Gujarat Industries Power Company Limited (GIPCL) Q2 FY23 Earnings Concall Transcript

Gujarat Industries Power Company Limited (NSE: GIPCL) Q2 FY23 Earnings Concall dated Nov. 03, 2022

Corporate Participants:

Anshuman Ashit — Investor Relations

Shalin Patel — Company Secretary and Compliance Officer

K. K. Bhatt — General Manager and Chief Financial

Analysts:

Krishna Kumar — Retail investor — Analyst

Anshuman Ashit — ICIC Securities. — Analyst

Niraj Vijay Kamtekar — Prospero Tree — Analyst

Unidentified Speaker —

Vipul Shah — Sumangal Investments. — Analyst

Unidentified Participant — — Analyst

Rama Krishna — Zen money. — Analyst

Renjith Sivaram — Mahindra Mutual Fund — Analyst

Manoj Shah — Lux Go Investments — Analyst

Kushal Jain — Kushal Corporation — Analyst

Presentation:

Operator

Ladies and gentlemen, good day, and welcome to Q2 FY ’23 Earnings Conference Call of Gujarat Industries Power Company Limited, hosted by ICICI Securities. As a reminder, all participant lines will be in listen-only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing star, then 0 on your touchtone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Anshuman Ashit from ICICI Securities. Thank you, and over to you.

Anshuman Ashit — Investor Relations

Thank you, Yashashri. Good day, everyone. On behalf of ICICI Securities, I welcome you all to the Q2 FY ’23 post results conference call of Gujarat Industries Power Company Limited. Today, we are pleased to host the senior management of the company represented by Mr. K K Bhatt, General Manager and Chief Financial; and Mr. Shaleen Patel, Company Secretary and Compliance Officer; and other senior officials from the management. As directed by the management, we will directly open the lines for the Q&A session. So Yashashri, if you can please open the lines and go ahead. Thank you.

Questions and Answers:

Operator

Certainly. Thank you. [Operator Instructions] Ladies and gentlemen, we will wait for a moment while the question assembles. We have our first question from the line of Krishna Kumar, a retail investor. Please go ahead.

Krishna Kumar — Retail investor — Analyst

Hello. Am I audible?

Operator

Yes.

Krishna Kumar — Retail investor — Analyst

Hi. Thank you for the opportunity. And I have two questions. And one is that your PLF

Has been coming down over the years, for both the foreign [Indecipherable] And this quarter also has been pretty low. And is there any specific reason why they’re consistently going down, especially this year, most of the retail companies are doing better. And is there any [Indecipherable] in company stoppage of buying power from your customers?

K. K. Bhatt — General Manager and Chief Financial

Mr. Kumar, thank you very much. See, basically, power sector quarter two, we have taken this time, two shutdowns [Indecipherable] Unit 1 for economizer beam replacement because it was aging and planned unit was not going to full load. That was the reason that we have to take like last year, we did for Unit 2. Now SLP2 Unit 4, capital overall has been carried out for a period of 45 days because since the inception, capital overall was spending. These two reasons we are slightly having lower commercial availability than what you are thinking of. But as for the PPA, commercial availability has to be countered and taken into account for the purpose of fixed cost recovery on yearly basis. So plants are running very well. We will be able to recover whatever is the under recovery of fixed costs for the year. So that’s not an issue.

Krishna Kumar — Retail investor — Analyst

Okay. Hopefully, your profitability will come back to the pre-COVID levels, but still it hasn’t come back to the pre-COVID level.

K. K. Bhatt — General Manager and Chief Financial

Yes, yes, definitely. Because this time, what happened, two shutdowns has been taken into the same quarter, which was not the general factors year-on-year. This is generally one shutdown may be there in one quarter. We time to both the Unit 4, Unit 2 are in the quarter 2 only. That was the major, plus, it is capital overhauling and big exercise has been carried out. That was the reason. Otherwise, normally, it is not there, but hopefully, we will recover.

Krishna Kumar — Retail investor — Analyst

Okay. Thank you. My next question is regarding the dividend. And your dividend has been constant for many years and seen it actually going down. At some point of time, we got INR2.9 per share. Now we are getting only 2.7%. And despite all these additions of capacity and still the dividend is going up. So because even the public sector units, they follow that 30%, the DPAM policy, 30% of the profit or 5% of net worth, even that is not being followed. So any chance for revision in the dividend policy?

K. K. Bhatt — General Manager and Chief Financial

Usually, dividend is being declared by the Board of Directors. Looking at the future expansion projects, which are coming lineup and how the cash flow is moving, all these things are taken into consideration. Last year, the new project [Indecipherable] project was the initial stage. That was the reason slightly dividend was pushed back. But there is nothing like that it can be increased. We will take it forward next year as we look into it how the profitability, and we may go back to the same level also.

Krishna Kumar — Retail investor — Analyst

Okay. Thank you. Thank you very much.

Operator

Thank you. Ladies and gentlemen, to ask a question, Participants are requested to press to ask a question, please press star and 1 on your phone now. Participants are requested to press star and 1 to ask a question. We have our next question from the line of Anshuman Ashit from ICIC Securities. Please go ahead.

