NTPC Limited (NTPC) Q3 FY22 Earnings Concall Transcript

NTPC Limited  (NSE:NTPC) Q3 FY22 Earnings Concall dated Jan. 29, 2022

Corporate Participants:

Harshvardhan Dole — Power Analyst-Institutional Equities

Anil Kumar Gautam — Director, Finance

Ujjwal Kanti Bhattacharya — Director, Projects

Ramesh Babu V. — Director, Operations

Analysts:

Mohit Kumar — DAM Capital — Analyst

Deepika Mundra — J.P. Morgan — Analyst

Unidentified Participant — — Analyst

Apoorva Bahadur — Investec — Analyst

Subhadip Mitra — JM Financial — Analyst

Puneet Gulati — HSBC — Analyst

Anuj Upadhyay — HDFC Securities — Analyst

Anupam Goswami — B&K Securities — Analyst

Atul Tiwari — Citi — Analyst

Rahul Modi — ICICI Securities — Analyst

Sumit Kishore — Axis Capital — Analyst

Presentation:

Operator

Ladies and gentlemen, good day, and welcome to Q3 FY ’22 Earnings Conference Call of NTPC Limited hosted by IIFL Securities. [Operator Instructions] I now hand the conference over to Mr. Harshvardhan Dole from IIFL Securities. Thank you, and over to you sir.

Harshvardhan Dole — Power Analyst-Institutional Equities

Thank you, Margaret. Greetings, everyone. On behalf of IIFL Securities, I welcome you all for the third quarter earnings call of NTPC. To discuss the stellar performance of NTPC Group, we have today the entire senior management of NTPC, whom I would like to congratulate and also like to congratulate and appreciate the Board’s token of paying out a handsome dividend. To discuss the numbers in detail and share the performance outlook, we have Mr. A.K. Gautam, Director, Finance; Mr. Dillip Kumar Patel, Director, Human Resources; Mr. Ramesh Babu V., Director, Operations; Mr. Chandan Kumar Mondol, Director, Commercial; Mr. Ujjwal Kanti Bhattacharya, Director, Projects.

Without much of a delay, I would like to hand over the line to NTPC management who will make the opening remarks subsequent to which the floor can be

Opened for Q&A. Over to you, sir.

Anil Kumar Gautam — Director, Finance

Thank you, Harsh. A very good evening to everybody. I, A.P. Gautam, Director, Finance, welcome all of you to the Q3 FY ’22 con call of NTPC Limited. I have with me Shri. Dillip Kumar Patel, Director, Human Resources; Shri. Ramesh Babu V., Director, Operations; Shri. Chandan Kumar Mondol, Director, Commercial; and Shri. Ujjwal Kanti Bhattacharya, Director, Projects. I have also with me the other key members of NTPC team.

Company has announced the unaudited financial results for third quarter and nine-months of FY ’22 today. The Key performance highlights for the third quarter and nine-months ended December 31, 2021 have already been disclosed on both the stock exchanges. Now, briefly upon operational highlights for Q3 and nine-month of FY ’22. NTPC standalone gross generation in Q3 FY ’22 is 72.70 billion units and in nine-month FY ’22 is 219.26 billion units as compared to 65.42 billion units and 193.28 billion units in the corresponding previous periods, registering an increase of 11.13% and 13.44%, respectively. Gross generation of NTPC Group in Q3 FY ’22 is 87.92 billion units and in nine-month FY ’22 is 264.70 billion units as compared to 76.53 billion units and 222.41 billion units in the corresponding previous periods, registering an increase of 14.88% and 19.01%, respectively.

In Q3 FY ’22, we have added 1327.42 megawatt to our commercial capacity comprising 660 megawatt at Barh, 80 megawatt solar capacity at Jetsar, 49.92 megawatt solar capacity at Fatehgarh, 37.50 megawatt floating solar capacity at Ramagundam, 250 megawatt at Barauni and 250 megawatt at Bhartiya Rail Bijlee Company Limited. Also, after the expiry of validity of the PPA entered into with erstwhile BSEB, the Board of Directors of NTPC has accorded approval for discontinuance of operation of Muzaffarpur Thermal Power Station, Stage-I 2 into 110 megawatt of our wholly owned subsidiary company Kanti Bijlee Utpadan Nigam Limited. With this, the commercial capacity of NTPC has become 54302.42 megawatt on standalone basis and 67757.42 megawatt for the Group as on December 31, 2021.

NTPC Group has already commissioned 1557.42 megawatt of RE projects under EPC mode. 2999.58 megawatt of solar projects including ongoing projects of NTPC REL are presently under implementation. In addition, 3115 megawatt capacity has been won through tariff-based competitive bidding. For nine-month FY ’22, NTPC Korba Station was ranked 1st with a PLF of 94.07% among the top 10 performing stations in the country in terms of PLF. During nine-month FY ’22, PLF of coal stations of NTPC was 68.95% as against the national average of 57.02%, thereby maintaining a spread of almost 12%.

During the period, we have suffered losses due to grid restrictions and fuel supply. The generation loss due to grid restrictions in coal-based stations was 53.52 billion units in nine-month FY ’22 as compared to 84.12 billion units in nine-month FY ’21. For the gas-based stations the gross loss — the loss was 22.75 billion units in nine-month FY ’22 as compared to 20.25 billion units in nine-month FY ’21. The generation loss on account of fuel supply constraints was 6.02 billion units for nine month FY ’22.

