 "NTPC")
State-owned power giant NTPC on Thursday inked a business transfer agreement (BTA) to hive off its mining business, comprising six coalfields, to its arm NTPC Mining Ltd.
"NTPC Ltd and NTPC Mining Ltd (NML) have executed the BTA on August 17, 2023, in New Delhi. The BTA shall become effective upon completion of the conditions precedent mentioned in the BTA," a BSE filing stated.
On July 29, 2023, the company informed the bourses about the approval of the Board of Directors of NTPC Ltd for hiving off its coal mining business, consisting of 6 coal mines, to its wholly-owned subsidiary NTPC Mining Ltd through a Business Transfer Agreement.
The coal mining business, comprising 6 coal mines, and all related assets and liabilities are being hived-off from NTPC books to NML, it had said.
The deal was approved by the Audit Committee and Board of Directors.
The consideration of this transaction is Rs 7,794.99 crore, based on book value as per the Audited Financials as of March 31, 2023, payable through a combination of cash/ equity shares/ debt liability.
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The consideration shall be adjusted based on the revised balance sheet of the coal mining business -- on the date of completion of the transfer of the business.
Revenue from Coal Mining Business proposed to be transferred is Rs 4,011.93 crore in FY 2022-23, which is 2.25 per cent of the NTPC revenue of Rs 1,77,977.17 crore (on a consolidated basis) for FY23.
The net worth of the coal mining business is Rs. 7,794.99 crore as of March 31, 2023, which is 5.30 per cent of the net worth of NTPC i.e. Rs. 1,47,023.17 crore (total equity attributable to owners- on a consolidated basis) as of March 31, 2023.
NTPC Mining Ltd was incorporated on August 29, 2019, as a wholly-owned subsidiary of NTPC Ltd for undertaking mining business.
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