The Hindu Business Line : MMTC proposes medallion, gold refining plant

Plan chart
Medallion, gold refining project to be set up under a separate JV co.
MMTC Board to deliberate on plan at meeting later this month.
EoI invited for setting up a venture for jewellery retailing as well.

Our Bureau

Kolkata, Oct. 8 MMTC Ltd has proposed to set up a gold refining and medallion-manufacturing plant at an estimated investment of Rs 100 crore. The company has also proposed to set up a jewellery SEZ.

Making a foray into the jewellery retail business is also on the company’s agenda, according to Mr A. Majumdar, Chief General Manager (Precious Metals), MMTC Ltd.

Separate joint venture

Speaking at a news conference held here on Monday to announce details of the “Festival of Gold” scheduled to be held here from October 11 to 15, 2007, Mr Majumdar said the proposed gold refining and medallion-manufacturing unit would be set up under the aegis of a separate joint venture company.

Expressions of interest (EoI) had been invited from interested parties and two companies had been shortlisted for the purpose. MMTC would probably hold 26 per cent in the proposed joint venture and the private partner 24 per cent.

The balance equity stake would be held by financial institutions and the public after an initial public offering is made.

Mr Majumdar said the proposal would have to be approved by the board of directors of MMTC and the Union Ministry of Commerce & Industry before it could be taken up.

He said the MMTC Board would deliberate on the proposal at its next meeting scheduled for later this month. The site of the proposed project is yet to be finalised. The State Governments of Haryana, Maharashtra and Karnataka have offered land for the project to be set up in these States.

Jewellery SEZ

MMTC has also invited EoI for setting up a jewellery SEZ in joint venture mode. PricewaterhouseCoopers Ltd has been engaged to prepare a preliminary feasibility report for the proposed project, which would be set up over 75-100 acres of land.

Talks in this regard have been initiated with several State Governments, including West Bengal, Karnataka and Orissa. “In whichever State we finally set up the jewellery SEZ, we shall take in the local Industrial Development Corporation as our partner in the project,” he said.

According to Mr Majumdar, EoI have been invited for setting up a joint venture company for jewellery retailing. Three major Indian retailers have expressed interest in partnering with MMTC in the proposed joint venture company that is likely to be formed “by the beginning of next year”.

MMTC’s precious metals business stood at Rs 13,300 crore in 2006-07. It is expected to go up to Rs 17,000 crore in 2007-08.

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