NTPC Limited (NSE: NTPC) Q2 2025 Earnings Call dated Oct. 25, 2024
Corporate Participants:
Jaikumar Srinivasan — Director, Finance
K. Shanmugha Sundaram — Director, Projects
Analysts:
Sudhanshu Bansal — Analyst
Mohit Kumar — Analyst
Gaurav Birmiwal — Analyst
Subhadip Mitra — Analyst
Puneet Gulati — Analyt
Arihant Baid — Analyst
Hirani — Analyst
Satyadeep Jain — Analyst
Vishal Periwal — Analyst
Mohit Pandey — Analyst
Rajesh Majumdar — Analyst
Nikhil Nigania — Analyst
Harshit Setia — Analyst
Amit Bhinde — Analyst
Rishika Singh — Analyst
Presentation:
Operator
Ladies and gentlemen, good day, and welcome to NTPC Limited Q2 FY ’25 Earnings Conference Call, hosted by JM Financial. [Operator Instructions]
I now hand the conference over to Mr. Sudhanshu Bansal from JM Financial. Thank you, and over to you, sir.
Sudhanshu Bansal — Analyst
Thank you, Sidhanth. Hello, everyone. On behalf of JM Financial, I welcome you all to the conference call of NTPC to discuss the 2Q FY ’25 results. We have with us the leadership team of NTPC, comprising of Shri Jaikumar Srinivasan, Director, Finance; Shri Shivam Srivastava, Director, Fuel; Shri Shanmugha Sundaram, Director, Projects; Shri Ravindra Kumar, Director, Operations; Shri Anil Kumar Jadli, Director, HR. Thank you so much, sir, for your kind presence and giving JM Financial the opportunity to host the call.
Friends, before we start the call, I would just like to share one good thing like amongst the various awards won by the NTPC Limited, it gives me intense pleasure to inform you that Shri Jaikumar Srinivasan Ji, Director of Finance, NTPC, has been bestowed with the prestigious leader — leading CFO of the Year Award by CII in a ceremony held on 19th September at Bangalore. The award is an acknowledgment of his contribution towards corporate transparency, governance and financial leadership. Many congratulations to you, sir.
And with this, I will request Shri Srinivasan Ji for the opening remarks and taking the call forward. Over to you, sir.
Jaikumar Srinivasan — Director, Finance
Thank you so much. Am I audible?
Operator
Yes, sir, you are. Please continue.
Jaikumar Srinivasan — Director, Finance
Am I audible?
Operator
Yes, sir, yes.
Jaikumar Srinivasan — Director, Finance
Okay. A very good afternoon to all the participants. I, Jaikumar Srinivasan, Director, Finance, welcome all of you to the Q2 FY ’25 conference call of NTPC Limited. I have with me Shri Shivam Srivastava, Director, Fuel; Shri K. Shanmugha Sundaram, Director, Project; Shri Ravindra Kumar, Director, Operation; and Shri Anil Kumar Jadli, Director, of Human Resource. I also have with me other key members of the NTPC team.
Yesterday evening, the Company has announced the unaudited financial results for Q2 FY ’25, along with half yearly results for FY ’25. The key performance highlights for the quarter and half year ended 30th September 2024 have already been disclosed on both the stock exchanges. NTPC has completed yet another outstanding quarter, showcasing a robust operational and financial performance. We have made substantial progress on various key strategic initiatives, particularly the renewable energy.
I’ll share with you a few operational highlights for Q2 and H1 FY ’25. During H1 FY ’25, NTPC Group has added 485 megawatt commercial RE capacity to its portfolio. As on 30th September 2024, the commercial capacity of NTPC stands at 59,168 megawatts on a standalone basis and 76,443 megawatts for the Group as a whole. NTPC Group generated 220 billion units in H1 FY ’24 [Phonetic] as compared to 212 billion units in H1 ’24, registering a growth of 3.77%. NTPC’s standalone gross generation in H1 FY ’25 was 186 billion units, as compared to 179 billion units in the corresponding previous year with a rise of 3.91%.
During H1 FY ’25, PLF of coal stations of NTPC was 76.31%, as against the national average of 70.63%. Lara station of NTPC with a PLF of 91.63% is the fifth ranked station. And Singrauli station with a PLF of 88.83% is the 13th ranked station in all-India PLF ranking during April-September 2024.
During H1 FY ’25, materialization of coal against the annual contracted quantity was 97%, as against 95.8% in the corresponding previous period. Coal supply during H1 FY ’25 was 119.41 million metric tons, including 2.02 million metric ton of imported coal. The coal supply during the corresponding previous year was 113.47 MMT, including 3.73 MMT of imported coal.
NTPC has registered highest-ever coal production of 19.23 million metric ton in H1 FY ’25 with a growth of over 19.74%, as against 16.06 MMT in H1 FY ’24. Cumulative expenditure of INR11,585 crores have been incurred on the development of coal mines till 30th September 2024.