Anshuman Ashit — ICIC Securities. — Analyst

Thank you, sir, for the opportunity. Sir, I wanted to know what is the plan with our gas plants because it has not been operational since the past several years. Is there any discussion with off takers regarding this? Or is there internally any plans?

K. K. Bhatt — General Manager and Chief Financial

Since the plant was running until October, November 2021. Since November 21, because of the gas prices gone up in the international market and the availability of the APM gas totally went 0 because of the Saudi effect, we have no choice but to close down the unit. We are waiting for the opportunity in the coming days with the stability of the gas price. Once it is there, we can again bring back the machines to operation for our promoters and other participating units with a reasonable price level [Indecipherable]

Anshuman Ashit — ICIC Securities. — Analyst

Okay. Okay. Understood, sir. Sir, secondly, on our renewable projects, so there was 175 megawatt project that in the last call you had mentioned that you would be awarding. So could you please tell us the status on the scene?

K. K. Bhatt — General Manager and Chief Financial

375 megawatts, we are thinking to have the solar station at our mining reclaim land for our promoter to capture the requirement of some [Indecipherable] Since it is being treated as a captive, we are waiting for certain approvals from the [Indecipherable] it is most likely to be in place within a short period. And we will be coming out with the tendering process and everything, to put up these stations.

Anshuman Ashit — ICIC Securities. — Analyst

Okay. Thank you, sir. I’ll come back in the queue.

Niraj Vijay Kamtekar — Prospero Tree — Analyst

Thank you. We have a next question from the line of Niraj Vijay Kamtekar from Prospero Tree. Please go ahead.

Operator

Yes, sir, please go ahead.

Niraj Vijay Kamtekar — Prospero Tree — Analyst

Yeah, yeah. Okay. [Foreign Speech] production comment because due to shut down in the Q2. [Foreign Speech] a bit shutdown Q3 [Foreign Speech]

K. K. Bhatt — General Manager and Chief Financial

Your question is [Foreign Speech] everything is going on very well, barring enforcing circumstances, we are hopeful to [Foreign Speech]

Niraj Vijay Kamtekar — Prospero Tree — Analyst

So here, you shut down or maintenance or Job capex who are maintenance capex [Foreign Speech]. To cash plan life improvement, culture of longativity, could be you [Foreign Speech]

K. K. Bhatt — General Manager and Chief Financial

[Foreign Speech] SLP 1 major unit 1 [Foreign Speech] that is the requirement because Bement, which is going to impacting the generation level, machine Pullara, that was the reason we have to change those beams from procuring from BACnet or machine full load [Indecipherable].

Niraj Vijay Kamtekar — Prospero Tree — Analyst

Just generally, Sabiplant Barabe Chantae, lignite, so generally 800-plus million units of the power genres and Ota you currently the other Q3 is the normally concern to row-level in other Mark, Q3, many of Q4 at are they get?

Unidentified Speaker —

I see in my plan is that plans be full issue is we will be able to generate for next 6 months at full note. So we are not seeing any issues — so profitability at the end of the year at a very reasonable and good level of out.

Niraj Vijay Kamtekar — Prospero Tree — Analyst

Okay. Or sir, the Cara project could update BatasakKuki, which may press release, okay, some orders are placed with the K international or Manitoba and use to go bad Amarante Cadia.

Unidentified Speaker —

Our project Makara role has a developer has some pro developer. So we are concentrating on park development activity, scale pooling subscriptions BarajTender, which is very critical, timely day. So power evacuation from the Carapa for Phase 1 would be possible well within the time line as stipulated by or usage tenders, they are all in pipeline. They all will be in place by December and mostly Makita tenders. So after December, January, all the Parker activity after tendering will go on parallelly. Our plan sees activity on par level outgone the park reached a specific level of development, then we will go with the projects wherein how much capacity we’ll be adding at our park any other location that is still under discussion with the authority. So that I will update you once it is finalized. But anyhow, we are very confident to put up capacity in our part more than 50% on overall.

Niraj Vijay Kamtekar — Prospero Tree — Analyst

So 2, 3 75 megawatt is not just for coilaOut of that around 50% developed near — so 50% developer current or our Buda GCL develop Parag, in capex on both GSEs spend area or us for a fixed written Villega or skip Same Parastar Hua yes, those were also as an Negan.

Unidentified Speaker —

Your park has to be developed in also in phase manner capacity you have, we face worse 600, 600, 600 or 575 assay developer as per the approval received from or part faceless Phase 1 or Phase 2 project or Phase II May, Phase III and Phase IV Ki like that. manner me over a period of 5, 6

Niraj Vijay Kamtekar — Prospero Tree — Analyst

Okay. you keep paces flow maintenance capex or higher, this is only related to the Park development. could be technical years will fall out analyte order place take Agbara, only and only park development over or development Takasaki barometer order change when a recurring

Unidentified Speaker —

Absolutely.

Niraj Vijay Kamtekar — Prospero Tree — Analyst

Okay. Or sir, or again, investor summaries as bad shutdown or the major results can affect data. So to us a price really on a negative surprise need again. No, not Kalaeloa can shut down at maintenance caller Latin reason get marked a negative surprise that we were expecting something else or or one GTBS last 2, 3 years.

