Electrical Monitor

Dodsal, AEM team up for mfg plant in India

EM NEWS BUREAUWednesday, May 04, 2011, 15:40 Hrs  [IST]

Untitled - 3.jpgDubai-based infrastructure development firm Dodsal and Russia's heavy equipment engineering company Atomenergomash (AEM) have agreed to set up a manufacturing unit in India with an initial investment of $150 million.

The two companies have agreed to pursue opportunities to jointly manufacture power equipment and components for power projects and to cooperate for the transfer of technology, according to a statement released by the companies.

After nearly one year of negotiations and a series of meetings in Mumbai and Moscow, top officials of the two companies signed a memorandum of understanding (MoU) for the project in Dubai Monday. The project is likely to start commercial operations from the first quarter of 2013.

Dodsal Group and AEM, the engineering division of one of Russia's largest power firm State Atomic Energy Corporation, agreed to cooperate in manufacturing and supply of power equipment for nuclear and thermal power projects, apart from the oil & gas industry.

The agreement follows the acquisition of Chennai-based AE&E IDEA (India) Pvt Ltd by Dodsal Group in March this year. AE&E IDEA will now be merged into the wider engineering, procurement and construction business of Dodsal Group.