NTPC Limited (NSE: NTPC) Q3 2025 Earnings Call dated Jan. 25, 2025
Corporate Participants:
Jaikumar Srinivasan — Director, Finance
Ravindra Kumar — Director, Operations
Shanmugha Sundaram — Director, Projects
Analysts:
Apoorva Bahadur — Analyst
Mohit Kumar — Analyst
Subhadip Mitra — Analyst
Gaurav Birmiwal — Analyst
Puneet Gulati — Analyst
Ketan Jain — Analyst
Ragini Pande — Analyst
Mohit Pandey — Analyst
Aniket Mittal — Analyst
Nikhil Nigania — Analyst
Vishal Periwal — Analyst
Sumit Kishore — Analyst
Presentation:
Operator
Ladies and gentlemen, good day, and welcome to NTPC Limited Q3 FY ’25 Earnings Conference Call, hosted by IIFL Capital Limited. [Operator Instructions]
I now hand the conference over to Mr. Apoorva Bahadur from IIFL Capital Limited. Thank you, and over to you.
Apoorva Bahadur — Analyst
Thank you, Yashashree. Good evening, everyone. Thank you for your patience.
On the call from NTPC, we have Shri Jaikumar Srinivasan, Director, Finance; Shri Shivam Srivastava, Director, Fuel; Shri K. Shanmugha Sundaram, Director, Projects; Shri Ravindra Kumar, Director, Operations; and Shri Anil Kumar Jadli, Director, Human Resources. Over to the management team.
Jaikumar Srinivasan — Director, Finance
Thank you. A very good evening to all the participants.
I, Jaikumar Srinivasan, Director of Finance of NTPC and NGEL. Welcome all of you to the Q3 FY ’25 conference call of NTPC Limited. I have with me Shri Shivam Srivastava, Director of Fuel; Shri K. Shanmugha Sundaram, Director of Projects of NTPC and NGEL; Shri Ravindra Kumar, Director of Operations, NTPC; and Shri Anil Kumar Jadli, Director of Human Resources, NTPC. I also have with me other key members of the NTPC Group.
Today, the Company has announced the unaudited financial results for the quarter and nine months ended 31 December 2024. The key performance highlights for the aforementioned periods have already been disclosed on both the stock exchanges. NTPC Group has completed yet another outstanding quarter, showcasing robust operational and financial performance.
The successful listing of the NTPC Green Energy Limited, NGEL, during the quarter marks a significant milestone in NTPC’s journey towards sustainable energy leadership. With a successful listing on 27 November 2024, NGEL has positioned itself as a key player in the Indian renewable energy sector. This strategic move highlights NTPC’s commitment to accelerating the nation’s energy transition and its leadership in clean energy initiatives.
Coming to the operational highlights for third quarter and nine months financial year ’25. During nine months FY ’25, NTPC Group added 640 megawatt commercial capacity — commercial RE capacity to its portfolio. As on 31 December 2024, the commercial capacity of NTPC stands at 59,168 megawatts on a standalone basis and 76,598 megawatts for the Group. In the current quarter, we have added 135 megawatt RE capacity and 660 megawatt coal capacity of our subsidiary THDC India Limited is being declared commercial from tomorrow. I repeat 660 megawatts coal capacity of our subsidiary THDC is being declared commercial from tomorrow.
NTPC Group generated 327 billion units in nine months FY ’25 as compared to 315 billion units in nine months FY ’24, registering a growth of 4%. NTPC’s standalone gross generation in nine months FY ’25 also grew by 4% to 278 billion units from 268 billion units in the corresponding previous period. During nine months FY ’25, PLF of coal stations of NTPC was 76.20% as against 67.20% PLF of coal stations of rest of India. Rihand Station with a PLF of 89.42% is the seventh ranked station and Singrauli Station with the PLF of 88.59% is the eighth ranked station in the All India PLF Ranking during the nine months period ended 31 December 2024. Overall, seven NTPC stations are ranked among the top 15 stations.
As regards the status of fuel supply. Coal supply during nine months FY ’25 was 185.15 million metric tons, including 2.26 million metric ton of imported coal. Coal supply during the corresponding previous period was 175.84 million metric tons, including 5.88 MMT of imported coal. NTPC has registered highest-ever coal production of 30.88 MMT in nine months FY ’25, with growth of 23% as against 25.12 MMT in the nine months FY ’24. Cumulative expenditure of INR11,841 crores has been incurred on development of coal mines till 31 December 2024.
Coming to the financial performance. For NTPC, on a standalone basis, total income for Q3 FY ’25 is INR42,303 crores as against INR40,288 crores in the corresponding quarter of previous year, registering a growth of 5%. For nine months FY ’25, the total income increased by 6% to INR1,28,601 crores from INR1,21,486 crores in the corresponding previous period. NTPC’s profit after tax for Q3 FY ’25 is INR4,711 crores as against INR4,572 crores crores in the corresponding quarter of previous year, registering an increase of 3%. On nine months basis, profit after tax is INR13,871 crores as against INR12,523 crores in nine months FY ’24, registering an increase of 11%.
