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The country's planners recognized that an adequate supply of electric power was a precondition for long-term industrial growth. This could be sustained only with a strong domestic power equipment industry. Accordingly, the Planning Commission recommended initiating steps to set up a factory for the manufacture of all types of heavy electrical equipment required for various projects. As a result, the Government of India signed an agreement on 17th November 1955, with Associated Electrical Industries (AEI), UK, for the establishment of a factory at Bhopal complete in all respects for the manufacture of heavy electrical equipment in India. The company was registered as Heavy Electricals (India) Limited (HE(I)L) in the Public Sector under the Ministry of Industry and Commerce on 29th August
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