Economy & Market
Industry News Govt plans to sell six cement plants of CCI
The Union government has revived a plan to sell factories of Cement Corporation of India. The government-owned firm will now put up for sale six out of its ten cement plants-one each in Madhya Pradesh, Karnataks, Haryana, Delhi and two in Chhattosgarh.
The six plants have been referred to the Board of Industrial and Financial Reconstruction (BIFR) and the Board has constituted an asset sale committee to arrive at a valuation for the six plants. The asset sale committee is reportedly headed by chairman of IFCI. IFCI has mandated SBI Capital markets to find buyers for the six plants, which have remained closed for about a decade. The value of the six plants is estimated at Rs 1,700 crore. There have been attempts in the past to revive the six sick cement plants in 2006. The revival package had envisaged waiver of the interest on government loans, shutting CCI's ailing units and converting its loans into redeemable preference shares. However, the government has now decided to sell of the six plants.
According to CCI, the process of fixing the reserve price and finding the buyers will be done in about two months. Earlier in 2008, the government had asked for bids for sale, but the prices quoted by the bidders were too low and were therefore rejected by CCI. The total production capacity of the six cement plants is 2.65 mn tones per year. CCI employes ab988 people and its three operational plants have a total capacity of 1.4 mn tones per annum.