Bharat Heavy Electricals (BHEL) has signed a strategic memorandum of understanding (MoU) with Italy-based Nuovo Pignone International to jointly pursue compressor revamp opportunities within fertiliser sector. The MoU, signed on 09 April, 2025, is set to remain in effect for ten years, with the possibility of extension by mutual agreement.

Under this arrangement, BHEL will take the lead role in bidding for identified compressor train revamp projects across India. Nuovo Pignone, a globally recognised name in rotating equipment technologies, will serve as the nominated vendor, executing a clearly defined scope of work. The collaboration is designed to leverage the strengths of both entities, BHEL’s deep domestic presence and project execution capabilities, and Nuovo Pignone’s technological expertise in compressor systems.

Importantly, the agreement does not entail any equity transfer, formation of a joint venture, or upfront monetary exchange. This sector is a key part of India’s industrial infrastructure, where ageing compressor systems require modernisation to improve operational efficiency and reduce downtime.

The collaboration positions BHEL to capture approx. 50 percent business share in financial terms from these revamp projects. This not only diversifies its service portfolio but also strengthens its footprint in the high-potential repair and maintenance market for fertiliser plants.