Ladies and gentlemen, good day, and welcome to the Q4 FY23 Earnings Conference Call of NTPC Limited, hosted by JM Financial. As a reminder, all participant lines will be in the listen only mode. There will be an opportunity for you to ask questions after the presentation concludes.
Should you need assistance during the conference, 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. Sudhanshu Bansal. Thank you, and over to you, Mr. Bansal.
Thank you, Darwin. Good evening, everybody. On behalf of JM Financial, I welcome you all to the Conference Call of NTPC Limited to discuss the fourth quarter and FY20 23 results. We have with us the leadership team of NTPC, comprising Mr. Jaikumar Srinivasan, Director Finance, Mr. Dillip Kumar Patel, Director Human Resources, Mr. Ramesh Babu, Director Operations, Mr. Ujjwal Kanti Bhattacharya, Director Projects, and Mr. Shivam Srivastava, Director Fuel.
Thank you so much, sirs, for your kind presence and giving JM Financial the opportunity to host the call. With this, I would like to hand over the call to Mr. Srinivasan, Director of Finance, for opening remarks and taking the call forward. Over to you, sir.
Thank you. A very good evening to all the participants. I, Jaikumar Srinivasan, Director of Finance, welcome you to the Q4 FY2023 Earnings Conference call of NTPC Limited. I have with me my colleague directors whose name have just been announced. I have also with me other key members of the NTPC team. Today, the company has announced the audited financial results for FY2023, along with the financial results for Q4 FY2023.
The key performance highlights for the financial year and quarter ended 31st March 2023 have already been disclosed on both the stock exchanges. Keeping up with the expectations of our stakeholders, NTPC has yet again recorded multifold progress in its operational and financial performance. The key highlights of our performance in FY2023 are as under which I'm sharing with you now.
Operational highlights of FY20 23 is as under. During financial year 2023, NTPC Group has added 3,952 MW of commercial capacity to its portfolio. As on 31st March 2023, the commercial capacity of NTPC stands at 56,368 MW on standalone basis and 72,254 MW for the group. NTPC Group generated 399 billion units in financial year 2023 as compared to 361 billion units in financial year 2022, an increase by nearly 11%.
The standalone gross generation financial 2023 was 344 billions against an increase of 11% over previous year gross generation of 310 billion units. During financial year 2023, average plant load factor of NTPC coal stations was 75.90% as against the national average of 64.21%, thereby maintaining a spread of over 11% over the national average. For financial year 2023, five coal stations of NTPC, which is Korba, Vindhyachal, Rihand, Talcher and Kanti, were among the top 10 performing stations in the country in terms of PLF.
During financial year 2023, there has been an improvement in scheduling by the beneficiaries, thereby re-reducing the backing down from 96.70 billion units in financial year 2022 to 91.85 billion units. I now share the status of the fuel supply. During financial year 2023, materialization of coal against the annual contracted quantity was 181.34 million metric ton, which constitutes 93.60% materialization as against 174.36 million metric ton, constituting 94.76% the corresponding previous year.
Total coal supply during financial year 2023 was 223.85 million metric ton, including 14.56 million metric ton of imported coal as against 202.55 million metric ton in the previous year, which included 2.47 million metric ton of imported coal. There has been an increase of close to 65% in NTPC's own coal production. That is from 14.02 million metric ton in financial year 22 million- 23.2 million metric ton in the financial year 23.
I will update you on some of various financial performances and key figures. Total income of NTPC for financial year 2023 is INR 167,724 crores. As against the pre-previous year total income of INR 1,24,752 crores, registering an increase of 34.45%. Profit after tax for financial year 2023 is at INR 17,197 crores, as against INR 16,282 crores in the previous year, registering an increase of 5.62%.
Total income of the group for the financial year is INR 177,977 crores as against the previous year total income of INR 134,994 crores, registering an increase of 31.84%. Profit after tax of the group for financial year 2023 is INR 17,121 crores as against the previous year's profit after tax.
