Q1 21/22

Aug 12, 2021

Quarterly report

Good day, ladies and gentlemen, and a very warm welcome to Coal India Limited Q1 FY 'twenty two 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 concludes. Please note that this conference is being recorded. I now hand the conference over to Mr. Vishal Chandak from TAM Capital Advisors. Thank you, and over to you, Vishal. Thank you very much, Ali. Ladies and gentlemen, good afternoon, and welcome to Q1 FY 2022 earnings call for Coal India Limited. I would like to thank the management of Coal India for providing us with the opportunity to host and for this call. From the management, we have the CND Street, Ramod Aggarwal, the Repro Marketing Street, Yawari and Telstra Finance Street, Samajan Datta and Company's Secretary Mr. Viswanathan. Without much ado, I hand over the floor to Shri Pramodji for his opening remarks, following which We will open the session for the Q and A. Over to you, sir. Thank you, Vishal. It's pleasure. Good evening, friends. Our dispatches, our production despite all the constraints of COVID have been good. This was particularly difficult week difficult quarter for Coal India because in the all these 3 months, COVID affected our every stage of operation. Despite that, our production was almost the same as it was last year and it was despite it were substantially higher compared to last year and it was even higher than 2019, 2020. Though we were expecting some better results in the sense that I was expecting that Profitability is somewhere near 3600,700, but because of some COVID links or gratuity, etcetera, Amit, so we can talk about the medical benefit, which we have not provided for a few years. So for that, INR 400 INR 600 INR 600 INR 600 INR was invested was provided and because of that our profitability cost reduced slightly. But From next this quarter onwards, I hope that our performance will be even better. So without going in much of detail, we have to Everything on our website, our presentation is there on the website. So it will be better for me to answer your questions rather than and 2. The first question is from the line of Vinakin from JPMorgan. Please go ahead. Yes. Thank you very much. So my first question is on e auction, realizing Can you give us a sense where are e auction prices at this point of time in August versus the June quarter average? June quarter average was slightly less. It was because whatever we were There are 2 things. 1 is dispatching and another is booking things. If you see the June quarter dispatch figure, that was slightly less just because Whatever we discussed in the main quarter was mainly what was booked in December of the I mean, the Q3 and Q4 of last year. And the figure was something like INR 15, INR 69 per tonne. So the average realization was about 10% lower than Notified sales. But in August, etcetera, now we are getting 30% over our notified sales. And this figure So, sir, when you said 30% over notified price, would it mean an e auction price Understood. And so my second question is on the wage expense bill. How should we look at the quarterly run rate for the remainder of the year versus what it is right now? In this quarter, the wage bill, etcetera, has increased by 8%. And as I mentioned in my opening remarks, this was mainly because of some of the croropies increase was there because of That some provisioning of CTRF amendment medical facilities for the non executives. So if we don't do, I mean, this is on one off and so I don't expect any provisioning. So my way is to remain technically in the same range as it was last year or maybe one of the second indices. Understood. Thank you very much, sir. Thank you. The next question is from the line of Mira Mehta from Edelweiss. Please go ahead. Hi, sir. I have just two questions. What is the current state of receivables? Okay. And the other question? So the second question is on the cash flow from operations and CapEx. What is the CapEx for this quarter and What do we anticipate for the year ahead? Okay. The first question, the Revenues at the end of the last year was INR 19,600 crores which reduced to INR 18,500 crores by the end of June quarter. But by the end of July month, it has to come down to INR 17,100 crores. That is a net receivable. So it has come down by about INR 2,500 crores in Last 4 months and we think that we will try to reduce it further in coming months and we are putting constant pressure on our The CapEx is HURL and the TFL, which is And in that, some part will be our contribution as equity and another part 60% of that means if we invest about INR 1, then INR 2 will come from the banks and that will be included in this CapEx. So that is the CapEx we are planning, sir. And sir, what about the CapEx for the coal companies? What are the numbers over there? The 17,000 includes everything. So I think about this HUR and TFL will amount to about I can't give you that directly, but it will be in the range of INR 3,000 crores. So rest of the INR 13,000 crores would come from Conference. But that's I think for the 5 crore is also improved about INR1500 crores is to be spent on the rail lines That are being constructed with the help of my joint venture company. Okay. Okay. Thank you so much, sir. I'm done. Thank you. The next question is from the line of Noelle from Ashikha Group. Please go ahead. Hello. Yes, I just have one question Relating to coal prices, so far I think you have already mentioned that the auction premiums for August have been Conference. So the thing is that but globally speaking still gold prices have remained quite elevated. I mean even for that matter, Kukhyan, conference. Hello. Yes, please repeat your question. Okay. Yes, so the auction premiums, I mean, as you have mentioned, So is this for any particular reason or will this normalize as well? The question is not understood correctly. Director, Panjesh speaking. Yes, please. Yes. Before, Panjesh, correctly, you are wanting to you are asking Whether this re auction