MOIL announced that the company has two Joint Venture Companies (JV) namely SAIL&MOIL Ferro Alloys (SMFAPL) and RINMOIL Ferro Alloys (RMFAPL).
SMFAPL was formed in 2008 under 50:50 Joint Venture with Steel Authority of India (SAIL). The objective of the JV was to set up Ferro Alloys / Manganese plant at Nandini, Bhilai (C. G.).
Due to reasons including increase in power cost, the operations are not expected to be viable.
Hence, the operations were not started in SMFAPL and as such it has been a dormant company since its incorporation in 2008.
Since the objective of the JV could not be attainted, it has been decided to close the JVC (SMFAPL). Accordingly, Board of Directors and the shareholders of SMFAPL have decided to strike off the name of SMFAPL from register of Registrar of Companies under the provisions of section 248 of the Companies Act, 2013. Since there is no operation in the JVC, there will be no impact on the performance of MOIL on account of closure of JVC.
A similar exercise of closing of RMFAPL is also under consideration / in process by both the JV partners, i.e., MOIL and Rastriya Ispat Nigam.
Powered by Capital Market - Live News
(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)