Total income of the Group for nine months FY ’25 is INR1,39,777 crores as against INR1,32,349 crores in the corresponding previous period, an increase of 6%. PAT of the Group for nine months financial ’25 is INR16,056 crores as against the corresponding previous period PAT of INR14,842 crores, registering an increase of 8%. We expect to maintain similar growth on full-year basis also. During nine months FY ’25, our subsidiaries earned profit of INR1,908 crores as compared to INR1,516 crores in the corresponding period of previous year, registering an increase of 26%. NTPC’s share of profit in JVs has increased from INR1,425 crores — INR1,424 crores in nine months FY ’25 [Phonetic] to INR1,581 crores in nine months FY ’25, registering an increase of 11%.
During nine months FY ’25, we have accounted for dividend income of INR1,309 crores from our subsidiaries and joint venture companies as against INR653 crores during nine months FY ’24. Standalone regulated equity for conventional power and mining business as on 31 December 2024 is INR90,289 crores, which was INR84,498 crores in the previous year, registering a growth of 7%. On a consolidated basis, regulated equity as on 31 December 2024 is INR1,05,854 crores, which is 5% over the last year’s figure of INR1,01,116 crores. The Board has declared second interim dividend of INR2.5 per share for the financial year 2024-’25. First interim dividend of INR2.5 per share was paid in November 2024.
The average interest rate on borrowings for the Company during nine months FY ’25 was 6.64% as compared to 6.66% in nine months FY ’24. In the nine months FY ’25, we have incurred a Group capex of INR31,133 crores as compared to INR21,642 crores in the corresponding previous period. While on a standalone basis, NTPC has incurred a capex of INR16,305 crores as compared to INR11,963 crores in the corresponding previous period.
As part of our overall capacity expansion plan, investment approval has been accorded for 8 gigawatt thermal capacity during the current fiscal at an aggregate appraised current estimated cost of INR1 lakh crore. Total thermal capacity under-construction now stands at 17.56 gigawatts. In addition, hydro and RE capacity under-construction is 2.2 gigawatt and 10.3 gigawatt, respectively, taking total capacity under-construction for NTPC Group to over 30 gigawatts. We are actively considering awarding additional thermal capacity to the tune of 7.2 gigawatt for the financial year ’26-’27, and with an ambitious target of 60 gigawatt of renewable energy by 2032, NTPC is poised for significant growth in the coming years. Furthermore, to have greater fuel security, we are enhancing our coal mining capacity as well. It is planned to enhance the NTPC Group coal production from 14 million metric ton in financial year ’25 to an estimated 67 million metric ton by FY ’29.
To accelerate our growth, NTPC is also positioned to make significant contribution to the energy transition through clean baseload generation technologies such as nuclear power. For taking this forward, Anushakti Vidhyut Nigam Limited, ASHVINI, a joint venture company of NTPC and Nuclear Power Corporation Limited, has been established for commissioning pressurized heavy water reactor nuclear projects. We have recently signed a supplementary joint venture agreement with NPCIL for transfer of 2,800 megawatt Mahi Banswara Rajasthan Atomic Power Plant Project from NPCIL to ASHVINI. Further, NTPC Parmanu Urja Nigam Limited has been incorporated on 7 January 2025 as a wholly-owned subsidiary of NTPC Limited for undertaking nuclear energy business. We are planning to conduct site studies at many locations. We have already got permission for four locations in MP for site studies.
Going higher on generation, lowering GHG intensity remains our motto for environmental management and drives our efforts to comply with new environmental norms. We have taken significant steps to control SOx/NOx emissions. Over the next three years, we plan to commission FGD systems for the entire operational capacity, ensuring a substantial reduction in SOx emissions. We have commissioned 16.48 gigawatts and work in FGD package for a cumulative capacity of 52 gigawatt is under progress. As part of its ongoing sustainability measures to reduce greenhouse gases, NTPC Stations received 4.29 lakh metric ton of biomass in nine months FY ’25, a remarkable increase compared to 0.71 lakh metric tons during the same period last year.
We have signed a joint venture agreement with Rajasthan Rajya Vidyut Utpadan Nigam Limited for Chhabra Thermal Power Plant. RVUNL has 2,320 megawatts plant at Chhabra, and we have mutually agreed to form a 50-50 JV company, which will own and operate the said power plant and also explore opportunity for its capacity expansion.
Now, turning to the highlights of NTPC Green Energy Limited. During nine months FY ’25, NGEL has added 550 megawatt commercial RE capacity to its portfolio. As on 31 December 2024, the commercial capacity of NGEL stands at 3,475 megawatt as against 2,761 megawatt as on 31 December 2023. NGEL has added an additional 135 megawatt of renewable capacity in the fourth quarter to date. NGEL generated 4,742 million units in nine months FY ’25 as compared to 4,199 million units in nine months FY ’24, registering a growth of 13%. During nine months FY ’25, CUF of NGEL stations was 22.99% as against 23.37% in corresponding period of previous years, mainly due to lower GHI and extended monsoon.
NGEL’s total income for Q3 FY ’25 is INR581 crores as against INR463 crores in the corresponding quarter of the previous year, registering an increase of 25%. For nine months FY ’25, the total income grew by 15% to INR1,714 crores from INR1,485 crores in the corresponding previous period. NTPC’s total EBITDA for Q3 FY ’25 has risen by 22% to INR500 crores as against INR412 crores in the corresponding period of previous year. On nine months basis, total EBITDA is INR1,483 crores, up against INR1,337 crores in nine months FY ’24, registering a growth of 11%. I stand corrected. This — it is NGEL’s total EBITDA for Q3, has risen from 22%, you can correct it.
