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After an year-long deliberation on the equity structure, BEML, Coal India Ltd and Damodar Valley Corporation are finally set to enter the shareholders pact on Thursday to form MAMC Industries (Private) Ltd.
The joint venture company — slated to produce mining gears and cold handling equipment for the power sector at Durgapur in West Bengal — will be incorporated immediately, according to sources.
BEML will have operational control over the joint venture with 48 per cent equity stake. Coal India Ltd and Damodar Valley Corporation will hold 26 per cent each with proportionate representations on Board. The initial paid-up capital of the venture is pegged at Rs 100 crore. The authorised capital is set at Rs 125 crore.
Sources suggest that the BEML Chairman, Mr V. Natarajan, will be the first chairman of MAMC Industries with its production facilities slated to be set up on the premises of the closed central public sector Mining and Allied Machinery Corporation (MAMC) at Durgapur. BEML will field three directors on the Board of MAMC Industries against one each by DVC and CIL.
Sources told Business Line that the venture will launch a techno-economic feasibility study on the proposed production of underground mining equipment and material handling equipment. Incidentally with 26 per cent each, CIL and DVC can claim the venture as its subsidiary procure equipment for captive use on a preferential 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,” a source said.
MAMC Ltd was once a major heavy industry in the State. But operations were suspended almost a decade ago and the assets were transferred to the official liquidator with a 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 for 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.
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