Ladies and gentlemen, good day, and welcome to NLC India Q1 FY 2025 earnings conference call, hosted by Dam Capital Advisors Limited. As a reminder, all participant lines will be in the listen-only mode, and there will be an opportunity for you to ask questions after the presentation conclude. Should you need assistance during the conference call, please signal an operator by pressing star then zero on your touchtone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Prateek Singh from Dam Capital Advisors Limited. Thank you, and over to you, Mr. Singh.
Thanks, Manav. Good evening. On behalf of Dam Capital Advisors, I would like to welcome you all to the Q1 FY 2025 earnings call of NLC India. Today, we have with us C. M. Prasanna Kumar, Chairman and Managing Director of NLC. The call will begin with brief remarks by CMD, sir, after which we'll open the lines for the Q&A. Before we begin, we must remind you that the discussion on today's call may include certain forward-looking statements, and hence should be viewed in conjunction with the risks that the company may face. I would now like to hand over the line to CMD, sir, for his opening remarks. Thanks, and over to you, sir.
Thank you, Prateek Ji, for the introduction, and a warm thank you to Dam Capital for hosting this investor conference call. I also want to extend my gratitude to all the participants for your interest in NLCIL and to our investors for your unwavering support. At the outset, I wish all my investors on the occasion of 78th Independence Day of our great nation. Today, I am happy to engage with NLCIL shareholders and address any questions you might have regarding our financial results for the quarter ending June 30, 2024, as well as provide updates on our capacity addition program. Your involvement and feedback are invaluable to us, and I look forward to a productive discussion. I, Prasanna Kumar Motupalli, Chairman and Managing Director of NLC India Limited, and joining with me is Dr. Ratan Kumar Acharya, Director of Finance, along with other senior management of the company. Before the interaction, I would like to brief on the highlights and performance of NLCIL during the quarter ended 30th June 2024. The major highlights during quarter 1 of 2024-2025 are: NLCIL emerged as a successful bidder for Machhakata revised coal block Odisha of 30 million tons per annum capacity under commercial auction. This is the second commercial mine won by NLCIL through competitive bidding process. Approval of Government of India received for implementation of Pachwara South coal block project at Jharkhand State by NUPPL at an estimated cost of INR 2,242.90 crore. MoU signed with M/s DVC for supply of 2 million metric tons of coal from Talabira two and three mines.
Consent to operate and product approval for ODP expansion plant of Mine- 1A was obtained from Government of Tamil Nadu. Biomass co-firing on trial basis was successfully started at Barsingsar Lignite-based CFBC Thermal Power Station. NLCIL is conferred with Best Exhibitor Award in coal category at the Mine Safety Award, MSA, 2024, organized by the All India Mine Safety Association under the aegis of DGMS. NLCIL is conferred with Best ESG Report Award for the integrated annual report for the financial year 2022-2023, in the 11th edition of the Original National Awards for Excellence. I was conferred with the Best CEO Corporate Management Innovative Excellence Award, 2023-2024, during the 24th Annual Geo Minetech International Symposium. Coming to the operational performance, the company has achieved 22.17% growth in lignite production during quarter one of financial year 2024-2025.
That is 61.67 lakh metric ton, compared to quarter 1 of financial year 2023-2024, that is 50.48 lakh metric ton. The company has raised its coal production to 28.46 lakh metric ton, which is 35.27% growth during quarter 1 of financial year 2024-2025, compared to previous period of 21.04 lakh metric ton. The company's power generation increased by 13.48% from 5,405.17 million units to 6,133.67 million units of quarter 1 of financial year 2023-2024, including renewable generation of 547.13 million units, as against 539.59 million units of quarter 1 of financial year 2023-2024.
The group power generation has increased by 10.38% from 6,843.42 million units to 7,554.08 million units of quarter one of financial year 2023-2024, including renewable generation of 547.13 million units. The company has achieved plant load factor... plant availability factor of all thermals at 73.56% in quarter one of financial year 2024-2025, compared to the corresponding previous period of financial year 2023-2024, of 62.63%....The company has achieved plant load factor, PLF, of thermals at 70.27% in Q1 of financial year 2024-2025, as compared to 61.20 in the quarter one of financial year 2023-2024.
