CIL plans to float SPV with DVC

KOLKATA: Coal India Ltd is likely to join hands with Damodar Valley Corporation and a Chinese firm engaged in power and mining equipment to revive Durgapur-based Mining and Allied Machineries Corporation.

"Coal India Ltd, Damodar Valley Corporation and China Mining Equipment Engineering Company Ltd (MEECL) have expressed interest to revive MAMC. We will initally sign an MoU with DVC and the Chinese company might join later," CIL chairman Partha S Bhattacharyya told reporters here today.

"After signing the MoU we will get back to West Bengal government, which will take it up with the Centre," he said.

The state-run coal giant would form a Special Purpose Vehicle (SPV) for the purpose, he added.

CIL was also pursuing the revival of MAMC to get equipment required for underground mining, a thrust area for the company in the 11th Plan.

He said that equipment manufactured earlier by MAMC were still in use in some mines of CIL subsidiaries.

"We will visit shortly to evaluate. SPV is the most likely vehicle to revive the ailing MAMC," CIL technical director N C Jha said.

The Chinese company was also expected to visit MAMC for evaluation after CIL submits its evaluation report.