price realization determined is due to the international benchmarking or due to normalization of the domestic market? No, I think can it improve further? That's what I was trying to say. I think you're asking about Yes, this quarter as well as the coming quarter. Yes. This quarter, as I mentioned, it was nearly 30% of sales. And in coming quarter, it will be in the Q2, it will be I think it will be in the same link, but in 3rd and 4th quarter, if everything remains normal, It will further increase. Okay. Yes, that is all I want to ask. Thank you. Thank you. The next question is from the line of Indrajit from CLSA. Please go ahead. Hi, sir. Thank you for the opportunity. If I remember, sir, in the last call, you mentioned about a chance of price increase in the FSS segment. So where are we on that? And what is the kind of increment that we can look for in the next few months? We are working on that. And because of the 1st 3 months we lost in the COVID, so we could not in that time of the admin stream of increasing the But now we are working aggressively on that. And since I can't say what will the figure because we have not decided and I would not disclose either, but we will see some difference being taken over the 9% EBITDA. And we'll try to maintain the EBITDA at roughly in the range of 30%. I'm sorry, give it that the range of? 28% to 29% 28% to 30% on full. Okay. That's helpful. And secondly, sir, this quarter onwards, we'll have to start making The provision for waste for subscription. So what is the kind of increment we will be factoring in just for accounting purpose? I know actual numbers could be different, But when you make provisions, what is the kind of hike will you be building? We have not previously thought about it, But it will not be anywhere near what it was given last year, last time. So provision will be very less competitive. We'll be very less. Let's see. But I think let's wait for a few days for us to decide on this. Thank you very much. Thank you. The next question is from the line of Falvane Datta from JetEdge Securities. Please go ahead. Yes. Good afternoon, sir. I just wanted to know what is the production and sales guidance for this year? The target we have kept at 670 and 740. But to my mind, if we achieve some production of 630 to 640 and batch of about 700 times, That will be the most practical thing. Okay. And sir, how do how should we look at that the stripping adjustment Line item in the PL account for this year? I think there will not be any withdrawal or loan or any provisioning. So stripping ratio, we'll try to maintain, which is required as per the design so that it doesn't affect the production and quality in the coming years. So will we have a so stripping activity adjustment that line, will we have a positive figure or If you can give some sense on that. There will be hardly any closing or any withdrawal from that. Okay. And sir, any view on the contractual expense? How should that be looked at for this year? It will very much depend on what is the price of the diesel. In this quarter, we lost about INR 700 INR of RVs because Business price increased by about 25%. It was in the range of R66, R67 and now it is in the range of R89. So there has been substantial increase in the diesel price. So if the size remains constant, then whatever we have done in the last quarter will maintain, which is, to me, I might, seems completely unlikely, but nobody can comment on that. Okay. Thank you, sir. That's all from my side. Thank you. The next question is from the line of Rahul Modi from ICICI Securities. Please go ahead. Thank you, sir, for the opportunity and congratulations on good volumes. Sir, a couple of questions. Just I wanted to check with you on how the demand situation has been overall for both coking and non coking. Obviously, we've seen a good set of Volume numbers in Q1, how is the volume looking forward in the next few months as per your estimates In terms of offtake and when do you look at stepping up the pedal in production? Because couple of months back, we had a P. Vijay Kumar:] Situation where we had to also slow down production because of inventory. So how is that now standing out overall? Thank you, Rahul. Demand is very good today. Actually, in the 1st 4 months, we have reduced our inventory by 45,000,000 tons And our dispatch is to this date is about 46,000,000 tonnes more than last year. And it is much higher than the 2019 Related to COVID happened, my demand will likely to continue, and we have created space for another 50,000,000 tons. So The production reduction that we reported last year, which I don't think there will be any situation like that in coming This year, it is unlikely to come. We will have to gear up our production and increase it as much as possible because we have already created a space for about 50,000,000 tonnes. And as you know, in other remaining days of other than few days of September, The stock is likely to reduce further. So there is a huge demand in the market. Industrial systems are quite geared up. And so Also, in terms of we've seen a very strong elasticity means typically when your volumes went up to 30,000,000 tons. Obviously, there was a correction. So is it more to do with the time lag of when the quantity was booked and dispatched? And you see better months coming ahead on the e auction side. As you mentioned, there's a 30% premium. You see this continuing or improve going forward? In August September, The premium may not increase, but after this quarter, 3rd and 4th quarter premium is likely to increase because enterprise are summed up for them. Unless it is very expensive, people will like to purchase from us. Now coming to the other part of your question, See, whatever we booked in the Q1 3 months, mostly that coal, which was booked which was In Q1, whatever dispatch has taken place is basically the coal that was booked in the last quarter of last year and of I mean, Q3 of the last year. Because during the COVID situation, we