Mm-hmm.
INR 16,960 crores. Just reconfirming my audibility. Am I audible?
Yes sir, you are audible.
I'll continue. During financial year 2023, our share of accounted profits in our joint ventures and subsidiaries is INR 2,246 crores as compared to INR 2,398 crores in the previous year. During financial year 2023, we have received dividend income of INR 2,336 crores from our subsidiaries and joint venture companies as against INR 1,736 crores received during financial year 2022.
For financial year 2023, the board has recommended the final dividend, 30%. 30% of the paid-up share capital, that is INR 3 per share, subject to the approval of the shareholders in the ensuing annual general meeting. As you are aware, interim dividend for the financial year 2023 at the rate of 42.5% of the paid-up capital, that is at the rate of INR 4.25 per share, has been already paid in February 2023. The regulated equity as on 31st March 2023 for NTPC standalone and Group was INR 77,628 crores and INR 94,180 crores respectively.
Gross block of NTPC has increased by INR 12,802 crores to figure of INR 269,166 crores as at 31st March 2023. On group level, gross block has increased by INR 30,311 crores to INR 338,436 crores, mainly on account of capitalization of new units. The capital work in progress, including capital advances of NTPC, stood at INR 67,771 crores as at 31st March 2023, as compared to INR 79,272 crores as at 31st March 2022.
At the group level, CWIP stood at INR 98,974 crores as at 31st March 2023, compared to INR 100,047 crores as at 31st March 2022. At the group level, the ratio of gross block to CWIP is 3.42 financial year 2023 as compared to 3.08 in financial year 2022. Going forward, we expect growth to continue and believe the turnover from CWIP to gross block would be quicker because of greater mix of renewable capacity having a shorter gestation period.
As regard to fund mobilization, during Q4 of financial year 2023, NTPC executed a syndicated unsecured term loan of JPY 54.4 billion, equivalent to USD 400 million, under the automatic route of Reserve Bank of India's External Commercial Borrowing, ECB, regulations. Average cost of borrowing in financial year 2023 was 6.40% as compared to 5.94% for financial year 2022.
In financial year 2023, we have incurred a CapEx at the group level of INR 35,204 crores as compared to INR 35,719 crores in the previous year. The standalone CapEx of NTPC in financial year 2023 was INR 24,597 crores as compared to INR 21,036 crores in the previous year. Cumulative expenditure of INR 9,279 crores has been incurred on the development of coal mines till 31st March 2023. On a standalone basis, capital outlay has been estimated at INR 22,454 crores for financial year 2024.
During financial year 2023, NTPC has realized INR 154,356 crores, which is more than 100% of the billed amounts. Trade receivables were INR 15,964 crores, excluding unbilled revenue, as on 31st March 2023, which are equivalent to 36 days of sales in comparison to 45 days of sales as on 31st March 2022.
During financial year 2023, INR 8,440 crore bills were discounted with banks up against INR 8,800 crore discounted during financial year 2022, and bills discounted as on 31st March 2023 stood at INR 1,287 crore. Few other highlights are as under. NTPC Group already has an operational renewable energy capacity of 3.2 GW, and the total RE capacity in the pipeline has exceeded 20 GW with various agreements in place. Diversified RE portfolio, NTPC is entering hydrogen and energy storage solution in a big way.
To this effect, recently, work for hydrogen hub at a place called Pudimadaka in Andhra Pradesh was initiated. A storage tender for 9,000 MWh has been floated. NTPC Limited completed consolidation of its RE energy portfolio under one umbrella NTPC, that is NTPC Green Energy Limited, on twentieth February 2023.
The transactions comprised of transfer of 15 RE assets through a business transfer agreement and the transfer of 100% equity shareholding of NTPC Renewable Energy Limited, NREL, a wholly owned subsidiary of NTPC, through a share purchase agreement. This scheme has been implemented as a part of the corporate business plan of the group to provide an impetus for its focus on achieving 60 GW RE capacity target by financial year 2030.
