NCC hits 52-week high as consortium bags coal mine project from NTPC

The stock hit a 52-week high of Rs 115, up 6% on the BSE in early morning trade on back of heavy volumes

NCC hit 52-week high of Rs 115, up 6% on the BSE in early morning trade on back of heavy volumes after the company said consortium formed by it and BGR Infra has bagged coal mine project from NTPC to develop and operate around Rs 25,071 crore coal block in Chhattisgarh.

A special purpose vehicle to be formed between NCC Ltd and BGR Mining & Infra with a sharing ratio of 51:49 will execute the project. The coal from this block is to be put to captive use for NTPC's 4,000 MW Lara Power Project.

“The value of the project is estimated to be Rs 25,071 crore to be executed over 25 years and the annual revenue at rated capacity is about Rs 1,000 crore at current prices. The contract provides for escalation of mining fees," NCC said in a press release.

The peak rated capacity of the mine is 18 million tonnes per annum which is to be achieved by the fifth year of commencement of operation, it said adding that the coal production from the block is likely to being in FY'20.

At 09:30 AM; the stock was up 3.5% at Rs 112 on the BSE, as compared to 0.37% rise in the S&P BSE Sensex. A combined 4.62 million shares changed hands on the counter on the NSE and BSE so far.