Saturday, September 17 2005 17:43 Hrs (IST) - World Time -

Bangalore: The defence public sector Bharat Earth Movers Limited has entered into a memorandum of understanding with HMT Limited to commence the process of drawing financial assistance provided by Planning Commission, for building Metro infrastructure in Bangalore.

The Planning Commission has agreed in principle to grant Rs 108 crores financial assistance for building metro infrastructure to attain global competition in India through transfer of technology from a global leader and to produce metro coaches with substantial indigenisation.

The financial assistance is routed through Ministry of Heavy Industry through one of their PSUs, HMT Limited, Bangalore in equity route, a BEML release said.

During 2005-06, Planning Commission has granted Rs 25 crores out of Rs 108 crore and the MOU has been signed accordingly to enable BEML to draw the money to commence the metro infrastructure building, it said.

The MoU, among others, contains giving work assistance to HMT from BEML for reconditioning of machines and machine tools and engaging HMT as one of the vendors for the supply of spares and components and also seek assistance for supply of machinery or procurement of machine tools from outside sources for metro infrastructure building, it said.

The Planning Commission has also agreed in principle to provide grant of Rs 125 crores for establishing world-class R and D Centre of Excellence for Metro dedicated to develop, update existing metro technology, testing components and spares and develop prototype metro coaches as may be specifically desired by prospective customers like state metro corporations such as Delhi Metro, Bangalore Metro and Mumbai Metro.

Of the total grant of Rs 125 crores, Rs 56 crores has been provided during the current year budget and will be made available to BEML for developing centre of excellence for Metro, the release said.

An independent society is being formed with BEML and HMT as founder members among others to establish world-class R and D facility for metro, it said.

The MoU to this effect was signed between BEML Chairman and Managing Director V RS Natarajan and HMT Chairman and Managing Director M S Zahed in Bangalore on Sept 16, 2005 in the presence of Alok Perti, Joint Secretary (Exports), Ministry of Defence and A Didar Singh, Joint Secretary, Dept of Heavy Industry, Government of India.