Shapoorji Pallonji Agri Management services, an affiliate of the $2.5 billion Shapoorji Pallonji group, will shortly exit the joint venture-- Bharat Renewable Energy Limited-- it floated with State-run Bharat Petroleum Corporation (BPCL) and Hyderabad-based Nandan Cleantec Limited (erstwhile Nandan Biomatrix Limited).
Each of the partners has an equal stake in the joint venture.
Bharat Renewable Energy Ltd (BREL) was formed in 2008 to undertake the cultivation and plantation of horticulture crops such as Karanj, Jathropha and Pongamia, trading, research and development and management of all crops and plantation including Bio-fuels in the State of Uttar Pradesh, with an authorized capital of Rs 30 crore.
"The Shapoorji Pallonji group has recently indicated their intention to exit the joint venture and have offered their holdings to the existing promoters in the proportion of their current shareholding," BPCL said in its annual report.
"The Shapoorji Pallonji group has recently indicated their intention to exit the joint venture and have offered their holdings to the existing promoters in the proportion of their current shareholding," BPCL said in its annual report.
A senior BPCL official said, "We have conveyed to the Shapoorji Pallonji group to hold on till we find a suitable buyer for their stake. Shapoorji Pallonji has agreed."
BREL recorded a turnover of Rs 0.41 crores for the financial year ending 31st March, 2013 and incurred a loss of Rs 2.13 crores, as against a miscellaneous income of Rs 0.05 crores and a loss of Rs 1.85 crores in the previous year.
BREL's mandate was to undertak plantation of Jathropha in 1 million acres (4,04,686 hectares) of marginal land, and producing 1 million tonnes of Bio-diesel with an investment of Rs 2,200 crores over the next 10-15 years.
BPCL said the total plantation already covered is 8,987 acres (3,637 hectares) of wasteland and further plantation work is in progress.
