NHPC LTD (NHPC) Q2 FY23 Earnings Concall Transcript

NHPC LTD (NSE:NHPC) Q2 FY23 Earnings Concall dated Nov. 11, 022

Corporate Participants:

Yamuna Kumar Chaubey — Chairman and Managing Director

Rajendra Prasad Goyal — Director, Finance

Analysts:

Apoorva Bahadur — Investec — Analyst

Aniket Mittal — SBI Mutual Fund — Analyst

Mohit Kumar — DAM Capital — Analyst

Anuj Upadhyay — HDFC Securities — Analyst

Rupesh Sankhe — Elara securities private limited — Analyst

Presentation:

Operator

Ladies and gentlemen, good day, and welcome to the NHPC Q2 FY ’23 Earnings Conference Call hosted by Elara Securities Private Limited. As a reminder, all participant lines will be in the listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes. (Operator Instructions) Please note that this conference is being recorded.

I now hand the conference over to Mr. Rupesh Sankhe from Reliance Securities Private Limited. Thank you, and over to you, sir.

Rupesh Sankhe — Elara securities private limited — Analyst

Yeah. Good afternoon, everyone. On behalf of Elara Securities, we welcome you all for the Q2 FY ’23 conference call of NHPC. I take this opportunity to welcome the management of NHPC represented by Mr. Y.K. Chaubey sir, our Chairman and Managing Director; Mr. R.P. Goyal sir, Director, Finance. We will begin the call with a brief overview by the management followed by a Q&A session.

I will now hand over the call to Mr. Y.K. Chaubey sir for his opening remarks. Over to you, sir.

Yamuna Kumar Chaubey — Chairman and Managing Director

Good evening, friends. The NHPC Board has adopted half yearly financial results for the period ended 30th September ’22 in its meeting held on 10th November ’22 and the same has already been communicated to exchanges. By now, I hope you all would have got a chance to go through the quarterly and half yearly set of numbers.

First, I’ll just touch upon major highlights and then detailed analysis of the results shall be discussed by our Director, Finance, Shri Goyal sir. A brief highlights of the financial results and important updates on the Company are as under: During the first half — first — during half year FY ’23, our power stations have achieved generation of 18,048 million units, vis-a-vis, 17,155 million units generated in the corresponding period of the previous year, which is about 5% higher that is 893 million units. This is mainly due to the higher water availability and restoration of Sewa-II power station, which was completely shut down with effect from 25th September 2020 till 21st February 2022.

Our PAF for half yearly — half year FY ’23 stands at 99.23% against the corresponding previous period PAF of 95.74%, which is about 4% high. During half year FY ’23, Company has earned revenue from operation of INR5,482 crore as against INR4,916 crore in the corresponding previous year — previous period. During half year FY ’23, Company has earned PAT of INR2,483 crore, vis-a-vis, INR2,217 crore of corresponding period, which is up by INR266 crore, that is 12% approximately.

On physical front, as we have been sharing, the active construction work at Subansiri Lower Project site is going on full swing, some of the major milestones have been completed towards commissioning of the project, although project hit by flood and extended monsoon in last two months, but I am very hopeful that we can commission two units by June ’23, the full commissioning of that is all units of the project is expected by March ’24.

In respect of Parbati-II HE projects, the pace of tunneling work has been hampered due to the formation of cavity and ingress of water from tunnel face, which flooded the tunnel, several setbacks events occurred at this month, during previous months, the work has already been resumed. We are trying our best to complete the remaining tunneling work to complete the project by December ’23.

In respect of Dibang Multipurpose Project, that is 2,880 megawatt, PIB in its meeting held on 11th October ’22 recommended the proposal regarding implementation of the project by NHPC for consideration of CCEA. Draft material for CCEA note has been submitted to MOP on 28th October ’22. The estimated cost of the project is INR31,876 crore and estimated levelized tariff is INR4.46 per unit.

As shared earlier that NHPC has acquired Lanco Teesta Hydro Power Limited, Teesta-VI Project 500 megawatts through NCLT route, estimated cost of the project is INR5,748 crore, out of which we have already incurred expenditure of INR1,819 crore in September ’22. The estimated levelized tariff of the project is INR4.07 per unit, the expected commissioning schedule of the project is July ’25. Further, we are in the progress of a merger of LTHPL with NHPC and it is presently under examination by MCA.

