Image Source: Skmishraindia, Public domain, via Wikimedia Commons
Mumbai- NTPC Limited‘s Board of Directors, approved a partial modification to its plan to hand over its coal mining operations to NTPC Mining Limited (NML), a wholly-owned subsidiary, during a meeting on August 28, 2025.
The board meeting commenced at 6:30 p.m. and concluded at 8:45 p.m. on the day of the announcement.
The transaction involves the transfer of the Coal Mining Business, comprising six coal blocks/mines and all related assets and liabilities, to NML.
This will be conducted in a phased and progressive manner, conditional upon the satisfaction of specific precedents outlined in the amended Business Transfer Agreement (BTA).
The transfer is structured as a slump sale, with the business being transferred as a going concern.
Financially, for the fiscal year 2024-25, the coal mining business proposed for transfer contributed ₹7,735.54 crore to NTPC Limited’s total revenue, representing 4.05% of the consolidated revenue of ₹1,90,862.45 crore.
The coal mining company’s net worth as of March 31, 2025, was ₹3,150.98 crore, or 1.72% of NTPC Limited’s total net worth of ₹1,82,881.09 crore.
The initial purchase consideration for this transfer is proposed at ₹10,503.27 crore as of 31st March 2025. This amount is subject to completion adjustments as per the terms of the Amended BTA.
When each coal mine or block is transferred, NTPC Mining Limited (NML) will gradually transfer the acquisition consideration to NTPC Limited.
The agreement for sale is expected to be entered into on or before 30th September 2025. The completion of the sale/disposal is anticipated to occur within 365 days from the date of signing the Amended BTA, pending the receipt of all applicable statutory approvals and clearances.
As NML is a wholly-owned subsidiary of NTPC Limited, this transaction is classified as a related party transaction. However, it is being carried out at “arm’s length”, based on the book value of the Coal Mining Business from the Audited Financial Statements as of 31st March 2025. Both the Audit Committee and the Board of Directors have given their approval to the transaction.
NTPC’s Regulatory fillings:
Ritu Arora, the company secretary and compliance officer, signed this declaration in accordance with SEBI (Listing Obligations and declaration Requirements) Regulation 30 of 2015.
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