Birla Corporation Ltd, the flagship company of the MP Birla Group, has informed exchanges that the Rajasthan government has rejected its bid for the Gourum Khan Ki Dhani (South) limestone block, even though the company had earlier been declared the preferred bidder for the asset.
The company had secured preferred bidder status on June 13, 2025, after emerging as the highest final price offer bidder in the e-auction conducted by the Directorate of Mines and Geology, Government of Rajasthan. Birla Corporation had quoted a final price offer of 20.60% for the limestone block, which spans an area of 499.64 hectares.
However, in an order dated December 31, 2025, the Department of Mines and Petroleum, Government of Rajasthan, rejected the bid by invoking Clause 14.11 of the Tender Document, which allows the state government discretionary powers in the auction process. According to the government’s order, Birla Corporation’s final price offer was considered comparatively lower than bids received in auctions of other similar limestone blocks in the region, forming the basis for the rejection despite the earlier preferred bidder declaration.
Birla Corporation stated that it had fully complied with all regulatory and procedural requirements during the auction process. The company participated in the e-auction as per applicable laws, adhered to tender conditions, and deposited all required payments within the stipulated timelines. These compliances were acknowledged by the concerned department during the process.
In its disclosure, the company said it is currently examining the matter and will decide on the future course of action, including the possibility of pursuing legal remedies against the rejection order.
The development is significant for Birla Corporation, which operates in the cement sector where long-term limestone security is a critical input. The rejection of the block adds to the challenges of securing additional raw material resources amid capacity expansion plans.
On the market front, shares of Birla Corporation were trading lower following the disclosure, reflecting investor concerns around raw material access and regulatory uncertainty.