Now, regarding status of fuel supply. During the nine-month FY ’22, materialization of coal against ACQ was 96.20% as against 88.71% in nine-month FY ’21. Coal supply during nine-month FY ’22 was 143.42 million metric ton, comprising of 142.02 million metric ton of domestic coal and 1.40 million metric ton of imported coal. The coal supply during the corresponding previous period was 124.57 million metric ton, with 123.96 million metric ton of domestic coal and 0.61 million metric ton of imported coal. NTPC has achieved a total coal production of 9.65 million metric ton during nine-month FY ’22, nine-month FY ’21 was 7.12 million metric ton. Cumulatively, 42.03 million metric ton of coal has been excavated from Pakri-Barwadih, Dulanga, Talaipalli coal mines till December 31, 2021. Cumulative expenditure of INR7,527.16 crore has been incurred on the development of coal mines till December 31, 2021.

Environmental management initiatives for preserving environment, flue gas desulphurisation are under various stages of implementation for 64 gigawatt of group capacity. FGD systems have already been commissioned for 1340 megawatt capacity. FGD system packages for 60.94 gigawatt capacity are under implementation and FGD system package for 1.45 gigawatt capacity are under various stages of tendering.

Now, some update over the financial highlights. Gross sales for Q3 FY ’22 is INR28,705.04 crore as against corresponding quarter of previous year

Gross sale of INR24,471.07 crore, registering an increase of 17.30%. On nine-months basis, there is an increase of 14.28% in the gross sales that is from INR72,504.83 crore in nine-month FY ’21 to INR82,860.67 crore in nine-month FY ’22. Total Income for Q3 FY ’22 is INR29,837.13 crore as against corresponding quarter of previous year total income of INR25,268.56 crore, registering an increase of 18.08%. On nine-months basis, there is an increase of 14.07% in the total income that is from INR75,312.89 crore in nine-month FY ’21 to INR85,912.38 crore in nine-month FY ’22.

Profit before tax for Q3 FY ’22 is INR5,409.01 crore, as against INR3,561.59 crore in the corresponding quarter of previous year, registering an increase of 51.87%. On nine months basis, PBT is INR12,678.27 crore as against INR10,126.31 crore in nine-month FY ’21, registering an increase of 25.20%. Profit after tax for Q3 FY ’22 is INR4,131.99 crore as against INR3,315.34 crore in the corresponding quarter of previous year, registering an increase of 24.63%. On nine months basis, PAT is INR10,489.53 crore as against INR9,290.30 crore in nine-month FY ’21, registering an increase of 12.91%.

Total income of the group for nine-month FY ’22 is INR97,269.89 crore as against INR83,859.59 crore in the corresponding period of the previous year, registering an increase of 16%. Profit after tax of the group for nine-month FY ’22 is INR11,760.78 crore as against INR10,319.91 crore in the corresponding period of the previous year, registering an increase of 13.96%. The Board has declared interim dividend at the rate of 40% of the paid up share capital that is INR4 per share. During the Q3 FY ’22, we have accounted dividend income of INR628.39 crore from our subsidiaries and joint venture companies as against INR5 crore received during Q3 of FY ’21.

An update on various other financial activities. The regulated equity as on December 31, ’21 was INR70,452.69 crore. Now, some update about fund mobilization. NTPC has issued unsecured debentures aggregating to INR1,175 crore at a yearly coupon of 6.74% on December 20, 2021 for a period of 10 years 3 months and 25 days. Average cost of borrowing for nine-month FY ’22 is 5.95% as compared to 6.26% in nine-month FY ’21. During Q3 FY ’22, NTPC has signed term loan agreements of INR3,000 crore and INR1,500 crore with HDFC Bank and IndusInd Bank, respectively, totaling to INR4,500 crores.

Now, certain update about capex. In nine-month FY ’22, we have incurred a group capex of INR25,064.10 crore as compared to INR12,983.14 crore in the previous period. NTPC Limited has awarded project of Standalone Fuel-Cell based Micro-grid with hydrogen production using electrolyser at NTPC Simhadri that is in Andhra Pradesh. This will be India’s first green hydrogen based energy storage project. It would be a precursor to large scale hydrogen energy storage projects and would be useful for studying and deploying multiple microgrids in various off-grid and strategic locations of the country.

The hydrogen would be produced using the advanced 240 kilowatt solid oxide electrolyzer by taking input power from the nearby floating solar power project. This unique project configuration is designed in-house by NTPC. This unique project for India would open doors for decarbonising the far-off regions of the country like Ladakh, Jammu Kashmir, etc. hitherto dependent on generators. The project is in line with the vision of honorable Prime Minister for becoming carbon-neutral by 2070 and making Ladakh a carbon-neutral territory. NTPC and EDF France has signed an MoU to explore power sector related investment opportunities in the Middle East, Europe, Africa and Asia. The MoU also envisages collaboration in the areas of R&D, efficiency improvement, consultancy, capacity building, hydrogen economy, electricity distribution apart from joint development of power generation projects including but not limited to solar, wind, hydro and waste to energy projects.

