The coal mining business generated revenue of Rs 4,012 crore in FY23, and contributed 2.25% to NTPC’s total revenue during the period.
NTPC Mining is a 100% subsidiary of NTPC Ltd. It was incorporated by the company in 2019, for undertaking the mining business.
NTPC will receive Rs 7,795 crore from the transfer of the coal mining business. This is based on the book value, payable through a combination of cash/equity shares/debt liability, the company said in an exchange filing.
The company is likely to enter into an agreement to hive off the business by August 10. It expects to complete the transfer of the business in 6 months from the date of the execution of the agreement, subject to receiving all the statutory approvals for the same.
The coal mining business comprises 6 coal mines and all related assets and liabilities are being hived-off from NTPC’s books to NTPC Mining Ltd.
The decision of hiving off the coal mining business was taken along with the quarter earnings of the company. The power producer reported a 9.4% year-on-year (YoY) rise in net profit for the quarter ended June to Rs 4,066 crore. Revenue from operations, however, declined 2.3% YoY to Rs 39,122.25 crore.
NTPC produced 6.24 million tonne coal in the quarter, compared to 4.10 million tonne a year ago. The plant load factor (PLF) at coal units across India improved to 70.38% from 69.23% a year ago.
On Friday, shares of NTPC ended nearly 4% higher from the previous close on the National Stock Exchange at Rs 210.
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