NTPC Board Approves ₹2,866 Crore Revised Cost for Rammam-III Hydro Project

1 min read     Updated on 29 Aug 2025, 08:03 AM
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Overview

NTPC Limited's Board of Directors has approved a Revised Cost Estimate-I (RCE-I) of ₹2,865.56 crore for the Rammam-III Hydro Electric Power Project (HEPP). The project has a capacity of 3 x 40 MW. This decision was made during a board meeting that also addressed the partial modification of transferring NTPC's coal mining business to its subsidiary, NTPC Mining Limited (NML).

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*this image is generated using AI for illustrative purposes only.

NTPC Limited , India's largest power generation company, has received approval for a significant cost revision for its Rammam-III Hydro Electric Power Project (HEPP). The company's Board of Directors has given the green light to a Revised Cost Estimate-I (RCE-I) of ₹2,865.56 crore for the project, marking an important update in the development of this hydroelectric power facility.

Project Details

The Rammam-III HEPP is designed with a capacity of 3 x 40 MW, indicating three units each capable of generating 40 megawatts of power. This project represents NTPC's ongoing efforts to diversify its power generation portfolio and increase its footprint in the renewable energy sector.

Board Approval and Disclosure

According to the company's disclosure under Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, the NTPC Board convened to discuss and approve this revised cost estimate. The meeting, which began at 6:30 p.m. and concluded at 8:45 p.m., resulted in the approval of the new budget for the Rammam-III project.

Implications for NTPC

This cost revision underscores NTPC's commitment to the Rammam-III HEPP and suggests a thorough reassessment of the project's financial requirements. The approval of a revised cost estimate often indicates adjustments to account for various factors such as changes in material costs, labor expenses, or unforeseen challenges in project execution.

Broader Context

While the LODR data provides insights into this specific project update, it's worth noting that NTPC is also making moves in other areas of its business. The same Board meeting approved a partial modification regarding the transfer of its coal mining business to its wholly-owned subsidiary, NTPC Mining Limited (NML). This strategic decision, along with the hydro project cost revision, reflects NTPC's dynamic approach to managing its diverse energy portfolio.

Financial Impact

The revised cost of ₹2,865.56 crore for the Rammam-III HEPP represents a significant investment in NTPC's hydroelectric capabilities. While the specific financial implications of this revision were not detailed in the disclosure, such updates typically aim to ensure the project's successful completion and long-term viability.

NTPC's focus on both hydroelectric power and strategic business restructuring demonstrates the company's efforts to balance its traditional thermal power operations with renewable energy initiatives, positioning itself for the evolving energy landscape in India.

Historical Stock Returns for NTPC

1 Day5 Days1 Month6 Months1 Year5 Years
-0.98%-2.80%-2.11%+5.17%-20.09%+239.78%

NTPC to Transfer Coal Mining Business to Subsidiary for ₹10,503 Crore

1 min read     Updated on 28 Aug 2025, 09:39 PM
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Ashish ThakurScanX News Team
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Overview

NTPC Limited, India's largest power generator, plans to transfer its coal mining business to its wholly-owned subsidiary, NTPC Mining Limited (NML), through a slump sale. The initial purchase consideration is set at ₹10,503.27 crore, based on the book value as of March 31, 2025. The transfer includes six coal blocks/mines and related assets and liabilities. The coal mining business generated ₹7,735.54 crore in revenue in FY 2024-25, representing 4.05% of NTPC's consolidated revenue. The transaction is expected to be completed within 365 days from signing the Amended Business Transfer Agreement, subject to approvals.

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*this image is generated using AI for illustrative purposes only.

NTPC Limited , India's largest power generation company, has announced a significant restructuring of its coal mining operations. The company's board has approved a partial modification to transfer its coal mining business to its wholly-owned subsidiary, NTPC Mining Limited (NML), through a slump sale arrangement.

Key Details of the Transfer

  • Purchase Consideration: The initial purchase consideration for the transfer is set at ₹10,503.27 crore, based on the book value of the coal mining business as of March 31, 2025.
  • Revenue Contribution: The coal mining business generated revenue of ₹7,735.54 crore in the fiscal year 2024-25, accounting for 4.05% of NTPC's total consolidated revenue of ₹1,90,862.45 crore.
  • Net Worth: The net worth of the coal mining business as of March 31, 2025, stands at ₹3,150.98 crore, representing 1.72% of NTPC's consolidated net worth.

Transaction Structure and Timeline

  • The transfer will be executed through a slump sale arrangement, with the coal mining business being transferred as a going concern.
  • NTPC plans to enter into an agreement for the sale on or before September 30, 2025.
  • The expected completion of the transfer is set within 365 days from the signing of the Amended Business Transfer Agreement (BTA), subject to necessary statutory approvals.

Scope of Transfer

The transfer encompasses six coal blocks/mines along with all related assets and liabilities. These will be transferred to NML in a phased manner, contingent upon satisfying the conditions specified in the amended BTA.

Financial Implications

  • The purchase consideration will be remitted by NML to NTPC in a phased manner, coinciding with the transfer of each coal mine/block.
  • The initial consideration is subject to completion adjustments as per the terms of the Amended BTA.

Corporate Governance

  • The transaction has been classified as a related party transaction.
  • It has received approval from both the Audit Committee and the Board of Directors of NTPC.

Market Impact

This strategic move is expected to streamline NTPC's operations, potentially allowing the company to focus more on its core power generation business while enabling its subsidiary to specialize in coal mining activities. The transaction's impact on NTPC's financial structure and operational efficiency will be closely watched by investors and industry analysts in the coming months.

NTPC's decision to transfer its coal mining business to a subsidiary reflects the company's efforts to optimize its corporate structure and potentially enhance operational efficiency in both power generation and coal mining sectors.

Historical Stock Returns for NTPC

1 Day5 Days1 Month6 Months1 Year5 Years
-0.98%-2.80%-2.11%+5.17%-20.09%+239.78%
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