NTPC along with ISA, signed Grant Agreement with Comoros and Ethiopia for implementation of solarization projects as a PMC consultant of ISA. NTPC has been supporting 19 member countries of ISA under this solarization program for last one year under a partnership agreement with ISA. NTPC and Indian Oil signed a memorandum of understanding to collaborate in the field of renewable energy and mutually explore opportunities for supply of low carbon/RE RTC captive power. This is a first of its kind novel initiative by two leading national energy majors of India, to support the country’s commitment to achieve renewable energy targets and reduce greenhouse gas emissions.

An MoU for cooperation in overseas power sector was signed between NTPC and Inter Rao Export LLC. MoU was signed for cooperation in taking up project development, capacity building, and consultancy assignments outside India. NTPC NETRA signed memorandum — MoU with Greater Noida Industrial Development Authority for long term supply of 20 tons per day refuse derived fuel from Greater Noida Authority to NTPC NETRA. This initiative will help NETRA to demonstrate an environment friendly technology to produce green power and chemical from RDF and it is planned under the theme of NETRA Green

Campus, where the campus will have 24 by 7 green power from solar PV, battery storage, hydrogen and RDF.

Now, I will briefly touch upon some of the NTPC Group companies. The performance of our JV and subsidiaries is exemplary in nine-month FY ’22. Our subsidiaries have earned profit of INR1,788.04 crore in nine-month FY ’22 as compared to INR1,042.54 crore in the corresponding period of previous year, registering an increase of 71.51%. The share of NTPC in JV’s profit has increased by 73.66% from INR480.50 crore in nine-month FY ’21 to INR834.44 crore in nine-month FY ’22. NVVN, our trading subsidiary, transacted 17.92 billion units during the nine-month FY ’22 as against 12.70 billion units during nine-month FY ’21, registering a growth of over 41%.

In an endeavor towards sustainable development, NTPC Vidyut Vyapar Nigam Limited, a wholly owned subsidiary of NTPC Limited, has signed an agreement with Varanasi Nagar Nigam for setting up a waste to energy plant. The plant shall help in mitigating environmental hazards caused by solid waste and bring clean surroundings contributing towards Swachh Bharat. The plant shall be a milestone for the holy city of Varanasi towards Atmanirbhar Bharat using the latest indigenous Make in India technology for solid waste management in the country. Varanasi Nagar Nigam has allocated about 20 acres of land for setting up the plant. NVVN has signed a similar agreement with Bhopal Municipal Corporation also.

NTPC continues to win laurels and awards in various fields. Major awards received in Q3 FY ’22 are as follows. NTPC has received ESG India Leadership Award 2021 for playing a key role in air-pollution management. The award was presented for excellent practices for reducing and monitoring air pollutant emissions. NTPC has been conferred prestigious SHRM, Special Recognition for Learning and Development for the year 2021. NTPC has been honoured with 7th CSR Impact Award in the WASH, Water, Sanitation, and Hygiene, large category for the project revival of municipal solid waste plant, KARSADA at the India CSR Summit. NTPC received Company with Best CSR Practice Award in 8th Asia Business Responsibility Summit organized by Asian Center for Corporate Governance and Sustainability.

These were some of the highlights I wanted to share before we begin with the question-and-answer session. Thank you.

Harshvardhan Dole — Power Analyst-Institutional Equities

Margaret, Can we open the floor for Q&A?

Questions and Answers:

Operator

Thank you very much. [Operator Instructions] The first question is from the line of Mohit Kumar from DAM Capital. Please go ahead.

Mohit Kumar — DAM Capital — Analyst

Good evening, sir, and congratulations on a very good set of numbers. Sir, my first question is on the adjustable profit. Is it possible to share the adjusted profit for the quarter? And in note to accounts 3b the mentioned INR6.7 billion as prior period, is there any amount which is also recognized in the fuel?

Anil Kumar Gautam — Director, Finance

Yeah. Regarding adjusted profit, you can contact Aditya Dar. He will be submitting separately. And regarding, you were asking about note number 3b.

Mohit Kumar — DAM Capital — Analyst

3b, out of INR6.7 billion of income which you recognized…

Anil Kumar Gautam — Director, Finance

It also includes the previous year fuel of INR61.81 crore in Q3 FY ’22.

Mohit Kumar — DAM Capital — Analyst

Understood, sir. My second question is I understand that you have roughly around 7.4 gigawatt of renewables portfolio which includes under operation, under implementation and the amount which won in the bids, but how much is expected to be commissioned in next few years based on the contractual commitments at this point of time, is it possible to share that number over next few years?

Anil Kumar Gautam — Director, Finance

Sure. I will request Mohit to answer this question, please. Mohit?

Unidentified Speaker —

Yeah. Next three years, contractually there is certainly no commitment, because generally the lead time is about 18 to 24 months only. But over the next two years, our target is to do over, close to about 3.5 gigawatts. And beyond that once we get the LOA we will start working on that also.

Mohit Kumar — DAM Capital — Analyst

Understood. Sir, lastly sir, is there any proposal to transfer standalone renewables portfolio to NTPC Renewables Limited?

Anil Kumar Gautam — Director, Finance

Yeah. Today we have made a disclosure in the Board we have decided that we will be creating SPV under which the certain identified solar assets will be transferred through which a monetization, we are planning to do some monetization.

Mohit Kumar — DAM Capital — Analyst

Understood, sir. Thank you and all the best sir. Thank you.

Operator

Thank you. The next question is coming from the line of Deepika Mundra from J.P. Morgan. Please go ahead.

