HEC, HMT Looking for technology from global giants

By agencies   |   Tuesday, 16 August 2005, 19:30 IST
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NEW DELHI: While the work on the revival of ailing Heavy Engineering Corporation (HEC) and HMT gathers pace, both the companies have decided to venture out of India in search of technology to improve their products. "Both HMT and HEC are talking to global giants for technology to improve their products," sources said. The agreements that both companies are looking for would start with technology transfer leading eventually to joint ventures. "What form the joint venture would take would be decided later," they said. HMT is talking to Japanese conglomerate Mitsubishi for the transfer of technology for tractors, machine tools and other rural vehicles. Besides, it is also talking to companies in Europe and Australia. A delegation of HEC was recently in Czech Republic for talks which the companies there. HEC makes capital equipment for steel, mining and coal sectors but its technology is decades old. Increasing competition among other factors has pushed the company towards closure. While the Board for Industrial and Financial Reconstruction has already ordered HEC's closure, the government has approached the India's Northeastern state, Jharkhand, High Court to stop the process. In the meantime, the government is formulating the scheme for revival of HEC and machine tool subsidiary of HMT and the holding company. The proposals will be brought before the Board for Reconstruction of Public Enterprises (BRPSE) soon. The board has already approved the revival schemes for two HMT subsidiaries - Praga Tools and HMT Bearings.