Ladies and gentlemen, good day and welcome to the Nava Ltd Q4 and FY25 Earnings Conference Call hosted by ICICI Securities Ltd. As a reminder, all participant lines will be in the listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing star then zero on your touch-tone phone. I now hand the conference over to Mr. Mohit Kumar from ICICI Securities. Thank you, and over to you, sir.
Hello, moderator. Call has got disconnected.
Hello, sir?
Moderator, call has got disconnected from the management side. Please.
All right. I'll connect.
Reconnect, yeah. Please.
All right, sir.
They are connecting it.
This is the time we will come, and we'll get the participant list.
Hello, Mod sir?
Yeah.
Yeah.
Sure, sure, sure. Actually, I'm on a call, right? Can I just keep calling 20 minutes? Yeah, sure.
Hello.
Hello, Mod sir. Yeah.
Yeah. Should we start now, sir?
Yeah, please.
Please start.
So, shall I begin from the beginning?
Sorry?
Yes, yes, yes. Please, moderator, please.
All right, sir. All right. Ladies and gentlemen, good day and welcome to the Nava Ltd Q4 and FY25 Earnings Conference Call hosted by ICICI Securities Ltd. As a reminder, all participant lines will be in the listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing star then zero on your touch-tone phone. I now hand the conference over to Mr. Mohit Kumar from ICICI Securities. Thank you, and over to you, sir.
Yeah. Thank you, Shruti. Good evening. On behalf of ICICI Securities, I welcome you all to the Q4 FY25 Earnings Call of Nava Ltd. Today, we have with us from the management, Mr. Ashwin Devineni, CEO, Mr. G.R.K Prasad, Executive Director, Mr. Nikhil Devineni, Executive Director, Mr. K.V.S. Bhatter, CFO, and Mr. V.S.N. Raju, Company Secretary. We'll begin with your remarks for the management, which will be followed by Q&A. Thank you, and over to you, sir.
Thank you. Good evening, everyone, and thank you for joining Nava Ltd's earnings call for the fourth quarter and the full year ended March 31st, 2025. We appreciate your continued interest and support. For FY25, Nava Group delivered multiple milestones. Our consolidated revenue was INR 4,135 crores at a year-on-year growth of 4.6% and a PAT of Rs 1,434 crores. Our revenue and profit for the year are the highest ever. All our major segments, metals, mining, and energy, have shown robust growth as compared to last year. Our power business has significantly turned around and contributed to the improvement in the profit in FY25. We have also seen significant improvement in MCL receivables position. Post the close of the financial year, MCL received $55 million, which has helped it repay its shareholder loan in full to the sponsor.
With an objective to improve shareholder value, we completed two corporate actions during the last financial year: a stock split in quarter three and a share buyback for INR 360 crores in quarter four. In addition to these, we continue to maintain our dividend distribution at a healthy rate. Our new projects under Maamba Solar, Nava Avocado, and Kawambwa Sugar are showing encouraging progress. We are progressing on a robust cash and capital allocation plan, which sufficiently meets our expansion objectives. We remain committed to optimizing costs, improving efficiencies, and driving strategic investments to create value for all stakeholders. With that, let's dive into the specifics of our financial performance as I open the floor for any questions you may have. Thank you.
Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on their touch-tone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking a question. Ladies and gentlemen, in order to ensure that the management is able to address questions from all the participants, please limit your questions to per participant. Ladies and gentlemen, we'll wait for a moment while the question queue assembles. The first question is from the line of A.M. Lodha from Sanmati Consultants. You may proceed.
Good afternoon, gentlemen.
Hello.
Good afternoon, sir. Congratulations. Good set of numbers, sir. I have got two questions, sir. Number one is relating to your tax provision. Your tax provision in standalone is 27. I am talking of this quarter, sir. Tax provision of INR 27.44 crore in quarter four is standalone. Whereas in consolidated, I found its tax provision is only INR 6.39 crore. According to me, your tax exemption in MCL should have been expired in December 2024. So in March quarter 2025, the MCL would have been eligible to pay 50% of the eligible tax, that is the rate of 35% in MCL. So please, number one question, you please clarify this position. Number two, reversal. You reversed back some INR 47.52 crore out of the earlier provision made for the credit loss.
