Friday, August 30, 2013

Govt to earn Rs 1,300 crore from sale of CCI's 4 non-operational units

CCI's Nayagaon plant, MP
IN A bid to mop up more resources, the government is planning outright sale of four non-operating units of Cement Corporation of India (CCI). The sale is likely to fetch over...
Rs 1,300 crore. A part of the capital will also be used for strengthening CCI's present functioning units.
Set up in 1965, CCI comes under the ministry of heavy industries and public enterprises with the government having 100 percent shareholding in the PSU.
Out of a total 10 units, the PSU’s seven units are currently non-functional.
The CCI has recently come out with an an advertisement to invite the Expression of Interest (EoI) for an outright sale of these non-operating units. The sale would be done through an e-auction process without having any existing liability and with no restriction on post-sale use. These units are Akaltara (Bilaspur, Chhattisgarh), Kurkunta (Gulbarga, Karnataka), Mandhar (Raipur, Chhattisgarh) and  Nayagaon (Neemuch, Madhya Pradesh).
The reserve price for Akaltara unit is Rs 183 crore, for Kurkunta unit, the reserve price has been fixed at Rs 259 crore; for Mandhar it is Rs 419 crore and for the Nayagaon unit the reserve price has been fixed at Rs 460 crore. Already, a number of companies have evinced keen interest in these units since those are located in prime areas.
The SBI Capital Markets has been appointed as the merchant banker for this purpose.
The Board for Industrial and Financial Reconstruction (BIFR) had constituted the Assets Sale Committee to expedite the sale process.
These units are located in areas where there are rich mineral reserves, and that can be used for the plants. The CCI's corporate office is located in New Delhi.
The CCI is engaged in manufacturing of cement through its three units located in Assam, Himachal Pradesh and Andhra Pradesh.

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