Ladies and gentlemen, good morning and welcome to 3Q FY 2021 Indian Oil Corporation Limited Conference Call organized by Batlivala & Karani Securities India Private Limited. At this moment, all participants are in a listen only mode. Later, we will conduct a question and answer session. At that time, if you have a question, please press star and one. I would now like to turn the conference over to Mr. Harshraj Aggarwal. Thank you, and over to you, sir. A very good morning to all. On behalf of Batlivala & Karani Securities, I welcome you all to the post-result conference call with the management of Indian Oil Corporation. It gives us great pleasure to once again host the management for this post-result discussion. I would now like to hand over the call to the management for the initial remarks, after which we'll open the floor for Q&A. Over to you, sir. Thank you, Mr. Harshraj. We welcome you to post-results conference call. From management side, we have Mr. Sandeep Kumar Gupta, Director of Finance, Indian Oil, and Mr. Matthew Thomas, Executive Director, Corporate Finance and Treasury. Along with them, we have Mr. Rohit Kumar Agrawal, General Manager, Corporate Finance, Mr. Prabhat Himmatsingka, DGM Treasury, and myself, Avinash, Chief Manager, Treasury. To begin with, Director of Finance will briefly touch upon the quarterly performance highlights, and then he will take the questions. Now I will request Director of Finance, Indian Oil, to address the meeting. Yeah, good morning to all of you. I take this opportunity to welcome all of you to this conference call post announcement of Q3 results. First, I will touch upon certain highlights to provide additional clarity and insights. As you are aware that in the previous two quarters, the demand for petroleum products was witnessing month-on-month volatility on the back of intermittent lockdowns. During Q3, there was sustained rebound in demand of petroleum products. Refineries ran at a full capacity, and the capacity utilization was close to 102% during the third quarter. As far as demand for some of the major products are concerned, the preference for personal mobility has led to higher consumption of gasoline, that is motor spirit or petrol. During October 2020, the gasoline demand was at about 103% of last year's volume. It further improved to about 108% of last year's volume in the month of December. On the gas oil or diesel front, in the month of October 2020, sales stood at about 103% of last year's sales. However, we witnessed some moderation in gasoline demand to about 91% and 95% in the month of November and December 2020 respectively. ATF continues to take the hardest hit with sales of only 53% in October 2020 in comparison to last year's volume. However, it has improved to about 61% of last year's volume in the month of December 2020. Coming to some of the new business initiatives in petroleum retailing. In December 2020, Indian Oil has launched XP100, India's highest octane gasoline that offers better engine power and efficiency for the high-end cars, reduces greenhouse gas and tail pipe emissions. I'm glad to inform that all our refineries are now producing XP100 and it is available at 26 cities of India. We will be further expanding the network. Further, in December 2020, 5 kg free trade LPG cylinder, FTL, was relaunched with a new brand name Chhotu. Customers can buy the Chhotu cylinders either directly from the distributors or any appointed point of sales like Kirana stores, local supermarkets, retail outlets, et cetera. You would have also read in the newspaper a couple of days back that we are also now launching aviation gas, which is used by the flying clubs, which was presently imported, but now we will be producing it at our refineries. The emphasis of the management is now on product differentiation, either new products or existing products with higher specifications. During the calendar year 2020, IOC added 296 km to its pipeline network, namely 102 km Siwan-Baitalpur section of Patna-Motihari-Baitalpur pipeline and 193 km long Durgapur-Banka section of augmentation of Paradip-Haldia-Durgapur LPG pipeline project. With this, total network of Indian Oil pipelines stands at 14,864 km. Despite lockdown, 1,435 km of lowering of pipeline was achieved during the calendar year 2020. Talking about numbers, the average price of crude Indian basket during the quarter was $44.65 per barrel. This represents an increase of 4% from the average price of the immediate preceding quarter, that is Q2 FY 2021. The crack spreads for gasoline and gas oil remained weak, that was the reason for lower refining margins. As you can see, even the Singapore GRM was at $1.22 per barrel during the third quarter. However, of late, the MS cracks are now touching $3 per barrel and HSD cracks are nearing $4.5 per barrel, which is in fact a signal towards a smart recovery in the periods to come. In the petrochemical space, the spreads have improved during the quarter. Spreads for polymers in this quarter, at about $651 per ton, was 20% higher than the previous quarter, which was $541 per ton, and about 54% higher than the corresponding quarter of FY 2020, which was at $423 per ton. In case of PTA, the spread during the quarter of $146 per ton was about 25% higher