The board of Birla Corporation recommended a scheme of amalgamation, under which its subsidiary Talavadi Cements would be merged with itself.
Birla Corporation holds a 98 per cent stake in Talavadi Cements. The board proposed to merge the subsidiary firm after considering the valuation report by chartered accountancy firm Ray & Ray and a fairness opinion report by SBI Capital Markets.
Birla Corporation proposed to set up a 3-million-tonne cement plant along with a captive power unit after the merger.
Talavadi Cements is awaiting allotment of a limestone mining lease for around 2,130 hectare in Madhya Pradesh’s Satna district.
The state government earlier suggested the Union Ministry of Mines to allot the limestone mine lease to Talavadi Cements. However, the recommendation was challenged in the Mines Tribunal and the Jabalpur High Court.
In a statement, Birla Corp said all the petitions have since been dismissed but for one before the Tribunal and another before the High Court.
The company was also allotted the Bikram Coal Block in Madhya Pradesh’s Shahdol district for captive use.
The mining lease and mine plan have been approved. It currently awaits forest and environment clearances.