Now, I turn to some of the financial figures. For NTPC on a standalone basis, total income for Q2 FY ’25 is INR41,245 crores, as against INR41,518 crores in the corresponding quarter of previous year. The revenue — lesser revenue is on account of lesser average price of the coal. The average price of coal was INR3,791 per tonne in the last year. Now, it is INR3,584, thereby a reduction of INR207 per tonne with a reduction of 5.46%. Compared to this, the revenue reduction is only 6.66%.
NTPC’s profit after tax for Q2 FY ’25 is INR4,649 crores, as against INR3,885 crores in the corresponding quarter of previous year, registering an increase of 19.66%. On a half yearly basis, PAT is INR9,160 crores, as against INR7,951 crores in H1 FY ’24, registering an increase of 15.2%.
Total income of the Group for H1 FY ’25 is INR94,179 crores, as against INR88,775 crores in the corresponding previous period, which signals an increase of 6.09% over previous year. PAT of the Group for H1 FY ’25 is INR10,886 crores, as against the corresponding previous period PAT of INR9,634 crores, registering an increase of by 13%.
During H1 FY ’25, our subsidiaries earned profit of INR1,363 crores, as compared to INR1,117 crores in the corresponding period of previous year, registering an increase of 21.91%. NTPC’s share of profit in JV has also increased from INR1,082 crores to — in H1 FY ’24 to INR1,124 crores in H1 FY ’25, which is a 3.88% increase over previous year.
During H1 FY ’25, we have accounted for dividend income of INR762 crores from our subsidiaries and joint ventures, as against INR541 crores during H1 of FY ’24. Standalone regulatory equity for power and mining business as on 30th September 2024 was INR89,430 crores, which was INR83,059 crores previous year, registering a growth of 7.67%. On a consolidated basis, the consolidated regulated equity as on 30th September 2024 was INR105,049 [Phonetic] crores, which is 5.5% over last year’s figure of INR99,611 crores.
The Board has declared the first interim dividend of INR2.50 per share for the financial year ’24-’25.
Regarding fund mobilization, NTPC has signed a term loan agreement of INR5,000 crores with HDFC Bank on 31st May 2024. The overall average interest rate on borrowing during H1 FY ’25 was 6.63%, as compared to 6.67% in H1 FY ’24.
In H1 FY ’25, we have incurred a group capex of INR17,474 crores, as compared to INR13,204 crores in the corresponding previous period, while on a stand-alone basis, NTPC has incurred a capex of INR14,040 crores, as compared to INR7,959 crores in the corresponding previous period. The capital outlay of NTPC on standalone basis has been estimated at INR22,700 crores for the financial year ’25.
Further, I would like to list a few other highlights. As India aspires to achieve its net zero target by 2070, NTPC is also poised to contribute significantly to the energy transition through an optimum combination of renewable energy, energy storage technologies and clean-based load generation technologies like nuclear power.
NTPC plans to execute its nuclear business through the following parallel streams. Anushakti Vidhyut Nigam Limited, ASHVINI, a joint venture company of NTPC and Nuclear Power Company Limited — Corporation Limited, has been established for commissioning pressurized heavy water reactor nuclear projects. The Government of India has recently accorded its approval for the transfer of Mahi Banswara Nuclear Power Project 4 X 700 megawatt to ASHVINI, a wholly-owned subsidiary of NTPC, which will implement small modular reactors (SMRs) and fast breeder reactors (FBRs) and pressurized water reactors.
NTPC Group has a strong commitment towards renewable energy. We have already commissioned 4,013 megawatt of RE projects. As you are already aware that we have filed the draft red herring prospectus for the IPO of NTPC Green Energy Limited on 18th September 2024, and the process is proceeding as planned. During the Rising Rajasthan Investor Meet at New Delhi, NTPC Green Energy Limited, a wholly-owned subsidy of NTPC, signed a memorandum of understanding with Government of Rajasthan. Subsequently, on 17th September 2024, a joint venture agreement with Rajya Vidyut Utpadan Nigam Limited, RVUNL, was signed for development of 25 gigawatt of renewable energy project and 1 million metric ton per annum of green hydrogen derivatives in State of Rajasthan. NTPC Green Energy Limited has entered into a joint venture agreement with Mahatma Phule Renewable Energy & Infrastructure Technology Limited, acronymed MAHAPREIT, on 25th September 2024. The JV company will undertake development of 10 gigawatt of renewable energy parks and projects in Maharashtra or any other state of India.
As part of our overall energy security plans, investment approval has been accorded for the Sipat Super Thermal Power Project Stage-III 1 X 800 megawatt and Darlipali Super Thermal Power Project Stage-II 1 X 800 megawatt. EPC contracts for both the projects have been placed. We are actively considering awarding thermal capacity to the tune of 13.6 gigawatt by the financial year ’26-’27. This is in addition to 11.16 gigawatt thermal capacity already under construction.
Furthermore, to have greater fuel security, we are enhancing our coal mining capacity as well. It is planned to enhance estimated NTPC Group coal production from 40 million metric ton in FY ’25 to about 67 million metric ton up to financial year ’29.
