Tata Power today said it has entered into a binding understanding with group firm Nelco's defence business of Unattended Ground Sensors (UGS) and completed the formalities for the purchase.
"With reference to the earlier letter dated January 28, 2015...company has entered into a binding understanding with NELCO Ltd to purchase its defence business of Unattended Ground Sensors (UGS)," Tata Power said in a statement.
According to it, the company has completed the formalities for the said purchase.
Earlier in January 2015, in a regulatory filing, the power utility had 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 had 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 had said.
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