Deepika Mundra — J.P. Morgan — Analyst

Good evening, sir, and thank you for taking my question. Sir, I just wanted — over the next two, three year period, guidance on capex and how much of that is likely to go towards renewables? Also, you’ve mentioned certain projects in green hydrogen and battery storage, are those capex commitments that will be going in from NTPC?

Anil Kumar Gautam — Director, Finance

Yeah. Director, Project maybe answering this question.

Ujjwal Kanti Bhattacharya — Director, Projects

See this year we have a capex target of INR23,736 crore and we are more than 90% already and we are sure to achieve this and maybe we’ll try to go a bit more. Next year our target is INR22,500 crore and out of which the proportion of renewable will be of 40%. This is the position today.

Anil Kumar Gautam — Director, Finance

Second question regarding, RE.

Unidentified Speaker —

Regarding hydrogen and yeah, so regarding hydrogen, I think one of the points was mentioned earlier that we already started work on hydrogen based micro-grid. We also intend to take up a couple of other pilot projects will tend hydrogen, green hydrogen based mobility and then also for green hydrogen blending. Other than that, we have already issued a tender for procurement of 3000 megawatt hours of storage capacity, which we intend to use mainly for entering into contracts for supplying round the clock power to the customer and we also intend to come out separately with the capex based battery solutions also.

Deepika Mundra — J.P. Morgan — Analyst

Understood. And sir, can you talk a little bit about the procurement strategy for these kinds of projects for battery as well as for electrolyzers for the green hydrogen project?

Unidentified Participant — — Analyst

You see as a government owned company all our procurement has to be through a transparent bidding process only, but what we intend to do in the sales on the electrolyzer side is that we intend to come out with the medium-term partnership basis the lowest price offered by the manufacturers. So that’s on the anvil. And on the battery side, like I said, we already come out with 3,000 megawatt hour bid, which will be used and once we are able to tie that up, we’ll be coming out with larger capacities also.

Deepika Mundra — J.P. Morgan — Analyst

Right. Sir. Thank you. If you can just give a capex number for these projects, it would be helpful.

Anil Kumar Gautam — Director, Finance

These will be tied once we have the numbers on the table, once we have the final phase to that.

Deepika Mundra — J.P. Morgan — Analyst

Okay. Thank you so much.

Operator

Thank you. The next question is from the line of Apoorva Bahadur from Investec. Please go ahead.

Apoorva Bahadur — Investec — Analyst

Yeah. Hi, sir. Thank you so much for the opportunity. So any updates on the renewable business IPO possible monetization now that we are planning to at the standalone renewable assets as well, so timelines on that.

Anil Kumar Gautam — Director, Finance

Yeah, yeah. As already told that identified renewable assets will be transferred to our SPV or a separate subsidiary company for which we will be seeking an exemption from the Government of India regarding exemption from the capital gain tax. And as soon as that exemption is available we will be doing most probably this will be done in the next financial year, say, by October ’22.

Apoorva Bahadur — Investec — Analyst

Okay, very useful, sir. And sir, secondly, on the storage tender, which — for which we have come out with recently. So, can you throw some light on the economics there. So, will we be doing like a back-to-back agreement or will it be more like we will be tying up that capacity and as and when the opportunity comes up for RTC power we will be bidding based on that? Also the renewable capacity which will be used to charge the storage will this be separate from our existing pipeline or do we intend to use the curtailed electricity from our existing projects?

Anil Kumar Gautam — Director, Finance

Okay. I think part of that answered yourself because this tender for battery will be used largely for back-to-back orders only. Obviously we cannot be sitting on this capacity. So, once we have this capacity in place people worries [Technical Issues] Secondly, the charging and these are all expected to be RE-based storage solutions only, so all that RE capacity is not yet included in the pipeline and will be taken up once we enter into firm contracts.

Apoorva Bahadur — Investec — Analyst

Okay. So, we had also come out with a domestic module EOI so wanted to check what sort of interest have we received, given that there is probably going to be a module shortage since the government will be imposing BCG on Chinese modules and domestic capacity is not yet there.

Anil Kumar Gautam — Director, Finance

So, we have received interest on all the module manufacturers including the guys who have applied for the PLI scheme, practically all of them, and we intend to come out with the firm RFP maybe by the end of March.

Apoorva Bahadur — Investec — Analyst

Okay. Sir, last question from my side, if I may. And this is on the thermal capacity addition. So for any new projects have been added to the pipeline? I think there were discussions on.

Anil Kumar Gautam — Director, Finance

Yeah, I think Ujjawal, Director, Project will be giving this answer.

Ujjwal Kanti Bhattacharya — Director, Projects

As we told earlier also and we are consistent to that we are going for higher of renewable capacity addition in our portfolio and reducing our dependence on coal per se and fossil fuel in general. But we are also going through a transition process. You know that Government of India has declared 2070 as net-zero. So, we in consultation with Ministry of Power are now on the drawing board and creating a new paradigm. Some capacity on the thermal are going to be added. And we have already advertised an NIT for a 1320 megawatt of coal-based power project at Talcher and you must have seen it in the newspaper already. So, the process of Talcher by 1320 megawatt based on coal is on.

Apoorva Bahadur — Investec — Analyst

Okay.

Ujjwal Kanti Bhattacharya — Director, Projects

Yes, please.

Apoorva Bahadur — Investec — Analyst

Right, sir, fine. Thank you very much. I’ll get back in the queue for more questions.

