Ranchi, Sep 6 (UNI) Aimed at synergising the strength of two public sector engineering giants in the core sector, BHEL and HEC, today signed an MoU to form a joint venture company (JVC) to cater to the requirements of castings and forgings of each other on mutually beneficial terms.
The move to set the JVC on 50:50 equity participation basis came at a crucial juncture when the nation was looking at adding huge power generation capacities of 78,000 MW and 85,000 MW in the 11th and 12th plans respectively.
Besides, with the steel and mining sectors also poised for major expansion, the joint veture was expected to herald a new chapter in the history of the Heavy Engineering Corporation Ltd, once declared a sick unit in the country.
Addressing the gathering on the occasion as chief guest, Union Minister for Heavy Industries and Public enterprise Santosh Mohan Dev said the Centre would leave no stone unturned to revive the HEC, whose foundation stone was laid by former Prime Minister Jawaharlal Nehru.
Mr Dev hoped the Centre's decision to raise the retirement age of the HEC employees to 60 from 58 should now enthuse the workers to dedicate more to the cause so that the company could take a position of pride.
He promised to announce more sops for the HEC during its 50 years of celebration.
Regarding BHEL, Mr Dev said the company augmented its power equipment manufacturing capacity to 10,000 MW per annum in December 2007 and was on its way to enhancing it further to 15,000 MW per annum in December, 2009.
He said the Foundry Forge Plant (FFP) of HEC got the basic required infrastructure, facilities and capacities which after some renovation and modernisation will be able to meet the huge demands of castings and forgings arising out of power generation capacity augmentation programme in the country.
Jharkhand Chief Minister Shibu Soren announced to release Rs 100 crore soon out of Rs 250 crore, which the state government owed long to the HEC.
Mr Soren assured to provide all possible help to the company as and when required.
The MoU was signed by chairman and managing director of HEC G K Pillai and CMD of BHEL Ravi Kumar in presnence of Union Minister of State (independent charge) or Food Processing, Union Minister of State for Heavy Industires and Public Enterprise Raghunath Jha, Union Minister of state for Commerce and Power Shri Jairam Ramesh, Principal Secretary to Prime Minister T K A Nair and other host dignitaries.
HEC's copntribution to the equity/investmnet of the venture would be by way of transfer of the plant and equipment whereas BHEL would infuse a matching amount towards the equity capital of the joint venture, UNI PRS KK KLC1649