Arcil puts Jhagdia Copper Ltd on the block

Asset Reconstruction Company of India Limited (Arcil) has invited bids for Jhagdia Copper Ltd (JCL), the largest secondary copper smelting unit in the country, located in Gujarat.

It is estimated that at current market prices, JCL may cost over Rs 1,000 crore with an implementation period lasting two years, according to Arcil sources.

Secured creditors of JCL led by Arcil have offered the unit for sale.

Arcil acquired more than 75 per cent of the secured debt of the company from various lenders. After a recent Gujarat high court order authorising Arcil to find buyers, it initiated the strategy of exploring interest to revive the unit by credible investors.

Arcil has initiated the process by inviting bids and the last date for submission of bids is December 17.

JCL has a smelting unit in Jhagadia, which falls under Bharuch district of Gujarat, with a capacity of around 50,000 tonne per annum of London Metal Exchange grade A copper cathode with proven Swedish technology.

The plant which was commissioned in 2004 produced high quality copper cathode commanding a premium in the market.

However, due to then prevailing market conditions, it could not service its loan which was eventually classified as a non-performing asset.

Located on 75 acres of land at Jhagadia in Gujarat, the unit could directly employ around 400 people if revived, and lead to indirect employment for others, besides also generate revenue for the exchequer.

In association with the Gujarat Industrial Investment Corporation (GIIC), Arcil has initiated a process on behalf of all secured lenders to find a suitable buyer for the plant.

Several players including some globally renowned players are reported to have shown interest in acquiring JCLs assets.

JCL is the largest e-waste processing unit of its type in the country and could serve as a major solution to dispose off electronic waste and produce copper cathodes as well as precious metals.