India: Government to sell non-operational CCI units

The government of India has announced that it plans to sell off five non-operational units of the Cement Corporation of India (CCI) as the first step towards complete divestment of the company, the Times of India reports.

"As far as CCI is concerned, non-operating units of CCI are to be disinvested first as a part of strategic disinvestment of CCI," Minister of State for Heavy Industries and Public Enterprises, Babul Supriyo, said.

The initial sell-off will involve facilities at Mandhar, Kurkunta, Bhatinda, Nayagaon, Charkhi and Dadri. A further three units – the Delhi Grinding Unit, Adilabad and Akaltara – are currently facing legal issues that need to be resolved before they too can be sold.

At present, all eight units are closed, with Bhatinda having been mothballed before it was commissioned. The plants were shut down in October 2008 as a result of financial difficulties facing the company.

The plants to be sold are small by current Indian standards, with none of the integrated units being larger than 0.4Mta in capacity, and some being less than half that size.

At present, CCI operates three plants at Tandur, Rajban and Bokajan.