New Delhi: State-owned Bharat Heavy Electricals Limited (BHEL) on Wednesday said it has signed an agreement with Italy-based Nuovo Pignone International s.r.l, to bid for compressors train revamp business opportunities in the fertiliser sector in India.
Nuovo Pignone International will be the nominated vendor to BHEL through the subject Memorandum of Understanding (MoU) with a definite scope of work, according to a regulatory filing.
According to the filing, the agreement will continue for a period of 10 years from the effective date, i.e. April 9 or until such time both the parties consent to continue, whichever is earlier.
BHEL explained that the strategic tie-up for business sharing with Nuovo Pignone International is for addressing compressor revamp opportunities in fertilizer sectors in India, the filing added.
On the rationale behind the move, the partnership is expected to improve BHEL's market share in the fertilizer sector R&M (Renovation and Modernisation) business.
"BHEL will be able to address compressor revamp opportunities in fertilizer sector in India...with approx. business share of 50 per cent in financial terms," the company said.
(PSU Watch– India's Business News centre that places the spotlight on PSUs, Bureaucracy, Defence and Public Policy is now on Google News. Click here to follow. Also, join PSU Watch Channel in your Telegram. You may also follow us on Twitter here and stay updated.)