Going higher on generation, lowering greenhouse gases intensity remains our motto for environmental management and drives our efforts to comply with new environmental norms. We have taken significant step to control SOx and NOx emission. Over the next three years, we plan to commission FGD systems for our entire operational and under construction capacity, ensuring substantial reduction in SOx emission. We have commissioned 14,600 megawatt, and work in FGD package for the cumulative capacity of 49 gigawatt is under progress.
In the areas of ash management, nine of our stations achieved 100% ash utilization during H1 FY ’25, and approximately 245 lakh metric ton of ash has been supplied to various road projects during H1 FY ’25, as against 215 lakh metric ton in H1 FY ’24.
Our wholly-owned subsidiary, NVVN, signed a PPA on 3rd October 2024 with Nepal Electricity Authority for the sale of 230 megawatt of power. A trilateral agreement was also signed between NVVN, NEA and BPDB for the supply of 40 megawatt of power from Nepal to Bangladesh.
As part of its ongoing sustainable measures to reduce greenhouse gases, NTPC stations received 2.62 lakh metric ton of biomass in the first half of financial year ’25, a remarkable increase compared to 0.31 lakh metric ton during the same period last year.
NTPC has been conferred with Asia’s Best Employer Brand Award 2024 at the Asia’s Best Employer Brand Awards held on 6th August 2024 at Singapore. Asia’s Best Employer Brand Awards 2024 features the top organization from Asia region having exemplary people practices. NTPC was included in the TIME World’s Best Companies 2024 list announced in September 2024. This award was presented by TIME and Statista, the world-leading statistical portal and industry ranking provider. The listing was done considering employee satisfaction surveys, revenue growth, environmental and social corporate governance data. NTPC won three awards at the prestigious Economic Times Future Skills Awards 2024. NTPC received the Generation Company of the Year Award in thermal category at the Powering India Awards held on 4th September 2024 in New Delhi. The Pakri Barwadih coal mining project was honored with third prize in the large opencast coal mining category at the first pan-India level Mine Safety Award, MSA, 2024.
Now, these were some of the key highlights I wanted to share with all the participants before we begin the question-and-answer session. Thank you. Over to you. Over to JM Financial.
Questions and Answers:
Operator
Thank you very much, sir. [Operator Instructions] Our first question is from the line of Mohit Kumar from ICICI Securities. Please go ahead.
Mohit Kumar
Yes. Good afternoon, sir. Congratulations on a very good quarter and on the prestigious awards. My question is, as the — first question is on the — one thing I observed is that you’re not participating in the RE bids, a very, very selective bidder [Phonetic]. How do you think about participating RE…
Jaikumar Srinivasan
Your voice is not clear, please.
Mohit Kumar
Sir, [Indecipherable] a bit louder. So one thing I observed is that we’re not participating in the RE bids. Our participation is very, very limited. So what is hindering us and how do you think about the strategy of participating in the in the upcoming bids?
Jaikumar Srinivasan
No, our participation is selective in the sense that we are participating in pure-play solar and wind also. But when it comes to some structured bids like RTC and your FDRE, there, we are evaluating the mix and what is the stipulation, what is the guaranteed parameters. And based on the risk profile in each of this and the returns expectation, we are selective in that approach. However, it is not that we are staying away from this thing. We are being only selective because we have to look at the returns profile also, the risk also. So we go about it very judiciously on that. Not for — not solely for the purpose of adding capacity, but we are trying to calibrate the different aspects of the project and then taking a call on that.
Mohit Kumar
So, is it fair to say that we are not facing any constraints on transmission connectivity or land acquisition? Is it right to say, sir, on the RE capacity?
Jaikumar Srinivasan
Sorry, sir, please repeat.
Mohit Kumar
Is it fair to say that you’re not facing any constraints on transmission connectivity or land acquisition?
Jaikumar Srinivasan
No, we are not, because we are following a strategy — a dual strategy of creating land banks for separate tenders. We are also, as I was mentioning to you that we are tying up in big way with the state governments, Rajasthan and Maharashtra, which I mentioned, where essentially, the partnering is because the state governments have a better control over land. So this would ensure that the JV partner brings the land on the table. We bring our operational expertise and finance. So by this methodology, we are ensuring the land. As far as transmission connectivity is also concerned, we are not facing any major challenges here. And we have a early mover advantage also. And the other issue is that because of taking up large-size projects of 1.5 megawatt to 2 megawatt — gigawatt, 1.2 megawatt to 2 gigawatt, then there is a mandate that naturally, the transmission evacuation has to be made — arranged over there. So we are scaling up the size at an individual location in order to ensure that transmission doesn’t become a constraint.
Mohit Kumar
Understood, sir. My second question is on the under-recovery, sir. Can you give us the under-recovery in H1 versus last year? And are you seeing an improvement in FY ’25 compared to earlier years because of new CERC regulations? How is your experience?
Jaikumar Srinivasan
See, as far as — you’re talking about disincentive or under-recovery?
Mohit Kumar
Under-recovery.
