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CIL, DVC, BEML renew bid to take over MAMC

KOLKATTA: Bharat Earth Movers Ltd. (BEML), Coal India Ltd. (CIL) and Damodar Valley Corporation (DVC) have made a fresh effort to takeover and revive the closed public sector Mining and Allied Machinery Corporation (MAMC).

The three companies have filed a joint application in the Calcutta High Court to takeover the management control of MAMC. The move gains significance in view of the assets of MAMC being put up for auction. The company has been closed for nearly a decade now.

BEML, CIL and DVC have already signed a joint agreement to revive MAMC and they are following up the matter with their respective parent ministries.

As per the auction plans, the bidder would be offered 1,500 acres of prime land in Durgapur (in West Bengal), besides the MAMC building and machinery. MAMC’s liability has been estimated at Rs. 1,800 crore.

The township alongwith its greenery, forming the larger tract of land and located in the heart of the industrial town, was handed over to the Asansol Durgapur Development Authority earlier.

The West Bengal Government too is keen on the revival which fits in with the current process of industrial rejuvenation.

The workers of MAMC have all been separated through a voluntary retirement scheme (VRS).

CIL is keen on the units revival (without going for a takeover right away) since it felt that the MAMC unit, located close to its headquarters and also to at least three of its coal companies, could be revived to become a manufacturing hub for equipment for underground mines.

Achieving a 75 per cent increase in its underground production is central to the PSU behemoth’s plans to hit the 520 million tonnes production target that it has been set for the current Plan period. The multi-utility DVC was interested in the revival since it also has plans to expand its presence in the coal mining sector beyond the single mine that it now runs at Bermo in Jharkhand. It has ambitious plans to increase its thermal power generation and plans to acquire coal blocks for which it felt enthusiastic about joint development of MAMC.

As a matter of fact, even a Chinese company — China Mining Equipment Company — had shown interest in becoming part of special purpose vehicle that was proposed to be formed for this purpose.

BEML too is keen and its involvement is central to the proposal since this PSU would actually revive the MAMC.

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