As we have already shared that NHPC has acquired another project, Jal Power Corporation Limited, Rangit-IV Project, that is 120 megawatt in Sikkim through NCLT route. The estimated cost of the project is INR938 crore, out of which, we have already incurred expenditure of INR334 crore till September ’22, and estimated levelized tariff is INR4.27 per unit. Further, we are in progress of — process of merger of JPCL with NHPC. The project is expected to be completed by August ’24.

The Ratle HE Project, UT of J&K 850 megawatt project is being developed by Ratle Hydroelectric Power Corporation Limited, a Joint Venture of NHPC and JKSPDC, in which NHPC holds 51% share. The contract of Turnkey execution of the project has been awarded to Ms. [ph] Megha Engineering and Infrastructure Limited, on 15th January ’22. Honorable Prime Minister of India laid down — laid the foundation stone of the project on 24th April ’22. The estimated cost of the project is INR5,282 crore, the work has already been started at site and we have incurred expenditure of INR110 crore till September ’22. The levelized tariff of the project is INR3.92 per unit, the project is expected to be completed by February ’26.

Presently, NHPC through its subsidiary CVPPPL is executing three projects in Chenab Basin, UT of J&K, construction work of Pakal Dul HE Project, 1,000 megawatt and Kiru HE Project, 624 megawatt is progressing well within the overall schedule of the completion, that is July ’25, and we have incurred expenditure of INR2,517 crore and INR815 crore till September ’22 on these projects respectively.

Further, Honorable Prime Minister of India, he laid the foundation stone of the Kwar Hydroelectric Project, 514 megawatt on 24th April ’22, Civil work package stands [ph] awarded and work has been — work has also been started at site. The project will be completed by November ’26. The estimated cost of the project is INR4,526 crore and estimated levelized tariff price is INR4.44 per unit. As we have said that some of the largest hydroelectric projects in Siang and Subansiri Basin have been allotted to NHPC by Ministry of Power on 22nd December ’21. The project in Subansiri Basin, that is 2,000 megawatts Subansiri Upper and 1,800 megawatts Subansiri Middle shall be developed by NHPC on a standalone basis while 10,000 megawatt Upper Siang and 2,700 megawatt Siang Lower in Siang Basin are to be developed in JV Mode. Apart from above, NHPC is working on three new projects in the UT of J&K viz Sawalkot 1,856 megawatt, Uri-I Stage-II 240 megawatt, Dulhasti Stage-II 260 megawatt, and Dugar Project 500 megawatt in Himachal Pradesh.

In respect of Sawalkot HEP, agreement on handing over/taking over has been signed between NHPC and JKSPDC on 11th December 2021 and NHPC has taken over the project. Ministry of Power has accorded investment approval on 12 July 2022 for incurring expenditure on pre-investment activity for an amount of INR973 crore at November ’21 price level. Process for obtaining forest clearance has been initiated. DPR of Uri-I Stage-II HEP was submitted on 18th May 2022 and accepted by CEA for examination in the meeting held on 20th June ’22. EIA/EMP studies for Environment Clearance is in progress. 11 out of total 23 clearances have been obtained. Further process for obtaining forest clearance is also in progress.

In the respect of Dulhasti Stage-II project, clearance of seven out of nine numbers of chapters has been received and EIA/EMP study of Environment Clearance is in progress. No forest clearance is required in this project and NOC has been obtained from Forest Department. Further, Defence Clearance has already been accorded by Ministry of Defense.

DPR of Dugar Project has been concurred by CEA on 26 April ’22, tender for EPC Contract for Dugar Project is under process and we shall be ready to — ready for award once we get the requisite PIB/CCEA clearance for the implementation of the project. Bulk Power Supply Agreement has been signed between Lanco Teesta Hydro Power Project — Power Limited and Chhattisgarh State Power Distribution Company Limited at Raipur on 21st July ’22 for power generated from 500 megawatt Teesta-VI HE Project for a period of 40 years from COD.

We have inked an MOU with the Investment Board of Nepal at Kathmandu, Nepal on 18th August 2022 for development of 750 megawatt West Seti and 450 megawatt SR-6 hydroelectric projects. NHPC also signed MOU with PTC India Limited for Power Sales Arrangement of these projects on 30th August 2022. Further, the discussions for implementing 480 megawatt Phukot Karnali project in Nepal are in final stage.