than the previous quarter. The same was 21% lower than the corresponding quarter of FY 2020. With respect to MEG, the spread in the current quarter was about 33% higher than previous quarter and 69% higher than the corresponding quarter of FY 2020. This quarter, IOC has registered a profit after tax of INR 4,917 crore. We are going through a period wherein refining margins are at unprecedented low level. Our higher marketing margins on petroleum as well as petrochemicals have helped to soften the blow of low refining margin environment. Further inventory gain of INR 2,630 crore has also helped in boosting profitability for this quarter. From a nine-month perspective, the profit after tax is INR 13,055 crore as against INR 6,499 crore in the corresponding nine months of FY 2020. Higher inventory gains during the nine months, along with increase in petchem volume, as well as better margins, have contributed to increase in profits in the first nine months of this fiscal. Revenue from operations during this quarter is INR 1,46,599 crore against INR 1,15,749 crore in the preceding quarter of this year. Now let me briefly touch upon the performance of major verticals during Q3. First, refineries. The throughput during the quarter was at 17.86 million metric ton, with a capacity utilization of 101.7%. Sustained rebound in demand of petroleum products during the third quarter has helped in achieving full capacity utilization of refineries. During Q3, distillate yield was at 79.5% and fuel and loss was at 9.1%. IOCL refineries have registered a GRM of $2.19 per barrel during the current quarter. The normalized GRMs after stripping off inventory impacts and factoring in price lag for the quarter is $1.24 per barrel. Our refineries have performed in line with Singapore benchmark margin, which was at $1.22 per barrel. Coming to pipelines, the capacity utilization of our pipelines was about 92.2% during this quarter as compared to 73.4% in the Q2 of FY 2021. Resumption of economic activities post upliftment of COVID lockdown has led to increased demand for fuel and consequently improved capacity utilization of our pipelines. Our pipelines continue to generate a stable return, giving an EBITDA of about INR 1,699 crore during this quarter, which is higher than the preceding quarter on account of higher throughput. On the marketing front, the petroleum products sale during this quarter was 21.23 million metric ton as compared to 17.22 million metric ton in the preceding quarter. As discussed at the beginning of the call, with near normalization of economic activities, demand for gasoline and gas oil has picked up. On a nine-month basis, the petroleum product sales were lower in FY 2021 by about 15% only in comparison to corresponding nine months of FY 2020. The marketing EBITDA for this quarter stood at INR 7,130 crore. This includes an inventory gain of about INR 1,700 crore. The petrochemicals. During this quarter, the business reported EBITDA of INR 1,954 crore as against INR 1,211 crore in the preceding quarter. Similarly, while comparing with the current nine-month performance with that of corresponding period of last year, there has been an increase of about 77% in EBITDA. The improvement in petchem profitability is driving by a combination of increase in production volumes along with improvement in margins. In respect of borrowings, the borrowings level as on 31st of December 2020 was at INR 72,451 crore as against INR 91,505 crore as on 30th of September 2020, and INR 116,545 crore as on 31st of March 2020. The above includes lease obligation of INR 7,760 crore as on 31st of December 2020, which has been classified as borrowing. The reduction in borrowings during the quarter has been partly driven by reduction in government dues for LPG and kerosene. The outstanding receivables from government at the beginning of third quarter was about INR 9,100 crore, and that has come down to INR 4,300 crore at the end of the quarter. We are confident that the balance receivable will also get liquidated perhaps by end of this year, considering the availability of sufficient budget. Rest of the reduction is mainly attributable to reduced working capital requirement. I will end my briefing here, and now we will take your questions. Thank you very much. Certainly, sir. Ladies and gentlemen, we will now begin the question and answer session. If you have a question, please press star and one on your phone and await your turn to ask the question when guided by me. If your question has been answered before your turn and you wish to withdraw your request, you may do so by pressing star and one again. Also, participants are requested to restrict the number of questions to two at a time. We have our first question from Mr. Pinakin Parekh from JP Morgan. Please go ahead. Thank you very much, sir. Sir, my first question is on understanding the petchem business. Yes, these spreads were very high for naphtha crackers, but we also have seen a sharp increase in volumes on multiple petchem facilities. Can you give us a sense of how the petchem volumes should pick up over the next few quarters and which product categories it would be there? My second question is on the new refinery that the board has- Sorry, Pinakin, to interrupt. Actually, voice