Coming to the financial performance standalone, the profit after tax for the quarter ended 31st, 2024 is INR 495.98 crores, as against INR 331.02 crores in the corresponding period of the previous year, registering a growth of 49.83%. Profit before tax, PBT, for the quarter ended 31st, 2024 is INR 730.54 crores, as against INR 487.58 crores in the corresponding period of the previous year, registering a growth of 49.83%. EBITDA for the quarter ended 31st, 2024, is INR 1,221.86 crores, as against INR 1,028.47 crores in the corresponding period of the previous year, registering a growth of 18.80%.
The total income of the company for the quarter ended 30th June 2024 is INR 2,901.53 crores, as against INR 2,689.65 crores in the corresponding period of the previous year, registering a growth of 7.88%. Coming to the financial performance of consolidated, profit after tax of the group for the quarter ended 30th June 2024 is INR 566.69 crores, as against INR 413.57 crores in the corresponding period of quarter one of financial year 2023-2024, registering a growth of 37.02%.
Profit before tax of the group for the quarter ended thirtieth, 2024, is INR 821.66 crores, as against INR 613.53 crores in the corresponding period of the previous year, registering a growth of 33.92%. EBITDA for the group for the quarter ended 30th, 2024, is INR 1,444.38 crores, as against INR 1,305.80 crores in the corresponding period of the financial year 2023-2024, registering a growth of 10.61%.
The total income of the group for the quarter ended 30th, 2024, is INR 3,640.60 crores, as against INR 3,428.48 crores in the corresponding period of the previous year, registering a growth of 6.19%. I wholeheartedly thank all the investors for their support and encouragement all these years, facilitating outstanding performance of the company, and hope the same will continue in the future also. Thank you, all.
Sir, should we begin the question and answer session?
Yes, please.
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 touchtone 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, we'll wait for a moment while the question queue assembles. I remind you may press star and one to ask questions. We have our first question from the line of Mohit Kumar from ICICI Securities. Please go ahead.
Yes, thanks for the opportunity. So my first question is on the under recovery in the quarter on a standalone and consolidated basis?
Sorry, sorry, the question is not audible. Can you repeat the question, please?
Yes, yes, I'll try again, I'll try again. So what are the under recovery- in the quarter on a standalone and consolidated basis?
Okay. See, there is a reduction in the under recovery in the quarter one of financial year compared to last quarter. Last quarter, the total under recovery was around INR 261.88 crores. The current financial year... Sorry, the last financial year, the under recovery of the total group is INR 2,209 crores, whereas in the current quarter, it is INR 139.89 crores. And if standalone basis, NLCIL, last quarter of the first quarter of the last financial year, INR 183.71 crores, which reduced now to INR 123.86 crores.
Mm-hmm. Understood, sir. So what is the status of land acquisition for the mine at Neyveli? Is it still affecting our plant availability, and how soon we think we will be able to mitigate the entire, you know, under recovery?
During the last first and second quarter of the last financial year, the generation and lignite production got affected because of the non-availability of the land. With the support from the district administration, state government and central government, the issues were sorted out and the long-pending permanent diversion of the Paravanar River was done, and around 560 hectares of land was taken into possession. After that, our production levels reached to normal levels by January of this calendar year. The same is continuing. As on date, no generation loss on account of lignite production, and we are putting further efforts to take into possession of the lands for future requirements also. That activity is also in fast progression.
... Question is, sir, why it is still under recovery?
The under recovery, I think, as you know, the major portion of under recovery is in TPS-II expansion, where we are having some technical liability. So, already I, as I explained in earlier also, we are going for, we carried out the short-term modifications. With that, there is some improvement in the availability of the unit, but the problem will be solved once we carry out the long-term modification, for which the material is already procured from BHEL. And the activity we are going to start in the month of September. And once that is done, the availability of our TPS-II expansion units will improve substantially and the under recovery will reduce substantially.