So I wanted to know how much amount is still pending to be returned on the amount when the amount will be received from the MCL for the areas. This is the two questions, sir.
Yeah. So from this perspective, we still have $105 million, which is pending to be collected. And the corresponding ECL provision that is existing in the books is $16.8 million. On the tax rate, quarter four for the consolidated, the tax expense is INR 21 crore. That's for the financial statement. And the MCL tax exemption that you have said, that tax exemption continues till the end of financial year 2026. And only after that, we get into the next regime of 50% tax exemption for three years. And after that, 100% beyond that. So we are still in the tax exemption for MCL, even for the next financial year.
100% tax exemption for next financial year?
Yes, that's it.
It was five years from the date of commencement of the business.
From the date of commencement of the taxable income.
From the date of commencement of?
Taxable income, that is after adjusting the investment element, the taxable income comes in, so we have two more years to go. I mean, this year and next year. Next year. We will have it up to end of financial year 2026.
Okay, sir. Thank you very much. I will rejoin that queue.
Thank you. The next question is from the line of Sri Krish Agarwal, an investor. You may proceed.
Good afternoon, gentlemen. My questions have been answered, so please go ahead.
The next question is from the line of Nidhi Shah, from ICICI Securities. You may proceed.
Yes. Thank you so much for taking my questions. So firstly, on the solar power plant at Maamba, I wanted to know what was the, sorry, what is the cost of that plant? And at the same time, do we have a tie-up for Q1 for that 150 megawatt or not?
Sorry. Your first question was on the total cost of the solar, so the project cost that we have at Nava Solar is $90 million. $63 million would come in the form of debt, and $27 million would come in the form of equity. What was your second question?
So, on the MCL, the 150-megawatt power plant, I wanted to know if we have a tie-up for Q1 for that?
Yeah. I think for the 150 megawatts, we have been looking at entering into short-term bilateral contracts, of which we have a commitment until September.
All right. Lastly, I wanted to know what is the update on the construction progress of the 300-megawatt expansion?
Yes. Progressing well. I think we're still sticking to the original schedule of commissioning in August 2026.
All right. So I'll get back to the Q&A for further questions. Thank you.
Thank you. The next question is from the line of Viraj Mahadevia from MoneyGrow. You may proceed.
Hello. Hi. Hi, Ashwin. Congratulations on the shareholder value-enhancing measures. The $7.5 per kilowatt-hour for the new plant is lower than the old plant. Is that correct? And if you can throw some light on that.
Yeah. No. So the tariff for solar is actually 7.8. That's the tariff that we have negotiated. That kind of escalates from year on year. Yes, it's less than, I mean, the tariff they're getting for the coal-fired power plant, which is normal.
Okay, so then 7.5 is for the solar, is it? Zambia Solar.
Yeah. 7.8.
Okay.
It's for Zambia Solar.
The second 300 megawatt, is this similar to the first thermal tariff? 9 point something?
Yeah. No. The tariff for the Phase Two 300 megawatts is $0.095. It starts at $0.095, and then year on year, there's a slight escalation.
Understood. Understood. And you mentioned the target timeline for Zambia Power is August 26. How about the sugar plant and the avocado plantation? When will they start contributing to revenues?
In terms of avocado, we should actually get our first commercial fruit. It will come in a small way, in a very phased manner, because as the trees grow, you get your fruit. When we started in a small area of the PX area, that should start fruiting, and we should get our first commercial crop by the end of this year. That will be in a small quantity. In terms of the sugar, March 28 is what we're looking at.
Okay.
The commission. Yeah.
Understood. And the last question is the balance, $100 million due from Zambia, when is that likely to come through for the arbitration award? Can we expect it by September quarter?
