November 12, 2008

CIL, DVC and BEML to invest INR 1000 crore for MAMC revival

Kolkata, 12 November, 2008: BS reported that CIL, DVC and BEML will be investing around INR 1000 crore in phases to revive the West Bengal based Mining and Allied Machineries Corporation, a BIFR company since 2003.While BEML will be the major share holder with 48%, CIL and DVC will be picking up by 26% stake each in the company.
A revived MAMC is expected to commence operation from the middle of 2010.Mr PS Bhattacharya chairman of CIL said that "I have approached the Mr HC Gupta coal secretary to take up the matter with the ministry for a cabinet clearance on the takeover. Prior to that the clearance for the joint take over will have to come from the Calcutta High Court as it is a BIFR company and the court is sole custodian to determine the company’s future."
Mr Bhattacharya said that MAMC has dues of INR 1200 crore with the Centre and about INR 100 crore with the West Bengal government. He said that “I approached the West Bengal government for a waiver and they have readily agreed. The green signal for the central waiver is still awaited and for this cabinet clearance is mandatory."He said that a silver lining recently emerged on the future revival of the company with the State Bank of India deciding to prune the debt component of the company from INR 430 crore to INR 120 crore.
He added that SBI ends have been tied up and things are moving in the right direction.Revival of MAMC is essential for CIL as it is moving ahead in augmenting underground mining production in the next couple of years. The coal giant is also seeking overseas tie ups in Australia, China, Indonesia and USA for developing UG mining in the country.

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