NTPC Sets Up Subsidiary To Foray Into Commercial Coal Mining
NTPC also has plans to list the coal subsidiary, NTPC Mining, on the stock exchanges.
NTPC Ltd. on Friday announced incorporation of a subsidiary, NTPC Mining Ltd., paving the way for its foray into commercial coal mining. The state-run power firm also has plans to list the coal subsidiary on the stock exchanges.
The development comes two days after India announced it will allow 100 percent FDI in commercial coal mining—a move that is seen having little impact on Coal India Ltd. and its monopoly, at least in the short term.
The government's think-tank, NITI Aayog, had last year given NTPC its approval to set up a separate subsidiary for the coal mining business. However, the approval of the coal ministry was awaited on this. NTPC has been allotted 10 coal mines to meet its fuel requirement, operations in five of them have already started.
"NTPC Ltd. has incorporated a wholly owned subsidiary in the name of 'NTPC Mining Ltd.' with Registrar of Companies, NCT of Delhi on Aug. 29, 2019, for taking up coal mining business," the company said a BSE filing. NTPC Mining will cover operations of all its coal mines and will be run like a coal company, a company official said on the condition of anonymity.
The official further said that since the coal ministry has approved the proposal to set up an arm for coal mining, the NTPC went ahead to incorporate a separate firm. He however did not give any details on NTPC Mining's listing plans.
The main objective of NPTC’s coal mining arm will be to sell coal from its mines in the open market, after meeting its owns needs.
NTPC has been allotted 10 coal blocks—Pakri Barwadih, Chatti Bariatu, Kerandari, Dulanga, Talaipalli, Bhalumuda, Banai, Mandakini-B, Banhardih and Badam—with total combined reserves of over 7.3 billion tonnes and production potential of 113 million tonnes per annum.