Operator

Thank you. [Operator Instructions] The next question is from the line of the Subhadip Mitra from JM Financial. Please go ahead.

Subhadip Mitra — JM Financial — Analyst

Yeah, good afternoon. So my question is largely with regards to the capex that are looking at. So, while, I think you gave us the FY ’22 in the ’23 numbers. Any clarity on what the FY ’24 capex number will look like and how that gets bifurcated between the thermal as well as renewables?

Anil Kumar Gautam — Director, Finance

Yeah. The FY ’24 are being built up now. What we have frozen so far is INR18921 crore and we’ll add much more. As I told, the current year is INR23736 crore, next year we have already firmed up INR22454 crore and for the FY ’24, as I told, INR18291 crore has been firmed up and we will be adding much more then. We’ll come back to you as we.

Subhadip Mitra — JM Financial — Analyst

Sir, within this INR18291 crore, how much would be the renewable power?

Anil Kumar Gautam — Director, Finance

I told that for the next financial year approximately 40% is the renewable and going progressively forward the renewal will be more, but since we have started adding some of the thermal capacities, I think in FY ’24 also the proportion of renewable will remain around 40% to 45%, then it will go up progressively very understood.

Subhadip Mitra — JM Financial — Analyst

Understood. Lastly, if you can also help us with the plant-wise capacity additions that you are looking at in FY ’23 and ’24.

Anil Kumar Gautam — Director, Finance

Okay. For FY ’23 that North Karanpura Unit 1, 660 megawatt, then Barh Unit 2 660 megawatt, Telangana 1 unit of 800 megawatt unit number 1, and then Telangana Unit number 2 also of 800 megawatt. Then Durgapur there is a small unit of 40 megawatt. Bangladesh is going to be competitive both Unit 1 and 2, 1320 megawatts. And solar 1270 and will be adding probably more we are working on that and these are standalone. If you look at the Group, then THDC hydro pump storage at Tehri 250 megawatt will come, 1000 megawatt and through NREL we will be adding probably another 820 to 1200 megawatt more. So, if I conclude it the NTPC Group, the capacity will be something between 7300 to 8000 megawatt. And for FY ’24, the total capacity on the board is 4034 and as we told that we are going to go add more and more renewable, so we will add some more renewable capacity. As of now it is 4034 predominantly thermal Bahr Unit 1, sorry, Bahr stage 1 unit number 3 660,, North Karanpura unit number 2 660 megawatt,, North Karanpura unit number 3 660 megawatt, Patratu in Jharkhand state near Ranchi 800 megawatt first unit, then on the THDC thermal which is near Khurja first unit of 660 megawatt and THDC hydro project at Vishnugad Pipalkoti 444 megawatt. Through NREL we are planning 150, but definitely 150 is the capacity to become, in my opinion, no less than 3000 by that time. So, on the drawing board as on date it is 4034 roughly but likely to go around 6,000.

Subhadip Mitra — JM Financial — Analyst

Sorry, sir, you were saying something.

Anil Kumar Gautam — Director, Finance

No, no. I told that beyond this, we are not projecting because we are reworking on the thing. And regarding thermal I was just answering the question of somebody a couple of minutes ago and as we have we increasingly to renewables, but considering the transition and the transition fuel requirement we are going for addition of some thermal power station. Talcher we have started. We’re also looking at some other power projects like Singrauli, Lara, Darlipalli etc. amounting to 5320 megawatt. But one thing I’ll like to share with all of you or with our investors that consistent with our approach of reaching the decarbonization process and net zero ultimately by 2070, these thermal capacities will not be business as usual. We will be going for what we are terming as blue coal technology, but the carbon footprint we are trying to bring down as progressively lower and possibly if we can up to the level of CCGT but that’s at all talk, let’s see what we can do. Thank you.

Subhadip Mitra — JM Financial — Analyst

And these incremental thermal additions will all be on the ROE based mechanism?

Anil Kumar Gautam — Director, Finance

The incremental thermal capacity will be based on, yes.

Subhadip Mitra — JM Financial — Analyst

Understood. One last question if I many sneak in. So, while I think there was an earlier question on your divestment of the solar asset. Just wanted to get some clarity. I think there has been a lot of news flow around the fact that you are looking at probably a strategic partner or a strategic states still happening at the renewable subsidiary level. So I just wanted to understand that this exemption on capital gains for sale of certain solar assets that you mentioned this would be separate from the strategic partner that you’re looking at for the overall solar subsidiary.

Anil Kumar Gautam — Director, Finance

No, no, as I mentioned earlier also, we will be transferring certain identified solar assets to the new subsidiary or a new SPV through which we will be doing this monetization either through IPO, regular IPO or through some strategic partner, but these transfers will be made only after we receive exemption regarding the capital gain tax from the Ministry of Finance.

Subhadip Mitra — JM Financial — Analyst

Understood, very clear. Thank you so much.

Operator

Thank you. The next question is from the line of Puneet Gulati from HSBC. Please go ahead.

Puneet Gulati — HSBC — Analyst

Thank you so much. Can you also talk a bit about what is the plan for the FGD completion? When can we expect all these FGDs to be commissioned at least the ones which have been tendered out?