is not very clear, so you will have to repeat the first question also. Sure, sir. Sir, my first question is, if I look at the petchem business, it has seen a sharp improvement, both on volumes and margins. Margins were very strong for the naphtha crackers. Sir, I just wanted to understand better the outlook on volumes, given that IOCL has multiple petchem facilities which are under construction. In terms of how will the petchem volumes evolve over the next few quarters and which product categories will we see this? Second is, sir, more clarity on the new refinery that has been approved by the board. In terms of when would the CapEx start. Is it only going to be a pure refinery, or will it eventually involve petchem? Would the company be open to inducting partners from the Middle East into the refinery? First question. Our petrochemical facilities are largely same as of now, except that Paradip polypropylene facility is now running at around 50% to 55% capacity only. We are only regaining the volumes which were there in the last year, and that is helped by the good cracker spreads on polymers also. Going ahead, considering that our PP at Paradip is underutilized because of the shortage of feed, we are also planning to import propylene to increase the capacity utilization of our such facility. Largely, the product slate remains the same. Our new projects are still some time to get commissioned at various refineries at Barauni or Gujarat. Largely, these facilities will continue. Only thing, MEG at Paradip will come most probably in October 2021. That will get added in 2021/2022 year, which has a capacity of 357 KTA. On your question of new refinery. That is a 9 million metric ton refinery, and we have a petrochemical integration of about 5.5% there. Polypropylene facility is in phases to come up at present. We also have a plan to increase the petrochemical integration at that refinery in perhaps a second phase, but that will definitely entail more CapEx. We are looking to increase the petrochemical integration at that refinery in future. Does that answer your question completely? Yes, sir. Thank you very much, sir. Thank you. We have our next question from Sabri from Emkay Global Please go ahead. Yeah, good morning, sir, and congratulations on good set of numbers. I have three questions. The first one is relating to your petrochemical segment itself. You reported close to INR 2,000 crore of EBITDA in Q3. Looking at the spreads, there has been recovery, but we are still probably near the mid-cycle in terms of petrochemical deltas. Is it fair to assume now that the petrochemical on a sustainable basis. Of course, there will be risk regarding the global scenario. Based on the current scenario, is it fair to assume that you could be doing close to INR 8,000 crore, INR 9,000 crore of petrochemical EBITDA every year? Look, that is a factor of the spreads. Assuming that the current spreads prevail, yes, then this assumption may be a valid assumption. Our focus is on increasing the utilization of our facilities, and then the profit depends upon the cracks available. Right. Second question is on this hydrogen policy. This will be implemented. Yesterday's budget, they've stated that it will be implemented from FY 2022. You have also started some pilot regarding hydrogen CNG and also hydrogen manufacturing. I think IOCL is looking in a big way. Anything you want to add on this, what your plans are on this new hydrogen business? We have got very ambitious plan because hydrogen is considered to be the cleanest fuel. We have various plans in our R&D center, which is a flagship center among the oil industry and even in Asia, is working a whole lot of things on hydrogen. Perhaps it is too premature to divulge more details on that. Perhaps it is also too premature considering that it will have some gestation period, and the profits of hydrogen may not immediately be captured in a year or two. Okay, sir. Third question is on the LPG subsidy scenario. Right now, the prices have gone up significantly. I think Arab Gulf prices have reached around $600 per metric ton. Since six, seven months back, almost the LPG prices, both subsidized as well as non-subsidized, were somewhat aligned. Again, I think some deviation has taken place, but of course, the subsidized prices are not reflected anymore. What is the scenario right now? You have started suffering any under recovery on the LPG front compared to what it was six months ago? Right now, what would be the portion of total consumers which are getting subsidy? I mean, if you've got around 10, 12 crore customers, of which how much would be customers who would be eligible for this subsidy considering that LPG prices have gone up? Initially, post this pandemic, the prices had softened in line with the crude prices also. As you know, the LPG prices get hardened during winter months. That is why this hardening was there in recent months, and which will continue perhaps for one more month. We are seeing the prices to soften in the months forward. Since May of this year, at Delhi, there has been no subsidy, and likewise, at many places, there was no subsidy. The subsidy was only at the distant far-flung places, and for which the Government is fully compensating us. There has been