Mining & Allied Machinery Corporation (MAMC) — a sick company which was jointly acquired by a consortium of BEML, Coal India (CIL) and Damodar Valley Corporation (DVC) — may finally get a fresh lease of life in November.
All the three shareholders are supposed to sign a final shareholder agreement by November. “A shareholder agreement giving order assurance from CIL will be ready with in two months. Only after that, we will go for a feasibility study on how much investment would be required for the project,” said Gautam Dhar, chief general manager (corporate planning), CIL.
A similar order assurance would be given by DVC too. As per the finalised shareholding pattern, BEML will own 48%, while other two players will own 26% each.
Mining and Allied Machinery Corporation, a major heavy industry in West Bengal, had suspended its operations in early 2000s, and the consortium had acquired it from the High Court appointed liquidator in 2009 for Rs 100 crore.
BEML got involved in the acquisition process because both the other two major players had no prior manufacturing experience. The consortium had acquired its facilities at Durgapur at 195 acres, an assembling facility at Nagpur, a service centre at Dhanbad and offices in Kolkata and Delhi.
It was BEML that wanted order assurances from CIL and DVC, but the agreement which was supposed to be signed by March got delayed due to the issues related to Tatra scandal. According to sources, CIL may give 50% order assurance to MAMC on first refusal basis at the lowest price quoted on the bidding process.