GSL, Chairman and Managing Director, Shekhar Mital NM, MTU Friedrichshafen India, Director and CEO, Praveen Mohan formally exchanged documents at the ongoing 'DefExpo' formally inaugurated by Prime Minister Narendra Modi at Thiruvidanthai about 40kms from here.
As per the agreement, the companies will produce 16 cylinder and 20-cylinder MTU Series marine engines at the GSL's upcoming facility in Goa.
"We will be setting up a manufacturing facility at Goa. Investments will be around Rs 100 crore. It is for the first time in India we are going to make marine engines under MTU brand," Mital told PTI in an interaction.
"The agreement with MTU includes transfer of technology related to local manufacture of engine components, assembly, testing and major overhauls," he said, adding life time support for the engines will be provided by GSL as per the agreement.
To a query, Mital said, the local content of the marine engines that will be produced at the facility would be 20 per cent initially and the company would increase it to 45 per cent over the next five years.
MTU Series 8000 engines are the largest and most powerful diesel engines with output of upto 10MW, Mohan said.
According to him, the agreement with GSL is a significant milestone and reinforces the company's commitment towards the Centre's 'Make in India' campaign.
The MTU Series 8000 engines come with low overall operating costs, high power density and environmental compatibility, he said.
(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)