Power equipment supplier Bharat Heavy Electricals Limited (BHEL) has signed a memorandum of understanding (MoU) with Steel Authority of India (SAIL) for supply of steel materials like flats and long products.

According to an official release, BHEL is projected to buy steel flats like plates and sheets and structural like beams, channels and angles to the tune of around 6 lakh MT this financial year.

As per the agreement, BHEL and SAIL will negotiate and arrive at a price every quarter.

However, BHEL's Tiruchirappalli plant in Tamil Nadu, will source steel from SAIL for the entire BHEL facilities, spread over across the country.

The value of the contract is estimated to be around Rs 1,850 crore.