Understood. My last question, sir: Can you please help us with the notes of account? Actually, there are a number of notes accounts, which seems to have impacted our profit. Is it possible to tell us what is for the past period, which is impacted in this quarter? I think cases like that, it has impacted our profit positively, and I wanted to figure out what is the adjusted PAT.
Actually, we could not understand. There is some... voice is not that clear.
My question is on the notes of accounts. There are number of note accounts which suggest that there is an impact for the past period in this particular quarter, and that's why profit was high. So is it possible to quantify that impact for the past period?
During the quarter, there were some orders in favor of NLCIL and some orders are unfavorable to NLCIL, but the net impact is hardly INR 21 crore only. Whatever increase in PAT is there, that is on account of increase in lignite production, coal production, and the power production. So, with because of regulators, the impact, the negative impact is only INR 21 crore.
Understood, sir. Understood, sir. Thank you, and all the best, sir. Thank you.
Thank you.
Thank you. We have our next question from the line of Aditya Welekar from Axis Securities. Please go ahead.
Yeah, thanks for the opportunity, sir. Sir, my question is on status on the commissioning of the first unit of Ghatampur Power Plant, and whether the other two units are on track for commissioning by November and March. And same for the timelines, if you can update us for Talabira Power Plant and TPS second expansion.
Okay. Despite the number of constraints, the unit one is on the verge of COD, and we are expecting it by end of this month or latest by 15th of September. We are going to declare the COD of the unit, and all the activities are in fast progress, and more than 3,000 people are working there on continuous basis for making it possible. And coming to the unit number two and unit number three, we are targeting to declare the COD by November 2024, unit number two, and March 2025, unit number three. So in the current financial year, we want to declare the COD of the entire station.
In line with this, the activities are progressing in the other units also, and we are hopeful that, before the target line, we will be able to declare the COD of the Ghatampur plant. The coal tie-up for this Ghatampur Thermal Power Station is also ensured. We got the bridge linkage from Government of India. Our Pachwara South coal block, which is linked mine to this new NUPPL, that is also will be starting its production from the month of January 2025 onwards. The coal, the fuel, security is also ensured for continuous running of the plant.
Understood, sir. Sir, any update on Talabira Power Plant and TPS- II E xpansion?
This Talabira Thermal Power Plant, as you know, in the month of February, we awarded the main plant package to BHEL. The majority of the main plant land is in our possession. Around 125 acres of land possession is set to be done. We are hopeful that in the month of September, that will be completed. BHEL has already started the project activities. The geotechnical survey is already on the verge of completion, and the borehole study also is completed 50%. BHEL mobilized the entire manpower, and things are moving very fast, and we are hopeful that the unit one will be commissioned in the month of July 2028. All actions are in place for that.
Coming to TPS-II expansion, we tenderized for 2 x 660 MW lignite-based power station, and we extended the tender date several times, but because of non-availability of technology, nobody was participating. The only bidder, BHEL, also expressed their inability to quote in this one because of non-availability of technology. So this was discussed with the Ministry of Power, and taking the guidance from them, now we are going for 2 x 700 MW at the same location. The feasibility report is under finalization. I think within the next 1 week to 10 days, that will be finalized. Then immediately we will go for tender and start the activities at the earliest.
Yeah, that's helpful, sir. So my second question is with respect to commercial coal mines of North Dhadu, and recently of Machhakata Coal Mine of Odisha. So any color you would like to state on how do you see the ramp up from these mines, how much you target, and when any commercial coal can be expected from these two mines?
See, for this North Dhadu project, the timeline given by government under commercial auction is 57 months. Whereas we are targeting to extract coal within 36 months. So all activities for facilitating coal extraction within 36 months are on. The GR is prepared, and the mine plan is also prepared, and we are going for the MDO contract for North Dhadu. So we are hopeful that within the 36-month period, we will start production from North Dhadu. And, another good part is that the siding for evacuation of coal at North Dhadu is just side by. So that also will facilitate us for starting the production and evacuating the coal from North Dhadu. This is regarding North Dhadu.
