Date | Nov 22, 2017:
NCC rose 2.97% to Rs 110.95 at 9:35 IST on BSE after the company said its consortium with BGR Mining & Infra has received mine development contract from NTPC.
The announcement was made after market hours yesterday, 21 November 2017.
Meanwhile, the S&P BSE Sensex was up 112.44 points, or 0.34% to 33,590.79.
On the BSE, 4.06 lakh shares were traded in the counter so far, compared with average daily volumes of 5.46 lakh shares in the past two weeks. The stock had hit a high of Rs 114.80 so far during the day, which is also a 52-week high for the counter. The stock had hit a low of Rs 111.40 so far during the day. The stock hit a 52-week low of Rs 71.25 on 22 November 2016.
NCC announced that the consortium formed between the company and BCR Infra has been awarded the project relating to "mine development and operation of Talaipalli coal block" (MDO project) by NTPC. A special purpose vehicle to be formed between NCC and BCR Mining & Infra with a sharing ratio of 51:49 will execute the project. The coal production from this coal block as per the coal mines development and production agreement being entered into in this regard is expected to commence in the financial year 2019-2020.
The Talaipalli coal block, located in Chattisgarh has been allocated by the Government of India, Ministry of Coal to NTPC. The coal from this block is to be put to captive use for the 4000 megawatts (MW) Lara integrated power project being established by NTPC.
The MDO project basically comprises of major activities, i.e., mine development, coal crushing & conveyer system, excavation of over burden, conveying of coal upto rapid loading system into railway wagons, development of mining infrastructure and construction of R&R colony. The total over burden is to be removed around 1739 million bulk cubic metres (MBCM) and the coal to be extracted is 404 million tons. The project duration is 27 years including 2 years development.
The peak rated capacity of the mine is 18 million tonnes per annum to be achieved by the 5th year of commencement of operation. 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 1000 crore at current prices. The contract provides for escalation of mining fees.
Net profit of NCC declined 60.3% to Rs 20.30 crore on 33.3% decline in net sales to Rs 1300.12 crore in Q2 September 2017 over Q2 September 2016.
NCC is engaged in the construction/project activities in the infrastructure sector.
(Source: http://www.business-standard.com/)