JPPOWERNSEJaiprakash Power Ventures Limited· PowerHighNeutral
Announced Sat, 16 May · 17:14 IST

Jaiprakash Power Ventures Limited has informed the Exchange regarding Outcome of Board Meeting held on May 16, 2026 in which Board has approved the proposal to surrender the Amelia North Coal Mine and Bandha North Coal Mine.

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AI summary

Jaiprakash Power Ventures Limited's Board has approved the surrender of two coal mines — Amelia (North) and Bandha North — subject to lender and government approvals. The Amelia (North) Coal Mine is a captive mine currently operational and serving the company's Nigrie Super Thermal Power Plant, with net tangible assets of Rs. 129.58 crore, intangible mining rights of Rs. 78.93 crore, and Rs. 13.65 crore in capital work-in-progress, totalling Rs. 222.16 crore. The Bandha North Coal Mine is still at the approvals stage and has not commenced commercial operations, with a recorded investment value of Rs. 92.52 crore as of 31 March 2026. The surrender is driven by recent changes in government coal policies, poor economic viability, and significant future capital commitments without adequate returns, along with socio-economic factors.

Likely market impact

Surrendering the captive coal mine could increase fuel procurement costs for the company's thermal power plant, while the Bandha North mine's surrender removes a non-operating asset still in development. Overall financial impact is moderate given the assets involved are a small portion of the company's Rs. 12,721 crore net worth.