extended the time period by about 3 months, until 30th almost 20th July. So I must say until 20th July, so that affected because of that, The rate in the last few quarters was not as good as it was in the Q1. This will get reflected from now onwards, I think from September month onwards, whatever listing takes place, it will be because of the new booking. So we should see better price realization. Right, sir. That's helpful. So secondly, sir, now How do we stand in terms of is ministry supportive of price hikes? Because In terms of a lot of discounts to be offered has been already given by us. For example, the performance incentive has been let go of, which we used to get for supplying higher than the AC2. We've also We had reduced the base price of auction. So now that your end user industries are increasing their How is the ministry okay with that basically for allowing you to take hike because that becomes an important Thank you. What is your view? See, coming to the base size of auction, now Now it has been disclosed in most of the cases. And we are providing some Premium right at the beginning, mid size, we are adding some premium at the best size only. And there is no opposition from any quarter, whatever opposition is set. We are tackling that. Coming to the price side, we are in discussion with all the stakeholders. And in general, Everybody is on board because our costs have increased everywhere. So there's no reason that we also not increase the price. That we were looking at. So anything that we've formed up yet on that and the 3 gigawatt of solar Utility installations that you were talking about, sir, how are things progressing on that side? We have got Order for 100 megawatts in Gujarat. And in our own area, we are targeting to Install about 2 50 megawatts out of which 100 megawatts has been turned out. So we are working actively on that And we will in the coming months, we will see Coal India participating in whatever opportunity comes. We are quite Right, sir. And manufacturing? Solar, therefore, manufacturing, nothing has been formed up. We are working on that. The live email of the comment has been launched, but there, as I've told many times, that will go only if we get a very strong partner along with us. Okay, sir. And lastly, from my side, It's a very, very cliched question. We all always keep on asking you. So thoughts on your dividend policy going forward? How do you see You know, would be a balancing act between the CapEx and the payout, please? If the things as they are moving, If they go as such, then we will have adequate cash for both Diligent and for the CapEx, there will be no shortage of Cash bear with us, we have got 17,000 crores in market, which we are realizing very fast. We have got deposits and perhaps the profitability will rise in coming quarters, so that Yes, sir. We have the line for the management reconnected. Sir, you may please go ahead. Okay. Rahul, the second part of question, I requested Director of Finance So I think, sir, as already stated that going by the current The status of our production, offtake and the realizability that we are having, so we are expecting a better profit stability than the previous year and going back to that normal position of what used to be for Coal India about 28% to 30% of EBITDA margin. And Having said that and because the cash position looks also good, so there is no reason why we should not be able to actually maintain a good dividend Okay. So thank you. That's very helpful. Thank you and all the best. Thank you. The next question is from the line of Aniket Mittal from Motilal Oswal Financial Services. Please go ahead. Yes, thank you for the opportunity. My first question was on this, the production decrease that we've seen. I think like you mentioned, it's largely because of the high levels of inventory that we had. Just wanted to understand from an FY 2021 end perspective, What sort of inventory levels would you be targeting or what sort of inventory levels would you be comfortable with? See, conference. Comfortable number for inventory should be about 70,000,000, 75,000,000 tons, anything between 70,000,000 to 80,000,000 tons. But in case the lifting is not proper, we can go up to 100,000,000 tons. But beyond that, it will not be a good close to. This year also, if you see, in 1st 4, 5 months, we have 4 months, we have reduced inventory by 45,000,000. That too in the situation when and after May, June, COVID situation was prevailing and the demand situation in the country was not So, in case the demand situation remains normal type, Dan, even 100,000,000 tonne is something which I consider comfortable because in these 3 months, With all the efforts, the dispatches do not reach both beyond 2,000,000 tonnes. And during the rainy season, again, the Okay. So from an let's say FY 2022 end perspective, the inventory levels that you'll be targeting will be Roughly 70,000,000 to 80,000,000 tonnes. That's right. Okay. And our current inventory, I think, at the end of July would be 54,000,000 tonnes at our mines, right? So going forward, we will Please continue, sorry. I mean, correct me if I'm wrong. I think at the end of July, The entry level at our mines would be close to around 54,000,000, 55,000,000 tonnes. Going forward, I think we would look to increase the production versus dispatches and how Easily can we do that, Puneet? I think that you're close. How? I would think at current inventory levels, I think at the end of July would be close to 54, 55,000,000 tonnes. So if at the end of the year we want to reach the number of 70 to 80, we're essentially The production outpacing the dispatches, right, which means the production at our mines will have to increase going forward at least for the next few months. That happens because in the last quarter we produced almost 35% of our total production, if I'm not wrong. And in March alone, we produced about 12% to 13% of our production. So that will not happen. Sure, that will happen then in