The Rajasthan High Court has granted a partial relief to Birla Corporation Ltd – the flagship of M.P. Birla Group – by allowing it to remove 70,000 tonnes of already excavated limestone from the mining area at its Chanderia unit in Rajasthan.

The Court, has however, directed Indian Bureau of Mines to conduct inspection and various tests with regard to the mining activities and its effect on the Chittorgarh Fort and submit a report within one month. The matter will be listed for hearing in January 2012, the company said in its notification to the BSE on Thursday.

Birla Corporation had suspended limestone mining at Chittorgarh following the Court's order on August 27, 2011. The Rajasthan High Court had ordered to stop mining within 10 km of the Chittorgarh Fort.

“The mining of limestone at the Chanderia plant had to be suspended following the order of the Rajasthan High Court. The matter was heard on December 19, 2011 and the Court has granted partial relief by allowing the company to remove 70,000 tonnes of already excavated limestone from the mining area,” the company's notification to the BSE said.

Birla Corporation has varied business interest in cement, jute goods, PVC floor covering, auto trim parts and iron and steel casting. The company has an installed cement manufacturing capacity of 6.46 million tonnes a year through seven cement plants in Madhya Pradesh, Rajasthan, West Bengal and Uttar Pradesh. Limestone is one of the key raw materials for cement production.

The disruptions at the Chanderia unit dragged down the company's cash profit by over 53 per cent to Rs 47 crore (Rs 102 crore) during the July to September quarter this fiscal, according to a recent press release from the company on its performance during the quarter.

shobha@thehindu.co.in

comment COMMENT NOW