NVVN, the trading subsidiary, transacted 31 billion units during financial year 2023 as against 24 billion units during financial year registering a growth of around 29%. A non-binding MoU has been signed with Government of Andhra Pradesh for development of a hydrogen hub at Pudimadaka, near Visakhapatnam.
The project will involve establishment of manufacturing facility for hydrogen related equipment, production and export of green hydrogen, ammonia, green chemicals, et cetera. Of the several MoU signed by NTPC and its subsidiaries, a few are highlighted here.
NTPC Limited and Nuclear Power Corporation of India Limited have signed a supplementary joint venture agreement to collaborate and cooperate in the field of development of nuclear power projects, which shall help the country in meeting the clean energy commitments to achieve net zero emission target by 2070.
Initially, the JV company shall develop specialized heavy water reactor projects at Chutka, Madhya Pradesh atomic power project, two into 700 MW, and Mahi Banswara, Rajasthan atomic project, four into 700 MW, which were identified as a part of the fleet mode nuclear projects. NTPC Green Energy Limited signed MoU with HPCL and IOCL for supply of round-the-clock renewable power for their requirements. NREL has signed MoU with Indian Army for setting up green hydrogen project in Army establishment.
This agreement ushers in a new era of border security packed with energy security for the defense forces of the country. NREL has signed term sheet with Greenko ZeroC Private Limited, a Greenko Group company, to supply 1,300 MW round-the-clock RE power for powering Greenko's upcoming green ammonia plant at Kakinada, India. The agreement between the two companies is one of the world's single largest for supply of round-the-clock renewable supply for an industrial client.
NTPC has been ranked number one independent power producer and energy trader globally in the S&P Global Commodity Insights top 250 global energy company rankings 2022. NTPC has been bestowed the Most Iconic Organization award in the World Manufacturing Award ceremony by the World Manufacturing Congress. The award recognizes the leveraging of people's practice in CSR initiative for success and future readiness. NTPC received the ninth PSU IT award under the organization category.
This award has been given to NTPC for its digital transformation strategy to be a digital enterprise. NTPC has been presented the Green Ribbon Champions Award for its commitment to sustainability. Green Ribbon Champions is an initiative of Network18 Media House to facilitate the prominent players across industries for significant contributions through their initiatives and projects across sustainability, afforestation, biodiversity, waste management, renewable energy and more.
These are some of the key highlights I wanted to share with all the participants in this earning conference call before we begin the question answer session. Thank you so much for the patience with me. 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 one on their touch-tone telephone. If you wish to remove yourself from the question queue, you may press star two. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is from the line of Mohit Kumar from ICICI Securities. Please go ahead.
Yeah. Good evening, sir. Thanks for the opportunity. As good performance is profitability during the year. My first question is, how are you thinking about the monetization of renewables portfolio? Have you dropped the idea of strategic stake sale? If yes, what are the reasons and the way forward? If no, can we expect the monetization strategic sale to happen in this fiscal year?
No, we, there was a definite plan for monetization of the RE assets. You may be aware that NTPC also ran a process for partial stake sale, minority stake sale in the NGEL. However, despite some participation, the stake sale strategy could not materialize due to various reasons. However, going ahead, we would still like to, we have distinct plan of either going for IPO route or some kind of strategic sale initiative very soon.
This is very much on card considering the fast pace of expansion we are expecting on RE and it will be needed, and it will also help to unlock our RE business. Only the question like timeline on our readiness and the market scenario, which we'll share with you from time to time.
Sir, my second question is on the capacity addition. Capacity addition has been the lower side in last fiscal. We commissioned 3 GW, 1.3 GW of coal-based capacity and 1.7 GW of renewables. Can we expect slightly better number in FY2024 and FY2025? Can you give us a breakup between cost of portfolio and renewables capacity of the capacity commissioning?
