MMTC's assets pegged at Rs 800 cr

MMTC's assets pegged at Rs 800 cr
Nandita Roy

New Delhi, Nov 20: Disinvestment plans of the government in India’s major trading corporation, Minerals and Metals Trading Corporation (MMTC) has finally been kicked off. In an internal assessment of its assets, both movable and immovable, MMTC has pegged its total assets at Rs 800 crore. This includes its Singapore subsidiary, MMTC Transnational Pte Ltd.

While the internal evaluation has been done to help government fetch a realistic price, it will now be vetted by a consultant, who sources say, will be appointed on a tender basis. The company’s assets range from fixed assets both movable and immovable, real estate, colonies etc. Fixing a final price for MMTC’s total assets is expected to take another three months.

However, the evaluation of its two plants 55 MW captive power plant in Konark Met Coke Ltd (KMCL) and steel plant Neelachal Ispat Nigam Ltd (NINL) will be assessed separately. Officials say the process is still underway and will take time.

According to the disinvestment plans for MMTC, the government will sell 74 per cent of its stake, while the remaining 26 per cent will remain with the government. Of this the government is contemplating offloading at least 10-15 per cent to the employees.

The $ 1.2 billion trading corporation has also finalised a fresh VRS for its employees to shed excess workers. According to the new scheme, employees will be given 3 months pay for each completed year of service or for the remaining period of service left, whichever is lower. However, the proposal is yet to get a final seal of approval from the Cabinet. The present VRS scheme allows only two months pay for each completed year of service. MMTC’s total employee strength is around 2880 people.

During the current fiscal, the company also hopes to make a net profit of Rs 20 crore. MMTC’s paid-up share capital is Rs 50 crore with reserves to the tune of Rs 620 crore. Of this, its cash reserves are approximately Rs 100 crore.

However, till the entire process of disinvestment in MMTC is completed, officials say the company will continue to be the sole canalising agency for iron ore exports to Japan and South Korea. Its contracts with the two countries will expire in March next year. However, MMTC hopes to renew it for another five years. Once disinvestment takes place, the government may pass on the contract to another agency like NMDC, sources say.

The company covers a wide portfolio of bulk products like minerals and ores, non-ferrous metals, fertiliser and fertiliser raw materials, precious metals, gems and jewellery, agro products coal and hydrocarbons etc.