March. And just to get a sense, sorry to harp on this, but if I were to look at Coal India as a whole, What would you say would be the annual production that you can reach for all your mines without incurring any further CapEx? Without incurring any CapEx, maybe this year we can achieve whatever we are just deriving to, but next year It will not be possible to sustain that because one of the major component of CapEx acquiring land and rehabilitation, doing rehabilitation work. And third thing that we are looking at our evacuation system. Unless we invest properly in these Going down very fast. Okay. So setting your target was 630,000,000 to 670,000,000. So if I look Coal India as a whole, we can easily do 30,000,000 to 670,000,000 tonne. Beyond that is when we where we would face challenges, where we require to acquire land and that's why we're doing the incremental Maintaining this thing will require Okay. So What is the land we are exposed? It is not something that we have acquired complete piece of the land. We acquire land every year. Like last year, we acquired something like about 3,000 hectares of land and the last of our 3,000 So that type of we have to keep on acquiring demand. Got it. That's understood. And just on the OBR front as well, I think what's happened over the past 1 year is because inventory levels were high, we were So focusing more on the OBR front rather than the production of the mine. So how do you see that going forward? Any sort of OBIR production numbers that you have in mind for FY22 or OBIR removal numbers, Raghur? OBIR removal Partly was because of the fact that you mentioned, but partly was also because of the fact that in the last 3, 4 years till 2019, 2020, Despite the increase in corruption of the Coal OBR number have remained in the same range of 1130, 1140. And that has affected the mine domestically, tremendously. If we want that quality of the coal should improve and we want that production to more than OB removal at the rate of about 2.5x of tonnage So if suppose we are doing production of 600,000,000 tons, so roughly in the range of 1400 to 1500 15,000,000 or 15,000,000,000 cubic feet of Oviatt Removal. Sure. That is helpful. And just one question on the e auction front going forward. Once our inventory levels, I think, keep on declining, I think the realization on the auction will also go up. So how do you look at the overall mix? I mean, what sort of in terms of your overall dispatches, What would the ideal percentage be in terms of the auction volumes that you're looking from a full year perspective? Because Q1 was a pretty good number in terms of hitting 20% of our dispatches re auction. Would we be able to maintain that if steelization start going up? Actually 53% of old stock is not a low stock. This must be one of the highest stock on 15th of Agat, Payamadla As of this date and in any of the last year, so there will be no shortage of coal at the mine level. And from But up to or onwards, the accretion starts happening in the stock. So there will be no shortage of because And then, sir, what I mean to say that e auction volume will not get affected because of shortage of that. So if there is a demand, We'll try to maintain the 20%, 25% level. Thank you. And just one follow-up on that. Could you tell me what are the overall e auction levels or e auction volumes that we booked? And out of that, how many have you dispatched? I want to get your phone question. I was asking how many how much volumes of e auction Coal, have we booked or contracted and how much of that have you dispatched? It is not that the one to one relationship. The auction that taken place in the last quarter basically got dispatched this year in the first quarter. So the auction total was about 23,000,000 1,000,000 tons and the dispatch was 30,000,000 tons. So that but this 23,000,000 ton has got nothing to do with this 20,000,000 ton. Only a part of this 23,000,000 ton What dispatches this 30,000,000, and most of it was what was the auction in the last year. We did about 125,000,000 of last year, and I'm pretty sure that we will exceed that number this year. Understood. Understood. Thank you, sir, and wish you all the best. Thank you. The next question is from the line of Indrajit from CLSA. Please go ahead. Hi. Sorry, I just missed your production and sales guidance numbers for the year. If you can repeat that, please. I was saying that this batch should be in the range of 7 100, 7 20, when somewhere near more than 700. And the production figure, if it is more than 60, 40, 650, I will be happy. It should be in the range of 6.40 times. Okay. Thank you so much. Thank you. The next question is from the line of Kamlesh Bhagmar from Prabhu Das Liladhar. Please go ahead. Yes. Thanks. Sir, one question on the part of Hello? Yes, that's clear now. Yes. So I was asking on the part of e auction, sir. If I see July month, your re auction realization on the basis of numbers which were reported on the Ministry of Coal, It was roughly around INR 2,100. And if I compare it with like, say, Jan 2020, it was similar like INR 2,200 with the Same notified price of roughly around INR 1500. And if we see the global coal prices, it has almost more than doubled or 2.5x, but our realizations in the spot re auctions continues to remain the same. And even if we see the quantity at, let's say, In July, we have offered hardly around 5 odd 1000000 tonne and we were able to get interest for only around 50% of quantity. So what is the reason behind that? Sir, when there is so much of buoyancy in the global coal prices, even seapad coke prices, they are almost at like the all time high level. We are not able to realize that in the spot reaction. I'm not comparing with other options, taxi power and all that because there There will always be weak realizations of software additions in those segments. But particularly on this quarterly auction, like I say, It continues to remain very tepid even like the half increase in the global