Jaiprakash Power Ventures Limited has announced that its Board of Directors has approved the surrender of the Amelia (North) and Bandha North coal mines. This strategic decision aims to ensure the company’s long-term operational efficiency and sustainability. The surrender follows an internal evaluation regarding the economic viability and shifting regulatory landscape in the coal sector. The process will move forward pending necessary approvals from government authorities and the company’s lenders.
Strategic Decision on Coal Assets
On May 16, 2026, the Board of Directors of Jaiprakash Power Ventures Limited finalized the decision to discontinue its operations at two specific coal units. The company cited evolving government policies, economic viability, and broader sociological aspects as primary drivers for this move. The company aims to mitigate sustained financial stress and align its operations with a more sustainable long-term framework.
Details on Affected Units
The Amelia (North) coal mine served as a captive unit, providing fuel exclusively for the Nigrie Super Thermal Power Plant. As it was integrated into the power plant’s operations, it was not managed as an independent profit center. The total asset value attributed to this mine, including tangible net assets, mining rights, and capital work-in-progress, stood at ₹222.16 crore as of March 31, 2026.
The Bandha North coal mine is currently in the development phase and has not yet commenced commercial production. The company has invested ₹92.52 crore into this project to date. With the company’s total net worth reported at ₹12,721 crore as of March 31, 2026, these strategic exits are intended to optimize resource allocation and eliminate future capital commitments that do not offer commensurate returns.
Next Steps
The surrender process for both mining blocks will commence immediately, subject to receiving official clearances from relevant government bodies and obtaining necessary consent from the company’s lenders. The company will conclude all applicable administrative and legal formalities to finalize the closure of these units.
Source: BSE
