Bharat Heavy Electricals announced that it has signed a strategic Memorandum of Understanding (MoU) with Italy-based Nuovo Pignone International to jointly address compressor revamp opportunities in the Indian fertiliser sector.

The agreement shall remain in force for a period of 10 years unless extended by mutual consent. Under the agreement, BHEL shall be the lead bidder for targeted compressor train revamp projects in India. On the other hand, Nuovo Pignone will serve as the nominated vendor with a defined scope of work.

The agreement does not include any transfer of equity of setting up a new venture, and no upfront consideration is involved. With this collaboration, BHEL may benefit from compressor revamp projects with an estimated ~50% business share in financial terms. This shall improve its presence in the fertilizers sector’s repair and maintenance segment.