11th September 2014
OPG Power Ventures plc
("OPG" or the "Company")
Indian nationwide coal blocks allocation judgement announced is not applicable to OPG's coal supply
OPG (AIM: OPG), the developer and operator of power generation plants in India, notes the reference in the Indian press of a judgement issued by the Supreme Court of India, the country's apex court, to render as illegal and arbitrary the process by which the allocation of various coal blocks has occurred since July 1993. These 218 coal blocks, many of which are not operational, have been allocated to private and public sector companies by the Government of India ("GoI").
OPG is not affected by these developments as no coal blocks have been allocated to OPG and, as such, the Company does not own or operate any domestic coal blocks. Rather, OPG procures its domestically sourced coal for both locations (Chennai and prospectively Gujarat) from operating mines being run by Coal India Limited, a GoI controlled company. Guided by the GoI's New Coal Distribution Policy (2007), OPG's domestic coal quantities are sourced under a linkage awarded to OPG by the Coal Ministry and coal supplies typically commence shortly after project commissioning.
Around one third of OPG's coal currently comes from domestic sources and OPG continues to receive the agreed upon quantities of domestic coal from Coal India Limited. Accordingly, the Board does not anticipate anyimpact upon OPG's operations as a result of these recently reported developments.
About OPG
OPG is operating and developing power projects in India under the group captive model with 270 MW in operation and a further 480 MW under development. In the year ended 31 March 2014, the Company's revenues were £99 million, EBITDA £31 million and EPS 4.1 pence.
For further information, please visit www.opgpower.com or contact:
OPG Power Ventures PLC |
+91 (0) 44 429 11 211 |
Arvind Gupta |
|
V Narayan Swami Ajay Paliwal |
|
|
|
Cenkos Securities (Nominated Adviser & Broker) |
|
Stephen Keys / Mark Connelly / Callum Davidson |
+44 (0) 20 7397 8900 |
|
|
Tavistock Communications |
|
Simon Hudson / James Collins |
+44 (0) 20 7920 3150 |
