JK Lakshmi Cement Limited has received a cancellation notice from Assam Mineral Development Corporation Ltd. (AMDCL) regarding their Mine Developer & Operator (MDO) Agreement for limestone mining operations in Assam. The company disclosed this development through a regulatory filing under Regulation 30 of the SEBI Listing Regulations on 6th February 2026.

Agreement Details and Cancellation

The cancelled MDO Agreement was signed between JK Lakshmi Cement and AMDCL on 28th November 2025. The agreement covered drilling, excavation, transportation, and supply of limestone from the 630-hectare New Umrangso Limestone Mines, comprising 430 hectares and 200 hectares of mining area.

AMDCL had initially declared JK Lakshmi Cement as the "H1 Bidder" through its Letter of Intent dated 4th July 2025. The agreement also included provisions for setting up an integrated green field manufacturing plant for cement and value-added products within Assam territory.

Government Directive and Fresh Auction

The cancellation stems from a directive by the Government of Assam instructing AMDCL to revert the limestone mining blocks back to the state government. These blocks will now be put through a fresh auction process conducted by the Directorate General of Mines (DGM), Assam.

The limestone mines were originally allotted by the Government of Assam to AMDCL, which formed the basis for the MDO selection process. However, the state government's decision to reclaim these blocks has necessitated the cancellation of existing agreements.

Company Response and Financial Implications

JK Lakshmi Cement has announced its intention to challenge the cancellation notice before appropriate authorities. The company has indicated that this development may result in delays to the implementation of its proposed cement project.

Regulatory Compliance

The disclosure was made in compliance with Regulation 30(13) of the SEBI Listing Regulations, which requires listed companies to inform exchanges about communications received from regulatory, statutory, enforcement, or judicial authorities. Company Secretary Amit Chaurasia signed the disclosure, confirming the information provided is true, correct, and complete to the best of the company's knowledge.

JK Lakshmi Cement has received board approval for expanded plans and increased funding for its Durg cement plant project. The company has raised the total investment commitment to ₹3,000 crore, reflecting the enhanced scope and scale of the manufacturing facility.

Project Investment and Timeline

The board's decision to greenlight the expanded plans demonstrates the company's commitment to strengthening its production capabilities. The project timeline has been established with a target completion date of March 2028, providing a clear roadmap for the facility's operationalization.

Production Capacity Enhancement

The Durg cement plant will significantly enhance JK Lakshmi Cement's manufacturing capabilities upon completion. The facility is designed to achieve substantial production volumes across both clinker and cement manufacturing processes.

The plant's clinker capacity of 12.3 MTPA will support the higher cement production target of 22.6 MTPA, indicating an efficient production structure that maximizes output potential. This capacity expansion aligns with the company's growth strategy and market positioning objectives.

Strategic Manufacturing Expansion

The board's approval of increased funding reflects confidence in the project's strategic value and market potential. The expanded investment allocation will support enhanced infrastructure, advanced manufacturing technology, and operational capabilities at the Durg facility.

This development represents a significant milestone in JK Lakshmi Cement's expansion plans, positioning the company to meet growing market demand while strengthening its competitive position in the cement industry.