NTPC incorporates a mining subsidiary

NTPC has informed the exchanges about incorporating a wholly owned subsidiary that will go with the name NTPC Mining Limited and will undertake business activities related to coal mining business.

NTPC Mining Limited will pave way for NTPC to foray into commercial coal mining. NTPC also intends to list the coal subsidiary on stock exchanges. The subsidiary is set to cover maximum of the company’s coal mines business operations and run like a coal company. After receiving approval from Niti Aayog, the coal ministry has also approved the company’s proposal to setup a separate subsidiary for the coal mining business. The subsidiary’s main objective will be to sell coal from NTPC’S mines to others in the open market after meeting its self-requirements.

Currently, NTPC has been allotted 10 coal blocks, having geological reserves of over 7.3 billion tonnes and a production potential of about 113 million tonnes per annum.

The state-owned company, NTPC Limited, formerly known as National Thermal Power Corporation Limited, is engaged in business of electricity generation and related activities. The company also undertakes consultancy and turnkey project contracts which include engineering, project management, construction management and operation and management of power plants.

On Friday, the stock of the company closed at Rs. 121.70, down by 1.10 per cent or Rs. 1.35 per share. The intraday high was Rs. 123.55 and intraday low was Rs. 115.65. The 52-week high of the stock is Rs. 146.19 and 52-week low is Rs. 106.71 on BSE.