NHPC Renewable Energy Limited, a wholly owned subsidiary of NHPC Limited, has signed MoU with Government of Rajasthan on 24 August 2022 at New Delhi for Development of 10,000 megawatt Ultra Mega Renewable Energy Power Park in the State of Rajasthan. NHPC bagged 1,000 megawatt capacity Solar Power Project at a Viability Gap Funding of INR44.9 lakh per megawatt under CPSU Scheme, Phase-II Tranche-III in the e-Reverse auction conducted by Indian Renewable Energy Development Authority on 23rd September ’21. Further, EPC contract has been awarded for development of the project and transmission line for (inaudible) station to ISTS service station, along with the comprehensive operation and maintenance for five years.

Power Purchase Agreement has been signed between Bundelkhand Saur Urja Limited and Uttar Pradesh Power Corporation Limited for Kalpi Solar Power Project on 28th April ’22 at a fixed tariff of INR2.68 per unit. Further, the project has been synchronized with the Grid and commissioned partially on 9th July ’22. Capacity will be added to Grid gradually to full capacity of 65 megawatt by 31st December ’22.

As we have shared earlier that NHPC as an Intermediary Procurer awarded 2,000 megawatt ISTS connected solar PV Power Project to five numbers of developers with a trading margin of INR0.07 per unit. Out of 2,000 megawatt, 320 megawatt was awarded to Mr. Avaada Engineering [ph] Private Limited at Bikaner, Rajasthan. Recently, part commissioning of 153.6 megawatt and 112 megawatt of said project has been achieved on 14th and 28th September ’22, respectively. Balance capacity of 54.4 megawatt is expected to be commissioned by November ’22. For balance capacity land allocation — land location, confirmation, transmission, connectivity, feasibility by CTU [ph] financing arrangements, supply order for module balance and balance of system has been achieved by respective (inaudible).

NHPC is also exploring to develop Pumped Storage Projects in the state of Andhra Pradesh, Odisha, Jharkhand, Karnataka, Madhya Pradesh and Maharashtra. We are conducting a study on the feasibility of certain projects like Indirasgar/Omkareshwar Pumped Storage scheme and Tekwa-II Pumped Storage scheme, 800 megawatt in Madhya Pradesh and also some projects in other states. NHPC has annual CapEx plan of INR8,000 crores approximately in the coming years, considering its projects pipeline.

This is all from my side. Now I request Director of Finance, Shri Goyal, to discuss financial results in detail. Thank you.

Rajendra Prasad Goyal — Director, Finance

Good evening, friends. Am I audible?

Operator

Yes, sir. You are audible. Please proceed.

Rajendra Prasad Goyal — Director, Finance

Okay. I’m going to share with you detailed quarterly and half yearly set of numbers with the detailed analysis. NHPC Board has adopted half yearly financial results for the period ended 30th September 2022 in its meeting held on 10th November ’22 and the same has already been communicated to exchanges.

Brief highlights of the financial results and important updates on the Company are as under: During half year FY ’23, our Power Stations have achieved generation of 18,048 million units, vis-a-vis, 17,155 million units generated in corresponding period of previous year, which is about 5% higher. In million units, it is 893 million units.

During the second quarter of FY ’23, our power stations have achieved generation of 9,980 million units, vis-a-vis, 9,912 million units generated in corresponding period of the previous year, showing marginal increase. Our PAF for the half year FY ’23 stands at 99.23% against the corresponding previous period PAF of 95.74%, which is about 4% higher. Our PAF for second quarter FY ’23 stands at 99.87% against the corresponding previous period PAF of 99%, which is about 1% higher. For half year FY ’23, Company has earned revenue from operation of INR5,482 crore as against INR4,916 crore in the corresponding previous period, which is 12% higher. In an absolute figure, it is INR566 crores. The increase in revenue is mainly due to higher generation amounting to INR450 crore approx, and an increase in revenue from Power Trading, this is by INR111 crore.

During Q2 FY ’23, Company has earned revenue from operations of INR2,888 crores as against INR2,745 crore in the corresponding previous preriod, which is about 5% higher. The increase in revenue is mainly due to higher generation and increase in revenue from power trading business by INR7 crore, increase in revenue by — on account of higher generation is to the tune of INR137 crore.

Other income for the half year FY ’23 is of the order of INR332 crore, vis-a-vis, INR374 crore during the corresponding previous period, which is about 11% lower, that is INR42 crores. This is mainly due to decrease in late payment surcharge by INR126 crore (Technical Difficulty) our relation [ph] position has been improved. Other income for Q2 FY ’23 is of the order of INR115 crore, vis-a-vis, INR171 crore during the corresponding previous period, which is about 33% lower to the tune of INR56 crore, this is also mainly due to decrease in late payment surcharge by INR102 crore.