no under recovery on LPG front. Considering the small volume of subsidy, there is no apprehension of the same remaining unpaid for a very long time. As I said, we are hopeful that our GOI receivables perhaps may get liquidated by end of this year. In this January also, you didn't have any major subsidy, you are saying, right? At Delhi, no. Also similar markets, no. Wherever the distant places are there only the subsidy is there, for which we lodge the claims and we book the receivables, and we are confident of recovering that very fast now. So just a very rough cut- Mr. Sabri, I would request to No, it's the same question, just one last thing. Just a very rough cut ballpark of out of your total LPG customers, how much of this would be the subsidy eligible ones would be how much on a percentage terms? I do not have that data right now, but then we can provide you separately. Okay. Thank you so much, and all the best. Thank you. We have a question from Mr. Sumeet Rohra from Smartsun Capital Limited. Please go ahead. Hi, sir. A very good morning to you. Sir, a very heartening to see our marketing performance has reported very good set of numbers of INR 7,130 crore. Stripping off the inventory gain also, we've seen very strong numbers of INR 5,400 crore. Sir, can you please throw some light on marketing, how do you expect this performance to continue particularly in this environment where people are very concerned about the government not cutting excise? That will be very beneficial for our investors to understand our marketing performance. Sir, secondly, just touching base on the point which the finance minister made in the budget yesterday regarding the asset sale of the pipeline business of IOC and other companies. Sir, it's very heartening to see that you added actually 350 odd kilometers, As you mentioned, to 14,800 km. Sir, can you please help us understand on this asset pipeline plan? Is my understanding correct that the value of four kilometer of pipeline could be about INR 6 crore-INR 7 crore, which effectively means that INR 100,000 crore could be the value of our pipeline, which is our market cap today. Your highlights on this would be very helpful to us, sir. Thank you very much. First on marketing margin. While presently the prices, because of a sharp increase in the prices in the recent past, post Saudi Aramco's announcement of 1 million barrels per day, voluntary cut up to March, the prices had hardened to some extent. We expect that perhaps post-March, this hardening of the prices may not sustain, and because the fundamentals are weak for crude oil demand. Please help me with your company name, Mr. Mark Smith. Hello. Please unmute your line. Mr. Mark Smith, am I audible? Please unmute your line. Hello, Mr. Mark Smith. Please help me with your company name. Hello? Hello? Unlocking the real worth of our assets. In that direction, this asset monetization concept of pipeline has been mooted. We will experiment initially with perhaps a small stake offloading through asset monetization route. This is only at a preliminary level. Definitely I agree with you that our assets have a huge potential, and there are a lot of investors who are looking to invest in our pipeline assets. So sir- Unlock the value of our assets. Sir, if I understand correctly, my estimate is that the value of each kilometer of pipeline is between INR 6 crore-INR 8 crore. That understanding is correct, right, sir? I would not like to put any value to that as of now. Definitely, even if you put up, say, EBITDA multiple on our pipeline, EBITDA earning, perhaps you can estimate the value of our assets. Okay, sure, sir. Thank you so much. That's very helpful, and wish you all the best, sir. Thank you. Thank you, Mr. Rohra. We have our next question from Mr. Avadhoot Sabnis from CIMB. Please go ahead. Yeah. Am I audible? Yes. Yeah. Basically, again, question relates to the new refinery. Little louder, please. Two aspects. Can you hear me now? Yeah. Okay. As I said, two aspects here. I think the press release pointed out that you may need to seek approvals of NITI Aayog and stuff like that before you start to work. Could you just clarify exactly what kind of approvals are required, and by whom, and what is the timeline you're looking at before you actually start working on the project? Sorry, Mr. Avadhoot. Actually, still your voice is not very clear. If you can be a little louder. Little slow. Little slow also. Okay. Firstly, as I said, I think the press release mentioned that you may need to seek approvals of NITI Aayog, okay, before you start to work on the refinery. If you could clarify exactly what kind of approvals are required, by which bodies for setting up that refinery, and when do you expect all these approvals to be in your hand, and as you said, when exactly you actually start to work. Hello, Mr. Mark Smith. Hello? Actually, if you want to get it done, I would assume the fastest way to get it done is putting it on your own balance sheet. Bringing in Chennai Petroleum, I can understand the sentimental logic in terms of they own the land and stuff like that. A cursory look at Chennai's own financials make it quite clear they will really struggle to put in their own contribution to it, which could create problems for