Date:19/09/2005 URL: http://www.thehindubusinessline.com/2005/09/19/stories/2005091900780500.htm

Back BEML ropes in HMT for metro rail coaches project

Our Bureau

Bangalore , Sept. 18

BHARAT Earth Movers Ltd said it has signed an MoU with HMT Ltd to build metro rail coaches.

The Planning Commission has approved a total grant of Rs 108 crore for this plan. BEML will source Rs 25 crore of the grant for the current fiscal through the machine tools major. The Ministry of Heavy Industry will route the amount in equity mode, BEML said in a release on Saturday.

HMT will also be involved in reconditioning machines, machine tools, as a vendor for spares and components and support procurement of machine tools from third sources. The work assistance may be seen as a prop for the loss-making HMT, an official said.

BEML, which is also setting up a Rs 125-crore metro R&D centre in Bangalore, will form a society and rope in HMT as a founder member in the initiative.

BEML has supplied coaches for the Delhi metro rail project and is also eyeing metro proposals for Bangalore, Mumbai and other cities.

The MoU was signed by the BEML Chairman, Mr V.R.S.Natarajan, and the HMT CMD, Mr M.S. Zahed, in Bangalore on Friday.

The Department of Industrial Policy & Promotion has cleared BEML's proposal to pay licence fee to metro technology provider Rotem of South Korea. Rotem has been paid Rs 10 crore so far.