I wish. So we're in constant discussions with the ZESCO. They've done a great job in terms of at least paying us what they've paid us to date. We forecast by the end of this financial year, we should get the remainder of the amount.
Okay. So what is your net debt then as of March 25? What is the net debt overall at consolidated level?
I'm sorry. Can you repeat that?
Sorry. What is the net debt of Nava at the consolidated level as of March 25 prior to this $55 million?
55 million receivable. It doesn't appear as a debt.
No, no, no. I'm saying prior to receiving the $55 million, which came in April for your press release, as of March 25, what is the net debt at the consolidated level?
61.
How much?
You're asking about Nava's debt, right? Consolidated.
Nava's consolidated net debt, yes.
Phase Two, right? Yeah. So apart from the Phase Two, which is the 300 megawatts in Maamba, where we have a current debt of about $94 million, we don't have any other debt at the Nava level.
Understood. So that's the only debt, the sole $100 million.
Yeah, and by the way, the Phase Two debt is non-recourse.
Understood. But presumably, that'll also get net off in Q1 with the 55 million that's come in in April, right? So technically.
55 million has nothing to do with it. 55 million is all. You could actually consider net debt being zero in the sense that the cash balance has much more net debt that's drawn for phase two.
Okay. Okay. Understood. Thank you. All the best.
Thank you. The next question is from the line of Anant from CIL. You may proceed.
Sir, congratulations on the wonderful set of numbers. The first question is that, do you have any tax concessions on the phase two of the project, sir?
At this point, it is not there, but we would probably go for that kind of a tax relief once the plant is commissioned. This actually will get taken in about three to four years from the date of commissioning, post the investment element being absorbed by the company.
Okay. Okay, sir. Also, how many years of the PPA project?
The PPA is for 20 years.
How many years is remaining, sir?
You're talking about phase one?
Phase one, yes.
The Phase One PPA started in 2016 for 20 years, so we still have four years to go.
Okay. And sir, what's the deadline for the solar plant that we have set internally? If you can.
Sorry, can you repeat yourself?
So what kind of a deadline are we looking at for the solar power plant that we're going to set up?
Yeah, so we're looking at commissioning it possibly by July 26.
Okay. Okay, sir. I'll come back in a queue for further questions. Thank you.
Thank you. The next question is from the line of Vijay Kedia, an individual investor.
Good afternoon. I hope I am audible. I'll begin with congratulating Mr. Ashwin Devineni on his elevation as the Managing Director of the company and Mr. Nikhil Devineni to join the board as Executive Director. My first question is for Mr. Ashwin Devineni. The press release was silent on the 300-megawatt power plant expansion, but then people have asked the questions already, and most of my queries are answered. There is no mention about the Ivory Coast project of manganese mine and the ferroalloys plant and the further concessions received in Zambia for critical minerals, etc., and iron ore. Could you please elaborate on that?
Yeah. So I think I'll let Nikhil answer the Ivory Coast question. But if I understand you correctly, your question on the expansion, you don't have any right now, right? It has been answered?
No, I was saying the expansion was not referred to in the press release, but then people have already answered, you already answered the questions that I had about the timeline, about the completion schedule, etc., which we confirmed that it will be August 26.
Yeah. So on the Ivory Coast, as we've disclosed, the plan is to set up a 52.5 MVA furnace to start with as phase one, producing about 40,000 tons of silico manganese per annum. And this would be coupled with a captive power plant via biomass generation of about 25 megawatts. Now, this entire project essentially hinges on two main factors. One is raw material security, and the second is acquiring the land. Now, on the raw material security, we have been allocated two mines, one which was already explored for a period of two years, and we concluded that in terms of taking it forward with respect to commercial mining, it is not a viable prospect. The second mine, which is in the northern part of Ivory Coast, is about 360 sq km, out of which about 27 has been shortlisted as a prospective zone.