We had a commercial capacity addition in financial year 2023 to the tune of 1,506 MW as far as standalone basis. Including our subsidiaries, JVs, it stood at 3,952 MW. 3,952 MW. Going ahead, we'll have a capacity addition target of close to 4,600 MW in the financial year 2024. Sorry. 3,580 MW during financial 2025 and 2,424 MW in financial year 2026.
This is purely on the conventional power. As far as renewable side is concerned, I can quote a collective figure of close to 16 GW over the next three years. Depends on the pace of implementation. 16,000 MW would be there. If you broadly divide over three years, it would be around INR 4,000-INR 5,000. It will differ from year to year basis.
One clarification. Do we have 16 GW PPA for all the renewable capacity which is coming? Or do you expect to tie up some of the capacity or, yeah?
All this 16 GW is as a clear visibility. This will be implemented by NGEL and NREL. This capacity, what we are saying is based on the tenders already won and the bilateral tie-ups, this definite bilateral tie-ups which we have with different entities.
Okay, understood, sir. Thanks and all the best. Thank you.
Thank you. The next question is from the line of Apoorva Bahadur from Goldman Sachs. Please go ahead.
Hi, sir. Thank you for the opportunity. Sir, if you can please share your CapEx plans for the year 2024 and 2025 as well, that will be very helpful.
Yeah.
The CapEx plan is the capital expenditure for 2022-2023 was INR 22,454 crores.
That was the target.
That was the target. Against that, we have achieved close to INR 24,500 and INR 24,000 crores. Let me tell you on the CapEx front, we have actually achieved INR 24,597 crore against a target of INR 22,545.4 crore, which is 110% of the target. That is standalone basis. As a group, we have achieved-
Excuse me, sir. There is a cross connection in your line. I'll just mute your line and reconnect, sir. Ladies and gentlemen, we thank you for your patience. We have reconnected with the management. Sir, you may proceed.
Yes. We have been discussing about the CapEx.
Yes, sir.
Let me start again. In the just concluded financial year, 2022-2023, our target was INR 22,454 crore. Against that, we have achieved INR 24,597 crore, which is 110% of the target. That is NTPC standalone basis. As NTPC group, our target was INR 26,562 crore. Against that, we have achieved INR 35,204 crore, INR 35,204 crore, which is 133% of the target.
For the next financial year, that is 2023-2024, which is the current one, our target for NTPC standalone remains as INR 22,454 crore, and our group target is INR 28,373 crore, and we are confident we'll be achieving these targets this year also. Going forward, for the next financial year, NTPC standalone is INR 24,701 crore. 2025, 2026 is INR 31,142 crore. 2026, 2027 is INR 34,096 crore. The group capacity, group CapEx, we'll tell you later because we are still consolidating with NEEPCO and THDC. Thank you.
Sure, sir, my second question is on the MoU with the AP government. Can you please share any tentative timelines for this project?
Yeah. The timelines for the AP project are broadly separated in the MoU. The idea is that about 50% of the capacity we'll try to do by 2026, and the balance by 2030. That's the broad idea in the MoU. That depends on when we get all the clearances and when we actually start, put the shovel in the ground.
We have signed offtake agreements with the customers, sir, for hydrogen and ammonia?
No, no. That's still under discussion.
Okay. Fair enough. Sir, second question is, like you highlighted that there is a high likelihood or the intention is to do an IPO or a stake sale in the renewable business. I wanted to understand post any such event, will NTPC standalone entity be able to borrow and pass on the debt to the renewable entity, or will it have a separate balance sheet of its own?
I think it's very simple. It'll have a separate balance sheet of its own. It already has.
We have already done the consolidation of business in the RE business into NGEL. The idea is that NGEL, and for that matter NREL, the subsidiary, would be raising funds on the strength of its balance sheet only.
