HEC CMD G.K. Pillai (left) and BHEL CMD K. Ravi Kumar exchange files after signing the MoU as chief minister Shibu Soren and other ministers look on. Picture by Manik Bose

Ranchi, Sept. 6: A new chapter has been added to public-public partnership ventures.

Public sector companies Heavy Engineering Corporation (HEC), Ranchi, and Bharat Heavy Electricals Limited (BHEL) today signed a memorandum of understanding (MoU) to form a joint venture company on a 50:50 equity participation basis, heralding an industrial revival of sorts in Jharkhand.

“So far, stress has been on public-private partnership. Now it’s time for experiments. The HEC-BHEL tie-up marks the third such venture in shaping public-public partnerships. Earlier, BHEL had partnered with National Thermal Power Corporation and Bharat Heavy Plates and Vessels, Visakhapatnam,” said Union heavy industries minister Santosh Mohan Dev.

The MoU was signed between HEC CMD G.K. Pillai and BHEL CMD K. Ravi Kumar in the presence of Dev, his deputy Raghunath Jha, Union ministers of state for food processing Subodh Kant Sahay and Jayram Ramesh (commerce and power) and chief minister Shibu Soren. The principal secretary to Prime Minister Manmohan Singh, T.K.A. Nair, and secretary of heavy industries S.N. Dash were also present. As part of the MoU, HEC would manufacture and supply castings and forgings required for building power plant equipment manufactured by BHEL. In return, BHEL would invest Rs 100 crore for the modernisation and upgrade of HEC’s plant and machinery at its foundry and forging plant. HEC would transfer its equipment to the new joint venture company while BHEL would transfer the same to HEC, in addition to the technical expertise.

The HEC-BHEL MoU gave way to a series of fresh announcements for the state. Dev announced the creation of five technical institutes in the state on a priority basis in association with the Damodar Valley Corporation at Koderma, Hazaribagh, Dumka, Bokaro and Chandrapura. Jayram Ramesh said BHEL would invest Rs 100cr in HEC for modernisation of old equipment.

Soren, said that the state government would release Rs 100 crore to HEC at the earliest as a part of its total commitment of Rs 250 crore under the HEC revival plan.