Lords Chloro Alkali Ltd enters into lease agreement

Lords Chloro Alkali Limited has entered into a Lease Agreement with Varahalakshmi Infrastructure Private Limited (VIPL)("Lessor"), a related party, for the property situated at NH-8, Village Salhawas Distt. Rewari, measuring approximately 10.4 acre along with building of approx. 40,000 Sq ft to be constructed on a built to suit basis as per the civil /structured plan provided by the Company for setting up an industrial unit to manufacture Chlorinated Paraffin Wax (CPW) and other Chemical related activity for a term of 9 years.

It has been decided by the Company to terminate the said Lease deed for the following reasons:

1. CLU Approval: The Lessor has failed to obtain the Change of Land Use (CLU) approval for industrial purposes due to lack of clarity in Manesar Bawal Investment Region (MBIR) plan 2031 & 2039, which is a fundamental pre-condition for operationalizing the premises for manufacturing and warehousing of CPW.

2. Industrial Permissions: In the absence of valid CLU, the Lessee has been unable to apply for mandatory industrial approvals and licenses, including those required for manufacturing and allied operations.

3. Water Quality Deficiency: Testing of the available water supply, conducted by Lords Chloro, has confirmed that the water is Brackish and is not fit for use in the planned Chlorinated Paraffin Wax (CPW) operations.

Shares of LORDS CHLORO ALKALI LTD. was last trading in BSE at Rs. 214.50 as compared to the previous close of Rs. 207.20. The total number of shares traded during the day was 5516 in over 320 trades.

The stock hit an intraday high of Rs. 215.55 and intraday low of 210.95. The net turnover during the day was Rs. 1177605.00.

Source : Equity Bulls

Keywords

LORDSCHLOROALKALI INE846D01012 LeaseAgreement