In nine months FY ’25, NGEL on a consolidated basis has incurred capacity of INR7,261 crores as compared to INR2,779 crores in the corresponding previous period. Total contracted and awarded capacity has increased basically 63% during last one year to 13,921 megawatts as on 31 December 2024 from 8,550 megawatt as at 31 December 2023.
Within NTPC Renewable Energy Limited, a subsidiary of NGEL, successfully secured 1,000 megawatts in solar power auction by Uttar Pradesh Power Corporation Limited, UPPCL, at a tariff of INR2.56 per kWh. Additionally, NTPC REL won 500 megawatt of solar capacity in a SECI auction, which also includes the installation of 250 megawatts by 1,000 megawatt hours energy storage system at a tariff of INR3.52 per kilowatt hours. NTPC REL also won 300 megawatt capacity in NHPC auction, which also includes the installation of 150 megawatt by 300 megawatt hours energy storage system at tariff of INR3.09 per kWh. In total, we have won 2,200 megawatt of tariff-based competitive bidding — bids during the current fiscal.
To take its growth journey forward, NGEL has incorporated several joint ventures during this fiscal. NTPC Rajasthan Green Energy Limited, the 74:26 JV with Rajasthan Rajya Vidyut Utpadan Nigam Limited, aims to develop renewable energy park and green hydrogen projects in Rajasthan with up to 25 gigawatt capacity. NTPC UP Green Energy Limited, 51:49 JV with UPRVUNL, focuses on developing renewable energy parks and projects in Uttar Pradesh. MAHAGENCO NTPC Green Energy Private Limited, a 50:50 JV with MAHAGENCO, will develop and operate renewable parks in Maharashtra. ONGC NTPC Green Private Limited, 50:50 JV with ONGC Green Limited, will explore and develop renewable energy projects including offshore wind initiatives.
NGEL has signed two joint venture agreements, one with Mahatma Phule Renewable Energy and Infrastructure Technology Limited, MAHAPREIT, to develop 10 gigawatt of renewable energy parks, and another with New and Renewable Energy Development Corporation of Andhra Pradesh to establish 25 gigawatts of renewable energy capacity, 0.5 million metric ton of green hydrogen and 10 gigawatt of pumped storage project in Andhra Pradesh. NGEL has signed two key MOUs during the quarter, one with the Government of Bihar for investments in renewable energy projects, including solar, battery storage and green hydrogen, with government facilitating necessary approvals. Second MOU with Chhattisgarh State Power Generation Corporation Limited, focuses on developing up to 2,000 megawatt of renewable energy projects, including floating solar.
As regards our green hydrogen initiatives, I would like to share that NTPC commissioned the Green Hydrogen Mobility Project at Leh, comprising 1.7 megawatt solar plant, green hydrogen filling station of capacity 80 kg per day and five hydrogen intra-city buses. Honorable Prime Minister laid the foundations for the NGEL Green Hydrogen Hub in Andhra Pradesh, marking India’s first green hydrogen hub under the National Green Hydrogen Mission. Detailed engineering for enabling infrastructure for Green Hydrogen Hub has been. NTPC Renewable Energy Limited, NTPC REL, signed an MOU with Kandla Port to set-up hydrogen fueling station and 11 hydrogen buses. NTPC also signed an MOU with GRIDCO and CRUT in Odisha to implement a green hydrogen mobility project. Additionally, NTPC launched a solar hydrogen microgrid project for the Indian Army in Ladakh, providing 200 kilowatt of power year-round.
Regarding the various awards received by us in the Q3 of FY ’25, Aravali Power Company Private Limited, a joint venture of our Company, received the first prize at the Fifth National Water Awards 2023 for water management and water conservation. NTPC was confirmed as the first runner-up in 2024 UN Women’s Initiative, WEP, Award in the category Community Engagement and Partnership for its flagship CSR Project, Girl Empowerment Mission. NTPC was confirmed with CSR Award in the category Swachh Bharat, Sanitation and Hygiene, at the 12th National CSR Summit 2024 for Municipal Solid Waste Plant Project at Karsada, Varanasi. NTPC also won five DX 2024 CII Awards for Best Practices in Digital Transformation. NTPC has been recognized as one of the Progressive Places to Work 2024 in the ET Now Progressive Places to Work 2024 event. NTPC received four awards in the PSE category at the SHRM HR Excellence Awards for excellence in Developing Emerging Leaders, Benefits and Wellness, Learning and Development and Community Impact.
These were some of the key highlights I wanted to share before we begin the question-and-answer session. Thank you, and over to you.
Questions and Answers:
Operator
Thank you very much. We will now begin the question-and-answer session. [Operator Instructions]
We’ll take our first question from the line of Mohit Kumar from ICICI Securities. Please go ahead.
Mohit Kumar
Yeah. Good afternoon — good evening, sir, and congratulations on a super listing of the NTPC Green. My first question is on the, sir — on — what was under-recovery in the coal-based power plant in nine months FY ’25?
Jaikumar Srinivasan
See, as we had shared during our last conference call that we stood at INR706 crores under-recovery, but now we have improved. During the quarter three, we have improved it by INR238 crores positive. So, at the end of December, we stand at an under-recovery of INR468 crores. And going ahead, in this — because, this third-quarter is normally not very — the best performance is always on the fourth quarter. So, accordingly, we hope to improve it further and bring it to the range of INR250 crores to INR300 crores.
