Shares of state-owned BEML Ltd gained by two per cent on Monday after the company announced the signing of a memorandum of understanding with IRCON International Ltd to explore opportunities in the overseas market.
The pact is aimed at promoting the supply of BEML manufactured rolling stock as well as construction equipment for railway projects outside India.
IRCON will carry out civil and construction work as well as facilitate design validation and provenness for rolling stock of BEML to address export opportunities together.
"Both the companies can attain new heights in the international market by synergising their strengths," said BEML's Chairman and Managing Director D K Hota.
IRCON's Chairman and Managing Director S K Chaudhary said the company has a strong international presence and proven capabilities in the field of track laying, construction, electrification of railway and infrastructure construction projects.
It is presently operating in Algeria, Myanmar, Bangladesh, Nepal and Sri Lanka. "This is a step towards further thrust on globalisation by joining the complementary strengths of two large central public sector enterprises," he said in a statement.
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At 11 am, BEML's share was trading on BSE Ltd at Rs 993 apiece, up 2.06 pc. BEML is a leading multi-technology schedule A company under the Ministry of Defence and plays a pivotal role in serving India's core sectors like defence, rail, power, mining and construction.
IRCON, earlier known as Indian Railway Construction Company Ltd, is an engineering and construction major specialising in transport infrastructure and is wholly owned by the Ministry of Railways. It has completed over 1,250 major infrastructure projects in India and over 200 major projects in more than 31 countries.