Coming to Machhakata, recently, we won that, and we got the order from government. Vesting order is still yet to come. We have deposited all the requirements, we completed all the formalities. And, as you know, this block is a huge block having almost 1.38 billion metric tons of coal, and with 30 metric tons per annum rated capacity. And this is also very good quality coal of G10 and G11. Before the allotment, also, we started all the activities proactively. Now, our GR is already prepared, and we are submitting it for the approval with the, for the ministry. And subsequently, we will be preparing the mining plan.
We are taking all the activities in fast-track mode so that we complete all the activities and start extracting coal within 36 months. For this Machhakata coal, the timeline set by government is 55 months. We want to do it well ahead, that is within 36 months.
That's helpful, sir. Thanks a lot. I have a few more questions. I will fall back in the queue.
Okay.
Thank you. A reminder to all participants, you may press star and one to ask questions. The next question is from the line of Somnath Saha from B&K Securities Service Ltd. Please go ahead.
Am I audible?
Yes, yes. Please go ahead.
Yeah, thanks for the opportunity, sir. So I have a question on the renewable side. Can we commission any capacity in the current year? If so, how much we can expect for the current and the next year, sir?
Sorry, can you please repeat the question? The voice is shaky.
Sure. Actually, my question is on the renewable side. Can we expect any capacity addition in the current year, sir?
Yes, yes. See, you know, our capacity as on date is around 1.4 GW, and we are targeting to reach 10 GW level by 2030. So in line with that target, already actions are in, on, and around 2 GW power solar power projects are in pipeline. Out of this 2 GW, projects are there mostly in Gujarat and Rajasthan. And out of all these projects, the 300 MW project, which is, which we, which we are constructing in our own land in Barsingsar, that will be completed in the current financial year.
The balance 1.7 GW plants in the state of Rajasthan and Gujarat, the work is in fast progress, and they will be completed in the first half of the next financial year, or latest by the third quarter of the next financial year. But in the current quarter, current financial year, we are expecting addition of 300 MW from our Rajasthan Barsingsar Solar Power Station.
Okay, sir. That's helpful. And my second question is on the e-auction for coal. So can you quantify the volume for the quarter as well as the relation from e-auction rate versus the CL maintained rates, sir?
Yes. So, through e-auction, there is a substantial improvement in the quantity of coal we are e-auction. Last financial year, in the entire financial year, we auctioned 9.10 million metric tons. This financial year, till now, we already sold 8.22 million metric tons. The last financial year, the average price was INR 2,369. But due to the coal excess scenario, here it is 1,354, 1,354 INR per metric ton.
This INR 1,354 is the current rate, sir?
Hello?
Hello.
Hi.
This 1,354% you have mentioned is the current e-auction rate, right, sir?
Current E-auction price is INR 1,354. A small correction, the quantity with-
Hello?
Hello, sir.
Hello.
Ladies and gentlemen, we have the management line disconnected. Please stay connected while we reconnect them.... Ladies and gentlemen, please be patient and stay connected while we reconnect the management. Ladies and gentlemen, we have the management back with us. Over to you, sir.
Okay. Hi.
Mr. Somnath, you can go ahead with the questions.
Yeah, sure. Actually, you are discussing about the e-auction volume and the realization about the asset.
Actually, the actual realization, I'm talking about actual realization of e-auction. In the last quarter, last financial year, quarter one, it was 9.1 lakh metric ton. In this financial year, it is 8.22 lakh metric ton. Whereas last financial year, the average price is INR 2,369 through e-auction. This financial year, it is INR 1,354 per metric ton.
Yeah, that's helpful, sir. And, lastly, can you give us some update on the actual order for the current period, 2009-14? What is the current figure about that, sir?
During quarter one, we received, as I already told, during quarter one, we received some favorable orders and some unfavorable orders. The net impact in quarter one is around INR 21 crore only.
Okay, sir. Thank you, sir.
