Business Standard reported that Chennai based Sical Logistics Ltd, in which Tanglin Retail Reality Developments has a share of 53.12% is planning to set up a joint venture to set up a coal washery in Talcher, Orissa, to execute an integrated contract for the movement of coal. The company is also expecting permission from relevant authorities to use its iron ore terminal in Ennore to handle alternate cargoes since the terminal could not be commercialised for iron ore transportation.
The company has sought shareholders’ approval for giving corporate guarantees or providing securities or loans or advances, and for making investments not exceeding INR 450 crore in its subsidiary or joint venture companies.
According to an announcement with the BSE, the investment shall not exceed INR 450 crore, and would be used in Sical Iron Ore Terminals Ltd, which has an iron ore terminal in Ennore Port. The investment would also be for setting up of a coal washery at Talcher through a joint venture.
The iron ore terminal project at Ennore was completed with an investment of around INR 400 crore, but could not commence commercial operations as there was a ban on the mining and transport of ore out of Karnataka region. To make the terminal operational, the management is in the process of obtaining permission from the appropriate authorities. Once the approval is in place, appropriate investments are required to be made for conversion of the existing facility.
The announcement said that “Hence an amount of INR 100 crore would be required, apart from loans or advances of INR 100 crore and guarantees towards the same to the extend of INR 100 crore to cater to the requirements of the company (Sical Iron Ore Terminals Ltd).”
Similarly, in order to set up a coal washery, it is in the process of identifying a JV and this would require an investment not exceeding INR 50 crore and further providing loans or advances of INR 50 crore and guarantees to the tune of INR 50 crore, for the venture.
Source - Business Standard
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