India's state-run Engineers India Ltd (EIL) and Tata Group have signed a memorandum of understanding (MOU) to float a 50:50 joint venture company to undertake engineering, procurement and construction contracts. The two partners plan to form a joint venture for executing engineering consultancy and construction projects in India and overseas, subject to approval of the MOU from the petroleum ministry. The joint venture will commence with an initial authorized capital of Rs. 15 crores, of which Rs. 10 crores will be paid up equity.
EIL is currently offering engineering consultancy for the HPCL-Mittal combine's Bhatinda refinery in Punjab as well as BPCL's Bina refinery in Madhya Pradesh. EIL also has a contract for Indian Oil Corporation's Panipat naphtha cracker project and an EPC contract for a bitumen plant in Oman. EIL already has around 14 strategic alliances on hand with equipment and materials manufacturers, besides technology developers. It also has two wholly owned subsidiaries, namely EIL Asia Pacific in Malaysia and Certification Engineers International for undertaking independent and third party inspection assignments. The Tata Group comprises 98 operating companies in seven business sectors and is one of India's business conglomerates.