Tata Power to buy Nelco's biz vertical for over Rs 8 crore

Tata Power will acquire group firm Nelco's defence business of Unattended Ground Sensors (UGS) for about Rs 8.3 crore.
For the "slump sale basis" deal, Tata Power has entered into a "binding understanding" with Nelco.
In a regulatory filing, the power utility said the consideration would be around Rs 8.3 crore.
"The UGS business involves supply, installation and servicing of sensors for the Ministry of Defence.
After purchase, the UGS business would be housed in Tata Power's strategic engineering division, which is also a supplier of defence equipment and solutions.
Acquisition of the UGS business will provide synergies to the existing business of Tata Power SED and has scope for growth and expansion, the filing said.

"The takeover of Nelco's UGS business segment further enhances our presence in the defence segment and provides synergy and alignment in servicing the customers," it noted.
The transfer of the business is subject to approvals and consent of Defence authorities.