KIOCL Limited (formerly known as Kudremukh Iron Ore Company Limited) has received final approval to exit the 100% Export Oriented Unit (EOU) Scheme, marking a significant shift in its operational status. The Development Commissioner of Cochin Special Economic Zone (CSEZ) has granted the exit order, subject to compliance with specific conditions outlined in the Foreign Trade Policy 2023.

Exit Approval Details

The final exit order, dated August 7, 2025, cancels KIOCL's Letter of Permission No. CIL:269(82) from September 3, 1982, and the associated Green Card issued under the EOU Scheme. This change comes after KIOCL's long-standing operation under the EOU scheme, which began on October 1, 1981, for its iron ore pellet manufacturing facility in Panambur, Mangaluru.

Compliance Requirements

The approval is contingent on KIOCL fulfilling several conditions:

1. Settlement of applicable customs, excise duties, and taxes
2. Execution of legal undertakings
3. Compliance with other statutory requirements as per Para 6.17 of the Foreign Trade Policy 2023

Pending Financial Obligations

A significant aspect of this exit process is the financial obligations that KIOCL faces. The Assistant Commissioner of Customs has certified that there are four cases of confirmed demands against KIOCL Limited, involving a total amount of Rs. 36.95 crore. These cases are currently pending in various appellate forums.

Legal Undertaking

As part of the exit process, KIOCL has executed a legal undertaking with the office of the Development Commissioner, CSEZ. This undertaking commits the company to pay any penalties that may be imposed under the Foreign Trade Act, 1992.

Implications for KIOCL

This exit from the EOU scheme represents a strategic shift for KIOCL Limited. While the move may offer new operational flexibility, it also brings the challenge of addressing the pending financial demands and adapting to regulations applicable to Domestic Tariff Area (DTA) units.

The company will need to comply with industrial, locational, environmental, and other laws and regulations that govern DTA units if it wishes to continue operations in the Domestic Tariff Area.

KIOCL's management will likely focus on resolving the pending cases and ensuring smooth transition from the EOU scheme to its new operational framework. Stakeholders and investors will be watching closely to see how this change affects the company's future performance and strategic direction in the iron ore pellet manufacturing sector.

KIOCL Limited , a public sector undertaking under the Ministry of Steel, has released its financial results for the fourth quarter, revealing a mixed performance with reduced losses despite a significant drop in revenue.

Revenue Decline

KIOCL reported a substantial decrease in revenue for the fourth quarter. The company's turnover stood at ₹2.47 billion, marking a significant decline from ₹3.70 billion recorded in the same quarter of the previous year. This represents a year-on-year decrease of approximately 33.24% in the company's top line.

Improved Bottom Line

Despite the revenue setback, KIOCL demonstrated an improvement in its bottom line:

• Q4 Net Loss: ₹368.60 million
• Previous Year Q4 Net Loss: ₹430.00 million

This indicates a reduction in net loss by ₹61.40 million or about 14.28% compared to the same period last year.

Sequential Performance

Comparing the results to the previous quarter, KIOCL has shown progress in reducing its losses:

• Current Q4 Net Loss: ₹368.60 million
• Previous Quarter Net Loss: ₹477.90 million

This sequential improvement represents a decrease in net loss by ₹109.30 million or approximately 22.87%.

Financial Summary

While KIOCL continues to face challenges, as evidenced by the significant revenue decline, the company's efforts to reduce losses both year-over-year and sequentially suggest ongoing measures to improve operational efficiency and financial health. Stakeholders will likely be watching closely to see if KIOCL can build on this momentum to return to profitability in the coming quarters.