BHEL to invest Rs 1,400 cr in castings & forgings facility
State-run Bharat Heavy Electricals today said it will invest Rs 1,400 crore to build a manufacturing facility for castings and forgings, key components for power equipment.
By PTI |
NEW DELHI: State-run Bharat Heavy Electricals today said it will invest Rs 1,400 crore to build a manufacturing facility for castings and forgings, key components for power equipment.
"We are planning to invest Rs 1,400 crore to build a castings and forgings factory," BHEL CMD K Ravi Kumar told said. BHEL has also formed a 50:50 joint venture company with Heavy Engineering Corporation (HEC) to cater to the needs of castings and forgings.
The new JV company would manufacture some of the castings and forgings required by the two units of HEC, Heavy Machine Building Plant (HMBP) and Heavy Machine Tools Plant (HMTP).
HEC's contribution to the investment of the JV will be in the form of transfer of the plant and equipment and BHEL will invest same amount towards the equity capital of the company. However, the amount has not been disclosed yet. BHEL will also provide the necessary technological support and guidance required by the JV, a company statement said on Saturday.
Business will be given on a preferential basis on a benchmark price to the JV both by BHEL and HEC, it added.
BHEL is already investing a significant amount in manufacturing stainless steel tube plant, as a part of its casting and forging business.
"We are planning to invest Rs 1,400 crore to build a castings and forgings factory," BHEL CMD K Ravi Kumar told said. BHEL has also formed a 50:50 joint venture company with Heavy Engineering Corporation (HEC) to cater to the needs of castings and forgings.
The new JV company would manufacture some of the castings and forgings required by the two units of HEC, Heavy Machine Building Plant (HMBP) and Heavy Machine Tools Plant (HMTP).
HEC's contribution to the investment of the JV will be in the form of transfer of the plant and equipment and BHEL will invest same amount towards the equity capital of the company. However, the amount has not been disclosed yet. BHEL will also provide the necessary technological support and guidance required by the JV, a company statement said on Saturday.
Business will be given on a preferential basis on a benchmark price to the JV both by BHEL and HEC, it added.
BHEL is already investing a significant amount in manufacturing stainless steel tube plant, as a part of its casting and forging business.
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