Jaikumar Srinivasan
If you are talking about the disincentives, compared to the last year, was — Q2 was — INR381 crores [Phonetic] was the disincentive or under-recovery. Compared to this, it is INR495 crores [Phonetic] in the current quarter two. But however, let me share with you that this has a bearing on what is the level of planned outages we take every year and the composition of what is the capacity charges of individual power plant. But going ahead, so the planned — overall planned outages last year was 5.19%, whereas it is on a higher percent, it is 6.12%, almost 1% higher planned outages were there. So, accordingly, this — if you translate it to MU terms, last year, 11,711 MUs were there. It is now 14,483 MUs. So, on an average megawatt basis, 2,000 — instead of — as against 2,730, it is 3,295 average megawatt. And number of units — four more number of units were taken under the planned outages. However, going ahead, we are confident that in the busy season, this would be eased out and we will be able to substantially mitigate this by the end of the year.
Mohit Kumar
Understood, sir. Thank you and all the best, sir. Thank you.
Operator
Thank you. Our next question is from the line of Gaurav from Axis Mutual Fund. Please go ahead.
Gaurav Birmiwal
Hello, sir. Thank you for this opportunity. I just wanted to ask you about the recent media article that highlighted that government might consider stopping issuance of new FGD tenders. Any thoughts around that, sir? How will it impact any –will it impact any existing orders that you’ve given out? And how do you see this going forward?
Jaikumar Srinivasan
I’ll ask our Director, Projects, Mr. Sundaram to reply to this. Over to Mr. Sundaram.
K. Shanmugha Sundaram
What you heard is based on [Technical Issues] there is no order. This order has to come from MOP and MOU [Phonetic] with the pending case in Supreme Court. And even if you see that report, what has been mentioned is, wherever FGDs are commissioned, say, for NTPC, those will be used as a base data for the future decisions. So, in any case, we will not be affected.
Jaikumar Srinivasan
See, if I may just add to that, this FGD is coming out of a statutory stipulation, depending on the environmental imperatives. These are policy decision at the highest level. And however, at a company level, we — this becomes a change in law. Even if it is introduced, altered, withdrawn, as far as the Company is concerned, it operates on the cost-plus principles, and we are completely hedged against this kind of a decision. So this is a completely national-level policy decision, and the Company per se remains unaffected because we are entirely into a cost-plus business.
Gaurav Birmiwal
Fair enough, sir. Thank you.
Operator
Thank you. Our next question is from the line of Subhadip Mitra from Nuvama. Please go ahead.
Subhadip Mitra
Good afternoon, sir, and thank you for the opportunity. My first question is with regard to the deferred revenue. We’ve seen a pretty chunky number that has come in this quarter. If you can throw some light on this particular item and if this is EBITDA neutral or PBT neutral?
Jaikumar Srinivasan
You are talking about regulatory deferral account?
Subhadip Mitra
Yes, sir.
Jaikumar Srinivasan
Okay. See, it is like this that a chunk of this net movement in the regulatory deferral account balance is on account of the unfavorable ERV expenses close to INR1,997 crores. So, what happens is, the cost is booked on the relevant accounted of either interest rate or the finance cost, other expenses. And we are capturing the pass-through. Because it’s a cost-plus mechanism, the pass-through happens through — below the PBT. So, that is the reason this is captured under the net movement in regulatory deferral account balances. So it’s then evens out. For the Company, it is profit neutral in that sense because as you know that in the regulatory principle, the cost of hedging is a pass-through. Interest rate is also a passed-through. Savings in interest rate is also a pass-through. So accordingly, only thing from the statement reporting point of view, while the cost gets captured in the relevant account heads, the pass-through is captured in the regulatory deferral account. I hope that makes it clear.
Subhadip Mitra
Understood, sir. No, this makes it really very clear. Thanks for that detailed explanation. Sir, secondly, if you can also help us with the regulated equity? I think you mentioned consolidated regulated equity at INR105,000 crores. I’m not sure if I caught that right number. So the consol and stand-alone regulatory equity, if you can help us with both?
Jaikumar Srinivasan
Yes. See, as on 30th September 2024, the stand-alone regulated equity is INR89,430 crores, okay? Now this was INR83,059 crores last year, okay? Now, as far as the consol is concerned, it is INR105,049 crores, which was at INR99,611 crores previous year.
Subhadip Mitra
Got it. And sir, lastly, the adjusted PAT number for this quarter for stand-alone and consol?
Jaikumar Srinivasan
Yes. As far as — I’ll just make a comparison that as far as — on a stand-alone basis, for Q2, while the reported PAT is INR4,649 crores for Q2, the adjusted PAT is INR4,202 crores. On a consolidated basis, as against INR5,380 crores of reported PAT, adjusted PAT is INR4,867 crores.
Subhadip Mitra
Got it. Thank you. One last question, if I can squeeze in. You mentioned that about 13.6 gigawatts of fresh ordering is active. If I understand correctly, is most of this thermal? And if you can just spell out some details on that?
Jaikumar Srinivasan
Can you please repeat for better clarity?
Subhadip Mitra
Sir, what I was asking is, on the future ordering of projects, I believe you mentioned 13.6 gigawatt of fresh ordering to be done in the current year. How much of this is expected to be thermal and some details on that?