During half year FY ’23, the generation expenses have gone up from INR578 crore to INR637 crore, that is INR59 crore, which is mainly due to applicability of water cess in state of Uttarakhand and Sikkim. During Q2 FY ’23, the generation expenses have gone up from INR716 crore to rupees INR767 crore, that is by INR51 crore, which is mainly due to applicability of water cess in Uttarakhand and Sikkim. During half year FY ’23, the employee cost has come down from INR623 crore to INR598 crore, that is INR25 crore. The decrease is mainly due to superannuation of employees, which is partly offset by increase due to increment, promotion, et cetera. During Q2 FY ’23, the employee cost has come down from INR306 crore to rupees INR291 crore, that is by INR15 crore and which is again due to superannuation of employees and partly offset by increase in DE [ph], et cetera.

During FY — during half year FY ’23, there has been a decrease in the finance cost from INR268 crore to INR244 crore, that is by INR24 crore, which is mainly due to change in rate of interest by INR11 crore and decrease due to repayment of loans by INR16 crore. During Q2 FY ’23, there has been decrease in the finance cost from INR134 crore to INR107 crore, that is by INR27 crores, which is mainly due to change in rate of interest by INR6 crore and decrease due to repayment of loans by INR8 crore. During half year FY ’23, the depreciation and amortization expenses have gone up from INR559 crore to INR571 crore, that is by INR12 crore, which is mainly due to additional capitalization in certain power stations. During Q2 FY ’23, the depreciation and amortization expenses have gone up from INR280 crore to INR284 crore, that is by INR4 crore, which is mainly due to additional capitalization in certain power stations.

During half year FY ’23, other expenses have gone up from INR595 crore to INR858 crore, that is by INR264 crore, this is mainly due to increase in provision against impairment of investment in respect of Loktak Downstream Hydroelectric Corporation Limited by INR106 crore. And fair value loss on financial assets amounting to INR124 crore and increase in CSR expenditure by INR43 crore, which is partly offset by decrease in insurance expenses by INR17 crore. During Q2 FY ’23, other expenses have gone up from INR283 crore to INR352 crores, that is by INR69 crore, this is mainly due to increase in fair value loss on financial assets of INR38 crore and an increase in R&M expenses, security Expenses and CSR expenses, et cetera.

During half year FY ’23, MAT Credit of INR264 crore has been recognized in the books, out of which, net impact of INR127 crore has been on the profit of the Company. In other words, INR127 crore has been added in the profit on account of MAT Credit recognition. During Q2 FY ’23, MAT Credit of INR138 crore has been recognized in the books, out of which net impact of INR123 crore has been on the profit of the Company. During Half Year FY ’23, we have earned a profit after tax of INR2,483 crore, vis-a-vis, INR2,217 crore of corresponding previous period, which is up by INR266 crore, that is approx 12% and the reasons for decrease and increase in the line items, we have just discussed in the foregoing paragraph. During Q2 FY ’23, we have earned profit after tax of INR1,433 crore, vis-a-vis, INR1,305 crore of corresponding previous period, which is up by INR128 crore, that is approx 10% and the reasons for decrease and increase in the line items, we have just discussed in the foregoing paragraph.

During half year FY ’23, the incentive position is as under: Our PAF based Incentive during first half of the FY ’23 was INR353 crore as against INR313 crore in the corresponding previous half year, so there is an increase of INR40 crore on account of PAF based Incentive. Deviation — on account of Deviation charges, we have earned INR119 crore during this current half year as against INR85 crore in the corresponding previous period, meaning thereby, there is an increase of INR34 crore in Deviation charges. So our total incentive on — out of these two incentives is INR472 crore for current half year as against INR398 crore earned in the corresponding previous half year. So there is an increase of INR74 crore in the current half year.

During Q2 FY ’23, the incentive position is as under: PAF based Incentive, we have earned INR181 crore during this Q2 of FY ’23 as against INR187 crore in the corresponding previous quarter, so there is a marginal decrease of INR6 crore. On account of Deviation charges, we have earned INR47 crore in both the quarters, meaning thereby in Q2 of FY ’23 and Q2 of FY ’22, Deviation charges were INR47 crore. So, this is great.

CapEx of INR2,646 crore has been incurred during half year FY ’23 against the target CapEx of INR8,061 [ph] crore for FY ’23 on a consolidated basis. The anticipated cost of Parbati-II project is INR11,135 crore, out of which we have already spent INR10,025 crore till September ’22. The estimated levelized tariff based on the anticipated cost is INR6.19 per unit. The revised cost of Subansiri project is INR19,992 crore, out of which we have already incurred INR16,395 crore till September ’22. The estimated levelized tariff based on the anticipated cost is INR5 per unit.

