Ranchi, Jan. 30: As part of a complete turnaround strategy, Heavy Engineering Corporation Limited, Ranchi, today signed a memorandum of understanding (MoU) with Steel Authority of India Limited to partner its modernisation and future growth plans.

The MoU was signed at Ispat Bhavan, New Delhi, by HEC CMD G.K. Pillai and SAIL director (technical) V.K. Gulati.

According to the MoU, HEC would supply various equipment, including cranes, machine tools, torpedo ladle cars, transfer cars and other mechanical equipment required for modernisation and expansion of SAIL plants.

SAIL is already implementing a massive modernisation and expansion plan at various plants that is expected to enhance its hot metal and crude steel production by 2010.

HEC’s MoU with SAIL comes close on the heels of the interest expressed recently by steel major Posco and ArcelorMittal on possible joint collaborative efforts in the near future.

HEC has already bagged orders for 18 cranes from Neelachal Ispat Nigam Limited, Orissa, for a staggering Rs 185 crore — the single largest order in five decades of its existence.

Besides, HEC is also executing an order for a mobile launch pad for Isro at a cost of Rs 20 crore.

HEC, meanwhile, is all set to roll out a red carpet reception for Russian ambassador Vyacheslav I.Trubnikov who is arriving in Ranchi tomorrow to assess the steel production capacity of HEC and review possible areas of collaboration.

The Russian ambassador is also scheduled to meet chief minister Madhu Koda tomorrow.

Official sources told The Telegraph that with the inking of the pact with SAIL, HEC has added another feather to its cap.

It would see a complete turnaround for the PSU which till two years ago, was battling a closure threat by the Board for Industrial and Financial Reconstruction.

They pointed out that in the last fiscal, HEC had recorded a net profit of Rs 2.86 crore — its fourth such performance in five decades. The current fiscal is likely to see an improved performance.