CIL to rope in Chinese Mining company to bail out MAMC

Kolkata, Apr 5(UNI) Coal India Ltd(CIL) is planning to enter into an alliance with China Mining Engineering Corporation(CMEC), a federation of Chinese public sector and private manufacturing equipment companies, to revive MAMC.

Speaking on the sidelines of a press conference, CIL chairman Partha Bhattacharya today said, ''A Chinese delegation will visit India soon.'' A feasibilty study would be undertaken by the CIL before the deal gets sealed with the Chinese Organisation. The CIL aims to tie up with the CMEC to get their technical assistance in equipment manufacturing.'' Damodar Valley Corporation(DVC), along with CIl, had worked out a financial package to take over the assets of ailing MAMC Durgapur and pay off debtors. MAMC is in the process of liquidation.

CIL and DVC had planned to float a joint venture company that will takeover MAMC's assets.

The DVC chairman and the CIL chairman had recently met West Bengal industry minister Nirupam Sen with the proposal of taking over MAMC's assets. ''The Chief bminister also knows about the proposal,'' Mr Bhattacharya added.

CIL and DVC have decided to sign an MoU for reviving and taking over MAMC's assets. Subsequently , it would submit a formal proposal to the state government. The state government would, in turn, forward the proposal to the Centre.

''CIL would take over the assets of MAMC as this ailing company manufactures coal and material handling equipment that can now be used in CIL's existing and new underground mines for coal handling and extraction. This may also bring down CIL's expenditure on equipment imports," Mr P Bhattacharyya said.

For DVC, it will serve twin purposes. The power utility intends to take up coal mining in a big way and equipment manufactured from the plant can be used at its mines.

Material and coal handling equipment manufactured at the MAMC facility would be used at DVC power plants.

UNI