Displaying items by tag: India

India/Indonesia: India Cements has purchased an 100% share of Raasi Minerals through its subsidiary Coromandel Minerals. The Singapore-based company owns a controlling stake in several coal mines in Indonesia. No value for the transaction has been disclosed.

India: The state government of Tamil Nadu has scaled down its support for the Amma Cement Supply Scheme. Sales data shows that the scheme failed to meet its targets in 2015 – 2016 and 2016 – 2017, according to the Hindu newspaper. Its highest level of sales was 52% of procurement in August 2016. The subsidised cement scheme was launched by former Chief Minister Jayalalithaa in 2014 to help lower and middle income groups purchase cement at subsidised prices.

India: UltraTech Cement has received approval from the Competition Commission of India (CCI) regarding its bid for Binani Cement. It said that the Committee of Creditors (COC) of Binani Cements had rated Bharat Dalmia as the leading bidder instead of UltraTech Cement because it didn’t have clearance from the CCI. “A lot of apprehensions were raised by the resolution professional about UltraTech obtaining the CCI clearance, on its bid for Binani Cements,” said UltraTech Cement in a statement.

India: National Company Law Tribunal (NCLT) of Kolkata has asked Binani Cement to consider taking an out-of-court offer between the cement producer and its lenders. The NCLT has asked the committee of creditors (COC) to take up a proposal by Binani Industries, the parent of Binani Cement, to pay off all lenders' dues for 'appropriate consideration', according to the Economic Times. Binani Industries had approached the NCLT, seeking to stop insolvency proceedings after getting a ‘letter of comfort’ from UltraTech Cement, which proposed to pay US$1.11bn to help Binani pay off its debts and buy a 98.43% stake in the company.

The decision appears to pave the way for UltraTech Cement to win the on-going fight for control of Binani Cement. A consortium led by Dalmia Bharat won an auction for Binani Cement with a bid of US$974m in early March 2018. UltraTech Cement then made its direct bid to Binani Cement a few weeks later.

India: Kakatiya Cement, Sugar & Industries plans to reopen its 2.97Mt/yr cement plant at Dondapadu in Telangana following its closure on pollution grounds in October 2017. Following the installation of online SPM stack monitoring equipment and connections to the Central and State Pollution Control Board servers, the company is ‘hopeful’ that the plant will be able to restart operations by the end of April 2018. The cement producer is currently obtaining clearance from the Telangana State Pollution Control Board.

India: Anjani Portland Cement plans to build a new clinker production line at its Chintalapalem plant at Gudimalkapuram in Telangana. The plant has a production capacity of 1.16Mt/yr and this will rise to 2.31Mt/yr once the upgrade is complete. The project is expected to cost US$61m. It is scheduled to be completed by the end of 2019.

India: A public hearing for a proposed cement plant to be built by Shree Cement at Ghantikhal in Odisha has caused concern among local residents. According to a report in the Pioneer newspaper, no local people were allowed to speak at the event. The hearing was held to obtain permission from the Odisha State Pollution Control Board for the project.

India: Vijaykumar Iyer, a resolution professional with Deloitte Touche Tohmatsu India working for Binani Cement, has alleged that fraudulent transactions have taken place involving the promoters of the company. Iyer made an application in mid-March 2018 to the National Company Law Tribunal (NCLT) in Kolkata asking the court to take action and ‘appoint an appropriate investigation agency to investigate the directors of Binani Cement and the counter parties,’ according to the Economic Times. Sources quoted by the newspaper say that the application is likely to receive a hearing imminently. Binani Cement has denied the allegations.

Iyer’s application said that he had appointed Haribhakti & Co as a ‘forensic consultant’ in November 2017 for reviewing and identifying ‘suspect’ transactions. He said that since the inception of the corporate insolvency resolution process, he had not been provided access to all the required information and documents. He alleges that Binani Cement made several payments to ‘potentially related and/or connected customers and entities,’ such as Saraswati Sales (SSPL) and US$75.4m was outstanding at the end of November 2017, suggesting that sales were made to SSPL despite the fact that corresponding payments were not made to the corporate debtor. Other inconsistencies were also found suggesting that money was being removed from the business without paying outstanding debts.

Dalmia Bharat beat UltraTech Cement in a bidding war to buy Binani Cement for US$974m in early March 2018 in an auction was run by the National Company Law Tribunal under insolvency proceedings. However, UltraTech Cement has since made a US$1.11bn bid directly to Binani Cement to stop the insolvency process. UltraTech Cement has said it is ‘shocked’ by the allegations by Iyer and that it was unaware of any pending investigations when it made its latest offer.

India: UltraTech Cement has made a new US$1.11bn bid directly to Binani Cement in order to buy it. Binani’s parent company Binani Industries is independently seeking to stop the insolvency proceedings of its cement subsidiary using the money offered by UltraTech Cement in a so called ‘comfort letter.’ In a statement UltraTech Cement said it had in principle agreed to buy 98.5% of the shares of Binani Cement.

However, a consortium led by Dalmia Bharat won an auction for Binani Cement with a bid of US$974m in early March 2018. The auction was run by the National Company Law Tribunal under insolvency proceedings. Binani Cement has since complained that the bidding process was not run on a transparent process, according to the Economic Times newspaper. It added that the ‘shortcomings’ in the insolvency process had prompted the company to look at other options. The on-going struggle by UltraTech Cement and Dalmia Bharat is expected to test local bankruptcy law.

India: The Central Pollution Control Board (CPCB) has issued a show cause notice to Parasakti Cement for processing hazardous waste like battery scrap and operating without permission. The CPCB also noted that the particulate matter emissions from clinker rollers and cement mill exceeded the revised standards, according to the Times of India newspaper. The cement plant, based at Guntur in Andhra Pradesh, has been given 15 days to remedy the situation. Previously in 2016 the company said it was complying with the emissions regulations.