K. Shanmugha Sundaram
All are thermal.
Jaikumar Srinivasan
All are thermal. I was mentioning about thermal only.
Subhadip Mitra
Okay. Understood. And these are all in the tendering phase to be ordered out by March?
Jaikumar Srinivasan
That’s right.
K. Shanmugha Sundaram
8.8 gigawatt is already bidded [Phonetic] out, and balance 4.8 in gigawatt in next financial year.
Subhadip Mitra
So the 8.8 gigawatt that is bidded out have not been awarded yet, right? They are in the bidding stage?
K. Shanmugha Sundaram
That is expected to be awarded in the third quarter. By December, it will be awarded, 8.8 gigawatts.
Subhadip Mitra
Okay, 8.8 gigawatts by December. Got it. Thank you so much. I’ve extinguished my questions. Thanks for the time.
Operator
Thank you. Our next question is from the line of Puneet Gulati from HSBC. Please go ahead.
Puneet Gulati
Yes, thank you so much. Can you also lay down what is the expected commissioning size on the thermal side for this year and next year, and how is the progress on those?
K. Shanmugha Sundaram
For this year, it will be 2.7 gigawatt thermal. For the next financial, it will be — for this year, it will be 2.7 gigawatts, which consist of Barh, North Karanpura, one unit of Patratu, and one, our Khurja Unit number 1. 2.7 gigawatt thermal in this financial year FY ’24-’25.
Puneet Gulati
Okay. And next one?
K. Shanmugha Sundaram
For the next year, it is 800-megawatt Patratu, and THDC Khurja, 600 megawatt, so 1.46 gigawatt for next financial year.
Puneet Gulati
Okay. That’s helpful. And in terms of your projects which you’re awarding out, Sipat and Darlipali, you said is now done, right? What are the next three in pipeline? And what is the status for ratification of PPAs there?
K. Shanmugha Sundaram
Our next pipeline is around 8.8 gigawatt, consisting of Nabinagar Stage II, 2,400 megawatt; Telangana Stage II, 2,400 megawatt; Gadarwara Stage II, 1,600 megawatt; Meja Stage II, 2,400 megawatt, of which Meja 2 and Nabinagar 2 almost PPA consent is there. For Telangana, around 75%, and for Gadarwara around 68%, consent for PPA is there. Balance PPA, we’re expected to be achieved within two months.
Puneet Gulati
Okay. That’s wonderful. Thank you so much, and all the best.
Operator
Thank you. Our next question is from the line of Arihant from Bowhead. Please go ahead.
Arihant Baid
Yes. Hello, sir. Sir, please, can you guide what would be the capacity addition in renewables in FY ’25, ’26 and ’27?
Jaikumar Srinivasan
See, as for the capacity expansion in renewable is concerned, this will be done majorly through the NGEL, the 100% subsidiary. The current year, the capacity addition expected is 3 gigawatts. Next year, it will be 5 gigawatt, and the year next, it will be 8 gigawatt. So by FY ’27, the operational capacity will be 19.4 gigawatt.
Arihant Baid
Okay, sir. And sir, can you also give an update on Tehri PSP 1,000 megawatt project? What’s the status of that? When will it get commissioned?
K. Shanmugha Sundaram
These three projects are expected to commission in this quarter, by December.
Arihant Baid
Thank you, sir.
Operator
Thank you. Our next question is from the line of Hirani [Phonetic] from Avendus Spark. Please go ahead.
Hirani
Hello, am I audible?
Operator
Yes, sir. Please go ahead.
Hirani
Yes. My question is on the renewable projects on NGEL — in NGEL like where in the [Technical Issues] details of project-wise PPA, whether it has or not yet given. So there are some projects where there is PPA yet to be signed. So can you highlight why these projects don’t have PPAs? If there are any challenges in signing PPA, what is the way forward?
Jaikumar Srinivasan
So, let me give you an overview that right now, the operational capacity is close to 4.3 gigawatts. Now, I will classify it into two further categories. A further 12 gigawatt is contracted and awarded for which there are some PPAs have been signed, all documentations done. A further 11 gigawatt is at different stages. These are definitive projects where there is a commitment. But however, the documentation in terms of award, in terms of PPA are in various stages, and we hope to take this under control this year. So we will have, with this, a clear pipeline of 25 gigawatt of RE project, comprising of solar, wind.
Hirani
Yes. So my question is, among these contracted and awarded projects…
Jaikumar Srinivasan
So, up to FY ’26, whatever is our plan for which entire — all tie-ups are in place, including offtake.
Hirani
Yes. I appreciate that, sir. My question is on the 11.5 gigawatts of contracted and awarded projects, list of projects given in the DRHP, where certain projects do not have PPA, like it says no PPA. So, for example, there is REMCL 2 or SECI solar [Indecipherable].
Jaikumar Srinivasan
No, that — what you are saying is the other category, which I said. There are two categories. 12 is firmly in place. Another level is under the process. This is what I was trying to explain.
Hirani
Okay. So, broader question is, are you seeing any pushback from DISCOMs or states in signing PPAs? Or is it going to be smooth sailing for that?