Mohit Kumar
Understood, sir. My second question is on the NTPC Green. I just wanted to reconfirm the number. You said the 3.5 gigawatt operational capacity, 14 gigawatt of LOI awarded, plus 2.2 gigawatt of LOI. Is that right?
Jaikumar Srinivasan
You are referring to the…
Mohit Kumar
NTPC Green portfolio.
Jaikumar Srinivasan
Correct.
Mohit Kumar
Right. Sir, my question is, what is the capacity you expect to commission in NTPC Green in Q4 FY ’25 and FY ’26 and FY ’27 based on the current portfolio?
Jaikumar Srinivasan
See, for your safe benefit of this thing, I’ll repeat that. I said that during nine months financial ’25, NGEL has added 550 megawatt commercial RE capacity to its portfolio. As on 31 December, the commercial capacity stands at 3,475 megawatts as against 2,761 megawatt as on 31 December 2023, and we have added an additional 137 megawatt renewable capacity in the fourth quarter to date. Yeah. Now, what is your question?
Mohit Kumar
My question, what is the capacity you expect to commission in F ’25, F ’26 and F ’27 on the NTPC Green?
Jaikumar Srinivasan
You are talking about NGEL or total?
Mohit Kumar
NGEL, NTPC Green right now.
Jaikumar Srinivasan
Okay. So, renewable capacity for the current year till date 21 January, we have added 685 megawatts, and for entire financial year, year we expect to touch around 3,088 megawatts.
Mohit Kumar
For F ’26 and F ’27, similar number?
Jaikumar Srinivasan
That’s close to 5 gigawatt and 8 gigawatt tentatively.
Mohit Kumar
Understood. Sir, one request from our side, sir, given that the NTPC Green is now listed, is it possible to share some press release or detailing the portfolio of the renewables? It will be very helpful.
Jaikumar Srinivasan
Current portfolio?
Mohit Kumar
No, going forward, I think, we are — a request from our side that there should be an update on the RE portfolio by every quarter. That will be very helpful for us.
Jaikumar Srinivasan
Okay. Noted.
Mohit Kumar
Understood, sir. Thank you, sir. Thank you. Best of luck.
Operator
Thank you. [Operator Instructions]
We’ll take our next question from the line of Subhadip Mitra from Nuvama. Please go ahead.
Subhadip Mitra
Good evening, and thank you for the opportunity. Sir, if you could please help us with the adjusted PAT number for this quarter for both standalone and consolidated?
Jaikumar Srinivasan
Yeah. See, as far as standalone is concerned, for Q3, we have INR4,618 crores as adjusted PAT as against a reported PAT of INR4,711 crores. And as far as nine months is concerned, as against a reported PAT of INR13,871 crores, the adjusted PAT is INR13,015 crores, so which is — which would be 14% compared to the nine months last year.
Subhadip Mitra
Okay. And the growth for the 3Q would be how much Y-o-Y?
Jaikumar Srinivasan
Sorry?
Subhadip Mitra
The third quarter INR4,618 crores number, that’s a growth of how much Y-o-Y?
Jaikumar Srinivasan
6%. On a standalone basis, it is 6% from the INR4,618 crores compares favorably to 6% above INR4,356 crores, which was the last year’s figure.
Subhadip Mitra
Understood. And sir, similar numbers for the consolidated?
Jaikumar Srinivasan
Similar number for consolidated, INR4,964 crores was the adjusted PAT. And as far as the nine months is concerned, I would — I have already given INR14,796 crores compared to INR13,437 crores last year, which is a 10% above the previous year.
Subhadip Mitra
So, the consol PAT for nine months is 10% Y-o-Y growth, and for the third quarter, the consol adjusted PAT would be a growth of how much?
Jaikumar Srinivasan
It would be close to 1%.
Subhadip Mitra
Okay. So, the flattish number in 3Q for consolidated, is there any particular reason that’s worth highlighting? Was there a higher base of last year because there was something that came in, in that quarter and there is some lumpiness?
Jaikumar Srinivasan
I think I would urge you to — we’ll get into the reason, but I will urge you to look at the nine months figure. That should show the overall trend. There could be — the Q3 is showing a 1%, but there could be some peculiar reason for that. It’s not there before — right before me. Maybe we can share it with you later on.
Subhadip Mitra
Understood. Lastly, two points from my side. The incentive earnings under the new CERC guidelines, I would assume much of that would come in a chunky form in fourth quarter. Would there be any indicative number that you’re looking at given that nine months are already passed and are you looking at larger chunkier incentive earnings in 4Q?
Jaikumar Srinivasan
See, incentive, we have a figure of INR762 crores. And for — we expect to maintain the same trend. It should be similar to quarter three, I should say.
Subhadip Mitra
Okay. And in terms of awarding, you did mention that the new thermal awards are expected to be about 7.2 gigawatts by FY ’27. So, are we expecting this to be more front-ended that much of this award will be completed over FY ’25 and ’26? Any timelines on that on the awarding and the commissioning, both, please?
Jaikumar Srinivasan
See, there is presently NIT, we have floated around 2,400 megawatt and we expect this to be concluded by — in this quarter, Q4 financial ’25. I think we should take it to the logical end for 2,400 megawatt. And further, 4,800 megawatt is something which would be there in the agenda for FY ’26 and ’27.
Subhadip Mitra
Okay. And last…
Operator
Mr. Subhadip, may we request you to join back the queue, please?
Subhadip Mitra
Just a follow-up. The last point is in terms of the commissioning numbers for the thermal piece for, let’s say, FY ’25, ’26 and ’27. That’s the last point from my side.