Unidentified Speaker —

We have noted and we will take —

Operator

We have a next question from the line of Vipul Shah from Sumangal Investments.

Vipul Shah — Sumangal Investments. — Analyst

Considering these 2 shutdowns in 1 quarter. So how much capacity was idled during distis quarter, sir?

Unidentified Speaker —

125 plus 1, 250.

Vipul Shah — Sumangal Investments. — Analyst

So 37

Unidentified Speaker —

50% capacity of Out of the 500, 250 megawatt was out of generation because of shutdown. But the shutdown was not for the entire quarter, let me tell you. The unit was we work for around 50 days you need one and Unit 2 was out for around 45 days.

Vipul Shah — Sumangal Investments. — Analyst

So considering this, what is your guidance for the generation for the entire year, how many million units vis-a-vis what was that figure for full last year?

Unidentified Speaker —

Call, we are targeting to achieve the commercial availability of 75% and 80%, which is as per PPA for getting the full fee cost. So our target is to reach to that level, most probably, we will reach to that target. It is our end to run the machines in that manner, at least we will be able to achieve the full fixed cost by running 50% in FLPP and 75% SPC.

Vipul Shah — Sumangal Investments. — Analyst

So in spite of having this shutdown for 45 and 50 days, you are confident that you will be able to recover full fixed cost for the entire year?

Unidentified Speaker —

We will be — we are targeting to assume that most probably, we will reach very near.

Vipul Shah — Sumangal Investments. — Analyst

But regarding

Unidentified Speaker —

Right now, we are targeting, but we have to see the end of the third quarter and starting of the mid of the fourth quarter, where we are and how we have to assume

Vipul Shah — Sumangal Investments. — Analyst

Okay. And sir, regarding Kaura project, what will be the capex for the development of Park? And what will be the return will be getting on those investments?

Unidentified Speaker —

The par total pure capex is around INR1,100 somewhere around wherein we are going to get 30% subsidiary from and are in that we are putting a detentioth the things are there. So then will be on the part on the per se. It would be around 13% to 14%.

Vipul Shah — Sumangal Investments. — Analyst

So INR1,100 crores you said only part, there will be no — no units.

Unidentified Speaker —

No, no, no. It is only a…

Vipul Shah — Sumangal Investments. — Analyst

So this 14% return, which you talked about will be after substrate the subsidy figure or it will be on entire INR100 crores.

Unidentified Speaker —

No, you have to equity portion, what we are going to put in on that, we are going to…

Vipul Shah — Sumangal Investments. — Analyst

So we are also like other developers, we will be also putting some capacity there. So how much capacity we are going to put in the park and on — during which, I’m sorry?

Unidentified Speaker —

Hello Phase INR600, INR600 crore, INR600 and INR575 would be the capacity addition at par in 4 phases, wherein we are targeting around more than 50% capacity to be added in our own parts by our own. This is our fundamental thought process right now.

Vipul Shah — Sumangal Investments. — Analyst

So more than 50% will be put in on our phones, right?

Unidentified Speaker —

Yes. Yes.

Vipul Shah — Sumangal Investments. — Analyst

Okay. But can you fit and can give tentative schedule of capacitization in the park?

Unidentified Speaker —

Line for the capacity and resonate part is next 5 years, 50% by 2024, balance 50% in the last 2 years. So our caramel in next 4, 5 years, capacity will be added in Casma

Vipul Shah — Sumangal Investments. — Analyst

All will be so large [Indecipherable]

Unidentified Speaker —

Yes, I will be so large

Unidentified Participant — — Analyst

And what will be our per megawatt cost at Kaura?

Unidentified Speaker —

For megawatt cost, Kaura right now 5.6 to 5 days is coming including editing.

Unidentified Participant — — Analyst

And okay. And how in I don’t think our balance sheet can support all these investments. So, what is your funding plan for this to approach

Unidentified Speaker —

Yes, we will be funding those in phase manner by 70, 30 days equity.

Unidentified Participant — — Analyst

But for your own equity, you will have to raise the debt, no?

Unidentified Speaker —

No, no, no. We have to raise the debt from the market and balance 30% equity. We have to infuse over a period of 4 to 5 years, that much of cash flow is there with the company to add on the equity portion for the project. That’s not an issue.

Unidentified Participant — — Analyst

And sir, lastly, there are 2 units which are operational. They both are lignite-based, right?

Unidentified Speaker —

Yes.

Unidentified Participant — — Analyst

Okay. Okay. And what is, so are we adding any thermal capacity in the near future? Or we are not going to add any thermal capacity?

Unidentified Speaker —

Right now, there is no future thinking for adding the thermal capacity. But it depends how the dynamics are going on as per the requirement — it may be possible we may add on the index 2, 3 years as for the requirement is possible.

Unidentified Participant — — Analyst

So, our entire lignite requirement we are able to source captively sir?