Jaikumar Srinivasan
No, absolutely, we’re — we have no such challenges.
Hirani
Okay. That’s it from my side. Thank you.
Operator
Thank you. Our next question is from the line of Satyadeep Jain from Ambit Capital. Please go ahead.
Satyadeep Jain
Hi, thank you. A couple of questions. One on thermal. Recently, some of the project awards we’ve seen on thermal, the capex figure has gone beyond INR12 crore per megawatt. Just wanted to understand what’s driving that increase in capex of some of the new projects.
K. Shanmugha Sundaram
Actually, we have had an ACC also. Now we are looking for conservation of water also. That also adds to the cost. And of course, the number of players have come down to a single ACC, air cooled condenser. So it actually comes around INR0.7 crore per megawatt. We have seen this. Otherwise, if you see our Sipat is being one unit, slightly it has gone high. If the number of units are three, definitely, the cost will come down. Of course, ACC is the major contributor. And since the number of bidders has come down to only one, there is a slight increase in cost.
Satyadeep Jain
Okay. Fair enough. On the renewables front, I wanted to ask, this 3 gigawatts, 5 gigawatts, 8 gigawatts, obviously, this includes the MOU projects. So when you look at locking in transmission, would it be fair to say you’ve locked in transmission for the entire 60 [Phonetic] upcoming capacity gigawatt. You’ve already identified — you’ve already put in the G&A request. You’re confident the transmission will come in for this capacity by ’27, let’s say.
Jaikumar Srinivasan
Our capacity plan of 60 gigawatt was total capacity plan up to FY ’32. But right now, as I was explaining that everything is tied up in terms of whatever is our commissioning up to FY ’26. Going beyond that, it has to be a progressive plan. We will be simultaneously entering into the bidding process. We are parallelly procuring it and also seeking land connectivity on a parallel. So, on all the fronts, we have to work.
Satyadeep Jain
Okay. So you’re saying, 3 gigawatts and 5 gigawatts, you already planned. The remaining one for ’27 is still…
Jaikumar Srinivasan
Because there are certain prerequisites when it comes to seeking connectivity. So you have to demonstrate — so you have to have the land presented. So we follow a step — those processes will have to be followed, and it will be a gradual progressive action.
Satyadeep Jain
Okay. So, within the 3 gigawatts and 5 gigawatts, how much from Khavda? The entire Khavda can come within this by ’26?
Jaikumar Srinivasan
Yes, correct. 1.2 gigawatt will be coming from Khavda in this.
Satyadeep Jain
In this 8 gigawatt in the next two years.
Jaikumar Srinivasan
Yes.
Satyadeep Jain
Thank you. Thank you so much.
Operator
Thank you. Our next question is from the line of Vishal Periwal from Antique Stock Broking. Please go ahead.
Vishal Periwal
Yes, sir. Thanks for the opportunity. Two questions. One, briefly, in initial commentary, you mentioned that the NTPC stand-alone interest cost is roughly 6.63%. So, is it fair to say NTPC Green will have a similar number when we see those costs come in time [Phonetic]?
Jaikumar Srinivasan
It would be fair to assume this broadly, given the fact that NTPC Green Energy Limited has been rated as AAA domestic rating, which is equal to the parent. And the loans that they have contracted after their formation only gives a feeling that they are equally able to raise at a competitive rate equal to their parent. And going ahead further, they will also — NGEL will also have an edge that they will have access to a lot of multilateral loans from financial multilaterals who are — with a clear exclusive focus on green energy, renewable energy and ESG. They will be able to access these cheap funds. And in fact, they have already done that to some extent.
Vishal Periwal
Okay. And then, second, I think, though you have clarified this, so for NTPC Green, contracted and awarded PPAs as per DRHP is 11.7 gigawatts, right, sir?
Jaikumar Srinivasan
Yes.
Vishal Periwal
And further, there are certain like line items in that list mentioned like PPA is open. So, is that the same reason you mentioned like the — in terms of tie-up and everything PPA and award is up to FY ’26 that we have, which is basically means it’s not 11.7 gigawatts, it’s actually 3 gigawatt in FY ’25 and then 5 gigawatt in FY ’26, so it’s actually 8 gigawatts vis-a-vis 11.7 gigawatts in terms of the awarded and PPA tied…
Jaikumar Srinivasan
Yes. As I was mentioning, the current operational capacity is 4.3 gigawatts. We’ll be adding 3 gigawatts. These are already awarded. So, this will be fructifying, 3 gigawatt will fructify during the current year, 5 gigawatts will fructify during the next year, and 8 gigawatt, the next year. So, as far as the classification, as I was — I may repeat that 12 gigawatt — around 12 gigawatt — because there is a continuous process. The status, what we find in the DRHP, there have been more improvements on that. So these things keep happening on all the fronts. So, I may share the latest thing that around 12 gigawatt, it is awarded, contracted, and further 11 gigawatt — 11.5 gigawatt is at different stages. Part of this even have been converted into PPA and partly they are in the process. But these are projects which are clearly identified and definitive, and it’s a matter of time that all this will be converted into awarded and contracted category.