Okay. Okay. Fair enough, sir. Sir, couple of housekeeping questions, if you can just share the fixed cost under recovery, surcharge income and PLF incentive numbers?
Fixed cost under recovery is around INR 400 crores this year, and our PLF is around 76% this financial year. It's around 5% more than last financial year.
Sir, incentive. PLF incentive.
INR 515 crore.
INR 515 crores.
Okay. Thank you.
INR 515 crore.
Yeah. Got it. Thank you.
Thank you. The next question is from the line of Subhadip Mitra from Nuvama. Please go ahead.
Thank you for the opportunity. My first question is with regard to if you could tell us what the adjusted PAT number is for fourth quarter and as well as for financial year?
Yeah. The adjusted PAT for Q4 would be INR 4,895 crores. This compares favorably, if you see the Q4 for financial year 2022, which was INR 4,570. It is a 7% growth over the last year.
Okay. For the full year?
For the full year, the figure is INR 16,314 crore compared to last year figure of INR 14,910 crore. An increase of approximately 9%.
Okay, understood. Secondly, with regard to the renewable projects, you did mention that you're looking at about 16 GW of projects, you know, which are targeted to come by FY2026. If you could throw a little bit more light on, you know, the breakup of these projects. You know, what kind of tie-ups they already have and, so on and so forth.
Yeah. See, just to give you a breakup of the whole, our presence right now. We have 3.3 GW of capacity already commissioned. 4.6 GW is under execution through this PPA available and construction contracts are awarded. Another 12.6 GW is in the pipeline, where we have either won the bids or LOAs received, PPA signed, or a joint venture agreement signed, term sheet have been signed, consent received. These are different categories that will constitute around 12.6 GW.
That adds to around the 16 GW. From a technology mix point of view, this would be a ground mount of solar tentatively from around 12 GW-14 GW. Floating solar would be around 1 GW. Wind, we are targeting around 4 GW-5 GW. It will also, we are also exploring some small hydro. The combination of all this will constitute and as we go ahead, we will be able to sum it up better.
Understood. With regard to the ministry's announcement of, you know, bidding out 50 GW of renewable projects in the current fiscal, what's your feel in terms of the on-ground progress? Are we actually seeing a lot more tenders coming up? What would be the mix of these tenders? Because what we've been hearing is there are a lot more round-the-clock kind of tendering that is happening with more storage-based bids. If you could help us with that as well.
Mr. Bhargava, CEO of NGEL, will take on this question. Over to Mr. Bhargava.
Subhadip, the detailed breakup of the bid trajectory and the bid numbers has already been issued by the government. At 50 GW has been broken up among the four companies to bring out the bids. I think I don't have anything specific to add to what that breakup is. You are right.
A big part of that is expected to be RE RTC and quite a few also hybrid as well. The idea is that since that is what the state governments want more, so we need to focus on those kind of bids as well. We are awaiting the final changes in the bid documents as of now to start the bid process. That should happen soon. We can expect the rest of the bids.
Understood. At least from your perspective, you feel quite confident that, you know, that 11 GW, 12 GW per quarter kind of a target at least has been set out, that seems to be achievable.
Yeah, that seems to be achievable in terms of bidding.
Of course. I guess we'll have to go step by step, right? You start with bidding and then the execution picks up.
Yeah. You know the drill in any case.
Perfect. Perfect. Lastly, with regard to the module procurement side, you know, is there any particular strategy that you're looking at? Because, right now, as while we understand that, yes, imports are allowed and ALMM has been pushed, over the long term, you know, many players are getting into their own module manufacturing and otherwise. What is the strategy that you are looking at over there?
We are looking at sourcing modules on longer term. I mean, to answer your question, which you have been asking earlier also, we are not looking at manufacturing right now. We do, we are in the process of finalizing the bid process for long-term sources, maybe two or three years, so that we can tie up on a long-term basis.