Unidentified Speaker —

Yes, yes. We have our own minds to capture the requirement of these 500 megawatts for the entire life of the station. Plus, we will be adding this life to these 500 megawatts by another 10 years through R&M wherein lignite is available at the Lucas with the approval. So, the life of those particular power plants will be added more by 10 years than this what it is now right now.

Unidentified Participant — — Analyst

So, what is the combined capacity of both plants right now? How many megawatts, sir?

Unidentified Speaker —

500 watts.

Unidentified Participant — — Analyst

And for that, how many million tons of lignite we require annually?

Unidentified Speaker —

Annually, it is around 36 to 38 meters less metric tons.

Unidentified Participant — — Analyst

Okay. 36 to 38 lakh tons. So, we don’t do any outside sales for Iignite?

Unidentified Speaker —

No, no, no. We don’t do.

Unidentified Participant — — Analyst

Okay. Okay. Okay, sir. And all the rest, if I have further questions, I’ll join the queue. Thank you.

Operator

Thank you. reminder to press start and one to ask a question. We have our next question from the line of Rama Krishna from Zen money.

Rama Krishna — Zen money. — Analyst

So, this is regarding your Hana project, actually, I have a couple of questions. since the time you have initiated this project actually and by now, actually, there has been some spike in raw material cross and everything. So has there been any cost escalation actually for that project? That is my first question. And the second question is for your own capacity at Caudaw. Who will be the EPC provider? And those things have been finalized?

Unidentified Speaker —

There are 2 things in there. One is the farm development activity, wherein we have already put in some amount and INR1,100 crore is the project cost and park activity has already been started. So as such, we don’t see any foresee any capital addition over their cost escalation. So, regarding part development, there is nothing to worry about the cost escalation. But second question about the cost escalation regarding the projects wherein the cost of raw material has gone up. But since the projects which are going to come up at the part has to be bid through the UL or city tender, the tendering process is likely to take less the on. In that tendering process, the people will take care of what the price rises have been in the recent past. So, the tariff will be according to the price on way. So, I don’t think there would be any issue to any of these project’s development, including [Indecipherable].

Rama Krishna — Zen money. — Analyst

And another thing is sometimes that I think you are mentioning in terms of exploring new business opportunities and you have put up all dedicated business and logo. So, any update on that front?

Unidentified Speaker —

See the business opportunities, basically, we have developed for this green hydrogen as well as the mixture of wind and solar at our crowder unit that is, again, at the Phase IV, we will look into it how we can blend this and how we can maximize output out of that, that we, our team is working on for the near future, how to penalize those originals as per the government of India industry new notification analyzing channelizing the green hydrogen like that. So, all these things.

Operator

Sorry. We’re not able to hear you. Yes. Please go ahead, sir.

Unidentified Participant — — Analyst

Excuse me. See, all these future green hydrogens and all these things are coming for that, that sale is working on. But for that, it requires 3, 4 years on the line working and everything, and we will be looking for and the Phase IV, where in green hydrogen can be channelize as per the requirement to the different required units that is fertilizer, and any other units or server is in need of in hydrogen as per the government of India policy. But everything will take time. We have to see how the things are going.

Rama Krishna — Zen money. — Analyst

Sir, can I ask a couple of questions more. I mean, operator?

Operator

Yes, please go ahead.

Rama Krishna — Zen money. — Analyst

So just. In FY ’25 onwards, I’m assuming that 50% of product project maybe commissioned. So, what will be the incremental revenues for an FY ’25 onwards that we can expected, that is first question. And second thing is just trying to understand, would you be needing to pay your royalty to governments are using lignite mines? And are you allowed to actually sell it for commercial purposes outside of your own capital purpose?

Unidentified Speaker —

The last question is regarding the royalties, which we are already paying to the government, and that is a part of my tariff that we are referring through as a part of tariff through cost as a variable charge. Second question, we are not allowed to sell lignite for permit, to the outside commercial uses. We have to consume for the captive purpose of generation of power. Second question, regarding is power. You have asked to 2025, what would be the revenues. Technically, revenue depends on the tariff at which we are going to get by way of PPA to given effective. Once it is finalized, we will be able to tell you the future revenue. But by and large, as a thumb rule you can take for this capacity, 50% capacity multiplied by this number of units at 29% to 27%. That much revenue will be added.

Rama Krishna — Zen money. — Analyst

Sure. Thank you.

Operator

Have a next question from the line of Anshuman Ashit from ICIC Securities.

Anshuman Ashit — Investor Relations

Thank you once again for the opportunity. So, can you please give us the EBITDA breakup for H1 in thermal and renewable and mining?

K. K. Bhatt — General Manager and Chief Financial

Is around 220. Yes. I mean, before interest and depreciation would be around INR220 crores.

Anshuman Ashit — Investor Relations

Sir, could you give us the breakup between thermal and renewable?

K. K. Bhatt — General Manager and Chief Financial

It’s difficult to give you the right now between thermal and renewable–

Operator

Hello, sir?

K. K. Bhatt — General Manager and Chief Financial

Just a minute.

Operator

Sure. Sure.

Anshuman Ashit — Investor Relations

Sir, in the meanwhile, sir, the next question is on the capex. So sir, in H1, what has been the capex

K. K. Bhatt — General Manager and Chief Financial

It would be around 115.

