The flagship company of MP Birla Group, Birla Corporation Ltd, announced that the Government of Rajasthan has rejected its bid for the Gourum Khan Ki Dhani (South) limestone block despite being declared the preferred bidder earlier. According to the company's regulatory intimation, the Department of Mines and Petroleum, Government of Rajasthan, through an order dated December 31, 2025, rejected the bid under Clause 14.11 of the Tender Document. The limestone block covers an area of 499.6394 hectares. The company received information regarding the rejection on January 2, 2026, at around 12.49 p.m. IST.
The company had been declared the preferred bidder on June 13, 2025 by the Government of Rajasthan, Director of Mines and Geology. This status was awarded based on Birla Corporation's highest final price offer of 20.60% submitted for the limestone block. The company had participated in the e-auction process in accordance with applicable laws and tender conditions, complying with all procedural requirements including the deposit of applicable upfront payment within prescribed timelines.
According to the government order, the final price offer of 20.60% submitted by Birla Corporation was found to be comparatively lower than the bids received in auctions of other similar limestone blocks in the region. Despite being the highest bidder in this particular auction, the government exercised its powers under the tender document to reject the bid based on regional price comparisons. The Department of Mines and Petroleum acknowledged the company's compliance with all procedural requirements, including the upfront payment deposit.
Birla Corporation stated that it is examining the matter to determine the future course of action, including the possibility of legal recourse. The company further clarified that the disclosure requirements under the relevant SEBI master circular are not applicable to this development. On Friday (January 2), shares of Birla Corporation Ltd ended at ₹1,108.70, down by ₹1.40, or 0.13%, on the BSE.
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. This development impacts the company's strategic planning for raw material security in its cement manufacturing operations.