Other major highlights of the Company are as under: On realization front, NHPC has received INR3,800 crore from the beneficiaries against sale of energy during half year FY ’23 as compared to INR4,239 crore in the corresponding period of previous year. Trade receivables as on 30th September ’22 stands at INR5,854 crore as against INR4,621 crore as on 31st March ’22. This includes INR2,751 crore as unbilled debtors as on 30th September ’22 as against INR1,961 crore as on 31st March ’22.

The net receivables out of total reported trade receivables as on 30th September are classified as under: Total reported trade receivables are INR5,854 crore as on 30th September, out of that unbilled debtors are INR2,751 crore, so the amount of billed debtors is INR3,103 crore, out of this (Technical Difficulty) amount through bill discounting from our discounts that is around INR1,114 crore. So leaving INR1,989 crore and net receivable, which is — which comprises only INR113 crore more than 45 days, and the rest of amount around to INR3,000 crore is less than 45 days.

Net trade — so this is all from my side. Now the forum is open for question and answer. Thank you.

Questions and Answers:

Operator

Thank you. Ladies and gentlemen, we will now begin with the question-and-answer session. (Operator Instructions) The first question is from the line of Apoorva Bahadur from Investec. Please go ahead.

Apoorva Bahadur — Investec — Analyst

Hi, sir. Thank you for the opportunity. Sir, wanted to check on the completion of dam work at Subansiri in cubic meters, how much has been completed and what is the total target?

Yamuna Kumar Chaubey — Chairman and Managing Director

In Subansiri, the total dam quantity is 20.56 lakhs and out of that 18.32 lakhs cubic meter concrete has been already done. So that constitutes 89%.

Apoorva Bahadur — Investec — Analyst

Okay, sir. Sir, and what is the monthly run rate typically over here over the last couple of months?

Yamuna Kumar Chaubey — Chairman and Managing Director

In a month, normally 60,000 — 12,000 cubic meter concrete is done, but that all depends upon the season, like in monsoon season, concreting — the rate of concreating is low because it gets disturbed with the rain and others. But now, we have entered into the non-monsoon period that is the, basically, working period and it is going to increase.

Apoorva Bahadur — Investec — Analyst

So what would be the typical run rate during non-monsoon periods if 12,000 cubic meter is in the monsoon period?

Rajendra Prasad Goyal — Director, Finance

It can be 40,000. You can take average of 40,000.

Apoorva Bahadur — Investec — Analyst

Sir, 14,000 or 40,000?

Rajendra Prasad Goyal — Director, Finance

40,000.

Apoorva Bahadur — Investec — Analyst

40,000. From 12,000…

Rajendra Prasad Goyal — Director, Finance

In one monsoon, we expect to place concrete at the rate of 40,000 cubic meter per month.

Yamuna Kumar Chaubey — Chairman and Managing Director

Actually, it also depends that once we come up, it becomes in post-concrete and a lot of enforcement is required to put there. So if it is enforced concrete, then it goes slightly, I mean it becomes less, and if it is a mass concreting, then total concrete rate increases. So it all depends at which location we are doing concreting in that particular month.

Apoorva Bahadur — Investec — Analyst

Okay, okay. Got it, sir. Sir, also on Parbati, on the tunneling work, if you can share some of the numbers, how much has been done in cubic meters or — and percentage [ph] counts and what’s the monthly run rate expected over there?

Yamuna Kumar Chaubey — Chairman and Managing Director

At present, we can say that balance 560, around 550 meter is there, otherwise, HRT is completed. So, we have completed 30.95 kilometer — sorry, yes, out of 31.54 per kilometer. So 560 meter is left out and then it’ll be — entire HRT will be completed. So this is on the each [ph] basin part.

Apoorva Bahadur — Investec — Analyst

Okay. And sir, how much do we expect to do, say, every month in the post-monsoon season now?

Yamuna Kumar Chaubey — Chairman and Managing Director

No. At present, we are gaining 2 meter or 3 meter in a day. So you can say 60, 70 meter per month.

Apoorva Bahadur — Investec — Analyst

Okay. So we’ll take, say, less than 10 months — nine, 10 months probably to complete this.

Yamuna Kumar Chaubey — Chairman and Managing Director

Yeah. We can say. But as (inaudible) current situation generally [ph] improves because at present, we are negotiating slightly poor condition in the drilling blasting phase of it. So our progress was slow but it may improve further as we negotiate the entire that [ph] band.

