BANGALORE: Public sector giants Bharat Earth Movers Ltd. (BEML) and National Thermal Power Corporation (NTPC) have entered into a memorandum of understanding for a long-term strategic and business partnership.

Under the MoU, which was signed on February 14 in Delhi, BEML will provide its range of equipment, spares and services for the NTPC's coal mining operations, states a BEML press release.

The MoU will help ensure planned and uninterrupted production as well as supply of coal to power plants operated by the NTPC instead of depending on supply from other sources. This will go a long way in meeting power generation targets in line with the commitment to provide power to all by 2012, says the release.

BEML, which has four decades of experience in manufacturing mining machinery, has made a foray into contract mining to take advantage of the huge growth potential in the mining and construction business. A joint venture has been formed with two other companies for contract mining, including mine development.

BEML has declared a 40 per cent interim dividend for the financial year 2006-07, for the third consecutive year.

BEML chairman and managing director V.R.S. Natarajan presented a cheque for Rs. 9 crore to Defence Minister A.K. Antony on February 14 as interim dividend towards 61.20 per cent of the company's shares held by the Union Government.

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