So the final geophysical studies are ongoing as we speak, and I think in about six months to a year, we should have a clearer picture in terms of how the potential is. With respect to the land, we are working very closely with the government of Côte d'Ivoire. I think in about three months, we should have a clear update. Yeah.
Yeah. The second one was the question about the mining concessions in Zambia for critical minerals and iron ore.
Yeah. So I mean, there were two basically that we have disclosed previously. One was with regards to the magnetite, the iron ore. We had conducted extensive exploration activities, including drilling, and what we found was while the grade of the magnetite was very favorable on top, as we kind of went down, it started to go down in terms of quality. And we finally concluded that the commercial viability in terms of mining probably wasn't there. So we decided to take a halt on further activities at the iron ore of the magnetite mine. Whereas on the lithium, exploration activities are currently underway. We're looking on two concessions of lithium spanning about 11,000 hectares. So it's quite a large piece of land, and exploration activities are currently underway.
My second question is for Mr. Nikhil Devineni. I believe that he is now looking after the ferroalloys business in India. The ferroalloys business has been at a nearly standstill for the last many, many years. Do you have any plans to grow in ferroalloys' business in India?
So when you say standstill, I assume you're talking about in terms of.
No, what I'm talking about is the capacity. The capacity growth, and the capacity is always underutilized.
No, I would not say underutilized because if you look at our plant load factors over the last couple of years, yeah, it's close to near optimum level, barring the unplanned shutdowns that we've had in a couple of instances, but in terms of expanding the production, it really does not make sense at this juncture, given that there is a massive oversupply of material in the market. I think the only time we would seriously consider an expansion within India is probably once we get our hands on the raw material source because today that contributes about 40% of your entire costing, and if we do not have our own raw material source, we are essentially devoid of any competitive advantage, so given today's market, it really doesn't make sense to expand without having that.
Questions?
Sorry?
Thank you very much. I have no further questions.
Thank you.
Thank you. The next question is a follow-up question by A.M. Lodha from Sanmati Consultants. You may proceed.
Hello. Sir, I have got two questions. One is relating to your maintenance shutdown for MCL, which happens to be every two years. When it is the next due, sir?
No. So we have two shutdowns annually. So we take one half-yearly, which spans across 15 days per unit. And then we have a major shutdown, which spans once every four years. And that shutdown, we are probably going to be taking during the early part of 2027.
2027. Okay. The second question is, sir, other income in standalone has jumped from 79 crore to 188 crore. What is the component that increased by 100 crore, sir? Other income in standalone business jumped from 79 crore to 188 crore. So there is almost a jump of 110 crore.
Yeah. In Standalone, other income also constitutes the dividend from the subsidiaries. So in the last financial year, we have received dividends from two subsidiaries. So for Standalone, it is shown as other income. So two dividends together is INR 110 crore.
Okay, sir. Thank you.
Thank you. The next question is from the line of Radha from B&K Securities. You may proceed.
Hello, sir. Thank you for the opportunity. I wanted to thank you for the buyback and high dividend payment. My first question was, until the commissioning of phase two of Zambia, which is expected to be in the first half of FY 27, is there any incremental earnings growth driver for the company as tax also is expected to increase to 15% because of the expiry of tax holiday? Hence, wanted to know your thoughts on the earnings growth for the near term.
Just to clarify on the tax holidays, as we also mentioned this previously in the call, the tax holiday will continue till the end of financial year 2026, post which we will get into the second slab of 50% exemption for the next three years.
So FY 26 can be continued when FY 27, like you had previously mentioned, first two years, 75% exempt?
Yeah. From FY 2027 onwards, it will be 50% exempt for three years.
Got it, and, sir, a bit more on the earnings growth driver for the near term?
Yeah. I think on the standalone level, in terms of Ferroalloys division, we foresee a better scenario for FY 26 than for FY 25, mainly because we are seeing that the product diversification into ferro silicon is helping out as the demand in the U.S., particularly, is increasing. And moreover, our dependence on the Japanese market has increased over the course of FY 26, which provides a reasonably better margin than, say, domestic sales or export to any other country. So on these two counts, we foresee that the Ferroalloys division is more encouraging for FY 26. Now, coming to the power sector too, as I mentioned earlier, I think most of about 60% of our power capacity is already committed up until September through the short-term bilateral contracts. The remaining 40% also has been committed until July. So we have some good visibility in that sense.
