Dubai: Dodsal, a Dubai based multinational group of companies and Atomenergomash (AEM), a Russian heavy equipment engineering company that specialises in nuclear and conventional energy, signed a Memorandum of Understanding (MoU) in Dubai, to establish a business relationship and pursue joint commercial activities in India.
Dodsal Group and AEM have agreed to co-operate in the fields of manufacture and supply of power equipment for nuclear and thermal power projects and the oil and gas industry.
The joint activities take into account the bilateral agreements and international obligations of Russia and India.
The Memorandum of Understanding follows extensive high level meetings between Dodsal and AEM senior management at conclaves held in Mumbai and Moscow since May 2010, followed by the final conclusive meetings in Dubai yesterday.
Over the course of the two-day meetings, Dodsal and AEM adopted a plan to set up a manufacturing unit in India with an initial investment of about $150 million (Dh551.7 million).
The two companies have agreed to pursue opportunities for the joint manufacture of power equipment and components for power projects, and to co-operate for the transfer of technology and rendering of consultancy services to pursue their common objectives.
Rajen A. Kilachand, Chairman and President of Dodsal Group, thanked Vladimir Kashchenko, Chief Executive Officer of AEM, for the speedy finalisation of the MoU.
The two sides have agreed to follow a strict time line for the implementation of the contents of the MoU and have targeted start-up of commercial production by the first quarter of 2013.
Over 47 countries have adopted nuclear power as a viable clean energy alternative.
With India's ambitious plans for higher nuclear power generation, Dodsal and AEM are perfectly poised to be the catalysts that will bring the country's plans to fruition.
The MoU follows the acquisition by Dodsal Group of the former Austrian engineering company AE&E IDEA based in Chennai, which will be merged into the wider EPC business of the Dodsal Group.