Guj NRE down 2% on decision to scrap Andhra unit plan

Moneycontrol Bureau

Gujarat NRE shares slipped around 3 percent on reports of the company scrapping its coke unit plan in Andhra Pradesh due to weak demand. The Kolkata-based firm has returned the 250 acres of land back to the government.

Last year, the firm acquired land for the plant and also completed the public hearing in respect of environmental clearances required for the project but weak demand led to this situation

In 2008, the firm had intended to set up a new coke making unit near  in Nellore district of Andhra Pradesh. The project cost was around Rs 350 crore was expected to produce 1 million tonnes of coking coal per year.

Gujarat NRE Coke is the only Indian company with coking coal mines in Australia having over 650 million tonnes of coking coal resources with excellent coking properties.

 

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