you going forward. That was the second question, as to what is the logic of putting it in a JV rather than on own balance sheet. I'll stop here. First, about the approvals. Since this is a joint venture refinery, approval of DIPAM and NITI Aayog is required for putting up a joint venture by a public sector unit. These approvals will be required. As far as other statutory approvals are concerned, we already have the environmental clearance, and the consent to establish is expected very shortly. The only approvals, perhaps, which would require is DIPAM and NITI Aayog approval, and we believe this being a public sector project, it should not be a problem. You are also correct that it was perhaps not possible for CPCL to put up this project of this magnitude on its own balance sheet. That is why we have done a JV with CPCL. The debt equity is two-third, one-third, and the equity part will be contributed 25% each by CPCL and IOCL. Balance 50%, we will scout for our strategic or financial partner. Till the time we identify such partner, the balance equity will also be funded through quasi-equity instruments. That induction of a partner will take its own time in the future. Does that answer your question? Maybe I had a more philosophical question as to why are you looking for a partner in the first place? We are looking for a partner because definitely this project, we have this project, and we may also have some future projects, not necessarily refining, but also petrochemical, also renewable pipelines. We have huge CapEx program going forward. We are trying to conserve our money to the extent possible. At the same time, not stopping the CapEx plans of the company. These are generally the rationales behind doing that. Thank you so much. If I may just add, is it possible to give now the broad, just to reiterate, the CapEx figures for this year and next year? At least the broad numbers. The CapEx for this year was about INR 26,233 crore, including our JV subsidiaries. Though till December, perhaps we have done about 64% of that CapEx only. Let us see. We are trying very hard to complete that CapEx for this year. Definitely, we are not going to exceed for this year. Next year also, we expect the CapEx to be perhaps within this range of INR 25,000 crore-INR 30,000 crore. Thank you so much, sir. Thank you. Thank you. We have our next question from Mr. Vivekanand S. from Ambit Capital. Please go ahead. Hi. Thank you for the opportunity. Can you talk about the ethanol blending of fuel and blending of biodiesel now that the targets have been advanced by the government? What does it mean for us? Is it just a passthrough, or are there any implications on our CapEx and working capital, both with respect to government receipts? Thank you. Sir, even with the present blending norms, it is a pass-through, and it is going to be the same way even with higher norms of blending. No implication on the company as such. Just to clarify, sir, do we recover both the CapEx as well as the OpEx, or is it only the CapEx or OpEx? For ethanol blending, we do not put up any CapEx. We source ethanol and only blend with our fuel. That does not entail any CapEx, and the price differential is definitely a pass-through or a surrender, whatever the case may be. Right. The 2G biorefineries that we invest in, those are small projects, I understand, 2G ethanol. For that also, we get recovery from the government, is that correct? No. No recovery on those projects from government, but those projects are being put up on their own viability or strategic reasons. Okay. How do we earn return on that CapEx? I'm not able to understand. I'm sorry to press. As I said, it is both viability as well as our strategic decision to diversify into the energy basket and tap all potentials which are available. Considering our volume, those projects are of very small scale. Okay, understood. Thank you. Thank you. We have a question from Mr. S. Ramesh from Nirmal Bang Equities. Please go ahead. Good morning, and thank you very much. My first question is, can you give us some idea about the progress you're making on your compressed biogas projects, and when you'll start getting the benefit of that? How will the pricing and economics work in terms of the margins you earn on that bio-CNG? You started with the CBG, compressed biogas, I believe. Yes. Presently, we are sourcing compressed biogas from the plants which have been put up by entrepreneurs. We have our own plant in a JV. That plant is of IOT, which is our JV at Namakkal. We are sourcing CBG from there also. We are retailing presently from 15 retail outlets, and we are the only company which is retailing CBG from the retail outlets. We are also putting up our own CBG plant at Gorakhpur, that will take some time to come up. Presently, no major CapEx on CBG plants per se. As far as viability is concerned, we have guaranteed a price of INR 46 per kg for the CBG which we source from CBG plants. That is viable. Okay. In terms of the numbers we hear, what is the eventual number of CBG plants from which you will source it? Can you get a sense in terms of the volume of CBG you'll be sourcing, say, over the next three to five years? How much margin you will earn, say, per kg? That will depend upon the pace at which the CBG