Jaikumar Srinivasan
See, as far as the COD guidance is concerned for financial year ’25, on a standalone basis, we expect 2,178 megawatt coming from two thermal projects and renewable projects. And considering the JV subsidiary, the figure would be 4,798 megawatt, which comprises of 3,088 megawatt of renewables and there would be three — two projects of THDC, one a 660 megawatt thermal project, a hydro pumped storage; and one 800 megawatt of Patratu.
So, all this put together, the JV subsidiary tallies 4,798 megawatt. For a Group level, it would be 6,976 megawatts for the current financial year. So, if you want overall breakup, the thermal total will be 2780 megawatt, hydro will be 250 megawatt and renewable will be 3,946 megawatt, so total of 6,976 megawatt.
Subhadip Mitra
This is for FY ’25? This is by March of ’25, correct?
Jaikumar Srinivasan
Yeah, absolutely. Yes.
Subhadip Mitra
Okay. And anything from ’26, next year?
Operator
Mr. Subhadip, I request you to join back the queue, please, as we have other participants waiting.
Subhadip Mitra
Sure.
Operator
Thank you. [Operator Instructions]
Next question is from the line of Gaurav from Axis Mutual Fund. Please go ahead.
Gaurav Birmiwal
Hello, sir. Thank you for the opportunity. So, you did mention that we are targeting another 3,000 — close to 3,100 megawatts for the year in NTPC Green in terms of addition. I just wanted to check the current commissioning pipeline — the current commissioning momentum, is it in-line with your initial targets? And how much more do we have to scale-up in terms of resource mobilization in order to achieve both the current year target as well as the subsequent year target?
Jaikumar Srinivasan
See, up to Q3, we had done — achieved a figure of 640 megawatt, and as a major — major portion of that, as things are lined-up, it would be in the fourth quarter only. And put together, we are expecting something in the upper side of the 3,000 megawatt for the Group as a whole. This would include the capacity addition in NREL, NGEL, NTPC and some other inorganic growth also.
Gaurav Birmiwal
Okay. Understood, sir. Sir, second question — yeah.
Jaikumar Srinivasan
And for the 5 gigawatt and the 8 gigawatt which we have mentioned, there is a complete visibility about this capacity addition.
Gaurav Birmiwal
Understood, sir. Just one more follow-up. So, you did mention that we have won a few new projects as well in terms of solar plus battery kind of tenders. And what kind of IRRs are we targeting in those — equity IRRs are we targeting in those two, three projects that we won?
Jaikumar Srinivasan
Look, you have to repeat your question, your voice is not very clear.
Gaurav Birmiwal
Hello, sir. Can you hear me now?
Jaikumar Srinivasan
Yeah.
Gaurav Birmiwal
Yeah. So, I was just asking, we’ve said that you won new solar plus battery kind of tenders. What kind of equity IRRs are we targeting in those projects?
Jaikumar Srinivasan
It would be in the range of 12%, 12.5%.
Gaurav Birmiwal
Understood, sir. Thank you.
Operator
Thank you. We’ll take our next question from the line of Puneet from HSBC. Please go ahead.
Puneet Gulati
Yeah, thank you so much for the opportunity. My first question is, the first nine months of capacity addition seems to be a bit slow on the NTPC Green side. Is there any particular reason for that? And what is the confidence level for the fourth quarter commissioning? Where are the big hurdles we are seeing?
Jaikumar Srinivasan
No, I think capacity addition is something — it depends on the nature of the site, this thing. It is incidentally lined-up in a way that the chunk of the capacity addition is coming in the fourth quarter. It can’t be — as per my desire that it should be completely equated. So, it so happens the — in some year, there could be a spill-over and you can see a greater capacity, it is in the first and second quarter. But largely speaking, as these set of projects which are on-hand, they are destined to or planned to be commissioned in the fourth quarter.
Puneet Gulati
Understood. And on the thermal side, if you can also give some guidance for FY ’26 and ’27 for NTPC standalone and the JV separately, if possible?
Jaikumar Srinivasan
Yes. As far as FY ’25, I have elaborated it with earlier participant. But for financial year ’26, we expect a — I’ll begin with the total figure. The total figure we have is of 7,771 megawatt, comprising of 1,460 megawatt of thermal projects, hydro 750 megawatt and renewable of 5,561 megawatt.
And if you dissect that, it — on a — between standalone and JV subsidiary, JV subsidiary will constitute a chunk of that, it is 7,569 megawatt and standalone, it will be 202 megawatt of renewables. Nothing — no thermal projects is lined-up on a standalone incidentally in the next financial year. But in the JV, Patratu 2, THDC’s Khurja Unit 2, and THDC Hydro PSP 750 megawatt is lined-up. Renewables will constitute 5.35 gigawatt, as I mentioned to you. So, that tallies 7,569 megawatt of JV subsidiary, 202 megawatt standalone, which takes the figure to 7.77 gigawatt for the financial year ’26.
Puneet Gulati
Understood. Very clear. And 27?
