Banks waive Rs 310 cr for MAMC revival

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Kolkata, Nov 6 : The consortiums of banks and public sector enterprises reviving the Durgapur-based Mining & Allied Machinery Corporation (MAMC) have settled for a repayment of Rs 120 crore on account of principal and interest against the Rs 430-core bank debt of the closed public sector unit.

While Coal India Ltd (CIL), Damodar Valley Corp (DVC) and Bharat Earth Movers Ltd (BEML) have taken up the task of reviving MAMC, the sick unit’s Rs 430 crore debt lies with the State Bank of India (SBI) and United Bank of India (UBI).

MAMC, orginally a part of Ranchi-based sick PSU Heavy Engineering Corp (HEC), was set up three decades ago to produce machinery and equipment for underground coal mining. Since 2003, it has been under liquidation by an order of the Calcutta High Court.

VRS Natarajan, BEML chairman & managing director, said the banks have decided on an interest repayment of Rs 20 crore and Rs 100 crore would be paid towards the principal amount.

According to him, with the banks ready to write off a major part of the debt, revival of MAMC would be viable.

MAMC is expected to start operations within the next half of 2009-10 fiscal but before that the settlement of debt and the revival package has to be cleared by the high court, and to be followed by cabinet clearance, Natarajan said. “The revival package is at the last stage of preparation,” he added.