Thank you.
Thank you. Before we move on to the next question, a reminder to all participants, you may press star and One to ask questions. The next question is from the line of Arian from [Bohai] Investment Advisors. Please go ahead.
Hi, sir. My question would be, what would be the CapEx for FGD, and when it is expected to be completed?
See, our FGD activity is going on in almost all the plants, and they are in different stages of completion. The value, the CapEx is different from different stations, and if you take NTPL, the FGD cost is around INR 625 crores. Similarly, for other plants also, for NNTPP, it is INR 665 crores, and NUPPL, it is INR 979 crores. And TPS I expansion, that is yet to be awarded. We are in the process of awarding that. Similarly, the FGD is at different stages of completion in different units, and we are hopeful that by... We'll be completing the activity before the timeline set by Government of India.
Okay. Sir, and my second question would be like, can you provide some update on 2014-2019 tariff order? Have you received that, and what is the expected, reversal of provisions from that order once you receive that?
... Oh, no pressure. Actually, there is no reversal, because of that order.
Have we received that order or is it yet to be received?
Yes, yes, that is received, and there is no reversal requirement.
Okay. Thank you.
Thank you. A reminder to all participants, you may press star and one to ask questions. The next question is from the line of Ragini from Elara Capital. Please go ahead.
Yeah. Sir, what is the Regulated Equity from mining, and does this equity number include the Regulated Equity from coal as well, coal mining as well?
Okay. The total regulated equity as on date is INR 9,529 crore. Out of that, for mines, it is INR 3,598 crore, and for thermal, it is INR 5,931 crore. This is the regulated equity as on date.
Okay, so mining includes the coal mining as well?
Yes, yes. Yes, mining includes-
Generation includes renewable or it is excluding renewable?
No, it is excluding renewables, because renewables is not a regulated sector. So, thermal generation, it is only for thermal. There is INR 5,931 crore.
Okay. And sir, how will the regulated equity for mining change, going ahead, and how will that number increase?
See, we are having, as on date, we are, around 44 million metric tons, and we are targeting to become a 100 million metric ton company by 2030. So, the current, regulated equity of INR 3,598 crores, that will be almost double. Almost it will become INR 5,952 crores by 2030. Similarly, thermal, as on date, it is INR 5,931 crores. That will be increased to INR 12,932 crores by 2030. The total regulated equity in 2030 would be INR 18,885 crores.
Okay. Sir, this mining capacity you are intending to increase to 100 million tons. So what will be the tie-up of this incremental capacity, like, the capacity will be tied up with which power plant or will it be sold on the commercial platform?
See, we participated in the commercial auction and won two mines. That coal we will be using, we'll be selling commercially. We are free to sell to any sector at any rate. So North Dhadu and Machhakata, both are the commercial mines, as on date, we'll be selling in the open market. Whereas our Pachwara South coal block, which is expected to start production in the last quarter of this financial year, that is linked to our Ghatampur Thermal Power Station, and the entire capacity will go to Ghatampur Thermal Power Station. And whatever the balance coal is there, that we will be selling in the open market through the auction.
Okay. Sir, just one last question. There is the e-auction volume, which you mentioned that 8 MT, that is from Talabira plant, mine?
Yes, yes. The coal auction, which we are doing, is from Talabira, but that, that quantity is from Talabira only.
Okay. That's it, sir. Thank you so much.
Thank you. The next question is from the line of Ravindra Nath Nayak from Sunidhi Securities. Please go ahead.
Thank you, sir. Thank you for the opportunity. Sir, you mentioned that the bad impact for this quarter is around INR 21 crore. So can you please give us the same numbers for Q1 2024?
Okay, one minute. So you are asking about the impact of the CR order?
No, no, the negative impact of the regulator, or adjusted. You have mentioned in the previous question that, negative INR 21 crore, this quarter. So what is that number in Q1 2024?
No, I'm talking about the Q1 2024 only. Whatever orders are received in Q1 2024, the net impact on the financial is INR 21 crore negative impact.
