KOLKATA, Nov 14: Revival of closed Mining and Allied Machinery Corporation Ltd (MAMC) by a consortium of three state-run companies seems to have run into trouble, officials indicated on Monday.
BEML, which is one of the consortium members along with Coal India and Damodar Valley Corporation, has now expressed its interest in withdrawing from the revival scheme, they said.
“BEML has expressed its desire to opt out of the consortium due to the strategic disinvestment proposal of the PSU by the government. However, no formal decision has been taken yet,” an official of a consortium partner told PTI on condition of anonymity.
The consortium had acquired the ailing company at a price of Rs 100 crore in a court-appointed auction in 2010.
BEML has a 48 per cent stake in the joint venture, while Coal India and DVC hold 26 per cent each.
“BEML has expressed its desire to CIL and DVC to take back the shares of it to settle the value,” another official aware of the matter said.
“Since, GoI (Government of India) has taken up strategic disinvestment of BEML and it is in advance stage, BEML has requested CIL and DVC to take back the shares of it and settle the value of properties purchased by BEML during court auction. Reply awaited,” the company said in a note to its investors.
An e-mail seeking comments from BEML on the issue was sent but no reply was received till the article is published.
The union government is expected to invite expressions of interest shortly for the sale of 26 per cent of its stake in BEML.
The Centre currently holds a 54 per cent stake in the company.
BEML had paid its proportionate share of Rs 48 crore towards the total bid consideration for the revival of the closed Mining and Allied Machinery Corporation.
It even created MAMC Industries Ltd in 2011 but there has not been much headway since then, the official said.
The government, then, directed BEML to submit a ‘business plan’ and ‘financial viability report’ of the proposed JV for MAMC, which never materialised, he said.
“Preparation of that report has not materialised due to exorbitant fee quoted by consultant firms,” the official said.
“BEML has decided to step back from the JV arrangements and has demanded its share of advance either by selling the assets available with MAMC or by foregoing its shares in favour of others,” Coal India has informed.
The company had reported a total sum of Rs 68.27 crore as an ‘advance to MAMC consortium’ as on March 2022.
“There is no formal outcome on the MAMC issue,” a DVC official said.
BEML was supposed to manage operations after the revival of MAMC and Coal India was expected to provide orders for mining equipment to the ailing company. (PTI)