BURNPUR CEMENT
LIMITED is one of the most reputed and largest integrated cement companies in
eastern region. Burnpur Cement Ltd. was originally incorporated on 19th June,
1986 as Ashoka Concrete and Allied Industries Pvt. Ltd. The name of the Company
was changed to Burnpur Cement Pvt. Ltd. on 18th September, 2001. The company
was subsequently converted to public limited company to Burnpur Cement Ltd. on
12th November 2001 and became a closely held unlisted company. It is enlisted
with National Stock Exchange (NSE) and Bombay Stock Exchange (BSE).
BCL has an
operational integrated cement plant at Patratu, Jharkhand with an installed
capacity of 0.3 million metric tonnes per annum with an investment of about 300
Crores. The plant produces the three most commonly used types of cement i.e.
OPC, PPC and PSC. The Plant has been set with the most sophisticated Technology
being used throughout the World for making Clinker i.e. Rotary Kiln Dry Process
Technology. This Environment friendly Technology reduces the consumption of
power and water, and enhances the Quality of Clinker & Cement.
In the year 2016,
the secured loan accounts of BCL was declared as NPA by the Lenders of the
Company by virtue of which the plant was in-operational for a brief period of
time. Subsequently in the year 2017, an Offtake Agreement i.e. Buying and Selling
Agreement (‘Offtake Agreement’) was signed between the Company and M/s
Ultratech Cement Limited (“Ultratech”) by virtue of which the entire production
of the Company is being sold to Ultratech. In the year, 2019, the Company was
taken into was taken into the securitization process by its secured creditor
i.e. State Bank of India and Central Bank of India under Securitisation and
Reconstruction of Financial Assets and Enforcement of Securities Interest Act,
2002 (SARFAESI Act) and accordingly State Bank of India and Central Bank of
India had assigned their debts (approx. 76% of the total secured financial
debt) to M/s UV Asset Reconstruction Company Limited (UVARCL), an ARC (Asset
Reconstruction Company) under the SARFAESI Act, 2002 through swiss challenge
method. Following the acquisition of approximately 76% of the total financial
debts. During the year 2019, UV Asset Reconstruction Company Limited by exercising
the power given under section 9(1)(a), 15 and 16 of SARFAESI Act, 2002, UVARCL
changed the management of the Company with effect from 01st October 2019.
Further in August 2022, UVARCL has also acquired the remaining 24% financial
debt of the Company from its secured creditor Punjab National Bank (Formerly
known as United Bank of India) under SARFAESI Act, 2002 resulting in
acquisition of 100% financial debt of the Company by UVARCL. As on date, the
Offtake Agreement with Ultratech is still in existence by virtue of which the
entire production of cement manufactured by the Company is being sold to
Ultratech.