The Hindu Business Line : Kerala Govt in talks for BHEL-KEL joint venture

Thiruvananthapuram, Jan. 8 In a move that may end up in yet another partnership between a Kerala public sector undertaking and a central PSU, the State Government and Bharat Heavy Electricals Ltd (BHEL) are in talks for a joint venture between the latter and Kerala Electrical and Allied Engineering Company Ltd (KEL).

The proposal involves the Kasargod unit of KEL, which is into the manufacture of ‘brushless alternators’ used in the power cars of the Railways, and the Bhopal unit of BHEL.

The talks are in an advanced stage and an agreement is expected to be reached shortly, according to officials in the State Industries Department.

The Kasargod unit of KEL took up the manufacture of brushless alternators, a new technology, in technical collaboration with Leroysomer of France in 1990. Later, the engineers of KEL redesigned the product to suit the requirement of power cars of the Railways and it is now used in fully air-conditioned trains such as Rajdhani Express and Shatabdi Express.

The Kasargod unit of KEL has a spare capacity of 15,000 sq m, which is proposed to be utilised for the installation of additional machinery for the manufacture of alternators under the joint venture arrangement.

While KEL will provide technology and training, BHEL will provide the required capital for the new venture, which is roughly estimated around Rs. 50-60 crore.

The Kerala Government has proposed a joint venture modelled on the recently concluded tie-up between Transformers and Electricals Kerala Ltd (TELK) and the National Thermal Power Corporation (NTPC). The State Government has majority stake in the joint venture.

More Stories on : Outlook | Electrical Goods | Railways | Bharat Heavy Electricals Ltd | Kerala

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