prices. I'll just go back to marketing A very good evening to Basically, you understand that a spot market is for Short term lifting, but as Sherwin have already told you that the lifting which was being taken 1 from the booking of the previous year previous quarters. So that is why the call which was We held till that 20th July that was getting lifted and The interest for fresh booking was not there because the coal was there in the hands of the traders. Now once this extension time is being taken out, You will find that this is a shoot to a level of around 75% or 80% of premium. Have I made my point? Earlier, this company was still there in the market, so there was a less interest in booking the fresh quantity. I was only talking about the July month. Yes, I'm It is there. July up to 20th July, there was an extension update. So, Once this call, which was booked earlier, goes away, you will find the interest rising much beyond what we have seen right now. But let me tell you, spot option, If I see on an average thing for the April to July, it is 34%. And in a similar pattern, When we offer coal for special spot auction for importers, the premium is 54%. So on average, what It is hovering around 24%. But if I take the sector which is Almost in the same pattern of spot auction, of what imported the premium is 54%. So what I'm trying to tell you is, if this coal has been lifted for the last quarter, now you will see from next month onwards, The production premiums will be much, much higher than what you are seeing right now for July or even for the average of April to July. Okay, sir. Thanks a lot, sir. And second question on the employee cost. So I was not able to hear that properly. So how much of the one time This quarter in employee cost, sir? There was increase on okay, director finance also in Turkey. In this quarter, you have pre made employee benefit cost of total INR 10,390 crores. Now we have already said that bringing back is embedded that INR 6 1 off actual valuation non cash charge that's the provision we have made. So even if you knock that off, it comes down to something below 10,000, something around 9,500 ish or 800 ish, which you had seen even in the 1 year back So if you multiply it by 4, that is something around INR 36,000 crores, which is more or less On the same line as was in the previous year, as you know that almost 15,000 people goes off, it gives us And for the present rate of salary structure almost INR 1,400 crores to INR 1500 crores of savings. So after recovering back whatever the increments are there for 3% annual increment and the BAs, that more or less fits Now this year also we are witnessing that the DA has been quite less. I mean, the inflationary pressures and the recession to the DNA talent has also been less. So we don't expect that it could go On an overall basis, beyond what you have seen in the last financial year. But would there be any impact because of the increase in the DA, Yes. For our officers, there have been increase in deals of about 5%. But you know that in Coal India there are 3,000,000,000 employees. Out of that only 17,000 or 18,000 are officers And the top 2 lakhs and 30,000 are workers. So the impact that it will make will be not Very significant. It will be there, but it will not be there. And the deal was not frozen. That was continuous. And the deal of Non accretive was not proven, it continues. So because of this, there is unlikely of any much of a great impact. Okay. Thanks a lot, sir. Thank you. Before we take the next question, conference. The next question is from the line of Pulkit Patni from Goldman Sachs. Understand this correctly. So Samiran had explained that employee costs are going to remain in the same range as last year given the adjustments, the adjustments. But if one factors in the provision for wage revision, then obviously this number is going to be higher, right? Is that understanding correct? That's right. That's right. Without the agreement, it will be in the same range. What Samiran said that it was last year in the Q1, it was 9,600. This year, in the span of this quarter, it is about 10,000. So out of that industry, And that's likely to continue in the coming months. So if there is a provision for that, that provision will be extra. Yes, I just wanted to clarify that. Thank you, sir. Thank you. The next Question is from the line of Rakesh Mayas from HDFC Mutual Fund. Please go ahead. Yes. Hi. Good afternoon, everyone. Thanks for the opportunity. I hope everyone is safe. I have 2 clarifications and 2 questions, sir. First one, on the employee cost itself. So when we are I think for a flat kind of number on Y o Y basis without impact of risk hike. I believe even in last year, In Q4, we had made certain provisions for actuaries, etcetera. So are we accounting for those numbers as well? Or We are negating the 2, the provision made in this quarter versus 4th quarter. See, our numbers Should be 9,700 on average per quarter. Okay. We have made a provision of about INR 1,000 crores In the last quarter for that lead investment, this year, suddenly it has come up about It's INR 600 crores for post retirement. So if you knock off those things, then it will be almost Whatever one time one off provisions are made, if those are removed, it will be almost Got it, sir. That helps clarification. The second question is on the spot e auction. Just want to clarify something that Director of Marketing was highlighting. So essentially, July also saw a muted response because There was a lot of offtake available with the already booked quantity with the players, which was taken off. And What we are essentially highlighting is that sales plan since 20th July, because that window is closed, the incremental spot options is seeing a much higher premium of 70% on, is that a correct understanding? Is that what I have? To stick to 70%, what you mean to say That in 20 July, we had given time extension to all the traders, that's because the coal situation was prevailing