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.

NTPC , India's largest power producer, has announced an ambitious ₹7 lakh crore investment plan and revised its capacity target upward to 149 GW by FY32, signaling a significant expansion across various energy segments. The company shared these plans during its 21st Annual Analysts and Institutional Investors Meet held on August 18, 2025.

Capacity Expansion and Investment Plans

NTPC has revised its capacity target from 130 GW to 149 GW by FY32, demonstrating its commitment to meeting India's growing energy demands. The company plans to invest ₹7 lakh crore across various energy segments, including renewables, nuclear, and energy storage.

In the first quarter of the fiscal year, NTPC added 2,716 MW of capacity, marking the highest quarterly addition in the company's history. Year-to-date, the company has commissioned 3,050 MW, already surpassing 75% of last year's total addition of 4,000 MW.

Financial Performance

NTPC achieved a record generation of 439 billion units in FY25, with a standalone profit of ₹19,649.00 crore. The company declared a total dividend of ₹8.35 per share, representing 42% of its profit. This includes an interim dividend of ₹5.00 and a proposed final dividend of ₹3.35 per share.

Renewable Energy Push

The company has set an ambitious target of 60 GW renewable capacity by 2032, a significant increase from its current 8 GW. This push towards renewables aligns with India's commitment to clean energy and reducing carbon emissions.

Nuclear Power Ambitions

NTPC plans to enter the nuclear power sector aggressively, targeting 30 GW of nuclear capacity by 2047 through joint ventures. The company is advancing two key initiatives in the nuclear domain:

1. ASHVINI: A joint venture with NPCIL developing four 700 MW reactors in Rajasthan
2. NPUNL: A newly formed subsidiary dedicated to harnessing advanced nuclear technologies

Financing and Operational Efficiency

The Reserve Bank of India has approved a $1 billion External Commercial Borrowing (ECB) facility for NTPC's capex requirements, providing additional financial flexibility. The company's coal mining production reached 46 million tons, showing a 28% year-on-year growth, with a target of 50 million tons for the current year.

Innovative Energy Storage Solutions

NTPC is pioneering in energy storage solutions, including:

• A 160 MWh CO2-based storage system at Kudgi
• Battery energy storage systems (BESS) co-located with thermal power plants to optimize power distribution and grid stability

Green Hydrogen and Chemicals

The company is making significant strides in green hydrogen and chemicals, with plans for a green hydrogen hub at Pudimadaka involving an investment of approximately ₹85,000.00 crore. This initiative aims to position NTPC as a key player in the emerging green hydrogen economy.

NTPC's comprehensive investment plan and diversification into various clean energy technologies underscore its commitment to leading India's energy transition while maintaining its position as the country's largest power producer. The company's focus on a balanced energy mix, including thermal, renewable, and nuclear power, along with innovative storage solutions, positions it well to meet India's future energy needs sustainably.