Vishal Periwal
Okay. Thanks a lot for the detailed explanation, sir. Thank you.
Operator
Thank you. Our next question is from the line of Mohit Pandey from Macquarie Capital. Please go ahead.
Mohit Pandey
Yes. Good afternoon, sir. Thank you for the opportunity. Sir, firstly, in the initial remarks, you mentioned INR22,700 crores as the capital outlay for the parent entity. What would the corresponding number be for consol for FY ’25?
Jaikumar Srinivasan
On a consolidated basis, group, it will be INR27,982 crores. This is the plan — overall plan. Again, stand-alone [Speech Overlap].
Mohit Pandey
And is it possible to give a breakup of this?
Jaikumar Srinivasan
Sorry?
Mohit Pandey
Is it possible to share a breakup of this as to how much will it be across different elements, a broad breakup?
Jaikumar Srinivasan
Maybe we can share this with you separately.
Mohit Pandey
Okay, sir.
Jaikumar Srinivasan
I don’t have it exactly, the breakup with me. I will share it with you.
Mohit Pandey
And sir, secondly…
Jaikumar Srinivasan
[Indecipherable]
Mohit Pandey
Yes, sir.
Jaikumar Srinivasan
Okay. Please continue.
Mohit Pandey
Yes. Sir, secondly, I think earlier in previous calls, it had been mentioned that the entire thermal capacity incremental awards would be over the next two financial years, but I think today, you mentioned by FY ’27. So which are the particular projects that are now [Indecipherable] FY ’27, sir?
Jaikumar Srinivasan
See, what — right now, the Director of Project had given you the detail of this thing. I may give you summarily that there are — there will be a total of seven projects, which will be — which is planned for tendering up to FY ’27. So this includes Meja 2, so our combined capacity, I am saying, 2,400 megawatts; Nabinagar, 2,400 megawatts; Telangana 2, 2,400 megawatts; Gadarwara 2, 1,600 megawatts. So, that makes it 8,800 megawatts during the current year. Anpara will be in ’25-’26, 1,600 megawatts. Obra will be 1,600 megawatt. That makes it 3,200 megawatt in the next year. And in the financial year ’26-’27, there will be 1,600 megawatts in Patratu 2. So that makes it a total of 13,600 megawatts, 6,400 megawatt of which will be from the NTPC and 7,200 megawatts will be through JV subsidiary.
Mohit Pandey
Okay, sir. Thank you. Thank you so much, and wish you all the best.
Operator
Thank you. Our next question is from the line of Rajesh Majumdar from B&K Securities. Please go ahead.
Rajesh Majumdar
Yes, sir, most of my questions are answered. I just wanted to ask you that will the NTPC Green IPO still happen on time in the light of current market conditions? And what kind of approximate valuation are you looking at in that? A range would do, sir.
Jaikumar Srinivasan
No, we are stated — no. There is no valuation that has been decided right now. So, we are still in the process, and we are hopeful that we will be going ahead as per our plan.
Rajesh Majumdar
So, it will be concluded by 3Q as per original plan?
Jaikumar Srinivasan
Sorry?
Rajesh Majumdar
It will be concluded by 3Q as per original plan, the IPO?
Jaikumar Srinivasan
Q3, hopefully, so. Yes.
Rajesh Majumdar
Yes. Thank you, sir.
Operator
Thank you. Our next question is from the line of Nikhil Nigania from Bernstein. Please go ahead.
Nikhil Nigania
Hi, thank you for taking my question. I have two questions. My first question was, given the way which — at which battery prices have fallen, are we seeing any pushback or delays in signing of PPAs for thermal power plants?
Jaikumar Srinivasan
We don’t anticipate such because given the overall demand-supply scenarios and also the projection that those are available both in terms of your overall requirement of energy and also the picking this thing, which is expected to grow by 75 gigawatt over the next seven to eight years. So all this will necessitate that we’ll have to add capacity. Thermal capacity for the country as a whole has been projected that 80 gigawatts will still be needed. We have our share of 25 gigawatt that has been assigned to us. And we are confident that all this will be tied up. And most of our things are tied up, something we are partly tied up and we are expecting responses from the states.
Nikhil Nigania
Understood. Thank you. My second question was on the nuclear side. So Mahi Banswara, Chutka, any broad sense of timelines that you could guide us on? Historically, we have seen nuclear plants take about 10 years to be set up. So any sense — any guidance on timelines for those assets?
Jaikumar Srinivasan
Director of Projects will be replying for this. Mr. Sundaram?
K. Shanmugha Sundaram
Our Mahi Banswara, the first milestone, first pour of concrete is expected in March 2026. Our first unit would approach to criticality in the financial year ’31-’32. All the four units will be commissioned by FY ’32.
Nikhil Nigania
Understood. And sir, Chutka, any development? Or is that not part of the plan as of now?
K. Shanmugha Sundaram
See, at this instance, Chutka has not been transferred to our JV. So right now, there are some land issues. NPCIL is looking into it. We won’t be able to say anything definitive at this stage. Yes, that was a proposal — distant proposal. But right now, we are taking up Mahi Banswara year in the first place. We’ll let you know as and when if there are more developments.
