Nearly a year after acquiring the assets of Durgapur-based Mining and Allied Machinery Corporation (MAMC); the consortium of BEML, Coal India Ltd and Damodar Valley Corporation (DVC) is closing in on setting up the joint venture. BEML will manage the JV, named MAMC Industries Ltd, with 48 per cent equity share.

While equipment major BEML will have three directors (including the managing director) on the board, CIL and thermal power utility DVC will have one director each.

The operations of MAMC Ltd, once a major heavy industry in the state, were suspended almost a decade ago and the assets were transferred to the official liquidator with a total liability of Rs 2,800 crore in 2003. In June 2009, the BEML-CIL-DVC consortium acquired the assets from the High Court appointed liquidator at a consolidated sum of Rs 100 crore.

The sale included plant and machinery of MAMC at Durgapur in West Bengal; MAMC assembly facility at Nagpur in Maharashtra; the service centre at Dhanbad in Jharkhand and guest houses and offices in Kolkata and Delhi.

“The consortium has reached consensus on the equity structure of the JV. The draft shareholders agreement and the memorandum and articles of association are already finalised. The venture is expected to be in incorporated in a month,” a CIL source told Business Line . Confirmations in this regard were also available from DVC.

According to the source, MAMC Industries is slated to manufacture underground mining machinery and material handling equipment, which would find a ready use in thermal power stations (of DVC) and coal mines (of CIL). With 26 per cent stake each, both DVC and CIL can describe the joint venture as a subsidiary and place orders on preference basis.

“The three partners have already reached an agreement to launch a techno-economic study on the product planning and the capital expenditure required to start operations,” the source said.

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