Anil Kumar Gautam — Director, Finance

Say, FGD as you are probably aware that we have already started working on 62280 megawatt of FGD all across a country, out of which 1340 megawatt have already been completed that spans 5 units. Another 129 units we are working. At Dadri Unit 5 and Unit 6 will be commissioned by June. Dadri Unit 5 is already commissioned so to say and we will declare it in seven days time. Jhajjar which is at the — the one unit will be ready by, you can say, February commissioned and then progressively four months afterwards second and third unit. These are the things which are commissioned — which are going to be commissioned in this financial year itself. And then we are also expecting that Khargone 660 megawatt in this financial year ’21, ’22 and Unchahar 500 megawatt in this financial year itself, then Tanda 220 megawatt and that takes us to total of 2370 megawatt. I assume that can I — should I give in totality the number?

Puneet Gulati — HSBC — Analyst

Yeah, yeah. I think just 2370…

Anil Kumar Gautam — Director, Finance

Yeah, yeah. The total is 62,280 megawatt of which 1,340 megawatt has been completed. ’22, ’23 FY we will be completing around 22,790 megawatt, ’23, ’24 we have a target of 15,270 megawatt and balance 22,880 megawatt we will be completing in ’24, ’25.

Puneet Gulati — HSBC — Analyst

Thank you, sir. This is very interesting. Thank you sir. And can you also talk a bit about what kind of EBITDA are you expecting from your renewable assets getting into ’23 or FY ’24?

Anil Kumar Gautam — Director, Finance

EBITDA it is very mature to say, yeah, but we are expecting return on equity what we are expecting in case of our thermal power projects, because normally the thermal power projects they take a minimum gestation period of six to seven years. Here in case of renewable energy projects, it is say 12 to 18 months. So corresponding — we are considering the corresponding ROE in case of renewable energy projects on IRR basis.

Puneet Gulati — HSBC — Analyst

Okay. So, IRR of 13% odd is something that you would be looking at.

Anil Kumar Gautam — Director, Finance

Not 13%, 12% you can say, 11% to 12%.

Puneet Gulati — HSBC — Analyst

Okay. Equity IRR.

Anil Kumar Gautam — Director, Finance

Yeah.

Puneet Gulati — HSBC — Analyst

Yeah, okay. This is very interesting. Sir, my last question is while we’ve been doing a lot of talk on solar, there is also talk on storage. So far what I know is there will be a 50 megawatt wind. I am I missing something or are you deliberately not doing wind or is there any hurdle in doing wind?

Anil Kumar Gautam — Director, Finance

Can you come again, what was the question?

Puneet Gulati — HSBC — Analyst

Yeah. So, to my knowledge there is only 50 megawatt of wind in your portfolio so far, have I got it wrong or is this correct and you’re deliberately trying to avoid wind or is there a reason to avoid doing wind?

Anil Kumar Gautam — Director, Finance

No, no, that number is correct, but we are not avoiding that. We’ve already started work on another 150 megawatt and we intend to take up wind in a major way. So there is no deliberate avoidance of any kind.

Puneet Gulati — HSBC — Analyst

Okay. And I would presume hybrids would follow post that as well.

Anil Kumar Gautam — Director, Finance

Yeah. So, for your information, we have already won a 450 megawatt hybrid tender. So we are well into that and we are also participating now in new hybrid and wind tenders.

Puneet Gulati — HSBC — Analyst

That’s great. Thank you so much. That’s all from my side.

Operator

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

Anuj Upadhyay — HDFC Securities — Analyst

Yeah. Thanks for the opportunity. And congrats on good set of numbers, sir. Sir, two questions, one is the reason for low availability during the quarter. And was there any under recovery for the quarter and nine month, if you can provide it would be very helpful, sir. And secondly, I missed on the figure of NTPC share across the JV and subsidiary for 3Q and nine-month, if you can share those would be helpful sir.

Anil Kumar Gautam — Director, Finance

So, regarding first question our Director, Operations. Mr. Ramesh Babu will be answering this question.

Ramesh Babu V. — Director, Operations

See the low availability was because we have taken the planned outage of our units compared to last year. It was 4.4% was a planned outage. This year we around 7.7%. So due to COVID whichever the units that we should not take for outage, all these have been taken. In the last year, in the first nine months, we did only four overhaling, you see we have done already 35, another 5 are in progress. So that was the reason why there was a availability loss. But nevertheless is more than required 85%. Regarding the under recovery, there has been around INR650 crores is the under recovery as of now. And by the end of the year, it would come down to around INR350 crores. As of now already it is less than the INR50 crores, now it’s only INR590 crores as of today. So, by end of the year it will be around INR350 crores. In this also another around INR70 crores we would be approaching the CRC, because three of our units have actually we had to take overhauling for a longer time due to COVID so this will be approaching CRC for relaxation. So, it would be around INR350 crores end of the year.

Anuj Upadhyay — HDFC Securities — Analyst

Just to confirm, you mentioned nine month under recovery was in the range of INR650 crores, am I right sir?

Ramesh Babu V. — Director, Operations

Yes, yes.

Anuj Upadhyay — HDFC Securities — Analyst

Okay. And target is to bring it down to INR350 crore.

Ramesh Babu V. — Director, Operations

As it move along, the another three months is there, DC would increase and slowly we will be reducing the under recovery.

Anuj Upadhyay — HDFC Securities — Analyst

Okay. And for the quarter sir if you can quantify Q3.

Ramesh Babu V. — Director, Operations

But is under recovery we generally considered in the cumulative basis only, under recovery is always considered on the cumulative basis.

