Pursuant to Regulation 30 of SEBI (LODR) Regulations, 2015 - Surrender of units namely Amelia North Coal Mine and Bandha North Coal Mine.
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Jaiprakash Power Ventures Limited has received Board approval to surrender two coal mines - Amelia (North) Coal Mine and Bandha North Coal Mine. The Amelia (North) mine is a captive coal mine serving the company's Nigrie Super Thermal Power Plant with net assets of Rs 222.16 crore. The Bandha North mine is still at the approvals stage with an investment value of Rs 92.52 crore. The company cited changes in government coal policies, poor economic viability, and significant future capital commitments as reasons for the surrender. The decision is subject to approval from lenders and other regulatory clearances.
Surrendering these coal mines reduces the company's asset base by approximately Rs 314 crore combined. While it eliminates future capital obligations and operational stress from these uneconomical assets, it may impact the fuel security for the thermal power plant if alternative arrangements are not secured. This could be neutral to slightly negative for shareholders depending on replacement fuel costs.