Understood. One last question, if I can slip in. With regard to the RTC projects, where do you see the market moving in? Would it be more of battery storage with, wind, or do you see the pump hydro, part of the business really picking up?
No. Right now we are going with whatever storage is the most cost competitive. The one we have right now is pump storage. Going forward, the bid we have issued for 9 GWh , there again, it's technology agnostic. It'll depend on what kind of bids we receive, what the numbers are. Accordingly, we keep on deciding.
Understood. Thank you so much, sir.
Thank you. The next question is from the line of Bharanidhar Vijayakumar from Avendus Spark. Please go ahead.
Good evening, sir. Can you give the equity invested in the operational renewable projects of 3.2 GW, and also equity invested in under construction projects of 4.6 GW, and how much more to be invested in those projects?
I don't have a ready figure, you can take a ballpark figure. As you know.
You can take a capital expenditure of around INR 5.5 crore and a 20% equity on that. We gave you a breakup of under construction as well as commission capacity.
The INR 5.5 crore will not be applicable for earlier projects, right? Like, which are older, so that's the reason why I'm asking.
If we leave the two operational. The earlier capacities have come from a different model of feeding tariff. Now going ahead, whatever is the plans, they indicated numbers were for the forthcoming projects only.
Correct, sir. That's why I'm asking for the 3.2 GW operational projects which are earlier, projects, and will have a different, cost.
Look, broadly, the sense is that, barring the very initial projects which were at a much higher cost, most of these projects have now, of course, we are doing close to about INR 1 crores- INR 1.5 crores per megawatt kind of equity. Just to give you broad sense, NGEL equity base is close to INR 5,000 crores as of now.
Okay. My second question is on the CERC regulations for the next five-year block. Is there any discussions going on regarding the regulated returns? Could it be revised upward, downward or any sense on that front?
Well, it's true that, you know, some kind of consultation is happening. It's too early to say any numbers at this present point of time. It should be very speculative.
Okay, sir. My final question is on the bidding in the renewable projects. At least my sense for FY 2023 is that it was around about 15 GW. Is it possible that in 2024 it could reach 50 GW or could it be much lower than the target? Could it be like, say, 20 GW-25 GW?
I can only answer this from what the government has stated, that they want to have a trajectory of doing about 15 GW of bidding per year for the next five years. I can't probably throw light more than that right now.
Sure, sir. Thank you and all the best.
Thank you. The next question is from the line of Dhruv Muchhal. Please go ahead with your question.
Yes, thank you so much. My first question was on the renewables. Over the last one, one and a half year, we have got a decent portfolio of C&I renewables, which includes probably likes of ReNew Power and HPCL, BPCL and others. If you can probably speak something about this. What is our current portfolio in terms of the overall size?
For how much is the term sheet signed? By term sheet, I mean, that means that the projects will surely be done. How do you see the growth in the next two, three years from this particular segment, this specific segment, sir, please? Thank you.
If you're looking at C&I, and for the moment I'll also include railways in this.
Yeah.
We've already signed agreements/term sheets/PPA, for about 2.5 GW of RE RTC power.
Okay. How does this 12.6 GW, you know, equates to the earlier number that you mentioned? 3.3 GW is commission, 4.6 GW is under execution, 12.6 GW is in the pipeline.
Yeah. Pipeline includes what has already been signed and under planning where we have already either issued the tenders or we are in the process of issuing the tenders. That's broadly the overall thing. What we are working on is a total pipeline of about 20 GW, comprising of 3.3 GW operational, 4.6 GW under construction, and balance 12.6 GW for which planning and implementation is on progress.
Of this 12 GW, 2.5 GW is for which you have signed the term sheet and everything is ready.
Okay. Let me make it clear. 2.5 GW of RTC power actually corresponds to close to around 8.5 GW of actual capacity on the ground because you have to set up solar and wind and storage to supply this level. When I say I've signed term sheet for 2.5 GW RTC, I will actually develop close to 8 GW of solar plus wind and storage to meet this requirement.
