Cummins Inc and Tata Motors has signed an agreement that will allow their joint venture Tata Cummins (TCL) to begin manufacturing the ISB engine in the near future.The expansion, estimated at around $ 60 million, will significantly increase the number of engines produced by the joint venture and strengthen Cummins position as a producer for the growing medium and heavy-duty commercial vehicle market in India, as per a release issued by Cummins.Under the agreement, TCL would increase its total engine production to one lakh units within two years and 1.20 lakh units thereafter, it said, adding the engines produced by TCL would meet Euro II, Euro III and Euro IV Indian and European standards for diesel emissions.TCL currently produces approximately 69,000 Cummins B Series engines a year, it said. The expansion would be funded by TCL's ongoing cash flow and joint venture debt, the release added.
