Nava Bharat Ventures has received an approval whereby the board has decided, in principle, to explore the possibility of restructuring the Odisha works to impart long term viability. The board proposed to explore segregation of the ferro alloy and power operations by constituting separate SPVs and inducting strategic investors who would have captive mineral resources.
The board of directors also approved to offer equity to these strategic investors in the ferro alloy SPV and in the power SPV to make them captive units for the investors, under the prevailing regulations. The company is in process of identifying the investors and evaluation of restructuring options are in progress.
The operations of Odisha unit of the company, comprising ferro chrome operations and captive/independent power generation have been affected, on and off, by regulatory restrictions concerning sale of power and supply of chrome ore aside from un-remunerative merchant power rates and volatility in ferro chrome market.
