The two engineering majors, under the agreement, will combine their expertise in the field of manufacture and marketing of heavy engineering and mining machinery.
"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 Deepak Kumar Hota said after signing the pact.
With the growing mining industry, the demand for equipment has been on the rise and currently a majority of the demand for such mining equipments is met through imports, said HEC Chairman and Managing Director Avijit Ghosh.
"There is a demand-supply gap and the dependence on imports is huge. The joint effort will not only help the country attain self reliance but will also help bring down the costs," he said.
However, Coal India Ltd Chairman and Managing Director Anil Kumar Jha said "indigenously manufactured good quality machines" were the need of the hour to enable the company ramp up coal production.
The miner, which expects its coal production to increase to one billion tonne, up from 567 million tonne in FY'18, in the next few years, is likely to procure Rs 12,000-13,000 crore of equipment in the next two to three years.
(This story has not been edited by Social News XYZ staff and is auto-generated from a syndicated feed.)