Anshuman Ashit — Investor Relations

115 million for thermal?

K. K. Bhatt — General Manager and Chief Financial

No. It is wind and solar

Anshuman Ashit — Investor Relations

115 for wind and solar

K. K. Bhatt — General Manager and Chief Financial

The rest you can take for thermal

Anshuman Ashit — Investor Relations

Okay. Sir, the second question is on the capex. So what has been the capex for H1? And what is our target for the full year?

K. K. Bhatt — General Manager and Chief Financial

We — basically, we have around capex of INR100 crores to INR150 crores for this quarter [Indecipherable] And it would be around 100, 100-plus in the H2 only as the park development activities. And the rest of projects and everything, all capex will be in the next financial.

Anshuman Ashit — Investor Relations

Okay. And sir, will the park be developed by the end of this year, is there a particular time line that you’re targeting? — for the Phase I development of

K. K. Bhatt — General Manager and Chief Financial

I’m putting to our project that

Shalin Patel — Company Secretary and Compliance Officer

Sir, as for the M&A pipeline, we have to complete the total park infrastructure–

Operator

Sir, I’m sorry, not able to hear you clearly.

Shalin Patel — Company Secretary and Compliance Officer

Now it is audible.?

Operator

Yes, yes. Please go ahead.

Shalin Patel — Company Secretary and Compliance Officer

Sir, as per the M&R guideline, we have to complete the part of before this March 24. So we are completing the all infrastructure activity before that to get the MNRE subsidy and all.

Anshuman Ashit — Investor Relations

Okay. Okay. And the user fee, which we’ll be charging on the usage of the facilities of the park will come funds the other developers are selected and that will be after the development of the part — is that a correct understanding?

Shalin Patel — Company Secretary and Compliance Officer

Yes, you are right.

Operator

Sorry, we’re not able to hear you.

Shalin Patel — Company Secretary and Compliance Officer

Actually, that the UDC will get once the project alluded to our developer

Anshuman Ashit — Investor Relations

Okay. And that will happen only once the part the development

Shalin Patel — Company Secretary and Compliance Officer

We are part debt ready, yes.

Anshuman Ashit — Investor Relations

Okay. And that is why FY ’24. Okay, understood. Thank you.

Operator

Thank you. We have our next question from the Renjith Sivaram from Mahindra Mutual Fund. Please go ahead, sir.

Renjith Sivaram — Mahindra Mutual Fund — Analyst

Yes, hi sir, good afternoon. I just wanted to get some idea of what are the renewables target that we are looking at for next year and the year after that in terms of and what kind of capex in FY ’23, ’24 will be assigning for the — for achieving these targets.

K. K. Bhatt — General Manager and Chief Financial

Early, we are targeting capacity additions at Cara location, Phase 1, 600 megawatts out of the 600 megawatts we are targeting at least 50% capacity addition in the face first. But it will be crystallized by the last quarter somewhere of the current financial year

How much capacity we are adding and what is the time line and how it is going to be mostly all the power stations in the are solar projects and the time line of 15 to 18 months. So you can take 15 to 18 months capex insuring by FCR in the next financial year somewhere.

Renjith Sivaram — Mahindra Mutual Fund — Analyst

How much will be that amount?

K. K. Bhatt — General Manager and Chief Financial

You can take 560 per megawatt, whatever is the capacity addition, we will be thinking 300 plus 325 for solar [Foreign Speech]

Renjith Sivaram — Mahindra Mutual Fund — Analyst

[Foreign Speech]

K. K. Bhatt — General Manager and Chief Financial

No, no, no. [Indecipherable]

Renjith Sivaram — Mahindra Mutual Fund — Analyst

Okay. Because previously, we have this — we used to have a high debt-to-equity ratio. So that’s why I’m asking.

K. K. Bhatt — General Manager and Chief Financial

No, no [Foreign Speech]

Renjith Sivaram — Mahindra Mutual Fund — Analyst

No, no, it was skewed more towards equity?

K. K. Bhatt — General Manager and Chief Financial

Yes. Yes, you are absolutely correct. Because at that time, we don’t have the — any future projects available. So we put in more equity in the project. But right now, we have capacity addition thinking or around 50% in the Cara. So we will be putting every project through 70-30 model.

Renjith Sivaram — Mahindra Mutual Fund — Analyst

So in the previous project also, can you restructure those and get more equity for funding these costs new

K. K. Bhatt — General Manager and Chief Financial

Not required because — we have enough cash in every year by declaring the cash flow to be something that is cash flow depreciation — so we will be able to put in the equity in sale manner for the projects, not a..

Renjith Sivaram — Mahindra Mutual Fund — Analyst

And what’s the target for coal business for FY ’23 and ’24 in terms of megawatt? coal business, what is our target Coal plant?

K. K. Bhatt — General Manager and Chief Financial

Met this power plant target, we are running the project plans very well. Let

Renjith Sivaram — Mahindra Mutual Fund — Analyst

So what is our targeted kind of generation for this year and next year?

