"Gujarat NRE Coke can double prodn if resolution approved"

Met coke producer Gujarat NRE Coke Ltd facing liquidation today said, with the uptick in the coal market, the company has the ability to double production and turn profitable within a year's time.

"Currently, we are producing 25,000-30,000 tonne of met coke from two plants at low capacity as the company is under liquidation. But, if the resolution submitted by me is approved, production could be easily be doubled and will be operationally profitable within a year," the company's Chairman and Managing Director A K Jagatramka said here.

Gujarat NRE Coke has two metallurgical coke plants in Khambhalia and Bhachau in Gujarat and its third plant is in Dharwad in Karnataka.

After the company failed to get any suitor for liquidation, Jagatramka has submitted a scheme under Section 230 of the Companies Act to revive the company with an upfront cash outgo of Rs 50 crore.

The scheme will require consent with at least 75 per cent voting in favour of secured creditors, FCCB holders, unsecured creditors and shareholders. The meeting is scheduled on July 16.

The job of some 1,100 jobs are hanging in balance and can be saved if the resolution is cleared.