REG - OPG Power Ventures - GST (Goods and Services Tax) Rate Revision on Coal

OPG Power VenturesAnnouncement

22/09/2025 07:00

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RNS Number : 1469A  OPG Power Ventures plc  22 September 2025

22 September 2025

 

OPG Power Ventures Plc

("OPG", the "Group" or the "Company")

 

GST (Goods and Services Tax) Rate Revision on Coal

 

OPG Power Ventures plc (AIM: OPG), a leading developer and operator of power
generation assets in India, announces that with effective from 22 September
2025, the GST rate on coal in India will be increased from 5% to 18%.
Simultaneously, the ₹400 per tonne compensation cess previously levied on
coal is expected to be abolished and subsumed within the new GST rate. The
overall impact on the tax burden for coal is dependent on the Company's
specific import and domestic procurement mix.

Impact on Power Sector

The thermal power plants using imported coal as a primary fuel source are
expected to see an increase in their generation costs post the increase of GST
in coal. Prior to this increase, the power companies were paying 5% GST plus a
₹400 cess per tonne of coal, which was not available to be claimed back as
an input credit. Following the abolishment of the cess. companies will remain
unable to claim input credits due to electricity being outside GST under the
new 18% GST regulations.

OPG's Coal Positioning

OPG's Indian power plants rely on coal as a primary fuel source and the
Company is closely monitoring these changes in GST rate. Under the revised GST
framework and based on OPG's current coal procurement mix, management expects
an annual coal cost increase of approximately £2.5 million due to these GST
changes..

 

For further information, please visit www.opgpower.com or contact:

 

 OPG Power Ventures PLC                                              Via Tavistock below
 A P Singh

 Cavendish Capital Markets Limited (Nominated Adviser & Broker)      +44 (0) 20 7220 0500
 Stephen Keys/Katy Birkin/George Lawson

                                                                     +44 (0) 20 7920 3150

 Tavistock (Financial PR)
 Simon Hudson / Nick Elwes

 

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