Confirming the move, Bhel executive director, Bangalore, VK Bhatnagar told The Financial Express that a Memorandum of Understanding (MoU) to this effect is likely to be signed soon with GE Transportation Systems (GETS), a division of GE.

Bhatnagar said the two companies are currently engaged in the process of settling the terms and conditions for this joint arrangement. Unlike other alliances which involve a transfer of technological knowhow, this co-operation will involve joint development of a range of electronic products and control equipments from the transportation where the design will be by GE and Bhel will be a preferred supplier for these products in the Indian market.

However, Bhatnagar said that the ownership rights for these products arestill under discussion with GETS.

Whereas, for the Indian market, Bhel will be the sole supplier of these products, it will have to compete with other suppliers in the global market where GE has entered into similar arrangements with other companies.

Bhatnagar said that a joint design group comprising of a team of experts from GE and Bhel is in the process of being formed. A joint engineering centre is also being proposed at Bangalore unit of Bhel.

The aim for this co-operation with GE is to come out with new products at the shortest possible time. The new product range includes diesel electric locos where power electronic products like convertors, invertors are being used, valves dynamic breaking resistors, traction motors etc.

"This co-operation with GE is the extension of our existing relationship with them. We have earlier acquired the technical know-how from GE for making AC drive controls and gas turbine controls. However, the current alliance does not involve any technology transfer but is aneffort towards joint product development", Bhatnagar added.

In the transportation sector, Bhel has also entered into yet another collaboration with Aditeraz, Netherlands for manufacturing locomotives and EMUs for Railways. Giving details, Bhatnagar said that Aditeraz had actually given technology know how for manufacturing of locos and EMUs to Railways.

The Railways have in turn given the technology rights to Bhel for manufacturing five sub system of locos (for 6000 hp three phase AC locos). Out of this BHEL, Bangalore is doing 10 sets of power convertors and six sets of control equipments. The Bhopal unit of Bhel, is involved in motors, transformers for these AC locos and has gpt the order for doing 20 sets by the Railways.

Following orders from Railways, Bhel Bangalore anticipates a Rs 70 crore turnover every year to its current turnover of Rs 570 crore. Out of the total turnover, the maximum contribution is from the electronics division (EDN) at Rs 436 crore. The turnover projections worked out byBhel for its electronic division at Bangalore, which is the market leader in India with over 50 per cent market share in the areas of controls and instrumentation for power, are Rs 462 crore during 1999-2000 going up to Rs 585 crore by 2001-02 and Rs 823 crore by 2003-04.

The product profile of the EDN includes power electronics, automation and control systems, photovoltaics, simulators for defence, telecommunication products, energy meters and electrolytic capacitors.

The other divisions of BHEL at Bangalore includes a electronics system division, industrial systems division and an electro porcelains division.