till June, So we get them 15, 20 days extra. But after July, there is no extension. So whatever quantity was left with them is over. So now onwards or coming forward, we must see a much higher What premium on this? Okay. Got it. And two questions that I have, sir, I've said this last week. And one is on the Ashik, you are talking about almost 640,000,000 tonne of production kind of number and 700,000,000 of offtake, which essentially means that you You will probably be having a reasonable moderate inventory at the end of the year. So given that demand remains strong, how prepared are we for a much higher production number and offtake number in FY2023? Or are there some bottlenecks which we still need to address to achieve those? FY 2023, the constraints that I personally feel is mainly related to the evacuation. About production, we can say that we have created capacity which is much higher than this. Now we have contracted about 130% of our requirement, so that even if 1 or 2 contractor fails here and we have created some flexibility in our contact system also. So if 1 or 2 contractor fails here and there, It should not affect our production numbers. Evapuation is definitely one of the big challenge, But we are following it up very seriously as you know that almost all the incentive projects are under construction. Some of them will come in next financial year. So that will help us in evacuation. Many of the lines that is small lines, So some of them will get constructed, but that will also help in increasing the some dispatches. One major improvement that is likely to take place is our completion of Amul Balram line completed And about 20, 25 rigs means about 1 per day, I think about 1 lakhs dispatch from And still will become possible. Similarly, from Cytaga, they are widening the line in the split form and they are So, like that, Hamsulan line has started construction. Construction has started in that line. So, we have taken up some Small patches work immediately, which are very critical for improving the dispatches. And with that also another 40,000, 50,000 ton will come per day. We have started construction on Tori Shipuri line. So some of these patches may come and that will help us in So I don't there may be some problem here and there, but then there will be no such That's really not in a position to meet that demand. Got it, sir. And then my last question was related to this part only. Of the first mile connectivity projects, if you can just also highlight as to almost 400,000,000 tonne kind of number that you are targeting in Phase 1. How is the commissioning of these likely given that we are already talking about CapEx on those numbers in 2022 and probably 2023 as well? So What proportion will come in which year? If you can just highlight that as well. 3 will come in FY23. 23. Okay. And they'll come in this year also, but they'll come this year. Another but most of them will come in FY 'twenty three, March 'twenty three, I think most of them should be there. But 3 or 4 may get delayed and one doesn't know how the COVID situation will come in. That happens and our everything is stopped. Got it. I'll go right back in queue. Thank you so much. Thank you. The next question is from the line of Ajay Jain, an individual investor. Call. Sir, my query is can you Throw some light on the jargon demand which we were having and what is the progress in this, if you could quantify it because in the last meeting, You had informed that they're going to take the rate based on present circle rate of the land. Could you Just quantify a little on the core liability which we are having on this. Mr. Ajay, There is a problem with the Harakhan lending deposit. The land we have acquired, but many of that land Secondly, a lot of land for which we have already paid for individuals, But that is in the middle of harsh environment in some old reports. And whatever payment we have made is after the verification done by the Land Report So whatever figure that is There is no linkage between reality and Okay. I understood that. But coming to my next, could we quantify from the company's point of view what you feel could be the liability which We look ahead. Somewhere we had worked out the INR2500 crores figure, which you said which you had mentioned that that also is not there in your mind. But because these figures are so huge, it can have a very financial difficulty as regard to liquidity and the profitability going ahead. If it comes through, so could you quantify to specify, okay, this is the liability which we feel I don't think any liabilities are going to come up. Okay. Another RMB300 or something like that, not more than that. But the card needs to match. Beyond that, there is nothing in this. Wonderful, sir. This is very comforting because the figures which are being going around can really make a lot difference. Thank you. I think that Secondly, sir, there's so much of rise in international prices. The Seagate auction and the spot prices gives us better revenue to the company. Do we have a cap on this that we can only do a particular amount of production can go into e auction Apart from the ones which you have tie up agreements, 20% of the total Achieving 20% itself has not been possible in many years. Now we have geared up. And so offering is not Demand should be there. And if you offer too much of the quantity, then that's then we know just no giving on it. Sir, just a corollary to it. Basically, right now, the international prices are going, I mean, lifetime high, and There's a difference between a year back and today, it has increased more than 100%, 150%. Why is this not reflecting in our prices? Whenever we see international prices, we go for a good sleep because we think even Coal India would have a good price too. But when we go back, It does not reflect so in our pricing. Is there any particular reason behind it? Like you explained about the spot prices that 20% is what we can sell and probably we will reach that figure. But