NLC India Secures First Commercial Coal Mine Through Auction, Signs Agreement for North Dhadu Western Part Mine

1 min read     Updated on 31 Dec 2025, 01:13 PM
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Overview

NLC India Limited achieved a strategic milestone by winning its first commercial coal mine through the Ministry of Coal's competitive auction process. The company signed a Coal Mining Agreement with M/s. GRN North Dhadhu Coal Mine Private Limited for the North Dhadu Western Part Coal Mine, which contains over 110 million tonnes of extractable coal reserves and has a rated capacity of 3 million tonnes per annum under the Mine Developer and Operator mode.

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

NLC India Limited has marked a significant achievement in its expansion strategy by securing its first commercial coal mine through the Ministry of Coal's competitive auction process. The Navratna public sector enterprise signed a Coal Mining Agreement with M/s. GRN North Dhadhu Coal Mine Private Limited on December 30, 2025, following a comprehensive global tendering process.

Coal Mining Agreement Details

The agreement covers the operation and development of North Dhadu Western Part Coal Mine under the Mine Developer and Operator (MDO) mode. This milestone represents NLC India's entry into commercial coal mining through the auction route, expanding its operational footprint beyond its traditional lignite mining activities.

Parameter: Details
Agreement Date: December 30, 2025
Partner: M/s. GRN North Dhadhu Coal Mine Private Limited
Operation Mode: Mine Developer and Operator (MDO)
Selection Process: Global Tendering

Mine Specifications and Reserves

The North Dhadu Western Part Coal Mine presents substantial reserves and production capacity for NLC India's portfolio. The mine contains more than 110 million tonnes of extractable coal reserves, positioning it as a significant asset for the company's long-term operations.

Specification: Value
Extractable Reserves: More than 110 Million Tonnes
Rated Capacity: 3.00 Million Tonnes per Annum
Coal Grade: G12
Mine Type: Commercial Coal Mine

Regulatory Approvals and Timeline

The project has achieved key regulatory milestones with the Ministry of Coal approving both the Mining Plan and Mine Closure Plan on November 20, 2025. However, the company is currently working to secure additional statutory approvals required for mine operations.

The pending approvals include:

  • Environmental Clearance (EC)
  • Forest Clearance (FC)
  • Other statutory requirements

Strategic Significance

This development marks NLC India's first successful bid in the Ministry of Coal's auction process, representing a strategic diversification from its core lignite mining operations. The acquisition demonstrates the company's capability to compete in commercial coal mining auctions and expand its resource base through the MDO model.

The Coal Mining Agreement was disclosed under Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations 2015, reflecting the material nature of this development for the company's business operations and growth trajectory.

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NLC India Commences Mining Operations at Pachwara South Open Cast Project

2 min read     Updated on 19 Dec 2025, 08:27 PM
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Reviewed by
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Overview

NLC India has commenced initial mining operations at the Pachwara South Open Cast Project in Jharkhand through its joint venture NUPPL. The coal block has extractable reserves of 264.84 million tonnes with a normative capacity of 9.00 MTPA, designed to fuel the 3x660 MW Ghatampur Thermal Power Plant in Uttar Pradesh.

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

NLC India has officially announced the commencement of initial mining operations at the Pachwara South Open Cast Project in Jharkhand, marking a significant milestone in the company's power generation expansion plans. The mining operations are being conducted through Neyveli Uttar Pradesh Power Limited (NUPPL), a joint venture between NLC India Limited and U.P. Rajya Vidyut Utpadan Nigam Limited.

Joint Venture Structure and Power Plant Development

NUPPL is a strategic collaboration with equity shareholding distributed in the ratio of 51:49 between NLC India Limited and U.P. Rajya Vidyut Utpadan Nigam Limited, respectively.

Parameter: Details
Joint Venture: Neyveli Uttar Pradesh Power Limited (NUPPL)
Partners: NLC India Limited & U.P. Rajya Vidyut Utpadan Nigam Limited
Equity Ratio: 51:49
Power Plant: 3x660 MW Ghatampur Thermal Power Plant
Location: Ghatampur, Uttar Pradesh

NUPPL is establishing the 3x660 MW Ghatampur Thermal Power Plant at Ghatampur, Uttar Pradesh, for which the Pachwara South coal block will serve as the primary fuel source.

Coal Block Specifications and Reserves

The Pachwara South Coal Block was allotted to the company through an allotment order by the Ministry of Coal, Government of India. The coal block, with a capacity of 9.00 MTPA, is strategically located in Dumka District in the State of Jharkhand.

Specification: Details
Coal Block: Pachwara South Coal Block
Capacity: 9.00 MTPA
Location: Dumka District, Jharkhand
Extractable Reserves: 264.84 million tonnes
Normative Capacity: 9.00 million tonnes per annum
Coal Grade: G10

The coal block was previously unexplored and required comprehensive exploration activities. NUPPL conducted detailed drilling operations across the entire block to assess the coal reserves and quality.

Mining Operations and Capacity

The Pachwara South Open Cast Project represents a significant addition to the company's mining portfolio. The project has a normative mining capacity of 9.00 million tonnes per annum, designed to meet the substantial fuel requirements of the 3x660 MW Ghatampur Thermal Power Plant.

Strategic Importance

This development aligns with NLC India's expansion strategy in the power generation sector. The integration of coal mining operations with thermal power generation through the joint venture structure provides operational synergies and fuel security for the Ghatampur project. The coal block's substantial reserves of 264.84 million tonnes ensure long-term fuel availability for the thermal power plant operations.

The commencement of initial mining operations at the Pachwara South Open Cast Project is a crucial step towards fueling the Ghatampur thermal power plant, reinforcing NLC India's commitment to expanding its power generation capabilities.

Historical Stock Returns for NLC India

1 Day5 Days1 Month6 Months1 Year5 Years
-0.65%-0.03%+3.54%+9.36%+7.43%+352.51%
NLC India
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