NTPC Limited has transferred the Kerandari coal mine along with other mining assets to its wholly owned subsidiary NTPC Mining Limited (NML). This move, part of a strategic business transfer, aims to improve operational efficiency, enable focused coal mining management, and enhance revenue visibility under long-term agreements.
NTPC Limited, India’s leading power generation company, has approved the transfer of its Kerandari coal mine as part of its coal mining business to its wholly owned subsidiary, NTPC Mining Limited (NML). The transfer is being carried out under an amended Business Transfer Agreement (BTA) and is expected to be completed within a year, subject to statutory approvals.
The coal mining business transfer includes six coal blocks, including Kerandari, which have been progressively moved to NML on a slump sale basis. The purchase consideration based on audited financials stood at ₹10,503.27 crore as of March 31, 2025, payable in phases aligned with the transfer of each mine.
This restructuring segregates coal mining from power generation, providing NML with dedicated management focus on mining operations and entering long-term fuel supply agreements with NTPC. Four mines are already operational, with two more expected to achieve commercial operation soon, ensuring sustained coal supply for NTPC’s thermal capacity.
Key Highlights
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Kerandari coal mine transferred from NTPC to wholly-owned subsidiary NTPC Mining Limited (NML).
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Transfer executed through amended Business Transfer Agreement, completion aimed within one year.
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Transfer covers six coal blocks, including four operational mines and two under development.
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Purchase consideration of ₹10,503.27 crore payable in phases based on transfer progress.
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NML to supply coal to NTPC under CERC-regulated long-term agreements, ensuring revenue visibility and operational focus.
Sources: CNBC TV18, CARE Ratings, NTPC official disclosures