GOCL Corporation announced that Coal India (CIL) in a letter dated 2July 2024 to IDL Explosives (IDL), a wholly owned subsidiary of the Company, has communicated IDL being barred for award of any contract / order by CIL or its subsidiaries for a period of two years. However, this will not affect the current running contracts (RC) which are effective up to May'25 for supply of cartridge explosives and accessories; and up to October'25 for supply of bulk explosives respectively. This action was due to not meeting a tender condition of stipulated local content in the supplies.

The Board of Directors of the Company has at its meeting held 04 July 2024 deliberated on this matter, noted that there was inadequate domestic supply of ammonium nitrate (the main raw material of explosives), resulting in an unavoidable kind of situation which necessitated its import for making uninterrupted supplies to CIL.

The subsidiary, IDL is s confident of having a strong case to represent to the appropriate authorities in CIL and is optimistic to get a mutually favourable outcome.

The Board has further noted that there would be no immediate impact on account of the aforesaid matter on the operations or financials of the Company or its subsidiary.