BEML to pick up 48 pc; CIL, DVC 26 pc each in MAMC
Bharat Earth Movers Ltd (BEML), Coal India Ltd (CIL) and Damodar Valley Corporation (DVC) have decided on stakes they would pick up in the SPV to revive the closed Public sector Mining and Allied Machinery Corporation (MAMC).
By PTI |
KOLKATA: Bharat Earth Movers Ltd (BEML), Coal India Ltd (CIL) and Damodar Valley Corporation (DVC) have decided on stakes they would pick up in the SPV to revive the closed Public sector Mining and Allied Machinery Corporation (MAMC).
"BEML would take 48 per cent, CIL and DVC will pick 26 per cent each in the SPV for the Mining and Allied Machinery Corporation revival," DVC chairman and Managing Director Asim Burman told PTI.
BEML had earlier sought 51 per cent stake both CIL and DVC pressed to retain at least 26 per cent each to maintain a certain control in the SPV.
However, BEML will be the main operator for MAMC as equipment manufacturing is not the core competence of CIL and DVC.
"We have started due-diligence process and we will submit the revival package to the court for approval to go ahead with the process," Burman said.
He said a consultant would be appointed to prepare the revival package and it would be submitted within the next 13 weeks.
The Calcutta High Court had stayed the liquidation of MAMC on a petition by a consortium of three public sector companies stating that it wanted to revive the ailing PSU.
Staying the sale of assets of MAMC, the High Court had imposed a condition that the consortium must furnish a bank guarantee of Rs 75 crore before November 20.
Currently, MAMC is closed and all employees have been separated through a Voluntary Retirement Scheme. The company's liabilities are estimated at a whopping Rs 1,800 crore.
Once MAMC is operational, BEML is likely to restart manufacturing underground mining equipment and spare parts for power plants.
Revival of MAMC will help backward integration of CIL and DVC, while for BEML, it will help in diversification into mining equipment.
Asked about investment needed for revival of the closed PSU, CIL chairman and managing director P S Bhattcharya said, "We have constituted a committee to look into details about investment after the revival package is ready".
Burman said revival of MAMC will ensure import grade coal from CIL and supply of power plant spare parts from MAMC, which are two major bottlenecks for enhancing capacity.
DVC proposes to add 6,500 MW in the next three to four years.
Bhattacharya said CIL was unable to tap underground coal due to lack of machinery from domestic makers while imported underground mining machinery was not making mining viable for the coal producer
"BEML would take 48 per cent, CIL and DVC will pick 26 per cent each in the SPV for the Mining and Allied Machinery Corporation revival," DVC chairman and Managing Director Asim Burman told PTI.
BEML had earlier sought 51 per cent stake both CIL and DVC pressed to retain at least 26 per cent each to maintain a certain control in the SPV.
However, BEML will be the main operator for MAMC as equipment manufacturing is not the core competence of CIL and DVC.
"We have started due-diligence process and we will submit the revival package to the court for approval to go ahead with the process," Burman said.
He said a consultant would be appointed to prepare the revival package and it would be submitted within the next 13 weeks.
ADVERTISEMENT
The Calcutta High Court had stayed the liquidation of MAMC on a petition by a consortium of three public sector companies stating that it wanted to revive the ailing PSU.
Staying the sale of assets of MAMC, the High Court had imposed a condition that the consortium must furnish a bank guarantee of Rs 75 crore before November 20.
Currently, MAMC is closed and all employees have been separated through a Voluntary Retirement Scheme. The company's liabilities are estimated at a whopping Rs 1,800 crore.
Once MAMC is operational, BEML is likely to restart manufacturing underground mining equipment and spare parts for power plants.
ADVERTISEMENT
Revival of MAMC will help backward integration of CIL and DVC, while for BEML, it will help in diversification into mining equipment.
Asked about investment needed for revival of the closed PSU, CIL chairman and managing director P S Bhattcharya said, "We have constituted a committee to look into details about investment after the revival package is ready".
ADVERTISEMENT
Burman said revival of MAMC will ensure import grade coal from CIL and supply of power plant spare parts from MAMC, which are two major bottlenecks for enhancing capacity.
DVC proposes to add 6,500 MW in the next three to four years.
Bhattacharya said CIL was unable to tap underground coal due to lack of machinery from domestic makers while imported underground mining machinery was not making mining viable for the coal producer
Start a SIP with as low as ₹500 with ET Money App!
Download
The Economic Times News App for Quarterly Results, Latest News in ITR, Business, Share Market, Live Sensex News & More.
The Economic Times News App for Quarterly Results, Latest News in ITR, Business, Share Market, Live Sensex News & More.
ADVERTISEMENT