Jaikumar Srinivasan
’27 is a figure of — gross figure of 9,904 gigawatt [Phonetic], that would have an element of thermal 1,460 megawatts, hydro 44 megawatts, renewable 8,000 megawatt. And if you split it between JV subsidiary and standalone, JV subsidiary will be 9,244 megawatt, while the standalone is 660 gigawatt, that would be the Talcher Unit 1 — Talcher 3 Unit 1, and there will be, in the JV subsidiary side, Patratu Unit 3, 800 megawatt. THDC’s Vishnugad-Pipalkoti, 444 megawatt. And renewable, as I mentioned to you already, it would be 8 gigawatt, which takes the total to 9,244 megawatt of JV subsidiaries and the overall tally to 9,904 megawatt.
So, on a whole, for the three years, FY ’25, ’26 and ’27, we have a figure of 24,651 megawatt of overall capacity addition in the three years, three fiscal years, whereas — where thermal will constitute 5,700 megawatt, hydro will be 1,444 megawatt and renewable total will be 17,507 megawatt. I think that makes it amply clear.
Puneet Gulati
Yes, absolutely. Thank you so much. Last one, if I may. You’ve talked about the pipeline of 7.2 gigawatt to be ordered out. All of them are in JVs. Is there a plan to add something at standalone level also beyond this?
Jaikumar Srinivasan
That’s an exploratory process, see, in the sense that I think we are not the — we don’t do this by any design. See, we have to look at the overall capacity addition, the adequacy, the demand, the transition imperatives, all this is mind — and we have to keep it in mind. So — and our stated policy that we would initially go for a greenfield. So, whatever suits — whatever fits into this philosophy, we’ll have a priority, the merit order as per that rather than any other order.
So, if need arise that there are some potentials in the standalone NTPC also, but then we will go — we’ll go as per this and subject to feasibility, of course, every project is not with feasibility. So, we have identified this as the most potential. But going ahead, we may change the order also and we can progressively keep you apprised about that.
Puneet Gulati
Understood. That’s very helpful. Thank you so much and all the best.
Operator
Thank you. We’ll take our next question from the line of Ketan Jain from Avendus Spark. Please go ahead. Mr. Ketan Jain, please…
Ketan Jain
Hello. Yes. Am I audible?
Operator
Yes, please go ahead.
Ketan Jain
Hi, good evening, sir. Sir, my question is on the under-construction renewable capacity. As you said, it was around 10 gigawatt. Sir, how much of this capacity would we have land and transmission tied-up?
Jaikumar Srinivasan
A lot of noise over there in the background. Yeah, please repeat your question.
Operator
Ketan, you are not audible.
Ketan Jain
Hello? Am I clear now?
Operator
Yes.
Ketan Jain
Sir, how much of the under-construction renewable capacity will we have the land and transmission tied-up?
Jaikumar Srinivasan
See, as far as — evidently, FY ’25 is there. And FY ’26, what we have targeted of 5 gigawatt, we have all the resources in-place, including land.
Ketan Jain
Okay. Thank you, sir.
Operator
Thank you. Next question is from the line of Ragini Pande from Elara Capital. Please go ahead. Ragini?
Ragini Pande
Sir, what was your PLF incentives in this quarter and the last year, if you can share? Hello?
Jaikumar Srinivasan
You talk about incentive of PLF?
Ragini Pande
Yes.
Jaikumar Srinivasan
I didn’t hear you. Is it landlord factor or incentive? What are you — what was it?
Ragini Pande
Sir, plant load factor-based incentives, if you can share?
Jaikumar Srinivasan
[Technical Issues] [Speech Overlap] Can I paraphrase your question? You want to know what is your — what is our incentive we have gain, or you are wanting a physical parameter of your landlord factor?
Ragini Pande
No, the PLF based incentives, incentive income because your PLF…
Jaikumar Srinivasan
Okay. Now, it is clear. See, nine months, we have a INR762 crores of incentive. We did at INR255 crores during the Q3, taking that tally to INR762 crores. And as I answered already, we expect a similar kind of a figure for Q4 also.
Ragini Pande
Okay. Thank you. Next one is, sir, what is — what will — what is the income from the rate payment surcharge regulations? I mean, how has the receivables improved after the implementation of the LPSC rules?
Jaikumar Srinivasan
See, our late payment surcharge figure stood at INR177 crores till half-year financial — current financial. For the Q3, it is INR71 crores. So, for nine months, it is INR248 crores. Now, with the implementation of the LPSC rules, as you rightly said, the surcharge income is not by design, it is by default in the sense that higher surcharge figures beyond the point should be a cause for worry, because then the debtors control — it talks about a higher debtor figure.
So, with the LPSC framework in-place, the payment trend has been quite good. So, that is the reason generally in the sector as a whole, for all the generators, if you look at the figure of income from late payments such, it is dwindling. So, to give you an example, financial year ’19-’20, we had a figure of INR1,240 crores earnings from — for nine months. And comparing nine months, it was INR1,240 crores for financial year ’20-’21, it was INR1,695 crores, and then it started going down, INR642 crores, INR459 crores, INR186 crores last year, and now it is INR248 crores. So, it is a sign of a better collection efficiency.
Ragini Pande
Okay.
Operator
Thank you. Ragini, I request you to join back in the queue, please, as we have other participants waiting. Thank you. Next question is from the line of Mohit Pandey from Macquarie Capital. Please go ahead.
Mohit Pandey
Yeah. Good evening, sir. Thanks for the opportunity. Sir, firstly, if you could clarify the 7.2 gigawatt of thermal capacity that is to be tendered out by FY ’27. That’s — that will be predominantly on brownfield mode or greenfield also?