K. K. Bhatt — General Manager and Chief Financial

For lignite this thermal station. The Phase 1, we are targeting 75%. And Phase 2, we are targeting 80%. So any gestation, which is generating more than 75% to 80% in the net was technology. It is one of the best panning

Renjith Sivaram — Mahindra Mutual Fund — Analyst

Okay. And we are not facing any issue in terms of the current increase in prices of coal, lignite and all?

K. K. Bhatt — General Manager and Chief Financial

We are having our own lignite. So it is the size is captive mines and a price mechanism. So we are not affected by this increasing price and all those things.

Renjith Sivaram — Mahindra Mutual Fund — Analyst

So post — because of this 45-day shutdown, we had all these issues. So next quarter onwards, we will be back to normal?

K. K. Bhatt — General Manager and Chief Financial

We are in we are in normal — [Indecipherable]

Renjith Sivaram — Mahindra Mutual Fund — Analyst

Okay. Okay. Okay, sir. Thanks, and all the best.

Operator

Thank you. We have a next question from the line of Vipul Shah from Sumangal Investments. Please go ahead.

Vipul Shah — Sumangal Investments. — Analyst

So what is the cumulative capex for Carapa that we have done till date?

K. K. Bhatt — General Manager and Chief Financial

Our total capex to be up to- Today, that is INR100 crores, INR120 crores — that is for the park development activity.

Vipul Shah — Sumangal Investments. — Analyst

INR100 – 120 crores. And what we’ll spend next year on park development?

K. K. Bhatt — General Manager and Chief Financial

It would be around INR400 crores to INR500 crores.

Vipul Shah — Sumangal Investments. — Analyst

So at that time, we’ll have to raise the debt, right?

K. K. Bhatt — General Manager and Chief Financial

Yes. Yes.

Vipul Shah — Sumangal Investments. — Analyst

Okay. And have you tied up the date and what is the coupon rate?

K. K. Bhatt — General Manager and Chief Financial

We have not tied up, [Indecipherable] we have already initiated the dialogue with various financial credit bank. Most probably the rate would be ranging between 7 to 7.5.

Vipul Shah — Sumangal Investments. — Analyst

7 and 7.5. Okay, sir. And lastly, sir, do we have any operational renewable capacity as of today?

K. K. Bhatt — General Manager and Chief Financial

Yes, sir, we have our own renewable capacity 252 is my solar and 112.4 wind capacity, running capacities there. It is adding to the bottom line every year around INR100 crores, INR110 crores.

Vipul Shah — Sumangal Investments. — Analyst

Okay, sir. Thank you and all the best.

K. K. Bhatt — General Manager and Chief Financial

Thank you.

Operator

Thank you. Ladies and gentlemen, to ask a question, please press star and 1 on your phone now. We have a question from the line of Manoj Shah from Lux Go Investments.

Manoj Shah — Lux Go Investments — Analyst

Yeah, good afternoon, sir. Just wanted to reconfirm on this, you got around 810 megawatts of your [Indecipherable] capacity. Based on like you have your own captive mines to 100% of your requirements for these 810 megawatt is done to our old captive mine. And for this future part where you will have 3 units or 100 megawatts and other unit of 500 megawatts. Will our mines be able to produce sufficient ignite to run this park, the power plant and the [Indecipherable]

K. K. Bhatt — General Manager and Chief Financial

Clearly, we have the thermal station lignite this 500-megawatt near tourist location. And this [Indecipherable] location has a good wherein we are going to have the capacity of solar, not the lignite that requirement of lignite at Cara project will not be there. It is confined to only 500 megawatt thermal station near tourist.

Manoj Shah — Lux Go Investments — Analyst

Okay. And like just wanted what sir like lignite mine result, like kind of how many years it would be sufficient? And how many much more capacity of thermal banks you can add with your existing mine?

K. K. Bhatt — General Manager and Chief Financial

We have the available lignite surplus from the captive mine to cater the over 500 megawatts until the PPA life plus 10 years.

Manoj Shah — Lux Go Investments — Analyst

Okay. Thank you.

K. K. Bhatt — General Manager and Chief Financial

Thank you.

Operator

As there are no more questions, I would now like to hand the conference over to Anshuman Ashit. Over to you, sir.

Anshuman Ashit — Investor Relations

Thank you. Sir, I have one final question. Sir, the 30% subsidy that we will be receiving for the [Indecipherable] project and [Indecipherable] so on what basis will be receiving this, whether it be on a milestone basis or any other?

K. K. Bhatt — General Manager and Chief Financial

It will be milestone.

Anshuman Ashit — Investor Relations

But sir, what are those milestone?

K. K. Bhatt — General Manager and Chief Financial

We have not looked into it because it is as per the M&R guideline. It is for the M&R guideline.

Anshuman Ashit — Investor Relations

Okay. Sir, we have one more question. If we can take that.

Operator

Sure. We have a question from the line of Kushal Jain from Kushal Corporation. Please go ahead.

Kushal Jain — Kushal Corporation — Analyst

Hello. Good evening, everyone. Good afternoon. I wanted to know like since 2015 onwards, we have made investment of around INR2,000 crores in renewable energy, solar or wind, but I can’t see any increase in revenues in 2015. So what is the problem? Why the revenue is not growing?

