The MoU between BEML Ltd. and Heavy Engineering Corporation on the manufacture of mining equipment has the potential to add at least Rs. 150 crore to each company’s revenue, through supply of equipment and spare parts.

‘Demand rising’

“Incremental turnover of Rs. 200 crore can be generated through this tie-up for BEML,” Deepak Kumar Hota, CMD, BEML said at the signing of a memorandum of understanding between the two PSUs for manufacture and supply of ‘rope shovels and walking draglines’ for the mining industry.

HEC CMD Avijit Ghosh told
The Hindu
, “In terms of spares, the increase will be Rs. 50 crore per annum while [for] equipment, it would be another Rs. 100 crore,” adding that requirements in mining were rising, given the growth in the segment.

The cost of a dragline, used in opencast mining, averages at about Rs. 170 crore. Enquiries revealed that Coal India Ltd., India’s largest miner, is scheduled to float tenders for six draglines, while the private sector is set to generate orders for two more.

CIL chairman A.K. Jha said the deal marked a milestone in the country’s path to self-sufficiency, as CIL was now importing machines and spares.

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