Jaikumar Srinivasan
No, as I mentioned to you, NTPC is going predominantly for brownfield only, I would say, entirely for brownfield. We haven’t gone in for any thermal in recent period, which is a greenfield. So, your questions stand answered. Yes, it is a brownfield only.
Mohit Pandey
Okay. Yeah. So, the question pertains to the 7.2 gigawatt that is yet to be tended, but that clarifies, sir. Thank you. Sir, secondly, with regards to FGDs, while you mentioned the gigawatts under-construction, if you could help with what kind of commissioning in rupees, crore terms is expected over FY ’26 and ’27?
Jaikumar Srinivasan
See, we have broadly two set of FGDs. One is what we are implementing along with the projects. So, this is the project itself, the one which is done on a FGD which is being implemented separately for the existing commissioned plants. Now, the entire megawatt capacity of the FGD existing would be 59,880 megawatt, which would constitute roughly an expenditure of INR32,800 crores. Now, out of this, 12,120 megawatt of capacity equivalent of FGD has already been under commercial operation as at 31 December 2024, so which would be a INR5,368 crores of approved corresponding cost.
Now, if you look at the upcoming COD status for this additional FGDs, 4,360 megawatts we are expecting during the balance part of the current year. For financial year ’26 it would be 13,310 megawatt; for financial year ’27, it would be 14,110 megawatts; and financial year ’28, it would be 15,980 megawatts. So, that totals up to 59,880 megawatt. And if you talk about the corresponding cost of this, I’m mentioning only the approved cost, not the completed cost, it could differ slightly. For financial year, balance, it would be INR2,626 crores. Next year, it would be INR7,645 crores. Financial year ’27, it would be INR8,105 crores. Financial year ’28, it would be INR9,030 crores. These are tentative figures as per the schedule of commissioning. Thank you.
Mohit Pandey
Understood, sir. Thank you so much. And sir, last question is on fixed-cost under-recovery. While we are seeing a very good progress in this quarter, what will drive further progress as you indicated that by the end of the year, you plan to get it down to INR250 crore, INR300 crores? That would be my last question, sir.
Jaikumar Srinivasan
This is — see, this is based on — our optimism is based on not near optimism, it is based on the ground conditions, and Q4 is something where most of our units are up and running, and so that this is the period where you have the least planned outages. So, taking into account, that we are doing this.
Mohit Pandey
Okay. Understood, sir. Thank you so much and wish you all the best. Thank you.
Operator
Thank you. Next question is from the line of Aniket Mittal from SBI Mutual Fund. Please go ahead.
Aniket Mittal
Yes, sir. Thank you for the opportunity. Sir, my first question was on NEEPCO and THDC. I remember earlier, you highlighted about 12 gigawatt of additional hydro base capacity that you want to add over there. Could you give some details on the — when can we expect awarding for those happen and which projects are in advanced stages?
Jaikumar Srinivasan
No, we didn’t — I didn’t mention anything in terms of a fresh award for NEEPCO and THDC. I had given only a COD guidance for FY ’25 and beyond based on the already awarded projects.
Aniket Mittal
Are there plans to undertake new projects within that on the hydro side?
Jaikumar Srinivasan
I suppose there are some distant projects which are under feasibility study, but I can’t say anything very categorically at this stage because I don’t have the figures right before me right now.
Aniket Mittal
Okay. And just one last book-keeping question. On the consolidated financials, the other income has gone down fairly drastically for the quarter on a Y-o-Y basis. What is leading to that decline?
Jaikumar Srinivasan
Let me have a look.
Aniket Mittal
There is roughly a 30% fall in the other income on Y-o-Y.
Jaikumar Srinivasan
Yeah, I can — I have this figure before me. The other income was INR754.27 crores, and now it is INR554 crores [Phonetic], so it’s a drop by INR209 crores. So, the change is in contributor by NTPC INR118 crores, NGEL INR65.86 crores. This is because of increase in the interest from bank deposits. RGPPL, there is a INR30 crores. So, this is the broad breakup for this. And this is this stands eliminated by — these are the upsides. This stands eliminated by INR424.71 crores of higher dividends from JVs and subsidiaries, so that brings it to INR209 crores.
Aniket Mittal
Okay. Maybe I’ll discuss this offline. Thank you.
Operator
Thank you. We’ll take our next question from the line of Nikhil Nigania from Bernstein. Please go ahead.
Nikhil Nigania
Thank you for taking my question. My first question is on the Bangladesh plant. If you — the joint venture plant. If you could give some update on what is happening there, what is the status of the plant? Any issues you are facing there on that plant?
Jaikumar Srinivasan
Yeah. I would request Director, Operations, Mr. Ravindra Kumar, who is incidentally in the Board of that company as the Chairman to take on this question.
Ravindra Kumar
Both plants of the Bangladesh, BIFPCL, is commissioned and it’s operating. But right now, because of the coal and dollar prices, the coal is not available, so it is under cut out. Whenever the coal will be available and the dollar will be available and we will start the plant.
Operator
I’m sorry to interrupt. Sir, can you come closer to the microphone, please?
Ravindra Kumar
Both Bangladesh plants is commissioned and it was running, but now it is under shutdown because for want of coal and coal is expected — temporarily, and coal is expected to be arriving very soon. So, we will start the plant again as per the great requirement there.
Nikhil Nigania
Got it, sir. Sir, some color on — how much investment we have made in terms of equity into that plant?
Ravindra Kumar
[Speech Overlap] INR1,324 crores we have already invested there.
