Kolkata, January 3, 2026 – Birla Corporation Limited (BSE: 500335 | NSE: BIRLACORPN) on Friday informed stock exchanges that the Government of Rajasthan has rejected the company’s bid for the Gourum Khan Ki Dhani (South) Limestone Block, despite Birla Corporation having earlier been declared the preferred bidder in the auction process.
Bid Rejected Despite Preferred Bidder Status
In its regulatory intimation, the company said the Rajasthan Department of Mines and Petroleum, through an order dated December 31, 2025, rejected the bid submitted for the limestone mining lease under Clause 14.11 of the tender document.Birla Corporation had been declared the preferred bidder in June 2025 after submitting a highest final price offer of 20.60 percent for the limestone block, covering an area of 499.6394 hectares. However, the state government concluded that the quoted final price offer was comparatively lower than bids received in auctions of other similar limestone blocks in the region, leading to the rejection.
Procedural Compliance Confirmed
The company stated that it participated in the e-auction process strictly in line with applicable laws and tender conditions. Birla Corporation also confirmed that it had complied with all procedural requirements, including the deposit of the applicable upfront payment within the prescribed timelines, which has been acknowledged by the Department of Mines and Petroleum in its order.Future Course of Action Under Review
Following the rejection, Birla Corporation said it is examining the matter to determine the future course of action, including legal recourse. The company received the information regarding the rejection on January 2, 2026, at around 12.49 p.m. IST.The company further clarified that the disclosure requirements under the relevant SEBI master circular are not applicable to this development.
Strategic Context
Limestone is a key raw material for cement manufacturing, and securing captive limestone resources is an important element of cost control and long-term capacity planning for cement producers. The rejection of the bid removes a potential raw material source for Birla Corporation, amid strong competition for quality limestone blocks across mineral-rich states.About the Company
Birla Corporation Limited, part of the M P Birla Group, is a listed cement manufacturer with operations spanning cement and related building materials. The company operates manufacturing facilities across multiple states in India and serves a wide base of retail and institutional customers.Source:
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