Orient Cement, a part of the CK Birla Group, has terminated an agreement with Adani Power Maharashtra Ltd (APML) to set up a cement grinding unit (CGU) in Maharashtra as the later wasn’t able to obtain necessary approvals.
“We inform that APML has requested the company to not to pursue this venture further as they are not able to obtain the required Maharashtra Industrial Development Corporation (MIDC) clearances for sub-leasing the parcel of land required for the CGU, due to some legal issues. Also, the timelines as agreed upon as per memorandum of understanding (MoU) have crossed,” Orient Cement said in a stock exchange update.
“The company has accepted the position of APML and accordingly, the said non-binding MoU stands terminated,” it added.
In September 2021, the companies had entered into an agreement to explore the possibility of establishing a CGU at Tiroda, Maharashtra. The cement company had identified a land measuring about 35 acre in Tiroda’s Gondia district, Maharashtra, and had signed an MoU with APML – the lawful lessee – for the use of the land.