REVOKING BANK GUARANTEE FOR COAL BLOCK
The Delhi High Court has stipulated that the Union Government should give Kesoram Industries Ltd (KIL) a 3-day notice before it revokes the performance bank guarantee provided for its coal block joint venture.
KIL said on Tuesday in a filing to the stock exchanges that the Delhi High Court fixed the hearing of its writ petition on April 14.
The Central Government “deallocated” the coal block allocated to the three-way KIL joint venture — Gondkhari Coal Mining Ltd — last November. The block is located in Maharashtra. The Centre had ordered forfeiture of the performance bank guarantee submitted by Gondkhari.
KIL said the Delhi High Court “has indicated in an order that the writ petition (filed by KIL) will be listed on April 14.
“Further, if the bank guarantee is to be revoked, the High Court has stipulated that the Central Government is required to give a three-day prior notice to the Company,” KIL said. The joint venture was incorporated in June 2009 “for working a coal block allocated” to it by the Central Government in November 2008.
Gondkhari was to have started coal mining operations during financial year 2014-2015, KIL said. Some of the coal output was intended for use by its cement plant in Karnataka.
Kesoram Industries Ltd reported a net loss of Rs 43.91 crore in the third quarter to December 31, 2012 against a net loss of Rs 152.20 crore in the last fiscal’s corresponding quarter. In the first three quarters, the diversified BK Birla group company has registered a net loss of Rs 13.12 crore, significantly down from Rs 321.71 crore in the first 9 months of 2011-12. Net loss in the last fiscal was Rs 395.32 crore.
Losses in the tyre division continue, though they are declining. During the Q3FY13, its loss was Rs 35.17 crore against Rs 182.05 crore in Q3FY12.