No, the previous year for quarter. I'm just talking about Q1 of last year.
I'm talking about the current quarter only. Current quarter, 2024-2025. Whatever orders we received and accounted for, the negative impact is INR 21 crore only.
Can you please give this number for last year, first quarter?
Okay. Last year, first quarter. We'll come back. We'll communicate to you.
Okay. And sir, in this quarter, what is the coal profit, profit related to coal? What would be that? Can you please quantify that?
Okay, one minute. Profit.
I think, for your earlier question, previous financial year, quarter number one, there were no orders against our NLCIL. So there was no impact. There was zero impact in the last quarter, and in this quarter it is INR 21 crore.
Okay. Okay, thank you. So about the coal profit, sir?
One minute. The profit, PBT, is INR 90.24 crore.
INR 90.24 crore. Okay. And sir, you mentioned that you have signed an agreement with DVC to supply coal. So how is the coal distribution now from Talabira to different entities like NTPC and DVC, and also our own requirement in Tuticorin. Can you please give the distribution, what is this for this year, as per your plan for production from Talabira?
Okay. See, as per government set target, our production this financial year is 16 million metric tons. And, out of the 16 million metric tons, around 4 million metric tons is required for NTPL. And, we are having a MoU with NTPC, for 5 million metric ton. And this DVC MoU, that is for 2 million metric ton.
Okay.
So, this is around 11 million metric tons. So another 6 million metric tons is there. The 6 million metric tons, we are going for the long-term e-auction, spot e-auction, and mid-term e-auction. So this 6 million tons, we will be selling through the auction process.
Okay, okay. And that is allowed because you, in the previous interactions you mentioned that a significant amount of pre-auction we cannot get from this mine. So is it, will, will be possible, the 5 million ton five-
As per government order, we can sell 75% of production at Talabira. So our 16 million metric ton will be our production. So 12 million metric ton we can sell through the other routes. So it is permitted.
Okay, okay. So, nothing will go to, you know, Ghatampur from Talabira, you need to say?
No, actually, for the Ghatampur, we are already having the linked mine, Pachwara, which is going to start production from the January of next calendar year, next financial year, January 25. And over and above that, we got bridge linkage for Ghatampur from Coal India subsidiaries. So if some gap is there, if there is some delay is there in the production of coal, then that bridge linkage linkage coal will be used for the production at Ghatampur. But in case if any requirement is there, any emergency is there, and if generation getting affected at Ghatampur, then we can think of sending some coal from Talabira. But as on date, we don't have any plans to send the Talabira coal to Ghatampur.
Okay. Sir, can you please help me with the realization, whatever, in the price we, if, which we sell to NTPL, and NTPC and DVC?
For Talabira? Talabira Coal?
Yes, yes.
Okay. See, in the current quarter, through e-auction, we got... One minute. Through e-auction, the price is INR 1,354.
Yeah.
To sell to NTPC through MOU, 1036.
1036.
And coal sale to NTPL, it is 810.53.
Okay. What would be the price for DVC, sir?
The price for DVC is same as what we are supplying to NTPC.
Okay. Okay. Okay. Okay, thank you, sir. And about, sir, this renewable, NLC Green, you are not transferring this current capacity of 1400 MW to that subsidiary. It will remain in the standalone entity.
No, actually, yes, actually, we formed two 100% owned subsidiaries. One is NLC India Renewable Energy Limited, and other is NLC India Green Energy Limited. This NLC India Renewable Energy Limited, we are going to transfer this 1.4 GW renewable capacity to NLC India Renewable Energy Limited, and subsequently it will be monetized.
Okay.
All the new capacity, which we are adding, that will be under NLC India Green Energy Limited.
Okay, okay. So why it is a two entity, sir? Do you see?
See, to focus on asset monetization, as said by Government of India, a separate subsidiary is formed. And to focus on the renewable, which we want to increase almost seven times in next five years, that's why a separate entity is formed to focus on the capacity addition program.
Okay. Both will be monetized, we will proceed?
