Dubai-based Dodsal and Russia’s Atomenergomash (AEM) have signed a memorandum of understanding to construct a nuclear power equipment manufacturing plant in India.

Both companies will invest $150m in the project and have agreed to co-operate in manufacturing and supplying power equipment for nuclear power projects.

Commercial production is expected to begin in the first quarter of 2013.

Dodsal and AEM will tranfer technology and render consultancy services to pursue their common objectives.

Both the companies have agreed to abide by the bilateral agreements and international obligations of Russia and India.