Ultra Tech Cement to acquire JP plant today

Ambika Sharma

Tribune News Service

Solan,June 28

Ultra Tech Cement will take over JP Cement plant tomorrow. The firm has deposited all dues and upfront payment to the Mining Department to complete the process.

The company, to take control of JP Cement’s plant at Baga, deposited Rs 194 crore as upfront payment for the transfer of the mining lease of 331.42 hectares land to the department yesterday.

The move follows approval by the state government to transfer the mining lease for the land in Baga, Bhalag, Samtyari and Sehnali villages in Arki. The land included 107.0803 hectares private land and 224.3437 hectares government land, including forest land. The state government has given its consent for about Rs 300 crore deal.

About Rs 74 crore, which included Rs 44.26 crore royalty, Rs 9.97 crore as contribution towards the National Mineral Exploration Fund and Rs 14.96 crore as contribution towards the District Mineral Exploration Fund, was received by the department this evening from Ultra Tech Cement and a request was made to furnish the NOC.

About 4,000 truckers are awaiting their pending freight charges of Rs 28 crore which have been unpaid for the last four months.

Minister, Industries, Mukesh Agnihotri said a tripartite agreement between the Director, Industries, and the managements of Ultra Tech Cement and JP Cement would be signed tomorrow and this would pave way for the official takeover of the company by Ultra Tech Cement.

He said the Ultra Tech management would deposit Rs 28 crore prior to this agreement to clear the pending dues of the 4,000 truckers.

Ultra Tech Cement had executed the deal in Rs 1,600 crore and the state government will receive Rs 300 crore in lieu of various dues.