Hyderabad: Telangana bagged a major investment in the manufacturing sector on Monday.
Italian oil and gas rigs manufacturer Drillmec SpA, a subsidiary of Megha Engineering and Infrastructure Ltd (MEIL), signed a memorandum of understanding (MoU) with the state government, in the presence of industries minister K.T.Rama Rao, to invest USD 200 million (approximately Rs 1,500 crore) for setting up its global rig manufacturing hub at Shabad on city outskirts.
The project is estimated to create direct employment to 2,500 people and indirect employment to several thousand within a year.
Speaking on this occasion, K.T. Rama Rao said, “We feel proud to welcome Drillmec as it establishes its manufacturing unit in Hyderabad. Our government is committed to making Telangana the most industrially progressive states in India. We will hand over land and fiscal incentives to Drillmec as soon as possible. We are happy to generate employment opportunities for the youth in the state. We request Drillmec to bring entire drilling rig ecosystems to Telangana.”
Drillmec, along with the department of industries and commerce, government of Telangana, will float a Special Purpose Vehicle (SPV) for setting up the manufacturing unit.
Drilling rig is a large structure with facilities for drilling a well to explore, extract, store, and process petroleum and natural gas that lies in rock formations beneath the seabed. Drillmec SpA is a global leader in the area.
Drillec, a subsidiary of MEIL, has proposed to set up a manufacturing, research and development facility, and a Centre of Excellence (CoE) to impart cutting-edge training to people to operate, manage and maintain advanced rigs.
As part of MoU, the company will set up Drillmec International Hub for manufacturing oil rigs and ancillary equipment in Telangana.
Simone Trevisani, CEO Drillmec SpA, said, “The Hyderabad manufacturing hub will focus on rig manufacturing and ancillaries. We have three manufacturing facilities in Italy, the USA (at Houston), and Belarus. After evaluating offers, we choose Telangana, as it has a progressive industrial policy and is investor-friendly.”
The company, incorporated in Italy, was acquired by MEIL group in 2020.
Uma Maheshwar Reddy, CEO, Drillmec International, said, "This MoU is the first step towards creating a global manufacturing hub in Hyderabad. It will definitely meet the demands of the market worldwide."
Simone Trevisani, CEO, Drillmec SpA and Jayesh Ranjan, principal secretary, industries, signed the MoU.