apart from that, the FSAs and are we not able to negotiate with them? Like normally, if you see other commodities, they monthly take out a price list, okay, this is the price which we'll give from this particular day onwards, iron ore and Other commodities. Why is not that happening in coal, sir? If we feel it's tremendous, then it will affect the price of the energy, price of the power in the country. So that much of I don't think that should that is a practical thing and now it is a desirable thing. But we completely understand that this is the high time and the price should increase, taking into account the fact that for last three and a half years, we Whatever we offer on the spot price in the fee auction, I think in coming months, we'll see much higher dilution. Hi, thank you so much. And really compliment you on the way you conduct these calls really makes things so transparent, sir. I really respect and compliment you on this particular effort which you put in, sir. Thank you, Mr. Vijay. Thank you for the compliment. Thank you. Thank you. The next question is from the line of Vinit Malu from Birla Sun Life. Please go ahead. Good afternoon, sir. Thank you so much for the opportunity. So just wanted to know what is in the progress for us on receivable side at the end of June and beyond June also till date, if you can just talk about that, sir. I had mentioned this in the opening remarks, Malu, But then coming back to it, at the end of March last this year, 31st March, it was about INR 19,500 crores, which will be due to INR 18,500 crores by June and my Director of Finance tells me as of July 9, it came down to INR 17,100 crores. So there has been a deduction of about INR 2,400 crores in last 4 months. So my next question is on what is the total CapEx we've incurred so far in the year? And are we on track for our annual target? See, As I mentioned earlier also, the target is about INR 17,000 crores, but that improves our investment in HURL and PFL. And at your annual and CFL, I expect that this year about RMB 1,000 equity will be booked and Correspondingly about 2,000 crore fees no one will be taking. So the 3,000 crore fees is on HURL and CPL account And another INR1500 crores or INR 1,000 crores, I don't remember exactly, is for railway lines that have been constructed In that also, my equity is only my equity is successful at 64%, but then Out of total investment, only 20% or 30% is liquidity and 70% is So to that extent, if you are looking from the cash point of view, this fact should be taken into account. And rest of the thing is for our Okay, okay. Yes, that's clarifying. Thank you so The next question is from the line of Rahul Jain from Systematics. Please go ahead. Yes. Hi, good afternoon, sir. Thank you for taking my question. So on we have started an exercise of import So how far have you succeeded on that front? And what is your expectation for this year? And secondly, sir, I want to know, so what is the pipeline of thermal projects coming in the country? And so what is how do you see the landscape evolving in Keep evolving in next 2, 3 years? Yes, thanks. I could get your second question. No, my this is more broad based in terms of this Carbon emissions are creating a problem globally. So how are we geared up to address that issue? Okay. Coming to the first question, I think about 70,000,000 ton was the thing that we supplied instead of import last year. And this year again, we will make all the efforts to But our limitation is that there is lot of import, which is The type of coal we don't have, like coking coal, hydrate coal and coal for postal power plants etcetera. So that is something Which is not replicable, the rest of the phone, whatever is replicable, we'll try our best to replace that. Coming to the second part of the question, Which is related to decreasing the carbon emission, We are taking all the steps possible. As I had mentioned in earlier introductions as well that first mile connectivity, The projects related to 1st mile connectivity and railway lines are a big step in reducing the carbon footprint. Very soon, you will see a media report within our on our website that will indicate that A lot of carbon, I don't want to give the numbers exactly, but by constructing all these satisfied offensive projects, A lot reduction will take place in carbon emission means that there will be a substantial reduction. Secondly, we are increasing Last year, we did 3 plantation on about 800 hectares of the land and did about 2019. This year, we are planning that we should do on more than 1300 hectares of the land and perhaps more than 30,000,000 plants will be settlements will be planted. Besides, This is over and above the statutory requirement of afforestation that we are required to do And whatever we have accumulated over the years is more than 4,000 I don't remember the name. It's not how many we see, it's a thing, the name is that? 4,000 hectares of land, more than 4,000 hectares of the land we have planted On this, we have trees are planted and in certain areas, actually, the area after our coal plant enters, it has become greener. So all these efforts, we are doing some experiments on how to replace diesel with LNG. And we have signed an MoU with So that they will help us in introducing LNG if that happens and further reduction in the high capacity footprint can be achieved. We are trying to get into this solar power. As I mentioned earlier, that about 2 50 megawatts we have identified, which will be created just to meet our requirements which will supply to other subsidies in our fleet. And besides, we are trying to enter in the field So that in next 2 to 3 next 3 years, CIAL can become an Yes. Thank you, sir. That's very helpful. Sir, So on how do you envisage the situation evolving, say, in 5 years' time? Do we see a lower production in uptake given your projection that you would have done? Do you see that thermal demand will still continue to grow at more than 5% or any what are your