Displaying items by tag: Penna Cement

India: The Enforcement Directorate (ED) has filed a prosecution complaint against Penna Cement for alleged irregularities related to the allocation of land and the granting of a mining lease. The agency has also named the deceased YSR Congress chief Y S Jaganmohan Reddy, V Vijaysai Reddy, Penna Group chairman Putta Pratap Reddy and Pioneer Holdings in the case, according to the Hans India newspaper. The complaint accuses the former Andhra Pradesh state government, run by Reddy, of allocating 231 acres in Yadiki mandal of Anantapur district to Penna Cements for setting up a cement plant and officials for allowing the allocation in violation of land acquisition rules.

The ED’s complaint also says that the government at the time refused mining leases to UltraTech Cement, granted a prospecting lease to Penna Cement and was complicit in other irregularities. In return for these actions the ED alleges that Penna Group invested US$10.6m in companies owned by Reddy, in violation of money laundering regulations. Previously, the Central Bureau of Investigation (CBI) filed charges against Penna Cement, Raghuram Cements and India Cements for favours they allegedly received from the Andhra Pradesh state government in 2008 and 2009.

India: With one more cement terminal set to commence operations in November 2015 on the port premises and two more in the pipeline, Kochi, Kerala is set to emerge as a major cement hub in south India.

Cochin Port Trust sources said that the number of cement terminals at the port would go up to three with the Zuari Cement terminal set to commence operations in November 2015. This is in addition to the UltraTech and Ambuja cement terminals in operation already. Penna Cement has begun construction works and decks have been cleared for Malabar Cements to begin work on its proposed terminal. All of the terminals, excluding one, would be capable of raising their throughput to 1Mt over the years, according to Port Trust.

These terminals will not only increase income for the financially-troubled Cochin Port Trust, but also generate substantial employment involving evacuation of the cargo out of Kochi to various parts of Kerala. For every 10,000t of cement imported, the Port Trust will earn up to US$230,714/yr in both vessel and cargo related charges.

Figures show that cement throughput at the Kochi port has grown substantially between 2010 - 2011 and 2014 - 2015. Cement throughput was 2.59Mt during 2010 - 2011. It has gone up to 7.03Mt during the 2014 - 2015 financial year. Cement throughput almost doubled from 3.11Mt during 2012 - 2013 to 6.04Mt during 2013 - 2014.

India: Penna Cement Industries plans to set up a 700,000t/yr capacity grinding plant in Daund, Pune, Maharashtra. The plant will be set up on 93,077m² of land and is estimated to cost US$31.9m. Gannon Dunkerley Co will be the contractor and Walchandnagar Industries will be machinery supplier.

India: The Competition Commission of India (CCI) has closed a case of alleged cartel activity among 11 cement companies due to a lack of evidence. The companies were named as Penna Cements, India Cements, Bharathi Cements, Dalmia (Bharat) Cements, Bhavya Cements, Zuari Cements, Ultratech Cements, Jaypee Cements, Ramco Cements, KCP Cements and My Home Cements.

India: The Central Bureau of Investigation (CBI) has filed separate chargesheets against Penna Cement, Raghuram Cements and India Cements for favours they allegedly received from the Andhra Pradesh state government in 2008 and 2009. According to newspaper The Hindu, YS Jaganmohan Reddy has been accused of influencing his father, deceased chief minister of Andhra Pradesh YS Rajasekhara Reddy, to grant government benefits to firms that invested in his own companies.

The CBI allege that Penna Group had invested US$7m in Jagati Publications and US$3.5m in Carmel Asia, both belonging to YSJ Reddy. In return, Penna Cements was allocated mining leases in Anantapur and Kurnool districts and the transfer of limestone mines originally allotted to Walchand Cements. Similar deals with Raghuram Cements (now Bharati Cements) and India Cements are noted in the CBI's charges.