Nikhil Nigania
Understood. Thank you so much. Those were my questions.
Operator
Thank you. Our next question is from the line of Harshit Setia [Phonetic] from Renesa [Phonetic] Investments. Please go ahead.
Harshit Setia
Hir, sir. The 60 gigawatt target by FY ’32 is for the renewable energy capacity, correct?
Jaikumar Srinivasan
It is for the renewable energy broadly. But when you talk about renewable energy, it consists of your solar, wind projects. It comprises of your storage also. And also, some of these capacities will go for green molecule business also, which we plan to go ahead. So that will require some solar energy and wind energy for feeding it to the — for the generation of the green hydrogen. So, all this will be comprised under the 60 gigawatt.
Harshit Setia
And this will be broadly done in NTPC Green Energy?
Jaikumar Srinivasan
All these will be under NTPC Green Energy only. So NTPC Green broadly will have solar, wind, storage, be it in terms of battery energy storage or PSP, and also the molecular — green molecular business.
Harshit Setia
Okay. And the nuclear energy will be in the current entity, the stand-alone entity?
Jaikumar Srinivasan
No. Nuclear energy will be, of course, with NTPC, but that is being implemented in a joint venture through — with NPC, as I was mentioning. And we also have a 100% subsidiary for our future new endeavors on the nuclear side. To answer your questions squarely, NEGL will not have nuclear energy, although it is non-fossil fuel-based.
Harshit Setia
Okay. Understood, sir. Thank you.
Operator
Thank you. Our next question is from the line of Amit Bhinde from Morgan Stanley. Please go ahead.
Amit Bhinde
Hello? Sir, I just wanted to understand the update on pump storage hydro, and just to clarify, you said in last question, PSP would also be a part of NGEL and not in the NTPC entity, right?
Jaikumar Srinivasan
Please repeat for clarity [Indecipherable] storage.
Amit Bhinde
Yes. So I wanted to get an update on the pump storage that we were exploring, one. And second, as you said in the previous question that PSP would be a part of NGEL and not NTPC, just wanted to reconfirm on that one.
Jaikumar Srinivasan
Yes. PSP will be broadly for achieving renewable energy solution on an RTC basis, or firm or dispatchable. So, many of the PSP will be driven by this thing. But there are stand-alone PSPs, which will also be implemented by our other two subsidiaries, which is THDC and NEEPCO. So it will not be purely restricted to NGEL also, some of the major because we have acquired THDC and NEEPCO. So some of the — there was an earlier query about Dadri. So Dadri was itself a PSP only, pump storage only.
Amit Bhinde
Right. So, any broad breakup because in the last call, you were talking about some 11 gigawatts of pump storage being explored. Any broad breakup in this subsidiary or which entity would be each of — which one of this will be sitting?
K. Shanmugha Sundaram
Already, 1 gigawatt PSP, our subsidiary is doing. And 2.8 gigawatt, from Tamil Nadu and Maharashtra, we have got the order for going ahead. Another 4.2 gigawatt is in the pipeline. So, expected is around 8 gigawatt PSP, we’ll be able to get at NGEL.
Amit Bhinde
Right. This 2.8 gigawatt, Tamil Nadu and Maharashtra, that is — that would be part NGEL, is it?
K. Shanmugha Sundaram
Yes.
Amit Bhinde
Yes. Just wanted [Indecipherable].
Operator
Thank you. Our last question is from the line of Rishika from GS.
Rishika Singh
Thank you for this opportunity. I have two questions. First, what was the decline in PLF for coal and gas this quarter? And second is, the 400 megawatts capacity addition that we’ve seen this quarter when compared to the previous one, what is the breakup here between renewable and thermal?
Jaikumar Srinivasan
Okay. As far as your first question regarding PLF is concerned, PLF has a bearing on what is the demand rather than it’s no longer an efficiency parameter. It has more to do with what is the system demand. And with more renewable coming into the space, increasingly, the renewable energy may find a lesser PLF because it will be playing a role of subservient to the renewable energy during the daytime. So the PLF will be lesser compared to the previous periods. So that is one point.
What was your second question, can you repeat?
Rishika Singh
The second question is on the capacity addition this quarter. Could you tell me the breakup? Is it all renewable or was it thermal or any other source?
Jaikumar Srinivasan
So, capacity addition, which has been achieved, is 485 megawatts. Out of that, the breakup is, 90 megawatts [Phonetic] will be your renewables. The entire thing is renewable, 395 megawatts. The breakup is 90 megawatts will be in NTPC and 395 megawatts will be with the group — our group companies. So, that makes this total 485 megawatts.
Rishika Singh
Understood. Thank you, sir.
Operator
Thank you. Ladies and gentlemen, that was the last question for the day. I now hand the conference over to the management for closing comments.
Jaikumar Srinivasan
Thank you so much, and on behalf of the NTPC team, I thank all the participants for their very pertinent queries and an opportunity for us to explain in detail. Thank you once again.
Operator
[Operator Closing Remarks]