NTPC to set up a coal subsidiary soon to handle mining operations
Staterun, NTPC will soon set up a subsidiary to handle its coal mining operations and also plans to enter commercial coal mining after meeting its...
New Delhi: State-run, NTPC will soon set up a subsidiary to handle its coal mining operations and also plans to enter commercial coal mining after meeting its requirement, an official said.
The power sector behemoth also has a plan to list the coal subsidiary subsequently on stock exchanges. “The NTPC will set a coal subsidiary. It would cover operations of its all coal mines and will be run like a coal company. It will have a culture of coal mining. This will help in recruiting professional and have a different cadre which would eventually help in their career progression,” the official said on the condition of anonymity.
The power PSU has been allotted 10 coal mines to meet its fuel requirement of which work has been started in five mines. “NITI Aayog has already given its approval for setting up a separate subsidiary for coal mining business. Finance Ministry's approval has been sought for the purpose.” The official further said that there is a possibility of commercial coal mining at a later stage.
“The company will sell coal to others from these coal mines in open market. But that will happen only after the NTPC meets its owns requirement. Thereafter, the surplus would be sold in open market.” The official said that the subsidiary will be listed on the bourse at a later stage. NTPC has been allotted 10 coal blocks with geological reserve of over 7.3 billion tonnes and production potential of about 111 MMTPA.