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APMDC jt venture with 5 pvt cos

Ch. Prashanth Reddy

HYDERABAD, Aug. 15

THE Andhra Pradesh Mineral Development Corporation (APMDC) has entered into a joint venture with five private companies separately for mining and sale of galaxy granite at Cheemakurthi Mandal of Prakasam district in the State.

The AMPDC has divided 260 acres of granite-bearing land in the area into 10 blocks and invited tenders from private parties for setting up joint ventures for each block.

Following this, Srap Minerals Pvt Ltd, Aswani Mineral Development Pvt Ltd, Arham Mineral Exports Pvt Ltd, Isra Mineral Exports Pvt Ltd and Margasri Granites Pvt Ltd have emerged as highest bidders and were selected for establishing joint venture companie s. One block of around 26 acres of land having granite deposits has been allotted to each of these companies.

The corporation would be finalising joint venture partners even for the remaining 5 blocks shortly. The total deposits of galaxy granite in the area earmarked was estimated to be 25 lakh cubic metres, The APMDC Vice-Chairman and Managing Director, Ms Min nie Mathew, told Business Line.

As per the agreements entered into, each company would invest Rs 1.65 crore as equity out of which the APMDC would have a 26-per-cent stake as free-ride equity. Besides, the private companies have to pay a franchisee fee to the corporation ranging from R s 10,000 to Rs 32,000 per cubic metre of black galaxy granite sold. One year mining franchisee fee should be deposited by the companies in advance.

The agreement stipulates that each company should produce at least 100 cu mts of granite during the first year of its operation and a minimum of 300 cu mts per year from second year onwards. The market value of each cu mt of black galaxy granite, conside red to be one of the most expensive granite variety, ranges from $800 to $1,600 in the international market.

So as to cater to the needs of the domestic granite processing units, the APMDC has imposed a condition that 25 per cent of the granite blocks excavated should be either processed by them within the State or should be sold to granite processing units in Andhra Pradesh.

Out of the blocks left out at the place, there were some legal disputes pending in the court in respect of two blocks while offers have been received by the APMDC for two other blocks.