With new scheme, Gujarat NRE sees hope to ramp up production

With its newly designed scheme to settle creditors' claims and revive the company, debt-ridden Gujarat NRE Coke Limited eyes scaling up production at its met coke plant in Bhachau, Kutch from the current 15 per cent utilisation to 60 per cent within a year of the implementation of the proposed scheme of repayment.

Company's metallurgical coke plant in Bhachau in Gujarat has the installed capacity of 6 lakh tonnes per annum, which is currently operating at 15 per cent capacity.

"We have two plants in Gujarat one at Khambhaliya near Jamnagar and another in Bhachau in Kutch. While Khambhaliya plant is in shut down condition for past 3 years, we expect to scale up the production at Bhachau plant from 15 per cent utilisation to 60 per cent if the proposed plant gets approved by the creditors," said Arun Kumar Jagatramka, CMD, Gujarat NRE Coke.

The company employs about 125 people at Khambhaliya and about 550 people at Bhachau plant. Gujarat NRE Coke has a third plant in Dharwad in Karnataka, which employs about 450 people.

"The weakness in consuming industries of steel and automobile had impacted company's financials. They were responsible for causing financial stress in the company. But now we see demand revival in the sectors of steel and automobile. This indicates towards a good future prospects," said Jagatramka adding that the proposed new scheme will undergo voting at a joint meeting of shareholders, creditors and FCCB holders on July 16 at its headquarters in Kolkata. The scheme, proposed by the company under section 230 of the Companies Act 213 to revive the company, will require sanction of the National Company Law Tribunal- Kolkata Bench.

"Post implementation of the scheme, the company is expected to generate profits and start repayment of the debt as well as service interest to the secured lenders from the first year itself," said Jagatramka.

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