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The joint venture between the Kasaragod unit of the state-owned Kerala Electrical and Allied Engineering Company Ltd. (KEL) and Bharat Heavy Electricals Ltd (BHEL) has formally taken off.
The documents relating to the transfer of the land, plant and machinery to BHEL were registered at the Kasaragod Sub-Registrar's office on Monday. The agreement for the joint venture was signed in September last year.
The new company, namely BHEL-Electrical Machine Ltd., will have 51 per cent equity participation by BHEL, while the State Government will hold the balance 49 per cent of the equity.
Following the formation of the joint venture, the Kasaragod unit has come out of the KEL fold.
Asset value
The asset value of unit has been assessed at Rs 10.5 crore and according to the agreement, it will form the State Government's equity in the joint venture.
BHEL is expected to infuse Rs 17 crore in the first phase for purchase of equipment and the company will also provide the technical back-up for the project.
The joint venture will initially manufacture traction alternators used in train engines and alternators for wind energy mills.
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