Besides that, in terms of reducing our cost of generation, which allows us to participate more in these tenders, we have done a diversification of coal procurement from what was existing to many other sources, which has reduced the net fuel cost. And furthermore, to add to that, I think you all must be aware that the final approval for Odisha to convert the 60-megawatt CPP into IPP has just come through. This would enable that particular unit to run at a much higher PLF than we've seen in the last year. So all these things put together, we see an increasing upside in terms of FY26.
Sir, just a bit on the ferroalloys division. So in the previous call, you had mentioned that you have low-cost inventory, that'll last till September 2025. So on the basis of that, since the ferroalloy product prices are increasing, so I had assumed that the spreads would have improved in this quarter, and I expected a sharp jump on a QOQ basis in terms of EBIT for the ferroalloys division, which did not happen. So please give us some understanding as to how to see these numbers. And from the volume perspective, how much growth are you expecting from the ferroalloys division in FY 26?
Let's see. The market for ferro alloys is an extremely volatile one, so I can't put an exact number in terms of what the growth prospects are, but as you rightly pointed out, we are sitting on fairly low-cost inventory compared to where the market is today. That is definitely providing us with some cushion despite falling prices, but like I said, right now, our main focus is not in terms of domestic sales, where there's a lot of supply overhang, but we are focusing more in terms of niche products in markets like Japan, where there is a reasonable margin to be made.
Okay, sir.
Sorry to interrupt, Ms. Radha. We may request you to return to the question queue again for your follow-up question as there are several other participants waiting for your turn.
Thank you, ma'am. Thank you, sir.
Thank you. Thank you. The next question is from the line of Sri Gopal Kankani from SG Kankani & Associates.
Good afternoon, sir. My question is that in spite of energy revenue operations almost constant in March quarter as compared to December fourth quarter, 24th quarter, the profit has come down from INR 51 crore to INR 296 crore in March quarter. What is the main reason, sir? Hello?
Yeah. We're getting back to you. Just one second.
Okay.
So you're referring to the Maamba reduction in profitability?
No, no, no. I am referring to the consolidated financial statements when in the segment revenue, if you see the consolidated account, consolidated revenue from energy operations is almost constant in March 2025 quarter, 834 crore as compared to 833 crore in December 2024 quarter. While the energy revenue is almost same as compared to previous quarter. However, if you see the consolidated financial statements, the profit has come down to 296 crore as compared to 351 crore in December quarter. So what is the major reason for decline in profitability in spite of energy operations revenue almost same?
So at consolidated level, if you see the slight drift that we have quarter on quarter, that is mainly due to our MCL plants being on a shutdown. So that's the reason why the revenue quarter on quarter has also dropped by close to $10 million. And.
No, no, sir. Sir, revenue is almost at the same level. In December 2024, it was INR 833 crore, and in March 2025, it is INR 834 crore. However, there is significant decline in the profitability.
Yes, sir. We get that. We just referred to the slide you referred to.
Okay. And my second question is one more question. If you see the cash flow from investing activity, an amount of INR 1,325 crore is towards investments made during the year. And if you see the capital work in progress, there is an increase of just around INR 475 crore. So where the balance amount has been deployed, sir, actually? Could I repeat again my question, sir?
Sorry, can you repeat the question?
Yes, yes. I am repeating. If you see the cash flow from investing activity, it shows that an amount of INR 1,325 crore has been deployed towards investments made during the year 2024-25. But if you see the capital work in progress, there is an increase of around INR 475 crore only during the year. So when you have invested around INR 1,325 crore, but the amount has been deployed towards capital work in progress is only increased amount is INR 475 crore only. So I think when you have shown investments, apart from capital work in progress, is there any other investments also made during the year, sir?