Anuj Upadhyay — HDFC Securities — Analyst

Helpful sir.

Anil Kumar Gautam — Director, Finance

It is INR218 croes.

Anuj Upadhyay — HDFC Securities — Analyst

218 or 280?

Anil Kumar Gautam — Director, Finance

Yeah, 218.

Anuj Upadhyay — HDFC Securities — Analyst

Thank you, sir. And on the JV share sir.

Anil Kumar Gautam — Director, Finance

Yeah, yeah. WIth respect to your second part, this subsidies they have contributed INR1788.05 crores in nine month period and quarter it is INR814.52 crore and joint ventures INR834.44 crores and INR307.99 crores.

Anuj Upadhyay — HDFC Securities — Analyst

Thanks, sir. Thanks a lot.

Operator

Thank you. The next question is from the line of Anupam Goswami from B&K Securities. Please go ahead.

Anupam Goswami — B&K Securities — Analyst

First of all congratulate on the good set of numbers. Sir, my first question is going to follow up on the previous question, you mentioned about the capacities that are likely to come up in FY ’22 and ’24. Sir, my question is on the CWIP amount, equivalent amount that will be transferred from CWIC to gross block on FY ’23 to ’24.

Anil Kumar Gautam — Director, Finance

We just can’t mention right now, but you can estimate based on this — which has been mentioned by Director, Project regarding commissioning target multiply by you can identify how much CWIP will be converted into fixed assets. But right now, it is — it will be difficult to tell.

Anupam Goswami — B&K Securities — Analyst

When we think about the ballpark of…

Anil Kumar Gautam — Director, Finance

You can consider roughly multiply it by around INR5 crores, around INR5 crores per megawatt.

Anupam Goswami — B&K Securities — Analyst

And sir, what is our receivables amount this at the end of quarter three?

Unidentified Speaker —

Trade receivables will be well within the 45 days. Right now, if you see our outstanding dues beyond due date is only approximately INR4,500 crores and more or — we will — I think by 31st March also it will remain like that only. And total outstanding will be within the 45 days.

Anupam Goswami — B&K Securities — Analyst

And sir last question on the capacity addition on ’23 and ’24, how much could be brownfield and how much would be greenfield on the thermal side?

Unidentified Speaker —

I will be all brownfield.

Unidentified Speaker —

We have stopped going for greenfield projects. Whatever expansion we’ll go for, these are all will be brownfield and where we don’t need to go for fresh land acquisition. We have water availability and we have also grid connectivity available.

Anupam Goswami — B&K Securities — Analyst

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

Operator

[Operator Instructions] The next question is from the line of Atul Tiwari from Citi. Please go ahead.

Atul Tiwari — Citi — Analyst

Yes, thanks a lot. Sir, what will be the regulatory equity at the end of third quarter?

Anil Kumar Gautam — Director, Finance

It is INR70453 crores.

Atul Tiwari — Citi — Analyst

Okay. INR70430 crores. And sir you mentioned about…

Anil Kumar Gautam — Director, Finance

70453.

Atul Tiwari — Citi — Analyst

Okay, 70453, okay, sir. And sir what was the total amount of dividends received from subsidiaries and JVs in the quarter, INR600 odd crores right? I mean, I didn’t get that number correctly, can you please repeat that.

Anil Kumar Gautam — Director, Finance

It is October to December quarter is it is INR631 crores.

Atul Tiwari — Citi — Analyst

And what was it last year in the same quarter?

Anil Kumar Gautam — Director, Finance

Last year was only INR7 crores.

Atul Tiwari — Citi — Analyst

Okay. So, sir, I mean, if I exclude the dividend from the other income of both the last year and this year, it looks like other income has come off quite meaningfully year-on-year. So what will be the reasons for that?

Anil Kumar Gautam — Director, Finance

There is a reduction surcharge amount.

Atul Tiwari — Citi — Analyst

Okay, okay. And sir broadly speaking I mean, if I kind of reduce the prior period sales of INR600 odd crores and the dividend from subsidiaries of INR600 odd crores, it looks like that the recurring part has declined year-on-year. Is that a right understanding or is there some other one-off items which I missing here?

Anil Kumar Gautam — Director, Finance

No, it has not declined. This, I think you are good going towards the adjusted PAT numbers. So, I think Aditya would be giving you separate.

Atul Tiwari — Citi — Analyst

Okay, sir. Okay. We will wait for it. Thank you.

Operator

Thank you. The next question is from the line of Rahul Modi from ICICI Securities. Please go ahead.

Rahul Modi — ICICI Securities — Analyst

Thank you. And big congratulations for a great set of numbers. So it’s just a couple of questions I had. So, sir, where are we in the process of moving g Nabinagar and Kanti into the standalone entity we were looking to do that. When do we expect to conclude that?

Anil Kumar Gautam — Director, Finance

Actually that issue is pending in the MCA. We are — we were thinking that this process will be completed by 31st March but probably this will go up to June.

Rahul Modi — ICICI Securities — Analyst

Sir, my second question is, sir, in the — we won and you be older tender is also in the renewable space, obviously, there has been a significant increase in the module prices. So are we facing any delays or cost overruns on that account or we are fairly confident that the delivery will be met on schedule and on the contracted price?

Unidentified Speaker —

There are definitely delays because not only because of the increase in module prices but also on account of COVID and all, but we don’t expect any price increase because mostly these are fixed priced contracts and if there is any change that is mainly on account of change in process.

