Moderator: Good afternoon Ladies and Gentlemen - Ntpc

More documents

Recommendations

Info

6 of 20Mr. A.K. Singhal: Had it started, it would have been commissioned.Mr. Ravindranath Naik: Okay.Mr. A.K. Singhal: We would have declared it as commissioned.Mr. Ravindranath Naik: Okay sir. Sir, what is the PLF of the Vindhyachal Power Plantright now.Mr. A.K. Singhal: For commercial reasons, we do not give the individual station wisePLF.Mr. Ravindranath Naik: Okay sir anyway this tax on staff cost has grown upsubstantially. So do we expect any sort of pass through of this increased cost in thetariff?Mr. A.K. Singhal: Definitely staff cost is on account of wage revision which is due from1 st January 2007. And as per the provision of the regulations, any increase in the salaryconsequent to the wage agreement, it will be allowed as a pass through cost under tariff.Mr. Ravindranath Naik: Okay so when, if already, any pass through has happenedor…Mr. A.K. Singhal: Had it happened we would have definitely disclosed that, it is purelya provision which we have made.Mr. Ravindranath Naik: So when should we expect this pass through to happen in thisquarter.Mr. A.K. Singhal: Once the wage agreement is made with the union and associationsand wage settlement takes place, only after that we can go back to the regulator and getthe tariff refixed.Mr. Ravindranath Naik: Okay, okay thank you very much sir.Moderator: Thank you Mr. Naik. We have our next question from Mr. Atul fromCitigroup, Mr. Atul please go ahead.Mr. Venkatesh: Sir this is Venkatesh from Citigroup. Firstly, if you see over the lastcouple of quarters your effective tax rate as a percentage of PBT has been somewhere20% to 23% why it has been suddenly shot up to somewhere around 35% given that theSEB bond income you do not have to pay any tax, any particular reason for the tax rateto go up this high.Mr. A.K. Singhal: See one thing you must remember that in case of NTPC taxes whichwere recoverable from customers were shown separately as tax recoverable. If you lookat our tax liability which we have shown, our tax expense is Rs.9.585 billon as againstRs.5.259 billion in the corresponding quarter of previous year. Out of this our direct taxliability is only Rs.2.021 billion as against Rs.1.369 billion in the corresponding period so…
7 of 20Mr. Venkatesh: So if it is not true about the first two quarters of this year , then why isthe first two quarters tax up?Mr. A.K. Singhal: Well I am coming on to that. In the third quarter we have got anassessment done by an Assessing Officer who has raised an additional demand of Rs.607 million, about Rs.60 Crores. Similarly, if you go to the 9 months period, our directtax liability has gone up from Rs.2.941 million to Rs.4.405 million that is from Rs.294 toRs.440 Crores. As you may see there has been a growth of 6.43% in our other incomein the 9 months period. Further, our income from the tax free bond has come downwhereas income from the fixed deposit with the bank has gone up, because of thatreason there is slight increase in the tax liability. Otherwise, there has not beensubstantial increase in the tax liability of NTPC which is to be taken directly by us.Mr. Venkatesh: Sir, I have another question with your venture with BHEL and someother related questions. First of all does this equipment manufacturing JV includesmanufacture of boiler turbine generator also. If it is so, what is the likely capacity of theBTG facility. Are you looking for manufacturing a BTG facility. And secondly, given thefact that time and again we keep hearing newspaper reports where NTPC has beensaying that one of the primary reasons why their CAPEX is not going on time is becauseof BHEL. And finally you end up with BHEL! NTPC has been forced to form a JV withBHEL, Why would NTPC not look at any other foreign partners?Mr. A.K. Singhal: You see so far as our MoU or joint venture agreement which we havesigned with BHEL is concerned, at this first stage, I cannot share much details with you.Let the company be formed and then the board of the company would decide whichequipment to be manufactured, which equipment not to be manufactured. Coming on toyour second question regarding the blame to be passed on to BHEL, it is notcorrect .Wherever they have delayed we have said that supplies have been delayed byBHEL. And once when we are going with BHEL to form a joint venture, it is with a viewto create more competition and more capacity in the country. We are going into jointventure to supply to the state electricity boards who will be setting up the power projects.Similarly, on these principles we are going with BHEL to setup a manufacturing facilityand take up the EPC jobs.Mr. Venkatesh: Okay sir and lastly on your, again once again in interviews with NTPCthere are talks about NTPC and Bharat Forge JV, now what exactly is going to be donein this JV.Mr. A.K. Singhal: At this moment, it is difficult to comment on this, unless we actuallysign an MOU and sign a joint venture agreement.Mr. Venkatesh: Thank you sir.Moderator: Thank you for your question sir. We have our next question from Mr.Abhishek Tyagi from CLSA, Mr. Tyagi please go ahead.Mr. Rajesh: Good afternoon sir, I am Rajesh here.Mr. A.K. Singhal: Good afternoon Mr. Rajesh.
Page 1 and 2: 1 of 20NTPC LIMITEDInvestors/Earnin
Page 3 and 4: 3 of 2019.899 billion for the quart
Page 5: 5 of 20Mr. A.K. Singhal: Yeah.Mr. S
Page 9 and 10: 9 of 20Mr. A.K. Singhal: Yeah it is
Page 11 and 12: 11 of 20Mr. Prasad: Okay so even if
Page 13 and 14: 13 of 20the RFP. Hopefully very soo
Page 15 and 16: 15 of 20increase in the price of el
Page 17 and 18: 17 of 20Mr. Ketan: Alright sir, alr
Page 19 and 20: 19 of 20Vishal Khandelwal: Okay.Mr.
Page 21 and 22: 21 of 20

Moderator: Good afternoon Ladies and Gentlemen - Ntpc

You also want an ePaper? Increase the reach of your titles

Delete template?

Save as template?