CIL to float a SPV for MAMC revival

Kolkata, Jun 5: Public sector major Coal India Limited (CIL) is planning to float a Special Purpose Vehicle, in consultation with the Ministry of Coal, for revival of Durgapur-based Mining and Allied Machineries Corporation (MAMC).

Speaking to sources, CIL Technical Director N C Jha today said,''The SPV will be floated once a consultant is appointed and it completes the due diligence.

''We are in the process of appointing a consultant to start due diligence soon and the process will take two to three months,'' Mr Jha said. The consultant would submit its report by October this year.

The consultant would study the feasibility of the closed unit and assess the values and status of the assets and equipment. MAMC was in BIFR for quite some years.

CIL and DVC had signed an MoU in the presence of Chief Minister Buddhadeb Bhattacharjee on June 1 to revive the closed unit.

Mr Jha said they were also trying to rope in Bharat Earth Movers Limited(BEML) in a three-way joint venture to revive MAMC.

CIL had been pursuing the revival of MAMC to get equipment required for underground mining, which was declared as a thrust area in the Eleventh Plan.

Equipment manufactured by MAMC earlier were still in use in some mines of CIL subsidiaries.

UNI