Karnataka - Bangalore   

BEML, HMT sign pact for metro infrastructure

Special Correspondent

Planning Commission promises assistance for development works

BANGALORE: Bharat Earth Movers Limited (BEML) has signed a memorandum of understanding with Hindustan Machine Tools Limited to commence the process of drawing financial assistance provided by the Planning Commission for building metro infrastructure in Bangalore.

The Planning Commission has agreed in principle to grant a financial assistance of Rs. 108 crores for building metro infrastructure to achieve and attain global competition in the country through transfer of technology from a global leader and to manufacture metro coaches with substantial indigenisation.

The financial assistance is routed through the Ministry of Heavy Industries through HMT Limited in equity mode.

For the current fiscal, the Planning Commission has sanctioned Rs. 25 crores out of the Rs. 108 crores and the MoU will enable BEML to draw down the money for metro infrastructure building, a company statement said here.

As per the MoU, BEML will give work assistance to HMT for reconditioning of machines and machine tools, engaging HMT as one of the vendors for the supply of spares and components and also seek assistance for supply of machinery or procurement of machine tools from outside sources for metro infrastructure building.

The Planning Commission has also agreed in principle to provide a grant of Rs. 125 crores for setting up a world class R&D centre of excellence for metro to develop and update existing metro technology, testing components and spares and develop prototype metro coaches for metro customers.

Of the total grant, Rs. 56 crores has been provided in the current fiscal which would be made available to BEML for developing a centre of excellence for metro.

BEML and HMT will shortly form an independent society to establish the R&D facility for metro.

The Union Department of Industrial Policy and Promotion has already cleared the proposal of BEML for payment of licence fee to Rotem of South Korea towards transfer of technology to BEML, the press statement added.

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