Nikhil Nigania
Understood, sir. Got it. One last question on — there was this article that there were issues with BHEL, which were leading to delays in commissioning of plants and a meeting was held. If you could share some color if there has been any progress or is the likelihood of further delays in commissioning of the pipeline plants like Patratu, Khurja, like others etc.?
Jaikumar Srinivasan
Director, Projects will take on this question, Mr. Shanmugha Sundaram.
Shanmugha Sundaram
Actually, there was some meeting to — for the order BHEL was being conducted. Now BHEL is able to take care of this vendor’s cash flow. Earlier, even vendor cash flow was an issue. They are improving on all fronts. You must be knowing, Khurja has been — Unit 1 has been commissioned. Today night, it will be declared commercial operational declaration. So, there seems to be a positive approach from BHEL, and we have to see how it moves. We are planning to commission Patratu Unit 1 in this quarter and North Karanpura Unit 3 also in this quarter, both are BHEL supply units.
Nikhil Nigania
All right. Understood. Those were my questions.
Operator
Thank you. Our next question is from the line of Vishal Periwal from Antique Stock Broking. Please go ahead.
Vishal Periwal
Yeah, sir. Thanks for the opportunity. Two questions from me. One on NGEL, you did mention like there is — there could be some bit of inorganic growth. So, anything that happened, so it will be over and above our capacity addition target of 3 gigawatts, 5 gigawatts and 8 gigawatts for the next three years?
Jaikumar Srinivasan
At this moment, you can you can assume that all this put together would be about 3 gigawatts.
Vishal Periwal
Okay. But this is part of our target that given?
Jaikumar Srinivasan
For the current financial year, since it’s only two months down, so I would give you a figure as a guidance that you take a figure of 3 gigawatt rather than asking for a split-up price in a very specific terms.
Vishal Periwal
Okay. Got it, sir. And then second, for this Rajasthan Vidyut, the 50-50 JV that we have done. For operational assets, so does this involve any investments or will this be part of our consol capacity, or is this just the O&M that we are doing?
Jaikumar Srinivasan
See, there is a — this is a thermal plant of 2,320 megawatts operational, and there is always a hope for expansion depending on the availability of land and several other inputs. But right now, it would be at 2,320 megawatt of operational assets only.
Vishal Periwal
Okay. So, I mean, like, does this involve, like, have you invested for this, or it will be only for the incremental capex that we are doing that will envisage investment?
Jaikumar Srinivasan
No, it is for the existing capacity. It is for the existing capacity of the running plant.
Vishal Periwal
Okay. Sure, sir. Sure. That’s all from my side. Thank you.
Operator
Thank you. We’ll take our next question from the line of Sumit Kishore from Axis Capital. Please go ahead.
Sumit Kishore
Thanks for the opportunity. My question is in relation to the multiple [Technical Issues] and outline what kind of investments or capacity additions are envisaged in these JVs of NGEL?
Jaikumar Srinivasan
I would put it this way that there is a planned capacity addition that we have given you guidance in terms of 5 gigawatt, 8 gigawatt and an average of 7 gigawatt to 8 gigawatt. Now, these are facilitators. This need not be looked at an incremental capacity over and above what we are stating, but these are the aid towards that. These are the avenues for bringing capacity additions. And these are recently formed joint ventures, which would involve that identification of suitable land, which the respective state government would be bringing to the table and with their own equity participation. So, I won’t be able to say in a concrete terms in terms of the timelines for this, but definitely, all this would be come very handy for our targeted capacity of 60 gigawatts by 2032.
Sumit Kishore
Okay. Just to understand this, the 3 gigawatt, 5 gigawatt, 8 gigawatt guidance for NGEL is at a consolidated level, including all JVs and potential inorganic growth that you might do will also go towards meeting this target?
Jaikumar Srinivasan
I would say that going ahead, the most of the expansion would be from NGEL, a chunk of that, I would say. But for the current year, you can take us up for the Group, but going ahead, more and more capacity additions would be from the NGEL. But I don’t rule out, there would be some capacity additions from our subsidiary — hydro subsidiaries also. Some — so some could be a small capacity addition can come from NTPC also wherever there is a feasibility in proximity to our existing plants, but the substantial part would — in the future, next two, three years will come from NGEL.
Sumit Kishore
And in reply to the previous participant, I just want to be very sure. So, Chhabra project, are you acquiring a 50% stake in that project and what is the consideration?
Jaikumar Srinivasan
No, consideration is something which I will not be sharing at this moment. It is subject to price discovery, modalities and other things. But I will share with you that it is 50% and the capacity is 2,320 megawatt.
Sumit Kishore
Okay. So, this you had not included in your overall capacity addition for NTPC through FY ’27 that you had mentioned earlier. This will be over and above?
Jaikumar Srinivasan
Whatever is the capacity? Whatever is the capacity addition I shared is about the projects under implementation. This would be over and above that.
Sumit Kishore
Very clear. Thank you. Thank you so much and wish you all the best.
Operator
Thank you. Ladies and gentlemen, we’ll take that as the last question for today. I now hand the conference over to management for closing comments. Over to you, sir
Jaikumar Srinivasan
I, along with my colleague directors here on behalf of the NTPC and NGEL, would like to thank all the participants for raising their queries, very pertinent queries and giving us an opportunity to share our thoughts as well as numbers for your perspective guessing. Thanks a lot.
Operator
[Operator Closing Remarks]