Move to help restrict entry of global firms, beat competition
BEML Ltd. and Heavy Engineering Corporation (HEC) Ltd. on Monday signed a memorandum of understanding (MoU) to manufacture and market heavy engineering and mining equipment.
The proposed collaboration would also extend to installation, commissioning and after-sales support for the mining products. The MoU was signed in the presence of Coal India Ltd. Chairman Anil Kumar Jha. Both CIL and BEML are listed entities.
The move is aimed at countering competition from MNCs and resisting the entry of other global players for supply of equipment like rope shovels and walking draglines.
BEML and HEC are also exploring the possibility of getting funding from the Department of Heavy Industry for projects like ‘development of 20 Cu M Rope Shovel’. BEML Chairman Deepak Hota said that the collaboration would help the existing MSME ecosystem, especially those around Tamil Nadu. BEML has three business verticals — mining and construction, defence and rail and metro — with nine manufacturing units in Karnataka.
Ranchi-based HEC is among the leading suppliers of capital equipment in India for a gamut of core sector industries, including steel, mining, railways, power, defence, and other sectors. It also executes turnkey projects
Avijit Ghosh, CMD, HEC, described the move as a landmark one.
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