Leading steel wire rope manufacturer, Usha Martin Ltd (UML), is planning to start coal mining activities as a means to backward integration.

UML will collaborate with Jharkhand State Mineral Development Corporation Ltd (JSMDC) to start mining through a joint venture company.  JSMDC has identified mining blocks for coal in Ramgarh and obtained mining licences.

The joint venture company will have an initial paid up capital of Rs.3 crore, to be held in the ratio of 51 per cent and 49 per cent by UML and JSMDC respectively. Against identification of coal blocks and other activities already carried out by JSMDC valued at Rs 52 lakh, it will be allotted proportionate equity in the JVC without any cash payment.

The joint venture company will have nine directors out of which four will be nominated by JSMDC including the chairman and the rest by Usha Martin including the managing director. Management of the JVC shall vest with the managing director.

Usha Martin will also work towards having independent mining blocks and licences, in due course.