The exact structure of the subsidiaries is yet to be approved. So, as on date, we are targeting for monetization of NIREL.... But if vertical structure is there, then whatever currently the NIGEL also will be monetized.
Okay. Okay, okay. Okay, sir. Thank you. Thank you for answering the question.
Thank you.
Thank you. Before we move on to the next question, a reminder to all participants, you may press star and one to ask questions. The next question is from the line of Aditya Welekar from Axis Securities. Please go ahead.
Yeah, thanks for the opportunity again, sir. So my question pertains to the recent Supreme Court. Today's Supreme Court verdict that, the states can levy tax on mineral assets. So from that perspective, is there any tax liability in the state of Tamil Nadu for our mining assets, or, ours being a regulatory mining business, it doesn't impact us? Just wanted to understand that point.
See, from in Tamil Nadu, there is no such problem, but overall impact on the company, we are working out because just, just today itself, that order we got. We are working out the impact in other states, whatever coal production is happening.
Okay, understood.
Whatever impact is there, that is a pass-through, as it is of statutory nature.
You mean, if the impact comes, we will be able to realize it in our return on equity?
Exactly.
Okay. And, as far as this regulatory equity in mining is concerned, does it include the CapEx towards this commercial coal mines of North Dhadu and Machhakata?
Yes, sir. Yes, that includes the CapEx in the commercial coal mine also.
Yeah. Okay. And sorry, just, slightly dwelling on this PLF part. So for TPS to expansion, I recall you just said in the call that by September, we expect that the boiler issue should be resolved, right? And post that, can we expect no under recovery from that particular plant?
Yes, yes. The already the material supply is completed, and we awarded the execution contract also. So, we will be taking up in the month of September, and by October, the work will be completed, and then, the unit will be fully available, and that will substantially reduce the under recovery.
And same for TPS two, means the coal availability issues. How shall we see it in the foreseeable future? Will it be... Can we assume any zero under recovery from that, from the second half of this fiscal year?
Exactly. TPS two, all units are performing well. There were some, some issues because of, some rains that happened. Otherwise, all the units are performing well. Only, one unit is under, annual overhauling, and, only for the annual overhauling, I think they will be out. Otherwise, all six units are generating. We don't, we don't foresee any under recovery from TPS two.
Okay. And in month of June, from the data from the CEA website, we can see that, PLF for the Barsingsar TPS has come down year-on-year. So, any particular reason, why Barsingsar is slightly, underperforming in last three, four months?
One of the unit was under plant maintenance. So that is scheduled maintenance. So, it is not underperforming, and it will finally, the again, unit is started and, it will come back and, recover whatever, is, PLF is lost in during the overhauling.
Okay. Thanks a lot, sir, for this elaborate answers.
Okay. Thank you.
Thank you. A reminder to all participants, you may press star and one to ask questions. The next question is from the line of Arian from Bohai Investment Advisors. Please go ahead.
Yes, sir, I wanted to know, like in corporate plan, you have mentioned that you don't expect any new thermal capacity addition beyond 2030. So I just wanted to understand that, whatever new capacity you have, thought of, those are the only ones which you will impact in thermal, and you don't need to be, shouldn't expect any new thermal capacity announcements?
See, the statement is that beyond 2030, we will not start any new plant. But already we are having an aggressive capacity addition program in thermal. We will be adding 3,200 MW at Talabira, and around a thousand MW, fifteen hundred mega, 1500 MW at Neyveli, and around 500 MW in Rajasthan, as we are forming JV with Rajasthan. So, all the plants will be completed before 2030, and beyond 2030, we will not start any new thermal power station. That is the statement.
Okay. Thank you, sir.
Thank you, sir. A reminder to all participants, you may press star and one to ask questions. We have our next question from the line of Prateek Singh from Dam Capital Advisors. Please go ahead.
Hi, sir. So just, following up on, the last question. So I understand that we don't have any demand from Tamil Nadu as such, as of now. What is the scene with Odisha? Because that's where we are seeing most demand from mineral companies. So has Odisha, in the past or now, asking for any demand in terms of, additional sales?
