German defence contractor Rheinmetall may set shop in Uttar Pradesh and partner with state-run Bharat Heavy Electricals (BHEL) to enter the Indian market.
The Dusseldorf-headquartered company may invest over $1 billion in the Uttar Pradesh Defence Corridor, according to a Financial Express report.
The company has already submitted an expression of interest to BHEL, a Rheinmetall official told the newspaper.
Moneycontrol could not independently verify the story.
A Rheinmetall official told Financial Express that it was too early to provide details of the collaboration.
"We have not reached the level yet. BHEL, being a government of India Navratna PSU, will have to examine the proposal in consultation with the ministry of heavy industries and commerce ministry and get back to us," the official said.
"Since UP is aggressively wooing investments in the defence corridor, top officials of Rheinmetall requested an interaction with GoUP (government of UP) to understand the various policies in UP, including Invest UP and the Defence Policy and the incentives and other assistance that the government can provide," the official added.
The report said the Rheinmetall Electronics Division CEO Susanne Wiegand and Rheinmetall Air Defense CEO Fabian Ochsner have had a discussion with UP's investment and promotion of MSME minister Siddharth Nath Singh.
BHEL's facilities in Kanpur and Jhansi are among the units that are a part of the state's defence corridor, the report added.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