Rahul Modi — ICICI Securities — Analyst

Right. And sir this CPSU tender what is the progress there the 2 gigawatt that we had 1?

Anil Kumar Gautam — Director, Finance

On the CPSU tender for 2 gigawatt we’ve already signed the power purchase agreements for 1000 megawatts and we hope to start work on that by the end of March. And for balance capacity also we hope to start work in another six months or so.

Rahul Modi — ICICI Securities — Analyst

Right. So, sir in the — so in this we are — in this 2 gigawatt we will have to procure modules locally from this is under DCR?

Anil Kumar Gautam — Director, Finance

Yes, it is under DCR. So the sales and modules have to procure from domestic, which is why the time given is also slightly longer by the government under the difficulty.

Rahul Modi — ICICI Securities — Analyst

Right, note. And sir what are the tenders you are expecting to see in the market, any quantification on that in the both in renewables overall over the next 12 months?

Anil Kumar Gautam — Director, Finance

I am not very clear what you want to know. If you want the tenders which we plan to…

Rahul Modi — ICICI Securities — Analyst

Tenders which we are expecting, quantum of tenders which are expecting to — you will be participating in the bid.

Unidentified Speaker —

So, that’s very rough numbers. They might be coming of the tenders of close to 10 gigawatts in the next six months. So that’s all based on information not available within.

Rahul Modi — ICICI Securities — Analyst

So thank you and all the best. Very helpful. Thank you.

Operator

Thank you. The next question from the line of Sumit Kishore from Axis Capital. Please go ahead.

Sumit Kishore — Axis Capital — Analyst

Thanks for the opportunity and congrats on a good set of numbers. My first question is what is the total commercial capacity which has completed 25-year PPA period currently and how much of this capacity has extension of PPA? And also if you could clarify what is the current status on the Dadri PPA with BFPS and Tata given the news flow that we are seeing in media.

Unidentified Speaker —

Total by March ’22 I think around 14,000 megawatt will complete 25 year. What is the second question.

Unidentified Speaker —

Update about Dadri.

Sumit Kishore — Axis Capital — Analyst

And for the 14 gigawatt has the EPA being extended and for what duration?

Anil Kumar Gautam — Director, Finance

Look PPA is already there. All PPAs is 14 gigawatt as far as we are concerned it is only a perpetual PPA, so there is no exit clause from this PPA. It is only that government has come out with the guideline by virtue of that guideline that DISCOM can exit from the PPA, if they are following that guideline. Otherwise, there is no clause in the PPA to exit after 25 years.

Sumit Kishore — Axis Capital — Analyst

Sure. On the Dadri.

Unidentified Speaker —

Yeah, Dadri I think this Delhi DISCOM they approach CERC and CERC has given order that they can exit subject to that government reallocate that power because as far as we are concerned this government under their sovereign power they are allocating this power. Our PPA does not talking about any megawatt. It is only — this allocation is done by Government of India. So they have challenged, all of the DISCOMs they challenged it in that they have built so that hearing is complete. So order is expected any time. And another DISCOM went to Delhi High Court for redressal of this issue that was rejected by Delhi High Court. So, again that DISCOM has also landed up APTEL.

Sumit Kishore — Axis Capital — Analyst

Okay. But you mentioned that for Muzaffarpur a couple of 110 megawatt unit the board has approved for shut down. In the next five years what is expected for shut down as far as thermal units are concerned?

Unidentified Speaker —

We have in Tanda four units 110 megawatt and in Barauni two units 110 megawatts. So, these are the only units which which we are considering for shut down but other 210 megawatt units would be running there if required with proper R&M.

Sumit Kishore — Axis Capital — Analyst

Okay. Finally, what was the late payment surcharge for Q3 and the nine-month period?

Anil Kumar Gautam — Director, Finance

Yeah. For the nine-month period it is INR1695 crores in the April to December ’20 and corresponding current period it is INR593 crores. If you go through the quarter, October to December ’20 is INR565 crores and October to December ’21 it is INR173 crores.

Sumit Kishore — Axis Capital — Analyst

Okay. Finally, one bookkeeping question, what is the addition to regulated equity base from the commissioned captive coal mine. So, is there any regulated income that you’re earning on the [Technical Issues] where we project is commissioned for some time now.

Unidentified Speaker —

Yeah, yeah, we are earning, but I think right now readily this figure is not available with me. You can obtain in this, from this from Mr. Aditya Dar.

Sumit Kishore — Axis Capital — Analyst

14%, ROE. Thank you and wish you all the best.

Operator

Thank you. Ladies and gentlemen, due to time constraints that was the last question for today. I now hand the conference over to Mr. Harshvardhan Dole for closing comments.

Harshvardhan Dole — Power Analyst-Institutional Equities

Thank you, Margaret. I sincerely like to thank NTPC management for explaining the results in detail and taking the Q&A. I also like to thank the management for giving us an opportunity to host the call. And ladies and gentlemen thank you very much for attending this call. Sir, any last comments which you would like to make.

Anil Kumar Gautam — Director, Finance

No, no, thank you very much Harsh and you people should be very happy that this time we have announced a very good dividend. And NTPC I can only say that we will continue to perform better.

Unidentified Speaker —

Yeah. We are on a growth path and we are showing results. So, market should cheer up.

Operator

[Operator Closing Remarks]