plants are set up. Presently, not many plants have been set up. On industry basis, more than 500 LOIs have been given for IOC, also more than 300 LOIs have been issued. CBG plants will take their own time to come up. We do not expect any sudden spurt in the CBG volumes in a short time. Just extending the thoughts on the renewable energy. In terms of your city gas distribution projects, there are big numbers being mentioned in your annual report. When do you see the benefits of your direct investments and the JVs in the CGD projects showing in your P&L and balance sheet? Can you give us some sense in terms of the volumes you expect to achieve, say, over the next three to five years in the CGD? You are mentioning about CGD, I believe, not CBG, no? This is on the city gas distribution, where you got the licenses from the PNGRB. The City Gas Distribution. City Gas Distribution, we have 17 GAs on our own, plus 23 in joint venture up to 10th round. We are having a CapEx outlay of about INR 15,000 crore. About INR 16,000 crore of CapEx. CGD penetration, at least in the domestic, is little time-taking. Like CBG, we do not expect any immediate contribution from these CGD utilities in a very short time. Okay. Just one last thought on the monetization of the pipeline assets. Have you done any preparatory work? GAIL has already got subsidiary accounting for the pipelines. If you want to bring in some financial investors there to experiment the stake sale. Do you have any similar plans to transfer some of your pipeline assets to a subsidiary? How do you plan to go ahead in terms of laying the groundwork, or a stake sale in any of your pipeline assets? In the case of GAIL, perhaps the bifurcation of GAIL was discussed for last, perhaps more than two years, and it is now materializing. In our case, it is too nascent, actually, and we will now work upon it. The idea was only that the potential of our assets must get unlocked, and then we will see to what extent we monetize our assets. It is at a very preliminary stage. That was helpful. Thank you very much. I'll join the queue. Thank you. Thank you, Mr. Ramesh. We have a next question from Mr. Amit Rustagi from UBS. Please go ahead. Yeah. Thank you, sir, for giving me an opportunity. Sir, my question relates to the pipeline monetization. We have been considering pipeline assets as one of the core for strength of our business. If you monetize some of these pipelines, don't you think that the strength of the business will get affected and competition will also get the equal edge which we have right now today? The second thing, what are we planning to do with this money? Is this money being distributed to the shareholders back in the form of dividends, or would it be redeployed back into the refining business? As I said, this is at a very preliminary stage, and we have not thought about the model which we will adopt. One model could be InvIT, and it is not necessary that we do 100% stake sale of such assets, and not necessarily all pipelines together. We may select one or two pipelines to begin with. In any case, the operation and control of the pipelines will remain with us. We will not let it go from our hands. Further, our pipelines are mostly dedicated from our facilities to the market, and in the case of product, and from ports to our refineries in the case of crude. We do not think it is of any use to the competition, because the decision to give products from our refineries is with us only. We do not think that it will have any adverse impact as far as from the perspective of competition. Sir, what we will be doing with the cash which we'll generate through this route? The purpose of asset monetization is to boost the CapEx by the CPSEs. This will help us in boosting the capital expenditure by us. If we adopt the InvIT model, yes, initially, whatever monetization we do, that will be available to us for doing further CapEx. The option is with us, to what extent we retain it for doing the CapEx or to what extent we distribute. Sir, don't you think that monetizing pipelines and then putting money in the refineries that may be a further bad decision because of the performance of the refining businesses? We haven't told that we are going to put up in refineries. No, I said we are scouting for whole lot of projects ranging from petrochemicals, renewables, hydrogen, et cetera. Definitely, we will like to put that money only in more viable projects or more profitable projects. Okay. Thank you, sir. Thank you. We have our next question from Mr. Varatharajan Sivasankaran from Systematix Shares and Stocks Limited. Please go ahead. Thank you. I have three questions. Firstly, LPG. Typically, we have seen in the past, when international prices go up, the subsidy limit for the year gets achieved and then the retail prices are increased. This time around, what we observed is that the subsidy provision still remains, and you have already started increasing the retail prices. Is there a change in the thought process of the policy? I'm sorry, I'm not able to hear you properly. Yeah. Is it better now, sir? Yeah. It's better. Yeah. Typically, for LPG in the past, what we observed is that when international prices go up, the subsidy limit for the year gets almost exhausted, and then