By IANS,
Ranchi : The city-based Heavy Engineering Corp (HEC) and Bharat Heavy Electricals Ltd (Bhel) will set up a joint venture foundry forge company, an HEC official has said.
“HEC has a foundry and forge unit and is capable of meeting Bhel’s requirements. The new company will utilise this unit, which Bhel will help modernise,” HEC company secretary Abhay Kanth told IANS.
According to him, Bhel has a work order of over Rs.100,000 crore (Rs.1,000 billion or $25 billion) in forging and casting, but its existing unit at Haridwar is unable to meet this demand.
On its part, HEC has work orders worth more than Rs.2,000 crore (Rs.20 billion or $500 million), but lacked the capital to meet the demand. The joint venture will help it generating the much-needed resources.
Kanth, however, said the profit-sharing formula has not yet been worked out.
The agreement will be signed Saturday in the presence of heavy industries minister Santosh Mohan Dev, minister of state for commerce and power Jairam Ramesh, minister of state of heavy industries Raghunath Jha, food processing minister Subodh Kant Sahay, and the prime minister’s principal secretary T.K. Nair.