Apoorva Bahadur — Investec — Analyst

Fair enough, sir. Sir, also on — just wanted to check on this late payment surcharge fee. How much of our receivables have been converted over here?

Rajendra Prasad Goyal — Director, Finance

Actually, yeah. Over it is — in respect to J&K and Tamilnadu to the tune of INR1,400 crore has been agreed to be paid in installments. So, from J&K, we are getting INR50 crore per month in 28 installments, and in case of Tamilnadu, there is small amount of INR20 crore that is we are getting in 40 [ph] installments. So the total amount will be liquidated.

Apoorva Bahadur — Investec — Analyst

(Technical Difficulty) this is both — for both of the extra [ph] 48-month EMI or is it for a shorter time?

Rajendra Prasad Goyal — Director, Finance

No, in case of J&K, it is 28 installments, and in case of Tamil Nadu, it is around 20 installments. But in case of Tamil Nadu, amount is very [ph] less.

Apoorva Bahadur — Investec — Analyst

Got it, sir. Thank you so much. I’ll get back in the queue.

Operator

Thank you. The next question is from the line of Aniket Mittal from SBI Mutual Fund. Please go ahead.

Aniket Mittal — SBI Mutual Fund — Analyst

Yes. A couple of questions. Sir, one was just to understand on the employee level. I think if I look at over the past few years, what we’ve done is we’ve reduced our employee base fairly significantly and that’s helped get to check on our profitability as well. So if you could just help me on that trajectory going forward, is there still room for us to — as we build new projects, is there still room for us to divert some of the current employee to the new projects or there’ll be new employees that we’ll have to add?

Rajendra Prasad Goyal — Director, Finance

Actually, earlier we were having over-staffing. So now we have entered in the ideal suggestion. But of course, due to coming of new projects, we require further manpower. So we are in the process of engaging employees through open advertisements. But there is no alarming situation on account of number of employees, we are very much comfortable as of now.

Aniket Mittal — SBI Mutual Fund — Analyst

Just to understand on the employee front, when I, let’s say, go to have a look at your actual O&M expense and compare that with the moment [ph], is there any under-recovery now over there or maybe are we doing better than the O&M notes?

Rajendra Prasad Goyal — Director, Finance

Actually, under-recovery issue was in the past. Nowadays, we are well within the O&M charges, which we are receiving from CRC. So there is no issue of under-recovery at present, rather we are seeing something.

Aniket Mittal — SBI Mutual Fund — Analyst

Okay. The second question was on the Subansiri fund. (inaudible) stick to our timelines of June ’23, just wanted to understand the recent landslide that happened over there, if you could just elaborate a bit more on the impact that happened on that project and are there any restoration works that would be required and how are we going about that?.

Yamuna Kumar Chaubey — Chairman and Managing Director

Yeah. We have started the restoration work last — in October month and September and October month, it has been extended rainfall and some slide has taken place in the Diversion Tunnel area. So, now it is — there is no flood, even ALI [ph] is very strong. So we have planned our work and we’ll be going ahead with our planning. So it will — I mean for two months, work has hampered, progress at hampered and it has got impacted, so earlier we were determined to complete it by March ’23. So one or two months, it will go ahead and by June ’23, we are sure of completing it.

Aniket Mittal — SBI Mutual Fund — Analyst

So, it’s largely the Diversion Tunnel that’s been impacted, there are no other structures that have been impacted here?

Yamuna Kumar Chaubey — Chairman and Managing Director

Diversion Tunnel and basically, the access [ph] going to the Diversion Tunnel. So that access road has to be rebuilt so that we can reach to the Diversion Tunnel and carry out our work. So it is — basically, that will be taking some time. And because of that region, we have put additional two months and likely to be commissioned — two units likely to be commissioned by June ’23.

Aniket Mittal — SBI Mutual Fund — Analyst

Fair. And just one last question, I think recently, there has been an MOU that you’ve signed with Bharath Electronics on solar manufacturing. You could just throw some light on the rationale for that, and what is it that we are looking to do on that front.

Rajendra Prasad Goyal — Director, Finance

Actually, it is just in the initial stage of talks, and no concrete proposal has come from DA, and as per our understanding, we have signed MOU for manufacturing of panels for the solar projects but nothing concrete has come as of now.

Aniket Mittal — SBI Mutual Fund — Analyst

Okay. Those were my questions.

Rajendra Prasad Goyal — Director, Finance

Thank you.