you raise the retail prices. This time around, what we observe is that the subsidy is still there, but you already started raising the retail prices. Is there a change in policy or in thought process? Actually, the issue price of LPG is decided by Government of India. They are informing on month-to-month basis that what should be the issue price based upon the market-determined price, based on the formula which is there. As I said, since May 20, there has been no subsidy in Delhi and similar markets. At other places where perhaps deficit incidence is more, there is some subsidy which is claimable from Government of India. The change of issue price from month to month is a government issue, and that is being communicated to us. Okay. Second question on the LNG import contracts which you had in the past. Currently in Ennore, whatever you are importing is only under those contracts or also importing spot? I couldn't get you. LNG imports at Ennore. You had entered into some contracts. What is the current mix of imports? Is it all those contracts or which you have got as well? We have certain long-term contracts and we are taking gas against those long-term contracts. Are you talking about customers or talking about the sourcing of gas? Sourcing, sir. Sourcing. Yeah. We are taking gas as per those contracts. I could not understand your question properly. Is there any spot volumes as well in Ennore, sir? Pardon? Any spot volumes in Ennore? Spot volumes. Spot volumes at Ennore? Yeah. Okay. I think no. The long-term contract quantity is sufficient to cater to the Ennore demand. Okay, sir. At various ports we have is spot plus contract. That we see from time to time, which is beneficial to take at which port. Got it. it. My last question on working capital, sir. The prices of crude had actually increased in the last quarter. Is the case with the prices of products. We have had a reduction in working capital. Was there a significant destocking somewhere? Again, I think you should repeat your question, Varatharajan, because it's not being properly articulated. We had incremental crude prices go up in the last quarter, as well as product prices. You have had a fall in the working capital is what you mentioned initially. Is there a major destocking, so your volume inventory has been cut somewhere significantly as a product of crude? Yeah, you are right. Our inventory levels for both crude and products are lower than what was there as on 31st of March 2020, and that is also helping us to reduce the working capital. Would you be able to give a volume, sir? Pardon? Would you be able to give us a volume on inventory? You want volume? Yeah, that's right. As of 31st of December 2020, we have total 15 million ton as against 19 million ton on 31st of March 2020. This is crude or products? Or both? Put together. If you want breakup, that can be given separately. Okay, Sandeep. Thanks a lot, sir. Thank you. We have our next question from Mr. Manikantha Garre from Axis Capital. Please go ahead. Good afternoon, sir. Thanks for providing an opportunity. I have two questions. First one is, on the Nagapattinam new refinery, 9 million tons, which was mentioned as INR 31,500 crores of CapEx. Can you please give us what amount of that INR 31,500 crores belongs to dismantling of existing 1 million tons refinery, and what portion of this is going towards the petchem unit? That's the first question. Manikantha, I think you should come back again on this question. It is not very clear. Okay, sir. It's mentioned that the INR 31,500 crore is the CapEx for the 9 million ton refinery. Does that include cost for dismantling the existing refinery and what portion of the.. You mean to say dismantling the existing refinery? Yes. Maybe that is included in the site development expenses. I do not have it right now. That may be very small amount. Okay. What portion of this is towards the petchem unit that sir has mentioned? Petchem integration, I mentioned 5.5%, but cost thereof separately, we can give you separately. Okay. Why I'm asking this question is, sir, if I look at Paradip cost for a 15 million ton refinery, as of FY 2016, I see that it has costed us around INR 35,000 crores. I'm just trying to understand what configuration difference is there between Paradip and Nagapattinam refinery that they're envisaging currently. Okay, approval was about ten years back for Paradip refinery. Sir, final cost is INR 35,000 crores. INR 35,000 crore was the final cost, and the final cost for this could be after 5 years may be something different. Approval to approval, if we compare, this was against INR 30,000 crore Paradip. This is now INR 31,500 crore as of now, after 10 years. These details can be given you separately. Sure, sir. The second question is, can you give us the status of Ennore-Tuticorin pipeline? We plan to commission the complete pipeline by February 2022. Understood. If I can squeeze in one question here, I see that there is slight increase in LNG volumes quarter-on-quarter basis. Was there any new customer addition during the quarter? That is a regular feature, actually. If you are asking about Ennore, no fresh customer. Understood, sir. That's all from my side. Thank you, sir. Thank you. We have our next question from Mr. Vinit Joshi