Decks cleared for JP Cement’s control of stone mines; In a major relief to JP Cement, the UP government
In a major relief to JP Cement, the UP government has agreed to abide by the Allahabad High Court’s order to give the company management and control of two stone mines in Sonbhadra district. The JP group, in an open bidding in January, had acquired control of the cement plants and stone mines of the defunct UP Cements Corporation. The auction was done by the official liquidator appointed by the Allahabad High Court.
The UP State Minerals Development Corporation, another defunct PSU, had challenged the transfer of the control of the two stone mines to the JP group. The Allahabad High Court, on September 20, ruled in favour of the JP group. The court held that the mines, along with the three cement plants at Dalla, Churk and Chunar, and the two stone mines, were part of the assets of the UP Cements Corporation. The UP State Minerals Development Corporation was in favour of challenging the High Court’s order in the apex court. The cabinet, which met here today, endorsed the order of the Allahabad High Court.
JP Associates, better known as JP Cement, in an open auction acquired the UP Cements Corporation in January. JP was the highest bidder with Rs 459 core. The other bidders were Lafarge India Pvt Ltd (Rs 271 crore), Dalmia Cement (India) Ltd (Rs 271 crore), and Grasim India Ltd (Rs 271 crore).
The High Court had set Rs 271 crore as the reserve price for open bidding. Grasim India, however, backed out at the eleventh hour and did not participate in the bidding process. The three factories of UPCC are located in Mirzapur district.