NTPC Q2 FY 2009-10

Thank you sir.Next in line, we have a question from Kashish Tandon from JM Financial. You may goahead, please.Mr. Abhishek Puri:Sir, good evening, this is Abhishek Puri from JM.Mr. A. K. Singhal:Good evening.Mr. Abhishek Puri:Sir, firstly, regarding the fuel cost, I think the fuel cost has come down significantlydespite you know gas based generation higher, we presume gas rates will be much higheron a per unit basis for the power generated. Any reason why they have come down?Mr. A. K. Singhal:I would say that in the corresponding quarter last year the cost particularly of Naphthawas Rs. 63,074 per metric ton and which has come down to Rs. 36,131 per metric ton.Similarly, oil cost was Rs. 42,919 per metric ton, which has come down to Rs. 29,572 permetric ton. Similarly, gas was at Rs. 11,526 per 1000 SCM, our average cost in thecurrent quarter is Rs. 8405 per 1000 SCM. These are some of the reasons for reductionin the fuel charges although coal prices have gone up.Mr. Abhishek Puri:Okay. Sir, secondly, regarding employee expenses have come down significantly if youcompare on YoY basis or on QoQ basis. Was there an over provisioning which you havedone, which you have already mentioned, and have the final settlement being done on thesixth pay commission?Mr. A. K. Singhal:For the executives, the final 2 nd pay commission settlement has been done, for the nonexecutivesit is yet to be done. The reversal of the provision is primarily on account ofthe actuarial valuation which we did for leave encashment etc. There we considered anincrease of 40% while arriving at the valuation for 31 March, 2009. The final valuationagreed is lower i.e. total salary plus 30% increment. To that extent, we have reversed theprovision.Mr. Abhishek Puri:10