So the other investments are mainly in the form of equity investment. So anything which is more than one year in terms of the maturity, it goes into the investment category. So the part of it is the capital work in progress. The other part is in the long-term investments.
Okay. So just I wanted to know what are the other long-term investments because INR 1,325 is the investments, and out of this INR 1,325, only around INR 475 has been deployed in capital work in progress, perhaps with the expansion of our plants. So where are the other investments made, sir, actually?
These are investments in bonds and other sectors which are beyond one year.
Okay, sir. I am waiting for your reply, sir, to my first question regarding decline in profitability in March quarter in spite of energy operations almost at the constant level.
Yeah. We'll get back to you. We'll get back to you. We'll take the next question.
Okay, sir. Okay, sir.
Thank you. The next question is a follow-up question from Mr. Viraj Mahadevia from MoneyGrow.
Sorry, nothing from my side. I'm good. Thank you.
Before we take the next question, ladies and gentlemen, in order to ensure that the management is able to address questions from all the participants in the conference, please limit your questions to two participants.
Yeah. Just a follow-up on the previous participant. He had asked about Mr. Kankani. Yeah. Mr. Kankani had asked about the drop in profit from the energy segment, though the revenue is same. So from a revenue perspective, as I mentioned, the MEL revenue has dropped quarter on quarter, where it has been made up by the other energy-generating units here in India. Net net, the revenue is stable quarter on quarter. But when it goes to profitability, the profitability of Maamba is much higher than the ones in India. Therefore, there is a drop in the profitability from the quarter on quarter perspective.
Thank you. The next question is from the line of Faisal Hawa from H.G. Hawa. You may proceed.
Sir, there was an announcement that we are getting into lithium mining also in one of the African countries. Is there any progress on that, and would it make a material difference to the balance sheet and the profit and loss of the company in the future?
No. So we basically are exploring lithium concessions that we have been granted. We meaning MCL has been granted. We have about 11,000 hectares that have been granted. So exploration activities for lithium are currently underway. So it's at a very early stage right now to finalize any future plan in terms of what our involvement would be.
Which country is this in?
Zambia. It's a subsidiary of Maamba.
So is there a fair chance that there could be a good amount of lithium in that area?
I wish I could answer that. If I could answer that, we wouldn't need to do any exploration activity. So the whole point of exploring is to figure out what the quality of the lithium in the concession is and if it's commercially viable to mine.
Sir, with the cost of solar falling so dramatically, are any of these African governments also encouraging you to put up solar plants and successfully giving them the power?
Yeah. So I mean, the current initiative we've taken, which is the 100-megawatt solar plant, was encouraged by the government, and hence we closed the power purchase agreement also at an attractive tariff. So there is encouragement from Zambia and other African countries for companies to put up solar plants.
Sir, if you could give some kind of a vision for the next two to three years, so where do we see our revenue and profitability for the next three to four years? Particularly in light of the recent buyback that we did in absolutely adverse market conditions, which I would really congratulate the management. We were among only two or three companies which did buyback during that time. How do you see the next two to three years panning out in terms of revenue and profitability?
I think we currently have a very strong ongoing operational base, both standalone and internationally. I think we would see all the current operating assets that we have performing well in the next two to three years. Apart from that, I think you would start seeing some added revenue from the projects that are currently underway, which the solar we're looking at commissioning by July 2026. The expansion of 300 megawatts, we're looking at commissioning in August 2026. We are hungry as the avocado will start generating some revenue at least at the end of this year. Also, we see some progress taking place on the Ivory Coast level. I think with all these in the next two to three years, yeah, the future looks good.
Thanks a lot. I appreciate your answering my questions.
Thank you. Ladies and gentlemen, in order to ensure that the management is able to address questions from all the participants in the conference, please limit your questions to two per participant. The next question is from the line of Anant from CIL. You may proceed.