thoughts on that, sir? It will be difficult for me to indicate any number, but my understanding is that for next 1 or 1.5 decades, The coal production requirement of the country will further increase. There is no way it can decrease. Our average energy consumption is Sorry, let me take in another way that average carbon emission per capita in India Half of the world average and perhaps 1 eighth of the American average. If we have to improve the standards of the living, Then the energy consumption in the country will increase. There is no way that it can decrease. So Next 10 to 15 years, I don't think the coal demand will reduce. Maybe the share of the coal In power generation will decrease, but in absolute terms, it will definitely increase. And that Production requirement will be at least 5% to 6% increase every year. Right. And so largely you think it will be coming from higher PLS because Not too much of thermal capacity have we added in the right assessment, sir? That's right. Last year, it was only 58%. This year in certain months, it's really a growth to 62%. So it is likely to increase. This year, it will be you will see that CLF will be 60 plus. Thank you. Thank you so much, sir. Thank you. The next question is from the line of Vishal Chandak from DAMP Capital Advisors. Please go ahead. Yes. Thank you very much, sir. So just a couple of questions from my side. The first question was with With respect to simplification of the e auction process, if I remember last time you mentioned that there are a number of e auction, multiple e auctions that you run And that creates a lot of anomalies in the system as in who puts in how much quantity in which auction and thereabouts. So price discovery also Time is not very realistic and demand assessment is also not very clear. So any thoughts on how soon can we We'll move on to one option kind of a phenomenon. Vishal, we are trying very hard for this, But we need government permission for this. And as you know that it will affect certain interest. So those interest groups are trying to assess, but we are working on It will be difficult for me to indicate the time line, but let's see. We are working very hard on this and Well, in my view, that would unlock significant amount of value for Cool India, because if you look at today, Any other company in the commodity space, they have reported lifetime high EBITDA, while the cost structure is probably remaining flattish or marginally up. So it's high time we have our share of the pie. You are right completely. But then Other commodity and the comments with that coal is slightly different because almost everything depends on coal. So rampant increase in price of coal perhaps will not be advisable for the country's economy. But then I completely agree that there should be some increase And all these mechanisms should be transparent and it should be such that real time period will be starting to improve. And we are working very hard on our business. That's great. Yes, sir. So my second question was with respect to washies. I remember at the time of our IPO, we had made Certain commitments on setting up washries and proceed towards improved quality of coal. So In recent times, what are the actions that we have taken on wash feed, if you could just elaborate on that? It was found that wash feed Coal becomes slightly expensive and no power plant is willing to take washed coal. Despite that fact, if you transport over a certain distance, The cost of transportation of the ash content makes the coal cheaper, but none of these Our plans without giving any commitment on this, yes. And hence, in the last year, the government that made it compulsory not to transport And hence, in Today's situation, even if I install walkway, I don't know how much demand I would say. I have been requesting power plants to indicate the demand Just some commitment that in the last many years we have not given. So ultimately, washes from non token coal And sir, my last Question was with respect to our CapEx for reaching at 1,000,000,000 tonnes. If I remember, we had stated that we need about 65,000 crores of CapEx To reach a 1,000,000,000 tonne and we were planning to hit that number by about FY 2024. I understand we would be delayed because of the COVID. So where are we in terms of reaching 1,000,000,000 tonnes and in terms of capacity to produce? And how much we have spent on impact so That would be all. Last year, we spent about 10,000 to 12,000 crores just on our increasing our capacity. 13,000 to 14,000 crores CapEx will be gained on this. And that's where again we are likely to do CapEx of 13,000 crores, 15,000 crores on this item. But what you are saying that 65,000 crore fees is required to increase the 1,000,000,000 ton production, perhaps There is some mismatch in these numbers because when we say that so many projects are to be open For reaching this 1,000,000,000 ton target and for those projects 65,000 ton or 20,000 ton bids will be required, It doesn't mean that for 1,000,000,000 ton this much is required. Because that 65,075,000 is the total requirement of those projects Over the next 20, 25 years, so that much capacity will be created and that capacity needs to be sustained over many years coming years. That is something, sir. It is not that you'll be required to spend 65,000 crores in next 2 to 3 years to achieve this target. Got it, sir. Thank you so much. Thank you. As there are no further questions in queue, I now hand the over to Mr. Vishal Chandak for closing comments. Yes. Thank you very much for participating in today's call. I hope we have had a very good session. And I hand over the floor to sir for your closing comments. Thank you very much, Vishal, for organizing this. And thank Thank you, participants for asking very good questions today. And I must appreciate today that Thank you. Ladies and gentlemen, on behalf of TAM Capital Advisors Limited, that concludes this conference call for today. Thank you for joining us and you may now