Okay. How do you see growth in this segment in the next two, three years? I mean, some color that you can, you know, provide in terms of new customers that you're looking at. How are you know, looking to target new set of customers?
We are definitely looking at C&I, and this is the C&I. Once people have known that we have been able to sign on on large deals and we have the capability to execute large deals. I'm sure people are getting the message. We already are in the discussions with other guys. Probably not the right time to disclose the name and the numbers, but we have, we are having discussions with a lot of other people.
Got it. Sure, sir. Thank you so much. The second question, sir, was on the financials. If I do the console minus standalone numbers, the standalone, the subsidiary, the remaining, you get the subsidiary numbers. The numbers look extremely low. The, I mean, the revenue and EBITDA has declined significantly versus the QOQ levels, I mean the 2Q, 3Q levels. Is there any significant one-off in the subsidiaries or JVs?
The only factor which separates it is this year we have been able to get more dividend compared to last year.
I was seeing before the other income. I'm excluding the other income. It is just the sales numbers and the revenue and the EBITDA number. While depreciation interest costs are all similar, the other numbers are very low.
THDC PAT is INR 672.85 crore.
Oh, wow.
Can you repeat your question once again so I better get it?
I'm looking at the subsidiary performance on a EBITDA level. For that, I've done consolidated minus standalone EBITDA, and the numbers look lower than what you have been doing historically. I understand there was this Navin Agnija and others have moved to standalone, but even adjusting for that, the numbers look low.
See, one factor which I see here is. We just backed off, LPSC everywhere.
No, I'll take it offline from Ritesh. Thank you, sir.
Yeah. Probably we'll analyze it better and give you a very cogent explanation.
Sure, sure, sir. Thank you so much. Bye.
Thank you. The next question is from the line of Nikhil Nigania from Bernstein. Please go ahead.
Yeah, thank you for the opportunity. I just had questions regarding the contract with Greenko for the RTC 1,300 MW. My first question was, would it be possible to share the tariffs and the tenure of the contract signed with them?
Probably not right to share the tariff number. Tenure is 25 years.
Got it. The second related question was, Green hydrogen costs are expected to come down in the coming years. Does the term sheet allow the buyer to exit at some point in the future or is it binding for this 25 years?
No, it's binding for 20 years and review at the end of 20 years. Within 20 years there is no exit.
Understood. Understood. That's all. Thank you so much. Yeah.
Thank you. The next question is from the line of Nikhil Abhyankar from ICICI Securities. Please go ahead.
Good evening, sir, and thanks for the opportunity. Basically I wanted to understand what are new capacity addition plans, thermal, in the next two years, and what is the pipeline that we have right now?
I think-
And by thermal pipeline, I mean thermal tenderings, the new plants that you have ordered. Will order new plants.
Well, as far as thermal is concerned, we are broadly targeting around 6 GW, 7 GW.
7 GW in how many years?
I am, when I say 6 GW, I'm leaving out Talcher where the LOA has already been placed.
Mm-hmm.
Abou 1,320 MW?
Megawatt.
1,320 MW. You can add another 6,100 MW, which will comprise of five different projects, mostly on the expansion. This would, we are expecting that much of this would be awarded by the end of the current fiscal.
In FY 2024 itself, most of the orders?
Yeah.
Okay. The other question is, can you just give me the revenue EBITDA and PAT for the entire renewable portfolio for FY20 23?
We can give it to you separately.
Okay, sir. No problem. Thank you.
Thank you. That was the last question for today. I would now like to hand the conference over to the management for closing comments. Over to you, sir.
Thank you very much on behalf of NTPC and my colleagues here, for participating in this, earning conference and, raising some very pertinent questions. Wherever, we have assured, to provide information separately, we'll be doing that at the earliest. Thank you so much.
Thank you. On behalf of JM Financial, that concludes this conference. Thank you for joining us. You may now disconnect your lines.