Operator

Thank you. The next question is from the line of Mohit Kumar from DAM Capital. Please go ahead.

Mohit Kumar — DAM Capital — Analyst

Good evening, sir, and thanks for the opportunity. Sir, my first question is on which are the projects which you are looking to tender out in this fiscal? Do think Sawalkot will go through the tendering process in this fiscal?

Yamuna Kumar Chaubey — Chairman and Managing Director

Yes, Sawalkot NIT [ph] has already floated.

Mohit Kumar — DAM Capital — Analyst

Sawalkot is 1,856 megawatts, right? That’s a large project.

Yamuna Kumar Chaubey — Chairman and Managing Director

Yes, yes.

Mohit Kumar — DAM Capital — Analyst

And this will get awarded in this fiscal?

Yamuna Kumar Chaubey — Chairman and Managing Director

It will take some time because some clearances is yet to be done there. So, though we have floated the NIT and we are in process of receiving the good, but maybe that we’ll be extending some time and because we have got time actually, some clearances are still pending and that has to be done first.

Rajendra Prasad Goyal — Director, Finance

Actually, it is expected to be decided in FY ’23, ’24 only. In current year, it will not be decided because there are — certain clearances are yet to be received.

Mohit Kumar — DAM Capital — Analyst

So Dugar may happen this — in this H2, right?

Rajendra Prasad Goyal — Director, Finance

Dugar may happen in end of this FY. By March ’23, we may expect.

Mohit Kumar — DAM Capital — Analyst

And [ph] secondly, sir, on the profitability side in this — what explains the increase in profit from INR1,305 crore to INR1,471 crore in the standalone and also in JV, there also in the consolidated income there is slightly higher income, if I subtract consolidated minus standalone that number — the difference is INR2.5 [ph] billion, is it primarily related to the NHDC number? Can you just share the NHDC revenue per EBITDA and profit if possible for Q2 and H1?

Rajendra Prasad Goyal — Director, Finance

In standalone results, the main reason of increase is recognized now, MAT Credit in the current quarter that is amounting to INR123 crore. This is the main reason. In addition to that, there are impacts of fair value loss of financial assets amount — that is amount to be INR38 crore.

Mohit Kumar — DAM Capital — Analyst

Yeah. That’s on the negative side.

Rajendra Prasad Goyal — Director, Finance

Negative side. Yeah. A positive side is MAT Credit recognition and your — regarding the next question, for half yearly increase in profit, the main reason is INR127 crore is on account of again, MAT Credit and increase in generation. In current half year…

Mohit Kumar — DAM Capital — Analyst

(Multiple Speakers) on the consolidated number, sir.

Rajendra Prasad Goyal — Director, Finance

I am talking about standalone. In current half year, there is increase of 900 million units in generation, so that has also increased the profit. So regarding consolidated — regarding NHDC, in current half year, total generation is 3,188 million units as against 1,342 million units in corresponding previous half year. So there is an increase of 87% increase in the generation in current half year in NHDC. This has contributed a lot in consolidated profit of the Group.

Mohit Kumar — DAM Capital — Analyst

Is it possible to share the NHDC quarterly number on the revenue, EBITDA and PAT?

Rajendra Prasad Goyal — Director, Finance

Okay. First of all, I’m sharing the generation figures of NHDC. In Q2 of FY ’23, the generation was 2,715 million units as against 426 [ph] million units in corresponding previous quarter. So there is a tremendous increase in the generation of NHDC and it is the highest-ever generation of NHDC so far, it pertains to half year and quarter. And NHDC profit is INR416 crore as against INR258 crore for the half year and INR305 crore as against INR105 crore for the quarter — second quarter.

Mohit Kumar — DAM Capital — Analyst

Can you repeat the quarter number, sir, again?

Rajendra Prasad Goyal — Director, Finance

INR305 crore is the PAT. Current quarter PAT is INR305 crore against INR105 crore in the corresponding previous quarter.

Mohit Kumar — DAM Capital — Analyst

Understood, sir. Understood. Last thing, sir, on the receivable accounting. If you can just tell us what are the outstanding amount from J&K and Telangana. What are the outstanding amount, principal plus late payment surcharge and how the accounting has happened or what has led to the fair value if you can just throw some more light on that?

Rajendra Prasad Goyal — Director, Finance

As I mentioned in my speech that, on account of billed debtors the amount is INR3,103 crore for the Company as a whole, out of that in the (inaudible) J&K, outstanding is INR1,477 crore, out of that around INR1,250 crore are being received in installments, as already mentioned, which is being received from PFC and REC directly at the rate of INR50 crore per month.

