seems to be on the lower side.

No. I mean that you are thinking that this is on the lower side. So we are also a conservative company. So we are trying to give the consecutive figures. So you can expect a little higher than that. Okay. Let me try to attempt a few of the...

I have a question here.

Yes, please go ahead. Maybe the last one.

Two questions. One is related to -- Manish Bhandari from Vallum Capital. So my question is related to the grid imbalance, which has happened in many parts of the world because of a different source of energy getting pulled into the gate. So is your renewed interest in the coal is because of the likelihood of the grid imbalance, and this will be a thrust area, the revival of the coal, while NTPC will be the thrust area? And maybe some more direction you can put on the grid imbalance, which is likely to come and which I've seen happening in China also?

Sir, my question is, we are planning a CapEx of -- or 3.3 gigawatt of renewable capacity going to 20 gigawatt by 2032. So what is the cumulative CapEx that you have in mind from '24 to '32 in the renewable side?

No, no, no. I think it's much higher, 60 gigawatt.

Whatever may be the number, what I'm interested in is the amount of money that we will spend over the next 8 to 10 years on the renewable side? And what is the IRR that we have built in for this CapEx?

Okay. Sir, one question. The government and regulator wanted to implement this market-based economic dispatch from April 2022 with the NTPC's power projects as the first phase. So what is the status there? When is it likely to be implemented?

Yes, please. You are the last? Okay, go ahead.

Many years back, I was in the BASF plant in Germany. They have a central dome-like structure, which they called an incinerator. So the solid, liquid and gases waste from all the 29 plants of BASF was sent into the incinerator, will the usage of incinerator for emissions be helpful, cost wise?

No.

Sir, just one other question on NTPC Green IPO, just at the back. Atul Mehra from Motilal Oswal Asset Management. So would you be considering a full-fledged demerger of the business of NTPC Green? Or it will continue to remain substantially held by NTPC Limited and there will be some minority which will be offloaded in the IPO? So what is the thought process about the IPO per se?

Last year, it was said that transportation of this hydrogen is not viable. So are we in-house only developing those cylinders and all and developing? Or we are just going to pass on the hydrogen to those companies, sir?

Should I start attempting to -- one more at the back.

This is Koundinya from JPMorgan. So first on the renewable capacity addition, so you spoke about around 6 gigawatt of capacity addition all put together for FY '24 within which 4.6 gigawatt is only thermal conventional. So just trying to understand, are there some bottlenecks that you're seeing with respect to capacity addition on the RE front at this point in time? And second thing, now that the CEA regulations are in any which way being discussed for next control period. And you did speak about lower PLF with higher RE capacity addition, so are there some discussions going on to compensate for loss of PLF incentives over there? And lastly, if you can speak about some of the kind of returns that you are initiating in the Green initiatives or even on the nuclear front, if you can speak -- provide some color on that?

Okay. Let me start attempting and then I will request my colleagues to join in and just respond to the few questions. I think the most prominent question is that this NGEL IPO, how it is, how much percentage, when it is, how much it is and how the CapEx is going to be from the renewable energy. I think just simplicity and then I will ask Director Finance also to just chip in on that then whatever the missing link is if there is any. So the first thing is that we have just started the work. We will be very careful and we will be watching the market before hitting the market. How much it is required? I think we will start with the minimum and then let us see that how much will be required because you all know that we are generating enough cash to fund our ongoing projects or our CapEx. So it's not going to happen just tomorrow or day after, unless government is directing me to do it just by this day, it has to be done. So I think this is what -- I hope that I'm clarifying that in a simplified way. So I think there can be a number of questions around that, but I think as of now, this is what it is. So there was a direction from the government for the monetization and there is, still exist. We had complied last year, and we will see that we will go on doing and what is required. But as of now, I can only say that we will try to realize the good value. Otherwise, it's not the time bound rather than -- it should be a value-based rather than the time bound and all that. So I hope that this all questions related to the NGEL IPO are more or less covered into this boundary lines. The first question, who was the first one to just say 4, 5 years is going to be peak shortage, I think let me, I think, try to give on that my perspective and what -- as NTPC what we keep discussing on this issue. There had been quite a good amount of inventory, which is, I think, the negating exhausted. And that's the reason that we have started even looking at the coal-based assets in addition to our renewable. You can rest assure that you keep just consuming as much power as you can provided you are paying for that, obviously. And rest assured that we will be taking care of those increase in the demand and the -- how the projections are going to come. So without any hesitation. The 7 gigawatt is not something which is a new thing. This was already under kind of the planning or this kind of the drawing board and then what we are saying, these are the ongoing projects which we are taking. And as per the CEA guidelines and our CEA projections, I think we will be having -- we will be requiring now -- I think the gentleman just mentioned about those figures, but it goes to almost around -- maximum, I think the outer limit is going somewhere around 250, 252 gigawatt of coal based -- the thermal capacity. On the outer side, there are scenario, different scenarios. This is the most stress scenario on that side. But nevertheless, if there is a more requirement, let us see our economy rather than getting at 7%. Tomorrow, we start growing at 10%, and there is -- for the need, I think then, we will go for the further capacity addition on that side. The idea is that power should be available. It should be available on demand and should be reliable and it should be affordable. And it will be cleaner as we are going forward because of this SOx, NOx and other efficiency parameters, whatever it takes. So whatever it takes, I think then that's what we'll have to meet the energy requirement. We have to meet the power requirement in the country. So we are committed towards that. And the government takes the decision in the holistic way. It's not only we will be doing, but we will be playing the leading role in whatever it comes as far as the power sector is concerned. I hope that with this -- is there anything else or anybody would like to add on this side? Yes, please.