K. K. Bhatt — General Manager and Chief Financial

See, the problem is nothing but how we look into it that is more important, because as you know, our this thermal station, gas based station are nowadays not at all working, that much revenue from the top time is being looked after by this solar and wind, because day by day, our gas based station more or less not working since 2015 and that is being taken care of by renewables because it is the need of the day because you have to change your line of business, because if you would have been in this gas based station only, we would have been in a problem right now, because of the nonavailability of gas. But we have already shifted our focus to ARI, and we are now putting more focus to ARI only in the future for future expansion and all these things. No, no, not right now because we are thinking to preserve it and look forward how the gas price movements are likely in the next couple of 6 months or 1 year down the line. If it is most probably if it’s within the range of our promoters to take the power, then again, we can pull the machine and provide the power to our promoters for requirement.

Kushal Jain — Kushal Corporation — Analyst

Okay. And sir, one more thing, like what is the revenue guidance for coming next year?

K. K. Bhatt — General Manager and Chief Financial

Revenue you mean?

Kushal Jain — Kushal Corporation — Analyst

What is the revenue you are expecting maybe next year? If you can provide the outlook.

K. K. Bhatt — General Manager and Chief Financial

Revenue, we are talking about PBT or CAD.

Kushal Jain — Kushal Corporation — Analyst

No, no, only the revenue thing, revenue. Revenue part, not the profit.

K. K. Bhatt — General Manager and Chief Financial

Okay. Revenue part right now 1,200 to 1,300, but based on the capacity addition, which is going to take place in the next 1, 1.5 year next one year, it will be flat. But one year down the line, once we add the capacity as I already explained, how much capacity we are going to add 200, 300 that depends. Accordingly, the top line will be added by that revenue. Next one you are down the line, it would be [Indecipherable]

Kushal Jain — Kushal Corporation — Analyst

All right. Thank you very much, sir.

Operator

Thank you. We have our next question from the line of Manoj Shah from Lux Go Investments. Please go ahead.

Manoj Shah — Lux Go Investments — Analyst

[Indecipherable] gas based power plant, which has been closed due to the non-availability of APM gas or high gas prices. Like regarding your PC, is there any party flows in that? Or do you have to supply at a big rate, [Indecipherable]

Operator

Mr. Shah, I’m sorry. Can you use the handset, please?

Manoj Shah — Lux Go Investments — Analyst

In the near term, like the gas prices aren’t likely to come down and availability of APM gas is very difficult. So how do you see — is the tariffs that you will get on per unit basis is a fixed tariff or there is a cost pass-through clauses there?

K. K. Bhatt — General Manager and Chief Financial

I would like to update you for my gas stations are already PPA line is over 13 years life and everything is over, fully depreciated. We have maintained in a very good condition, so only once the plant starts will be available gas cost, we would be able to sell it at the cost-plus mechanism to our promoters and the required participating units.

Manoj Shah — Lux Go Investments — Analyst

Okay. So at the current pricing, you think it is not viable because the gas cost will come too high. You are not in a position to run those plants. Is that correct?

K. K. Bhatt — General Manager and Chief Financial

Yes, correct. Correct.

Manoj Shah — Lux Go Investments — Analyst

Okay. So at what price range of the gas will these plants will become viable? If you can give some indication?

K. K. Bhatt — General Manager and Chief Financial

It would be between $5 to $8.5 per barrel/MBPU, if cost comes down, then we will be able to generate the electricity at a competitive rate to sell it to some others.

Manoj Shah — Lux Go Investments — Analyst

So it could be $88.5 barrels per MBPU [Indecipherable]

K. K. Bhatt — General Manager and Chief Financial

Yes. Yes.

Manoj Shah — Lux Go Investments — Analyst

Okay, okay. And how much is this capacity gases? [Indecipherable] station 1 and 2. Is that correct?

K. K. Bhatt — General Manager and Chief Financial

Yes. Yes. Yes.

Manoj Shah — Lux Go Investments — Analyst

Okay, okay. Thank you.

Operator

Thank you. We have a next question from the line of Niraj Vijay Kamtekar from Prospero Tree. Please go ahead.

Niraj Vijay Kamtekar — Prospero Tree — Analyst

Thank you for the second time and opportunities. Sir, company capacity in the megawatt gas-based plant also ignite or 375 renewable capacity. I may say 310 gas-based plant they were non-operating condition. So operating is only 75 mega there are tariff INR56 crores to INR58 crores, we are spending for the oral. — pass-through to Paco per megawatt Lean the replacement cost must be around 4000-plus crores or company current market current market is INR1,300 crores a time. It means it is only 30% to 35% of the replacement cost. So other ban Kara, would say shareholder key investor terabit 30%, 35% discount where company can stock valued on a [Indecipherable] to say a chart expansion maker or Italia shareholder for dividend [Indecipherable]?

K. K. Bhatt — General Manager and Chief Financial

Anything cannot be looked at the perspective of division only. We have to see the requirement of detection, what is the requirement, where we are going. We have to expand in the different lines. There are so many employees, company has to run. So we have to change our line of action to be in the market, to be competitive.