from Goldman Sachs. Please go ahead. Hi, sir. Am I audible to you? Yes. Thanks a lot for taking my questions. My first question is on petrochemicals. Can you give us your current capacities and the breakup between the various products? How it would look like, let's say, two, three years down the line? Perhaps this was also the first question of this con call. As I mentioned, our product slate continues to be the same as was there last year, only that this MEG will get added at Paradip in October 2021 of this year, and we mentioned 367 KTA was the capacity. Yeah. 357 KTA. Otherwise, we have presently LAB at Gujarat, linear alkyl benzene at Gujarat, PX/PTA at Paradip, and PP polymer, that naphtha cracker at Panipat. Those capacity continue as such. PP at Paradip. Again, whose utilization is less, and we plan to import propylene to increase the capacity utilization. MEG will come in October 2021. Okay. Thanks a lot for this. On the pipeline monetization plan, what kind of tax implication would that pertain to in terms of capital gains? If you can provide some directional color, in terms of if you're thinking about that in terms of driving this monetization. The provisions are already there, and you are aware of the tax provision. Those will get attracted. Now I do not have a figure, how much we will do, for which pipeline we will do, what will be the value, what will be the capital gain tax on that. I cannot give you further details on that. Definitely the tax provisions, whatever are there, have to be complied with. Okay. Last question, sir. In terms of your EV charging rollout, can you provide some color around how many stations we already have EV charging, and what's our plan for future? EV charging, exact number of stations I do not have right now, we can give you separately. That still constitutes a very small proportion of our operations. I think from a financial analysis point of view, in the immediate near, perhaps no major thing. Is there a medium-term target that we have that, let's say, five years or 10 years down the line, what percentage you would be looking to electrify? I do not have presently. We will give you separately. Okay, thanks a lot, sir. Thank you. We take a last question from Mr. Vidyadhar Ginde from ICICI Securities. Please go ahead, sir. Yeah. Thank you. My first question is, can you give the cost of your crude inventory in December? December valuation, the closing rate was $47.42 per barrel. Okay. I think in September you had mentioned crude inventories around nine million tons. Is it similar, lower? It is lower. The earlier person also wanted. You can take it down. Crude is about 7 million tons as on 31st December, which is lower from the earlier level. Yeah, significantly lower, yeah. The second question was on this polypropylene. When do you expect these issues to be resolved, and when do you expect to run the plants at full capacity? Is it because the propylene yield in the refinery is lower than expected, or is it with the expected yield also, the plant can't run at full capacity? Yeah. One was that some feedstock was being diverted towards gasoline pool, considering that gasoline demand is very robust. Second, we had a shutdown also of FCC unit at Paradip, so because of that. Even if these things are taken care of, still we have some spare capacity of PP, for which we are planning to enter into long-term contracts for propylene imports. When do you expect it to run at full capacity? The first parcel we have ordered yesterday. The first test parcel we have ordered yesterday, but that is a small volume. Based on this experience, we will then line up our long-term contracts. Okay. Sure. Yeah. The last question is on the pipeline. Is it certain that you want to follow the InvIT option, or could it also be listing the pipeline in a subsidiary and selling a small stake, but retaining a majority equity stake? Could that, or is it fairly certain that you're going to follow the InvIT option? Nothing is certain as of now, as I mentioned. This is at preliminary stage. Okay. We will look at various models which are available. Sure. Could you also consider maybe listing hiving off your petrol stations into a subsidiary and maybe sell 26%? I think that is probably your best asset. Most important asset, which is valued even in today's environment when refining outlook longer term also, there are some question marks. We've seen some transactions happen in the U.S. where 7-Eleven paid massively for some 3,900 petrol stations, though most of them are probably owned. They paid a massive amount. Could that be a possibility at some stage? Hiving off your petrol stations into subsidiaries. Presently it is not on our radar, but the possibility of any such thing to unlock the value cannot be ruled out. Okay. Thanks a lot. Thank you very much. Thank you, Mr. Ginde. I would like to hand over the call to the management team for closing comments. Over to you, sir. Thank you for participating in this con call. We look forward to meet you after the next quarterly results. Thank you. Ladies and gentlemen, this concludes your conference for today. We thank you for your participation and for using iJunxion Conference Service. You may please disconnect your lines now. Thank you, and have a great day.