Hello, sir. Thank you for taking my question again. There is a target that you have put in one of the presentations I was reading that we're going to increase the sales of coal mine from 40,000 tons in 12-15 months. So what kind of sales are we targeting? And what is the capacity of the mine, sir? And will this mine be able to suffice the coal requirement for Phase Two of the power plant?
Yeah. So in terms of supplying coal for Phase Two, definitely, because we wouldn't have started with the Phase Two project if we didn't have the coal for the fuel security. We have a very large concession area, and we have ample coal for both Phase One, Phase Two, possibly even Phase Three, and any amount of outside sales. With regards to any specific target for external sales, we are essentially targeting about 35,000 tons on a monthly basis. Today, we have other competing coal mines. So there are challenges that are involved, but as far as our external sales are concerned, we are doing fairly well. But if you look at the target, it's about 35,000-40,000 per month.
Okay. Okay, sir, and, sir, so you talked about converting your power plants to IPP, so will that not reduce the alloy production because you are converting your power to and you're selling it to the grid?
It won't because right now in Orissa, we have two furnaces which require a maximum of about 30 megawatts. So that will remain intact. The additional 60, which is also under captive right now, is now being transferred to IPP. So there won't be any change to the ferro alloy operations.
Okay. Okay. Thank you, sir. Thank you.
Thank you. The next question is from the line of Raghav from B&K Securities. You may proceed.
Hi, sir. Thanks again. So for the 100-megawatt solar plant in Zambia, could you highlight whether the terms and conditions will be similar to Phase Two of the Zambia power plant and whether any tax benefits will be there? When will it be commissioned, and what is the expected PLF in this plant?
Yeah. So I mean, in terms of the commissioning of the plant and all, I think I repeated myself multiple times during this call. We're going to be commissioning in July 2020. I mean, we're planning on at least the date is July 2026. This is a solar plant, and the other plant is a coal plant. So there are certain similarities, and there are certain differences in the terms and conditions that we negotiate with the government.
PLF, sir?
I'm sorry?
PLF? What PLF are you expecting from solar plant?
It's too early to say. Right now, we've not narrowed down on the panel manufacturers that are currently underway and under discussions in the EPC. But I think the PLF we are targeting is about 20%-22%.
Okay. Sir, so secondly, currently, we have a net debt of about INR 580 crore. So what is the peak debt that we are expecting considering the future CapEx plan? And overall, what is the CapEx, if you could highlight for the next two to three years per year?
Sorry, can you repeat your question, please? Is it about CapEx plan?
Yeah, yeah, yeah. Yes, sir. Yes, sir. What is the peak debt that you are expecting for the next two to three years, and what is the per-year CapEx plan for the same?
So building and maintenance CapEx is generally around $25 million per year, and these are consolidated numbers. This is only.
Ladies and gentlemen, the management's line got disconnected. We'll connect them. Ladies and gentlemen, we have the management on the line again.
Hello, sir?
Yeah. We can hear you.
Yes, sir. You were telling about the maintenance that is being $25 million per year, which we lost you.
Yeah, that's right.
Yes, sir. I had asked about peak debt and CapEx plan for the next two to three years.
So this is the CapEx plan for the next. This is the maintenance CapEx that we have, and we also have the expansion projects which have been explained during the course of the call.
What is the peak debt you are expecting, sir?
Sorry?
Peak debt to fund the CapEx.
Debt should be around, yeah, $250 million-$300 million, taking all the expansion projects together.
Okay. When do you expect to take?
Okay. I think he's closing the line.
Thank you. Due to time constraints, that was the last question. I now hand the conference over to the management for closing comments.
As we conclude, I would like to reiterate that Nava Ltd, which remains focused on maintaining operational excellence, delivering value to our shareholders. We're optimistic about our future growth prospects and will continue to strengthen our position in our key business sectors. Thank you for your time today, and we look forward to your continued support.
Thank you. On behalf of ICICI Securities Ltd, that concludes this conference. Thank you for joining us, and you may now disconnect your lines.