BEML, HEC sign pact for making mining equipment; to leverage each other's capabilities

BEML had not participated in tenders for the last 3-4 years in these two products, officials said.

Press Trust of India July 31, 2018 10:02:26 IST
BEML, HEC sign pact for making mining equipment; to leverage each other's capabilities

Kolkata: Two public sector units -- BEML and Heavy Engineering Corporation Ltd (HEC) -- signed a MoU to produce heavy mining equipment leveraging the capabilities of each other.

"The MoU will result into additional Rs 150-200 crore revenue for both PSUs. The collaboration will entail re-entering rope shovels and walking draglines manufacturing with higher indigenisation " BEML chairman and managing director D K Hota said after signing the pact.

BEML had not participated in tenders for the last 3-4 years in these two products, officials said.

BEML HEC sign pact for making mining equipment to leverage each others capabilities

Representational image. Reuters

HEC chairman and managing director Avijit Ghosh said the purpose is to leverage manufacturing capabilities of each other in order to bring down delivery time, reduce working capital and create the capability for high capacity equipment to meet the growing demand. He said the mining products could be co-branded.

At a time when around 78 percent of mining equipment is imported, such tie-up will push 'Make in India' initiative, officials said.

Coal India is a major client for this mining equipment and its chairman and managing director A K Jha was present on the occasion.

Ramping up coal production to 1 billion tonne in 3-4 years is not possible without indegenous equipment. In FY'18, coal production was 567 million tonne.

Updated Date:

Find latest and upcoming tech gadgets online on Tech2 Gadgets. Get technology news, gadgets reviews & ratings. Popular gadgets including laptop, tablet and mobile specifications, features, prices, comparison.