NTPC board approves transfer of ₹7,735 crore coal mining business to subsidiary NML

State-owned power giant NTPC Limited on Thursday (August 28) said its board of directors has approved a partial modification regarding the transfer of its coal mining business to its wholly owned subsidiary, NTPC Mining Limited (NML).The coal mining business generated revenue of ₹7,735.54 crore in FY 2024-25, accounting for 4.05% of NTPC’s consolidated revenue of ₹1,90,862.45 crore. The net worth of the business stood at ₹3,150.98 crore as of March 31, 2025, representing 1.72% of NTPC’s consolidated net worth of ₹1,82,881.09 crore.

The transfer will be executed through an Amended Business Transfer Agreement (BTA), to be signed on or before September 30, 2025, with completion expected within 365 days from signing, subject to statutory approvals. The purchase consideration of ₹10,503.27 crore, as on March 31, 2025, will be remitted by NML to NTPC in a phased manner, aligned with the progressive transfer of each coal mine or block.

Also Read: NTPC Green commissions 49 MV in phase 3 of Gujarat’s Khavda solar projectThe transaction, classified as a related party transaction, is being conducted at book value based on audited financial statements. It has been approved by the Audit Committee and the Board of Directors. The transfer covers six coal blocks and associated assets and liabilities, which will move to NML on a slump sale basis as a going concern.

Shares of NTPC Ltd ended at ₹330.95, down by ₹2.30, or 0.69%, on the BSE.

Also Read: NTPC Q4 Results: Net profit rises 22.6% sequentially to ₹5,778 crore, misses estimate