Unidentified Participant — — Analyst

[Foreign Speech] because of [Foreign Speech] availability — [Indecipherable] and affordable needs.

K. K. Bhatt — General Manager and Chief Financial

I cannot run this on the dividend prospective. And then —

Unidentified Participant — — Analyst

[Foreign Speech] I mean, the dividend at Mode shareholders is here, well, you may appreciate entire dividend is not the criteria of investment. — like in Asia, we have as to ask Manara other replacement development are an but I get INR5.6 crores to INR5.8 crores per megawatt cost for saving the Cara project. So others may to INR5 crore a replacement cost on carton the operating do megawatt of 500 ignited and 375 renewables, other 875 multiple per megawatt tower, then the replacement cost is more than INR4,000 crores — and the market cap is only INR1,300 crores at the current market. So it is only 30% to 35% of the replacement costs then after spending so much money for the future expansion or Oscar the other company stock is stated at the 30% to 35% of the replacement cost to shareholder bit of that rather than the biostat was shareholder can rework or names mutative any bit trade.

K. K. Bhatt — General Manager and Chief Financial

[Foreign Speech]

Unidentified Participant — — Analyst

Hello?

K. K. Bhatt — General Manager and Chief Financial

[Foreign Speech] We will look into it.

Operator

Thank you. We have our next question from the line of Kushal Jain from Kushal Corporation.

Kushal Jain — Kushal Corporation — Analyst

Thank you, for the opportunity again. I wanted to know like, can you provide the breakup of renewable — like profit from the renewable and the thermal? In the balance sheet or in the quarterly statement — you are not providing properties — how much revenue is coming from renewable and from the thermal?

K. K. Bhatt — General Manager and Chief Financial

We are talking about revenue?

Kushal Jain — Kushal Corporation — Analyst

Basically, if you can provide in your financial data, what is the revenue breakup from renewable and non-renewable — separately. Then we can — actually, we can understand you think that you are making the investment in the renewable and the revenue is also increasing. But right now, we are not able to see how much the —

K. K. Bhatt — General Manager and Chief Financial

The way you are asking, you see the revenue from the renewables be on a lower side because — [Indecipherable] — I will give you on May. Just give me [Indecipherable] I will tell you.

Kushal Jain — Kushal Corporation — Analyst

Basically, in last 5 years, how much revenue from the nonrenewable has decreased? There should be — if it is provided properly in the financial data, then it will be very —

K. K. Bhatt — General Manager and Chief Financial

— I will give you, Kushal. Give me your mail ID — send me your mail ID.

Kushal Jain — Kushal Corporation — Analyst

Okay. Okay. So how to send like — so someone will contact me for that?

K. K. Bhatt — General Manager and Chief Financial

Yes, yes.

Kushal Jain — Kushal Corporation — Analyst

Alright, I will provide it.

Operator

Mr. Jain, does that answer your question?

Kushal Jain — Kushal Corporation — Analyst

Yes, yes.

Operator

We have our next question from the line of Vipul Shah from Sumangal Investment. Please go ahead.

Vipul Shah — Sumangal Investments. — Analyst

Sir, I also want breakup of thermal and renewable EBITDA. And — it is my suggestion that when you publish your results, it is better like you split the thermal and renewable EBITDA so that investors can have a better picture. The revenue and EBITDA should be mentioned separately — so why you are not doing this?

K. K. Bhatt — General Manager and Chief Financial

For the SEBI guideline, it is not required. That is what we are not doing because —

Vipul Shah — Sumangal Investments. — Analyst

No, no, this is not a question of SEBI guideline. This is a question of investor friendliness — if investor is asking, if there is no harm for competitive reason, you should give the details, sir. No.

K. K. Bhatt — General Manager and Chief Financial

I’m giving you now. But as per SEBI guideline, what we have published there is not required, what I want to say. But since you have asked, I’m providing you 105, 106 from renewable and 141 from thermal.

Vipul Shah — Sumangal Investments. — Analyst

That is for which period?

K. K. Bhatt — General Manager and Chief Financial

That is half yearly, the CR PBT.

Vipul Shah — Sumangal Investments. — Analyst

PBT or EBITDA?

K. K. Bhatt — General Manager and Chief Financial

EBITDA

Vipul Shah — Sumangal Investments. — Analyst

EBITDA, 106 from renewable and 145 from Thermal.

K. K. Bhatt — General Manager and Chief Financial

Correct, correct.

Vipul Shah — Sumangal Investments. — Analyst

Thank you so much, sir. Thank you.

K. K. Bhatt — General Manager and Chief Financial

Thank you.

Operator

Thank you. As there are no more questions, I would now like to hand over the call to Anshuman Ashit from ICICI Securities. Please go ahead.

Anshuman Ashit — Investor Relations

Thank you, everyone, for joining this call. And especially, I thank the management of GIPCL for giving us the opportunity once again to host the call and giving very detailed answers to each and every question. Thank you, everyone, and we can now close.

K. K. Bhatt — General Manager and Chief Financial

Thank you. Thank you, everyone.

Operator

[Operator Closing Remarks]