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Our Bureau

Kolkata, Nov. 6 The joint venture of BEML, Coal India and Damodar Valley Corporation (DVC) has almost finalised the proposal for asset takeover and re-opening of Durgapur-based Mining and Allied Machineries Corporation (MAMC), according to Mr V.R.S. Natarajan, Chairman of BEML.

The package would shortly be placed before the Calcutta High Court for due approval.

“The draft revival plan is near finalised. The State Bank of India has agreed to restrict the total liability to Rs 120 crore (including Rs 100 crore of principal and Rs 20 crore of interest liability) down from approximately Rs 430 crore,” Mr Natarajan said.

“We will submit the proposal before the Calcutta High Court shortly. Operation is expected to start in the first half of 2008-09,” he said, adding that BEML will hold 48 per cent controlling stake in the closed facility. Coal India and DVC would hold 26 per cent participatory interest each.

The assets of the closed MAMC are currently under the official liquidator since 2003. Once the Calcutta High Court approves the proposal, the joint venture partners would require cabinet approval for acquiring interest.

Interestingly sources in the joint venture could not confirm Mr Natarajan’s views. “So far (as) our knowledge goes, the proposal is yet to be frozen as negotiations are still on with SBI,” a source told Business Line.

The re-opening would offer BEML to expand its presence in material handling and in entering the underground mining equipment sector. DVC and coal India are buyers of such equipment.

While the reopening of MAMC would help DVC to access equipment as well as spares support for its ageing thermal power plants, Coal India would get the much needed equipment support for underground mining initiatives.

More Stories on : Alliances & Joint Ventures | Minerals | Coal | Engineering

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