Actually, see, there is a huge demand for power even today, and our Talabira thermal power station, that is, the stage one, is fully tied up with signing a PPA with Tamil Nadu, Pondicherry, Kerala, and Odisha. And in the stage two, 800 MW, 400 MW, we already signed PPA with Odisha, and balance 400 MW, many states are requesting for that. So, that is referred to Ministry of Power. They will be allocating that balance 400 MW to the needy station, needy state.
Okay. No, so sir, my question was largely on this, Supreme Court ruling. Any demand in terms of additional stress from Odisha?
Okay. So we are, we are working out on that. We are working out. Today only we got the order, so we are working out on that. Any impact of Odisha plant, Odisha Talabira, Talabira mines, mines. We are working on that.
Okay, sir. And as you said, sir, it's a regulated entity, so it's largely a pass-through. But in your view, how would it work for e-auctions like you and Coal India? Do you think that you would be adding this amount to the base price of e-auctions, or we may need to take a hit in e-auction? Just taking a broad view. I'm sure that this is something which you would not have worked on right now. But do you think this would kind of increase the base of e-auctions going ahead, base pricing of e-auction?
And see, as you rightly said, wherever the regulated system is there, there we'll get the pass-through. And, wherever E-auction is there, we have to go through the order thoroughly, then only we can tell, okay, how we will be getting the outcome of the order.
Understood, sir. My next question was on this North Dhadu block. I understand it might be too early, but have you started looking for linkage commitments also, or do you think that we should be selling everything in e-auction? And-
See, this North Dhadu coal is of good quality, and it is, its main advantage is that it is very proximate to the main railway line, which is just side by that block. So as on date, we are targeting commercial market to fetch more revenue.
Okay, sir. Any plans to set up a plant in that area, given that you have a high-grade coal block or no such thermal power plant planned as of now?
See, we got this Machhakata coal block, which is of 30 million metric ton, which is huge capacity, and this is going to be one of the top five largest coal mines in the country. So, going forward, we may think of setting up of some pithead thermal power station near the Machhakata, but for North Dhadu, we are not having any plan as on date.
Okay, sir. And can you shed some light on the MOU signed with the Rajasthan government a few months back on the lignite-based power plant and solar power plant? How is it progressing right now?
See, as you know, NLC is having experience of lignite mining and lignite-based power generation of almost 68 years. And, Rajasthan is having lignite with us. So, we are going to form a JV, where around 500 MW of lignite-based thermal power station will be installed. And also, around 2 GW of renewable capacity, mainly solar, will be added under this JV.
Any timelines for this, sir, as of now?
We are forming the JV immediately. That will be formed within next quarter. And subsequently, we'll be doing the activities in fast-track mode. The renewable power stations will be completed within 2 years, and this, lignite-based power station, it will take 4 years to complete.
And so this solar power plant that you're talking about, so this would not be a part of your 100% subsidiary? This would be a part of the JV with Rajasthan government. Is that the correct understanding?
No, actually, the JV is being formed with at around 76-24. 74-26, and accordingly, it will move forward.
Okay. Thanks, sir. My last question is on any interest in critical minerals. I think we had talked earlier that there is some interest, but as of now, what's the thought process there?
See, as on date, we are having experience of open cast mining for almost 68 years. To use that experience, we are trying to venture into the mining of critical minerals also. We participated in the auction in the first and second commercial coal block auctions, but because of minimum number of participants condition, both were annulled. Now we are doing due diligence of the coal blocks that are offered in the fourth commercial coal block auction. After doing due diligence, we'll participate and try to acquire some blocks.
Okay. Understood, sir. Thank you.
Thank you. As there are no further questions, I would now like to hand the conference over to the management for closing comments.
Thank you. Thank you all for wholehearted cooperation, and expect the same in future also. Thank you.
Thank you. On behalf of Dam Capital Advisors Limited, that concludes this conference. Thank you for joining us, and you may now disconnect your lines.
Okay, thank you.