So you can take — you can consider INR1,250 crore as securitized, so PFC and REC and balance is being received directly from J&K in shape of advertisement [ph] of water cess as — and in cash. And in respect of UP, outstanding is INR813 crore, it is also only current dues, which is less than 45 days, and in respect of West Bengal, it is INR457 crore, this is also current due and old due is zero. In respect of Punjab, amount is INR108 crore, this is also current dues and old dues are zero. And small amount in respect of Rajasthan, wind power, that is INR83 crore. Out of INR83 crore, INR79 crore is overdue, which we are pursuing with the state and others are INR165 crore as total dues, out of that, only INR14 crore is the overdue amount.

And as on date — if you want, as on date position of debtors that also I can explain. Total amount is INR1,286 crore, out of that, more than 45 days is only INR146 crore, and this is on account of debtors.

Mohit Kumar — DAM Capital — Analyst

Understood, sir. Thank you and best of luck, sir. Thank you.

Operator

Thank you. The next question from the line of Anuj Upadhyay from HDFC Securities. Please go ahead.

Anuj Upadhyay — HDFC Securities — Analyst

Yeah. Hi. Thanks for the opportunity. So starting firstly on Parbati, sir. So it would take at least eight to nine months to complete the tunneling works. So, by when are we expecting the COD to get achieved, sir, in case of Parbati?

Yamuna Kumar Chaubey — Chairman and Managing Director

It is scheduled for December ’23.

Anuj Upadhyay — HDFC Securities — Analyst

Okay. So I mean post tunneling work, we are saying it won’t take beyond two or three months to commission the project. Is my understanding correct, sir?

Yamuna Kumar Chaubey — Chairman and Managing Director

I mean the excavation will be completed, only 560 meters is left and then we have to go for the lining part, that is around 3 kilometer is the balance as on date. Rest, all other components are ready, so only these two components or these two activities have to be completed and then project will be commissioned.

Anuj Upadhyay — HDFC Securities — Analyst

Okay.

Rajendra Prasad Goyal — Director, Finance

Actually, as per our plan, within four, five — five to six months, we will complete the balance excavation of 560 meter left out HRT and the concreting, lining work will be done simultaneously and in many areas at a time. So as per our plan, it will be completed by December ’23 and we are hopeful to complete accordingly.

Anuj Upadhyay — HDFC Securities — Analyst

Okay. And this marginal delay, sir, across both…

Operator

Sorry to interrupt Mr. Upadhyay. May we request that you return to the question queue? There are participants waiting for their turn.

Anuj Upadhyay — HDFC Securities — Analyst

Okay. I asked just one question. Okay, fine.

Operator

Sir, you may please proceed.

Anuj Upadhyay — HDFC Securities — Analyst

Okay, fine. Secondly, sir, with this marginal increase in both — delay, I would say in both Subansiri and Parbati, are our CapEx costs still firm or it’s just [ph] marginal escalation across both these projects?

Rajendra Prasad Goyal — Director, Finance

It will impact only IDC and establishment part, and there is no likelihood in — increase in hard [ph] cost. Basically, IDC is the period cost, so that may increase.

Anuj Upadhyay — HDFC Securities — Analyst

Okay. And lastly, sir, can you share the quarterly incentive income and the Deviation charges further?

Rajendra Prasad Goyal — Director, Finance

Our PAF Incentive for current quarter is INR181 crore and Deviation charges are INR47 crore. So total incentive for the current quarter is INR228 crores as against INR230 crore in the previous — corresponding previous quarter.

Anuj Upadhyay — HDFC Securities — Analyst

INR230 crore, right sir?

Rajendra Prasad Goyal — Director, Finance

Yes.

Anuj Upadhyay — HDFC Securities — Analyst

Okay. Thanks. Yeah, that’s it from my end.

Operator

Thank you, sir. (Operator Instructions) As there are no further questions, I now hand the conference over to Mr. Rupesh Sankhe for his closing comments.

Rupesh Sankhe — Elara securities private limited — Analyst

Yeah. So we thank NHPC management for giving us an opportunity to host this call. We also thank all the investors and analysts for joining this call. Thank you.

Yamuna Kumar Chaubey — Chairman and Managing Director

Thank you. Thank you very much.

Operator

Thank you. Ladies and gentlemen, on behalf of Elara Securities Private Limited, that concludes this conference call. We thank you for joining us, and you may now disconnect your lines. Thank you.